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'98 Gs400 Oil And Power Steering Leak Problem. Any Advice?

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So....I have a power steering leak. It has been there for awhile, over a year and refill the fluid about once a week. I had some time, and extra money andI took it to the shop to get it fixed. I was prepared for it bascially, but my trusted mechanic tells me I have an oil leak, a really really bad one. It takes priority in fixing it now. My sproketts in both cam shafts need to be replaced, and some are parts that Lexus does not sell. They are leaking behind the camshaft and oil is gushing out. My oil light just started coming on, and under the hood is covered in oil including the pan below.

The job has continued to escalate in cost and the labor hours are about 10+ hours. The price has now exceeded $2000 and he is considering replacing the entire engine, WHICH I DON'T WANT TO DO. The engine is that car. 300hp classic Lexus V8. It runs great and I did not know the problem was this severe. It had just started giving me signals that it was a problem with the oil light coming on and a minor burning oil smell. I am glad I took it in that same week, but spending $2k on a car that is probably only worth $7k is a dilemma.

Has anyone else had this problem?

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