Golden Star Announces Prestea Underground Exploration Results

Based on Golden Star's 2005 exploration program, resourceestimation by SRK Consulting resulted in an increase in InferredResources at year-end 2005 for the Prestea Underground Mine to a totalof 6.1 million tonnes at an average grade of 8.1 grams per tonne gold,which compares with 1.6 million tonnes at an average grade of 8.6grams per tonne Gold at year-end 2004. As defined, due to the level ofevidence available, these Inferred Resources cannot form the basis offeasibility or other economic studies. Our 2004 resource was based onmining blocks laid out by the previous operators. Although theseresources were historically classified as reserves, Golden Star hadnot at that stage verified the accuracy of the data and has not yetdemonstrated the economic feasibility or the capital costs orconstruction periods required for reopening the mine. The previoustonnage and grade estimate based on the historic blocks and presentedin 2004 was reviewed by SRK Consulting. An initial feasibility studyis expected by the end of 2006 following the current year'sexploration program.

Golden Star's 2005 exploration activities at the PresteaUnderground focused on:

-- defining decline-accessible resources in the Main Reef to the south of and below the active Plant-North open pit;

-- delineating West Reef resources between 17 and 24 Levels (approximately 600 to 850 meters below surface) accessible from the Central Shaft; and

-- delineating accessible Central Shaft resources in the Main Reef between 30 and 35 Levels (approximately 1,150 to 1,400 meters below surface).

We have been successful in defining inferred resources on thefirst two targets. The deeper program was delayed because of flooding,caused by heavy rains in 2004 and exacerbated by a power interruptionand illegal mining activities. The pumping system has now beenupgraded and the lower levels have been pumped out and drilling on 30Level is expected to commence in the second quarter of 2006.

Prestea Main Reef

The Main Reef Inferred Resources to the south of and beneath thePlant-North pit have been estimated by SRK Consulting at 4.2 milliontonnes grading 7.1 grams per tonne. These estimates are based onsurface and underground drilling carried out by Golden Star combinedwith certain drilling results from the previous operator, JCI Limited,which have been validated by our work. Significant intersections aretabulated below.
Significant Intersections, Prestea Main Reef

Hole ID Easting Northing Elevation Type Au True Horizontal
(meters) (meters) (meters) g/t Thickness Thickness
(meters) (meters)
----------------------------------------------------------------------
PNDD001 12,566 10,450 4,915 DD 14.7 1.9 2.1
----------------------------------------------------------------------
PNDD002 12,561 10,516 4,911 DD 16.2 3.3 3.5
----------------------------------------------------------------------
PNDD005 12,547 10,330 4,908 DD 9.1 2.8 2.9
----------------------------------------------------------------------
PNDD015 12,631 10,978 4,929 DD 11.2 2.8 3.0
----------------------------------------------------------------------
PNMET001 12,658 11,050 4,971 DD 18.9 1.8 1.9
----------------------------------------------------------------------
PNMET004 12,670 11,075 4,985 DD 17.0 3.0 3.2
----------------------------------------------------------------------
PNMET007 12,595 10,621 4,967 DD 50.2 1.8 1.9
----------------------------------------------------------------------
PNMET011 12,637 10,501 5,026 DD 17.8 2.8 3.0
----------------------------------------------------------------------
PNMET012 12,608 10,500 4,991 DD 14.0 3.9 4.2
----------------------------------------------------------------------
PNMET013 12,597 10,598 4,964 DD 11.7 2.4 2.5
----------------------------------------------------------------------
PNMET016A 12,575 10,500 4,941 DD 20.7 1.9 2.1
----------------------------------------------------------------------
PNMET018 12,620 10,325 5,019 DD 10.1 2.9 3.1
----------------------------------------------------------------------
PNMET019 12,579 10,450 4,936 DD 14.7 1.7 1.8
----------------------------------------------------------------------
PNMET024 12,636 10,575 5,028 DD 9.3 2.8 3.0
----------------------------------------------------------------------
PNMET025 12,642 10,525 5,037 DD 7.2 2.0 2.2
----------------------------------------------------------------------
PNMET026 12,610 10,521 4,997 DD 15.8 1.9 2.0
----------------------------------------------------------------------
PNMET038 12,659 11,162 4,961 DD 12.3 1.9 2.0
----------------------------------------------------------------------
PNUGDD004 12,538 10,597 4,877 DD 9.9 1.9 2.0
----------------------------------------------------------------------
PNUGDD013 12,542 10,326 4,900 DD 11.4 2.4 2.5
----------------------------------------------------------------------
UC1013 12,464 10,306 4,777 UDD 8.2 3.8 4.0
----------------------------------------------------------------------
UC1017 12,383 10,419 4,581 UDD 72.4 2.5 2.7
----------------------------------------------------------------------
UC10-216N1 12,436 10,339 4,681 UDD 9.1 4.0 4.2
----------------------------------------------------------------------
UC6-201S2 12,506 9,942 4,885 UDD 7.0 6.0 6.4
----------------------------------------------------------------------
UC6-201S4 12,515 9,987 4,888 UDD 8.1 4.2 4.5
----------------------------------------------------------------------
UC8-207N1 12,477 10,129 4,777 UDD 20.5 4.4 4.7
----------------------------------------------------------------------
UC8-209N3 12,479 10,165 4,768 UDD 13.1 3.5 3.7
----------------------------------------------------------------------
UC8-216N3 12,480 10,356 4,779 UDD 10.9 4.1 4.3
----------------------------------------------------------------------
UC8-219N1 12,481 10,416 4,773 UDD 8.7 5.9 6.2

