We Are We Are We Are GROWING GHANA GOLD
We Are .63+,5:;(9 2006 Annual Report Golden Star Resources Ltd. is a mid-tier gold mining company with two operating mines in Ghana, West Africa. Production is expected to nearly double from approximately 200,000 ounces in 2006 to 390,000 ounces in 2007. Additional growth will be in the form of exploration success and appropriate acquisitions to provide long-term shareholder value.
Our strategy of acquiring property during the down cycle of 1999 to 2002 has allowed Golden Star to become [OLKVTPUHU[OVSKLYVMTPUPUNWYVWLY[PLZVU[OLWYVSPÄJ(ZOHU[P.VSK;YLUK;OPZWVY[MVSPVVMWYVWLY[PLZ HSVUN^P[O[OLJVTWSL[PVUVMV\Y)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[^PSSKYP]LV\YNVSKWYVK\J[PVUNYV^[O V]LY[OLUL_[`LHY;OLWV[LU[PHSKL]LSVWTLU[VM/^PUP)\[YLHUK)LUZVHKKZZPNUPÄJHU[]HS\L[VV\Y>HZZH gold mine, as does the potential development of Prestea Underground mine to Bogoso/Prestea.
Shares of Golden Star are widely held by both retail and institutional shareholders and are traded on both [OL(TLYPJHU:[VJR,_JOHUNLHUK;VYVU[V:[VJR,_JOHUNL\UKLY[OLZ`TIVSZ.::HUK.:*YLZWLJ[P]LS`
GHANA
Bogoso/ Prestea Accra Wassa
Table of Contents
1 Highlights in 2006 15 Exploration 36 Consolidated Financial 2 Letter to Shareholders 16 Sustainability Statements 6 Mineral Reserves & Mineral 17 Selected Financial Data 68 Board of Directors Resources 18 Management’s Discussion IBC Corporate Information 9 Operations: Bogoso/Prestea and Analysis 12 Operations: Wassa
Front Cover
Growth, Ghana and gold are recurring themes in the history and evolution of Golden Star Resources. Since 1999, when Peter Bradford set out to transform the company from an exploration company into a gold producer, these themes have maintained their importance in Golden Star’s strategies for growth. The stainless steel tanks house the BIOX®VYNHUPZTZ[OH[MVYT[OLIHZPZVM[OL)VNVZV:\SÄKL Expansion Project, which will be the cornerstone of our future growth. Our employees are the fundamental drivers of our success and our Ghanaian workforce is second to none. The gold doré bar is the end result of all the mining and processing efforts.
Forward-Looking Statements are made in this report to give the reader an indication of our business prospects, plans and objectives. Although we believe these statements are reasonable as of the date of this report, readers are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results, performance or achievements to differ materially from those stated. There can be no assurance that future developments affecting Golden Star will be those anticipated by us. Readers should refer to the risks involved in making MVY^HYKSVVRPUNZ[H[LTLU[Z^OPJOHYLNP]LUVUWHNLZHUKVMV\Y-VYT2HZÄSLKH[^^^ZLKHYJVTHUK^^^ZLJNV]
