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bogoso pampe bogoso north wassa bogoso processing plants prestea south mine processing plant ghana chujah-dumasi buesichem prestea mine prestea benso adoikrom subriso pits hwini-butre father brown active pits deposits mining lease exploration gsr exploration jv 100 km north golden star resources ltd is a mid-tier gold mining company that produced 354,904 ounces of gold in 2010 and plans to produce approximately 330,000 to 360,000 ounces in 2011 the company has two operating mines in ghana west africa our bogoso/prestea and wassa mines acquired in 1999 and 2002 respectively were both purchased during a low gold price environment allowing the company to acquire both properties at relatively attractive prices the company is the largest holder of mining properties on the prolific ashanti gold trend the hbb properties were acquired in late 2005 both bogoso/prestea and wassa/hbb are district-scale sized properties with excellent infrastructure in place golden star s growth strategy is to explore and develop our two mines in ghana as well as explore other prospective projects in western africa and brazil additionally the company will investigate potential acquisitions that are accretive to shareholder value shares of golden star are widely held by both retail and institutional shareholders and are traded on the nyse amex stock exchange toronto stock exchange and ghana stock exchange under the symbols gss gsc and gsr respectively front cover this year 2010 was the year of exploration for golden star our exploration budget was increased to $20 million from $9 million in 2009 as a result of our successful exploration efforts and increased gold prices our 2010 mineral reserves net of depletion were up 24 from 2009 and our mineral resources increased 63 over 2009 from our beginnings as a producing company in 1999 with mineral reserves of 40.0 million tonnes grading 1.4 g/t for 1.8 million ounces of gold and mineral resources of 43.9 million tonnes grading 2.5 g/t gold to our current reserves of 65.3 million tonnes grading 2.20 g/t for 4.62 million ounces of gold in reserves and resources of 54.9 million tonnes grading 1.99 g/t gold we have made significant progress in growth of reserves and resources the goal of management continues to be to build shareholder value through increased gold production increased mineral reserves and resources and reduced costs across the board accomplished in a safe manner these goals will be attained due to the efforts of our employees who are the fundamental drivers of our success forward-looking statements are made in this report to give the reader an indication of our business prospects plans and objectives although we believe these statements are reasonable as of the date of this report readers are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results performance or achievements to differ materially from those stated there can be no assurance that future developments affecting golden star will be those anticipated by us readers should refer to the risks involved in making forward-looking statements which are given on pages 2 and 13 of our form 10-k contained herein non-gaap measures are used in this report in particular total cash cost and cash operating cost on a per-ounce of gold basis this information differs from measures of performance prepared in accordance with gaap readers should examine the cautionary and explanatory statement on pages 2 and 34 of our form 10-k contained herein cautionary note to us investors concerning estimates of inferred mineral resources this section uses the term inferred mineral resources we advise us investors that while this term is recognized and required by canada s national instrument 43-101 the us securities and exchange commission does not recognize it inferred mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility it cannot be assumed that all or any part of inferred mineral resources will ever be upgraded to a higher category in accordance with canadian rules estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies us investors are cautioned not to assume that part or all of the inferred mineral resource exists or is economically or legally mineable.

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le t te r to shareho ld e r s tom mair president ceo 2010 was a year of highs and lows ups and downs for our company on the positive side we were very successful in growing our company in terms of reserves and resources as a result of focusing on exploration drilling and re-engineering our resource models the higher gold price accounted for approximately half of the resource growth on the down side the results from bogoso/prestea during the second half of the year were poor the perfect storm that affected bogoso/prestea included unusually wet weather affecting the sourcing of ore resulting in lower grades and suboptimal metallurgical recovery in spite of this we remained cashflow positive maintained our financial strength and flexibility and ended the year with $178 million in cash · year-end cash balance of $178.0 million · net loss of $8.3 million or $0.03 per share · net cash provided by operating activities of $115.2 million or $0.45 per share · reserves increased 24 net of depletion resources increased 63 focus on exploration during 2010 we focused on brownfields exploration at golden star we increased our exploration budget from $9 million in 2009 to $20 million in 2010 the lion s share of this budget was spent within haul distance of one of our plants we were successful in significantly increasing our reserves and resources in 2010 our reserve base increased 24 net of depletion and our resource base increased 63 over 2009 while approximately half of this increase is attributable to the rising gold prices we can proudly state that our exploration team has delivered significant exploration success 2010 results summary · gold sales of 354,904 ounces · average realized gold price of $1,219 per ounce · gold revenues of $432.7 million · cash operating costs of $766 per ounce of gold 2 01 0 annual re port 1

