focused on cash flow generations1.q4cdn.com/.../11/gsr_merged_nov_2017_presentation.pdf · 2017....

WASSA OPERATIONS

SITE VISITNOVEMBER 2017

Focused on Cash Flow Generation

2

Disclaimer

NYSE: GSSTSX: GSC

SAFE HARBOUR: Some statements contained in this presentation are forward-looking statements or forward-looking information (collectively, “forward-lookingstatements”) within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Investors are cautionedthat forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements includecomments regarding: production, cash operating cost, all-in sustaining cost and capital expenditure guidance for 2017; the potential expansion of production at WassaUnderground; the timing for the release of further drilling results from Wassa Underground; the targeted 2017 mining rate at Wassa Underground;; the ability to conductadditional drilling at Wassa Underground and the timing for completion thereof; the impact on grade as mining operations move further into B Shoot; the potential drillingtargets in 2017; the impact of Wassa Underground and Prestea Underground on the Company’s production profile, cost profile, cash operating cost per ounce and AISCper ounce; the ability to mine via longitudinal stoping and transverse stoping at B Shoot at Wassa Underground and the timing and impact thereof; the achievement of2017 production; the ability to expand Mineral Reserves and Mineral Resources and extend the life of mine at Prestea Underground and Wassa Underground throughexploration; and the timing for incurring 2017 capital expenditures. Factors that could cause actual results to differ materially include timing of and unexpected events atthe Prestea and/or the Wassa processing plants; variations in ore grade, tonnes mined, crushed or milled; delay or failure to receive board or government approvals andpermits; construction delays; the availability and cost of electrical power; timing and availability of external financing on acceptable terms or at all; technical, permitting,mining or processing issues, including difficulties in establishing the infrastructure for Wassa Underground or Prestea Underground, inconsistent power supplies, plantand/or equipment failures and an inability to obtain supplies and materials on reasonable terms (including pricing) or at all; changes in U.S. and Canadian securitiesmarkets; heavy rainfall and flooding of underground mines; and fluctuations in gold price and input costs and general economic conditions. There can be no assurance thatfuture developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Annual InformationForm for the year ended December 31, 2016 filed on SEDAR at www.sedar.com. The forecasts contained in this presentation constitute management's current estimates,as of the date of this presentation, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actualresults will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update anyestimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this presentation representmanagement's estimate as of any date other than the date of this presentation.

NON-GAAP FINANCIAL MEASURES: In this presentation, we use the terms “cash operating cost per ounce”, “All-In Sustaining Cost per ounce”, “AISC per ounce”,“Adjusted Net Income”, “Adjusted Net Income/Share”, “Cash operating margin per ounce” and “Cash Flow from operations before working capital changes”. These termsshould be considered as Non-GAAP Financial Measures as defined in applicable Canadian and United States securities laws and should not be considered in isolation or as asubstitute for measures of performance prepared in accordance with International Financial Reporting Standards (“IFRS”). “Cash operating cost per ounce” for a period isequal to the cost of sales excluding depreciation and amortization for the period less royalties, the cash component of metals inventory net realizable value adjustmentsand severance charges divided by the number of ounces of gold sold (excluding pre-commercial production ounces) during the period. “All-In Sustaining Costs per ounce”commences with cash operating costs and then adds sustaining capital expenditures, corporate general and administrative costs, mine site exploratory drilling andgreenfield evaluation costs and environmental rehabilitation costs, divided by the number of ounces of gold sold (excluding pre-commercial production ounces) during theperiod. This measure seeks to represent the total costs of producing gold from operations. These measures are not representative of all cash expenditures as they do notinclude income tax payments or interest costs. In order to indicate to stakeholders the Company's earnings excluding the non-cash (gain)/loss on the fair value ofdebentures, non-cash impairment charges and severance charges, the Company calculates “Adjusted Net Income” and “Adjusted Net Income per share” to supplement thecondensed interim consolidated financial statements. “Cash operating margin per ounce” is calculated as gold price minus cash operating cost per ounce. “Cash flow fromoperations before working capital changes” is calculated by subtracting the "Changes in working capital" from "Net cash provided by operating activities" as found in thestatements of cash flows. These measures are not necessarily indicative of operating profit or cash flow from operations as would be determined under IFRS. Changes innumerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site general andadministrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar to the measures of other gold miningcompanies, but may not be comparable to similarly titled measures in every instance. Please see our “Management’s Discussion and Analysis of Financial Condition andResults of Operations for the three and six months ended June 30, 2017” for a reconciliation of these Non-GAAP measures to the nearest IFRS measure.