Non-GAAP Measures are used in this report, in particular “total cash cost” and “cash operating cost” on a per-ounce of gold basis. This information differs from measures of performance prepared in accordance with GAAP. Readers should examine the cautionary and explanatory statement on pages HUK VMV\Y-VYT2HZÄSLKH[^^^ZLKHYJVTHUK^^^ZLJNV] Highlights in 2006
• Significant progress made on the Bogoso Sulfide Expansion Project with commercial production slated for the second quarter of 2007 • Sold non-core assets for after-tax capital gain of $81.2 million • Improved quarter-on-quarter progress throughout the year • Effectively managed power rationing situation in Ghana • Broadened and strengthened management team • Benefited from Ghanaian Government’s removal of illegal miners from our mining concession areas • Continued progress at Hwini-Butre, Benso, and Prestea Underground projects
GSR Stock Investment Compared to Indices Production1 Reserves1 (thousands Canadian Dollars) (thousands ounces) (millions ounces)
$ 1,200 500 5
$ 1,000 400 4
$ 800 300 3 $ 600 200 2 $ 400
100 1 $ 200
$ 0 0 0 01 02 03 04 05 06 02 03 04 05 06 07 08 02 03 04 05 06
Golden Star Resources Estimated Proven & Probable Mineral Reserves Canadian Gold Index S&P/TSX Composite
Results 2006 2005 Production (thousands oz)1 201.4 201.0 Reserves (millions oz)1 4.15 4.05 Cash operating cost ($/oz) $ 442 $ 383 Total cash cost ($/oz) $ 460 $ 396 Gold price realized ($/oz) $ 607 $ 446 Net (loss)/earnings ($ millions) $ 64.7 $ (13.5) (Loss)/earnings per share ($) $ 0.31 $ (0.09) 6WLYH[PUNJHZOÅV^ TPSSPVUZ3 $ 5.8 $ 1.1 Capital expenditures ($ millions) $ 170.7 $ 110.8 Cash at year end ($ millions) $ 27.1 $ 89.7 Debt at year end ($ millions) $ 86.3 $ 71.2 Shares outstanding at year end (millions) 232.1(2) 206.0
(1) Before minority interests (2) Shares outstanding at March 12, 2007 (millions) (3) After investing $22.3 million in ore stockpile inventory.
(SSJ\YYLUJ`PZZ[H[LKPU<:KVSSHYZ[OYV\NOV\[[OPZYLWVY[L_JLW[^OLYLUV[LK
1 2006 Annual Report Our new BIOX® plant at Bogoso/Prestea is expected to start commercial production in the second quarter of 2007, at which time it will be among the largest operating BIOX® plants in the world.
Peter Bradford President and CEO Letter to Shareholders
:PNUPÄJHU[WYVNYLZZ^HZTHKLPU 5V[HIS`^LOH]L! Improving Performance From Existing Operations
• Stabilized our operations at the Bogoso/Prestea and Wassa Mines; ([IV[OVWLYH[PVUZ)VNVZV7YLZ[LHHUK>HZZH^LTHKLTLHZ\YHISL PTWYV]LTLU[Z[VPUJYLHZL[OLYLSPHIPSP[`VMVWLYH[PVUZHUK[OLJVZ[ 7YVNYLZZLK[OL)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[PUYLHKPULZZMVY WYVÄSL;OLSH[[LY^HZHJOPL]LKPU[OLMHJLVMPUJYLHZPUNJVZ[WYLZZ\YLZ ÄUHSJVTTPZZPVUPUNHUKJVTTLYJPHSVWLYH[PVUZPULHYS` " L_WLYPLUJLKPUK\Z[Y`^PKL :VSKUVUJVYLHZZL[ZMVYHUHM[LY[H_JHWP[HSNHPUVM TPSSPVU" • Strengthened and broadened our management team; -\UKHTLU[HSS`>HZZHWLYMVYTLK^LSSTLL[PUNV\Y[OYV\NOW\[HUK