LAKE SHORE GOLD CORP
ISSUE #8 | MAY 2015(1)
A DAY IN THE LIFE OF A MINE SUPERINTENDENT
It is hard to fathom what life is like working deep below the surface of the ground all day, every day.
It’s dark, it’s dirty and a bit daunting as well. Meeting Evan Pelletier, the mine superintendent at LSG’s
Timmins West Mine throws some light on the typical day of a mine superintendent.
DELVING DEEP INTO 144
Coming out of last year, Lake
Shore Gold was carrying a lot of
momentum. Our production during
the year of 185,600 ounces of gold
was a record performance and
exceeded our target range by a wide
margin. Our cash costs and all-in
sustaining costs also beat our targets
and both improved by 23% from
the previous year. We generated
significant free cash flow, repaid
most of our senior secured debt and
increased our reserves by almost
30%. We also achieved a major new
discovery, the 144 Gap Zone.
There are many ways we can describe the potential of 144:
Game changer, turning point, major break-through. The right
words will come as we complete more work, establish a resource
and move forward with development and production. What we
know today is that we are onto something special and exciting.
In 2015, we have kept the momentum going, our first quarter
production of 53,000 ounces was a record performance and a
19% increase from the same period in 2014. Our cost performance
in the first quarter was excellent, with cash operating costs and
all-in sustaining costs at US$510 per ounce and US$750 per
ounce, respectively, better than last year’s first quarter and ahead
of our targets for the year. Looking at the year as a whole, with
continued strong operating performance, a sharp increase in the
Canadian dollar gold price since the year began and our senior
debt to be fully repaid by the end of May, we are on track for
another excellent year in 2015.
The 144 Gap Zone has the potential to add a significant new
component to our production profile over the next few years.
Equally exciting is the longer-term potential of the larger
entire 144 area. Through drilling and geological evaluation,
we have determined that the geological structure (“TC-144
Trend”) that hosts the Timmins Deposit, Thunder Creek and the
144 Gap extends further to the southwest through 144 North
and 144 South. Our plan is to target these areas for future
drilling as we advance our theory that the TC-144 Trend may,
in fact, host multiple deposits of gold mineralization along a
six kilometre structure.
It’s 5.30 am and Evan Pelletier is about to begin his day. His first call each morning is to ensure safety
procedures are met at the skipping towers and paste plant. He meets with the captains to ensure the safety
plan is followed rigorously; any incidents from the night shift are investigated; and recommendations made
to correct any deviations from procedures are followed. At around 6.30 am Evan meets the supervisors and
discusses the plan for the day. After the safety huddle with about 10 crews, the 24-hour plan for the day is
drawn up at the Manager’s Meeting. At around 8.30 am each morning he heads off underground for his
daily visit with the captains to ensure the mining plan is being followed and performs safety inspections and
corrects safety issues.
At Timmins West Mine
His afternoons involve visiting contractors at the paste plant, interviewing candidates for potential hires,
ensuring orders are placed for materials, dealing with any issues or complaints from the men and reviewing
operating and safety procedures before he winds up to go home around 4.00 pm.
Evan’s introduction to mining was brief. As a young boy out of school he needed a job – any job – and started off as a cleaner at the
Timmins camp. Asked to work one weekend, he went underground with his supervisor and it changed
his life forever. Having travelled and worked in Mali, Africa just south of the Sahara desert and in the
Gobi Desert in Mongolia at the Oyutolgoi project with Ivanhoe Mines, Evan has worked under gruelling
temperatures ranging from -40 deg C to +40 deg C, terrible living conditions on site and dealt with differing
personalities and temperaments. Evan says mining and the life in the underground is “hard to get out of your
blood”. “It has been a challenging and rewarding career and safety has improved tremendously with rarely
any fatalities over the last several years as employers now recognize the importance of working safely”.
His ultimate goal each day is to ensure that the men come back to the surface unharmed.
Mining doesn’t happen in cities, so the main challenge for Evan whilst working in remote locations was
constantly being away from home and his family and friends. The lifestyle afforded by working so close to
home was one of the deciding factors that saw him accept the job at Lake Shore Gold in 2012. “I am truly
grateful for the opportunity to work with the caliber of people that are part of the Lake Shore family”, says
Evan. The highlight of his career? Having had the opportunity to meet and accompany the former Prime
Minister of Canada, Jean Chrétien on an underground tour. When he is not underground or at site dealing
with the everyday issues that is part of a mine superintendent’s job, Evan can be found woodworking at
home or fishing and hunting and spending quality time with his wife and daughters.
