Comparison

SGR - 312,576,841 x 1.97 = $615,776,376

LSG - 400,146,669 x 1.73 = $692,253,737

SGR - San Gold earns $1.01-million in Q3 2011

Third-quarter 2011 highlights:

• For the first time in history, the company reported unadjusted positive quarterly net income of $1.0-million.
• The company recognized record revenue of $32.9-million on gold sales of 18,867 ounces at a realized price of $1,743 per ounce.
• The company generated cash flow from operations before changes in working capital of $9.8-million.
• The company generated record operating income from operations of $12.1-million.
• The company reported total cash costs of $769 per ounce of gold sold, below annual guidance of $825 per ounce.
• The company realized a cash operating margin of $974 per ounce of gold sold.
• The company achieved average mill throughput of 1,324 tons per day.

Subsequent to quarter-end, the company:

• Maintained full-year production guidance of 80,000 ounces and reduced its full-year total cash cost guidance to less than $800 per ounce;
• Provided 2012 gold production guidance of 100,000 ounces and preliminary projected guidance for 2013 of 120,000 ounces.

LSG - Lake Shore Gold loses $5.2-million in Q3

Third quarter 2011 financial review:

• Gold sales during the third quarter 2011 were 16,570 ounces at an average price of $1,726 (U.S.) per ounce. Gold sales for the nine months ended Sept. 30, 2011, totalled 69,512 ounces at an average price of $1,501 (U.S.) per ounce.
• Cash operating costs from the Timmins mine totalled $94 per tonne or $884 (U.S.) per ounce in the third quarter of 2011 ($96 per tonne or $845 (U.S.) per ounce during the nine months ended Sept. 30, 2011). Cash margin during the quarter was $842 (U.S.) per ounce.
• Cash earnings from mine operations were $9.1-million or two cents per common share during the third quarter. Cash earnings from mine operations for the nine months ended Sept. 30, 2011, were $23.0-million or six cents per common share.
• Net loss in the third quarter of 2011 was $5.2-million or one cent per share, largely reflecting depreciation, depletion and share-based payments ($5.9-million), general and administrative expenses ($2.8-million, excluding stock-based compensation), exploration costs ($2.4-million) and a $1.8-million writedown related to the company's agreement to sell its Mexican assets. Net loss for the nine months ended Sept. 30, 2011, was $5.4-million or one cent per common share.
• Project spending in the nine months ended Sept. 30, 2011, was $71.1-million, with $24.5-million for exploration. An additional $12.7-million was spent for the Bell Creek mill expansion.
• Cash at Sept. 30, 2011, was $47.6-million, including $20-million (U.S.) drawn from the company's $50-million (U.S.) credit facility.

Third quarter 2011 operating review:

• Total gold poured during the third quarter of 2011 totalled 16,693 ounces (60,014 ounces in the nine months ended Sept. 30, 2011).
• Processed gold totalled 18,833 ounces in the third quarter of 2011, based on 173,877 tonnes processed at an average grade of 3.49 grams per tonne. Processed gold totalled 58,776 ounces in the first nine months of the year, based on 485,236 tonnes processed at an average grade of 3.92 grams per tonne.
• Of processed gold ounces in the third quarter, 11,909 ounces related to the Timmins mine (32,486 ounces for the nine months ended Sept. 30, 2011), 3,491 ounces were from the Bell Creek mine advanced exploration program (17,792 ounces for the nine months ended Sept. 30, 2011) and 3,433 ounces were from the Thunder Creek advanced exploration program (8,497 ounces for the nine months ended Sept. 30, 2011).
• Mill throughput averaged 1,890 tonnes per day during the third quarter and 1,777 tonnes per day during the nine months ended Sept. 30, 2011. The Bell Creek mill is now meeting and exceeding expected performance levels. Throughput levels averaged over 2,000 tonnes per day in September.

2011 outlook:

• Full-year production is expected to total at least 85,000 ounces of gold poured.
• Project spending is expected to total $85-million, with $30-million for exploration and $20-million to $25-million for the mill expansion; $85-million of project spending is $10-million more than the previous estimate of $75-million, and largely reflects increased underground development and infrastructure work at Bell Creek for ramp advancement and to complete an additional exploration drift, as well as increased development at Thunder Creek. Mill expansion spending in 2011 was previously estimated at $25-million to $30-million. As a result, total project spending for 2011, including mill expansion, is now estimated at $105-million to $110-million, compared with the previous estimate of $105-million.
• Head grades, cash costs and mill throughput levels are all expected to improve during the fourth quarter 2011.
• Significant growth in resources is expected before year-end with the planned release of initial National Instrument 43-101-compliant resources at Thunder Creek and Fenn-Gib.