HIZVS\[LTVU[OS`JVZ[[HYNL[Z/V^L]LY[OLTPULKNYHKLJVU[PU\LK • Improved working relationships with our stakeholder commu- [V\UKLYWLYMVYTYLSH[P]L[V[OLYLZV\YJLTVKLS(ZHYLZ\S[^L nities; and LUNHNLKHUPUKLWLUKLU[JVUZ\S[HU[[VKL]LSVWHUL^YLZV\YJL • Strengthened our policies, procedures, and activities in the TVKLSMVY>HZZH;OPZ^VYR^OPJO^HZJVTWSL[LKSH[LPU governance and sustainability areas. YLZ\S[LKPUHSV^LYYLZV\YJLNYHKLHUK[OLYLJSHZZPÄJH[PVUVMZVTL 6]LYHSS^LH[[HPULKYLJVYKNVSKZHSLZPU >LL_WLJ[[V VM[OLTPULYHSYLZV\YJL;OLLMMLJ[^HZHSV^LYTPULYHSYLZLY]LMVY ZPNUPÄJHU[S`Z\YWHZZ[OPZSL]LSPU ^P[OHULHYKV\ISPUNVM >HZZH ^OPJO ^PSS MVYT [OL IHZPZ MVY TVYL YLSPHISL WSHUUPUN HUK gold production year-on-year. WYVK\J[PVULZ[PTH[LZPU[OLM\[\YL
0UTPK ^LJVTTLUJLKTPUPUN[OLOPNOLYNYHKL:(2KLWVZP[Z H[>HZZH;OPZJVU[YPI\[LK[VOPNOLYTVU[OS`NVSKZHSLZPU[OLZLJVUK OHSMVM HUK^LL_WLJ[[OPZ[YLUK[VJVU[PU\LPU[V
([)VNVZV7YLZ[LH^LJVTWSL[LKTPUPUN[OL7SHU[5VY[OWP[HUK JVTTLUJLKKL]LSVWTLU[VM[OL7HTWLWP[ RPSVTL[LYZ[V[OL ^LZ[ VM )VNVZV WYV]PKPUN H UL^ ZV\YJL VM VYL MVY [OL V_PKL WYVJLZZPUNWSHU[3H[LYPU ^LWSHU[VZ[HY[[OLKL]LSVWTLU[VM [OL7YLZ[LH:V\[OHYLH[VZ\WWSLTLU[[OLZ\WWS`VMV_PKLVYL
Golden Star 2 At the heart of the BIOX® plant are 14 stainless steel BIOX® tanks where the Careful planning to ensure an optimal blend of acid-generating IHJ[LYPHLH[[OLZ\SÄKLPUV\YJVUJLU[YH[LKVYL[V\USVJR[OLNVSK and acid-consuming rock will help to keep our BIOX® so that it can be recovered by conventional methods. operating costs per tonne below the industry average.
Bogoso Sulfide Expansion Project What’s Next? )`MHY[OLIPNNLZ[KL]LSVWTLU[H[)VNVZV7YLZ[LHPU ¶HUK >LL_WLJ[[OLMLHZPIPSP[`Z[\K`MVY[OL/^PUP)\[YLHUK)LUZV MVYV\Y*VTWHU`¶^HZ[OL)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[ WYVWLY[PLZZV\[OVM>HZZH[VILÄUHSPaLKHUKV\Y)VHYKVM+PYLJ[VYZ [V HWWYV]L [OL KL]LSVWTLU[ VM [OLZL WYVQLJ[Z PU [OL ZLJVUK ([`LHYLUK[OLTHQVYP[`VMJVUZ[Y\J[PVUHJ[P]P[PLZMVY[OLWYVQLJ[^LYL X\HY[LYVM ;OPZZOV\SKHSSV^JVTTLUJLTLU[VMVYLTPUPUN JVTWSL[LKHUKJVTTPZZPVUPUNVM[OLUL^WSHU[OHKJVTTLUJLK HUKOH\SHNL[V>HZZHMVYWYVJLZZPUNK\YPUN[OLZLJVUKOHSMVM ;OL[PTLJVUZ\TPUNWVY[PVUVM[OLJVTTPZZPVUPUNWYVJLZZPZ[OL ;OLOPNOLYNYHKLVYLMYVT/^PUP)\[YLHUK)LUZV^OPJO I\PSK\WVM)06?®TH[LYPHS;OLÄYZ[TVK\SLJVUZPZ[PUNVMZL]LU ^PSSKPZWSHJLSV^NYHKL>HZZHVYLPZL_WLJ[LK[VULHYS`KV\ISL[OL [HURZ^HZM\SSVMPUVJ\SH[LI`[OLLUKVM-LIY\HY` HUK^L HUU\HSPaLKNVSKWYVK\J[PVUYH[LH[>HZZHHUK[VJVU[YPI\[L[VH ILNHUWYVJLZZPUNZVTLTH[LYPHSPUV\Y*03[HURZ^P[ONVSKWYVK\J[PVU SVUNLYTPULSPMLHUKSV^LYJHZOVWLYH[PUNJVZ[Z L_WLJ[LKPU4HYJO;OLZLJVUKTVK\SLPZL_WLJ[LK[VILÄSSLKHUK 3H[LYPU ^LL_WLJ[[VJVTWSL[LHWYLSPTPUHY`KL]LSVWTLU[ JVTTPZZPVULKI`[OLLUKVM4HYJO WSHUMVY[OL7YLZ[LH
3 2006 Annual Report Golden Star supports a number of schools within In late 2006 the construction of the new crusher house was near completion. its community catchment areas. This equipment has expanded Bogoso/Prestea crushing capacity almost ten-fold.