With Jean Chrétien,
former PM of Canada
NEW HIRES
To our new hires, welcome to the Lake Shore Gold family.
Eddy Lamontagne
Chris Walraven
Daniel Dube
Denis Lessard
Murray Mackenzie
Tracy Plaunt
Bolortungalag Myagmarbat Raymond Richard
David Ristimaki
John Lee
Joey Cronier
Joel Lefebvre
Donald Caron
Jamie Cronier
Darquis Fontaine
Trevor Broom
Karin Ostler
Teagan Lefebvre
Kevin Alarie
Richard Bergeron
Milferd Burnett
Andrew Metsala
Kevin Hedican
Dennis Vickers
Kelly Voyer
Paul Mallette
Kiefer Patriquin
Keith Seidler
Kevin Boudreau
Jason Bruno
JC Martens
Andrew Clifford
D’arcy Tremblay
James Dagenais
Andrew Kapel
Danny Lafreniere
Andrew Murray
Aaron Paquette
Quinlan Peever
Casee Wright
Shane Bouvier
Rochelle Collins
Judy Lam
Patrick R Hurtubise
Alex Davidson
Terry Piper
Zack Lagrange
Rebecca Thiffault
Alain P Gaudet
Derek Morellato
Message from Tony
Very importantly, we are off to a good start in terms of safety, with
our incident frequency rates down from last year’s first quarter. While
pleased with the improvement, we are determined to make additional
progress as we work towards Zero Harm. As part of our efforts, we
are preparing new recognition and reward programs to ensure safety
is paramount in our thoughts and actions each and every day. Of
course, the ultimate reward for having a safe and healthy workplace
is the joy of returning home to our families each day.
As a company, we have achieved a great deal over the last few
years. I firmly believe that, as time passes, when we look back at
this time in our history, an accomplishment that will stand out as
much as any other, will be our discovery at the 144 Exploration
Area (“144”) in October 2014.
The details of the discovery and advancement of the 144
Gap Zone are provided on page 2 of this newsletter. Briefly,
we have identified a large zone of gold mineralization
southwest of Timmins West Mine. The zone remains open
for expansion and includes a wide, high-grade core. We are
drilling aggressively this year from surface and underground to
establish a first resource, to be released with our next resource
update early in 2016. We are also driving an exploration drift
from Thunder Creek into the discovery area to support our
underground drilling.
We are poised for an excellent year in 2015 as we build on
the existing strengths of our mines and mill, continue to replace
reserves, and advance our 144 Gap Zone discovery. I am
incredibly excited about this journey that we as a team are on,
the building of a safe and responsible, low-cost, long-life gold
producer, and truly believe the best of Lake Shore Gold is yet
to come.
Regards,
Tony Makuch
President & CEO
LETTERS TO THE EDITOR
This is our #8 issue of LSG News. Inside we provide an overview of our exciting new
discovery at our 144 Gap Zone, health and safety tips and welcome our new hires. Also
featured is an insight into a day in the life of a miner at LSG.
Please feel free to send
in your comments, ideas,
blogs, pictures to the editor
at [email protected]
(1) This newsletter contains forward-looking information within the meaning of certain securities laws. Readers are directed to the Company’s website and its most recent Annual Information Form, filed
at www.sedar.com, for cautionary language relating to forward-looking information.
(2)Cash operating costs and all-in sustaining costs are examples of non-GAAP measures. A discussion of non-GAAP measures is provided in the Non-GAAP Measures section of the Company’s most recent Management’s Discussion & Analysis (full-year and fourth quarter of 2014), which is filed at www.sedar.com and available on the Company’s website at www.lsgold.com.
SUCCESS DRIVING GROWTH AT 144
A major achievement for Lake Shore Gold occurred last
October when we announced the discovery of the 144 Gap
Zone, a large zone of gold mineralization located to the
southwest of Thunder Creek. Through the roughly 70,000
metres of surface drilling we have completed since last August,
we have been successful in identifying a zone with dimensions
of at least 400 metres along strike and 400 metres down dip,
and which remains open for expansion.
Three press releases have been issued to date in 2015 about
the 144 Gap Zone. The drill results included in these releases
significantly increased the size of the zone, and also identified
a wide, high-grade core with at least 300 metres of vertical
height, 50 to 125 metres of width and 75 to 125 metres of
strike length.
