Lake Shore Gold and Franco-Nevada Complete $50 Million Royalty and Equity Investment Transaction

Abstract

(Marketwire - March 8, 2012) - Lake Shore Gold Corp. (TSX:LSG)(NYSE Amex:LSG) ("Lake Shore Gold" or the "Company") today reported that the Company has closed its previously announced royalty and equity investment agreements (the "Agreements") with Franco-Nevada Corporation (TSX:FNV)(NYSE:FNV) ("Franco-Nevada"). Under terms of the Agreements, Franco-Nevada has paid to the Company US$35 million for a 2.25% net smelter return royalty on the sale of minerals from the Company's Timmins West Complex. In addition, Franco-Nevada has paid C$15 million to acquire 10,050,591 common shares of the Company on a private placement basis.