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we entered into a joint venture with votorantim a large brazilian company this added a 3,400 km² land package in mato grosso to our extensive brazilian portfolio one of our stated goals is to increase the mine lives of our operations the most economical method to achieve this is through the drill bit hence the increased exploration budget in 2010 at bogoso/prestea we have only explored some 30 kilometers of our 85 kilometer land package area similarly the corridor along our haul road from the wassa plant down to hwini-butre has had insufficient exploration since we acquired these concession areas in late 2005 the exploration potential in these areas is immense it requires time and money to drill out these areas and add to our reserve and resource base in other parts of west africa we earned a 51 interest on the sonfon project in sierra leone and we continue to explore this project our joint venture partner riverstone resources continues successful exploration activities at goulagou and rounga in côte d ivoire we continue the early stage exploration activities at amelekia and abengourou we continue to explore for gold in brazil with 9 greenfields exploration projects in mato grosso minas gerais and goias in addition during 2010 operations the second half of 2010 was challenging at bogoso prestea the unusually heavy rains contributed to delays in the commencement of mining at one of our new pits this resulted in processing relatively high quantities of lower grade and lower recovery transitional ore at the bogoso sulfide plant leading to lower than expected production going forward at bogoso/prestea we expect improving recoveries as we mine deeper in our pits accessing more fresh sulfide ores the improvement will be most noticeable in the second half of 2011 we still have work to do at the bogoso sulfide plant but we have been successful in the past and are confident we will be successful again in the near future at wassa we anticipate 2011 performance to be very similar to what we achieved this year wassa has been and continues to be a reliable operation 2 go l den st ar

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we mine high grade ores at the hb concession at both father brown and adoikrom pits and haul this to the wassa plant where it is blended with the wassa ores this strategy provides a certain degree of operational flexibility which translates into predictability and stability we will continue to focus on cost containment at both bogoso/prestea and wassa/hbb in the face of continuing cost pressures i want to thank our employees the management team and the board of directors for their efforts through the past year it has been a year with challenges some within our control and some not regardless our team remains dedicated to delivering solid operational and financial results yours sincerely what s next in the second half of 2011 in order to take advantage of the underutilized bogoso oxide plant we expect to see the start of production from our bogoso tailings retreatment project which should provide about 40,000 ounces of gold on an annualized basis at low cash operating costs in addition we expect to start mining the pampe oxide pit late in the year and combine this ore with the tailings into the bogoso oxide plant we also will continue with the permitting of prestea south oxide pits and the mampon deposit we are completing a study on the prestea underground project and expect to make a decision on this project during the year we have once again increased the exploration budget to $30 million so we expect to have another year of good exploration results during 2011 tom mair president ceo march 10 2011 2 01 0 annual re port 3

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mineral reserves the following table summarizes our estimated proven and probable mineral reserves as of december 31 2010 and december 31 2009 proven property bogoso/prestea non refractory refractory total wassa non refractory total totals non refractory refractory total 2010 total 2009 1.9 12.0 13.9 11.6 1.43 2.79 2.60 2.86 0.09 1.07 1.16 1.06 24.5 26.9 51.5 36.8 0.6 0.6 1.14 1.14 0.02 0.02 17.5 17.5 1.3 12.0 13.2 1.58 2.79 2.67 0.06 1.07 1.14 7.0 26.9 34.0 tonnes millions gold grade g/t contained ounces millions tonnes millions probable gold grade g/t 2.31 2.45 2.42 1.44 1.44 1.69 2.45 2.09 2.26 contained ounces millions 0.52 2.13 2.65 0.81 0.81 1.33 2.13 3.46 2.67 tonnes millions 8.3 38.9 47.2 18.1 18.1 26.4 38.9 65.3 48.3 total gold grade g/t 2.20 2.56 2.49 1.43 1.43 1.67 2.56 2.20 2.40 contained ounces millions 0.59 3.20 3.78 0.83 0.83 1.42 3.20 4.62 3.73 notes to the mineral reserves statement 1 the stated mineral reserve for bogoso/prestea includes prestea south pampe and mampon 2 the stated mineral reserve for wassa includes the hwini-butre and benso properties 3 the stated mineral reserves have been prepared in accordance with canada s national instrument 43-101 standards of disclosure for mineral projects and are classified in accordance with the canadian institute of mining metallurgy and petroleum s cim definition standards ­ for mineral resources and mineral reserves mineral reserves are equivalent to proven and probable reserves as defined by the sec industry guide 7 mineral reserve estimates reflect the company s reasonable expectation that all necessary permits and approvals will be obtained and maintained mining dilution and mining recovery vary by deposit and have been applied in estimating the mineral reserves 4 the 2010 and 2009 mineral reserves were prepared under the supervision of mr karl smith vice president technical services for the company mr smith is a qualified person as defined by canada s national instrument 43-101 5 the mineral reserves at december 31 2010 were estimated using a gold price of $1,025 per ounce which is approximately equal to the three-year average gold price at december 31 2009 mineral reserves were estimated using a gold price of $850 per ounce 6 the terms non-refractory and refractory refer to the metallurgical characteristics of the ore and are defined in the glossary of terms we plan to process the refractory ore in our sulfide bio-oxidation plant at bogoso and to process the non-refractory ore using our more traditional gravity flotation and/or cyanidation techniques 7 the slope angles of all pit designs are based on geotechnical criteria as established by external consultants the size and shape of the pit designs are guided by consideration of the results from a pit optimization program which incorporates historical and projected operating costs at bogoso/prestea wassa and hwini-butre and benso metallurgical recoveries are based on historical performance or estimated from test work and typically range from 80 to 95 for non-refractory ores and from 70 to 85 for refractory ores a government royalty of 5 of gold revenues is allowed as are other applicable royalties 8 numbers may not add due to rounding mineral resources measured property bogoso/prestea 1 prestea underground wassa benso chichiwelli manso hwini-butre father brown undergraound 8 goulagou 7 total 2010 6 total 2009 tonnes millions 8.5 ­ 0.1 ­ ­ ­ ­ ­ 8.6 4.8 gold grade g/t 1.94 ­ 0.88 ­ ­ ­ ­ ­ 1.93 1.87 indicated tonnes millions 19.3 1.1 20.3 0.8 0.9 0.5 0.8 2.7 46.4 21.8 gold grade g/t 2.00 15.80 1.07 2.53 1.80 2.07 6.68 1.75 2.00 2.66 measured indicated tonnes millions 27.8 1.1 20.4 0.8 0.9 0.5 0.8 2.7 54.9 26.6 gold grade g/t 1.98 15.80 1.07 2.53 1.80 2.07 6.68 1.75 1.99 2.52 inferred tonnes millions 10.6 4.1 0.1 0.1 0.1 0.7 0.4 0.5 16.5 11.0 gold grade g/t 2.11 8.20 2.27 3.56 2.23 1.71 5.97 1.00 3.66 4.62 notes to the mineral resources statement 1 the mineral resources for bogoso/prestea