Advancing the 144 Gap discovery is an important priority for
our company. We began the year with a 2015 exploration
program including 90,000 metres of surface drilling, 30,000
metres of underground drilling and plans to complete an
exploration drift from Thunder Creek to the discovery area involving 1,200 metres of total development. So far this year, approximately
45,000 metres of surface drilling have been completed, and we have advanced the exploration drift approximately 450 metres.
On May 4, 2015, we announced the addition of another 60,000 metres of drilling to the 2015 exploration program. The new drilling
results from the considerable success that has been achieved to date will allow the Company to continue to extend and expand the
144 Gap Zone and increase the proportion of measured and indicated resources to be included in the first resource for the zone.
We are targeting a first resource for the end of 2015 (to be released in early 2016). Also included in the new drilling is an exploration
program targeting the southwest extension of the 144 Trend towards 144 North and 144 South, two additional highly prospective
exploration targets.
HEALTH AND SAFETY
Lake Shore Gold Corp is, once again, actively
participating in the WSIB “Safety Groups” program in
2015. Our participation plays an important role in helping
to make prevention of workplace injuries and illnesses at
Lake Shore Gold a daily habit by building the concept of
safety into our management systems.
As part of the WSIB system, in 2014, we successfully
completed the elements of Violence and Harassment,
Health and Safety Policy Statement, Joint Health
and Safety Committee, Hazard Recognition and
Assessment, Hazard Reporting, and Return to Work
Program Development.
This year we will continue with the Safety Group activities
and will develop standards, evaluate and provide training
and make necessary improvements on the following five
elements of safety:1.J oint Health and Safety Committee or Health and
Safety Representative
2.Health and Safety Orientation
3.Supervisory Competencies
4.Workplace Inspections
5.Housekeeping and Organizing
SPRING CLEANING
SAFETY TIPS
Be careful when moving large pieces
of furniture and appliances
•Use proper lifting techniques, keeping your
back straight and lifting with your legs
•Wear shoes
•Do not rush
Use extreme caution while on ladders and step stools
•Remember to keep your center of balance centered on the ladder/step stool
•Best practices encourage you to keep your belly-button within the sides
of the ladder
•Have someone hold and steady the ladder for you
•Wear shoes that help grip the ladder rungs
Read safety instructions and recommendations on product labels
•Cleaning supplies can create nasty fumes so try and open some windows
or turning on an exhaust fan
•Do not mix ammonia and bleach – they create toxic fumes when combined
•Wear rubber gloves to avoid contact with skin
Wear a mask to clean dusty areas
•Many people are allergic to dust and this is a sure way to avoid a reaction
Do not leave unattended buckets of water
•Unattended buckets of water are drowning hazards for small children
Store away all cleaning supplies when finished
While much work remains, we are very encouraged by the potential of the 144 Gap Zone to become a significant new component
to Lake Shore Gold’s production profile. We are also encouraged about the prospects for additional new discoveries along the
144 Trend.
Timmins District Hospital (TADH) Spring Ball
Lake Shore Gold is a proud supporter of the Timmins District Hospital’s (TADH) Days Inn Spring Ball. The event, which is in its 16th year,
is one of the TADH Foundation’s most successful events. Since its inception, the Days Inn Spring Ball has raised more than $2.2 million
towards the purchase of new medical equipment. All funds raised at the Ball allow the hospital to improve the level of treatment available
to our community as well as the successful recruitment and retention of physicians and healthcare professionals.
Steps for Life
Lake Shore Gold is pleased to participate in the Steps for Life Walk for families of workplace tragedy. Last year the event saw huge
success with more than 4,300 participants in 35 communities across Canada who raised in excess of $630,000. All of the funds support
awareness programs on the importance of workplace safety/injury prevention and assist families who have been affected through the
Threads of Life family support program. This year’s event takes place on May 9, 2015 and we look forward to another successful event.
SAFE KIDS WEEK
Safe Kids Week is an annual public awareness campaign designed to raise awareness about the frequency and severity of preventable
childhood injuries. This spring, from May 4 – May 10 Lake Shore Gold is teaming up with Parachute for the 2015 Safe Kids Week in
alignment with Global Road Safety Week to raise awareness about the importance of road safety both for kids on their bicycles and for
vehicles operating around them.
