High-Quality, Low-Cost Gold Production

Full-Year & Q4 2015 Conference Call

February 24, 2016

2

Information included in this presentation relating to the Company's expected production levels, production growth, costs, cash flows, economic returns, exploration

activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning

of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of

1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does not assume any obligation, to update these forward-looking

statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable,

including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in

transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects

according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company

makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve

known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different

from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and

fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking

statements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual Information Form

and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company’s most recent Annual Report on

Form 40-F and other regulatory filings with the Securities and Exchange Commission.

QUALITY CONTROL

Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Control samples consisting of 1

blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the certified standards are checked to be within

acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fire assay with a 30-gram aliquot. For

samples that return a value greater than three grams per tonne gold on exploration projects and greater than 10 gpt at the Timmins mine and Thunder Creek underground

project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible gold are typically tested by pulp metallic analysis on some projects.

NQ size drill core is saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is

transported in security-sealed bags for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in

Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.

QUALIFIED PERSON

Scientific and technical information related to mine production and reserves contained in this presentation has been reviewed and approved by Natasha Vaz, P.Eng., Vice-

President, Technical Services, who is an employee of Lake Shore Gold Corp., and a “qualified person” as defined by National Instrument 43-101 – Standards of

Disclosure for Mineral Projects (“NI 43-101”).

Scientific and technical information related to resources, drilling and all matters involving mine production geology, as well as exploration drilling, contained in this

presentation, or source material for this presentation, was reviewed and approved by Eric Kallio, P.Geo., Senior Vice-President, Exploration. Mr. Kallio is an employee of

Lake Shore Gold Corp., and is a “qualified person” as defined by NI 43-101.

Forward-Looking Statements

3

Presentation Overview

Full-year and Q4/15 results

144 Gap Deposit resource and drill results

Whitney exploration results

Business combination agreement with Tahoe Resources Inc.

4

2015 – Solid Year of Performance

1,307,200 tonnes processed at 4.4 grams per tonne

Gold sales 183,300 oz

Gold poured 179,600 oz

Gold produced 178,700 oz

5

2015 – Low Unit Operating Costs

Cash operating costs(1) US$576/oz

Total production costs of $135.2M

AISC(1)(2) US$866/oz

(1) Example of non-GAAP measure, see Slide 20 for more information

(2) Refers to all-in sustaining costs

6

2015 – Solid Financial Results

Record revenue $271.4 million

Record cash earnings from mine operations $136.6

million

Net earnings $8.7 million or $0.02 per common share

Cash flows from operating activities(1) $98.6 million

Cash and bullion at December 31, 2015 $99.4 million

$99.9 million at February 23, 2016

(1) Example of non-GAAP measure, see Slide 20 for more information

7

Q4/15 – Record Throughput Offsets Lower Grades

355,600 tonnes processed at 3.9 grams per tonne

Gold sales 42,000 oz

Gold poured 42,800 oz

Gold produced 42,500 oz

8

Q4/15 – Low Unit Operating Costs

Cash operating costs US$605/oz

Total production costs of $34.0M

AISC US$935/oz

9

Revenue $61.7 million

Cash earnings from mine operations $27.9 million

Net loss $4.5 million or $0.01 per common share

Cash flows from operating activities $17.0 million

Q4/15 – Increased Revenues, Solid Operating Cash Flow

10

144 Gap Deposit – First Resource

11

144 Gap – Encouraging New Drill Results

Timmins Deposit Thunder Creek 144 GAP Deposit

144 Gap Deposit(1) Indicated: 1,734,000 tonnes @ 5.41 gpt (301.7k oz)

Inferred: 1,914,000 tonnes @ 5.19 gpt (319.2k oz)

(1) See Slide 21 for footnotes related to the 144 Gap Deposit resource

Open

Open

Open

Open

12

144 Gap – Encouraging New Drill Results

Confirms existing results

Intersections in defined

resource (but not included

in resource estimate)

49.92gpt/22.7m

31.27gpt/18.5m

10.56gpt/7.8m

5.41gpt/36.0m

Highlights potential to

expand resource

Intersections outside

defined resource

6.43gpt/12.5m

5.97gpt/18.8m

8.09gpt/9.9m

13

Whitney Project – Evaluating Open-Pit Model

14

Whitney Drill Results – Confirm and Expand Mineralization

Drilling in 110 Zone

Confirms & expands

mineralization to west

29.42gpt/12.0m

8.45gpt/9.5m

6.45gpt/9.2m

Extends zone to depth

4.62gpt/3.1m

3.02gpt/10.7m

Drilling in North Volcanics

Highlights potential to

extend resource to north

and to depth

3.20gpt/7.2m

1.21gpt/15.0m

2.24gpt/8.5m

15

Tahoe to acquire all issued and O/S LSG shares

Exchange ratio of 0.1467 (Tahoe share for each LSG share)

Implied consideration $1.71 per LSG share based on closing price of

Tahoe shares on Feb. 5/16

Implied premium of 30.4% and 25.7% based on 20 VWAP(1) of company

share prices ending Feb. 4 and Feb. 5, respectively

Pro forma ownership: 74% Tahoe, 26% LSG

LSG, Tahoe Business Combination

Implied value of $1.87 per LSG Share based on Tahoe closing

price of $12.75/share on TSX on Feb. 23/16

(1) Refers to volume weighted average price

16

LSG, Tahoe Business Combination

Large-scale, low-cost production @ 400,000 oz gold, 20M oz silver per year (600,000 – 700,000 oz gold equivalent)(1)

Gold equivalent cash costs <US700/oz, AISC <US$950/oz(1)

