Golden Star Reports Fourth Quarter and Full Year 2016 Results

TORONTO, Feb. 21, 2017

HIGHLIGHTS:

• 2016 full year consolidated guidance achieved on all metrics of gold production, cash operating cost per ounce¹, All-In Sustaining Cost ("AISC") per ounce¹ and capital expenditures
• Gold production of 194,054 ounces in 2016 and 53,403 ounces during the fourth quarter of 2016, representing Golden Star's strongest quarterly performance of the year
• Cash operating cost per ounce¹ of $872 in 2016, an 11% decrease compared to 2015, and $880 per ounce in the fourth quarter of 2016, reflecting Golden Star's on-going transition into a low cost, non-refractory producer
• AlSC per ounce¹ of $1,093 in 2016 and $1,197 in the fourth quarter of 2016
• Capital expenditures of $84.4 million in 2016, with 84% representing development capital primarily for the advancement of the Wassa Underground Gold Mine ("Wassa Underground") and the Prestea Underground Gold Mine ("Prestea Underground")
  • Post-period end, commercial production was achieved at Wassa Underground on January 1, 2017
  • West Reef ore body intersected on 24 Level for the first time by Golden Star's mining operations at Prestea Underground and first Alimak mining equipment moved underground - commercial production on schedule for mid-2017
• Mine operating margin¹ of $27.5 million in 2016, compared to a mine operating loss¹ of $27.6 million in 2015 due to the closure of the high cost, refractory operations in the third quarter of 2015
• Cash generated by operations before changes in working capital¹ of $75.5 million ($0.26 per share) in 2016, a 41% increase compared to 2015
• Consolidated cash balance of $21.8 million, prior to the receipt of the $10 million scheduled advance payment under the streaming transaction on January 3, 2017 from RGLD Gold AG ("RGLD"), a subsidiary of Royal Gold, Inc.
• In addition the Company received net proceeds of C$32.7 million ($24.8 million) from the bought deal public offering, which completed on February 7, 2017
• Full year 2017 guidance represents an anticipated strengthening of gold production and profitability due to a 31-44% expected increase in ounces produced and an expected reduction in the cash operating cost per ounce¹

Notes:
1. See "Non-GAAP Financial Measures".

Sam Coetzer, President and Chief Executive Officer of Golden Star, commented:

"In 2016 Golden Star both progressed the development of our two transformational underground projects and achieved our full year guidance on all metrics.  In 2017 we will seek to consolidate on these achievements as we look to both expand our production and reduce our costs further.  2017 will also be another exciting year from a development perspective, as we look to bring our high grade Prestea Underground and our high grade Mampon deposit into production.  Today, Golden Star is a very different company from the one it was a year ago, with a substantially reduced risk profile and various sources of ore feeding our plants from two open pit mines and an underground mine.  I look forward to continuing our transformation into a high grade, low cost producer during the year ahead."

Fourth Quarter and Full Year 2016 Conference Call Details

The Company will conduct a conference call and webcast to discuss its results for the fourth quarter and full year 2016 on Wednesday, February 22, 2017 at 10:00 am ET.