INFORMATION: The information contained in this presentation has been obtained by Golden Star from its own records and from other sources deemed reliable, howeverno representation or warranty is made as to its accuracy or completeness. The technical information relating to Golden Star's material properties disclosed herein is basedupon technical reports prepared and filed pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and other publicly availableinformation regarding the Company, including the following: (i) “NI 43-101 Technical Report on a Feasibility Study of the Wassa Open Pit Mine and Underground Project inGhana” effective December 31, 2014; (ii) “NI 43-101 Technical Report on Resources and Reserves, Golden Star Resources Ltd., Bogoso Prestea Gold Mine, Ghana”effective December 31, 2013, and (iii) “NI 43-101 Technical Report on a Feasibility Study of the Prestea Underground gold project in Ghana” effective November 3, 2015.Additional information is included in Golden Star's Annual Information Form for the year ended December 31, 2016 which is filed on SEDAR. Mineral Reserves wereprepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the Company. Dr. Raffield is a "Qualified Person" as defined by NI 43-101. The Qualified Person reviewing and validating the estimation of the Mineral Resources is S. Mitchel Wasel, Golden Star Resources Vice President of Exploration.

CURRENCY: All monetary amounts refer to United States dollars unless otherwise indicated.

3

Wassa Gold Mine: Overview

NYSE: GSSTSX: GSC

Reducing risk and fast-tracking cash flow

• Open pit and underground mine - GSR

commenced pit production in 2005 and

underground in Q1 2017

• Mineral Reserves of 1.3Moz - strong Inferred

conversion potential

• 2.7 Mtpa carbon-in-leach plant - conventional

processing method with robust recovery rate of

94%

• Currently mining and processing 5,200 tonnes

per day from Wassa Main pit and 2,200t per

day from Wassa Underground

• Underground-only production in 2018 focusing

on high margin ounces at 2,700 to 3,000

tonnes per day

• Major open pit push back delayed until 2019

4

Wassa: Q3 2017 Highlights

NYSE: GSSTSX: GSC

• Total production from Wassa of 31,724oz in Q3 2017 and 95,233oz in first 9 months of 2017

• Wassa’s cash operating cost1 in Q3 2017 was $856/oz, a 13% decrease compared to Q2 2017 ($979/oz)

• Production from Wassa Underground of 15,877oz in Q3 2017, a 19% increase compared to Q2 2017

• Wassa Underground’s production accounted for 50% of Wassa’s gold production in Q3, compared to 41% in Q2 2017 – underground continued to ramp up

• Wassa Underground’s mining efficiency has increased by 38% from a rate of 1,600 tpd in Q2 2017 to over 2,200tpd in Q3 2017

1. See note on slide 2 regarding “Non-GAAP Financial Measures”

42% increase in gold production compared to

Q3 2016

23% decrease in cash operating cost per ounce1

compared to Q3 2016

5

First 9 Months of 2017: Operating Results

NYSE: GSSTSX: GSC

Production

First 9 months of 2017: 95Koz

2017 Guidance: 135-150Koz

5NYSE: GSSTSX: GSC

Cash Operating Cost1

First 9 months of 2017: $926/oz

2017 Guidance: $880-935/oz

1. See note on slide 2 regarding Non-GAAP Financial Measures

942 979 856

0

200

400

600

800

1,000

1,200

Q1 17 Q2 17 Q3 17

$/

oz

Wassa 2017 Cash Operating Cost Per Ounce1

11 13 16

20 19

16

0

5

10

15

20

25

30

35

Q1 17 Q2 17 Q3 17

Go

ld o

un

ces (

‘00

0)

Wassa 2017 Gold Production

WUG Open pit

MINERAL RESERVES

Dec 31, 2016 Proven and Probable Mineral Reserve

Tonnes Grade Ounces

Wassa Main Pit 11,264,000 1.56 565,000

Wassa Underground

5,477,000 4.21 742,000

Stockpiles 695,000 0.96 21,000

WASSA TOTAL 17,436,000 2.37 1,328,000

6

Wassa: Mineral Reserves and Resources

NYSE: GSSTSX: GSC

MINERALRESOURCES

Dec 31, 2016 Measured and Indicated Resources

Tonnes Grade Ounces

Wassa Main Pit 27,500,000 1.43 1,265,000

Wassa Underground

13,499,000 3.82 1,656,000

Wassa Other 3,348,000 3.78 407,000

WASSA TOTAL 44,347,000 2.33 3,328,000

7

Operational Successes

NYSE: GSSTSX: GSC

• Production from Wassa Underground is stabilizing and will improve as the new fleet

becomes available early in 2018

• The “Continuous Improvement Programme” has been implemented encompassing

the entire mine staff

• Decision has been taken to defer Cut 3 of Wassa Main Pit and to focus on higher

margin, underground production from early 2018 onwards

• LTI Free Days: 150 days

• LTI Free man-hours: 2.8 million

• Won the following awards at 2017 Safety andFirst Aid competition:

