1. I N V E S T O R P R E S E N T A T I O N
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2. DISCLAIMER AND OTHER MATTERS
SAFE HARBOR: Some statements contained in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual
results to differ materially. Such statements include comments regarding: transformation of Golden Star to a non-refractory miner with a declining cash cost profile; grade
forecasts, strip ratios and production expectations for 2015, including our cash operating costs and expected operational improvements; life of mine cash operating costs for
combined operations from the start of 2016; the timing for completing refractory mining at Bogoso and placing refractory operations on care and maintenance; estimated capital
expenditures; the timing for continuing processing at Bogoso; expectations regarding the impact of weather in 2015; expectations regarding production from tailings retreatment;
use of the existing Wassa processing plant and Bogoso oxide and sulfide processing plants; matters relating to the PEA for Wassa, including estimated post-tax internal rate of
return and net present value of Wassa underground (including assumed discount rates), the timing for first production from Wassa underground, pre-production capital
expenditures, and the life of mine cash operating costs and sustaining costs at Wassa underground; matters relating to the PEA for Prestea, including estimated post-tax internal
rate of return and net present value of Prestea (including assumed discount rates), the timing for first production from Prestea, pre-production capital expenditures, and the life of
mine cash operating costs and sustaining costs at Prestea; cost contraction and margin growth; timing for receiving underground mining permits; timing of feasibility studies at
Wassa and Prestea; timing for commencing construction at Wassa Underground and commencing development at Prestea; timing for updated mineral reserves and resources;; and
our mineral reserve and mineral resource estimates. Factors that could cause actual results to differ materially include timing of and unexpected events at the Bogoso oxide and
sulfide processing plants and/or at the Wassa processing plant; variations in ore grade, tonnes mined, crushed or milled; variations in relative amounts of refractory, non-refractory
and transition ores; delay or failure to receive board or government approvals and permits; the availability and cost of electrical power; timing and availability of external financing
on acceptable terms; technical, permitting, mining or processing issues, including difficulties in establishing the infrastructure for Wassa Underground; changes in U.S. and
Canadian securities markets; and fluctuations in gold price and input costs and general economic conditions. There can be no assurance 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 Information Form for the year ended December 31,
2013. Additional factors, if applicable, will be included in our Annual Information Form for the year ended December 31, 2014, which will be 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 actual results 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 any estimate at any particular time or in response to any 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 this presentation.
NON-GAAP FINANCIAL MEASURES: In this presentation, we use the terms "cash operating cost per ounce" or โCoC per ounceโ and "all-in sustaining cost per ounceโ or โAISC
per ounceโ. These terms should 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 a substitute for measures of performance prepared in accordance with GAAP. "Cash operating cost per ounce" for a period is equal to the cost of sales excluding
depreciation and amortization for the period less royalties and production taxes, minus the cash 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 per ounce" commences with cash operating costs and then adds sustaining capital
expenditures, corporate general and administrative costs, mine site exploratory drilling and greenfield evaluation costs and environmental rehabilitation costs. 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 not include income tax payments or
interest costs. These measures are not necessarily indicative of operating profit or cash flow from operations as would be determined under International Financial Reporting
Standards. 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 and administrative 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, but may not be comparable to similarly titled measures in every instance. In order to indicate to stakeholders the company'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 net loss attributable to Golden Star
shareholders" and "adjusted net loss per share attributable to Golden Star shareholders" to supplement the condensed interim consolidated financial statements.
INFORMATION: The information contained in this presentation has been obtained by Golden Star from its own records and from other sources deemed reliable, however no
representation 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
technical reports prepared and filed pursuant to National Instrument 43-101 Standards for Disclosure of Mineral Properties ("NI 43-101") and other publicly available information
regarding the Company, including the following: (i) โNI 43-101 Technical Report on a Preliminary Economic Assessment of the Wassa Open Pit Mine and Underground Project in
Ghanaโ effective October 30, 2014 prepared by SRK Consulting (UK) Limited; (ii) โNI 43-101 Technical Report on Resources and Reserves, Golden Star Resources Ltd., Bogoso
Prestea Gold Mine, Ghanaโ effective December 31, 2013 prepared by SRK Consulting (UK) Limited, and (iii) โNI 43-101 Technical Report on Preliminary Economic Assessment of
Shrinkage Mining of the West Reef Resource, Prestea Underground Mine, Ghanaโ. Additional information is included in Golden Star's Annual Information Form for the year ended
December 31, 2013 which is filed on SEDAR. Mineral Reserves were prepared under the supervision of Dr. Martin Raffield, Senior Vice President Technical Services for the
Company. Dr. Raffield is a "Qualified Person" as defined by Canada's National Instrument 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.