Large portfolio of growth assets Growing gold production in Peru and Canada

Attractive exploration targets in all regions

Solid free cash flow generation

Strong balance sheet – >US$150M in cash

Returning capital to shareholders Monthly dividend of US$0.02 per share (US$0.24 per share per year)

(1) Using US$1,175/oz gold, US$15.00/oz silver

17

Benefits for LSG shareholders

Unlocks value immediately at level well over conversion price

of convertible debenture ($1.40/share)

Increases prospects for future value creation through

ownership of Tahoe shares

Leverage to accelerated growth plans for Timmins assets

Participation in near-term growth in gold production in Peru

Leverage to silver through Escobal mine in Guatemala

Participation in attractive dividend

US$0.02 per share per month (US$0.24 per share per year)

LSG, Tahoe Business Combination

18

Transaction removes financial constraints on LSG’s ability to

advance Timmins operations/projects

Financial strength/flexibility offers potential to accelerate growth

Multiple growth projects require capital investment to advance

Expanding mill to 5,500 tonnes per day

144 Trend (advancing into production, significant exploration potential)

Gold River (>1 million ounces in resources, new drilling planned in 2016)

Bell Creek Deep (sinking shaft to below 1,000 metres)

Whitney Project (open-pit project adjacent to Bell Creek Mill)

Fenn-Gib (large-scale, longer-term project)

Juby (large-scale, longer-term project)

LSG, Tahoe Business Combination A Game-Changing Transaction for Timmins Operations

19

LSG, Tahoe Business Combination Creating a New Leader in Precious Metals Production

Increased financial strength

Accelerated growth

Immediate value through attractive premium

Leverage to future value creation

Participation in attractive monthly dividend

20

Non-GAAP Measures(1)

Cash Operating Costs per Ounce

Cash operating cost per ounce is a Non-GAAP measure. In the gold mining industry, cash operating cost per ounce is a common performance measure

but does not have any standardized meaning. Cash operating costs per ounce are based on ounces sold and are derived from amounts included in the

Consolidated Statements of Comprehensive Income and include mine site operating costs such as mining, processing and administration, but exclude

depreciation, depletion and share-based payment expenses and reclamation costs. The Company discloses cash cost per ounce as it believes this

measure provides valuable assistance to investors and analysts in evaluating the Company’s performance and ability to generate cash flow. This

measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP such as total production costs. A

reconciliation of cash operating costs and cash operating cost per ounce sold to total production costs for the three and twelve months ended December

31, 2015 is set out on page XX of the Company’s Management Discussion and Analysis (“MD&A”) for the full-year and fourth quarter 2015.

All-In Sustaining Costs per Ounce

AISC is a Non-GAAP measure. The measure is intended to assist readers in evaluating the total costs of producing gold from current operations. While

there is no standardized meaning across the industry for this measure, the Company’s definition conforms to the AISC definition as set out by the World

Gold Council in its guidance note dated June 27, 2013. The Company defines all-in sustaining cost as the sum of cash costs from mine operations,

sustaining capital (capital required to maintain current operations at existing levels), corporate general and administrative expenses, in-mine exploration

expenses and reclamation cost accretion related to current operations. All-in sustaining cost excludes growth capital, growth exploration expenditures,

reclamation cost accretion not related to current operations and interest and other financing costs. A reconciliation of all-in sustaining costs and all-in

sustaining cost per ounce to total production costs for the three and twelve months ended December 31, 2015 is set out on page XX of the Company’s

MD&A for the first half and second quarter 2015 .

Cash Earnings from Mine Operations

Cash earnings from mine operations is a Non-GAAP measure and does not have any standardized meaning. The Company discloses cash earnings from

mine operations as it believes this measure provides valuable assistance to investors and analysts in evaluating the Company’s ability to finance its

ongoing business and capital activities. The most directly comparable measure prepared in accordance with GAAP is earnings from mine operations.

Cash earnings from mine operations represent the earnings from mine operations prior to deducting non-cash expenses, and is calculated by adding

depletion, depreciation and share-based payments in production costs to earnings from mine operations. A reconciliation of cash earnings from mine

operations to earnings from mine operations for the three and twelve months ended December 31, 2015 is set out beginning on page XX of the

Company’s MD&A for the first half and second quarter 2015

(1) The Company’s MD&A for the full-year and fourth quarter of 2015 and 2014 is posted at www.sedar.com and on the Company’s website at www.lsgold.com.

21

Footnotes to 144 Gap Deposit Resource

1) Mineral resource estimates have been classified according to CIM Definitions and Guidelines.

2) Mineral resources are reported inclusive of reserves.

3) Mineral resources incorporate a minimum cut-off grade of 2.6 grams per tonne gold.

4) Cut-off grade is determined using a weighted average gold price of US$1,100 per ounce and an

exchange rate of $0.90 $US/$CAD.

5) Cut-off grades assume mining, G&A and trucking costs of $74 per tonne and processing costs of $22 per

tonne. Metallurgical recoveries are estimated at 97.0% based on initial test work.

6) Mineral resources have been estimated using Inverse Distance Squared estimation method and gold

grades which have been capped between 70 and 120 grams per tonne based on statistical analysis of

each zone.

7) Assumed minimum mining width is two metres.

8) The mineral resources were prepared under the supervision of, and verified by, Eric Kallio, P.Geo.,

Senior Vice-President, Exploration, Lake Shore Gold Corp., who is a qualified person under NI 43-101

and an employee of Lake Shore Gold.

9) Tonnes information is rounded to the nearest thousand and gold ounces to the nearest one hundred. As a

result, totals may not add exactly due to rounding.