Golden Star Reports Financial Results For 2006 Year

Golden Star Resources Ltd. today announced its audited results for the full year and fourth quarter 2006. (All currency is expressed in U.S. dollars, unless otherwise noted).

2006 RESULTS

-- Net income of $64.7 million, or $0.31 per share

-- Increase in revenues of 35% to $128.7 million

-- Record gold sales of 201,406 ounces from the Bogoso/Prestea and Wassa mines in Ghana

-- Average realized gold price of $607 per ounce

-- Average cash operating cost(1) of $442 per ounce

-- Sales of certain non-core assets for a total pre-tax capital gain of $81.1 million

-- Cash flow from operations of $27.7 million before committing approximately $22.3 million to increases in ore stockpiles

FOURTH QUARTER RESULTS

-- Net income of $30.7 million, or $0.15 per share

-- Revenues of $33.2 million

-- Gold sales of 53,406 ounces at a cash operating cost(1) of $393 per ounce

2007 OUTLOOK

-- Expected 2007 production of 390,000 ounces at average cash operating costs(1) of $389 per ounce

-- Hwini-Butre and Benso feasibility study release and decision to mine expected in May

-- Prestea underground, West Reef, feasibility study expected by end-2007

OVERVIEW

We had net income of $64.7 million or $0.31 per share on revenues of $128.7 million for 2006 versus a net loss of $(13.5) million or $(0.09) per share on revenues of $95.5 million for 2005. Mine operations contributed $7.6 million to 2006 pre-tax income versus a deficit of $(6.7) million in 2005. The major factor contributing to the $78.2 million improvement in earnings was the sale of certain of our non-core assets including all of our shareholdings in Moto Goldmines Limited and the majority of our shareholdings in EURO Ressources S.A..

Improved gold prices were the major driver for the improved operating margins in 2006. Consolidated gold revenue increased by $32.9 million despite gold sales in 2006 being only marginally increased relative to gold sales in 2005. Gold prices averaged $607 per ounce in 2006 compared to $446 per ounce in 2005.

Looking forward, we forecast total gold sales in 2007 of 390,000 ounces at an average cash operating cost of $389 an ounce, benefiting from a partial year contribution from the Bogoso Sulfide Expansion Project. -- www.cnxmarketlink.com