include pampe and mampon 2 the mineral resources were estimated in accordance with the definitions and requirements of canada s national instrument 43-101 the mineral resources are equivalent to mineralized material as defined by the sec industry guide 7 3 the mineral resources other than for goulagou see note 7 were estimated using optimized pit shells at a gold price of $1,300 per ounce from which the mineral reserves have been subtracted other than gold price the same optimized pit shell parameters and modifying factors used to determine the mineral reserves were used to determine the mineral resources the prestea underground resource was estimated using a $1,300 per ounce gold price and operating cost estimates in 2009 we used a gold price of $1,000 per ounce for the optimized shell 4 the mineral resources are not included in and are in addition to the mineral reserves described above 5 the qualified person for the estimation of the mineral resources is s mitchel wasel golden star resources vice president of exploration 6 numbers may not add due to rounding 7 the mineral resources for goulagou were estimated using optimized pit shells at a gold price of $560 pit optimization parameters for the goulagou mineral resources were estimated based on feasibility studies on other similar gold deposits in burkina faso golden star s experience in west africa and from limited metallurgical test work on the goulagou ores heap leach processing was the assumed processing option for this deposit goulagou is 10 owned by an unrelated party 8 the father brown underground resource has been estimated below the $1,300 pit shell down to the 700 m elevation using an economic gold grade cut off of 4.5 g/t 4 go l den star

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securities and exchange commission washington dc 20549 form 10-k annual report pursuant to section 13 or 15d of the securities exchange act of 1934 for the fiscal year ended december 31 2010 commission file number 1-12284 golden star resources ltd exact name of registrant as specified in its charter canada 98-0101955 state or other jurisdiction of incorporation or organization i.r.s employer identification no 10901 west toller drive suite 300 littleton colorado address of principal executive office 80127-6312 zip code registrant s telephone number including area code 303 830-9000 securities registered or to be registered pursuant to section 12b of the act title of each class name of each exchange on which registered common shares nyse amex securities registered or to be registered pursuant to section 12g of the act none indicate by check mark if the registrant is a well-known seasoned issuer as defined in rule 405 of the securities act yes no indicate by check mark if the registrant is not required to file reports pursuant to section 13 or section 15d of the act yes no indicate by check mark whether the registrant 1 has filed all reports required to be filed by section 13 or 15d of the securities exchange act of 1934 the act during the preceding 12 months or for such shorter period that the registrant was required to file such reports and 2 has been subject to such filing requirements for the past 90 days yes no indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site if any every interactive data file required to be submitted and posted pursuant to rule 405 of regulation s-t §232.405 of this chapter during the preceding 12 months or for such shorter period that the registrant was required to submit and post such files yes no indicate by check mark if disclosure of delinquent filers pursuant to item 405 of regulation s-k § 229.405 of this chapter is not contained herein and will not be contained to the best of registrant s knowledge in definitive proxy or information statements incorporated by reference in part iii of this form 10-k or any amendment to this form 10-k indicate by check mark whether the registrant is a large accelerated filer an accelerated filer a non-accelerated filer or a smaller reporting company see definition of large accelerated filer accelerated filer and smaller reporting company in rule 12b-2 of the exchange act check one large accelerated filer accelerated filer non-accelerated filer smaller reporting company indicate by check mark whether the registrant is a shell company as defined in rule 12b-2 of the act yes no the aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately $1,126.1 million as of june 30 2010 based on the closing price of the shares on the nyse amex as of that date of $4.38 per share number of common shares outstanding as at february 22 2011 258,559,486 documents incorporated by reference portions of our definitive proxy statement to be filed with the securities and exchange commission pursuant to regulation 14a in connection with the 2011 annual meeting of shareholders are incorporated by reference to part iii of this annual report on form 10-k 2010 annual report 1

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reporting currency financial and other information all amounts in this report are expressed in united states us dollars unless otherwise indicated canadian currency is denoted as cdn financial information is presented in accordance with accounting principles generally accepted in canada cdn gaap or canadian gaap differences between accounting principles generally accepted in the u.s u.s gaap and canadian gaap as applicable to golden star resources ltd are explained in note 27 to the consolidated financial statements references to golden star the company we our and us mean golden star resources ltd its predecessors and consolidated subsidiaries or any one or more of them as the context requires non-gaap financial measures in this form 10-k we use the terms total cash cost per ounce and cash operating cost per ounce which are considered non-gaap financial measures as defined in securities and exchange commission sec regulation s-k item 10 and applicable canadian securities law and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with cdn gaap or u.s gaap see item 7 management s discussion and analysis of financial condition and results of operations for a definition of these measures as used in this form 10-k statements regarding forward-looking information this form 10-k contains forward-looking statements within the meaning of section 27a of the securities act of 1933 as amended and section 21e of the securities exchange act of 1934 as amended and within the meaning of applicable canadian securities law words such as anticipates expects intends forecasts plans believes seeks estimates may will and similar expressions including negative and grammatical variations tend to identify forward-looking statements although we believe that our plans intentions and expectations reflected in these forward-looking statements are reasonable we cannot be certain that these plans intentions or expectations will be achieved actual results