Golden Star's Acquisition of Prestea on Hold

Golden Star Resources Ltd. announces that the Government of Ghana has advised Barnato Exploration Limited of its intention to abrogate Barnex's mining and related rights in Ghana, including its rights to the Prestea mining lease. As a result of this decision by the Government of Ghana, Golden Star and Barnex will allow their August 3, 2000 letter of intent relating to the acquisition by Golden Star of a 90% interest in the Prestea gold project to expire as scheduled on November 17, 2000.

Golden Star is contacting senior governmental officials in Ghana to assess the situation and, once it has gathered all relevant information, will promptly make the decisions to deal with this situation that are in the best interest of its shareholders.

In reaction to the news, Peter Bradford, President and C.E.O. of Golden Star, said, ``Our Company has a good track record in Ghana which has been achieved through the turnaround in performance at its 70% owned Bogoso gold mine. We therefore continue to believe that it is in the best interest of all the stakeholders, that Golden Star's modern, large scale processing facilities at Bogoso be consolidated with the gold ore reserves at Prestea and will continue to work toward that goal.''

The Prestea property is located immediately south of the Bogoso mine, in which Golden Star acquired a 70% interest in September 1999. The acquisition of Prestea was intended to add several years of oxide ore reserves to Bogoso's mine life. In the event that Golden Star is unable to secure an interest in Prestea and/or to discover any additional ore reserves at Bogoso, the Bogoso plant will continue to process oxide ore until the end of 2001, but oxide ore mining operations at Bogoso will be discontinued in the first half of 2001. In the meantime, studies for the Bogoso sulfide project continue and, depending on the gold price, a final bankable feasibility study should be completed by the end of April 2001.

Golden Star is a gold and diamond exploration and development company, which holds a 70% equity interest in the Bogoso gold mine in Ghana and a 30% equity interest in the Omai gold mine in Guyana. The Company continues to evaluate, with partner Cambior Inc., options for the Gross Rosebel gold project in Suriname, potentially a low cost development with estimated cash cost under $200/ounce. Golden Star also holds gold and diamond exploration interests in the Guiana Shield of South America and in West Africa. Golden Star currently has approximately 37 million shares outstanding. The Company is listed on the Toronto Stock Exchange (under the symbol ``GSC'') and the American Stock Exchange (under the symbol ``GSR'')

For more information contact Peter Bradford, President and CEO, 303-894-4613, or Allan Marter, Chief Financial Officer, 303-894-4631, both of Golden Star Resources Limited.