Name: Wassa mine.

Location: The Wassa mine is located near the village of Akyempim, in the Mpohor Wassa East district, in the western region of Ghana.

Controlling Company: Golden Star Wassa (GSW) is 90% owned by Golden Star Resources (GSR) and 10% by the Ghanaian government, which receives a 5% royalty on gross revenue on all GSW gold production.

Brief History: The Wassa mine was originally owned by Irish company Glencar Exploration and developed as a three-million- ton-a-year openpit heap-leach operation, with a forecast life-of-mine gold production of about 100 000 oz/y.

The first ore from the pit was mined in October 1998. After about one year of production, it became evident that the predicted heap-leach gold recovery of 85% could not be achieved, mainly owing to the high clay content of the ore and poor solution management. The combined effect of the lower-than-planned gold recovery and lull in the gold price at the time resulted in Glencar not being able to service its debt to the banks. In early 2001, the banks, together with Glencar, decided to sell the project to recover some of the accumulated debt.

Mining was stopped at the end of October 2001. GSR acquired the Wassa mine in 2002 and has been mining the Wassa openpits since commissioning the carbon-in-leach processing plant in 2005.

Brief Description: Wassa Main is an operating openpit mine previously comprising several adjacent but separate openpits. The Wassa main pit has now been increased in size to encompass several formerly separate pits comprising 242, Dead Man’s Hill, B Shoot, 419, MSN and South East main.

Geology/Mineralisation: The Wassa mineralisation is subdivided into several domains – F Shoot, B Shoot, 242, South East, Starter, 419, Mid East and Dead Man’s Hill. Each of these represents discontinuous segments of the main mineralised system. The mineralisation is hosted in highly altered multiphased greenstone-hosted quartz-carbonate veins interlaced with sedi- mentary pelitic units. Mineralisation within the Wassa mine is structurally controlled and related to vein densities and sulphide contents. Three vein generations have been distinguished, based on structural evidence – vein mineralogy, textures and associated gold grades. Evidence further connects the majority of gold mineralisation to the earliest recognised vein generation, which is believed to be syn-Eoeburnean.

Resources: Total combined openpit and underground measured and indicated resources as at September 15, 2014, were 35.7- million tonnes grading 2.22 g/t of gold. Inferred resources were 9.1-million tonnes grading 3.88 g/t of gold.

Products: Gold.

Mining Method: The mining methods used at the Wassa openpit and satellite pits are conventional excavator and truck methods, which are typical for this type and style of gold mineralisation.

Major Infrastructure and Equipment: Wassa has a single processing plant comprising a carbon-in-leach system with a capacity of 2.7-million tonnes a year. All ore from Wassa is processed at this plant.

The plant is 500 m from the current openpit mining operations. Processing currently includes a three-stage crushing, grinding, gravity recovery and carbon-in-leach circuits and a thickener. A final recovery circuit using electrowinning is also in place, along with associated secure gold-room facilities.

The main production fleet comprises excavators, haul trucks and rotary drill rigs principally sourced from the Liebherr, Caterpillar and Atlas Copco manufacturers respectively. In addition to the main equipment units, there are graders, water trucks and various support and service equipment in use.

Prospects: In September, GSR announced the results of its preliminary economic assessment on the development of an underground mining operation at its Wassa mine. The company plans to develop an underground mine that will operate in conjunction with the existing openpit mine. First production is expected from the underground mine in early 2016.

The GSR board has decided to progress to feasibility study and start construction of the exploration decline early in 2015.

Contact Person: Investor relations, Angela Parr.

Contact Details:
GSR,
tel +1 416 583 3800,
email investor@gsr.com, and
website http://www.gsr.com.