Golden Star Approves $21 Million Budget For Exploration.

Business Editors

DENVER--(BUSINESS WIRE)--March 24, 2004

Golden Star Resources Ltd. (AMEX:GSS) (TSX:GSC) is pleased to announce that it has approved a budget of approximately $21 million for exploration in 2004, with $15 million of this allocated for exploration and development drilling around its existing mining properties in Ghana, West Africa and the remainder on early stage exploration projects in West Africa and South America. (All currency in this news release is expressed in U.S. dollars.)

Peter Bradford, President and CEO stated that "The $21 million budget is a significant increase from the total exploration expenditure of $6.9 million in 2003 and reflects both the Company's confidence in the potential of the Bogoso/Prestea and Wassa properties in Ghana to deliver additional gold reserves and the potential to identify organic growth opportunities that may deliver greater returns to shareholders when compared to higher cost acquisitions in the current buoyant gold market. At the same time we are continuing our focus on Ghana, we are spreading our wings to invest in joint venture opportunities elsewhere in West Africa and to reinvestigate our existing property position in South America which has lain dormant since the late 1990s."

The following summarizes our ongoing exploration projects and updated descriptions of each of these have been posted to our website at www.gsr.com.

BOGOSO/PRESTEA -- GHANA (90% interest, unless otherwise shown)

The greatest portion of our exploration budget is directed to our Bogoso/Prestea property in Ghana, where we plan to spend $12.5 million on exploration including the following six principal target areas, each of which would be significant in its own right:

Prestea South Surface Exploration

A total of 21,000 meters of in-fill rotary air bore (or RAB) drilling and reverse circulation (or RC) resource definition drilling has been budgeted to test gold-in-soil anomalism extending south from our southern-most open pit reserves by about seven kilometers to the Prestea concession boundary. The total budget for this work is $0.3 million.

Prestea Underground (59% interest)

During 2004 a total budget of $6.6 million of exploration drilling and expenses has been allocated to the underground mine at Prestea focused on four primary target zones:

1. Relatively shallow and previously un-mined underground targets

at approximately 400 meters depth on the Prestea Main Shoot

beneath our Plant-North pit;

2. Down plunge extensions of the Beta Boundary Shoot located some

four kilometers south of the Prestea Main Shoot beneath the

planned Beta-Boundary pit at approximately 550 meters depth;

3. Down plunge extensions of the Tuappim and Bondaye Main Shoots

below 1,000 meters depth, located some two kilometers south of

the Beta Boundary Shoot; and

4. A previously un-mined and unexplored zone from surface to 750

meters depth covering some two kilometers of the Ashanti Trend

between the Tuappim and Bondaye Shoots.

In addition, two underground drill stations will be developed beneath the Plant-North pit at approximately 1,200 meters depth in preparation for drilling planned for 2005 to test the extensions of the Prestea Main Shoot.

Akropong Trend (earning 90% interest)

We have budgeted $1.0 million of work on our 766 square kilometer Akropong trend properties located approximately 20 kilometers west of Bogoso/Prestea. The work program includes (i) RC drilling of a 1.2 kilometer long zone of mineralization at Pampe, and (ii) RAB drilling on what appears to be a structurally controlled +100 parts per billion gold-in-soil anomaly extending over a strike length of some 6.4 kilometers at Amenfi.

Dunkwa

Exploration at Dunkwa, located on the Ashanti Trend north of Bogoso, in 2004 will involve further drilling at the known occurrences, including Mampon, as well as follow-up drilling of new gold-in-soil targets identified in 2003. A total of $0.73 million has been budgeted for this work. In addition to this exploration budget, and pending environmental permits, we have allocated $2.8 million of additional funds, which are not included in our exploration budget, for pre-development activities at Mampon including installation of a bridge over the Opon River, establishment of a road, metallurgical sampling and testwork and environmental studies.

Bogoso Sulfides

No drilling for sulfide resources has been carried out at Bogoso since the early 1990s and in 2004 we plan to drill approximately 25,000 meters of RC and diamond drilling beneath the previously mined oxide pits with a total budget of $1.6 million to test for sulfide mineralization.

In addition, approximately 5,000 meters of diamond drilling has been budgeted at our Buesichem pit to in-fill past drilling to a nominal 25 meter drill pattern and to collect samples for further metallurgical test work. In-fill drilling at depth below the current pit design is expected to result in the conversion of inferred mineral resources to mineral reserves. A total of $0.75 million has been budgeted for this program.

Prestea Beta Boundary Pit Extensions

In-fill drilling of the Beta Boundary resource has been budgeted for 2004 to convert inferred mineral resources into mineral reserves. A total of approximately 17,000 meters of RC drilling and 3,000 meters of diamond drilling has been planned to test the mineralized zones along strike and down dip bringing the nominal drill spacing to 25 meters. The budget total for this program is $1.1 million.

