Golden Star Reports Third Quarter 2007 Results and Achieves Record Gold Production



    DENVER, November 6 /CNW/ - Golden Star Resources Ltd. (AMEX:   GSS)(TSX:
GSC) today announced a net loss of $(12.7) million, or $(0.054) per share, for
the third quarter of 2007. All currency in this news release is expressed in
U.S. dollars, unless otherwise noted. The Company will host a live webcast and
conference call to discuss its quarterly results on Wednesday, November 7, at
11:00 a.m. ET. To access the webcast and conference call, go to the home page
of the Company's website, www.gsr.com.

    Peter Bradford, President and CEO, said, "Despite the difficulties
experienced during the ramping up of our new Bogoso sulfide processing plant,
we achieved record gold production for the Company in the third quarter.
During the fourth quarter and going forward, we expect to further optimize the
sulfide processing plant to achieve higher overall throughput rates and
recoveries, which we expect to lead to increased gold production and lower
operating costs per ounce. Ghana has experienced a particularly wet rainy
season and flooding this year which, on the positive side, has resulted in a
significant increase in the level of the Akosombo hydroelectric dam and
strengthened power supply in the country. However, on the negative side, the
heavy rains have impeded our mining and processing activities."

    THIRD QUARTER 2007 HIGHLIGHTS

    --  Record quarterly gold sales of 70,143 ounces compared to 57,855
ounces of gold sales for the third quarter of 2006, a 21.2% increase.

    --  Bogoso sulfide processing plant achieved design throughput rate by
the end of the third quarter. The next hurdle is to achieve design gold
recovery rates by the end of the year.

    --  Increased gold sales at Wassa to 29,625 ounces compared to gold sales
of 23,244 ounces for the third quarter of 2006. This represents a 27% increase
in ounces of gold sold.

    --  Development of the Hwini-Butre and Benso projects has commenced with
construction of the haul road to Benso having started in October 2007.

    --  The Ghana power authority ended the power restrictions due to the
above-normal rains experienced in Ghana.

    --  Golden Star is pursuing a listing on the Ghana Stock Exchange in an
effort to allow participation in the Company by Ghanaian financial
institutions and local Golden Star employees, build relationships in Ghana and
support the local stock exchange.

    FINANCIAL AND OPERATIONAL SUMMARY FOR THE THIRD QUARTER

    Third quarter of 2007 net loss was $(12.7) million or $(0.054) per share
as compared to a net income of $1.5 million or $0.007 per share for the third
quarter of 2006. Increases in operating costs at both Wassa and the Bogoso
oxide processing operation, plus the added costs of the new Bogoso sulfide
processing plant combined to off-set the higher gold prices and higher gold
output.

    Net loss for the first nine months of 2007 was $(18.6) million or
$(0.082) per share as compared to a net income of $33.9 million or $0.164 per
share for the first nine months of 2006. The major factor contributing to the
loss in the first nine months of 2007 was lower than expected gold sales from
the Bogoso sulfide processing plant. While gold output and realized gold
prices in the third quarter of 2007 improved over the third quarter of 2006,
increases in operating costs at both Wassa and at the Bogoso oxide processing
plant plus the added costs of the Bogoso sulfide processing plant combined to
offset the higher gold prices and gold output. In addition, lower ore grades
and planned maintenance at the oxide plant in May 2007 contributed to this
loss. Relative to 2006, the 2007 results were lower due to the capital gains
totaling $51.2 million from the sale of our investments in Moto Goldmines
Limited and EURO Ressources S.A.

