Golden Star Reports First Quarter 2007 Results.

DENVER -- Golden Star Resources Ltd. (AMEX: GSS)(TSX: GSC) today announced a net loss of $3.6 million, or $0.016 per share, for the first quarter of 2007. (All currency in this news release is expressed in U.S. dollars, unless otherwise noted.) These results will be discussed in our Results Conference Call on May 10, 2007 at 11:00 a.m. Eastern time, and a webcast presentation will be available at www.gsr.com.

FIRST QUARTER 2007 HIGHLIGHTS

* Gold sales revenues were $29.9 million on a volume of 45,825 ounces from Bogoso/Prestea and Wassa, at a realized gold price of $652 per ounce.

* Wassa beat guidance with gold sales of 28,105 ounces at a cash operating cost of $469 per ounce.

* Bogoso/Prestea missed guidance with sales of 17,720 ounces. Cash operating costs at $638 per ounce were primarily impacted by the lower gold sales.

* First gold was poured from the Bogoso sulfide expansion project. The project incorporates two BIOX([R]) circuit modules, the first of which was commissioned on schedule in February. The commissioning of the second module was delayed due to a number of mechanical issues, but is now operational and we have commenced ramping up the rest of the equipment and expect to be in commercial production later in the second quarter.

* Mining commenced at the Pampe open pit in February 2007 and the first oxide ore was delivered to the Bogoso CIL processing plant in March 2007.

* The Hwini-Butre and Benso feasibility study was completed and today the Board approved the decision to proceed with development. High grade ore, averaging 4.06 grams per tonne would be mined at Hwini-Butre and Benso and then hauled by road to Wassa for processing. This is expected to increase the gold production rate and mine life at Wassa and reduce average cash operating costs.

* A total of $83.0 million net to Golden Star was raised through the issuance of 24.15 million common shares pursuant to a marketed equity offering.

FINANCIAL AND OPERATIONAL SUMMARY FOR THE FIRST QUARTER

A net loss of $3.6 million or $0.016 per share was recorded for the first quarter of 2007 as compared to a net income of $19.3 million or $0.093 per share for the first quarter of 2006. Earnings for the first quarter of 2007 and 2006 were impacted by the sale of EURO Ressources S.A. and Moto Goldmines Ltd. shares as shown in the following table:

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CASH AND CASH FLOW

At March 31, 2007 our cash, cash equivalents and short term investments totaled $66.9 million, up from $27.1 million at the end of 2006. Operating activities consumed $8.3 million during the quarter versus $5.7 million for the same period in 2006. Cash used by operations increased due to the additions to materials and supplies inventory and increased in-process inventory. The increase in cash was largely proceeds from the offering.

A total of $36.2 million was used during the quarter for the purchase of capital assets. Approximately $19.5 million of the total was spent on the Bogoso Sulfide Expansion Project including $13.2 million for construction costs, $4.9 million for pre-production waste stripping and $1.4 million of capitalized interest. Other capital expenditures, including property, plant and equipment and development of various mining properties, totaled approximately $11 million. A total of $3.5 million of cash was received from the sale of EURO Ressources shares.

We sold 21 million Golden Star common shares on March 1, 2007, at a price of $3.60 per share for net proceeds of $72.2 million. The underwriter's over allotment option was exercised on March 9, 2007 to sell an additional 3.15 million common shares for additional net proceeds of $10.8 million.

Liquidity Outlook

Total expected capital expenditures for 2007, not including the HBB property development project, is planned to be $80 million with major components consisting of exploration, construction, mine development and mining equipment. Of this amount, $35.5 million was spent in the first quarter of 2007.

BOGOSO/PRESTEA

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(1) See note on non-GAAP financial measures below.

(2) Excludes 1,787 ounces produced from the new sulfide plant during testing.

Bogoso/Prestea incurred a $2.3 million operating margin loss during the quarter from sales of 17,720 ounces of gold, versus an operating margin loss of $2.0 million on gold sales of 20,735 ounces for the first quarter of 2006. A $0.4 million increase in operating costs, primarily fuel costs, power generation costs, and labor costs were the major contributing factors to the increase in the operating margin loss.

