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Golden Star Announces Commissioning of Crusher on Its Bogoso Sulfide Expansion Project.

DENVER -- Golden Star Resources Ltd. (AMEX: GSS) (TSX: GSC) today announced the commissioning of the first part of its Bogoso Sulfide Expansion Project, at the Bogoso/Prestea property in Ghana.

Peter Bradford, President and CEO, said: "Construction continues on-track for completion, ahead of schedule late in the third quarter, and costs continue to be within budget expectations, at $125 million for the construction and $25 million for the pre-stripping and inventory build-up. The crushing section has been hot commissioned (operated with material) and approximately 8,000 tonnes of ore have been crushed and added to the crushed ore stockpile. Over the next few weeks, portions of the grinding circuit and the CIL plant are also scheduled to be hot commissioned."

Construction Status

Details of the status of construction are as follows and updated photographs are available on the Company's website at www.gsr.com:

--The crushing section has been hot commissioned with ore and approximately 8,000 tonnes of ore have been crushed. Some non-critical work, such as the crusher gantry overhead crane, is yet to be completed but otherwise this section is substantially complete and ready for operation. In addition, the ore stockpile and reclaim system has been dry commissioned (operated without material) and is ready for hot commissioning.

--The grinding and classification section is in various stages of completion. The ball mill is complete, its electric motor has been run, and the mill is expected to be hot commissioned before the end of the month. The SAG mill is also nearing completion, and is only about 2-3 weeks behind the ball mill, and should be hot commissioned by mid-September.

--The CIL tanks are substantially complete and are presently being filled with water in readiness for hot commissioning.

--Construction of the new flotation circuit has commenced and is expected to be ready for dry commissioning and testing by mid-September.

--The BIOX(R) and neutralization tanks and associated thickeners are expected to be completed over the next month and to be dry commissioned and tested progressively as the construction in the various areas is completed, with the last items expected to be completed by the end of September.

--The first BIOX(R) material has been transferred from the inoculum tank to BIOX(R) Module 1, Tank 1 and the build up of inoculum is expected to progress rapidly. Approximately 14 days later BIOX(R) Module 1, Tank 2 will be filled, and 8 days later BIOX(R) Module 1, Tanks 3 and 4 will be filled, with the remaining three secondary tanks being filled 14 days later. On this planned schedule, BIOX(R) Module 2 will be filled 10 days later, on or about September 20.

--The cooling towers, required to keep the BIOX(R) tanks within the specified operating temperature range, are currently being erected and are expected to be completed and ready for dry commissioning and testing beginning around the end of the month.

--The first three blowers to supply air to the BIOX(R) tanks are installed and piping is currently being connected. The fourth blower is on site and will be installed in August. The remaining two blowers are presently being shipped to Ghana and are to be delivered, installed and commissioned during September.

--Electrical and piping work is underway and is expected to be completed progressively by mid-September.

--On-site work on the elution circuit, gold room and laboratory is expected to be completed by mid-October.

--Tailings dam construction is underway. The first sections, which allow the expansion project to be commissioned, are expected to be completed in September and the remainder will be completed in the fourth quarter.

--Pre-stripping of the sulfide pits to create a stockpile of transition and sulfide ore for the BIOX(R) plant is progressing well. It is expected that a stockpile of about 800,000 tonnes will have been produced by the end of September 2006.

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. 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 timing of the completion of the Bogoso Sulfide Expansion Project, forecast project costs and the timing of the completion of various sections of the Bogoso Sulfide Expansion Project. 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.
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Publication:Business Wire
Geographic Code:1USA
Date:Aug 24, 2006
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