performance or achievements could differ materially from those contemplated expressed or implied by the forward-looking statements contained in this form 10-k these statements include comments regarding production and cash operating cost estimates for 2011 anticipated commencement dates of mining and production at prestea south and pampe development of the dumasi pit completion of the bogoso tailings processing project production capacity production rates and production costs cash operating costs generally gold sales mining operations and recovery rates ore delivery ore processing potential mine life permitting establishment and estimates of mineral reserves and resources geological environmental community and engineering studies expectations of the resettlement of communities exploration efforts and activities availability cost and efficiency of mining equipment ore grades reclamation work expected reclamation expenditures over the next five years expected pfic as defined below status in 2011 and in the future our anticipated investing and exploration spending in 2011 identification of acquisition and growth opportunities power costs the ability to meet total power requirements retention of earnings from our operations our objectives for 2011 and sources of and adequacy of liquidity to meet capital and other needs in 2011 forward statements are subject to risk uncertainties and other factors which could cause actual results to differ materially from future results expressed projected or implied by the forward-looking statements such risks include but are not limited to the following · significantincreasesordecreasesingoldprices · losses or gains in mineral reserves from changes in operating costs and/or gold prices · failure of exploration efforts to expand mineral reserves around our existing mines · unexpectedchangesinbusinessandeconomicconditions · variancesinmineralreservesandnon-reservesestimates · changesininterestandcurrencyexchangerates · timingandamountofgoldproduction · unanticipated variations in ore grade tonnes mined and crushed or milled · unanticipatedrecoveryorproductionproblems · effectsofillegalminingonourproperties · changes in mining and processing costs including changes to costs of raw materials supplies services and personnel · changesinmetallurgyandprocessing · availabilityofskilledpersonnel,contractors,materials equipment supplies power and water · changesinprojectparametersormineplans · costsandtimingofdevelopmentofnewmineralreserves · weather including drought or excessive rainfall in west africa · changes in regulatory frameworks based upon perceived climate trends · resultsofcurrentandfutureexplorationactivities · resultsofpendingandfuturefeasibilitystudies · acquisitionsandjointventurerelationships · political or economic instability either globally or in the countries in which we operate · changesinregulationsaffectingouroperations,particularly in ghana where our principal producing properties are located · local and community impacts and issues including resettlement · availabilityandcostofreplacingmineralreserves · timing of receipt and maintenance of government approvals and permits · unanticipatedtransportationcostsandshippingincidents and losses · accidents labor disputes and other operational hazards · environmentalliabilities,costsandrisks 2 golden star

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· unanticipatedtitleissues · competitivefactors,includingcompetitionforproperty acquisitions · possiblelitigation;and · availabilityofcapitalatreasonableratesoratall these factors are not intended to represent a complete list of the general or specific factors that could affect us more detailed information regarding these factors is provided in the other risk factors disclosed and discussed in item 1a below we undertake no obligation to update forward-looking statements except as may be required by applicable laws conversion factors and abbreviations all units in this report are stated in metric measurements unless otherwise noted for ease of reference the following conversion factors are provided 1 acre 0.4047 hectare 1 mile 1.6093 kilometers mineral resource demonstrated by at least a preliminary feasibility study the study must include adequate information on mining processing metallurgical economic and other relevant factors that demonstrate at the time of reporting that economic extraction can be justified a mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined proven mineral reserve the term proven mineral reserve refers to the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study this study must include adequate information on mining processing metallurgical economic and other relevant factors that demonstrate at the time of reporting that economic extraction is justified probable mineral reserve the term probable mineral reserve refers to the economically mineable part of an indicated and in some circumstances a measured mineral resource demonstrated by at least a preliminary feasibility study this study must include adequate information on mining processing metallurgical economic and other relevant factors that demonstrate at the time of reporting that economic extraction is justified mineral resource the term mineral resource refers to a concentration or occurrence of diamonds natural solid inorganic material or natural solid fossilized organic material including base and precious metals coal and industrial minerals in or on the earth s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction the location quantity grade geological characteristics and continuity of a mineral resource are known estimated or interpreted from specific geological evidence and knowledge measured mineral resource the term measured mineral resource refers to that part of a mineral resource for which quantity grade or quality densities shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters to support production planning and evaluation of the economic viability of the deposit the estimate is based on detailed and reliable exploration sampling and testing information gathered through appropriate techniques from locations such as outcrops trenches pits workings and drill holes that are spaced closely enough to confirm both geological and grade continuity indicated mineral resource the term indicated mineral resource refers to that part of a mineral resource for which quantity grade or quality densities shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit the estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops trenches pits workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed inferred mineral resource the term inferred mineral resource refers to that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed but not verified geological 1 foot 0.3048 meter 1 troy ounce 31.1035 grams 2.59 square kilometers 1 gram per 0.0292 troy 1 square mile metric tonne ounce/short ton 1 short ton 1 