Golden Star Resources Ltd.

Golden Star owns the Bogoso/Prestea mine that consists of mining and exploration concessions along the Ashanti Trend. In total the Bogoso/Prestea property covers a strike length of approximately 85 km.

The remaining 10% interest in the Bogoso/Prestea property is a carried interest owned by the Government of Ghana, with dividends payable after capital costs have been recovered.

Bogoso/Prestea is located in southwest Ghana approximately 300 kilometers west of the capital, Accra, and is accessible by sealed road.

Bogoso/Prestea lies within the Eburnean Tectonic Province (1,800-2,166 Ma) in the West African Precambrian Shield. The paleo-proterozoic rocks that comprise most of the West African craton and host the major gold mineralization in Ghana are subdivided into metasedimentary and volcanic rocks of the Tarkwaian and Birimian sequences.

The Birimian is composed largely of phyllites, schists, greywackes, volcanoclastics, and metavolcanic rocks (including lavas, pyroclastics, and some finer-grained metasedimentary rocks). Unconformably overlying the Birimian are the continental clastics of the Tarkwaian sequence. These clastics were derived from the weathering of Birimian rocks and granitic intrusions found within the Birimian.

The area is dominated by a major northeast-southwest trending structural fault zone referred to as the Ashanti Trend, which hosts the Prestea, Bogoso, Obuasi and Konongo gold deposits, among others. Parallel to the Ashanti Trend is the Akropong trend, which hosts the Ayanfuri deposit. The Akropong Trend is about 15 km west of the Ashanti Trend in the Bogoso region, and gradually converges with it, coalescing at Obuasi and forming the basis for the world class Obuasi deposit, owned and operated by AngloGold Ashanti Ltd.

Gold operations in the Tarkwaian sequence include the Teberebie, Abosso, Tarkwa and Iduapriem mines.

In the Bogoso area, the faulted contact zone is known as the "Main Crush Zone" and passes through the central part of the Bogoso Mine for its entire 18.5-kilometer concession length. The Main Crush Zone lies within a structural corridor that varies in width from 1,000 to 2,500 meters. Some 90% of the gold mined to date at the Bogoso Mine has come from the Main Crush Zone with the larger deposits being located at bends and junctions along this major fault. Additional faults and splays in the structural corridor may also be prospective for gold. The oxide ores tend to have fine-grained free gold that has been liberated during the weathering of pre-existing sulfides. Oxidation extends from surface down to the approximate elevation of the water table averaging 40 m below surface and ranging between 10 m and 60 m below surface. Below this, a transition zone of up to 20 meters of partially oxidized material directly overlies fresh sulfide mineralization.

The Prestea concession covers a 22 km stretch of the Ashanti Trend located immediately south of the Bogoso concession. Within the concession, the "Main Crush Zone" is comprised of an anastomosing network of thrust faults with three dominant structures trending northeasterly (40-60º). The three structures are often referred to in the old nomenclature as the Prestea Main, East and West reef zones. Sulfide gold mineralization is also associated with the hangingwall and footwall of these discrete quartz vein (reef) zones. In the Northern portion of the lease the deposits tend to be similar to the Bogoso lease deposits, whilst in the south they are more discrete vein systems. Further towards the south, in the vicinity of the Bondaye-Tuapem shafts, the structures split into two distinct zones running approximately parallel. Tuapem mineralization trends roughly along the same direction as the entire belt (32 degrees) gradually turning to an approximate N- S orientation running parallel to the Tarkwaian - Birimian contact. The second zone of mineralization, the Bondaye Zone in the vicinity of the Bondaye main shaft, swings N-S paralleling this lithological boundary.

In total some 11 million ounces have been mined to date from the Bogoso and Prestea properties.

Mining has been conducted at Prestea since 1873, primarily as an underground operation, with more than nine million ounces of gold recorded by the Ghana Chamber of Mines as having being produced during its more than 125-year history. From 1873 to 1965, the current Prestea concession comprised a number of different licenses operated by independent mining companies, which, in 1965, were amalgamated by the post-independence government. Production declined due to lack of sustained investment, and the mine operated at a loss. In 1985, the Government of Ghana secured a World Bank loan to rehabilitate the mines, but after three years of continued losses, the decision was taken to privatize the mines.

In 1994, JCI Limited won the privatization bid for participation in the Prestea mining operation. JCI made improvements to the productivities and efficiencies of the underground operation and carried out exploration programs and feasibility studies on the near surface resources amenable to open pit mining. However, owing to the declining gold price and continued financial losses, JCI closed down the Prestea underground mine in September 1998 and commenced a process to sell their rights in the project. The closure of the underground mine was opposed by the Prestea workforce who consequently formed Prestea Gold Resources ("PGR"), which was granted a permit by the Government of Ghana to run the mine in December 1998.

In June 2001, the Government of Ghana granted two separate leases for the Prestea concession. One lease, over the surface rights down to a depth of 200m below general ground elevation (an elevation of approximately 150m below sea level) was granted to BGL, and the second, for the underground mine below this level, was granted to PGR. In March 2002, BGL reached an agreement with PGR to form a joint venture, to be managed by BGL, for the assessment and future operations of the Prestea underground mine.

Gold was first commercially mined at Bogoso in the early 20th century. In 1935, high-grade oxide ore was mined from a series of open pits and from limited underground operation on the concession. Until its closure in 1955, this operation produced over 900,000 ounces of gold at an average recovered grade of 3.73 g/t.

