Golden Star Starts Mining the Higher Grade SAK Pits at Its Wassa Gold Mine

Estimated proven and probable ore reserves in the SAK pits totaledapproximately 2.0 million tonnes at an average diluted grade of 1.59grams per tonne, using a gold price of $400 per ounce, as at December31, 2005. Commencing in the third quarter of 2006, the higher gradeSAK material is expected to have positively impact the average gradeprocessed at Wassa and to contribute to increased quarterly goldproduction and lower cash operating costs per ounce.

Peter Bradford, President and CEO, stated that, "Wassa has beennegatively impacted by lower than expected grades since commencingcommercial production in April 2005. While we continue to improve ourunderstanding of the reasons for the underperformance, we do expectgrades to trend higher as we access deeper portions of the pit. SAK isexpected to provide a further boost to the average grade. Based oncurrent knowledge, the SAK deposit is not large and therefore itspositive impact on grade is expected to be limited to the next 12-18months. However, in the longer term we expect that the Hwini-Butre andBenso deposits acquired through our acquisition of St Jude ResourcesLtd in late 2005 to provide a source of higher grade material.

"As at December 31, 2005," continued Mr. Bradford, "we estimatedthe combined undiluted measured and indicated mineral resource atHwini Butre and Benso to be 5.3 million tonnes at an average grade of4.53 grams per tonne. In addition, we reported a combined 1.1 milliontonnes of inferred mineral resource at an average grade of 3.50 gramsper tonne for Hwini-Butre and Benso. In 2006 we are investing $4.3million on the exploration, drilling and technical studies on thesedeposits. We expect to complete a feasibility study for theirdevelopment by December 2006."

In the second quarter the Wassa processing plant performed well inApril and May, achieving design throughput rates and availabilitiesand better than design recoveries. This was offset in June when apower outage resulted in several tanks being sanded which negativelyimpacted production rate and gold recovery for an approximate threeweek period. Total production at Wassa for the second quarter isexpected to be 21,806 ounces and cash operating costs per ounce areexpected to be improved relative to the first quarter.

The Company is also pleased to report that the Wassa Mine wasrecently named "the most improved mine in Ghana" for the past year bythe Ghanaian Environmental Protection Agency. This is a greatachievement for Wassa in its first year of operations and is testamentto the Company's commitment to health, safety, environmental andcommunity matters.

Company Profile

Golden Star holds a 90% equity interest in the Bogoso/Prestea andWassa open-pit gold mines in Ghana. In addition, Golden Star 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.

Cautionary Note to US Investors concerning estimates of Measuredand Indicated Mineral Resources This press release uses the terms"measured mineral resources" and "indicated mineral resources". Weadvise US investors that while those terms are recognized and requiredby Canadian regulations, the US Securities and Exchange Commissiondoes not recognize them. US investors are cautioned not to assume thatany part or all of the mineral deposits in these categories will everbe converted into mineral reserves.

Cautionary Note to US Investors concerning estimates of InferredMineral Resources This press release uses the term "inferred mineralresources". We advise US investors that while this term is recognizedand required by Canadian regulations, the US Securities and ExchangeCommission does not recognize it. "Inferred mineral resources" have agreat amount of uncertainty as to their existence, and greatuncertainty as to their economic and legal feasibility. It cannot beassumed that all or any part of an inferred mineral resource will everbe upgraded to a higher category. In accordance with Canadian rules,estimates of inferred mineral resources cannot form the basis offeasibility or other economic studies. US investors are cautioned notto assume that part or all of the inferred mineral resource exists, oris economically or legally mineable.

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 timing and duration of the mining and processing of SAKore, impacts on grade processed and cash operating costs per ounce,and the exploration, assessment, development, mining and processing ofother material including material from Hwini Butre and Benso, andsecond quarter production and cash operating costs at Wassa. Factorsthat could cause actual results to differ materially includevariations in ore grade, tonnes mined, crushed or milled; variationsin relative amounts of material type; the estimation of mineralresources; delay or failure to receive board or government approvalsand permits; timing and availability of external financing onacceptable terms; technical, permitting, mining or processing issues;and fluctuations in gold price and costs. There can be no assurancethat future developments affecting the Company will be thoseanticipated by management. Please refer to the discussion of riskfactors in our Form 10-K for 2005. The forward looking statementscontained in this press release constitute management's currentestimates, as of the date of this press release, with respect to thematters covered thereby. We expect that these estimates will change asnew information is received and that actual results will vary fromthese estimates, possibly by material amounts. While we may elect toupdate these estimates at any time, we do not undertake to update anyestimate at any particular time or in response to any particularevent. Investors and others should not assume that any forward lookingstatements in this press release represent management's estimate as ofany date other than the date of this press release.