    

                                  For the three          For the nine
    SUMMARY OF FINANCIAL           months ended          months ended
     RESULTS                      September 30,         September 30,
                              --------------------------------------------
                                            2006                  2006
                                 2007    (restated)    2007    (restated)
    ----------------------------------------------------------------------
    Gold sold (oz)                 70,143     57,855 158,263(2)    148,001
    Price realized ($ per
     ounce)                           681        622        668        605
    Cash operating cost ($ per
     ounce)(1)                        687        410        612        461
    Royalties ($ per ounce)            20         18         20         17
    Total cash cost ($ per
     ounce)                           707        428        632        478
    Total revenues (in
     thousands $)                  47,752     35,966    105,731     89,607
    Cash flow from operations
     (in thousands $)               8,391      7,323      4,398         80
    Net income/(loss) (in
     thousands $)                (12,709)      1,533   (18,563)     33,940
    Net income/(loss) per
     share - basic ($)            (0.054)      0.007    (0.082)      0.164
    Weighted average shares
     outstanding (in millions)      233.2      207.3      227.6      207.4
    ----------------------------------------------------------------------
    

    (1) See note on non-GAAP financial measures below.

    (2) Excludes 7,803 ounces from the new sulfide plant in the first six
months of 2007. These ounces are not included in sales revenues.

    CASH AND CASH FLOW

    Our cash, cash equivalents and short term investments totaled $20.8
million at September 30, 2007, down from $27.1 million at the end of December
2006. Operations provided $8.4 million in the third quarter and $4.4 million
of cash in the first nine months of 2007, compared to $7.3 million and $80,000
in the same periods of 2006. A $15.3 million increase in payables, offset by a
$8.2 million increase in inventories were the major factors contributing to
the cash provided year-to-date. Most of the inventory increases in 2007 are
related to increases in ore stockpiles and parts and supplies for the Bogoso
sulfide processing plant.

    A total of $96.4 million was spent on capital projects during the first
nine months of 2007. Approximately $55.2 million was spent on the Bogoso
Sulfide Expansion Project including $44.3 million for construction costs, $6.4
million for pre-production waste stripping, $1.3 million for mining equipment
and $3.2 million of capitalized interest.

    Liquidity Outlook

    We anticipate that the Wassa mine will continue to generate cash from
operations in the fourth quarter of 2007 and significant improvements in plant
throughput and gold recovery are expected to come from the Bogoso sulfide
processing plant. These factors, combined with our current cash position and
the equipment debt facility, should enable Golden Star to cover all its
capital and operating needs through the end of the year.

    In late October, we announced a proposed offering of $125 million of
convertible senior unsecured debentures. The debentures will bear interest at
a rate of 4.0% per annum, and are, subject to certain limitations, convertible
into Golden Star common shares at a conversion rate of 200.0 shares per $1,000
principal amount of notes (equal to an initial conversion price of
approximately $5.00 per share), subject to adjustment in certain
circumstances. Golden Star intends to use $61.76 million of the net proceeds
of the offering to repay its existing $50 million aggregate principal amount
6.85% senior convertible notes due April 15, 2009, and the balance for
property development (including the construction of the Hwini-Butre and Benso
operations) and for general corporate purposes. The sale of the debentures is
expected to close on or about November 8, 2007, subject to the satisfaction of
certain closing conditions and any necessary regulatory approvals.

    Efforts were initiated in the third quarter of the year to list our
common shares on the Ghana stock exchange with the intention of facilitating
investment in Golden Star by local Ghanaians and employees of the Company and
supporting the local exchange.

    BOGOSO/PRESTEA

    
                               For the three months   For the nine months
                                ended September 30,   ended September 30,
                               --------------------- ---------------------
        OPERATING RESULTS         2007       2006       2007       2006
    -------------------------- ---------- ---------- ---------- ----------
    Ore mined (000's t)--
     Refractory                       373          -        534          -
    Ore mined (000's t)--Non
     refractory                       275        399        741      1,123
    Total ore mined (000's t)         648        399      1,275      1,123
    Waste mined (000's t)           4,643      1,307     13,182      5,756
    Plant feed--Refractory
     (000's t)                        568          -        877          -
    Refractory grade--(g/t)           2.7          -        2.7          -
    Recovery--Refractory (%)         40.9          -       43.9          -
    Plant feed--Non refractory
     (t)                              388        368      1,236      1,073
    Non refractory grade--
     (g/t)                            2.1       4. 5        2.0        3.8
    Recovery--Non refractory
     (%)                             78.8       62.3       72.4       59.3
    Gold sold (oz)--Refractory     14,999          -  14,999(1)          -
    Gold sold (oz)--Non
     refractory                    25,519     34,611     57,150     78,739
    Total gold sold (oz)           40,518     34,611  72,149(1)     78,739
    