Billiton International Metals BV took control of the Bogoso concession in the late 1980's, and completed the construction of mining and processing facilities in 1991. The plant was designed to process oxide ores by using conventional CIL technology at a design capacity of 1.36 million tonnes per year and to process sulfide ores by using flotation, fluid bed roasting and CIL technology at a design capacity of 0.9 million tonnes per year. Billiton encountered serious operational and mechanical difficulties with the fluid bed roaster and closed the flotation circuit and roaster in early 1994.

Following closure of the roaster, Billiton, by then owned by Gencor, focused the Bogoso operations on oxide ore until it sold its interest in the mine to the mine's project lenders, who subsequently sold the majority interest in the mine to Golden Star in 1999.

The stated Mineral Reserves have been prepared in accordance with Canada’s National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mineral Reserves are equivalent to Proven and Probable Reserves as defined by the US SEC Industry Guide 7.

The 2007 and 2006 Mineral Reserves have been prepared under the supervision of Peter Bourke, P.Eng., Vice President Technical Services for Golden Star. Mr. Bourke is a “Qualified Person” as defined by Canada’s National Instrument 43-101. The Mineral Reserves at December 31, 2007 were estimated using a gold price of $560 per ounce, which is approximately equal to the three year average price. At December 31, 2006 Mineral Reserves were estimated using a gold price of $480 per ounce.

The terms “non refractory” and “refractory” refer to metallurgical characteristics of the ore and are defined in the Glossary of Terms in the 2007 Form 10-K.

The Mineral Resources for Bogoso/Prestea include Pampe and Mampon. The Mineral Resources were estimated in accordance with the definitions and requirements of Canada’s National Instrument 43-101. The Mineral Resources are equivalent to Mineralized Material as defined by the SEC Industry Guide 7. The Mineral Resources were estimated using optimized pit shells at a gold price of $640 per ounce from this the Mineral Reserves have been subtracted. Other than gold price, the same optimized pit shell parameters and modifying factors used to determine the Mineral Reserves were used to determine the Mineral Resources. The Mineral Resources are not included in and are in addition to the Mineral Reserves. The Qualified Person for the estimation of the Mineral Resources is S. Mitchel Wasel, Golden Star Resources Vice President of Exploration.

The Inferred Mineral Resources for Bogoso/Prestea incorporates Pampe and Mampon. Inferred Mineral Resources for all properties have been estimated at economic cut-off grades based on gold prices of $640 per ounce and $560 per ounce as of December 31, 2007 and December 31, 2006, respectively, and using the same mining and processing costs and recoveries used for the Mining Reserves with the exception of the Prestea Underground, Goulagou and Paul Isnard prospects which used economic parameters deemed realistic. The Inferred Mineral Resources, other than for the Prestea Underground, were estimated using an optimized pit shell at a gold price of $640 per ounce from which the Mineral Reserves have been subtracted. Other than gold price, the same optimized pit shell parameters and modifying factors used to determine the Mineral Reserves were used to determine the Mineral Resources. The Prestea Underground were estimated using a cut off grade based on a $560 per ounce gold price and are commensurate with estimated underground mining costs. In 2006, we used a gold price of $560 per ounce for the optimized shell and the underground cutoff grade, as reported in our press release of February 14, 2007 Inferred Mineral Resources Non-Reserves – 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 feasibility. It cannot be assumed that all or any part of Inferred Mineral Resources 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.

Processing of the Prestea ores is currently carried out with a combination of gravity concentration, flotation, conventional Carbon in Leach (CIL) methods and bio-oxidation or BIOX®.

Bogoso/Presteas’s forecast for 2008 is production of 235,000 to 275,000 ounces at a cash operating cost of $525 to $565 an ounce. In 2009, production is forecast at 300,000 to 350,000 ounces, with estimated cash operating costs of $430 to $540 an ounce.

Since the acquisition of Bogoso in 1999, Golden Star has adopted a forward-looking approach to investment in the area, and during the extended downturn in the gold industry, we were able to acquire significant landholdings along this southern portion of the Ashanti Trend. Having consolidated the district-scale land position, our next step is to expand our mining and processing capacity to optimize the rate of gold production to match the size of the resource.

Given that the majority of the current reserves and resources are refractory, we built a new 3.5 million tonne per annum processing facility which incorporates a Gold Fields' proprietary BIOX® bio-oxidation circuit to breakdown the sulfide mineralization. The plant was put into commercial production on July 1, 2007. The expansion project, including the construction of the sulfide processing plant and the expansion of the mining fleet, cost about $125 million.

The Prestea Underground is an inactive gold mine located south of Bogoso and adjacent to the town of Prestea. The property consists of three surface access shafts and extensive underground workings and support facilities. Access to the mine is via a paved road from Tarkwa and Accra maintained by the Government of Ghana. Any potential future production from the Prestea Underground would be trucked to the Bogoso processing plants.

From the 1870s to 2002 when mining ceased following an extended period of low gold prices, the Prestea Underground operations produced approximately nine million ounces of gold, the second highest production of any mine in Ghana. The underground workings are extensive, reaching depths of approximately 1,400 meters and extending along a strike length of approximately nine kilometers. Underground workings can currently be accessed via two surface shafts, one near the town of Prestea (Central Shaft) and a second approximately four kilometers to the southwest at Bondaye.

We anticipate a pre feasibility study on the Prestea Underground during the first quarter of 2008.