(GSS)

Golden Star Resources Ltd. was established under the Canada Business Corporations Act on May 15, 1992. The Company is an international gold mining and exploration company, which produces gold in Ghana, West Africa. It also conducts gold exploration in West Africa and in South America. It owns controlling interests in several gold properties in southwest Ghana. Through a 90% owned subsidiary, Golden Star Bogoso/Prestea Ltd, the Company owns and operates the Bogoso/Prestea gold mining and processing operations located near the town of Bogoso, Ghana. Through another 90% owned subsidiary, Golden Star Limited, it owns and operates the Wassa open-pit gold mine and carbon-in-leach processing plant, located approximately 35 kilometers east of Bogoso/Prestea. The Company also holds interests in several gold exploration projects in Ghana and elsewhere in West Africa including Sierra Leone, Burkina Faso, Niger and Cote d'Ivoire, and holds and manages exploration properties in Suriname, Brazil and French Guiana in South America. Ghana has been a gold producing country for over 100 years with AngloGold Ashanti's Obuasi mine and the Company's inactive underground mine at Prestea historically being the two major producers. Several other areas in Ghana have also produced considerable amounts of gold. Annual gold production in Ghana has exceeded two million ounces in recent years. Currently all the Company's gold production is shipped to a South African gold refinery in accordance with a long-term gold sales contract. Its gold is sold in the form of dore bars which average approximately 90% gold by weight with the remaining portion being mainly silver. The Company competes with other mining companies and other natural mineral resource companies in the acquisition, exploration, financing and development of new mineral properties. Many of these companies are larger and better capitalized than it is. The Company also competes with other mining companies for skilled mining engineers, mine and processing plant operators and mechanics, geologists, geophysicists and other technical personnel. Its business, mining operations and exploration and development activities are subject to Canadian, United States, Ghanaian and other foreign, federal, state, provincial, territorial and local laws and regulations governing exploration, development, production, exports, taxes, labor standards, waste disposal, protection of the environment, reclamation, historic and cultural resource preservation, mine safety and occupational health, toxic substances, reporting and other matters, as well as accounting standards.