• Best Mine team at the Zone 1 Safety& First Aid Competition

• Best community team at the Zone 1Safety & First Aid Competition

• Weekly “Walk the Talk” intervention bymanagement; out of 740 issues identifiedduring the year-to-date, 520 have beenaddressed with proposed actions completed

• Mine rescue training gallery, with designconsiderations based on Wassa and PresteaUnderground settings, is complete and willserve both mine rescue teams

8

A Strong Safety Culture

NYSE: GSSTSX: GSC

Wassa’s award winning safety and first aid team

9

GEOLOGY

10

Wassa Geology

NYSE: GSSTSX: GSC

• The Wassa Gold deposit is hosted in Birimian meta sedimentary and volcanic rocks

• Dating has shown it is the oldest deposit in the Ashanti Belt

• Initial gold mineralization has been affected by two major folding events which controlscurrent geometry of ore bodies

• Gold has been remobilized during the first tight folding event and it is these highergrade fold closures which are being mined underground

WASSA UNDERGROUND

11

• Commercial production commenced onJanuary 1, 2017

• Total development advance: 4,309m(2017 YTD plus Q4 2017 forecast)

• 2017 production guidance: 70-80,000oz

• Production from F Shoot completed

• Mining rates have been better thanexpected - target of 1,400 tpd for 2017but actual rate of over 1,800 tpd in first9 months of the year

• Targeting 2,700-3,000tpd in 2018 as anunderground-only operation

• The upper portion of the B Shoot is beingmined and definition drilling for nextphase is in progress

12

Wassa Underground: Current Status

NYSE: GSSTSX: GSC

1,710 1,579

2,301

0

500

1,000

1,500

2,000

2,500

Q1 17 Q2 17 Q3 17

Ore T

on

nag

e

Wassa Underground: Average mining rate per day achieved

13

Wassa Underground Growth Opportunities

NYSE: GSSTSX: GSC

Potential to optimize production and reduce costs through the transition to a higher grade, underground-only operation

• Higher grade ore in the underground mine

(B Shoot) is now being exposed and will be

realized in production results in Q4 2017

• Potential to expand production further

through:

• Exploration upside – Inferred Mineral

Resources of 1.9Moz (14.5Mt at 4.16 g/t

Au)

• Encouraging results down dip of the

current underground workings and the

ore body remains open at depth

• Fully utilizing capacity of infrastructure

– excess plant capacity and decline

capacity

14 NYSE: GSSTSX: GSC

Wassa Underground Mine

Current development and stoping

As-built F Shoot stoping

As-built pit

As-built B Shoot stoping



Dec 2017



Dec 2018

Hangingwall definition drilling drive in 2018 for Panel 2 and 3

Panel 1



Dec 2019

Cut 3 pushback would have started in 2019

Panel 1

Panel 2

Panel 3



Dec 2020

Hangingwall definition drilling drive in 2020 for Inferred Resource



Dec 2021

Inferred ore mining expected to continue down dip.



Dec 2022

Inferred ore mining expected to continue down dip.

• 4 Volvo Trucks have arrived in Ghana and are on site being commissioned by VolvoSpecialist

• Additional Solo longhole stope drill on site and being commissioned

• Additional Loader R2900G expected on site in mid-January 2018

21

Planned Expansion of Mining Fleet

NYSE: GSSTSX: GSC

Larger mining fleet is expected to allow 2,700-3,000 tpd to be achieved consistently

• Raise bore ventilation holing in BShoot pit is expected to beimplemented in Q1 2018

• Raise bore waste passes to supplywaste for stope support are expectedto be put in place in Q1 2018

• Second portal expected to becompleted by Q2 2018

• Paste fill being evaluated as thepreferred stope support for Panel 2and below - this will enable 4,000 tpdto be mined from underground

22

Planned Infrastructure Upgrades

NYSE: GSSTSX: GSC

Upgrades being implemented to allow for a future mining rate of 4,000 tpd from existing decline

23

WASSA MAIN PIT

• Conventional bench mining

• Production of 55Koz from Wassa Main Pit infirst 9 months of 2017

• Cut 2 will finish in December 2017 and Cut hasbeen deferred

Open Pit Fleet

• 3 Liebherr 984 Backhoe excavators

• 10 CAT 777 Trucks

• 3 CAT D9 dozers

• 4 Production rigs, 2 Sandvik and 2 Atlas Copco

• Fleet capacity ~650,000 tonnes per month

24

Wassa Main Pit

NYSE: GSSTSX: GSC

Cut 2 Pit Redesign

Cut 3 East PitOutline

Cut 3 West PitOutline

419 Waste Dump

Expansion

Dump CapacityVol = 28.5 MbcmTons = 51.3 Mt

WassaUnderground

To ROM PadTo ROM Pad

Wassa Main Pit & Waste Dump

25NYSE: GSSTSX: GSC

Wassa Main Pit: Deferred Cut 3 Pushback

Cut 3 Phase 1

Cut 3 Phase 2

Decision taken to defer the Cut 3 pushback until a time when the gold price is higher

