Golden Star Resources provided an update on exploration activities at its Wassa gold mine in Ghana.

Highlights of this announcement are as follows:

Step out drilling confirms that Wassa ore body is open down plunge

Significant grades and widths intercepted up to 250 m south of previously known mineralization

BSDD 290B – 18.5 m grading 6.8 g/t Au

BSDD 295M – 20.3 m grading 3.5 g/t Au

Infill drilling shows wide zones of significant grades between existing high grade drill intercepts

BSDD 296 – 19.9 m grading 15.3 g/t Au

BSDD 299 – 38.2 m grading 3.5 g/t Au

BSDD 298A – 58.6 m grading 4.0 g/t Au

Current drilling program expected to be completed and assays received by mid-2014

Preliminary economic assessment of underground mining at Wassa to commence shortly

Sam Coetzer, President and CEO of Golden Star commented:

"We are very encouraged by the results from the deep drilling program at Wassa announced today, which adds support to our long held view of Wassa’s remarkable potential. Both the step out and infill drill results continue to indicate that significant additional resources exist to the south of the current Wassa Main pit, where a high grade underground mine could be developed. Our current resource of 2.6 million ounces is over a strike length of 1050 meters. Step out hole BSDD295M is 250 meters down strike from the existing resource. A conceptual study, completed in 2013, found underground mining of this high grade deposit to be economically viable and these drill results further support these findings. We expect to complete this phase of drilling by mid-2014 and the results of the drilling program combined with the planned preliminary economic assessment, will allow us to make a decision on a full feasibility study."

The Wassa gold mine is in the western region of Ghana. It has a carbon-in-leach processing plant with a rated capacity of 2.7 million tonnes per annum. There are currently two operational pits at Wassa – the Wassa Main pit and the Father Brown pit. In 2014, we plan to complete mining in the Father Brown pit by the second quarter; thereafter mining will be from the Wassa Main pit.

In November 2013, the Company announced an increased Indicated Mineral Resource estimate at Wassa of 46.4 million tonnes at an average grade of 1.75 g/t Au for 2.6 million ounces. This was subsequent to the completion of a drilling program in June 2013. Further drilling has been ongoing since November 2013. Full drill results, plans, and sections from the drilling program are available at www.gsr.com/Operations/Wassa.asp. Drilling widths in this press release are estimated true widths in meters ("m") and grades are grams of gold per tonne ("g/t Au").

The current drilling program at Wassa is focused on two goals – approximately 20,000 m of infill drilling of the current resource to further define grades and continuity and step out drilling on 200 meter drill fences to the south to determine the extension of the high grade mineralization below the current Wassa Main pit design. This drilling program forms the bulk of Wassa’s $6 million development capital budget for 2014.

Step out Drilling

Since the initiation of this drilling campaign in November 2013, two step out holes have been successful in extending the mineralized trend to the south of the Wassa Main pit. Hole BSDD290B drilled on section 19500 N, 50 m to the south of the last drilling, intersected 18.5 m at 6.8 g/t Au from 530 m drilled depth; and hole BSDD295M on section 19300 N, 200 m to the south, intersected 20.3 m at 3.5 g/t Au from 649.4 m drilled depth. These high grade intersections, up to 250 m to the south of previous drilling, indicate that the Wassa deposit remains open down plunge and demonstrate the potential to develop a high grade resource at depth.

Infill Drilling

Several of the infill drill holes have confirmed wide zones of elavated grades between existing high grade drill intercepts. Drill holes BSDD291, BSDD293, BSDD294, BSDD297 and BSDD298A were planned follow-up holes delineating the high grade intersections drilled previously in holes BSDD256 (52.9 m grading 4.3 g/t Au) and BSDD260 (62.8 m grading 4.1 g/t Au) located on sections 19600 N and 19675 N respectively (see the Company’s press release dated July 18, 2013). Holes BSDD293, 291 and 298A all confirmed high grade mineralization including 58.6 m at 4.0 g/t Au in BSDD298A drilled 75 m down dip of hole BSDD260 on section 19675 N. Drill hole BSDD293 and BSDD291 were both drilled on 25 m step out fences south of section 19600 N and hole BSDD256.

In some instances infill drill results have intersected higher gold grades than those in earlier drill holes. Hole BSDD296 is an example of this where a 15.3 g/t Au intersection over 19.9 m was drilled between two holes with narrower widths and lower grades. Conversely, hole BSDD299 intersected lower grades with 38.2 m grading 3.5 g/t 30 m down dip of BSDD226 (32.6m grading 7.5 g/t Au) on section 19800 N.

The current drilling program is scheduled to be completed in the second quarter of 2014. The Company plans to update the 2013 year end Mineral Reserve and Mineral Resource estimates for Wassa in February 2014, which will not include drill results from this recent program. A revised Mineral Resource estimate for Wassa, including all results from the drilling program, is expected to be completed in the third quarter of 2014.

Wassa Underground

Although the current Mineral Resource assumes a large open pit mine design at Wassa (as will the updated Mineral Reserve), the Company is considering the option of mining the higher grade portion of the Mineral Resource at depth using underground methods. Accessing this high grade material earlier in the life of mine of this deposit would bring cash flows forward and enhance the project’s economics.

Using the current Mineral Resource models, which do not incorporate the recent drilling results, the Company is preparing a preliminary economic assessment of this underground mining option. Should the results of this assessment prove favourable, a full feasibility study on a potential underground mine at Wassa will commence in the third quarter of 2014.

The Company estimates that subsequent to the completion of a successful feasibility study it would take approximately 18 months to bring an underground mine at Wassa into commercial production.