Lake Shore and Holmer Gold complete merger

Vancouver – Lake Shore Gold (LSG-V) has acquired all the shares of Holmer Gold Mines (HGM-V) through a planned merger.

The marriage combines the previously joint ventured interests in the Timmins Gold Project, that has seen a significant resource increase over the past year, as well as other mineral properties in the Abitibi Greenstone Belt gold-camp of northeastern Ontario and northwestern Quebec.

The combination has seen Lake Shore issuing one share for every 1.5 Holmer Gold common shares. Holmer shares were delisted following the merger.

Since optioning the Timmins Gold Project in mid-2003, Lake Shore has aggressively drilled over 31,000 metres of core, resulting in a 200% increase (using uncut grades) in resource figures over a 2002 Watts, Griffis and McOuat calculated resource.

The project has an indicated resource estimate of 1.4 million tonnes averaging 11 grams gold per tonne, with a 6-gram gold cut-off grade. An additional 200,000 tonnes of inferred resource at 8.7 grams gold has been outlined.

Lakeshore Gold now has 67.1 million shares outstanding with it recently trading in the 95 per share range.