26NYSE: GSSTSX: GSC

27

PROCESSING PLANT

28

WASSA PROCESSING PLANT

DUMP TRUCK

ROM

FE WHEEL LOADER

ROM Bin

Vibrating

GrizzlyApron

feeder

CV01

CV02weightometer

weightometer

weightometer

Single

toggle Jaw

CrusherSecondary

Screen

Secondary

cone Crusher

CV10

CV04

CV03 CV05

CV11

Belt feeders X4

COS

Ball mill 2

Ball mill 1 scats

scats

Sump 2

Sump 1

Splitter

box

Primary Cyclone

cluster 2

Primary Cyclone

cluster 1

Knelson conc 2

Knelson conc 1

Scalping screen 1

Scalping screen 2

Concentrate tk 2

Concentrate tk 1

Shaking table

Trash screen

Sump 3

Sump 4

Sump 5 with

cyanide addition

Pre-leach High rate Thickener

Secondary Cyclone

cluster 1

Secondary Cyclone

cluster 2

Thickener overflow tank

Electrowinning cell (3x)Strip solution

tank

Elution

column

Calcine oven (2x)

Induction furnace

Bullion bars

Acid wash

cone

Recovery

screen

Storage facility

Carbon Safety ScreenCIL tanks

Carbon basket

Sump 6

Regeneration Kiln Barren carbon hopper

Quench carbon screen

U/F

O/F

O/F

O/F

U/F

O/F

U/F

U/F

O/F

U/S

U/S

U/S

O/S

O/SO/S

Trash

material

CV12

CV13

Quaternary

cone

Crushers X4

Tertiary

Screens X2

Tertiary

bin

Quaternary

bin

CV08 & 09

CV07

CV06

CV16CV17

Tertiary

cone

Crushers

X2

weightometer

Lime SiloO/F

U/F

U/F

U/F

Head

Autosampler

Tails

Autosampler

Recovery: 94%Throughput: 7,600t/day

Mill availability: 95%

Wassa Processing Plant

NYSE: GSSTSX: GSC

29

2017 EXPLORATION

30

Wassa Underground Extended Through Step Out Drilling

NYSE: GSSTSX: GSC

HOLE IDFrom (m)

To (m)

DrilledWidth (m)

Grade Au

(g/t)

B Shoot North

BS17DD002 294.0 309.0 15.0 18.9

BS17DD002 300.0 302.0 2.0 91.8

BS17DD003 289.9 314.0 24.1 7.3

B Shoot South

BS17DD385M 1001.0 1024.8 23.8 6.1

BS17DD385M 1018.0 1020.0 2.0 20.2

BS17DD385M 1049.3 1071.0 21.7 5.3

WASSA UNDERGROUND

Latest drilling results confirm high grade B Shoot extends to the north and south and remains open in both directions

Results confirm B Shoot extendsapproximately 50m to the north ofcurrent planned stoping area and 200mto the south of Wassa’s Inferred MineralResources

Indicates that Wassa is a larger depositthan previously estimated - potential toexpand production in the short termand longer term

B Shoot South drilling will comprise7,000m in total and B Shoot Northcomprised 4,164m

Further drilling results expected fromWassa Underground during Q4 2017

First exploration program at WassaUnderground since 2014

31

B Shoot South: Ore Body Remains Open Down Plunge

NYSE: GSSTSX: GSC

SN

BS17DD385m1

23.8m @ 6.1 g/t

21.7m @ 5.3 g/t

18900N19100N19300N

New 200m

step out fence

– results from

1st mother

hole received

B Shoot planned

stopes

B Shoot current development

Wassa Main Pit

Previous

step out

drilling

holes

Inferred

Mineral

Resource

BS17DD0021

15.0 m @ 18.9 g/t

BS17DD0031

24.1m @ 7.3 g/t

400 m

F Shoot

Encouraging results from first mother hole of B Shoot South step out hole; howeverfurther results needed to gain comprehensive understanding of the ore body’sextension

1. All widths in this diagram are drilled widths.

32NYSE: GSSTSX: GSC

N S

Promising results from 15 holes in B Shoot North – ore body is open to the north

Represents the potential to add ounces to Wassa Underground’s mine plan in thenear term

B Shoot North: Potential To Increase Near-Term Production

Conclusion

33

34

Wassa Gold Mine: Summary

NYSE: GSSTSX: GSC

• Focusing on optimizing the mine to maximize margin and cash flow generation

• Continuing to improve the understanding of the ore body with increasing depth

• Cut 3 delayed to focus on higher grade, higher margin underground ounces

• Driving continuous improvement

• Ensuring that the upgraded underground fleet is fully utilized to achieve a mining rate of 2,700-3,000 tpd in 2018

