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Lake Shore Gold Corp. and West Timmins Mining Inc. today jointly announced that the companies have completed the business combination originally announced August 27, 2009. Under terms contemplated by the Business Combination Agreement, Lake Shore Gold has acquired all of the outstanding common shares of West Timmins with West Timmins shareholders receiving 0.73 of a Lake Shore Gold common share for each common share of West Timmins. Lake Shore Gold is issuing approximately 104 million common shares through the transaction.

Tony Makuch, President and Chief Executive Officer of Lake Shore Gold, commented: “We are pleased to welcome the shareholders of West Timmins to Lake Shore Gold. Completing the transaction has created the next major, wholly owned gold mining complex in Timmins, the Timmins West Gold Mine Complex, comprised of approximately 130 square kilometers of highly prospective property along the Timmins gold structure west of the Mattagami River Fault. The discoveries at the Timmins Mine and Thunder Creek confirm the exploration potential of this large land package. The many surface showings and historic drill results from the other properties within the Complex highlight the potential for additional gold discoveries and resource development throughout the land package.

“Very importantly, consolidating Thunder Creek with the Timmins Mine and accessing it using our existing infrastructure will allow us to accelerate Thunder Creek’s development and achieve significant synergies. We are currently preparing to commence an underground advanced exploration program at Thunder Creek, including drifting across to the high-grade Thunder Creek gold mineralization from the 200 Level and 650 Level at the Timmins Mine. An extensive underground and surface diamond drilling program will be ongoing throughout the next year, and will support underground development on ore grade mineralization. Our goal by the end of 2010 will be to have completed a National Instrument 43-101 resource estimate for Thunder Creek and to have commenced processing advanced exploration ore from the property.”

“We are very pleased to see the closing of the business combination with Lake Shore Gold,” said Darin Wagner, former President and CEO of West Timmins. “The overwhelming support from our shareholders for this transaction indicates that they recognize the inherent value in combining the assets under one banner and we all look forward to the months ahead as Lake Shore Gold drives aggressively forward on the production and exploration fronts.”

Closing of the transaction follows a vote by West Timmins Mining shareholders on Wednesday, November 4, 2009, in which approximately 98% of votes cast were in favour of the business combination. Court approval of the plan of arrangement was received yesterday, Thursday, November 5, 2009. Shares of West Timmins are anticipated to be delisted from the Toronto Stock Exchange on Wednesday, November 11, 2009.

Through the Business Combination Agreement, Lake Shore Gold has acquired West Timmins’ 40% interest in the Thunder Creek property as well as approximately 120 square kilometres of additional highly prospective exploration property in close proximity to Thunder Creek and the Company’s Timmins Mine. Among these additional properties are the Thorne Property, which hosts a 400,000 ounce, near surface inferred gold resource and which has returned recent encouraging drill results from several mineralized zones, and the 144 Property, which covers 4.0 kilometres of the same volcanic/ultramafic, intrusive/sedimentary contact which hosts the Timmins and Thunder Creek deposits. In addition, the transaction also provides Lake Shore Gold with 100% ownership of the high-grade Lluvia de Oro gold-silver and polymetallic Montana de Oro projects in Mexico.

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