March 20152
3. โ 15 year history in Ghana
โ Located on Ashanti gold belt close
to major gold producers
โ Three mines โ Wassa, Bogoso and
Prestea
โ Total processing capacity of 6.9
mtpa
โ 2014 production of 260,000 oz,
2015E production of 265,000 oz
โ Listed on the NYSE, TSX and in
Ghana
INTRODUCTION TO GOLDEN STAR
3 March 2015
4. DELIVERING ON STRATEGY
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STRATEGY ACTION
Favour operating margin over total
ounces produced
150,000 ounces of historic annual
Bogoso production to be replaced with
75,000 high margin ounces from
Prestea
Leverage off existing infrastructure
IRR on development projects in excess
of 70% achieved through operational
leverage
Financing for both projects in progress
Reduce costs at existing operations
through behavioural change and
productivity enhancements
Costs and expenses declined for four
consecutive quarters in 2014
Full year cost of sales (before D&A)
reduced 19% from prior year
Disciplined focus on return on capital
Investment in development drilling
extended Wassaโs LOM and increased
resource grade
Decision taken not to continue
refractory operations
March 2015
5. Q4 2014 FINANCIALS MARK RETURN TO PROFITABILITY
5
REVENUE MARKEDLY HIGHER
Revenue for Q4 2014 increased 11% , with 18%
more ounces at 6% lower realised price than
Q3 2014
COSTS CONTINUETO REDUCE
Total mine operating expenses were flat quarter
over quarter at $71 M
COC per ounce1 reduced 13% from prior quarter
to $919
IMPROVED PROFITABILITY
Adjusted net income to shareholders of $8.8 M
1. See note on slide 2 regarding Non-GAAP Financial Measures
March 2015
6. โ Cash operating costs per ounce1 declined consistently through 2014
โ Q4 2014 cost performance bodes well for 2015 guidance
โ FY 2014 cash operating costs per ounce higher than prior year, but
AISC 6% lower
โ LOM cash costs expected to reduce to below $700/oz from 20163
CASH OPERATING COSTS PER OUNCE REDUCING
1. See note on slide 2 regarding Non-GAAP Financial Measures
2. AISC is All-in Sustaining Costs. See note on slide 2 regarding Non-GAAP Financial Measures.
3. LOM is from 2016 onwards and assumes Wassa construction and Prestea development proceed as per respective PEA reports.
6 March 2015
$1,222
$1,059
7. GOLDEN STAR IN 2015
7 March 2015
โ Mining in single large Wassa open pit
โ 2015E production of 113k oz. at cash operating costs per oz. of
$850โ990
โ Grade improvement and lower strip planned for 2015
โ Two refractory pits mined out in Q3 2015, tailings retreatment
continue
โ 2015E production of 135k oz. from hard rock and 17k oz. from
tailings
โ Combined cash operating cost per oz. of $870 โ 960
โ Weather not expected to impact mining in 2015
โ Rehabilitation on existing infrastructure to take place in 2015
โ More than 16 surface and six underground shafts
โ Dewatering will continue in advance of mine development
8. BROWNFIELD PROJECTS LEVERAGE OFF EXISTING INFRASTRUCTURE
PROJECT
WASSA
UNDERGROUND PRESTEA COMBINED
MINING
Underground mining
below existing open pit
Underground mining in
well established mine
Low risk development
at established mines
PROCESSING
Existing Wassa
processing plant
Modified Bogoso
processing plant
Operational leverage
achieved
SUPPORT
INFRASTRUCTURE
Fully in place 15km haul road
improvements
Minimal new
infrastructure required
CAPEX $41M $40M Low capex projects
FIRST GOLD H1 2016 H2 2016 Near term production
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*Assumption of a gold price of $1,200 per ounce used in these calculations. For further critical assumptions used in these assessments, please refer to the reports titled โNI 43-101 Technical
Report on a Preliminary Economic Assessment of the Wassa Open Pit Mine and Underground Project in Ghanaโ and โNI 43-101 Technical Report on Preliminary Economic Assessment of Shrinkage
Mining of the West Reef Resource, Prestea Underground Mine, Ghanaโ both of which are filed on SEDAR.
March 2015
9. BOTH PROJECTS OFFER SUPERIOR RETURNS
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PROJECT
WASSA
UNDERGROUND PRESTEA COMBINED
COC PER OZ $684 $370
LOM below $700
from 2016
AISC PER OZ $778 $518
LOM below $750
from 2016
IRR 78% 72%
Superior risk
adjusted returns
NPV5% $271M $121M
Offers substantial value
to shareholders
PAY BACK PERIOD N/A 2.5 years Quick payback
*Assumption of a gold price of $1,200 per ounce used in these calculations. For further critical assumptions used in these assessments, please refer to the reports titled โNI 43-101 Technical
Report on a Preliminary Economic Assessment of the Wassa Open Pit Mine and Underground Project in Ghanaโ and โNI 43-101 Technical Report on Preliminary Economic Assessment of Shrinkage
Mining of the West Reef Resource, Prestea Underground Mine, Ghanaโ both of which are filed on SEDAR.
March 2015
12. โ Golden star is transforming to a non-refractory miner with a declining cash cost profile
โ First phase permits in place, underground mining permit to follow in 2015
โ Feasibility studies on both projects due in H1 2015
โ Pending conclusion of successful capital raising for Prestea, first production from both projects
expected in 2016
โ Potential for new ore sources to add near and long term production
COST CONTRACTION AND MARGIN GROWTH
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1. See note on slide 2 regarding Non-GAAP Financial Measures of Cash Operating Costs and All-in Sustaining Costs per ounce
March 2015
13. Investment Case
Established gold mining company with
15 years of production history in Ghana
Successfully reduced overall operating
costs over last two years
Development projects to deliver low cost
ounces through 2026
Largest land package on the Ashanti
Gold belt
Low political risk in a stable African
mining jurisdiction
Significant exploration & development
upside development
Offers investors leveraged, un-hedged
exposure to the gold price
