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Golden Star exceeds 2015 target

Golden Star Resources – which holds a 90% interest in the Wassa and Prestea gold mines in Ghana – announced, on Monday January 11, its fourth quarter results for 2015, in which it exceeded its production target.

It also announced the full year production results for the Prestea and Wassa mines and guidance for 2016.

Golden Star achieved 103% of the top end 2015 gold production guidance, as the Company produced 222,416 ounces of gold in 2015.

Gold production was 108,266 ounces and 114,150 ounces from Wassa and Bogoso/Prestea, respectively, for the full year 2015.

It achieved fourth quarter gold production of 52,140 ounces with Prestea South open pit mining yielding, a significant contribution to the quarter (31,395 ounces from Wassa and 20,745 ounces from Prestea).

The firm’s cash and cash equivalents balance as of December 31, 2015 totaled US$35 million after drawdown of US$20 million of RGLD Gold AG (“Royal Gold”) stream financing and US$7 million on the Ecobank loan in December 2015.

Operations and Projects Update:

Wassa Mine continued operations as normal and processed approximately 2.5 million tonnes of ore grading 1.46 grams per tonne with metallurgical recovery of 93% to produce 108,266 ounces of gold for the year.

Mining of the Prestea South surface oxide pits commenced in August 2015. Fourth quarter ore processed totaled 317,764 tonnes grading 2.36 grams per tonne, and achieved 83% recovery for 20,745 ounces of gold sold. It is expected that this level of oxide production will continue beyond the first quarter of 2017. Drilling is expected to continue in the Prestea South area to further expand the Company’s knowledge of those deposits and potentially increase mineral resources in this part of the concession.

While the operating costs have not yet been finalised, they are expected to be significantly lower than achieved in 2014, in keeping with the cost trend reported in the prior three quarters. The operating costs for both Prestea and Wassa Mines will be reported in February with the release of the fourth quarter and full year 2015 results.

The Wassa Underground project has made substantial progress during 2015, with approximately 885 meters of the twin decline advance completed to date. Infill drilling early in 2015 was successful in expanding the F Shoot target. The up plunge projection of the F Shoot zone was intersected in both declines and further drilling will be conducted to determine grade and thickness up plunge from the planned stoping area. Stope development of the upper mineralization is expected to commence in the second quarter of 2016 with first ore production expected in the second half of 2016.

The Feasibility Study on the Prestea Underground project was completed towards the end of 2015 and confirmed the project economics are robust in the current gold price environment. Work on the Prestea Underground project advanced significantly during 2015 with Central Shaft rehabilitation and refurbishment work on 17 and 24 levels progressing as scheduled. All the bearer sets in Central Shaft were replaced during 2015, a critical step forward to full hoisting operations. First ore production is expected in early 2017.

Commenting on this operational performance, President and CEO Sam Coetzer said: “The hard work and determination of our management and personnel has enabled Golden Star to weather the difficult market conditions over the last year and put the Company firmly on its path of transforming into a lower cost producer. The operations have performed extremely well in the second half of the year, particularly in the fourth quarter, with Golden Star exceeding its production guidance for 2015. I look forward to reporting our results in February as we anticipate the cost reduction trend reported in the first three quarters of the year to continue through the fourth quarter. The Wassa and Prestea Underground projects have made excellent progress in 2015, and we are excited about the next 12 months as we continue to execute the transformational strategy for Golden Star we set out two years ago.”

2016 Full Year Production and Financial Guidance:

The following tables set out Golden Star’s production and cash operating cost guidance, as well as capital expenditure guidance, for 2016.

Production Cash operating costs

‘000 ounces US$ per ounce(1)

Wassa Open Pit 100 – 110 800 – 900

Wassa Underground 20 – 25 N/A(2)

Prestea Open Pit 60 – 70 840 – 970

Combined 180 – 205 815 – 925

Golden Star expects to release its fourth quarter and full year 2015 Financial Results on February 23, 2016.

Golden Star Resources (NYSE MKT: GSS; TSX: GSC; GSE: GSR) (“Golden Star” or the “Company”) is an established gold mining company that holds a 90% interest in the Wassa and Prestea gold mines in Ghana.

As of December 31, 2014 Golden Star had Mineral Reserves of 1.9 million ounces and 6.6 million ounces in Measured and Indicated Mineral Resources.

The Company is developing two brownfield projects at Wassa and Prestea mines, which are expected to transform Golden Star into a lower cost producer. As such, the Company offers investors leveraged exposure to the gold price in a stable African mining jurisdiction with significant development upside potential.

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