    (1) Excludes 7,803 ounces from the new sulfide plant in the first six
months of 2007. These ounces are not included in sales revenues.

    An operating margin loss of $(13.2) million was generated at
Bogoso/Prestea during the third quarter of 2007 on sales of 40,518 ounces of
gold, compared to an operating margin of $5.5 million on gold sales of 34,611
ounces for the third quarter of 2006. Costs associated with the operation of
the new Bogoso sulfide processing plant were incurred throughout the third
quarter but lower than expected recoveries from the sulfide flotation circuit
were not offset by the increased realized gold price. This situation is
expected to be substantially remedied during the fourth quarter of this year.

    Depreciation expense increased by $3.3 million in the third quarter of
2007 compared to the third quarter of 2006, mostly related to amortization and
depreciation expenses related to the new sulfide processing plant since its
start-up in July 2007.

    The Bogoso sulfide processing plant bio-oxidation circuit and
carbon-in-leach (CIL) systems were operating at design capacity at the end of
the third quarter of 2007. However, design difficulties with the sulfide
flotation circuit, which were substantially remedied by the end of the third
quarter, negatively impacted overall throughput, gold recovery and gold output
for the quarter. Additional modifications for the flotation circuit are
planned in the fourth quarter of this year and we anticipate being at, or
near, design recovery rates by the end of the year.

    WASSA

    
                               For the three months   For the nine months
                                ended September 30,   ended September 30,
                               --------------------- ---------------------
        OPERATING RESULTS         2007       2006       2007       2006
    -------------------------- ---------- ---------- ---------- ----------
    Total ore mined (000's t)         887        582      2,310      1,858
    Waste mined (000's t)           2,025      1,797      6,331      9,033
    Ore and heap leach
     materials processed
     (000's t)                        965        870      2,852      2,805
    Grade processed (g/t)             1.1        1.0        1.1        0.9
    Recovery (%)                     93.2       90.0       91.2       88.8

    Gold sold (oz)                 29,625     23,244     86,114     69,262
    

    Wassa generated an operating margin of $0.7 million in the third quarter
of 2007 on sales of 29,625 ounces of gold, compared to an operating margin of
$0.5 million on sales of 23,244 ounces of gold in the third quarter of 2006.
The improved operating margin was due to improved ore grades, higher plant
throughput and better recoveries. Cash operating costs and gold sold for the
quarter were higher than the third quarter of 2006. Notwithstanding the fact
that Wassa sold 6,381 more ounces of gold in the third quarter of 2007
compared to the third quarter of 2006, cash operating costs increased by $3.4
million to $14.6 million, offsetting the impact of the increased production.
These increased costs were due to mining 533,000 more tonnes of ore and waste,
and higher operating costs for labor, fuel, reagents and power. The 2007
result was also impacted, relative to 2006, by a higher depreciation,
depletion and amortization expense in 2007 as a result of the reduction of the
ounces in proven and probable reserves as at December 31, 2006.

    HWINI-BUTRE AND BENSO DEVELOPMENT

    We plan to mine the Hwini-Butre and Benso deposits as satellite sources
of ore to feed our Wassa processing plant. These new orebodies are expected to
increase the processed grade and gold output, extend the mine life and
decrease the average cash operating cost for the Wassa mine. Capital costs are
estimated to be approximately $50 million.

