Golden Star Resources (GSS) Completes PEA of West Reef; Issues Highlights

Golden Star Resources Ltd. (AMEX: GSS) announces the completion of a Company authored Preliminary Economic Assessment ("PEA") of the West Reef orebody of the Prestea Underground Mine. The Company plans to file a PEA document that is compliant with National Instrument 43-101 within 45 days. The Board of Directors has approved the PEA and has directed management to proceed to a full feasibility study. All references herein to "$" are United States dollars.

Highlights:

• West Reef has an Indicated Resource of 874,000 tonnes grading 18.07 grams per tonne (g/t) for 508,000 ounces of gold (Au) and the orebody is open along strike and down dip
  
  
• The PEA contemplates a 1,200 tonnes per day operation from mechanized mining to produce 90,000 ounces of gold per year at full operation
  
  
• Ore will be processed at the Bogoso oxide processing plant
  
  
• Life-of-mine cash operating costs (before royalty and taxes) are estimated at $650 to $700 per ounce
  
  
• Capital cost, including a decline and hoisting shaft, are estimated at approximately $115 million
  
  
• Net present value at $1,500/oz Au and 5% discount rate is $134 million (pre-tax)
  
  
• Internal rate of return of 17%

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