• Progressing internal study on stope support options, with long paste fill as the preferred support method

Focused on Cash Flow Generation

2

Disclaimer

SAFE HARBOUR: Some statements contained in this presentation are forward-looking statements or forward-looking information (collectively, “forward-looking statements”) within themeaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Investors are cautioned that forward-looking statements areinherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding: the expansion of production andreduction of costs at Golden Star’s projects; the exploration upside of the Company’s projects and ability of the Company to increase mine lives and Mineral Resources and MineralReserves; the ability of the Company to transform into a high grade, low cost gold producer; the impact of Prestea Underground on the Company’s production profile, cost profile, cashoperating cost per ounce and AISC per ounce; the timing for commercial production at Prestea Underground; the achievement of 2017 production; production, cash operating cost andcapital expenditure guidance for 2017; ore grade, production and capital expenditures at Mampon; the timing for commencing production at Mampon; the timing for pre-development ofMineral Resources, blasting of the first stope and commencing commercial production at Prestea Underground; the ability to expand Mineral Reserves and extend the life of mine at PresteaUnderground through exploration; the ability to convert Mineral Resources into Mineral Reserves; the timing for incurring 2017 capital expenditures; and the potential for growth of GoldenStar’s share price. Factors that could cause actual results to differ materially include timing of and unexpected events at the Bogoso/Prestea processing plants; variations in ore grade,tonnes mined, crushed or milled; delay or failure to receive board or government approvals and permits; construction delays; the availability and cost of electrical power; timing andavailability of external financing on acceptable terms or at all; technical, permitting, mining or processing issues, including difficulties in establishing the infrastructure for PresteaUnderground, inconsistent power supplies, plant and/or equipment failures and an inability to obtain supplies and materials on reasonable terms (including pricing) or at all; changes inU.S. and Canadian securities markets; heavy rainfall and flooding of underground mines; and fluctuations in gold price and input costs and general economic conditions. There can be noassurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Annual InformationForm for the year ended December 31, 2016 filed on SEDAR at www.sedar.com. The forecasts contained in this presentation constitute management's current estimates, as of the date ofthis presentation, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from theseestimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response toany particular event. Investors and others should not assume that any forecasts in this presentation represent management's estimate as of any date other than the date of thispresentation.

NON-GAAP FINANCIAL MEASURES: In this presentation, we use the terms “cash operating cost per ounce”, “all-in sustaining cost per ounce”, “AISC per ounce”, “Adjusted Net Loss”,“Adjusted Net Loss/Share”, “Cash operating margin per ounce” and “Cash Flow from/(used in) operations”. These terms should be considered as Non-GAAP Financial Measures as definedin applicable Canadian and United States securities laws and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with InternationalFinancial Reporting Standards (“IFRS”). “Cash operating cost per ounce” for a period is equal to the cost of sales excluding depreciation and amortization for the period less royalties, thecash component of metals inventory net realizable value adjustments and severance charges divided by the number of ounces of gold sold during the period. “All-in sustaining costs perounce” commences with cash operating costs and then adds sustaining capital expenditures, corporate general and administrative costs, mine site exploratory drilling and greenfieldevaluation costs and environmental rehabilitation costs, divided by the number of ounces of gold sold during the period. This measure seeks to represent the total costs of producing goldfrom operations. These measures are not representative of all cash expenditures as they do not include income tax payments or interest costs. In order to indicate to stakeholders theCompany's earnings excluding the non-cash (gain)/loss on the fair value of debentures, non-cash impairment charges and severance charges, the Company calculates “Adjusted NetEarnings/(Loss)” and “Adjusted Net Earnings/Loss) per share” to supplement the condensed interim consolidated financial statements. “Cash operating margin per ounce” is calaculated asgold price minus cash operating cost per ounce. “Cash flow from/(used in) operations” is calculated by subtracting the "Changes in working capital" from "Net cash provided by operatingactivities" as found in the statements of cash flows. These measures are not necessarily indicative of operating profit or cash flow from operations as would be determined under IFRS.Changes in numerous factors including, but not limited to, mining rates, milling rates, gold grade, gold recovery, and the costs of labor, consumables and mine site general andadministrative activities can cause these measures to increase or decrease. We believe that these measures are the same or similar to the measures of other gold mining companies, butmay not be comparable to similarly titled measures in every instance. Please see our “Management’s Discussion and Analysis of Financial Condition and Results of Operations for the 3months and 9 months ended September 30, 2017” for a reconciliation of these Non-GAAP measures to the nearest IFRS measure.

