Golden Star Reports on the Power Situation in Ghana and Impact on Its Operating and Development Activities and Recent Developments with Illegal Miners.

DENVER -- Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC) today provided the following update on the status of its operating activities in Ghana.

POWER SITUATION

There has been no change to the power situation in Ghana to that reported in the Company's press release of August 29, 2006, and the wholesale power supplier in Ghana, the Volta River Authority, does not expect to make any announcements on the availability of power until after September 30, 2006. Currently, the production of power from the Akosombo hydroelectric scheme is operating at below maximum capacity due to the low level of the Akosombo reservoir. In addition, the Aboadze thermal plant is also operating at less than maximum capacity as a key component on one of the turbines is being refurbished in the United Kingdom.

Heavy rainfalls in the north of, and to the north of, Ghana combined with less drafting from the hydroelectric scheme have resulted in an increase in the level of the Akosombo reservoir which has risen from a low of 236.7 feet on September 1 to 239.1 feet on September 20. However, this is the lowest level ever for the reservoir for this time of year and the level is still below the 240-foot minimum operating level. The Aboadze turbine component that is being refurbished in the UK is expected to leave the factory on September 25 and mining companies operating in Ghana have offered to pay for it to be air freighted to Ghana and expedite its transfer from the airport to the power station. It is expected that the offer will be accepted and that this turbine would be operational in the second half of October.

IMPACT ON GOLDEN STAR'S OPERATING ACTIVITIES

Golden Star is currently curtailing its power consumption to conform to the power rationing requirements of the Volta River Authority. This has been achieved by operating the Wassa processing facility on reduced capacity (8,000 tonnes per day instead of 11,000 tonnes per day), curtailing services for the Prestea Underground mine, which has slowed the rate of exploration, and operating some of the Company's standby diesel generating capacity. The slowed rate of exploration is not expected to impact the timing of the Company's feasibility study on the potential underground mining of the West Reef resource described in the Company's press release of August 16, 2006. As a result of these actions, the Company has been able to continue normal operations on the Bogoso/Prestea processing plant.

The current power allotment for Golden Star is insufficient to enable Golden Star to proceed with the commissioning of the Bogoso Sulfide Expansion Project; however, the Volta River Authority has indicated that they will review Golden Star's allotment at the end of September. The Volta River Authority has further indicated to Golden Star that the new processing plant should be treated in the same way as any other existing facility in the country in terms of allotment priorities.

As a result of this situation, the Company expects third quarter production from Bogoso/Prestea and Wassa to be approximately 32,000 ounces and 22,000 ounces, respectively. Cash operating costs per ounce at Bogoso/Prestea are expected to improve relative to the previous quarter and be unaffected by the power shortages. The reduction in Wassa gold production arising from the reduced processing rate is expected to be offset by higher grade ore from the SAK pit, and as a result cash operating costs per ounce are expected to be substantially the same as the previous quarter. Until the availability of power and the timing of its availability are confirmed in early October, it is not possible to provide firm production guidance for the fourth quarter.

ILLEGAL MINING AND BONDAYE SHAFT INCIDENT

For some time, the Company has lobbied the Ghana government for assistance in reducing illegal mining activities on its properties in Ghana, as have other mining companies that are active in the country. In August 2006, the Company hosted a visit by the Regional Minister and his advisors to, among other things, review the degree and impact of illegal mining on the Bogoso/Prestea property. In particular, the Company pointed out the impact that illegal mining was having on the Bondaye shaft, a subsidiary shaft currently used as a second means of egress to the Prestea Underground. In the short to medium term, the Company plans to use the Bondaye shaft for limited scale, trial underground mining and therefore impressed upon the Regional Minister the urgent need for Government to stop illegal mining in the area to (i) ensure that the integrity of the shaft was not compromised by illegal mining activities, and (ii) to enable trial underground mining to commence. The Regional Minister made strong remarks, both at that time and subsequently, on the Government's commitment to foreign investment and the need for Government to assist with the removal of the illegal miners.

On September 14, the Company reported in the Ghanaian press that blasting activities associated with continued illegal mining in the area of the Bondaye shaft had caused a rock slippage adjacent to the Bondaye shaft column over an area of about four meters wide by ten meters high. Rock from the slip bulged into the shaft causing damage to shaft steel work. Some rock also fell into the shaft causing damage to cages and lower sections of the shaft. A program of work to rehabilitate the shaft steelwork had recently been commenced and therefore the damage to the shaft steelwork as a result of the rock fall creates little additional work relative to what was planned. The work to repair the area of the rock fall is expected to take about one month, and the previously planned work to rehabilitate the shaft steel work is expected to take about six months.

Following the incident, the Ghana police and military cleared the illegal miners from the Bondaye shaft area and the illegal mining excavations were bulldozed by Golden Star. In addition, another area of illegal mining, which was undermining a 161 kilovolt electricity tower owned by the Volta River Authority on the Prestea property, was cleared by the Ghana police and military. Golden Star used its equipment to assist with the removal of illegal mining equipment.

The Company continues its efforts to lobby for the removal of the illegal miners, and to this end will continue to report on the negative impacts of illegal mining on its operations in the Ghanaian press, as a means of educating the public in Ghana. These reports, which are invaluable to our lobbying efforts and public relations programs in Ghana, are not necessarily material to Golden Star and, as such, are unlikely to warrant a Golden Star press release in North America.

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. Golden Star has approximately 208 million 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 and within the meaning of Canadian securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual events and results to differ materially. Such statements include comments regarding the timing and impact of low water levels in the Akosombo reservoir, the timing and impact of the refurbishment of the Aboadze turbine, the possibility of air freighting the turbine to Ghana, and timing and impact of reduced power capacity for Bogoso/Prestea and Wassa, anticipated third quarter production, future power allotment for the Bogoso Sulfide Expansion, expected timing for the completion of the feasibility study on the potential underground mining of the West Reef resource. Actual future events and results may differ materially, including due to: delays in the recommencement of power generation at the Takoradi Thermal River Station; weather and rain patterns which are not in line with historical experience which, in turn, could result in less power generation efficiency from Volta Lake; protracted power curtailment by the Volta River Authority; continued delay in the repair and reactivation of the Aboadze turbine; insufficient power allotment for the Bogoso Sulfide Expansion; increased costs of diesel fuel; and increased or prolonged power curtailment initiatives by the Volta River Authority. The forward-looking statements contained in this press release constitute Golden Star's current estimate and beliefs, as of the date of this news release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this news release represents Golden Star's estimate and beliefs as of any date other than the date of this press release. There can be no assurance that future developments will be those anticipated by Golden Star.