Q2 2014 Financial Results

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<ul><li> 1. F I N A N C I A L R E S U L T S 0 7 . 1 4 1 </li></ul><p> 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: our production expectations for 2014 including our production guidance; predictions regarding cash operating costs per ounce for 2014, 2015 and over the life of mine target; estimated capital expenditures for 2014 [and 2015]; anticipated all-in sustaining costs for 2014, 2015 and over the life of mine target; expected cash flow over the remainder of 2014; timing of drilling, drilling results and concentration on infill drilling; the impact of cost cutting initiatives; improved access to ore in 2014; planned head grades; ability to generate cash; timing for completion of a feasibility study at Wassa underground; timing of Wassa Preliminary Economic Assessment, resource models and engineering and mine scheduling; timing of Wassa Underground construction; timing of Wassa underground to commercial production; timing of revised preliminary economic assessment at Prestea Underground; timing of Prestea Underground to commercial production; timing of updated mineral reserve and mineral resource estimates at Wassa; and our 2014 and 2015 outlook and objectives for the remainder of 2014 and 2015. 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; 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. 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 and all-in sustaining cost per ounce, cost per tonne mined and cost per tonne milled. These measures should be considered as Non-GAAP Financial Measures as defined in applicable securities laws and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. We use cash operating cost per ounce as a key operating indicator. We monitor these measures monthly, comparing each month's values to prior period's values to detect trends that may indicate increases or decreases in operating efficiencies. This measure is also compared against budget to alert management to trends that may cause actual results to deviate from planned operational results. We provide this measure to our investors to allow them to also monitor operational efficiencies of our mines. We calculate these measures for both individual operating units and on a consolidated basis. There are material limitations associated with the use of such non-GAAP Financial Measures. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. 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. 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 Stars 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) NI 43-101 Technical Report on Mineral Resources and Mineral Reserves Golden Star Resources Ltd, Wassa Gold Mine, Ghana Effective Date December 31, 2012, prepared by SRK Consulting (UK) Limited and prepared under the supervision of Martin P. Raffield and S. Mitchel Wasel; and (iii) Golden Stars Annual Report for 2013. Additional information is included in Golden Stars 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. Q2 2014 Financial Results Presentation2 3. MANAGEMENT PARTICIPANTS Daniel Owiredu Executive Vice President and Chief Operating Officer Sam Coetzer President and Chief Executive Officer Andr van Niekerk Executive Vice President and Chief Financial Officer Martin Raffield Senior Vice President, Technical Services 4. Q2 2014 OPERATIONAL REVIEW 4 Q2 2014 Financial Results Presentation MINING DEVELOPMENT OPTIMISATION 61,721 ounces produced and sold Q214 Wassa development DRILLING delivers strong results 70 m @ 5.8 g/t Au 45 m @ 8.3 g/t Au Internal study on LOW CAPEX option for Prestea Underground RAINFALL heavy over period, hampered access and mining PEA on WASSA UNDERGROUND nearing completion Study yields +ve OUTCOME Bogoso push backs COMPLETE Announcement due end Q314 Progressing to PEA in Q314 5. Q2 2014 