square 0.9072 tonne 2000 pounds kilometer 1,000 kg or 1 tonne 1 kilogram 2,204.6 lbs 10,000 square 1 hectare 1 hectare meters 100 hectares 2.204 pounds or 32.151 troy oz 2.471 acres the following abbreviations may be used herein m meter g gram grams per g/t tonne ha hectare km kilometer t or t tonne oz troy ounce square km2 kilometers kg kilogram glossary of terms we report our mineral reserves to two separate standards to meet the requirements for reporting in both canada and the united states canadian reporting requirements for disclosure of mineral properties are governed by national instrument 43-101 ni 43-101 the definitions in ni 43-101 are adopted from those given by the canadian institute of mining metallurgy and petroleum u.s reporting requirements for disclosure of mineral properties are governed by the sec industry guide 7 these reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported but embody differing approaches and definitions we estimate and report our mineral resources and mineral reserves according to the definitions set forth in ni 43-101 and modify them as appropriate to conform to sec industry guide 7 for reporting in the u.s the definitions for each reporting standard are presented below with supplementary explanation and descriptions of the similarities and differences ni 43-101 definitions mineral reserve the term mineral reserve refers to the economically mineable part of a measured or indicated 2010 annual report 3

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and grade continuity the estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops trenches pits workings and drill holes qualified person1 the term qualified person refers to an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration mine development or operation or mineral project assessment or any combination of these has experience relevant to the subject matter of the mineral project and the technical report and is a member in good standing of a professional association sec industry guide 7 definitions reserve the term reserve refers to that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination reserves must be supported by a feasibility study2 done to bankable standards that demonstrates the economic extraction bankable standards implies that the confidence attached to the costs and achievements developed in the study is sufficient for the project to be eligible for external debt financing a reserve includes adjustments to the in-situ tonnes and grade to include diluting materials and allowances for losses that might occur when the material is mined proven reserve the term proven reserve refers to reserves for which a quantity is computed from dimensions revealed in outcrops trenches workings or drill holes grade and/or quality are computed from the results of detailed sampling and b the sites for inspection sampling and measurement are spaced so closely and the geologic character is so well defined that size shape depth and mineral content of reserves are well-established probable reserve the term probable reserve refers to reserves for which quantity and grade and/or quality are computed from information similar to that used for proven measured reserves but the sites for inspection sampling and measurement are farther apart or are otherwise less adequately spaced the degree of assurance although lower than that for proven reserves is high enough to assume continuity between points of observation the term mineralized material mineralized material refers to material that is not included in the reserve as it does not meet all of the criteria for adequate demonstration for economic or legal extraction 3 1 industry guide 7 does not require designation of a qualified person 2 for industry guide 7 purposes the feasibility study must include adequate information on mining processing metallurgical economic and other relevant factors that demonstrate at the time of reporting that economic extraction is justified 3 this category is substantially equivalent to the combined categories of measured mineral resource and indicated mineral resource specified in ni 43-101 additional definitions assay a measure of the valuable mineral content bio-oxidation a processing method that uses bacteria to oxidize refractory sulfide ore to make it amenable to normal oxide ore processing techniques such as carbon-inleach birimian a thick and extensive sequence of proterozoic age metamorphosed sediments and volcanics first identified in the birim region of southern ghana cil or carbon-in-leach an ore processing method involving the use of cyanide where activated carbon which has been added to the leach tanks is used to absorb gold as it is leached by cyanide craton a stable relatively immobile area of the earth s crust cut-off grade when determining economically viable mineral reserves the lowest grade of mineralized material that qualifies as ore i.e that can be mined and processed at a profit cyanidation the process of introducing cyanide to ore to recover gold diamond drilling rotary drilling using diamond-set or diamond-impregnated bits to produce a solid continuous core of rock sample dip the angle that a structural surface a bedding or fault plane makes with the horizontal measured perpendicular to the strike of the structure doré unrefined gold bullion bars containing various impurities such as silver copper and mercury which will be further refined to near pure gold fault a surface or zone of rock fracture along which there has been displacement feasibility study a comprehensive study of a mineral deposit in which all geological engineering legal operating economic social environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production formation a distinct layer of sedimentary rock of similar composition geochemical the distribution and amounts of the chemical elements in minerals ores rocks solids water and the atmosphere geophysical the mechanical electrical gravitational and magnetic properties of the earth s crust geophysical surveys a survey method used primarily in the mining industry as an exploration tool applying the methods of physics and engineering to the earth s surface non-reserves the term non-reserves refers to mineralized material that is not included in the reserve as it does not meet all of the criteria for adequate demonstration for economic or legal extraction exploration stage an exploration stage prospect is one which is not in either the development or production stage development stage a development stage project is one which is undergoing preparation of an established commercially mineable deposit for its extraction but which is not yet in production this stage occurs after completion of a feasibility study production stage a production stage project is actively engaged in the process of extraction and beneficiation of mineral reserves to produce a marketable metal or mineral product 4 golden star

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grade quantity of metal per unit weight of host rock greenstone a sequence of usually metamorphosed volcanicsedimentary rock assemblages heap leach a mineral processing method involving the crushing and stacking of an ore on an impermeable liner upon which solutions are sprayed to dissolve metals i.e gold copper etc the solutions containing the metals are then collected and treated to recover the metals host rock the rock in which a mineral or an ore body may be contained hydrothermal the products of the actions of heated water such as a mineral deposit precipitated from a hot solution in-situ in its natural position life-of-mine a term commonly used to refer to the likely term of a mining operation and normally determined by dividing the tonnes of mineral reserve by the annual rate of mining and processing mineral a naturally occurring inorganic crystalline material having a definite chemical composition mineralization a natural accumulation or concentration in rocks or soil of one or more potentially economic minerals also the process by which minerals are introduced or concentrated in a rock national instrument 43-101 or ni 43-101 standards of disclosure for mineral projects prescribed by the canadian securities administration non-refractory ore containing gold that can be satisfactorily recovered by basic gravity concentration or simple cyanidation open pit surface mining in which the ore is extracted from a pit or quarry the geometry of the pit may vary with the characteristics of the ore body ore mineral bearing rock that can be mined and treated profitably under current or immediately foreseeable economic conditions ore body a mostly solid and fairly continuous mass of mineralization estimated to be economically mineable ore grade the average weight of the valuable metal or mineral contained in a specific weight of ore i.e grams per tonne of ore oxide gold bearing ore which results from the oxidation of near surface sulfide ore precambrian period of geologic time prior to 700 million years ago preliminary assessment a study that includes an economic analysis of the potential viability of mineral resources taken at an early stage of the project prior to the completion of a preliminary feasibility study preliminary feasibility study and pre-feasibility study each mean a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method in the case of underground mining or the pit configuration in the case of an open pit has been established and an effective method of mineral processing has been determined and includes a financial analysis based on reasonable assumptions of technical engi neering legal operating economic social and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person acting reasonably to determine if all or part of the mineral resource may be classified as a mineral reserve proterozoic the more recent time division of the precambrian rocks aged between 2,500 million and 550 million years old put a financial instrument that provides the right but not the obligation to sell a specified number of ounces of gold at a specified price qa/qc quality assurance/quality control is the process of controlling and assuring data quality for assays and other exploration and mining data rc reverse circulation drilling a drilling method using a tri-cone bit during which rock cuttings are pushed from the bottom of the drill hole to the surface through an outer tube by liquid and/or air pressure moving through an inner tube refractory ore containing gold that cannot be satisfactorily recovered by basic gravity concentration or simple cyanidation resettlement the relocation or resettlement of a community or part of a community rock indurated naturally occurring mineral matter of various compositions sampling and analytical variance/precision an estimate of the total error induced by sampling sample preparation and analysis shield a large area of exposed basement rocks often surrounded by younger rocks e.g guiana shield strike the direction or trend that a structural surface e.g a bedding or fault plane takes as it intersects the horizontal strip to remove overburden in order to expose ore sulfide a mineral including sulfur s and iron fe as well as other elements metallic sulfur-bearing mineral often associated with gold mineralization tailings fine ground wet waste material produced from ore after economically recoverable metals or minerals have been extracted tarkwaian a group of sedimentary rocks of proterozoic age named after the town of tarkwa in southern ghana where they were found to be gold bearing tectonic relating to the forces that produce movement and deformation of the earth s crust transition ore is an ore zone lying between the oxide ore and the sulfide ore ore material that is partially weathered and oxidized vein a thin sheet-like crosscutting body of hydrothermal mineralization principally quartz vtem a proprietary airborne geophysical survey systems that identifies electrical conductivity of rock units 2010 annual report 5

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pa r t i item 1 business overview of golden star we are a canadian federally­incorporated international gold mining and exploration company producing gold in ghana west africa we also conduct gold exploration in other countries in west africa and in south america golden star resources ltd was established under the canada business corporations act on may 15 1992 as a result of the amalgamation of south american goldfields inc a corporation incorporated under the federal laws of canada and golden star resources ltd a corporation originally incorporated under the provisions of the alberta business corporations act on march 7 1984 as southern star resources ltd our principal office is located at 10901 west toller drive suite 300 littleton colorado 80127 and our registered and records offices are located at 333 bay street bay adelaide centre box 20 toronto ontario m5h 2t6 we own controlling interests in several gold properties in southwest ghana · througha90%ownedsubsidiary,goldenstarbogoso prestea limited gsbpl we own and operate the bogoso/prestea gold mining and processing operations bogoso/prestea located near the town of bogoso ghana gsbpl operates a gold ore processing facility at bogoso/prestea with a capacity of up to 3.5 million tonnes of ore per annum which uses biooxidation technology to treat refractory sulfide ore bogoso sulfide plant in addition gsbpl has a carbon-in-leach cil processing facility located next to the sulfide plant which is suitable for treating oxide gold ores bogoso oxide plant at a rate up to 1.5 million tonnes per annum bogoso/prestea produced and sold 170,973 ounces of gold in 2010 and 186,054 ounces of gold in 2009 · throughanother90%ownedsubsidiary,goldenstar wassa limited gswl we own and operate the wassa open-pit gold mine and carbon-in-leach processing plant wassa located approximately 35 