Golden Star Resources Ltd.

Golden Star Resources Ltd.

March 29, 2005 09:30 ET

Golden Star to Explore the Afema ``Aboiso'' License in Cote d'Ivoire, West Africa


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GOLDEN STAR RESOURCES LTD.

TSX SYMBOL: GSC
AMEX SYMBOL: GSS

MARCH 29, 2005 - 09:30 ET

Golden Star to Explore the Afema ``Aboiso'' License in
Cote d'Ivoire, West Africa

DENVER--(CCNMatthews - Mar 29, 2005) -

Golden Star Resources Ltd. (TSX:GSC)(AMEX:GSS) is pleased to announce
that it has entered into an agreement with Societe d'Etat pour le
Developpement Minier de la Cote d'Ivoire Mines ('SO.DE.MI."), the Cote
d'Ivoire State Mining and Exploration Company, to acquire the Afema
(also previously known as the Aboiso) property in south-east Cote
d'Ivoire.

The Afema property covers an area of 2,012 square kilometers of
prospective Birimian rocks which represent the extension of the Sefwi
Belt meta-volcanics and the Kumasi Basin meta-sedimentary rocks into
Cote d'Ivoire. In Ghana, this 'belt-basin' contact hosts the
multi-million ounce Chirano and Bibiani Gold Deposits. A map is attached
and is otherwise available on our web site at www.gsr.com.

Oxide mineralization at Afema was mined in the 1990s from a number of
small, shallow open pits along a 12 km strike-length resulting in the
production of some 125,000 ounces of gold. Subsequently, Anmercosa
Exploration signed a joint venture with Eden Roc but no exploration was
conducted prior to their withdrawal in 2000.

Under the terms of the acquisition agreement, Golden Star will make an
immediate payment of $100,000 (all amounts in this news release are in
U.S. dollars) to SO.DE.MI. and will then have the right to carry out a
six month detailed technical due diligence, after which Golden Star will
have the right to complete the transaction to acquire 100% of
SO.DE.MI.'s rights in the Afema property for $1.5 million. Upon
completion of the acquisition of SO.DE.MI.'s rights, Golden Star will
have a 90% interest in the Afema property and the Government of Cote
d'Ivoire will have a 10% interest. In addition to the acquisition
payments, Golden Star will pay SO.DE.MI. a royalty on gold production
from the Afema property. The royalty rate shall be indexed to the gold
price. At current gold prices (in the range of $375 to $450 per ounce)
the royalty rate would be 2.5%.

Golden Star has indicated to SO.DE.MI. that it intends to spend at least
$500,000 on exploration in the first six months and may, subject to
exploration success, spend a further spend $3.5 million over the next
three and a half years.

Peter Bradford, President and CEO, said "We see significant potential in
Cote d'Ivoire on the same mineralized structures that have been mined in
Ghana for many years. The past mining and exploration at Afema has been
quite limited and we envisage significant potential on the 12 kilometers
of strike that has been previously mined and on the 15 kilometers of
untested contact zone towards the Ghanaian border. We are confident
that, in time, the political situation in Cote d'Ivoire will be
resolved. Our decision to acquire these assets at this time is therefore
not unlike our counter-cyclical decision in the late 1990s to acquire
our first toehold on the Ashanti trend when the potential of those
assets was largely unrecognized.

COMPANY PROFILE

Golden Star holds a 90% equity interest in both the Bogoso/Prestea and
Wassa open-pit gold mines 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 142
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 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
2004. 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.

MULTIMEDIA AVAILABLE:

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Golden Star Resources Ltd.
    800-553-8436
    Peter Bradford, 303-894-4613
    or
    Allan Marter, 303-894-4631