Cost Pressures Continue HUKZLSLJ[WYVQLJ[Z[VILÄUHUJLK;OLM\UKWYV]PKLZH[YHUZWHYLU[ 0UK\Z[Y`^PKLJVZ[WYLZZ\YLZHSZVPTWHJ[LK.VSKLU:[HYPU TLJOHUPZTMVY[OLTHUHNLTLU[VMV\YJVTT\UP[`KL]LSVWTLU[ ^P[OPUJYLHZLKL_WLJ[H[PVUZMYVTLTWSV`LLZHUKNLULYHSS`OPNOLY JVU[YPI\[PVUZ^OPSLLUZ\YPUNJVTT\UP[`I\`PU[OYV\NO[OLPY WYPJLZMVYLX\PWTLU[HUKJVUZ\THISLZ>P[O[OLJVU[PU\LKOPNO PU]VS]LTLU[PU[OLWYVQLJ[ZLSLJ[PVUWYVJLZZ SL]LSVMHJ[P]P[`PU[OLTPUPUNZLJ[VY[OLZLJVZ[WYLZZ\YLZHYL >LHSZVLTIHYRLKVUHZPNUPÄJHU[WYVQLJ[[VLZ[HISPZOHWHSTVPS expected to prevail into 2007 and beyond. WSHU[H[PVU PU [OL JH[JOTLU[ HYLH HYV\UK V\Y TPULZ >L OH]L >L JVU[PU\L [V HKKYLZZ [OPZ ZP[\H[PVU I` PKLU[PM`PUN LMÄJPLUJ` ZLJ\YLKSHUKJVTTP[TLU[ZPUL_JLZZVM OLJ[HYLZ[V[OL PTWYV]LTLU[Z HUK I` ZLLRPUN UVU[YHKP[PVUHS ZV\YJLZ VM Z\WWS` WYVQLJ[WSHU[LKV]LYZLLKSPUNZHUKLZ[HISPZOLKHU\YZLY` [OH[WV[LU[PHSS`VMMLYSV^LYWYPJPUNZ[Y\J[\YLZ ^P[OHJHWHJP[`MVYZLLKSPUNZ([TH[\YP[`[OPZWYVQLJ[PZ L_WLJ[LK[VWYV]PKLLTWSV`TLU[MVYTVYL[OHUMHTPS` Non Core Assets Sold NYV\WZ¶YLK\JPUN\ULTWSV`TLU[WYLZZ\YLZHYV\UKV\YTPULZ and providing employment alternatives to illegal mining. 0U [VWYV]PKLHWVY[PVUVM[OLM\UKPUNMVYV\Y)VNVZV:\SÄKL ,_WHUZPVU7YVQLJ[^LZVSKV\YOVSKPUNZPU4V[V.VSKTPULZ3PTP[LK HUK,<969LZZV\YJLZ:(YLHSPaPUNHUHNNYLNH[LHM[LY[H_NHPU Strengthened Management Team VM TPSSPVU 9LJVNUPaPUN[OH[^LOH]LNYV^UX\PJRS`^L[VVRZ[LWZPU [V Z[YLUN[OLU[OLTHUHNLTLU[[LHT6U[OLVWLYH[PVUHSZPKL^L Governance and Sustainability HWWVPU[LK*VSPU)LSZOH^HZ=PJL7YLZPKLU[6WLYH[PVUZHUK+HUPLS 6^PYLK\HZ=PJL7YLZPKLU[.OHUH >LJVU[PU\L[VZ[YLUN[OLUV\YWVSPJPLZHUKWYVJLK\YLZ[VTLL[ increasing Governance requirements, our sustainability commitments, (SZV VU [OL VWLYH[PVUHS ZPKL ^L HWWVPU[LK +H]PK 7HY[YPKNL HZ HUK[OLL_WLJ[H[PVUZVMV\YZ[HRLOVSKLYZ .LULYHS 4HUHNLY )VNVZV7YLZ[LH HUK 7L[LY )V\YRL HZ =PJL President Technical Services. 6\YJVTT\UP[`KL]LSVWTLU[JVTTP[TLU[^HZMVYTHSPaLKPU ^P[O[OLLZ[HISPZOTLU[VM[OL.VSKLU:[HY+L]LSVWTLU[-V\UKH[PVU >LJVU[YPI\[L[V[OLM\UKIHZLKVUNVSKWYVK\J[PVUHUKWYVÄ[>L ^VYR^P[OJVTT\UP[`IHZLKJVUZ\S[H[P]LJVTTP[[LLZ^OVPKLU[PM`
Golden Star 4 One of our Liebherr 994 excavators mining oxide ore at Wassa.
