Golden Star Announces Revitalization of Guiana Shield Assets in South America

Business Wire, Oct 7, 2004

DENVER -- Golden Star Resources Ltd. (AMEX: GSS)(TSX: GSC) is pleased to announce that it has successfully progressed the revitalization of its Guiana Shield properties in South America. Golden Star was highly active in the Guiana Shield during the 1990s and has one of the better geological knowledge bases for the region. Golden Star's revitalization of its properties and its expansion of its interests in the region are intended to capitalize on these past investments.

Acquisition of Paul Isnard, French Guiana

A key element of this process has been the restructuring of Guyanor Ressources S.A. (TSX: GRL.B)(Nouveau Marche, Paris: GUYN) which has resulted in Golden Star acquiring an option to acquire 100% of the 433 square kilometer Paul Isnard property in French Guiana as well as Guyanor's geological knowledge base for French Guiana in exchange for payments to Guyanor that are set off against the debt owed by Guyanor to Golden Star plus a gold royalty on future production. No cash payments have or will be made by Golden Star to Guyanor to acquire the Paul Isnard property and the French Guiana geological knowledge base.

Acquisition of Bon Espoir, French Guiana

Separately, Golden Star has today closed a transaction to acquire a 100% interest in the 466 square kilometer Bon Espoir exploration property in French Guiana from Gold Fields Exploration B.V. for a purchase price of $300,000 payable in common shares of Golden Star The Bon Espoir property is located north of the Company's Paul Isnard Property in a geological setting interpreted by Golden Star as having very close similarities to the Ashanti trend in Ghana.

Encouraging Exploration at Saramacca in Suriname

Golden Star commenced early stage exploration of the 871 square kilometer Saramacca property in Suriname in 2003 and identified a strong, continuous five kilometer long soil anomaly. Recent follow up work using deep augering down to ten meters depth has demonstrated that the soil anomaly continues at depth, returning spot auger values of up to 100 g/t. Drilling of the anomaly which lies west of Cambior Inc's Rosebel mine is scheduled for early 2005.

Sale of Gross Rosebel Royalty to Guyanor

In late September, the Golden Star entered into an agreement to sell its rights to receive royalty payments from gold production at Cambior's Rosebel gold mine located in Suriname. Under the terms of the sale, Guyanor will make cash payment to Golden Star of $12 million. Additionally, Golden Star will receive further payments if production at the Rosebel mine exceeds the current mine plan of 2 million ounces of attributable gold production. These additional payments could total up to $20 million if a total of 7 million ounces of attributable gold production is achieved, subject to the gold price.

Golden Star continues to own approximately 53% of Guyanor and will continue to indirectly participate in the royalty interest as a shareholder of Guyanor. Guyanor is actively considering opportunities to acquire additional royalty interests.

The sale of the Rosebel royalty right is subject to Guyanor shareholder approval.

Sale of Yaou and Dorlin properties in French Guiana

As part of the revitalization of its Guiana Shield activities, Golden Star has agreed to sell its 50% interest in the Yaou and Dorlin gold properties in French Guiana to Auplata SA in exchange for a 0.5% gold production royalty. Separately, Guyanor has also agreed to sell its 50% interest in Yaou and Dorlin to the same company. The properties, which are located in the interior of French Guiana and not currently accessible by road, are considered to be logistically difficult and not suitable for large scale commercial development.

Golden Star Company Profile

Golden Star holds a 90% equity interest in the Bogoso/Prestea open-pit gold mine and the nearby Wassa gold project, which commenced operations in the third quarter. Both mines are located in Ghana. In addition, the Company has a majority 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.