Golden Star Resources Ltd. (TSX: GSC)(AMEX: GSS)(GSE: GSR) today announced its second quarter results for 2008. All currency in this news release is expressed in U.S. dollars, unless otherwise noted. In this press release, the second quarter of 2008 is compared to the first quarter of 2008 unless otherwise noted. The Company will host a live webcast and conference call to discuss its quarterly results on Wednesday, August 6, at 11:00 a.m. ET. To access the Webcast and conference call, go to the home page of the Company’s website, www.gsr.com.

Tom Mair, President and CEO, said, “We are pleased to report that good progress is being made at both our mine sites. The Bogoso sulfide processing plant improved recovery rates of the transition ores currently being processed from the first quarter’s 59% to 70% in the second quarter. Toward the end of 2008, we expect to access fresh sulfide ore which testwork indicates will yield higher flotation recovery and consequently higher overall recovery. The Wassa mine continued to deliver according to expectations, construction of the haul road from Benso is progressing well, and we expect the project to be on time and on budget with delivery of high grade ore from Benso to Wassa beginning in the third quarter as planned.

“Overall, we were able to increase gold revenues 32% and gold sales 36% this quarter as compared to last quarter despite realized gold prices down 3% from the first quarter. As we predicted earlier this year, significant progress is being made at both our mining operations and is expected to continue in the remaining half of the year resulting in improved results in 2009 and beyond.”

QUARTERLY HIGHLIGHTS

• Gold revenues increased 32% to $70.4 million compared to $53.2 million in the first quarter of 2008 and increased 150% compared to $28.1 million in the second quarter of 2007;
• Gold sales increased 36% to 78,313 ounces from both Bogoso/Prestea and Wassa versus the first quarter;
• Average realized gold price of $900 per ounce, versus $926 in the first quarter of 2008;
• Consolidated cashflow from operations provided $9.7 million ($0.041 per share), compared to a use of $5.0 million ($0.021 per share) from operations in the first quarter;
• Consolidated net loss was $6.9 million, or $0.029 per share.

During the three months ended June 30, 2008, Golden Star’s revenues increased by 32% over the first quarter to a Company record of $70.4 million. Gold sales increased 36% over the first quarter to 78,313 ounces from 57,427 ounces while average cash operating costs increased to $757 per ounce from $652 per ounce. During the second quarter, we incurred a consolidated net loss of $6.9 million compared to a net loss of $3.9 million for the first quarter. Rising costs of labor, energy, raw materials, reagents and other consumables increased second quarter operating costs relative to the first quarter. Realized gold prices averaged $900 per ounce, approximately 3% down from $926 per ounce in the first quarter.

BOGOSO/PRESTEA

Second quarter gold sales from Bogoso/Prestea were 46,934 ounces compared with 31,414 ounces of gold during the first quarter. Bogoso/Prestea generated a $5.7 million operating margin loss in the second quarter with a $2.9 million operating margin loss in the first quarter.

Bogoso Sulfide Plant

In the second quarter, the Bogoso sulfide plant demonstrated significant operational improvements. Overall gold recovery in the sulfide plant improved to an average of 70% during the second quarter, as expected from the transition ores currently being processed. As the ore pits deepen and we access increasing amounts of fresh sulfide material in the second half, we expect flotation recovery to improve and consequently overall recovery to further improve. Ongoing plant modifications and operating efficiencies should also contribute to improved gold recoveries, higher gold production and lower cash operating costs going forward.

In the first quarter of this year, we had an average of eight bio-oxidation reactors in operation which increased to an average of 11 tanks during the second quarter. We completed the quarter with 12 tanks in service out of a total of 14. The increased number of bio-oxidation tanks in use was critical in improving overall gold recovery from the sulfide processing plant from an average of 59% in the first quarter to an average of 70% in the second quarter.

As disclosed in previous news releases, we are campaigning oxide ores and transition ores through the Bogoso oxide plant, according to availability of oxide ores and sulfide plant requirements. This strategy of optimizing the two plants’ availabilities will continue.

WASSA

Wassa’s operating margin for the second quarter totaled $4.3 million on sales of 31,379 ounces of gold compared to an operating margin of $6.7 million on sales of 26,013 ounces of gold for the first quarter. The cash operating costs at Wassa increased by 25%, from $448 per ounce in the first quarter to $560 per ounce for the second quarter mostly due to cost increases in labor, energy, reagents and raw materials.

DEVELOPMENT PROJECTS

HBB Properties

Significant progress was achieved on the construction of the 50 kilometer haul road linking the Benso deposit to the Wassa processing plant. Pre-stripping and mining of the Benso deposits has commenced with the first oxide ore being stockpiled on site. We expect that Benso ore will begin to be hauled to the Wassa plant in the third quarter as planned. The higher grades of the Benso ore will contribute to the improved performance at Wassa.

Prestea South Properties

The permitting process for the Prestea South properties continues. Upon receipt of permits, construction of the 10 kilometer extension of the haul road from Prestea will be built for access to the southern deposits including Tuapim and Bondaye. We expect to be hauling oxide ores from Prestea South to the Bogoso oxide plant from the first half of 2009.

CASH AND CASH FLOW

At the end of June 2008, our cash, cash equivalents and short-term investments totaled $37.1 million, down from $54.7 million at the end of March 2008 and $75.8 million at the end of 2007. Operations provided $9.7 million of cash in the second quarter, compared to using $5.0 million during the first quarter.

Net investing activities used $41.5 million of cash during the first half of the year, including $20.9 million on mine development and $5.4 million for new equipment.

Net financing activities provided $1.8 million during the first half of the year. A total of $5.3 million was received from the offering of common shares in connection with our listing on the Ghana Stock Exchange and $0.9 million came through the exercise of employee stock options. Scheduled loan payments absorbed $9.0 million of cash.

Liquidity Outlook

We anticipate that all our cash needs for the remainder of 2008 will be met by improved operational cash flows. Cash on hand, cash generated from operations at Wassa and improvements in operations at Bogoso/Prestea are expected to be sufficient to cover capital and operating needs for the remainder of the year.

LOOKING AHEAD

Our objectives for the remainder of 2008 include:

• Continuation of optimization of the Bogoso sulfide plant;
• Construction and development of the Benso project at HBB, with first ore delivered to Wassa during the third quarter of 2008;
• Secure the permits for the Prestea South project; and,
• Continue exploration programs at Bogoso/Prestea, Wassa and the HBB project.

As a result of the considerable increases in the costs of labor, raw material, reagents, equipment, consumables and energy during the first half of 2008, we have conducted a re-optimization of the mining and processing schedules to reduce the impact of these cost elements and maximize profitability. Our revised 2008 and 2009 guidance is as follows:

FINANCIAL STATEMENTS

The following information is excerpted from the Company’s unaudited consolidated financial statements and notes thereto contained in our Form 10-Q, which we intend to file with the SEC today and which will be available on our website.