+Y4HYR;OVYWL^HZHWWVPU[LK=PJL7YLZPKLU[:\Z[HPUHIPSP[` Our Strongest Position Ever [VZWLHYOLHKHUKZ[YLUN[OLUV\YLMMVY[ZPU[OLOLHS[OZHML[` >P[O[OLJVTWSL[PVUVM[OL)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[HUK environmental, and community areas. [OLYLJLU[HUKOPNOS`Z\JJLZZM\SW\ISPJVMMLYPUN[VYHPZL TPSSPVU Golden Star is in the strongest position it has ever been. The ;VTLL[[OLNYV^PUNO\THUYLZV\YJLJOHSSLUNLVMHUL_WHUKPUN L_WHUZPVUWYVQLJ[^PSSKLSP]LYHOPNOLYWYVK\J[PVUYH[L^OPJO^PSS JVTWHU`^LHWWVPU[LK;LK:[YPJRSLYHZ=PJL7YLZPKLU[/\THU WYV]PKLLJVUVTPLZVMZJHSL[V[OPZWSHU[HUK\USVJR[OL]HS\LPU[OL Resources & Administration. ZPNUPÄJHU[Z\SÄKLYLZV\YJLH[)VNVZV7YLZ[LH 0U-LIY\HY` ^LHWWVPU[LK;VT4HPYHZ*OPLM-PUHUJPHS6MÄJLY Our Thanks Power Supply In Ghana Being Addressed to Reduce Risk 6\YLTWSV`LLZOH]L^VYRLK[PYLSLZZS`PU [VZ[HIPSPaLV\YL_PZ[PUN 3V^SL]LSZPU[OLO`KYVLSLJ[YPJ^H[LYZ\WWS`KHTHZHYLZ\S[VMSV^ VWLYH[PVUZHUK[VWYVNYLZZ[OLJVUZ[Y\J[PVUHUKJVTTPZZPVUPUNVM YHPUMHSSHSVUN^P[OTHPU[LUHUJL[V[OL[OLYTHSWV^LYZ[H[PVUHUK [OL )VNVZV :\SÄKL ,_WHUZPVU 7YVQLJ[ 0 [HRL [OPZ VWWVY[\UP[` [V SV^LYWV^LYPTWVY[ZMYVT*[LK»0]VPYLYLZ\S[LKPUWV^LYZOVY[HNLZ [OHUR[OLTMVY[OLPYOHYK^VYRHUKJVTTP[TLU[[V.VSKLU:[HY»Z HUKWV^LYYH[PVUPUNPU.OHUHPU[OLSH[[LYWHY[VM VWLYH[PVUZHUKNYV^[O
>L WYVHJ[P]LS` THUHNLK [OPZ WYVISLT I` TPUPTPaPUN WV^LY 0HSZV[OHUR`V\V\YZOHYLOVSKLYZMVY`V\YSV`HS[`HUKZ\WWVY[ conZ\TW[PVU[OYV\NOUVYTHSJVUZLY]H[PVUTLHZ\YLZHZ^LSSHZ Yours sincerely, VWLYH[PUNHU\TILYVMV\YV^UKPLZLSNLULYH[VYZL[Z[VTLL[[OL YLX\PYLKYLK\J[PVUPUWV^LYKYH^MYVT[OLUH[PVUHSWV^LYNYPK
;OLWYVISLTPZL_WLJ[LK[VJVU[PU\LPU[V ;VHKKYLZZP[^P[OH SVUN[LYTZ\Z[HPUHISLZVS\[PVU.VSKLU:[HY¶HSVUN^P[O5L^TVU[ Mining Corporation, Gold Fields Limited, and AngloGold Ashanti Peter Bradford 3PTP[LK¶OH]LJVTTP[[LK[VKL]LSVWPUNHUVTPUHSTLNH^H[[ 7YLZPKLU[HUK*,6 WV^LYZ[H[PVU0[PZL_WLJ[LK[VILVWLYH[PVUHSI`TPK H[H March 29, 2007 JVZ[ VM HWWYV_PTH[LS` TPSSPVU VM ^OPJO TPSSPVU PZ [V IL M\UKLKI`.VSKLU:[HY
5 2006 Annual Report Mineral Reserves & Mineral Resources
Mineral Reserves Proven and Probable Reserves at December 31, 2006