WASSA -- GHANA (90% interest)

In 2004, exploration at Wassa will focus on three principal target areas with a total budget of $2.5 million:

1. In-fill drilling of inferred mineral resources within a $325

per ounce optimized pit shell generated using all measured,

indicated and inferred mineral resources;

2. In-fill and extension drilling at Akyempim South to expand and

better define the inferred mineral resource of approximately

two million tonnes at an average grade of 2.19 g/t in this

area; and

3. Deep augering and initial drilling of the further soil

anomalies, beyond Akyempim South, in a southwest-trending

mineralized corridor through the property.

In addition, detailed aeromagnetics, radiometrics, and EM will also be flown over the Wassa lease and adjacent permits to guide future exploration in the area.

WEST AFRICAN NON-MINE EXPLORATION

Obuom -- Ghana (52% interest)

We have allocated $77,000 for various early stage work programs on the Obuom Concession which is located on the Ashanti trend about 20 km north of Ashanti's Obuasi mine once permitting to allow access to the forest reserve has been obtained.

Kibi SW Application -- Ghana (100% interest)

We have budgeted $0.6 million for reconnaissance work to test for gold bearing mineralization potentially associated with remnants of Birimian rocks over an area covering the extensions of the Kibi and Winneba belts in southern Ghana traditionally regarded as being underlain entirely by regional granitoids.

Mininko -- Mali (earning up to 82.5% interest)

In 2003 we completed 400 x 200 meter soil sampling over the 250 square kilometer Mininko property located in Birimian rocks in southeastern Mali to confirm and in-fill results from earlier explorers. In 2004 we have budgeted $0.8 million to carry out several stages of phased exploration commencing with a 2,500 meter RC drilling program on known mineralization at Nampala in early 2004.

Mano River Joint Venture -- Sierra Leone (earning up to 85% interest)

We have planned an intensive campaign of drilling, trenching, geophysics and geochemical sampling on several gold properties in Sierra Leone joint ventured with Mano River Resources Inc. The total commitment in 2004 is $1.0 million and we expect work to commence in the second quarter with planned drilling of a mineralized zone on the Yirisen project that extends for about five kilometers in intensively sheared ultramafic rocks.

SOUTH AMERICAN EXPLORATION

Paul Isnard -- French Guiana (73% interest)

We have included an inferred mineral resource of 8.2 million tonnes grading 1.78g/t at Montagne d'Or on the southern boundary of the Paul Isnard concession in our year-end resource estimate. Further work is warranted to identify additional sources of hard rock mineralization, which together with the mineral resource at Montagne d'Or could support a future mining operation. In 2004 we will review the historical work on the property as a guide to future exploration.

Bon Espoir -- French Guiana (73% interest)

At the 466 square kilometer Bon Espoir property, located north of Paul Isnard in western French Guiana, we have planned regional soil geochemistry covering a 40 kilometer long by five kilometer wide prospective corridor within the Armina Formation looking for an "Ashanti Trend" style target. The total budget for this work, which is planned for mid-year, is $0.7 million.

Saramacca -- Suriname (100% interest)

In 2003 we identified two persistent gold-in-soil anomalies on our Saramacca project area located in north central Suriname with the most intense of these anomalies being +100 parts per billion over a five kilometer strike length. During 2004 we have committed $150,000 to follow up these anomalies with in-fill auger soil sampling and trenching.

Peru and Chile (about 30% interest)

We have committed a further $0.6 million of investment into Minera IRL, a private junior exploration company active in Peru and Chile to keep our shareholding at about 30%. Minera IRL has developed a portfolio of early stage exploration projects in Peru and Chile, the most advanced of which was drilled in 2003 with additional drilling planned in 2004 to expand the size of the gold resource in readiness for technical studies in 2004 and 2005.

COMPANY PROFILE

Golden Star holds a 90% equity interest in the Bogoso/Prestea open-pit gold mine and the Wassa gold project both of which 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. Golden Star has approximately 133 million common shares outstanding.

Note regarding Canada's National Instrument 43-101: The above disclosure has been reviewed by our Qualified Persons, Dr. Doug Jones, Vice President, Exploration and Mr. S. Mitchell Wasel, our Exploration Manager in Ghana.

Cautionary Note to US Investors concerning estimates of Inferred Mineral Resources: US investors are advised that while the term "inferred mineral resources" 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 and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources could not form the basis of feasibility or other economic studies. US investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable.

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 establishment and estimates of mineral reserves and non-reserve mineral resources, the recovery of any mineral reserves, planned operations, anticipated funding, grade, processing capacity, results of feasibility and technical studies, development, costs, expenditures, and exploration. Factors that could cause actual results to differ materially include timing of and unexpected events during exploration; variations in ore grade; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; technical or permitting issues, and fluctuations in gold price and costs. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Form 10-K for 2003. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.