DD -- surface diamond drill holes, UDD -- underground diamond drill
holes

Prestea West Reef

The West Reef target between 17 and 24 Levels has been testedusing access from the existing underground infrastructure. TheInferred Resource estimate was based on Golden Star's undergrounddiamond drilling and diamond-saw channel sampling over the past threeyears. This target, although narrow, is often characterized by gradesexceeding one ounce per ton (34 grams per tonne). It has been testedbetween 17 and 24 Levels and we are currently testing the down-plungeextension between 24 and 30 Levels. The first few holes from 24 Levelvisually indicate the zone continues down plunge and ranges from about0.6 meters to 1.5 meters width, with visible gold being observed. SRKConsulting's estimate for the West Reef is an Inferred Resource of 0.9million tonnes at an average grade of 12.6 grams per tonne of gold.Significant results are tabulated below.
Significant Intersections, Prestea West Reef

Hole ID Easting Northing Elevation Type Au True Horizontal
(meters) (meters) (meters) g/t Thickness Thickness
(meters) (meters)
----------------------------------------------------------------------
17WR_02a 11,942 8,036 4,467 CH-saw 11.3 0.9 1.0
----------------------------------------------------------------------
17WR_03a 11,942 8,030 4,467 CH-saw 129.7 1.2 1.3
----------------------------------------------------------------------
17WR_04a 11,940 8,023 4,467 CH-saw 32.4 0.8 0.9
----------------------------------------------------------------------
17WR_05a 11,939 8,019 4,467 CH-saw 9.6 1.0 1.1
----------------------------------------------------------------------
17WR_06a 11,940 8,016 4,467 CH-saw 167.7 0.9 1.0
----------------------------------------------------------------------
17WR_07a 11,933 7,994 4,466 CH-saw 49.2 2.1 2.2
----------------------------------------------------------------------
17WR_08a 11,932 7,989 4,466 CH-saw 84.9 2.3 2.5
----------------------------------------------------------------------
17WR_09a 11,931 7,979 4,466 CH-saw 31.2 2.1 2.3
----------------------------------------------------------------------
17WR_10a 11,928 7,968 4,466 CH-saw 64.4 1.9 2.0
----------------------------------------------------------------------
17WR_12a 11,924 7,942 4,466 CH-saw 168.7 1.3 1.4
----------------------------------------------------------------------
17WR_13a 11,921 7,924 4,465 CH-saw 179.2 1.1 1.2
----------------------------------------------------------------------
17WR_14a 11,921 7,914 4,466 CH-saw 150.0 0.7 0.7
----------------------------------------------------------------------
17WR_15 11,920 7,907 4,466 CH-saw 9.5 1.0 1.1
----------------------------------------------------------------------
17WR_16 11,919 7,899 4,465 CH-saw 98.5 0.8 0.8
----------------------------------------------------------------------
17WR_27 11,910 7,805 4,465 CH-saw 8.2 2.0 2.1
----------------------------------------------------------------------
17WR_28 11,911 7,783 4,465 CH-saw 11.9 1.0 1.0
----------------------------------------------------------------------
17WR_30 11,913 7,768 4,466 CH-saw 20.9 1.0 1.0
----------------------------------------------------------------------
17WR_32 11,915 7,758 4,466 CH-saw 35.6 1.4 1.5
----------------------------------------------------------------------
17WR_33 11,914 7,753 4,467 CH-saw 26.6 1.2 1.2
----------------------------------------------------------------------
17WR_34 11,914 7,747 4,466 CH-saw 17.2 0.8 0.8
----------------------------------------------------------------------
UC1027 11,898 7,898 4,426 UDD 16.9 2.5 2.6
----------------------------------------------------------------------
UC1032 11,883 7,668 4,428 UDD 3.2 3.7 4.0
----------------------------------------------------------------------
UC17-277S1 11,902 8,230 4,357 UDD 22.4 1.9 2.0
----------------------------------------------------------------------
UC17-285S1 11,852 8,087 4,303 UDD 5.6 4.0 4.2
----------------------------------------------------------------------
UC17-285S2 11,881 8,090 4,353 UDD 6.0 5.1 5.4
----------------------------------------------------------------------
UC17-287S1 11,891 8,020 4,384 UDD 12.0 2.1 2.3
----------------------------------------------------------------------
UC17-287S3 11,812 7,944 4,236 UDD 27.6 1.8 2.0
----------------------------------------------------------------------
UC17-287S4 11,892 7,980 4,393 UDD 50.9 3.5 3.8
----------------------------------------------------------------------
UC17-287S6 11,873 8,039 4,353 UDD 33.5 1.1 1.2
----------------------------------------------------------------------
UC17-287S7 11,895 8,039 4,384 UDD 115.9 1.6 1.7
----------------------------------------------------------------------
UC17-287S8 11,868 8,002 4,350 UDD 70.4 0.7 0.7
----------------------------------------------------------------------
UC17-290S2 11,900 7,948 4,417 UDD 9.4 2.9 3.0
----------------------------------------------------------------------
UC17-293S1 11,877 7,902 4,372 UDD 11.2 1.1 1.1
----------------------------------------------------------------------
UC17-297S2 11,898 7,790 4,426 UDD 12.2 2.9 3.1

