Lake Shore Gold and West Timmins Mining Complete Business Combination

On November 6, 2009, Lake Shore Gold Corp. and West Timmins Mining Inc. completed their business combination. Under the terms of the business combination agreement, Lake Shore Gold acquired all of the outstanding common shares of West Timmins by way of plan of arrangement under the Business Corporations Act (British Columbia). Pursuant to the terms of the plan of arrangement, West Timmins shareholders received 0.73 of a Lake Shore Gold common share for each common share of West Timmins. Lake Shore Gold issued approximately 104 million common shares in connection with this transaction. Following completion of the transaction, West Timmins shareholders held approximately 34 per cent of the outstanding Lake Shore Gold shares. The value of the transaction was undisclosed.

Through its acquisition of West Timmins, Lake Shore Gold consolidated ownership of the Thunder Creek property and acquired approximately 120 square kilometres of additional highly prospective exploration property in close proximity to Thunder Creek and the company's Timmins Mine. In addition, the transaction provides Lake Shore Gold with 100 per cent ownership of the high-grade Lluvia de Oro gold-silver and polymetallic Montana de Oro projects in Mexico.

Cassels Brock & Blackwell LLP acted for Lake Shore Gold with a team that included Jay Goldman and Mark Bennett (securities and mining); Alexandra Iliopolous, Alexander Pizale, Jason MacIntosh (securities) and Christopher Norton and Duane Milot (tax).

The special committee of West Timmins's board of directors was represented by Davies Ward Phillips & Vineberg LLP with a team that comprised Kevin Thomson, Melanie Shishler, Richard Fridman, Joshua Kuretzky, Chrissy Giannoulias (M&A) and Duncan Osborne (tax). West Timmins was represented by Daniel Allen, Zafar Khan and Stuart Breen (corporate) and Martin Palleson (litigation) of Gowling Lafleur Henderson LLP and on US matters by Dorsey & Whitney LLP, with a team that included Christopher Doerksen and John Peterson (securities) and John Hollinrake and Greg Perry (tax).

BMO Capital Markets acted as financial advisor to Lake Shore Gold.