    Construction has commenced on the 52 kilometer access road to connect the
Benso deposits with the Wassa processing plant. We anticipate pre-stripping at
Benso to commence in 2008 with the first ore mined from the Benso property
being delivered to the Wassa processing plant in the third quarter of 2008.
Road construction between Wassa and the Hwini-Butre deposits is expected to
continue in 2009 with the first high grade ore from Hwini-Butre expected to be
mined and delivered to the Wassa processing plant in 2009.

    EXPLORATION

    At our Newmont-funded joint venture on the Saramacca project in Suriname,
drill targets have been identified and drill pads prepared. A drill rig is
being shipped to site and we expect to commence drilling in the fourth quarter
of 2007 and to complete 2,000 to 3,000 meters of drilling by the end of the
year. If drill results are positive, it is likely that the drilling programs
will continue into 2008. By the end of this year, Newmont will have spent
approximately $2 million on the project and we expect that they will continue
to fund the exploration into 2008. Newmont is required to spend $6 million on
the properties to earn a 51% interest at which point Golden Star will elect
whether to participate in the project as a 49% partner or be diluted.

    In French Guiana, the preliminary assessment study for the Paul Isnard
property is underway. The study is being conducted to determine whether a
portion of the mineral resource can be converted into upgraded categories. As
part of the study, portions of the mineralized intersection are being
resampled for both QA/QC purposes and to test for copper mineralization. In
addition, preliminary metallurgical and specific gravity determinations are
being completed and infill drilling on the current mineral resource is
expected to be carried out in the fourth quarter.

    In conjunction with the Paul Isnard assessment study, we have commenced a
VTEM program (deep penetrating airborne geophysics) across the entire
property. This survey is expected to be completed in the fourth quarter.
Preliminary results from the survey are encouraging with a very strong
conductive zone being defined in the vicinity of the known mineralized zone at
Paul Isnard and continuing to the west for several more kilometers in an area
not previously drill tested. The processing of the data from the survey is
expected to take several months and, once completed, this information will be
used to direct follow up drilling planned for 2008.

    Exploration in Ghana focused on drilling to upgrade Inferred Mineral
Resources at Wassa and Benso within the 2006 year-end mineral resource pit
shells. The drilling at Wassa has been completed and has confirmed the
Inferred Mineral Resource grades. Drilling at Benso has commenced and is
expected to be completed in the fourth quarter. Results from these drill
programs will be used to update our end-of-year mineral resource estimates for
these properties.

    At Manso and Chichiwelli, both part of the Hwini-Butre and Benso package,
evaluation of the main targets continued using RAB and RC drilling.
Preliminary results on both these concessions have been encouraging and the
step-out and infill drilling along this structure continues to demonstrate the
potential of this regional trend. Our understanding of the geology along this
eastern limb of the Ashanti gold belt is growing and we continue to define
good targets which we expect to drill test in the fourth quarter and well into
2008.

    The VTEM geophysical survey over approximately 40 kilometers of strike on
our Bogoso/Prestea property and our Pampe project was completed this quarter.
The data is currently being processed and we expect to have a useable product
in the first half of 2008 from which we expect to generate a number of deeper
sulfide mineralization drill targets along this highly prospective trend.

    At Prestea, we continue to test the underground structures. Previous
drilling tested the Footwall Reef and further drilling on this target is
scheduled in the fourth quarter of this year. These results will be
incorporated into the pre-feasibility study that is anticipated to be
completed early in 2008.

    Heavy rainfall and flooding hampered our exploration efforts at our Niger
and Sierra Leone projects, where we expect to recommence our exploration
activities once the water subsides. Our Goulagou and Rounga concessions in
Burkina Faso were recently optioned to Riverstone Resources Inc.

    GHANA POWER RESTRICTIONS

    Above-normal rainfall in recent months has had the effect of raising the
water level in the Akosombo reservoir which provides water for the operation
of the hydroelectric plant in Ghana. On October 1, 2007, the Ghana power
authority announced that power rationing in the country was to be
discontinued.

