Golden Star Accelerates Exercise of Paul Isnard Option

Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC) today announced it has entered into a Memorandum of Understanding ("MOU”) with EURO Ressources S.A. ("EURO”), the main purpose of which is to restructure the 2004 Paul Isnard Option Agreement and provide the framework for the repayment of the approximate $3.5 million of debt and accrued interest owed to Golden Star. Additionally, Golden Star has granted EURO an option to purchase the "Additional Payment Rights” attached to the Rosebel Participation Right which was sold to EURO in 2004. The MOU is subject to the approval of the boards of directors of both companies and, where required, to the completion of definitive documentation. Bruce Higson-Smith, Vice President Corporate Development, said, "We are pleased to negotiate greater certainty for our rights in the Paul Isnard properties, the divestment of non-core Rosebel Additional Payment Rights, and the framework for the repayment by EURO of the outstanding debt and accrued interest owed by it to Golden Star. The sale of non-core assets and the debt and interest repayment could realize more than $7.5 million to Golden Star over the next few months.” "In addition,” continued Mr. Higson-Smith, "we are excited to be moving forward with the advancement of the Paul Isnard properties in French Guiana, the mineral potential of which is significant. Our Board of Directors has approved approximately $2.0 million of work including the commencement of a feasibility study in 2007 and we expect to award this project in the next few weeks.” PAUL ISNARD Under the terms of the 2004 Paul Isnard Option agreement, Golden Star could acquire 100% of the Paul Isnard properties, which incorporates eight mining leases and a number of exploration permits in French Guiana by spending $2.0 million and delivering a feasibility study by September 2007. In addition, Golden Star had agreed to set off $8.5 million of long term debt owed to Golden Star by EURO as a result of the restructuring of EURO in 2004. The MOU that the parties negotiated allows Golden Star to exercise the option without first completing the feasibility study and reduces the expenditure requirement to about $1.6 million. Golden Star has, however, covenanted to do a feasibility study within 12 months of the signing of the MOU, or by March 2008 and, if feasible, commence commercial production within 30 months of the signing of the MOU, or about September 2009. We have also modified the terms of the royalty so that EURO will receive 10% of the incremental revenue from the project above a $400 per ounce Gold price, for the first 2 million ounces of future production, rather than the net smelter royalty of about 2% previously agreed. For gold production in excess of 2 million ounces and up to a cap of 5 million ounces, the royalty will reduce to 5% of the incremental revenue above a $400 per ounce gold price. Previous resource estimation work to NI 43-101 standards carried out by RSG Global (now Coffey International) on the Paul Isnard properties in 2003 resulted in an unconstrained Inferred Mineral Resource of 43 million tonnes grading 1.7 grams per tonne (g/t), assuming a cut-off grade of 1 g/t. In 2006, RSG Global updated the resource estimate for one of the deposits on the Paul Isnard properties. This work estimated an Inferred Mineral Resource of 10.2 million tonnes grading 1.7 g/t constrained within a $560 per ounce of gold optimized pit, further details of which are set out in our most recent Form 10-K filing. ROSEBEL ADDITIONAL PARTICIPATION RIGHTS The MOU also gives EURO the option to purchase, for $4.15 million in cash by June 30, 2007, certain Additional Payment Rights connected with the Participation Right that EURO holds in IAMGold’s Rosebel mine. The holder of the Additional Participation Rights is entitled to payments of $2.50 per ounce of production from the Rosebel mine for production between 2 million and 4 million ounces and $5.00 per ounce from 4 million to 7 million ounces. The option granted to EURO can be extended through to December 31, 2007 at a cost of $250,000 per quarter. DEBT REPAYMENT In addition, the MOU sets out a framework and timeline for the repayment by EURO of approximately $3.5 million of debt and accumulated interest that EURO owes to Golden Star. COMPANY PROFILE Golden Star holds a 90% equity interest in 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. 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 $3.5 million receivable and the Additional Payment Rights on Gross Rosebel gold production, both payable by EURO. Factors that may cause future results or events to differ materially are adverse changes to the financial condition of EURO, the inability or failure of EURO to pay to Golden Star the receivable or the royalty, the failure of the Rosebel mine to produce gold with respect to which a royalty payment is due to EURO, the failure of IAMGold to pay royalties on Gross Rosebel production to EURO, and the results of exploration on the Paul Isnard properties. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of risk factors in our Form 10-K for 2006. Cautionary Note to US Investors Concerning Estimates of Inferred Mineral Resources This press release uses the term "inferred mineral resources.” We advise US investors that while this term is recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize it. "Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. US investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable.