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our commitment gsr supports the un global compact and we continue to integrate its principles into our business activities the un global compact is a framework for businesses that are committed to aligning their operations and strategies with universally accepted principles in the areas of human rights labour the environment and anti-corruption as the world s largest global corporate citizenship initiative the un global compact is first and foremost concerned with exhibiting and building the social legitimacy of business and markets throughout this report look for the global compact symbol for vision and values to build a brand name mining company that · · · · delivers superior returns to investors attracts and retains the best talent is committed to international best practices and conduct and is a partner of choice for host communities and governments sustainability policies in 2010 we undertook a substantial review of our sustainability policies the full details of our policy on the environment our policy on health and safety and our policy on community relations and human rights can be found on our web site www.gsr.com 2010 commitments summary in our 2009 sustainability report golden star resources detailed a number of goals and targets for 2010 in relation to opportunities to advance the sustainability of our business reports on our performance in relation to the un what we said we would do develop an education program on human rights and provide training for all employees on human rights so that they understand golden star s role in the protection of human rights complete an assessment of the human rights record and policies of our top ten suppliers and provide a report to the golden star sustainability committee reduce the number of reportable environmental incidents achieve full certification with the international cyanide management code continue our current rehabilitation program what we did training program developed and delivered to hr team poster campaign conducted top ten supplier meetings held assessments 40 complete where you can find more information human rights human rights zero reportable incidents both sites in full certification we actively carried out rehabilitation work at both sites environment icmc certification environment this report presents a summary of golden star resources social environmental and economic contributions for the 2010 calendar year all data relates to the period from january 1 2010 to december 31 2010 unless stated otherwise all amounts in this report are in us dollars unless otherwise indicated the forward-looking statements made in this report are based on assumptions and judgments of management regarding future events and results such forward-looking statements including but not limited to those with respect to the development of and exploration for new deposits estimated future production operational capabilities gold price potential employment completion of the dumasi asset survey and timing of negotiations integration of the global compact into our business activities human rights targets disclosure of and statements of expected payments to authorities and targets for lost time injury frequency motor vehicle accidents reportable environmental incidents and rehabilitation involve known and unknown risks uncertainties and other factors which may cause the actual results performance or achievements expressed or implied by such forward-looking statements to be materially different from forecast future results performance or achievements expressed or implied by such forward-looking statements such factors include among other things the actual price of gold the actual results of current exploration development and mining activities and changes in project parameters and operational activities as plans continue to be evaluated as well as those factors disclosed in the company s filed documents 2 go l den st ar

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tom mair president ceo preside nt smes sag e i am pleased to present golden star s fifth annual sustainability report which summarizes our corporate social responsibility and safety performance and is our communication on progress for the un global compact when i am at our operations people ask me what sustainability means to me is it the opportunity to provide jobs for people in areas that have high unemployment is it about returning the land to another use when mining is completed is it about reliable water supply clean air and food for our children and their children to me sustainability captures the essence of a great business a business where we all prosper in 2010 we achieved a number of sustainability milestones the year was at times a challenging one for our business and despite this we secured full certification to the international cyanide management code and continued our progress implementing the un global compact principles i would like to take this opportunity to thank our employees our stakeholder communities and our contracting partners for their dedication and commitment this report is about our achievements and opportunities as a team and it is only as a team that we will ensure the sustainability of our business yours sincerely · our stakeholder communities benefit from livelihoods improved well-being and infrastructure development · our employees receive fair wages for a fair day s work and go home healthy to enjoy their families · our children see a mining industry that not only provides for the present but also helps build opportunities for the future and tom mair president ceo may 13 2011 · our business delivers ­ for shareholders and for our host communities and governments 2 01 0 s u st ainability re port 1

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th ebest ta le nt our people our people are our greatest asset gsr understands that our people are our greatest asset our people bring their talents to our operations and as a team we commit to engaging with each other with mutual respect honesty and transparency gsr has a positive effect on our stakeholder communities local employment contributes to regional prosperity and pride in 2010 over 35 of our employees were from within our operations stakeholder communities and about 51 come from within the western region of ghana where our operations are located in line with our commitment to sustainability building capacity within the communities in which we operate is critical to our success at our operations more than 3,675 people attended technical and supervisory training courses totalling more than 26,996 hours of training ­ the equivalent of 2 weeks training for every employee in addition to the time commitment we spent about us$435,800 on training and developing our people expatriate 2 other western region 15 other ghana 47 local employment direct employees stakeholder communities 36 dedicated teams of specialist personnel advise and support our operations sustainability activities across our business we have more than 55 personnel working in the environment discipline 19 health and safety dedicated personnel 29 team members in our community relations teams and a further 69 personnel dedicated to ensuring the security of our workforce 2 01 0 s u st ainability re port 3

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human rights golden star works to support and respect the protection of internationally proclaimed human rights and ensure that we are not complicit in human rights abuses in 2010 human rights training was provided to human resources personnel throughout our business to build their capacity and equip them to provide this training amongst the wider workforce to support these program a poster campaign on women s rights human rights and against child and forced labour was conducted across our sites and continues into 2011 gsr senior leadership held meetings with our top ten suppliers to communicate our policies requirements and commitments to human rights we will communicate this information to our sustainability committee in 2011 our messages about human rights are being incorporated into our training program for new our un global compact 2010 objectives targets · develop an education program on human rights and provide training for all employees on human rights so that they understand golden star s role in the protection of human rights · complete an assessment of the human rights record and policies of our top ten suppliers and provide a report to the golden star sustainability committee employees in 2011 we will provide this training for all new staff and will provide additional training for our employees 4 go l den star

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production from the golden star oil palm plantation 2 01 0 s u st ainability re port 5

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6 go l den star female employees at golden star wassa limited

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labour standards freedom to associate and bargain collectively we recognize our workers rights to associate currently over 95 of our employees at all levels within our businesses have joined various unions of their choice management and unions convene regular meetings to consult and negotiate workers conditions of service elimination of forced and compulsory labour in order to eliminate all forms of forced and compulsory labour we ensure that recruitment for any form of work is mutually agreed between both parties in addition to our 2,180 direct employees our partnerships with other employers in our region enables us to work together for mutual benefit and for the benefit of our host communities as a result of our operations approximately 400 direct contractors are employed and their businesses employ a further 2,214 people to support our operations in addition to these jobs our golden star oil palm plantation employs another 123 people abolition of child labour we ensure that all staff recruited meet the statutory employable age we updated our tenancy agreement requirements to specify that gsr employees using company accommodation have a requirement for all school aged children to attend school as a result of this action a number of children are now attending school that previously did not eliminating discrimination and promoting workplace diversity in the traditionally male dominated mining industry we employ a number of females throughout our business of our direct employees some 3 are female staff with women employed in roles ranging from management to highly specialised technical roles such as processing plant supervisor our commitment to workforce diversity continues beyond this we have a number of physically challenged people in our workforce developing young people the principles of sustainability recognise the criticality of providing for future generations but how do young people gain employment or advance themselves if employers only ever employ people with experience gsr is working with our stakeholder communities to provide practical experience for young people through our traineeship program and educational scholarships in 2010 we had 21 apprentices 48 people in our attachment programme 12 graduate trainees and 92 completing national service in our business a further 60 of our employees undertook program sponsored by gsr to obtain recognised qualifications 26 completing certificate level studies 10 completing diploma and bachelor level studies 4 undertaking chartered accountancy and 20 completing masters level studies this is more than 235 people or 11 of our employees undertaking external program to build their capacity obtain a greater depth of experience and gain further qualifications in 2011 we will develop a training program for antidiscrimination and provide our site hr people and senior management with training we will continue to implement our local hiring policy that provides stakeholder communities preference when applying for work with gsr 2 01 0 s u st ainability re port 7

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co m m it m e nt to bestpr ac ti c e s health and safety nothing we do is worth anyone being injured work hours lost injuries and severity 6000 5000 4000 3000 2000 1000 0 2006 2007 2008 year total work hours lost injury number of injuries 2009 2010 0 150 300 450 number of injuries we are disappointed that in 2010 seven people were injured at our operations to an extent where they could not go back to work on their next scheduled shift our lost time injury frequency rate was 0.54 just above our 2010 target of 0.5 despite this the total number of injuries experienced by our personnel and our contractors remained low and we were pleased to note that the severity of the injuries experienced on our sites was also low with only 20 shifts lost to work related injury our safety team proactively conducted over 500 workplace inspections and reviews during the year which is just over 40 inspections each month more than 6,800 people received training and development on workplace health and safety all incidents and near misses reported at our operations were investigated this allows us to identify any causes for the incidents and take action to prevent reoccurrences by year s end we implemented 92 of the improvement actions identified from these investigations objectives and targets · in 2011 we will aim to consolidate our lost time injury frequency rate at below 0.3 giving food related illnesses the `chop hygiene and sanitation are critical issues to maintaining the health and wellbeing of our workforce gastroenteritis within our workforce affects our personnel and the productivity of our business to assist personnel in improving overall hygiene and sanitation a series of upgrades are underway at the chop kitchens at our sites the wassa mine-site chop kitchen/dining area has been one of the first to receive a major upgrade with new hand-washing stations upgraded flooring and new furniture 8 go l den star

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icmc certification bogoso joins our wassa operations as certified in full compliance in fulfilling our 2010 environmental goals the international cyanide management institute icmi announced on january 7 2011 that golden star s bogoso mine was certified in full compliance with the international cyanide management code code the code developed under the aegis of the united nations environment programme is administered by icmi which promotes the codes adoption evaluates its implementation and manages the verified that all required corrective action plans had been implemented and the operation was in full compliance with the code the auditor s reports are available on the code web site on the company s signatory page the operation must be re-audited every three years to evaluate continuing compliance with the code at our wassa operations where we achieved full certification in 2009 we also completed all of our required corrective action plans in 2010 and we have scheduled an internal control review with code certified reviewers for 2011 in addition to completing our corrective action plans at wassa the team have also completed a continuous improvement project involving the installation of audio alarms at two of our tailings storage facility collection ponds certification process see www.cyanidecode.org the bogoso operations were audited in 2010 by independent professional third-party auditors who 2 01 0 s u st ainability re port 11

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environment working with our stakeholders to provide for future generations gsr promotes a precautionary approach to environmental challenges and undertook initiatives to promote greater environmental responsibility the subject of action plans developed for implementation our performance in the epa akoben audit was similar to our peers in ghana water our extensive monitoring programs cover some 146 surface and 81 ground water monitoring sites with more than 6,000 samples collected we demonstrated that discharges from our operations to the receiving environment at all times met the limits set by the epa for cyanide we maintained substantial conformance to the internal and external values set for water quality or were consistent with the levels that existed before the start of our mining operations in a few instances of intense rainfall localized short-lived sediment was observed from our construction activities we took remedial action to install and upgrade silt traps and plant vegetation for erosion prevention during the year our operations had no reportable environmental incidents in keeping with our 2010 goals and received no enforcement actions or fines during the period we remained in substantial compliance with our regulatory requirements during 2010 as is reflected in our operations receiving 85 and 80 for their inaugural epa akoben audits a review carried out by the ghana environmental protection agency our wassa and bogoso operations scored 100 and 91 respectively for corporate social responsibility however the audits highlighted areas for continued improvement and have been environmentally friendly technologies for treating water in a tropical environment managing seasonal rainfall can be challenging at our bogoso operations we instituted several water treatment options to enable us to treat water prior to release back to the environment by mixing water that collected in our marlu and bogoso north pits with water from our tailings storage facility we were able to treat water for release and at all times remain in full compliance with the ghana epa discharge limits to provide further natural and biological water treatment we have established dedicated and we have established dedicated water treatment wetlands marshes at each of our operations these treatment areas retain nutrients trap sediment and return important chemical and biological components to the water do they work yes they do ­ just ask the thousands of insects fish and birds that live in them 12 go l den st ar

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