    In an effort to reduce our dependency on power from the national grid,
Golden Star, along with three other mining companies constructed a nominal 100
megawatt power plant in Ghana. In addition, we entered into a take-or-pay
agreement with a power provider who will construct at 20 megawatt power
station at the Bogoso site. It is anticipated that should electrical power
become scarce in the future, we would be able to self generate enough power to
meet all our needs.

    LOOKING AHEAD

    Our main objectives during the remainder of 2007 include:

    --  Continuance of design throughput rates and achievement of design gold
recovery rates at the new Bogoso sulfide processing plant during the fourth
quarter of 2007;

    --  Progress permitting of the Prestea South ore bodies to provide oxide
ore to the Bogoso oxide processing plant in the third quarter of 2008;

    --  Progress construction and development of Hwini-Butre and Benso
project; and

    --  Optimization of our mining and processing activities and costs at
Bogoso/Prestea and Wassa.

    We are estimating 2007 total gold production of 125,000 to 150,000 ounces
at Bogoso/Prestea at an average cash operating cost between $550 and $650 per
ounce. We anticipate that Wassa will produce a total of approximately 115,000
to 125,000 ounces during 2007 at an average cash operating cost between $430
and $480 per ounce. In 2008, we anticipate that gold production will be higher
and cash operating costs will be lower relative to 2007.

    FINANCIAL STATEMENTS

    The following information is excerpted from the Company's unaudited
consolidated financial statements and notes thereto contained in our Form
10-Q, which we intend to file with the SEC today and which is available on our
website.

    
    Balance Sheet
                                          As of               As of
                                    September 30, 2007  December 31, 2006
                                    ------------------  ------------------
    ASSETS
    CURRENT ASSETS
      Cash and cash equivalents               $20,764             $27,108
      Accounts receivable                       5,701               8,820
      Inventories (Note 4)                     53,948              45,475
      Future tax assets                           809                  --
      Deposits (Note 5)                         8,819               7,673
      Prepaids and other                          895               1,458
                                    ------------------  ------------------

         Total Current Assets                  90,936              90,534

    RESTRICTED CASH                             1,519               1,581
    AVAILABLE-FOR-SALE INVESTMENTS
     (Note 6)                                   3,817               1,457
    DEFERRED EXPLORATION AND
     DEVELOPMENT COSTS (Note 7)                27,064             167,983
    PROPERTY, PLANT AND EQUIPMENT
     (Note 8)                                 287,419              93,058
    MINING PROPERTIES (Note 9)                318,990             136,775
    CONSTRUCTION IN PROGRESS (Note
     10)                                           --             165,155
    FUTURE TAX ASSETS                          15,563               6,657
    OTHER ASSETS                                    1                 574
                                    ------------------  ------------------

         Total Assets                        $745,309            $663,774
                                    ------------------  ------------------

    LIABILITIES
    CURRENT LIABILITIES
      Accounts payable                        $25,291             $19,012
      Accrued liabilities                      31,530              25,516
      Fair value of derivatives
       (Note 12)                                  404                 685
      Asset retirement obligations
       (Note 13)                                2,217               3,064
      Current portion of future tax
       liability                                   --               1,450
      Current debt (Note 11)                   18,547              12,549
                                    ------------------  ------------------

         Total Current Liabilities             77,989              62,276

    LONG TERM DEBT (Note 11)                   69,701              73,786
    ASSET RETIREMENT OBLIGATIONS
     (Note 13)                                 17,153              16,034
    FUTURE TAX LIABILITY                       42,115              42,154
                                    ------------------  ------------------

         Total Liabilities                    206,958             194,250

    MINORITY INTEREST                           6,297               7,424
    COMMITMENTS AND CONTINGENCIES
     (Note 14)                                     --                  --

