Golden Star Announces Debt Facility.

DENVER -- Golden Star Resources Ltd. (AMEX: GSS)(TSX: GSC) today announced that its Ghanaian subsidiary, Golden Star (Bogoso/Prestea) Limited, has finalized documentation for the first of two $15 million debt facilities.

The first debt facility is provided by Ecobank Ghana Limited and Cal Bank Limited, both being banks that are active in Ghana. The documentation for this facility has been executed and the funds are available immediately for a term of 27 months at an interest rate of US Prime plus one percentage point. Front end fees total one percent of the facility amount.

The documentation for the remaining $15 million debt facility with two other banks active in Ghana is well advanced and expected to be completed in the near future.

The debt is secured against the non-mobile assets of the Bogoso/Prestea mine and is to be used as partial funding for the Bogoso expansion project. There are no hedging requirements or equity-type incentives required under the facilities.

Peter Bradford, President & CEO, said, "All of our gold production is from Ghana and this debt facility represents an excellent opportunity for Golden Star to forge closer links with the Ghanaian banks with which we have had long-standing relationships. We are now entering the commissioning phase of our Bogoso Sulfide Expansion Project and expect that the funds from these debt facilities will be sufficient to satisfy our funding requirements through the end of 2006. Going forward, at gold prices at or above current levels, and with the gold production levels forecast from our expanded operations at Bogoso/Prestea, we expect robust cash flows from operations. As a result of our entering into this debt facility, we will not be proceeding with the previously discussed revolving credit facility."

Company Profile

Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America.

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 anticipated completion of a second $15 million debt facility with two banks active in Ghana; expected borrowing under both $15 million debt facilities; expectation that borrowings under the two $15 million debt facilities will be sufficient to satisfy the Company's funding needs through 2006; the completion and commissioning of the Bogoso Sulfide Expansion Project; funding requirements; future gold prices, future gold production rates and cash flow from operations. Factors that may cause future events and results to differ materially include the inability to complete the second $15 million credit facility; inability to borrow $30 million under the two credit facilities; future reductions in gold prices; permitting, operating or technical problems or other problems that reduce anticipated production rates or increase anticipated operating costs; and delays or problems in commissioning the Bogoso Sulfide Expansion Project that defer or reduce production or otherwise increase commissioning cost. The forward looking statements contained in this press release constitute Golden Star's current estimate and beliefs as of the date of this press release with respect to the matters covered hereby. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of risk factors in our Form 10-K for 2005.