Golden Star Updates Operating and Development Successes

    Mining Writers/Business Editors

    DENVER--(BUSINESS WIRE)--March 31, 2005--Golden Star Resources Ltd. (AMEX:GSS) (TSX:GSC) today announced that the processing plant at its Wassa Gold mine in Ghana is now operating at its design capacity of 10,000 tonnes of ore per day. The Company also reported on progress to date in 2005 on its other operating and growth activities, including progress at its Bogoso/Prestea mine.
    Peter Bradford, President and Chief Executive Officer, commenting on progress, said: "The new year has marked a turning point for Golden Star, with a number of the outstanding issues we had toward the end of 2004 having been resolved or advanced. Wassa is now operating at design throughput, processing a combination of reclaimed heap leach material and crushed ore. Ore has been made available ahead of plan from the early commencement of mining and commissioning of the crushing system. Mining and crushing were not originally intended to begin until the second year of the project but we brought this forward so that we have a second and higher grade source of ore."

    Wassa Gold Production Increasing Steadily

    Wassa shipped 3,600 ounces, 4,200 ounces, and 7,200 ounces for sale in January, February and March, respectively. In consultation with its auditors, Golden Star will decide at what point during the first quarter to declare Wassa as being in commercial production. Revenues and costs will thereafter flow through the income statement versus being capitalized. Monthly throughput, grade and recovery continue to improve steadily and the production guidance of between 100,000 to 120,000 ounces for 2005 remains unchanged.

January February March Total (Actual) (Actual)(Estimate)(Estimate) ---------------------------------------------------------------------- Tonnes milled 194,638 193,485 290,000 678,123 ---------------------------------------------------------------------- Feed grade (grams/tonne) 0.70 0.80 1.00 0.86 ---------------------------------------------------------------------- Recovery (%) 86.4 91.2 94.8 92.0 ---------------------------------------------------------------------- Gold ounces shipped for sale 3,600 4,200 7,200 15,000 ----------------------------------------------------------------------

    NOTE: Estimate for March based on actual production for first 30 days and estimated production for the last day of the month.

    Wassa National Grid Connection in Second Quarter

    The standby powerhouse was upgraded to supply sufficient power to Wassa while the powerline connection to the national grid is being completed. Although completion was not scheduled until mid-year, we have made good progress and the work is currently ahead of schedule and on budget. It is now expected to be connected earlier in the second quarter.

    Major Cost Savings from National Grid Power

    When connected, power from the national grid is expected to cost $0.06 per kilowatt hour (kWh), compared to $0.18 per kWh for diesel generated power at the current fuel price of $0.72 per liter. This difference should equate to a cost saving of approximately $2.00 per tonne of ore processed, or up to $80 per ounce of gold produced. Each $0.10 per liter change in the diesel price impacts power costs by $0.35 per tonne, or $14 per ounce.

    Solid Progress at Bogoso/Prestea

    At Bogoso/Prestea, production has improved steadily, with a little over 39,200 ounces being shipped for sale in the quarter. As previously indicated, we expect operating cash costs in the first quarter to remain at similar levels to the last two quarters. A number of the cost reduction measures that have now been implemented, including a voluntary redundancy program to reduce manning levels by about 200, or 20%, are not expected to have a significant impact on costs until the second quarter.

    Sulfide Expansion Project on Track

    Permitting of the sulfide expansion project for the Bogoso processing plant, which incorporates the BIOX(R) project, continues and the environmental impact statement was filed in February. The required permits are expected to be obtained in the second quarter. In parallel, detailed design and engineering for the project continues and the first long-lead-time items were ordered.
    Certain changes have been made to the sulfide expansion project design to accommodate future processing of oxide ore in parallel to sulfide, partly to reduce the loss of production during the commissioning phase of the sulfide circuit. The oxide circuit will also accommodate future mining of oxide ores from the southern section of the Prestea property and from the Dunkwa property north of Bogoso.
    Discussions on debt financing for the sulfide expansion project continue and are expected to be finalized in the second quarter in parallel with permitting. A firm commitment to the expansion project will be made once permitting and financing are finalized.
    Bogoso processing capacity is being expanded from 1.5 million tonnes to 3.5 million tonnes per year. After Wassa, this is the main component of the increase in estimated total production in 2007 to between 375,000 ounces and 425,000 ounces for that year.

    Exploration and Development

    Exploration activities for 2005 have commenced with a budgeted commitment of $15 million. The priority will be to drill beneath the existing sulfide pits at Bogoso with the objective of defining those portions of the inferred resources that can be reclassified as reserves for the planned sulfide expansion project. Drilling will also be carried out on the Dunkwa property, north of Bogoso, where Golden Star controls 45 kilometers of strike length on the Ashanti Trend. The objective is to locate new deposits within this highly prospective ground, which has not been drilled since the 1990s.
    Greenfield exploration projects have been reviewed to identify the work required to bring these to key decision points in 2005 in order to concentrate effort and funds where there is the greatest chance of locating new deposits capable of future development. An essential part of exploration is determining which projects have been adequately tested and in this light a decision was made in March to exit the Mininko joint venture in Mali. The deferred exploration costs for Mininko of about $1.1 million will be expensed in the first quarter, negatively impacting earnings.

    Improved Performance Expected in Subsequent Quarters

    "The marginal but welcome improvement in production in the first quarter belies significant progress in all areas. These successes are expected to improve results in subsequent quarters," concluded Peter Bradford.

    Company Profile

    Golden Star holds a 90% equity interest in both the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, the Company has an 81% beneficial interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America. Golden Star has approximately 142 million common 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 establishment and estimates of mineral reserves and non-reserve mineral resources, the recovery of any mineral reserves, planned operations, timing and effect of the connection of Wassa to the national power grid, anticipated funding, grade, processing capacity, results of feasibility and technical studies, development, costs, expenditures, and exploration. Factors that could cause actual results to differ materially include timing of and unexpected events during exploration; variations in ore grade; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive board or 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 Form 10-K for 2004. 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.

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CONTACT: Golden Star Resources Ltd. Peter Bradford, 303-894-4613 or Allan Marter, 303-894-4631 or Golden Star Resources Ltd., 800-553-8436

KEYWORD: COLORADO INTERNATIONAL CANADA AFRICA/MIDDLE EAST LATIN AMERICA INDUSTRY KEYWORD: BANKING MINING/METALS SOURCE: Golden Star Resources Ltd.

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