km east of bogoso/prestea the design capacity of the carbon-in-leach processing plant at wassa wassa plant is nominally 3.0 million tonnes per annum but varies depending on the ratio of hard to soft ore gswl also owns the hwini-butre and benso concessions the hbb properties in southwest ghana the hbb properties send their ore to wassa for processing the hwini-butre and benso concessions are located approximately 80 km and 50 km respectively by road south of wassa wassa/hbb produced and sold 183,931 ounces of gold in 2010 and 223,848 ounces of gold in 2009 we also hold interests in several gold exploration projects in ghana and elsewhere in west africa including sierra leone burkina faso niger and côte d ivoire and in south america where we hold exploration properties in brazil all our operations with the exception of certain exploration projects transact business in u.s dollars and keep financial records in u.s dollars our accounting records are kept in accordance with cdn gaap our fiscal year ends december 31 we are a reporting issuer or the equivalent in all provinces of canada in ghana and in the united states and file disclosure documents with securities regulatory authorities in canada and ghana and with the united states securities and exchange commission note that gold productions mineral reserves and mineral resourcesareshownona100%basisinthisform10-k which represents our current beneficial interest while thegovernmentofghanaownsa10%carriedinterestin gsbpl and in gswl the government s interest is limitedto10%ofanydividendsdistributedfromgsbpland gswl but only after their outstanding loans and interest have been repaid to golden star the mineral resources at prestea underground which are owned by gsbpl are also subject to the government of ghana s 10 minorityinterest,resultinginaneffective81%interest gold sales and production ghana has been a significant gold producing country for over 100 years with anglogold ashanti s obuasi mine and our inactive underground mine at prestea historically being the two major producers several other areas in ghana have also produced large amounts of gold ghana produced just under 3 million ounces of gold in 2009 currently all our gold production is shipped to a south african gold refinery in accordance with a long-term gold sales contract our gold is sold in the form of doré bars that average approximately 90 gold by weight with the remaining portion being silver and other metals the sales price is based on the london p.m fix on the day of shipment to the refinery gold price history the price of gold is volatile and is affected by numerous factors all of which are beyond our control such as the sale or purchase of gold by various central banks and financial institutions inflation recession fluctuation in the relative values of the u.s dollar and foreign currencies changes in global and regional gold demand and the political and economic conditions of major goldproducing countries throughout the world 6 golden star

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the following table presents the high low and average london p.m fixed prices for gold per ounce on the london bullion market over the past ten years average price received by average golden star fourth quarter of 2008 and in may 2009 the hwini-butre mine began shipping ore to the wassa plant for processing our overall objective is to grow our business to become a mid-tier gold producer we continue to evaluate potential acquisition and merger opportunities that could further increase our annual gold production however we presently have no agreement or understanding with respect to any specific potential transaction in addition to our gold mining and development activities we actively explore for gold in west africa and south america investing approximately $9.0 million on such activities during 2009 and approximately $20 million during 2010 we are conducting regional reconnaissance projects in ghana cote d ivoire and brazil and have drilled more advanced targets in ghana niger sierra leone burkina faso and brazil see item 2 ­ description of properties for additional details on our assets gold production and unit costs the following table shows historical and projected gold production and cash operating costs production and cost per ounce1 bogoso/prestea gold sales thousands of ounces cash operating cost oz 2008 2009 2010 projected year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 to february 22 2011 high low 293 349 416 454 537 725 841 1,011 1,213 1,421 1,403 256 278 320 375 411 525 608 713 810 1,058 1,319 271 310 363 410 445 603 695 872 972 1,225 1,358 271 311 364 410 446 607 713 870 978 1,219 na the following diagram depicts the organizational structure of golden star and its significant subsidiaries golden star resources ltd canada caystar holdings cayman island 100 2011 170.5 837 186.1 705 171.1 863 160.0 180.0 950 1,050 170.0 180.0 650 700 bogoso holdings cayman islands 100 golden star bogoso/prestea limited ghana 90 wasford holdings cayman islands 100 golden star wassa limited ghana 90 golden star exploration holdings cayman islands 100 various exploration entities west africa south america 100 wassa/hbb gold sales thousands of ounces cash operating cost oz consolidated consolidated total sales thousands of ounces consolidated cash operating cost oz 125.4 554 223.8 447 183.9 677 295.9 717 409.9 564 354.9 766 business strategy and development our business and development strategy has been focused primarily on the acquisition of producing and development-stage gold properties in ghana and on the exploration development and operation of these properties we have also pursued exploration activities in south america and other countries in west africa we acquired bogoso in 1999 and have operated the bogoso oxide plant most of the time since then to process oxide and other nonrefractory ores in 2001 we acquired the prestea property located adjacent to our bogoso property and mined surface deposits at prestea from late 2001 to late 2006 in late 2002 we acquired wassa and constructed the wassa plant which began commercial operation in april 2005 in july 2007 we completed construction and development of the bogoso sulfide plant in late 2005 we acquired the hbb properties consisting of the benso and hwini-butre properties benso development activities started in late 2007 and in 2008 we began trucking ore from the benso mine to the wassa plant for processing hwini-butre development was initiated in the 330.0 360.0 800 870 1 see management s discussion and analysis of financial condition and results of operations for a definition of cash operating cost per ounce mineral reserves our proven and probable mineral reserves are estimated in conformance with definitions set out in ni 43-101 we have filed technical reports regarding the initial disclosure of mineral reserves and mineral resources for bogoso/prestea and wassa/hbb as required by ni 43101 the proven and probable mineral reserves are those ore tonnages contained within economically optimized pits configured using current and predicted mining and processing methods and related operating costs and performance parameters we believe that our mineral reserves are estimated on a basis consistent with the definition of proven and probable reserves prescribed for use in the u.s by the u.s securities and exchange commission and set forth in sec industry guide 7 see our glossary of terms 2010 annual report 7