INFORMATION: The information contained in this presentation has been obtained by Golden Star from its own records and from other sources deemed reliable, however norepresentation or warranty is made as to its accuracy or completeness. The technical information relating to Golden Star's material properties disclosed herein is based upon technicalreports prepared and filed pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and other publicly available information regarding theCompany, including the following: (i) “NI 43-101 Technical Report on a Feasibility Study of the Wassa Open Pit Mine and Underground Project in Ghana” effective December 31, 2014; (ii)“NI 43-101 Technical Report on Resources and Reserves, Golden Star Resources Ltd., Bogoso Prestea Gold Mine, Ghana” effective December 31, 2013, and (iii) “NI 43-101 TechnicalReport on a Feasibility Study of the Prestea Underground gold project in Ghana” effective November 5, 2015. Additional information is included in Golden Star's Annual Information Formfor the year ended December 31, 2015 which is filed on SEDAR. Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services forthe Company. Dr. Raffield is a "Qualified Person" as defined by NI 43-101. The Qualified Person reviewing and validating the estimation of the Mineral Resources is S. Mitchel Wasel,Golden Star Resources Vice President of Exploration.

CURRENCY: All monetary amounts refer to United States dollars unless otherwise indicated.

NYSE: GSSTSX: GSC

3

Prestea Gold Mine: Overview

NYSE: GSSTSX: GSC

A well-endowed ore body that has been mined consistently for a century

• 100+ year old gold mine in south-western Ghana, 40km from Wassa mine

• 9 million ounces of gold produced during its history over a 9km strike length

• Currently in production from open pit oxide deposits (Prestea Open Pits) and pre-

commercial production from underground mine (Prestea Underground)

• Construction and pre-development of high grade Prestea Underground Gold Mine

completed – robust against sensitivities of gold price, grade and tonnage

• Underground stope blasting commenced in September 2017 - commercial production

expected in Q4 2017

• Prestea Open Pits anticipated to complete production in early 2018

• Currently processing 4,400 tpd in processing plant and expecting to reduce to 650

tpd of high grade ore in 2018

4

Prestea: Q3 2017 Highlights

NYSE: GSSTSX: GSC

• Record quarterly production for fifth consecutive quarter

• Total production from Prestea of 42,103oz in Q3 2017 and 100,563oz in first 9months of 2017

• Prestea’s cash operating cost1 in Q3 2017 was $520/oz, an 11% decrease comparedto Q2 2017 ($585/oz)

• 3,204oz of gold was produced from Prestea Underground development ore

• First stope was blasted at the end of Q3 2017 – stoping ore will be recognized inPrestea’s production for the first time in Q4 2017

1. See note on slide 2 regarding “Non-GAAP Financial Measures”

86% increase in gold production compared to

Q3 2016

38% decrease in cash operating cost per ounce1

compared to Q3 2016

5

First 9 Months of 2017: Operating Results

NYSE: GSSTSX: GSC

Production

First 9 months of 2017: 101Koz

2017 Guidance: 120-130Koz

5

Cash Operating Cost1

First 9 months of 2017: $570/oz

2017 Guidance: $680-725/oz


628 585 520

0

200

400

600

800

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1,200

Q1 17 Q2 17 Q3 17

$/

oz

Prestea 2017 Cash Operating Cost Per Ounce1

0.3 3.2

26 32

39

0

5

10

15

20

25

30

35

40

45

Q1 17 Q2 17 Q3 17

Go

ld o

un

ces (

‘00

0)

Prestea 2017 Gold Production

Prestea Underground Prestea Open Pits

6

Prestea: Mineral Reserves and Resources

NYSE: GSSTSX: GSC

MINERAL RESERVES

Dec 31, 2016 Proven and Probable Mineral Reserve

Tonnes Grade Ounces

Open pit 811,000 3.17 83,000

Underground 1,094,000 13.93 490,000

Stockpiles 115,000 2.55 9,000

PRESTEA TOTAL 2,020,000 8.96 582,000

MINERAL RESOURCES(Inclusive of Reserves)

Dec 31, 2016 Resources

Tonnes Grade Ounces

Measured and Indicated Resources

Open pit non-refractory

1,594,000 2.75 141,000

Open pit refractory 14,424,000 3.01 1,396,000

Underground 1,570,000 15.69 792,000

Other 2,230,000 1.69 121,000

PRESTEA TOTAL 19,818,000 3.85 2,450,000

Inferred Resources 4,835,000 6.64 1,032,000

7

Operational Successes

NYSE: GSSTSX: GSC

• Underground production ramping up

following first stope blasting

• Stope hanging wall conditions are

favourable with minimal dilution and

good fragmentation

• Infrastructure construction complete

• Training of Golden Star’s Alimak

miners and development crews is

proceeding well

• Highly successful open pit mining at

Mampon during 2017

• Plant modifications for high grade

underground ore are progressing on

target

8

Health and Safety

NYSE: GSSTSX: GSC

• Last LTI in November 2016

• Open pits – last LTI June 2015 – almost 10 million man hours LTI free

• Underground – LTI in November 2016

• Safe operating procedures

• Reporting of near miss accidents

• Safety focus on haulage trucks drivingthrough populated areas

• New underground personnel training

• Emergency preparedness and mine rescue

• Shaft and hoisting safety upgrades

5.2 million man hours Lost Time Injury (LTI) free

9

Community Relations and Social Responsibility

NYSE: GSSTSX: GSC

Chief Operating Officer Daniel Owiredu signs the new CSR agreements with the local communities in October 2012