    SHAREHOLDERS' EQUITY
    SHARE CAPITAL (Note 15)
      First preferred shares,
       without par value, unlimited
       shares authorized. No shares
       issued and outstanding.                     --                  --
      Common shares, without par
       value, unlimited shares
       authorized. Shares issued
       and outstanding: 233,222,324
       at September 30, 2007
       207,891,358 at December 31,
       2006                                   608,711             524,619
    CONTRIBUTED SURPLUS                        12,273              10,040
    EQUITY COMPONENT OF CONVERTIBLE
     NOTES                                      2,857               2,857
    ACCUMULATED OTHER COMPREHENSIVE
     INCOME (Note 18)                           2,192                  --
    DEFICIT                                   (93,979)            (75,416)
                                    ------------------  ------------------

         Total Shareholders' Equity           532,054             462,100
                                    ------------------  ------------------

         Total Liabilities and
          Shareholders' Equity               $745,309            $663,774
                                    ------------------  ------------------
    

    Accompanying notes for the Balance Sheet can be found on the Form 10-Q
filed with the US SEC and on the Company's website.

    
    Statements of Operations

                                Three months ended,   Nine months ended,
                               --------------------- ---------------------

                                          Sept. 30,             Sept. 30,
                               Sept. 30,     2006    Sept. 30,     2006
                                  2007    (Restated)    2007    (Restated)
                               ---------- ---------- ---------- ----------
    REVENUE
    Gold sales                   $47,752    $35,996   $105,731    $89,607
                               ---------- ---------- ---------- ----------

    PRODUCTION EXPENSES
    Mining operations             49,577     24,724     99,971     70,816
    Depreciation, depletion
     and amortization             10,443      5,142     23,440     15,946
    Accretion of asset
     retirement obligation
     (Note 13)                       258        190        829        544
                               ---------- ---------- ---------- ----------

    Mine operating costs          60,278     30,056    124,240     87,306

       Mine operating margin     (12,526)     5,940    (18,509)     2,301

    OTHER EXPENSES, (GAINS)
     AND LOSSES
    Exploration expense              547        414      1,617      1,004
    General and
     administrative expense        2,623      1,887      9,995      7,040
    Abandonment and
     impairment of mineral
     properties (Note 7)           1,869      1,849      1,957      1.849
    Derivative mark-to-market
     (gain)/loss (Note 12)           (23)    (1,382)       443      9,346
    Foreign exchange
     (gain)/loss                     144      1,118        363     (2,339)
    Interest expense               2,018        487      2,870      1,448
    Interest and other income       (295)      (372)    (1,560)    (1,833)
    Royalty income                    --       (186)        --     (4,026)
    Gain on sale of
     investments                     242         --     (3,301)   (51,234)
                               ---------- ---------- ---------- ----------

       Income/(loss) before
        minority interest        (19,651)     2,125    (30,893)    41,046

    Minority interest                904       (515)     1,126       (443)
                               ---------- ---------- ---------- ----------

       Net income/(loss)
        before income tax        (18,747)     1,610    (29,767)    40,603
    Income tax
     (expense)/benefit (Note
     19)                           6,038        (77)    11,240     (6,663)
                               ---------- ---------- ---------- ----------

    Net income/(loss)           $(12,709)    $1,533   $(18,563)   $33,940
                               ---------- ---------- ---------- ----------

    OTHER COMPREHENSIVE
     INCOME
    Unrealized loss on
     available-for-sale
     investments                  (2,405)        --     (2,956)        --
                               ---------- ---------- ---------- ----------

    Comprehensive income
     /(loss)                    $(15,114)    $1,533   $(21,519)   $33,940
                               ---------- ---------- ---------- ----------

    Deficit, beginning of
     period                      (81,270)  (107,698)   (75,416)  (140,105)
                               ---------- ---------- ---------- ----------

    Deficit, end of period      $(93,979) $(106,165)  $(93,979) $(106,165)
                               ---------- ---------- ---------- ----------


    Net income/(loss) per
     common share - basic
     (Note 20)                   $(0.054)   $ 0.007    $(0.082)    $0.164
    Net income/(loss) per
     common share - diluted
     (Note 20)                   $(0.054)    $0.007    $(0.082)    $0.162
    Weighted average shares
     outstanding (millions)        233.2      207.3      227.6      207.4
                               ---------- ---------- ---------- ----------
    

    Accompanying notes for the Statement of Operations can be found on the
Form 10-Q filed with the US SEC and on the Company's website.