SUCCESS DRIVING GROWTH AT 144
A major achievement for Lake Shore Gold occurred last
October when we announced the discovery of the 144 Gap
Zone, a large zone of gold mineralization located to the
southwest of Thunder Creek. Through the roughly 70,000
metres of surface drilling we have completed since last August,
we have been successful in identifying a zone with dimensions
of at least 400 metres along strike and 400 metres down dip,
and which remains open for expansion.
Three press releases have been issued to date in 2015 about
the 144 Gap Zone. The drill results included in these releases
significantly increased the size of the zone, and also identified
a wide, high-grade core with at least 300 metres of vertical
height, 50 to 125 metres of width and 75 to 125 metres of
strike length.
Advancing the 144 Gap discovery is an important priority for
our company. We began the year with a 2015 exploration
program including 90,000 metres of surface drilling, 30,000
metres of underground drilling and plans to complete an
exploration drift from Thunder Creek to the discovery area involving 1,200 metres of total development. So far this year, approximately
45,000 metres of surface drilling have been completed, and we have advanced the exploration drift approximately 450 metres.
On May 4, 2015, we announced the addition of another 60,000 metres of drilling to the 2015 exploration program. The new drilling
results from the considerable success that has been achieved to date will allow the Company to continue to extend and expand the
144 Gap Zone and increase the proportion of measured and indicated resources to be included in the first resource for the zone.
We are targeting a first resource for the end of 2015 (to be released in early 2016). Also included in the new drilling is an exploration
program targeting the southwest extension of the 144 Trend towards 144 North and 144 South, two additional highly prospective
exploration targets.
HEALTH AND SAFETY
Lake Shore Gold Corp is, once again, actively
participating in the WSIB “Safety Groups” program in
2015. Our participation plays an important role in helping
to make prevention of workplace injuries and illnesses at
Lake Shore Gold a daily habit by building the concept of
safety into our management systems.
As part of the WSIB system, in 2014, we successfully
completed the elements of Violence and Harassment,
Health and Safety Policy Statement, Joint Health
and Safety Committee, Hazard Recognition and
Assessment, Hazard Reporting, and Return to Work
Program Development.
This year we will continue with the Safety Group activities
and will develop standards, evaluate and provide training
and make necessary improvements on the following five
elements of safety:1.J oint Health and Safety Committee or Health and
Safety Representative
2.Health and Safety Orientation
3.Supervisory Competencies
4.Workplace Inspections
5.Housekeeping and Organizing
SPRING CLEANING
SAFETY TIPS
Be careful when moving large pieces
of furniture and appliances
•Use proper lifting techniques, keeping your
back straight and lifting with your legs
•Wear shoes
•Do not rush
Use extreme caution while on ladders and step stools
•Remember to keep your center of balance centered on the ladder/step stool
•Best practices encourage you to keep your belly-button within the sides
of the ladder
•Have someone hold and steady the ladder for you
•Wear shoes that help grip the ladder rungs
Read safety instructions and recommendations on product labels
•Cleaning supplies can create nasty fumes so try and open some windows
or turning on an exhaust fan
•Do not mix ammonia and bleach – they create toxic fumes when combined
•Wear rubber gloves to avoid contact with skin
Wear a mask to clean dusty areas
•Many people are allergic to dust and this is a sure way to avoid a reaction
Do not leave unattended buckets of water
•Unattended buckets of water are drowning hazards for small children
Store away all cleaning supplies when finished
While much work remains, we are very encouraged by the potential of the 144 Gap Zone to become a significant new component
to Lake Shore Gold’s production profile. We are also encouraged about the prospects for additional new discoveries along the
144 Trend.
Timmins District Hospital (TADH) Spring Ball
Lake Shore Gold is a proud supporter of the Timmins District Hospital’s (TADH) Days Inn Spring Ball. The event, which is in its 16th year,
is one of the TADH Foundation’s most successful events. Since its inception, the Days Inn Spring Ball has raised more than $2.2 million
towards the purchase of new medical equipment. All funds raised at the Ball allow the hospital to improve the level of treatment available
to our community as well as the successful recruitment and retention of physicians and healthcare professionals.
Steps for Life
Lake Shore Gold is pleased to participate in the Steps for Life Walk for families of workplace tragedy. Last year the event saw huge
success with more than 4,300 participants in 35 communities across Canada who raised in excess of $630,000. All of the funds support
awareness programs on the importance of workplace safety/injury prevention and assist families who have been affected through the
Threads of Life family support program. This year’s event takes place on May 9, 2015 and we look forward to another successful event.