Proven Probable Total Gold Contained Gold Contained Gold Contained Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Property (millions) (g/t) (millions) (millions) (g/t) (millions) (millions) (g/t) (millions) Bogoso/Prestea 5VU9LMYHJ[VY` 0.9 2.30 0.07 6.9 2.59 0.57 7.8 2.56 0.64 9LMYHJ[VY` 14.5 2.95 1.38 19.3 2.65 1.64 33.8 2.78 3.02 Total 15.5 2.91 1.45 26.2 2.64 2.22 41.6 2.74 3.67 Wassa 5VU9LMYHJ[VY` 0.5 1.08 0.02 13.0 1.11 0.46 13.6 1.11 0.48 Total 0.5 1.08 0.02 13.0 1.11 0.46 13.6 1.11 0.48 Totals 5VU9LMYHJ[VY` 1.5 1.85 0.09 19.9 1.62 1.04 21.4 1.64 1.13 9LMYHJ[VY` 14.5 2.95 1.38 19.3 2.65 1.64 33.8 2.78 3.02 Total 2006 16.0 2.85 1.47 39.2 2.13 2.68 55.2 2.34 4.15 Total 2005 14.9 3.11 1.48 41.9 1.90 2.57 56.8 2.22 4.05
NOTES: 6\Y4PULYHS9LZLY]LZ^LYLKL[LYTPULK\ZPUNHNVSKWYPJLVM WLYV\UJLH[[OLLUKVM HUK WLYV\UJLH[[OLLUKVM ;OLWYPJLMVY PZHWWYV_PTH[LS`LX\HS[V[OL[OYLL`LHY H]LYHNLWYPJLVMNVSKHUKPZIHZLKVUHTPULWSHUKLYP]LKMYVTHUVW[PTPaLKWP[ZOLSS;OLZ[H[LK4PULYHS9LZLY]LZOH]LILLUWYLWHYLKPUHJJVYKHUJL^P[O*HUHKH»Z5H[PVUHS0UZ[Y\TLU[ :[HUKHYKZVM+PZJSVZ\YLMVY4PULYHS7YVQLJ[Z4PULYHS9LZLY]LZHYLLX\P]HSLU[[V7YV]LUHUK7YVIHISL9LZLY]LZHZKLÄULKI`[OL ;OL4PULYHS9LZLY]LZOH]LILLUWYLWHYLK\UKLY[OLZ\WLY]PZPVUVM4Y7L[LY)V\YRL7,UN=PJL7YLZPKLU[;LJOUPJHS:LY]PJLZMVY.VSKLU:[HY(KKP[PVUHSPUMVYTH[PVUVU[OLLZ[PTH[PVUVMV\Y 4PULYHS9LZLY]LZJHUILMV\UKPU[OL2YLWVY[ÄSLK^P[O^^^ZLKHYJVTHUK^^^ZLJNV] 4PULYHS9LZLY]LZHYLL_WYLZZLKVUH IHZPZ.VSKLU:[HY»ZZOHYLVM[OL4PULYHS9LZLY]LZPZZ\IQLJ[[V[OL.V]LYUTLU[VM.OHUH»Z JHYYPLKPU[LYLZ[^OPJOLU[P[SLZ[OLT[VH KP]PKLUK once our capital costs have been recovered. ;OL[LYTZ¸UVUYLMYHJ[VY`¹HUK¸YLMYHJ[VY`¹YLMLY[V[OLTL[HSS\YNPJHSJOHYHJ[LYPZ[PJZVM[OLVYL>LWSHU[VWYVJLZZ[OLYLMYHJ[VY`VYLPUV\Y)06?®IPVV_PKH[PVUWSHU[H[)VNVZVHUK[VWYVJLZZ[OL UVUYLMYHJ[VY`VYL\ZPUNV\YTVYL[YHKP[PVUHSNYH]P[`ÅV[H[PVUHUKVYJ`HUPKH[PVU[LJOUPX\LZ Mineral Resources Mineral Resources are in addition to the Mineral Reserves described above. Measured, Indicated and Inferred Mineral Resources at December 31, 2006 Measured Indicated Measured & Indicated Inferred Tonnes Gold Grade Tonnes Gold Grade Tonnes Gold Grade Tonnes Gold Grade Property (millions) (g/t) (millions) (g/t) (millions) (g/t) (millions) (g/t) Bogoso/Prestea 6.1 2.05 14.0 2.32 20.2 2.23 4.2 2.70 Prestea Underground ¶¶1.1 16.30 1.1 16.30 5.0 8.68 >HZZH 0.2 1.05 11.7 0.75 11.9 0.76 7.2 1.18 /^PUP)\[YL )LUZV ¶ ¶ 5.2 4.30 5.2 4.30 1.6 4.02 Goulagou ¶¶2.7 1.75 2.7 1.75 0.5 1.02 Paul Isnard ¶¶¶¶¶¶10.2 1.70 Total 2006 6.4 2.02 34.7 2.48 41.0 2.40 28.7 3.05 Total 2005 3.5 2.20 33.9 2.09 37.4 2.10 34.0 2.86 NOTES: 6\Y4PULYHS9LZV\YJLZV[OLY[OHUMVY[OL7YLZ[LH Golden Star 6 Commissioning of the crushing, grinding, and CIL circuits for the new BIOX® project were com- pleted in 2006. In early 2007 we are commissioning the BIOX® tanks shown in the foreground. ;OLÄYZ[TVK\SLVMZL]LU[HURZ was operational by the end of February 2007 and the second module of seven tanks is expected to be operational by the end of March 2007. Operations: Bogoso/Prestea Bogoso/Prestea is located some 300 kilometers from the capital of Accra. The Bogoso/Prestea property is comprised of several mining and exploration concessions that cover a strike length of approximately 85 kilometers along the celebrated Ashanti Gold Trend and approximately 20 kilometers along the parallel Akropong trend to the west. Bogoso/Prestea Property N GHANA Our Bogoso/Prestea property extends over approximately 85 kilometers of the Ashanti trend. Near-surface oxide Bogoso/ Prestea Mampon mining has been carried out over a strike length of about 30 Ashanti Trend 93.5 KM Pampe kilometers. Deeper mining and exploration has only Bogoso North been carried out over less than 10 kilometers. In 2007 we Chujah-Dumasi Bogoso Mill plan deep-penetrating geophysical testing to a depth of Buesichem about 600 meters along this trend to identify potential deep Plant North Bogoso drilling targets. Prestea Prestea South Active Pits Bogoso Properties Prestea Properties ,_WSVYH[PVU7YVWLY[PLZ ©2007 Google™ )VNVZV7YLZ[LH PZ V^ULK I` .VSKLU :[HY