Golden Star Completes Acquisition of Wassa

DENVER, Sept. 16 /CNW/ -- Golden Star Resources Ltd. (Amex: GSS, TSE: GSC) ("Golden Star" or the "Company") is pleased to announce that it has now completed the acquisition of a 90% beneficial interest in the Wassa gold mine ("Wassa") in Ghana.

In completing the Wassa acquisition, Golden Star has also reached agreement with the syndicate of lenders, which had committed to provide the acquisition funding for Wassa, to allow Golden Star to: (i) acquire, at a discount of 27.5%, approximately $2.2 million of the $4 million debt facility put in place to fund the initial acquisition payment, and (ii) convert 100% of the $5 million debt facility put in place to fund the deferred purchase payment into a gold production linked payment. The gold production payment will be equal to $8.00 per ounce on future production from Wassa, up to a cap equal to $5.5 million, being the amount of the debt facility that was replaced plus an additional amount to reflect the interest that would otherwise have been paid on the debt facility. The agreement on the conversion of the debt is subject to the further approval of the Bank of Ghana, but this approval has no impact on the completion of the acquisition.

Peter Bradford, President and CEO of Golden Star said: "We are very pleased to finalize the Wassa acquisition so that we can commence our feasibility study and development program in earnest. The Company presently has five drill rigs at work on the property, so the exploration program is already in high gear. We are also pleased to have been able to reach agreement on the restructuring of the financing arrangements for the acquisition funding which will allow Golden Star to continue with minimal debt on its balance sheet".

Golden Star holds a 90% equity interest in the Bogoso/Prestea open-pit gold mine and a 45% managing equity interest in the Prestea underground mine in Ghana. In addition, we have other gold exploration interests in West Africa as well as the Guiana Shield in South America. Golden Star currently has approximately 84 million shares outstanding and is listed on the Toronto Stock Exchange under the symbol "GSC" and on The American Stock Exchange under the symbol "GSS". The Company also trades on the Berlin Stock Exchange under the ticker symbol "GS5".

The statements contained in this press release are both historical and forward-looking in nature. The forward-looking statements involve risks and uncertainties including those relating to exploration, the establishment of reserves, the recovery of any reserves, future gold production and production costs, and future permitting dates for additional sources of ore. Please refer to a discussion of these and other risk factors in Golden Star's Form 10-K and other Securities and Exchange Commission filings.

For further information, please contact:

GOLDEN STAR RESOURCES LTD. +1 800 553 8436

Peter Bradford President and CEO +1 303 894 4613

Allan Marter Chief Financial Officer +1 303 894 4631

For further information: Peter Bradford, President and CEO, +1-303-894-4613, or Allan Marter, Chief Financial Officer, +1-303-894-4631, both of Golden Star Resources Ltd. This press release concerns more than one organization. To view releases from one of these organizations, please select from below