For the first quarter of 2007, most of the ore processed was relatively soft oxide material which is easier to process than the harder Plant-North pit ore that was processing in the first quarter of 2006. However, this softer ore was of a lower grade and yielded fewer ounces of gold during the first quarter of 2007 compared to 2006. Bogoso/Prestea realized an average of $651 per ounce in the first quarter, up from $554 per ounce a year earlier. The higher gold price offset the lower gold shipments leaving gold revenues the same as in the first quarter of 2006.

WASSA

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(1) See note on non-GAAP financial measures below.

Wassa incurred a $1.2 million operating margin loss in the first quarter of 2007 based on sales of 28,105 ounces of gold compared to an operating margin loss of $1.8 million in the first quarter of 2006 on sales of 24,205 ounces of gold. While cash operating costs rose to $13.7 million for the quarter, up from $12.2 million in 2006, the increase in plant throughput and resultant increase in ounces sold yielded a lower average cash operating cost per ounce.

The increase in cash operating cost for the current period is mainly due to labor, hired services, tires and other equipment operating costs. The improved throughput rates reflect the resolution of various processing problems encountered in early 2006 that have now been resolved. Depreciation, depletion and amortization (DD&A) was $5.8 million and 3.2 million for the first quarter of 2007 and 2006, respectively. The $2.6 million increase in DD&A is due to the decrease in Wassa's proven and probable reserves from 2006 to 2007.

BOGOSO SULFIDE EXPANSION PROJECT

Approximately 80% of the remaining ore reserves at Bogoso/Prestea are refractory and cannot be efficiently processed at our existing Bogoso CIL processing plant. In 2005 a decision was made to construct a new 3.5 million tonne per annum Bogoso BIOX([R])processing plant alongside the existing 1.5 million tonne per annum Bogoso CIL processing plant. The new processing plant, which is now nearing completion, utilizes the proprietary BIOX([R])bio-oxidation technology to treat refractory sulfide ore. Upon completion, the new Bogoso BIOX([R])processing plant and the existing Bogoso CIL processing plant are together expected to process 5.0 million tonnes of ore per year. First gold was poured from the Bogoso Sulfide Expansion Project in March 2007.

The new processing plant utilizes two modules of seven BIOX([R]) reactors (stirred stainless steel tanks, each with a capacity of about 1,500 cubic meters). The first BIOX([R]) module was commissioned in February 2007 and commissioning of the second module had been expected by the end of March. However, certain construction related issues and the replacement of a series of incorrectly specified valves have delayed the commissioning. The second BIOX([R])module was made operational and started discharging bio-oxidized material to the counter current decantation (CCD) washing circuit on May 7, 2007.

Now that both BIOX([R])modules are operational, we have tested the grinding circuit at design capacity and expect to start doing this on a consistent basis in the coming weeks.

Our new reagent circuits have been commissioned and are now operational, leaving the regrind mill, cyanide sparging, elution circuit and new gold room as the only areas which are yet to be commissioned and tested, however work in these areas is substantially complete. In the interim, we continue to utilize the existing elution circuit and gold room. The regrinding circuit, which is not essential in the testing stage, along with the new elution circuit and gold room are expected to be commissioned later in May 2007.

We have also expanded the flotation circuit relative to what was conceived in the Bogoso sulfide expansion project feasibility study. This expanded flotation circuit, which is intended to give us the added flexibility to continue to use a flotation step in our current oxide processing plant, is substantially complete and expected to be commissioned later in May 2007.

Commercial production is expected in the second quarter of 2007 and the Bogoso sulfide processing plant is expected to be at or near design throughput rates in the third quarter of 2007 and at or near design recovery rates by year end.

POWER

Power supply in Ghana continues to be a concern. Rationing of power was increased in March, restricting power consumption to 75 percent of normal power requirements. To alleviate the impact of power rationing on our mining operations, we are working with three other mining companies, Newmont Mining Corporation, Gold Fields Limited and Anglogold Ashanti Limited, to install a nominal 100 megawatt power station, which is expected to generate approximately 80 megawatts of power on a continuous basis. Construction of this power station is at an advanced stage and it is expected to be operational in July 2007, at an expected cost of $43 million of which we have committed to fund 25%.