SAFE KIDS WEEK
Safe Kids Week is an annual public awareness campaign designed to raise awareness about the frequency and severity of preventable
childhood injuries. This spring, from May 4 – May 10 Lake Shore Gold is teaming up with Parachute for the 2015 Safe Kids Week in
alignment with Global Road Safety Week to raise awareness about the importance of road safety both for kids on their bicycles and for
vehicles operating around them.
LAKE SHORE GOLD CORP
ISSUE #8 | MAY 2015(1)
A DAY IN THE LIFE OF A MINE SUPERINTENDENT
It is hard to fathom what life is like working deep below the surface of the ground all day, every day.
It’s dark, it’s dirty and a bit daunting as well. Meeting Evan Pelletier, the mine superintendent at LSG’s
Timmins West Mine throws some light on the typical day of a mine superintendent.
DELVING DEEP INTO 144
Coming out of last year, Lake
Shore Gold was carrying a lot of
momentum. Our production during
the year of 185,600 ounces of gold
was a record performance and
exceeded our target range by a wide
margin. Our cash costs and all-in
sustaining costs also beat our targets
and both improved by 23% from
the previous year. We generated
significant free cash flow, repaid
most of our senior secured debt and
increased our reserves by almost
30%. We also achieved a major new
discovery, the 144 Gap Zone.
There are many ways we can describe the potential of 144:
Game changer, turning point, major break-through. The right
words will come as we complete more work, establish a resource
and move forward with development and production. What we
know today is that we are onto something special and exciting.
In 2015, we have kept the momentum going, our first quarter
production of 53,000 ounces was a record performance and a
19% increase from the same period in 2014. Our cost performance
in the first quarter was excellent, with cash operating costs and
all-in sustaining costs at US$510 per ounce and US$750 per
ounce, respectively, better than last year’s first quarter and ahead
of our targets for the year. Looking at the year as a whole, with
continued strong operating performance, a sharp increase in the
Canadian dollar gold price since the year began and our senior
debt to be fully repaid by the end of May, we are on track for
another excellent year in 2015.
The 144 Gap Zone has the potential to add a significant new
component to our production profile over the next few years.
Equally exciting is the longer-term potential of the larger
entire 144 area. Through drilling and geological evaluation,
we have determined that the geological structure (“TC-144
Trend”) that hosts the Timmins Deposit, Thunder Creek and the
144 Gap extends further to the southwest through 144 North
and 144 South. Our plan is to target these areas for future
drilling as we advance our theory that the TC-144 Trend may,
in fact, host multiple deposits of gold mineralization along a
six kilometre structure.
It’s 5.30 am and Evan Pelletier is about to begin his day. His first call each morning is to ensure safety
procedures are met at the skipping towers and paste plant. He meets with the captains to ensure the safety
plan is followed rigorously; any incidents from the night shift are investigated; and recommendations made
to correct any deviations from procedures are followed. At around 6.30 am Evan meets the supervisors and
discusses the plan for the day. After the safety huddle with about 10 crews, the 24-hour plan for the day is
drawn up at the Manager’s Meeting. At around 8.30 am each morning he heads off underground for his
daily visit with the captains to ensure the mining plan is being followed and performs safety inspections and
corrects safety issues.
At Timmins West Mine
His afternoons involve visiting contractors at the paste plant, interviewing candidates for potential hires,
ensuring orders are placed for materials, dealing with any issues or complaints from the men and reviewing
operating and safety procedures before he winds up to go home around 4.00 pm.
Evan’s introduction to mining was brief. As a young boy out of school he needed a job – any job – and started off as a cleaner at the
Timmins camp. Asked to work one weekend, he went underground with his supervisor and it changed
his life forever. Having travelled and worked in Mali, Africa just south of the Sahara desert and in the
Gobi Desert in Mongolia at the Oyutolgoi project with Ivanhoe Mines, Evan has worked under gruelling
temperatures ranging from -40 deg C to +40 deg C, terrible living conditions on site and dealt with differing
personalities and temperaments. Evan says mining and the life in the underground is “hard to get out of your
blood”. “It has been a challenging and rewarding career and safety has improved tremendously with rarely
any fatalities over the last several years as employers now recognize the importance of working safely”.
