Golden Star Resources : Reports Third Quarter 2016 Results

Cautionary note regarding forward-looking information

This press release contains 'forward looking information' within the meaning of applicable Canadian securities laws and 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning the business, operations and financial performance and condition of Golden Star. Generally, forward-looking information and statements can be identified by the use of forward-looking terminology such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', 'believes' or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved' or the negative connotation thereof. Forward-looking information and statements in this press release include, but are not limited to, information or statements with respect to: the ability to achieve consolidated 2016 full year production, cash operating cost and capital expenditure guidance; expected reductions in all-in sustaining costs; the ability to achieve, and the timing of, commercial production and full production at Wassa Underground and Prestea Underground; the extension of mine life at the Prestea Open Pits; production increases, and the quantum of such increases, at F Shoot; the transformation of the Company and its risk profile and accompanying production growth and reduced costs; the number of stopes to be mined at Wassa Underground during the fourth quarter of 2016, and the timing for accessing and mining the B Shoot and its impact on production; the timing of the first stope at Prestea Underground; the impact of seasonality on the Company's production profile when the underground mines are in production; expected production during the fourth quarter of 2016; the ability of the Company to target the best areas of mineralization with minimal internal dilution when five F Shoot stopes are mined during the fourth quarter of 2016; Wassa Underground and consolidated Wassa production during 2016; production from the F Shoot and the B Shoot minimizing the risk of the Wassa Underground operations during the first half of 2017; average annual life of mine combined production from Wassa Main Pit and Wassa Underground; total 2016 production from the Prestea Open Pits; Prestea cash operating cost guidance for 2016; the receipt of an environmental permit for Mampon; the start of mining at Mampon and the timing thereof; higher grade ore from Mampon being blended with ore from the Prestea Open Pits, and the impact on Golden Star's cash flow in 2017; the commencement of ore body development at Prestea Underground in the fourth quarter of 2016; the safety and efficiency benefits of Alimak stoping over conventional shrinkage mining; the exploration upside potential at Prestea Underground; the delineation of further Mineral Reserves at Prestea Underground; the timing from completing the F Shoot drilling and the subsequent focus of the drilling program on the B Shoot; fourth quarter of 2016 drilling at Prestea South pit and subsequent Mineral Resource definition drilling at such pit; the time for updating the Company's mineral exploration strategy; the opportunity to extend the mine lives of both Wassa and Prestea through further drilling; the ability to convert Inferred Mineral Resources to Indicated Mineral Resources; the potential to increase Golden Star's Mineral Resources outside of the existing Mineral Resource footprint; ramping up the Company's exploration program in order to expand its Mineral Resource and Mineral Reserve base and increase the lives of its operations; the Company's ability to repay its remaining outstanding debt obligations through future cash flow; the expected decrease in cash operating costs as both underground development projects commence commercial production and the Company completes its transformation into a high grade, low cost gold producer; sustaining, development and total capital expenditures for 2016; future work to be completed at Prestea Underground Gold Mine; and the ability of the Company to repay the 5% Convertible Debentures when due.

Forward-looking information and statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Golden Star to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Golden Star will operate in the future, including the price of gold, anticipated costs and ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of Golden Star to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: risks related to international operations, including economic and political instability in foreign jurisdictions in which Golden Star operates; risks related to current global financial conditions; risks related to joint venture operations; actual results of current exploration activities; environmental risks; future prices of gold; possible variations in Mineral Reserves, grade or recovery rates; mine development and operating risks; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and risks related to indebtedness and the service of such indebtedness. Although Golden Star has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are made as of the date hereof and accordingly are subject to change after such date. Forward-looking information and statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of the Company's operating environment. Golden Star does not undertake to update any forward-looking information and statements that are included in this news release except in accordance with applicable securities laws.

Technical Information and Quality Control

The technical contents of this press release, in relation to Mineral Resources, have been reviewed and approved by S. Mitchel Wasel, BSc Geology, a 'Qualified Person' pursuant to National Instrument 43-101 ('NI 43-101'). Mr. Wasel is Vice President Exploration for Golden Star and an active member of the Australasian Institute of Mining and Metallurgy.

The technical contents of this press release, in relation to Mineral Reserves, have been reviewed and approved by Dr. Martin Raffield, P. Eng., a 'Qualified Person' pursuant to NI 43-101. Dr. Raffield is Senior Vice President, Project Development and Technical Services for Golden Star.

Additional scientific and technical information relating to the mineral properties referenced in this news release are contained in the following current technical reports for those properties available at www.sedar.com : (i) Wassa - 'NI 43-101 Technical Report on feasibility study of the Wassa open pit mine and underground project in Ghana' effective date December 31, 2014; (ii) Prestea Underground - 'NI 43-101 Technical Report on a Feasibility Study of the Prestea Underground Gold Project in Ghana' effective date November 3, 2015; and (iii) Bogoso - 'NI 43-101 Technical Report on Resources and Reserves Golden Star Resources Ltd., Bogoso Prestea Gold Mine, Ghana' effective date December 31, 2013.

Cautionary Note to U.S. investors

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ materially from the requirements of United States securities laws applicable to U.S. companies. The terms 'mineral reserve', 'proven mineral reserve' and 'probable mineral reserve' are Canadian mining terms as defined in accordance with NI 43-101. These definitions differ from the definitions of the Securities and Exchange Commission (the 'SEC') set forth in Industry Guide 7 under the United States Securities Exchange Act of 1934, as amended (the 'Exchange Act'). Under SEC Industry Guide 7 standards, mineralization may not be classified as a 'reserve' unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.

In addition, the terms 'mineral resource', 'measured mineral resource', 'indicated mineral resource' and 'inferred mineral resource' are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. 'Inferred mineral resources' have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of 'contained ounces' in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute 'reserves' by SEC Industry Guide 7 standards as in place tonnage and grade without reference to unit measures.

For the above reasons, information contained in this news release or in the documents referenced herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

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See 'Non-GAAP Financial Measures' information on page 19

SOURCE Golden Star Resources Ltd.