Golden Star produced 224,861 ounces of gold in 2018 on a consolidated basis. Going forward the Company is focused on developing its high-grade underground production profile, rather than the higher cost, lower grade, open pit supply that was mined in the past. Wassa Underground has already proven to be well on this path and continues to show improvements year over year. Prestea faced a number of challenges during 2018, however with the actions taken in the last quarter of the year, it is now well positioned to ramp-up to the targeted run rate of 650 tpd over the coming months.

As illustrated by the graph, the transition from two open pit operations into two underground mines has now been achieved. As the Company heads through 2019, the cost improvements from this approach are expected to continue to be delivered at the same time as development capital spend is ramped up to enable Golden Star to achieve the longer-term potential of its assets.

Production Guidance

Golden Star’s 2019 consolidated production guidance is in line with actual production delivered in 2018, albeit the composition will be different.

As a result of Wassa Underground continuing to surpass expectations, and capital being allocated to upgrade infrastructure and the additional delineation and stope definition drilling, Wassa’s production guidance has been increased by 17% from the 2018 achieved production of 149,697 ounces of gold. In 2019, Wassa is expected to produce at an average rate of approximately 3,500 tpd moving towards a target of 4,000 tpd in 2020. Deep drilling has continued to show positive results and studies are ongoing to decide on the optimal long-term development of the asset, including the appropriate mining method. A Preliminary Economic Assessment is expected in the second half of 2019.

At Prestea, with the cessation of open pit mining and the ongoing ramp-up of underground volumes, guidance for 2019 has been set at 50,000-60,000 ounces of gold for the year. In the final quarter of 2018, the Company concluded the business rightsizing by reducing the workforce and establishing a lower direct operating cost base. During the fourth quarter of 2018 the plant was converted to a low tonnage, high grade configuration allowing it to efficiently treat the underground production. At the end of 2018, significant improvements were being recorded in Prestea’s lead production indicators.

Improvements in raise development, long hole drilling and blasting productivities are expected to continue to bring the production rate up to the 650 tpd target in 2019. At the beginning of January, one stope is in final drawdown and one stope is blasting/swell mucking. The raising, drilling and mining sequence is moving into a steady cycle which will facilitate the mucking of 650 tpd from final drawdown, swell mucking and raise ore sources.

Cost Guidance

As a result of positive reconciliation from mineral resources to mined ore and excess processing plant capacity, in 2019 capital has been allocated to install infrastructure that is expected to achieve increased mining rates of 4,000 tpd in early 2020 at Wassa. This capital includes $18.1 million of development capital, which will be allocated to mobile equipment, paste backfill plant construction, electrical upgrades and improvements to the tailing facilities.

Capital has also been allocated for delineation and stope definition drilling in order to potentially increase Proven Mineral Reserves.

A budget of $13.4 million has been set for exploration activities in 2019, broken down to include $9.8 million at Wassa for both inferred resource expansion drilling and inferred to indicated conversion, with an initial $1.5 million dedicated to Father Brown for infill expansion drilling. At Prestea, $1.6 million has been allocated for expansion drilling. The remaining $0.5 million is earmarked for follow-up drilling to be defined when results are delivered.

Exploration

In 2019, drilling is focused on Father Brown and the Wassa Southern Extension in order to accelerate organic growth. The excess plant capacity available at the operations improves capital efficiency, therefore the Company expects a higher rate of return when developing these projects. At Prestea, the same optionality exists as throughput increases.

The Company’s Exploration strategy is to build on the existing resource base at Wassa and Prestea and to prove up significant tonnage and grade to advance Father Brown to the development stage.

Management Change

Golden Star is also pleased to announce that effective January 2, 2019 Tania Shaw has been appointed Vice President, Investor Relations and Corporate Affairs. Ms. Shaw is a seasoned investor relations professional and has held positions in communications and investor relations in the gold sector for the last 14 years. She was previously Vice President of Investor Relations for Oceanus Resources, and prior to that held roles of increasing responsibility with Detour Gold, Primero Mining and Roxgold. Ms. Shaw obtained her CPIR designation (Certified Professional Investor Relations) in 2013 and is a member in good standing of the Canadian Investor Relations Institute.

Golden Star thanks Katharine Sutton for her contribution to the Company over the last two and a half years and wishes her well in her future endeavours.