Golden Star Breaks Ground on Hwini-Butre and Benso Project



    DENVER, October 26 /CNW/ - Golden Star Resources Ltd. (AMEX:   GSS) (TSX:
GSC) is pleased to announce the start of construction of the 50 kilometer haul
road to connect its Wassa gold mine to the Benso deposit which is the first
step in the development of the Hwini-Butre and Benso project. Construction of
the road to Benso is expected to be completed by the third quarter of 2008
following which haulage of high grade ore from Benso to the Wassa processing
plant is expected to commence. Blending the high grade Hwini-Butre and Benso
ore into the Wassa processing plant feed is expected to result in an increase
in the average gold production rate from Wassa to approximately 200,000 ounces
per annum with an associated reduction in cash operating costs. The
environmental permit for the project was granted in early October 2007.

    The cost to develop the Hwini-Butre and Benso project, which includes
road construction costs, mining equipment purchase and modifications to the
Wassa processing plant, is expected to be $50 million. This development cost
is expected to be funded from a portion of the proceeds from the recently
announced financing, which remains subject to market and other closing
conditions, including approval of the Toronto Stock Exchange and the American
Stock Exchange.

    Thomas Mair, Senior Vice President and CFO, commented: "We are pleased to
be advancing the Hwini-Butre/Benso project, and are happy to have potential
additional financing for the project. In addition, the retirement of our
existing, relatively higher cost, convertible notes will release us from
restrictive and burdensome covenants which, among other things, limited our
ability to finance our future growth with debt instruments, including
equipment financing."

    Company Profile

    Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea)
Limited and Golden Star (Wassa) Limited, which respectively own the
Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden
Star has an 81% interest in the currently inactive Prestea Underground mine in
Ghana, as well as gold exploration interests elsewhere in Ghana, in other
parts of West Africa and in the Guiana Shield of South America. Golden Star
has approximately 233 million shares outstanding.

    STATEMENTS REGARDING FORWARD-LOOKING INFORMATION: Some statements
contained in this news release are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that forward-looking statements are inherently uncertain and involve
risks and uncertainties that could cause actual results to differ materially.
Such statements include comments regarding the expected completion date of the
haul road, the expected production rate and reduction in costs at Wassa after
addition of Hwini-Butre and Benso ore, expected cost of development of the
Hwini-Butre and Benso project, source of funding for development, and benefits
of redemption of existing 6.85% convertible notes. Factors that could cause
actual results to differ materially include timing of and unexpected events
during development; variations in ore grade; variations in relative amounts of
refractory, non-refractory and transition ores; delay or failure to receive
government approvals; timing and availability of external financing on
acceptable terms; technical or permitting issues; and fluctuations in gold
price and costs. There can be no assurance that future developments affecting
the Company will be those anticipated by management. Please refer to the
discussion of these and other factors in our annual report on Form 10-K, as
amended, for the fiscal year ended December 31, 2006. While we may elect to
update the forecasts at any time, we do not undertake to update them at any
particular time or in response to any particular event. Investors and others
should not assume that any forecasts in this press release represent
management's estimate as of any date other than the date of this press
release.




For further information:

For further information: Golden Star Resources Ltd. Bruce Higson-Smith,
800-553-8436 Vice President Corporate Development or Anne Hite, 800-553-8436
Investor Relations Manager


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