    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 and other
applicable securities laws. 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 availability of power, our alternative power supplies
and ability to meet our power needs in the event of future power rationing,
our 2007 and 2008 production and cash operating cost estimates, capital
expenditure estimates, planned exploration spending and activities, higher ore
grades at Wassa, anticipated higher recoveries anticipated at various sites,
anticipated closing date and the expected use of proceeds of the $125 million
convertible debenture offering, expected improvements to the flotation circuit
at the new Bogoso sulfide processing plant, the timing of achieving design
recovery rates at the Bogoso sulfide processing plant, the impact of the
Hwini-Butre and Benso deposits on the Wassa mine, anticipated commencement
dates of mining and production and development costs with respect to the
Hwini-Butre and Benso properties, plans for exploration, sources of and
adequacy of cash to meet capital and other needs in 2007 and completion of the
listing on the Ghana Stock Exchange. Factors that could cause actual results
to differ materially include timing of and unexpected events at the
Bogoso/Prestea oxide and sulfide processing plant; variations in ore grade,
tonnes mined, crushed or milled; variations in relative amounts of refractory,
non-refractory and transition ores; delay or failure to receive board or
government approvals and permits; timing and availability of external
financing on acceptable terms; technical, permitting, mining or processing
issues, changes in U.S. and Canadian securities markets, 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 Form 10-K for 2006, as
amended. The forecasts contained in this press release constitute management's
current estimates, as of the date of this press release, with respect to the
matters covered thereby. We expect that these estimates will change as new
information is received and that actual results will vary from these
estimates, possibly by material amounts. While we may elect to update these
estimates at any time, we do not undertake to update any estimate 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.

    Non-GAAP Financial Measures: In this news release, we use the terms
"total cash cost per ounce" and "cash operating cost per ounce." Total cash
cost per ounce is equal to total production costs less depreciation,
depletion, amortization and asset retirement obligation accretion divided by
the number of ounces of gold sold during the period. Cash operating cost per
ounce is equal to total cash costs less production royalties and production
taxes, divided by the number of ounces of gold sold during the period. We use
total cash cost per ounce and cash operating cost per ounce as key operating
indicators. We monitor these measures monthly, comparing each month's values
to prior period's values to detect trends that may indicate increases or
decreases in operating efficiencies. These measures are also compared against
budget to alert management to trends that may cause actual results to deviate
from planned operational results. We provide these measures to our investors
to allow them to also monitor operational efficiencies of our mines. We
calculate these measures for both individual operating units and on a
consolidated basis. Total cash cost per ounce and cash operating cost per
ounce should be considered as Non-GAAP Financial Measures as defined in SEC
Regulation S-K Item 10 and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP. There
are material limitations associated with the use of such non-GAAP measures.
Since these measures do not incorporate revenues, changes in working capital
and non-operating cash costs, they are not necessarily indicative of operating
profit or cash flow from operations as determined under GAAP. Changes in
numerous factors including, but not limited to, mining rates, milling rates,
gold grade, gold recovery, and the costs of labor, consumables and mine site
general and administrative activities can cause these measures to increase or
decrease. We believe that these measures are the same or similar to the
measures of other gold mining companies, but may not be comparable to
similarly titled measures in every instance.




For further information:

For further information: Golden Star Resources Ltd. Bruce Higson-Smith,
+1-800-553-8436 Vice President Corporate Development or Anne Hite,
+1-800-553-8436 Investor Relations Manager


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