Progress Continues At Bogoso/Prestea In West Africa 

DENVER, CO - Golden Star Resources Ltd. reported increase in gold prices combined with higher production in the third quarter pushed gold sales to $125.9 million, up 15% from $109.8 million in the second quarter of 2011 and up 21% from $103.7 million in the third quarter a year ago. In addition, the Company returned to positive cash flow from operations while continuing to invest in initiatives to reduce costs and increase reserves and resources.

"We're very pleased with the positive progress we've achieved at Bogoso/Prestea in West Africa, where production has steadily increased during the year and operating costs are on the decline," said Tom Mair, President and CEO. "Our Bogoso/Prestea mine's third quarter metallurgical recovery was the highest since the sulfide plant commenced operations in 2007. Over the past year, quarterly metallurgical recoveries have increased from 56% to 61%, 66%, and 76%, respectively. We are also improving financial results, including positive cash flow from operations of $11.5 million. Looking ahead, we'll continue to drive down operating costs at both mines while increasing overall production. We have a tremendous asset base along the prolific Ashanti Gold Belt that is undervalued by almost any measure."

Gold sales from Bogoso/Prestea grew to 40,376 ounces during the third quarter of 2011, up 18% over the second quarter and up 32% over the first quarter. These consistent increases are the direct result of a comprehensive operational review earlier this year that led to enhancements and improvements in all phases of operations. A more optimal blend of fresh and transition ores has steadily improved metallurgical recovery culminating in a quarterly record recovery of 76% in the third quarter of this year. The Company expects to further increase throughput and to continue to optimize the ore blend at Bogoso/Prestea in coming quarters.

At the same time, Bogoso achieved a 10.4% reduction in cash operating costs -- $1,238 per ounce in the third quarter versus $1,383 per ounce in the second quarter -- due to improved operating efficiencies and in spite of high mill maintenance costs and temporarily high stripping ratios. As stripping ratios return to design levels, the Company expects to achieve further operating cost reductions and higher mill throughput over the long term.

Gold sales from Wassa/HBB totaled 33,485 ounces in the third quarter of 2011 as processing was impacted by wet, sticky ore from the newly opened Father Brown pit and by lower mill availability. Although cash operating costs increased to $950 per ounce in the third quarter, the Company expects that higher production and grade from the Father Brown pit as it deepens will result in increased fourth quarter production of approximately 40,000 ounces and cash operating costs will decline by approximately $50 per ounce.

Through the first nine months of 2011 the Company's exploration activities included seven drill rigs focused on identifying additional resource potential with infill drilling and testing of the known mineralized trends along strike and at depth. At Bogoso/Prestea drilling focused around the active pits at Bogoso North, Chujah and Pampe and will continue through the remainder of this year. Wassa/HBB drilling concentrated on higher-grade zones of gold mineralization at depth along the Wassa Main trend. The Company also continued to drill to depth beneath the Father Brown Pit at Hwini Butre, where an initial preliminary assessment of underground mining showed positive economics.

Elsewhere in West Africa, Golden Star is preparing for initial drilling of its concessions in the Cote d'Ivoire. In addition, Riverstone continues work on the Company's Goulagou-Rounga property in Burkina Faso.

Exploration activities in Brazil continued with regional stream sediment sampling on the Iriri Joint Venture with Votorantim Metals. This joint venture encompasses a 3,400 square kilometer area in Northern Mato Grosso State.

The company's address is 10901 W. Toller Drive, Suite 300, Littleton, CO ?80127-6312, 303-830-9000, fax: 303-830-9094.