GOLDEN STAR ANNOUNCES CLOSING OF ST. JUDE ACQUISITION
Denver, Colorado, December 21, 2005: Golden Star Resources Ltd. (TSX: GSC; AMEX: GSS) announced that it has today completed the acquisition of St. Jude Resources Ltd. The principal assets of St. Jude are the Hwini-Butre and Benso projects, which are located at the southeastern end of the Ashanti gold belt region in Ghana and within trucking distance of Golden Star’s Wassa mine. St. Jude also owns other exploration properties in Ghana, Burkina Faso and Niger, which are complementary to Golden Star’s exploration focus in West Africa
The acquisition was completed by way of a court-sanctioned plan of arrangement in which every one common share of St. Jude was exchanged for 0.72 of a Golden Star common share. The former St. Jude shareholders now hold approximately 18% of the outstanding common shares of Golden Star. Concurrent with the completion of the acquisition, Michael Terrell, the President and Chief Executive Officer of St. Jude, became a director of Golden Star. BMO Nesbitt Burns Inc. acted as financial advisor to Golden Star and Salman Partners Inc. and Haywood Securities Inc. acted as joint financial advisors to St. Jude.
About Golden Star
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 174 million common shares outstanding following the acquisition of St. Jude.
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 Golden Star's expected production in 2005 and 2007.
Factors that could cause actual results to differ materially 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.
For further information, please contact: GOLDEN STAR RESOURCES LTD. +1 800 553 8436 Peter Bradford, President and CEO Allan Marter, Chief Financial Officer
