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Golden Star Closes Its Bought Deal Equity Offering

Posted on: Friday, 30 December 2005, 09:00 CST

Golden Star Resources Ltd. (TSX: GSC) (AMEX: GSS) advised that it has today closed its bought deal equity offering announced on December 8, 2005. The total offering was for approximately 31.59 million common shares at Cdn$2.80 per common share and realized gross proceeds of approximately Cdn$88.45 million. The common shares were offered in Canada and the United States by an underwriting syndicate consisting of BMO Nesbitt Burns Inc., Blackmont Capital Inc. and Wellington West Capital Markets Inc., and their respective U.S. affiliates.

The net proceeds of the offering are to be used to fund the development of the Company's mineral projects, primarily for the completion of the Bogoso sulfide expansion project at its Bogoso/Prestea property in Ghana, and for general corporate purposes.

Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% 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's production is expected to increase to over 500,000 ounces in 2007, compared to expected production of approximately 200,000 ounces in 2005. Golden Star has approximately 206 million common shares outstanding following completion of the offering

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 use of proceeds from the sale of shares, the indication that the proceeds from this offering will be sufficient to complete the Bogoso sulfide expansion project, and Golden Star's expected production in 2005 and 2007. Factors that could cause results to differ from those anticipated include unexpected events during construction and start-up of the Bogoso expansion; variations in ore grade, tonnes mined and crushed or milled from those anticipated; variations in relative amounts of refractory, non-refractory and transition ores; delay or failure to receive government or regulatory approvals relating to increased production; timing and availability of external financing on acceptable terms; technical, permitting, mining or processing issues; and fluctuations in gold prices and costs. There can be no assurance that future developments affecting Golden Star will be those anticipated by management. Please refer to the discussion of these and other factors in Golden Star's 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. Golden Star expects that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While Golden Star may elect to update these estimates at any time, Golden Star does 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.

Source: Business Wire

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