FINANCIAL OVERVIEW Golden Star Resources Q2 2014 Financial Results Presentation5 LOWER REVENUE Revenue decreased quarter over quarter to $80 M with fewer ounces of gold sold EVEN LOWER COSTS Cost of sales reduced 7% to $78 M Mine operating expenses reduced 11% to $74 M COC per ounce marginally reduced to $1,201 REDUCED LOSS Adjusted net loss reduced 38% quarter over quarter to $8 M 6. COST AND EXPENSES REDUCING Cost of Sales Excluding Depreciation and Amortization ($ M) Golden Star Resources Q2 2014 Financial Results Presentation6 Mine Operating Expenses ($ M) 7. Cash operating costs per ounce consistent from Q1 to Q2 2014 Significant achievement of operational efficiencies at Wassa Strip ratio lower at both operations Focus on margin growth, development of new projects expected to reduce cash costs going forward CASH OPERATING COSTS PER OUNCE1 (1) See note on slide 2 regarding Non-GAAP Financial Measures Q2 2014 Financial Results Presentation7 AISC: $1,349 AISC: $1,523 AISC: $1,050-1,150 8. 2014 GUIDANCE REVISION 8 Golden Star Resources Q2 2014 Financial Results Presentation ORIGINAL REVISED Production oz. 295-320,000 260-280,000 Cash Operating Costs $ per oz. 950-1,000 1,000-1,100 Capital Expenditure $ Ms 50 36 9. WASSA OPERATIONAL PERFORMANCE Q2 2014 Q1 2014 Ore mined kt 723 649 More ore available in Wassa Main pit Waste mined kt 2,812 4,440 Wassa Main pit established in Q114 Completion of mining of Father Brown in Q214 Ore processed kt 661 704 In line with rated capacity for fresh rock Grade processed g/t 1.48 1.62 Completion of mining at Father Brown Recovery % 92.8 92.7 Gold sales oz. 29,446 34,838 9 Q2 2014 Financial Results Presentation Wassa production forecast for 2014 revised to 115-125,000 ounces 10. WASSA FINANCIAL PERFORMANCE Cash operating cost per oz1 Increased costs per ounce anticipated with head grade reducing Mine operating expenses reduced to $29 M (Q1 2014: $34 M) Operational efficiencies Reduced strip Full year cash operating costs expected to be $925-1,000/oz. Reduction in costs per ounce from 2015 as grade increases with depth (1) See note on slide 2 regarding Non-GAAP Financial Measures Q2 2014 Financial Results Presentation10 11. BOGOSO OPERATIONAL PERFORMANCE 11 Q2 2014 Financial Results Presentation Q2 2014 Q1 2014 Ore mined refractory kt 531 627 Limited pit access Waste mined kt 3,408 4,924 Push backs complete Refractory ore processed kt 610 708 Ore availability Refractory grade g/t 2.10 1.79 Accessed some high grade material Gold recovery refractory % 68.5 66.7 Non-refractory ore processed kt 331 404 Rain hampered hydraulic mining Non-refractory grade g/t 0.82 0.94 Deeper benches have lower grade Gold recovery - non-refractory % 32.5 41.0 Deeper benches with differing metallurgy Gold sold refractory oz. 28,620 26,010 Gold sold non-refractory oz. 3,655 4,964 Bogoso production forecast for 2014 revised to 145-155,000 ounces Slow start to Q3 with power interruptions 12. BOGOSO FINANCIAL PERFORMANCE Cash operating cost per oz1 Mine operating expenses reduced to $45 M (Q1 2014: $49 M) Higher grade processed reduced costs per ounce Achievement of cost saving targets set in 2013 Full year cash operating costs per ounce of $1,100 1,200 expected Cash operating costs per ounce expected to decrease over remainder of 2014 and 2015 Capex reduced from $31.0 M to $18.0 M (1) See note on slide 2 regarding non-GAAP financial measures Q2 2014 Financial Results Presentation12 13. BALANCE SHEET Cash on hand at period end of $43.4 M Accounts payable reduced with deferral of creditor payments Negative working capital at quarter end Revenue and cash flow expected to improve in H2 2014 Full year capex reduced from $50 M to $36 M Further capital expenditure for 2014 of $18 M budgeted, reduced from $31 M originally budgeted Ecobank loan facility of $10.0 M remaining Q2 2014 Financial Results