Lake Shore Gold Reports Strong Cost Performance in Q1/15

TORONTO, ONTARIO--(Marketwired - April 13, 2015) -

• Preliminary cash operating cost per ounce sold of US$509 in Q1/15 (based on total production costs of $33.0 million) compared to full-year target range of US$650 - US$700
  
  
• Preliminary all-in sustaining cost per ounce sold of US$748 in Q1/15 compared to full-year target range of US$950 - US$1,000
  
  
• Company continues to generate significant free cash flow and build cash position.
  
  

Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced preliminary cash operating cost⁽¹⁾ and all-in sustaining cost⁽²⁾ ("AISC") per ounce sold for the first quarter of 2015 ("Q1/15"). Final numbers for these measures will be available on April 29, 2015 when the Company issues its full Q1/15 financial results. Cash operating cost per ounce sold for Q1/15 is estimated at US$509 (including US$27 per ounce for royalties), an 18% improvement from US$623 per ounce in first quarter of 2014 ("Q1/14") and significantly better than the Company's full-year 2015 target range of US$650 to US$700 per ounce. AISC per ounce sold in Q1/15 is estimated at US$748 per ounce, an improvement of 22% from US$960 in Q1/14 and well below the full-year 2015 target range of US$950 to US$1,000 per ounce. Total production costs in Q1/15 are estimated at approximately $33.0 million compared to total production costs of $29.7 million in Q1/14 and a full-year 2015 target of $125.0 million.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Our cash operating costs and AISC per ounce sold were very strong in Q1/15, largely driven by record production and the highest average quarterly grade since we declared commercial production. Our preliminary cash operating costs and AISC show considerable improvement from last year's first quarter and are well below our full-year 2015 target ranges. With our high level of production, low costs per ounce and an average Canadian dollar gold price of over $1,500 per ounce, we generated significant free cash flow during Q1/15 and increased our cash and bullion⁽³⁾ by $15.5 million to approximately $77.0 million.