Strong support from local communities

Value RetentionOil Palm & Skills Training

Local Participation

Driving PrinciplesSecure social license and retain value in host communities

Development Foundation$2 per oz. for dev programs

Proactive engagementwith communities

PRESTEA UNDERGROUND

10

• Commercial production expected in Q4 2017

• Stope 1 in longhole production

• Stope 2 raising complete and drilling cablesupport and blast holes

• Stope 3 raise development at 130m

• Stope 4 commenced raising

• Stope 5 Alimak nest preparation ongoing

• Breakthrough of the footwall drive completeallowing improved ventilation, coolertemperatures and better environmentalconditions for loader operation

• 17 Level rehabilitation ongoing with declinedevelopment expected to commence in Q42017

11

Prestea Underground: Current Status

NYSE: GSSTSX: GSC

12

Development Sequence

NYSE: GSSTSX: GSC

Current situation

17L

24L

S1 S2

S3

S4

13


NYSE: GSSTSX: GSC

December 2017

17L

24L

14


NYSE: GSSTSX: GSC

December 2018

17L

24L

21L

Decline to 21L

Vent raise system

15


NYSE: GSSTSX: GSC

December 2019

17L

24L

21L

16


NYSE: GSSTSX: GSC

December 2020

17L

24L

21L

Decline to 27L

17


NYSE: GSSTSX: GSC

December 2021

17L

24L

21L

27L

18


NYSE: GSSTSX: GSC

Mid-2022

17L

24L

21L

27L

19

Explanation of Alimak Mining

NYSE: GSSTSX: GSC

Alimak raise commences on first stope

20


NYSE: GSSTSX: GSC

First raise completes, sub drift to second raise

21


NYSE: GSSTSX: GSC

First Alimak relocates to top and install support

22


NYSE: GSSTSX: GSC

First Alimak longhole drilling

23


NYSE: GSSTSX: GSC

First stope commences blasting

24


NYSE: GSSTSX: GSC

Sequence progresses

25


NYSE: GSSTSX: GSC

Sequence progresses

26


NYSE: GSSTSX: GSC

Sequence progresses

27

24 Level Development

NYSE: GSSTSX: GSC

Workshop

Vent raise

Ore drive

Footwall drive

Alimak nest

Pump chamber

Drill chamber

21 Level ore pass

28

PRESTEA OPEN PITS

29NYSE: GSSTSX: GSC

2017 Results: Prestea Open Pits & Mampon Deposit


Q1 2017 Q2 2017 Q3 2017Actual YTD

(end Sep 2017)Budget YTD

(end Sep 2017)

Ore Mined kt 341 366 477 1,191 853

Waste Mined kt 583 956 1,030 2,568 1,471

Ore Processed kt 389 371 408 1,167 1,016

Grade Processed g/t 2.31 3.15 3.60 3.03 5.32

Recovery % 88.8 88.1 86.7 88.1 89.0

Gold Sales oz 26,446 32,019 42,103 100,568 106,082

Direct Operating Cost $/oz 637 652 526 595 531

162%

115% 115%

156%

104%123%

0%

50%

100%

150%

200%

Mining Milling G&A

Cost Performance Relative To Production

%Production Attained %Cost Incurred

• Fifth consecutive quarter of record

production from Prestea Open Pits in Q3

2017

• Surface operations performance has

outperformed plan significantly

• Consistent decrease in direct operating cost

• Life of Prestea Open Pits extended until

early 2018

30

Mampon Deposit

NYSE: GSSTSX: GSC

Logging – Feb 2017 Grade Control – Mar 2017 Mining – Mar 2017

Pit 1 (Oct)Ore turned transition

Pit 2 depleted &

under backfill

AboronyeOre mining underway

31

Re-forestation and Biodiversity Offset Impact of Mining

NYSE: GSSTSX: GSC

• Mampon site nursery created

• All seedlings gathered are from the Opon Mansi

Forest Reserve (OMFR)

• 8,580 seedlings of 18 different species nursed

• Additional seedlings to be sourced from Forestry

Services Division (FSD)

• Rehabilitation

• Works commenced on initial access road created for

Pit 1

• Compartment 20 of OMFR is earmarked for

biodiversity off-set

• FSD and Golden Star team inspected site

• Checklist for progress tracking activities being

developed

• 36 hectares of land of Minta Forest reserve earmarked

for re-forestation

• Additional 14 hectares to be provided by FSD

32

Process Plant Modification

• Modifications to plant underway to ensure efficientprocessing

• Downsizing delayed until May 2018 due to additionalore availability from Prestea Open Pits

