Lake Shore signs agreement with Flying Post and Mattagami First Nations

Lake Shore Gold Corp., a mineral development and exploration company, has signed an Exploration Agreement with the Flying Post First Nation (FPFN) and Mattagami First Nation (MFN) in order to promote a cooperative and mutually respectful relationship between the FPFN and MFN.

The official signing ceremony included Chief Walter Naveau, Mattagami First Nation; Chief Murray Ray, Flying Post First Nation; Anthony P. Makuch, President, CEO, Director, Lake Shore Gold Corp.; Shawn Batise, Executive Director, Wabun Tribal Council; Chris McKay, Lands and Resources Manager, Mattagami First Nation; Brian Hagan, Vice President, Health, Safety & Environment and Chris Stewart, Vice President, Operations, both of Lake Shore Gold Corp.

Chief Naveau said this agreement is another stepping stone in our development as First Nation people. This is an historic period for my people as we are finally able to work with mining companies in a way that benefits us.

Chief Ray said, in the past, life has been very hard on our members and we have been dispersed from our lands far and wide but today with the hope of a brighter future, there is excitement about the prospect of coming back to our land.

Tony Makuch, President and CEO of Lake Shore Gold, said the agreement being announced today is an important step for maintaining and further developing our solid and mutually beneficial working relationships with both the Mattagami and Flying Post First Nations, two key stakeholders in the Timmins West project.

We have the greatest respect for both communities and wish to thank them for the constructive approach they displayed in negotiating the completion of the Exploration Agreement, he added.

We look forward to working with them for many years to come as we move Timmins West from exploration/advanced exploration through development and to production, continued Mr. Makuch.

Timmins West is a project with significant momentum, with development from both a surface ramp and shaft, as part of the ongoing advanced exploration program, expected to commence during the third quarter and initial production of ore expected by early 2009, concluded Mr. Makuch.