His ultimate goal each day is to ensure that the men come back to the surface unharmed.
Mining doesn’t happen in cities, so the main challenge for Evan whilst working in remote locations was
constantly being away from home and his family and friends. The lifestyle afforded by working so close to
home was one of the deciding factors that saw him accept the job at Lake Shore Gold in 2012. “I am truly
grateful for the opportunity to work with the caliber of people that are part of the Lake Shore family”, says
Evan. The highlight of his career? Having had the opportunity to meet and accompany the former Prime
Minister of Canada, Jean Chrétien on an underground tour. When he is not underground or at site dealing
with the everyday issues that is part of a mine superintendent’s job, Evan can be found woodworking at
home or fishing and hunting and spending quality time with his wife and daughters.
With Jean Chrétien,
former PM of Canada
NEW HIRES
To our new hires, welcome to the Lake Shore Gold family.
Eddy Lamontagne
Chris Walraven
Daniel Dube
Denis Lessard
Murray Mackenzie
Tracy Plaunt
Bolortungalag Myagmarbat Raymond Richard
David Ristimaki
John Lee
Joey Cronier
Joel Lefebvre
Donald Caron
Jamie Cronier
Darquis Fontaine
Trevor Broom
Karin Ostler
Teagan Lefebvre
Kevin Alarie
Richard Bergeron
Milferd Burnett
Andrew Metsala
Kevin Hedican
Dennis Vickers
Kelly Voyer
Paul Mallette
Kiefer Patriquin
Keith Seidler
Kevin Boudreau
Jason Bruno
JC Martens
Andrew Clifford
D’arcy Tremblay
James Dagenais
Andrew Kapel
Danny Lafreniere
Andrew Murray
Aaron Paquette
Quinlan Peever
Casee Wright
Shane Bouvier
Rochelle Collins
Judy Lam
Patrick R Hurtubise
Alex Davidson
Terry Piper
Zack Lagrange
Rebecca Thiffault
Alain P Gaudet
Derek Morellato
Message from Tony
Very importantly, we are off to a good start in terms of safety, with
our incident frequency rates down from last year’s first quarter. While
pleased with the improvement, we are determined to make additional
progress as we work towards Zero Harm. As part of our efforts, we
are preparing new recognition and reward programs to ensure safety
is paramount in our thoughts and actions each and every day. Of
course, the ultimate reward for having a safe and healthy workplace
is the joy of returning home to our families each day.
As a company, we have achieved a great deal over the last few
years. I firmly believe that, as time passes, when we look back at
this time in our history, an accomplishment that will stand out as
much as any other, will be our discovery at the 144 Exploration
Area (“144”) in October 2014.
The details of the discovery and advancement of the 144
Gap Zone are provided on page 2 of this newsletter. Briefly,
we have identified a large zone of gold mineralization
southwest of Timmins West Mine. The zone remains open
for expansion and includes a wide, high-grade core. We are
drilling aggressively this year from surface and underground to
establish a first resource, to be released with our next resource
update early in 2016. We are also driving an exploration drift
from Thunder Creek into the discovery area to support our
underground drilling.
We are poised for an excellent year in 2015 as we build on
the existing strengths of our mines and mill, continue to replace
reserves, and advance our 144 Gap Zone discovery. I am
incredibly excited about this journey that we as a team are on,
the building of a safe and responsible, low-cost, long-life gold
producer, and truly believe the best of Lake Shore Gold is yet
to come.
Regards,
Tony Makuch
President & CEO
LETTERS TO THE EDITOR
This is our #8 issue of LSG News. Inside we provide an overview of our exciting new
discovery at our 144 Gap Zone, health and safety tips and welcome our new hires. Also
featured is an insight into a day in the life of a miner at LSG.
Please feel free to send
in your comments, ideas,
blogs, pictures to the editor
at [email protected]
(1) This newsletter contains forward-looking information within the meaning of certain securities laws. Readers are directed to the Company’s website and its most recent Annual Information Form, filed
at www.sedar.com, for cautionary language relating to forward-looking information.
(2)Cash operating costs and all-in sustaining costs are examples of non-GAAP measures. A discussion of non-GAAP measures is provided in the Non-GAAP Measures section of the Company’s most recent Management’s Discussion & Analysis (full-year and fourth quarter of 2014), which is filed at www.sedar.com and available on the Company’s website at www.lsgold.com.