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in estimating mineral reserves we first design an economically optimized pit based on all operating costs including the costs to mine since all material lying within the optimized pit will be mined the cut-off grade used in determining our mineral reserves is estimated based on the material that having been mined is economic to transport and process without regard to primary mining costs i.e mining costs that were appropriately applied at the economic optimization stage the qa/qc controls program used in connection with the estimation of our mineral reserves consists of regular insertion and analysis of blanks and standards to monitor laboratory performance blanks are used to check for contamination standards are used to check for grade-dependence biases the following table summarizes our estimated proven and probable mineral reserves as of december 31 2010 and december 31 2009 proven and probable mineral reserves as at december 31 2010 tonnes gold grade ounces millions g/t millions as at december 31 2009 tonnes gold grade ounces millions g/t millions property mineral reserve category bogoso/prestea1 proven mineral reserves non-refractory refractory total proven probable mineral reserves non-refractory refractory total probable total proven and probable non-refractory refractory total bogoso/prestea proven and probable wassa2 proven mineral reserves non-refractory probable mineral reserves non-refractory total wassa proven and probable totals proven mineral reserves non-refractory refractory total proven probable mineral reserves non-refractory refractory total probable total proven and probable non-refractory refractory total proven and probable 8 notes to the mineral reserve statement 1.3 12.0 13.2 7.0 26.9 34.0 8.3 38.9 47.2 1.58 2.79 2.67 2.31 2.45 2.42 2.20 2.56 2.49 0.06 1.07 1.14 0.52 2.13 2.65 0.59 3.20 3.78 1.1 9.7 10.8 5.0 15.5 20.5 6.1 25.1 31.2 1.60 3.08 2.92 2.60 2.65 2.64 2.42 2.81 2.74 0.06 0.96 1.01 0.42 1.32 1.73 0.47 2.27 2.75 0.6 17.5 18.1 1.14 1.44 1.43 0.02 0.81 0.83 0.8 16.3 17.1 1.91 1.79 1.79 0.05 0.94 0.99 1.9 12.0 13.9 24.5 26.9 51.5 26.4 38.9 65.3 1.43 2.79 2.60 1.69 2.45 2.09 1.67 2.56 2.20 0.09 1.07 1.16 1.33 2.13 3.46 1.42 3.20 4.62 1.9 9.7 11.6 21.3 15.5 36.8 23.2 25.1 48.3 1.73 3.08 2.86 1.98 2.65 2.26 1.96 2.81 2.40 0.11 0.96 1.06 1.35 1.32 2.67 1.46 2.27 3.73 1 the stated mineral reserve for bogoso/prestea includes prestea south pampe and mampon 2 the stated mineral reserve for wassa includes the hwini-butre and benso properties 3 the stated mineral reserves have been prepared in accordance with canada s national instrument 43-101 standards of disclosure for mineral projects and are classified in accordance with the canadian institute of mining metallurgy and petroleum s cim definition standards ­ for mineral resources and mineral reserves mineral reserves are equivalent to proven and probable reserves as defined by the sec industry guide 7 mineral reserve estimates reflect the company s reasonable expectation that all necessary permits and approvals will be obtained and maintained mining dilution and mining recovery vary by deposit and have been applied in estimating the mineral reserves 4 the 2010 and 2009 mineral reserves were prepared under the supervision of mr karl smith vice president technical services for the company mr smith is a qualified person as defined by canada s national instrument 43-101 8 golden star

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5 the mineral reserves at december 31 2010 were estimated using a gold price of $1,025 per ounce which is approximately equal to the three-year average gold price at december 31 2009 mineral reserves were estimated using a gold price of $850 per ounce 6 the terms non-refractory and refractory refer to the metallurgical characteristics of the ore and are defined in the glossary of terms we plan to process the refractory ore in our sulfide bio-oxidation plant at bogoso and to process the non-refractory ore using our more traditional gravity flotation and/or cyanidation techniques 7 the slope angles of all pit designs are based on geotechnical criteria as established by external consultants the size and shape of the pit designs are guided by consideration of the results from a pit optimization program which incorporates historical and projected operating costs at bogoso/prestea wassa and hwini-butre and benso metallurgical recoveries are based on historicalperformanceorestimatedfromtestworkandtypicallyrangefrom80%to95%fornon-refractoryoresandfrom70%to85 forrefractoryores.agovernmentroyaltyof5%ofgoldrevenuesisallowedasareotherapplicableroyalties 8 numbers may not add due to rounding stockpiled ores stockpiled ores are included in the mineral reserves for both bogoso/prestea and wassa details of the proven and probable stockpiles included in the mineral reserves at year-end 2010 and 2009 are summarized in the table below proven and probable stockpiles included in mineral reserves as at december 31 2010 tonnes gold grade ounces millions g/t millions as at december 31 2009 tonnes gold grade ounces millions g/t millions property mineral reserve category bogoso/prestea proven stockpiles non-refractory refractory total proven stockpiles probable stockpiles non-refractory refractory total probable stockpiles total proven and probable non-refractory refractory total bogoso/prestea proven and probable wassa proven stockpiles non-refractory probable stockpiles non-refractory total wassa proven and probable stockpiles totals proven stockpiles non-refractory refractory total proven stockpiles probable stockpiles non-refractory refractory total probable stockpiles total proven and probable stockpiles non-refractory refractory total proven and probable stockpiles 0.0 0.0 0.1 0.2 0.2 0.0 0.2 0.3 2.56 2.10 2.42 2.31 2.31 2.56 2.30 2.33 0.00 0.00 0.00 0.02 0.02 0.00 0.02 0.02 0.0 0.1 0.1 0.7 0.7 0.0 0.7 0.8 2.32 2.67 2.57 2.34 2.34 2.32 2.37 2.37 0.00 0.01 0.01 0.05 0.05 0.00 0.06 0.06 0.3 2.6 2.8 0.78 0.52 0.55 0.01 0.04 0.05 0.3 2.7 3.0 1.08 0.52 0.57 0.01 0.05 0.06 0.3 0.0 0.3 2.6 0.2 2.8 2.9 0.2 3.1 0.98 2.10 1.03 0.52 2.31 0.67 0.57 2.30 0.70 0.01 0.00 0.01 0.04 0.02 0.06 0.06 0.02 0.07 0.3 0.1 0.4 2.7 0.7 3.4 3.0 0.7 3.8 1.20 2.67 1.49 0.52 2.34 0.87 0.59 2.37 0.93 0.01 0.01 0.02 0.05 0.05 0.10 0.06 0.06 0.11 2010 annual report 9

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