• Construction will be complete well ahead ofchangeover to solely underground ore

• Work to date:

• Lime silo installed and operational

• Pre-leach thickener operational

• Acacia reactor operational

• 2x current leach tanks rebuilt

• 1x leach tank rebuilt (old biox tank), 1 ongoing

• New CIL final tails pump station - 85% complete

• CIL feed pump station - 30% complete

• New Carbon recovery screen - 40% complete

Plant modified to accept underground ore and ensure the full impact of higher grades is realized

GEOLOGY & EXPLORATION PROGRAM

34

Geology

NYSE: GSSTSX: GSC

• Prestea Underground is hosted within Birimian Phyllites

• Gold mineralization is associated with the prolific fault zone referred to as the AshantiTrend

• West Reef mineralization is hosted in a fault structure parallel to the Main Reeflocated ~250m in the hanging wall

• Gold occurs as free gold along carbonaceous partings within the quart veins or withpyrite and arsenopyrite

35

Exploration Strategy

NYSE: GSSTSX: GSC

1.0 m @ 0.25g/t1.0m @ 37.3g/t

Prestea West Reef 24 Level 270 S4 X cut – North Wall

Prestea West Reef 24 Level 270 S4 X cut – South Wall

1.0m @ 12.6g/t1.0m @ 3.4g/t

1.0 m @ 0.42g/t 1.0m @ 32.4g/t 1.0m @ 64.1g/t 1.0m @ 0.5g/t

36

Exploration Targets for 2017 and Beyond

NYSE: GSSTSX: GSC

Planned 2017 and beyond West Reef extension drilling

Prestea Open Pits

Planned2018 Main

Reef drilling

South Gap

N S

Bondaye Shaft

Tuapim Shaft

17L

24L

Central Shaft

Potential Main Reef drilling beyond

2018

Planned South Gap

surface drilling

Potential Tuapim drilling

beyond 2017

35L30L

Planned Main Reef Drilling

30-35L Targets

37

2017 Exploration Program

NYSE: GSSTSX: GSC

AssetPlanned Drilling

(m)Expected Cost

($ million)

Prestea Underground

West Reef extension and definition drilling 11,630 1.2

Main Reef initial drill testing on 17 to 21 Levels 4,600 0.6

South Gap and Tuapim drilling from surface 5,250 0.7

Prestea Underground Total 21,480 2.5

Prestea Open Pits and Mampon deposit

Prestea South Pit and Mampon expansion drilling 9,100 0.4

Prestea Open Pits and Mampon Total 9,100 0.4

Prestea Operations TOTAL 30,580 2.9

Phase one of exploration program has 3 key targets at Prestea:

1. Extension and definition of West Reef – assessing the opportunity to increase thesupply of high grade UG ore to the plant in the near term – drilling commenced in Q12017

2. Initial testing of Main Reef between 17 and 21L – to evaluate the potential to includeMain Reef ore in the mine plan in the medium term – expected to commence in 2018

3. Confirming the results of previous drilling of South Gap and Tuapim areas –conducted from surface and testing the Main Reef. Potential to extend PresteaUnderground’s LOM – commenced in Q3 2017

38

2017 West Reef Drilling to Date

NYSE: GSSTSX: GSC

39

Planned West Reef Drilling – 2018 and Beyond

NYSE: GSSTSX: GSC

17 Level

N

S

24 Level

30 Level

West Reef Planned Stopes

Main Reef mined stopes

Completed 2017 West Reef Infill

Drilling

100 m

West Reef 2019 Planned

Drilling Up Dip

West Reef North Extension and Down Plunge Drilling to complete by end

2017

West Reef Mined Stopes

2018 West ReefPlanned Drilling with the objective of extending the Mineral Reserves to the South (up plunge)

2018 West ReefPlanned Drilling with the

objective of extending the West Reef to the North

(down plunge)

40

Planned Main Reef Drilling – 2018 and Beyond

NYSE: GSSTSX: GSC

17 Level

N

S

24 Level

30 Level


100 m

Main Reef 2019 Planned Drilling from 17-21 Level

Decline re-mucks


Main Reef 2018Planned Drilling from

287 drill chamber

Main Reef plunge

extension targets

Main Reef plunge

extension targets

41

Main Reef Drilling 30 Level

NYSE: GSSTSX: GSC

7.2g/t

12.8g/t

0.8g/t

20.2g/t

7.8g/t

1.1g/t

2.9g/t

1.0g/t

1.7g/t

2.7g/t

0.9g/t

12.6g/t

• In 2006 9 holes were drilled below 30 Level to test the Main Reef

• All of the holes intersected the reef structure as well as hanging wall and foot wallmineralization

QUESTIONS?

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