CH-saw -- diamond-saw channel sample, UDD -- underground diamond drill
holes

The above tables summarize the significant intersections to datefrom our 2005 exploration drilling program. Full details of the drillresults, together with a location map and longitudinal sections, areprovided on the Company's website at www.gsr.com.

The total Inferred Resources of 6.1 million tonnes grading 8.1grams per tonne of gold also include blocks outside the areasdescribed above that were reviewed by SRK which total 1.0 milliontonnes at an average grade of 8.7 grams per tonne of gold. Theseblocks were previously classified as proven and probable reserves bythe previous operator and have been downgraded to inferred resourcesby Golden Star.

Excluding care and maintenance costs, we have budgetedapproximately $3 million for our continued exploration of the PresteaUnderground in 2006. The program will be a continuation of the 2005work, and is expected to include approximately 40,000 meters ofunderground diamond drilling and 7,000 meters of surfacereverse-circulation drilling. The completion of this drilling willenable the preparation of a study, which is expected to be completedby the end of 2006 relating to the potential re-opening of the mine.Underground workings can currently be accessed via two shafts, onenear the town of Prestea and a second approximately four kilometers tothe southwest.

Prestea Underground has produced approximately nine million ouncesof gold during the last 120 years, the second highest production ofany mine in Ghana. Records indicate production between 1912 and 1991totaled 19.6 million tonnes at an average fully recovered grade of11.2 grams per tonne, yielding seven million ounces of gold duringthis 80-year period. Historical production from the Main Reefencompassed 7,000 meters in strike length and 1,400 meters down dip.

Previous underground operations ceased in early 2002, following anextended period of low gold prices. In March 2002, we entered into ajoint-venture agreement with the former owner to explore and evaluatethe remaining potential of the underground operations. Our 90% ownedsubsidiary has a 90% interest in the Prestea Underground, givingGolden Star an 81% beneficial interest.

Company Profile

Golden Star holds a 90% equity interest in the Bogoso/Prestea andWassa open-pit gold mines in Ghana. In addition, the Company has an81% interest in the currently inactive Prestea Underground mine inGhana as well as gold exploration interests elsewhere in Ghana, inother parts of West Africa and in the Guiana Shield of South America.

Note regarding Canada's National Instrument 43-101: The statedInferred Minerals Resources have been prepared in accordance withCanada's NI 43-101, Standards of Disclosure for Mineral Projects. Thequalified person responsible for the preparation of the statement ofInferred Mineral Resources is S. Mitchel Wasel, Golden Star'sExploration Manager for Ghana.

Cautionary Note to U.S. Investors concerning estimates of InferredMineral Resources: U.S. investors are advised that while the term"inferred mineral resources" is recognized and required by Canadianregulations, the United States Securities and Exchange Commission doesnot recognize it. "Inferred mineral resources" have a great amount ofuncertainty as to their existence, and great uncertainty as to theireconomic and legal feasibility. It cannot be assumed that all or anypart of an inferred mineral resource will ever be upgraded to a highercategory. Under Canadian rules estimates of inferred mineral resourcescould not form the basis of feasibility or other economic studies.U.S. investors are cautioned not to assume that part or all of theinferred mineral resource exists, or is economically or legallymineable.

Statements Regarding Forward-Looking Information: Some statementscontained in this news release are forward-looking statements withinthe meaning of the Private Securities Litigation Reform Act of 1995.Investors are cautioned that forward-looking statements are inherentlyuncertain and involve risks and uncertainties that could cause actualresults to differ materially. Such statements include commentsregarding the expected completion of a feasibility study by the end of2006 and planned exploration activities in 2006. Factors that couldcause actual results to differ materially include timing of andunexpected events during exploration, construction and start-up;variations in ore grade; variations in relative amounts of refractory,non-refractory and transition ores; delay or failure to receive boardor government approvals; timing and availability of external financingon acceptable terms; technical or permitting issues, and fluctuationsin gold price and costs. There can be no assurance that futuredevelopments affecting the Company will be those anticipated bymanagement. Please refer to the discussion of these and other factorsin our Form 10-K for 2004, as amended. The Form 10-K for 2005 isexpected to be filed by mid-March.