In addition, we are actively assessing options to acquire an additional 10 to 15 megawatts of power generating capacity to be located at our Bogoso/Prestea gold mine and to have this operational by the end of 2007. To this end, we have entered into an option agreement to acquire a nominal 14 megawatt power station that can operate on either heavy fuel oil or diesel. During the two-month option period, which expires later this month, we have been carrying out a detailed assessment of the relocation to Ghana including construction and commissioning of this power station.

HWINI-BUTRE AND BENSO (HBB) PROPERTIES

The feasibility study on the HBB properties was completed in April 2007 and subsequently, on May 9, 2007, the Board approved the feasibility study and Mineral Reserve estimate and commencement of development. The development is expected to cost approximately $50.1 million of which $15 million is expected to be spent during 2007 and the remainder in 2008. A further $1.8 million expected to be spent on sustaining capital expenditure items over the life of the mine.

The underlying concept for the feasibility study and development of Hwini-Butre and Benso is to provide a source of high grade mill feed for the Wassa CIL processing plant. The mining would be conducted by Golden Star while ore haulage would be done by contractors. Competitive tenders for the access construction and haulage have already been received.

The four small pits at the Benso Subriso concession will be exploited first. Construction of a 52 kilometer haulroad would commence in the third quarter of 2007 and is expected to be completed by mid-2008. Pre-stripping and ore mining at Benso would commence in the second quarter of 2008 and the first ore would be hauled to Wassa for processing in the third quarter of 2008.

The two, higher grade, deposits on the Hwini-Butre concession, south of Benso, are scheduled to be mined following the completion of the 30 kilometer haul road in the second quarter of 2009.

Metallurgical test work has indicated that the Hwini-Butre and Benso ore is harder than the Wassa ore which will result in higher milling costs and a slightly reduced throughput. In addition, the number of CIL tanks will be increased from six to eight at Wassa to increase the total residence time and achieve design metallurgical recoveries. This will have the added benefit of improving the recovery from the Wassa feed.

The feasibility study, Business Case, was based on pits designs around a $560 per ounce optimized shell. We also carried out an economic analysis of a "Reserve Case" to support the stated Mineral Reserves. The Reserve Case produced 531,082 ounces of gold sold at an average cash operating cost of $225 per ounce and demonstrated an NPV(5%) at a gold price of $480 per ounce of $56 million and an internal rate of return of 57%.

EXPLORATION

In Suriname, exploration is continuing on the Saramacca project, our joint venture with Newmont. Induced polarization surveys and auger geochemistry programs are focusing on the Anomaly M zone and surrounding areas with the goal of identifying and defining drill targets for additional drilling programs in 2007. Additionally, reconnaissance geochemical sampling and prospecting has been conducted to extend the Brokolonko anomalous trend along strike. Approximately $0.7 million has been spent by Newmont toward their $2 million commitment.

During the first quarter exploration in Ghana was focused on the HBB properties, particularly the Manso, Amantin and Chichiwelli properties. At Manso, a semi-continuous soil anomaly has been identified over 20 kilometers.

Drilling at Prestea has been focused on the Footwall Reef, a quartz reef structure lying 20 to 25 meters into the footwall of the Prestea Main Reef. Additional drilling is planned to determine if this target could be exploited by decline development from the now depleted Plant-North pit in the future.

Approximately 2,000 meters of drilling in 20 drill holes was completed at the Yirisen prospect on the Pampana property in Sierra Leone as part of our Mano River Resources joint venture. Final results are still pending. Additionally, we are conducting a Rotary Air Blast (RAB) drilling program of which approximately 1,850 meters have been completed although results have not yet been received.

In Niger, field work has recommenced following a major data compilation and assessment program last year designed to highlight areas of untested potential on the Deba and Tialkam properties. Soil sampling is underway with RAB drilling commencing in the second quarter.