Presentation13 14. WASSA DEVELOPMENT Q2 2014 Financial Results Presentation14 Wassa Main Grade Thickness Contour (gt)*m 12 holes, totaling 6,615 meters drilled Q2 2014 Results confirmed and extended zones of high grade mineralization on step out hole 450 m south: 70 m grading 5.8 g/t Au 50 m south: 45.4 m with grading 8.3 g/t Au Infill drilling continues to confirm continuity, grade and thickness Wassa Main Grade Thickness Contour (gt)*m December 2011 July 2014 15. WASSA GROWTH Results support block modelling and stope design for PEA Infill drilling continues in Q3 2014 Wassa underground PEA progressing well Resource models nearing completion Detailed engineering and mine scheduling thereafter PEA complete Q3 2014 Step out drilling to continue, pending positive PEA 15 Q2 2014 Financial Results Presentation 16. PRESTEA UNDERGROUND Q2 2014 Financial Results Presentation16 High grade ore body, 19 g/t Au in situ Feasibility Study completed in 2013 demonstrated positive economics Lower capex, quicker production alternative evaluated Internal study completed in Q2 2014 Handheld mining = less dilution Significantly lower capex Quicker to production Similar cash operating costs per ounce to Feasibility Study Progressing to PEA, expected to be complete Q4 2014 17. 17 CATALYSTS FOR VALUE CREATION Q2 2014 Financial Results Presentation Wassa Underground construction begins PEA on underground mining at Wassa complete Establish Wassa Main pit Complete push back at Bogoso Updated Mineral Resource estimate for Wassa Q3 2014 Q4 2014Q2 2014 2015 2016 Operational cost savings achieved Revised PEA for Prestea Underground First production Prestea Underground First production from Wassa Underground * Development of projects dependent on positive study results and adequate access to finance 18. Investment Case Established gold mining company with 15 years of production history in Ghana 3.9 M oz. in Mineral Reserves &amp; a further 2.4 M oz. in Measured &amp; Indicated Mineral Resources Successfully reduced overall operating costs over last two years 18 Current pipeline of development projects expected to reduce unit costs further Offers investors leveraged, un-hedged exposure to the gold price Low operational risk in a stable African mining jurisdiction Significant exploration &amp; development upside development 19. PROVEN AND PROBABLE RESERVES 19 Q2 2014 Financial Results Presentation Dec 31, 2013 Proven Mineral Reserve Dec 31, 2013 Probable Mineral Reserve Dec 31, 2013 Proven and Probable Mineral Reserve tonnes (000) grade g/t Au ounces (000) tonnes (000) grade g/t Au ounces (000) tonnes (000) grade g/t Au ounces (000) Wassa Main - - - 33,721 1.72 1,863 33,721 1.72 1,863 Father Brown - - - 694 4.31 96 694 4.31 96 Stockpiles 438 0.68 10 59 0.54 1 497 0.67 11 Subtotal Wassa 438 0.68 10 34,473 1.77 1,960 34,911 1.75 1,970 Bogoso 2,930 2.65 250 1,731 2.59 144 4,662 2.63 394 Dumasi 3,116 2.39 239 5,826 2.36 443 8,941 2.37 682 Mampon - - - 1,133 5.24 191 1,133 5.24 191 Prestea South 969 2.74 85 2,170 2.52 176 3,139 2.59 261 Prestea Underground - - - 1,434 9.61 443 1,434 9.61 443 Stockpiles 106 1.79 6 - - - 106 1.79 6 Subtotal Bogoso 7,122 3 581 12,294 4 1,397 19,415 3 1,977 Total 7,559 2.43 590 46,767 2.23 3,357 54,327 2.26 3,947 * Please refer to the relevant disclosure on Mineral Reserve and Mineral Resource Estimates contained in our Annual Report for the year ended December 31, 2013 20. MEASURED AND INDICATED MINERAL RESOURCES 20 Q2 2014 Financial Results Presentation Dec 31, 2013 Measured Mineral Resources Dec 31, 2013 Indicated Mineral Resources Dec 31, 2013 Measured and Indicated Mineral Resources tonnes (000) grade g/t Au ounces (000) tonnes (000) grade g/t Au ounces (000) tonnes (000) grade g/t Au ounces (000) Wassa Main 270 1.44 13 44,812 1.78 2,568 45,082 1.78 2,580 Wassa Underground - - - 2,446 3.67 289 2,446 3.67 2...</p>