In addition, we continue to explore our Goulagou and Rounga projects in Burkina Faso.

LOOKING AHEAD

Our main objectives for the remainder of 2007 are to:

* Complete construction and commissioning of the Bogoso Sulfide Expansion Project and achieve commercial production in the second quarter of 2007;

* Permit and commence oxide mining from Prestea South ore bodies;

* Permit HBB project and commence development;

* Complete a feasibility study for Prestea Underground; and

* Optimize mining and processing activities and costs at Bogoso/Prestea and Wassa.

Golden Star is currently un-hedged and fully exposed to any movement in gold prices as we believe that gold prices will continue to remain strong for some time to hedge any of its future production of gold into rising gold prices.

Our guidance for Wassa remains unchanged and we expect operating results to benefit from improved grade from the Wassa main pit from mid-year and costs to benefit from reducing waste-to-ore strip ratios through the remainder of the year.

The delay in commercial production for the Bogoso Sulfide Expansion Project, which we still expect to achieve during the second quarter, will impact full year guidance for Bogoso/Prestea; however, until we have a definite date for commercial production, we do not believe it meaningful to update guidance.

SUMMARY FINANCIAL STATEMENTS

The following information is summarized and excerpted from the Company's unaudited consolidated financial statements and notes thereto from our Form 10-Q, which we intend to file with the SEC today.

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Current liabilities                         >              $ 56,939
$ 62,276
Long term debt                              >                70,166
73,786
Asset retirement obligations                >                16,301
16,034
Deferred income tax payable                 >                42,113
42,154
Minority interest                           >                 7,361
7,424
Shareholders' equity                        >               548,869
462,100
Total liabilities and shareholders' equity  >             $ 741,749
$ 663,774
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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 and various other property interests in Ghana, as well as gold exploration interests elsewhere in West Africa and in the Guiana Shield of South America. Golden Star has approximately 233 million common shares outstanding.

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 total capital cost of the Bogoso Sulfide Expansion Project and the estimated commencement of commercial production, our 2007 production estimates and capital expenditure, including production estimates for the new Bogoso Sulfide Expansion Project once completed, the recovery of any mineral reserves, planned operations, including the potential mining of Hwini-Butre and Benso properties and the potential processing of such ore at Wassa, anticipated funding, construction cost estimates, construction completion dates, equipment requirements, production, commercial production at Bogoso/Prestea, production commencement dates, grade, processing capacity, recoveries, potential mine life, results of feasibility and technical studies, timing of the completion of the feasibility studies for the Prestea Underground, development, costs, expenditures, mine re-opening and exploration. Factors that could cause actual results to differ materially include timing of and unexpected events during construction activities, expansion and start-up; variations in ore grade, tonnes mined, crushed or milled; 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, permitting, mining or processing 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 2006. 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.

Non-GAAP Financial Measures: In this news release, we use the terms "total production cost per ounce," "total cash cost per ounce" and "cash operating cost per ounce." Total cash cost per ounce is equal to total production costs less depreciation, depletion, amortization and asset retirement obligation accretion divided by the number of ounces of gold sold during the period. Cash operating cost per ounce is equal to total cash costs less production royalties and production taxes, divided by the number of ounces of gold sold during the period. We use total cash cost per ounce and cash operating cost per ounce as key operating indicators. We monitor these measures monthly, comparing each month's values to prior period's values to detect trends that may indicate increases or decreases in operating efficiencies. These measures are also compared against budget to alert management to trends that may cause actual results to deviate from planned operational results. We provide these measures to our investors to allow them to also monitor operational efficiencies of our mines. We calculate these measures for both individual operating units and on a consolidated basis. Total cash cost per ounce and cash operating cost per ounce should be considered as Non-GAAP Financial Measures as defined in SEC Regulation S-K Item 10 and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. There are material limitations associated with the use of such non-GAAP measures. Since these measures do not incorporate revenues, changes in working capital and non-operating cash costs, they are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Changes in numerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site general and administrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar to the measures of other gold mining companies, but may not be comparable to similarly titled measures in every instance.