HUK I` [OL 7SHU[5VY[OWP[;OPZ^HZVMMZL[I`SV^LYJHZOVWLYH[PUNJVZ[Z .V]LYUTLU[VM.OHUH/V^L]LY\U[PSJHWP[HSJVZ[ZHYLYLJV]LYLK ^OPJOPUJYLHZLK[V WLYV\UJLVMNVSKPU JVTWHYLK[V by Golden Star, no dividends are payable. WLYV\UJLVMNVSKPU Project Strategy Illegal Mining ([)VNVZV7YLZ[LHV\YZ[YH[LN`V]LY[OLSHZ[ML^`LHYZOHZILLU[V! Illegal mining at Bogoso/Prestea has been an increasing problem V]LY[OLSHZ[ML^`LHYZJH\ZPUNHSVZZVMNVSKHZ^LSSHZ\UJOLJRLK • Build a district-scale land position; HUKKPMÄJ\S[[VYLN\SH[LPTWHJ[ZVU[OLLU]PYVUTLU[HUKJVTT\UP[` • *HYY`V\[Z\MÄJPLU[L_WSVYH[PVU[VHZZLZZ[OLSVUN[LYTWV[LU[PHS" In 2006 illegal mining encroached closer to our operating and • 7\[PUWSHJLTPUPUNHUKWYVJLZZPUNLX\PWTLU[MVY[OLLMÄJPLU[ L_WSVYH[PVUHJ[P]P[PLZ;OPZSLHK[VHUPUJPKLU[^OLYL[OL)VUKH`L development of the property; and 4HPU :OHM[ ^OPJO ^L \ZL HZ H ZLJVUK TLHUZ VM HJJLZZ [V [OL • Assess the opportunity for underground mining. 7YLZ[LH\UKLYNYV\UK^HZKHTHNLKI`ISHZ[PUNJVUK\J[LKI` illegal miners. ;OLJVTWSL[PVUVMV\Y)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[KPZJ\ZZLK VU WHNL THYRZ [OL Z\JJLZZM\S JVTWSL[PVU VM [OL ÄYZ[ [OYLL ;OLPUJPKLU[HJ[LKHZHJH[HS`Z[MVY[OL.OHUH.V]LYUTLU[[V VIQLJ[P]LZ0U ^LL_WLJ[[VJVTWSL[LHWYLSPTPUHY`KL]LSVWTLU[ intervene. It put a stop to the illegal mining by removing an estimated WSHUMVY7YLZ[LH .VSK ZHSLZ VM V\UJLZ MYVT )VNVZV7YLZ[LH ^LYL SV^LY [OHU HZHYLZ\S[VMPUJYLHZPUNOHYKULZZHUK[OLYLMYHJ[VY` UH[\YLVM[OLKLLWLYTH[LYPHSILPUNTPULKHUKWYVJLZZLKMYVTV\Y 9 2006 Annual Report Concentrate Nutrients Limestone 4 1 Residual Deposit Stock Tank Neutralisation 3 ® BIOX Wash Water Reactors CCD Wash Air Thickeners and Cooling 2 5 To CIL and Gold recovery Bio-Oxidation: A Simple Process >P[OV\YYLMYHJ[VY`VYLNVSKPZLUJHWZ\SH[LKPUHZ\SÄKLTH[YP_HUKHKKP[PVUHSWYVJLZZPUNPZYLX\PYLK[V\USVJR[OLNVSK[VHSSV^P[ZYLJV]LY` ;OLWYVJLZZ^LOH]LZLSLJ[LKHZILPUN[OLTVZ[LJVUVTPJLU]PYVUTLU[HSS`MYPLUKS`HUKZPTWSL[VVWLYH[LPZ[OL)06?® bio-oxidation process. 1 .VSKJVUJLU[YH[LMYVT[OLZ[HUKHYKÅV[H[PVUJPYJ\P[PZTP_LK^P[OU\[YPLU[Z 2 ;OLTP_PZ[YHUZMLYYLK[V[OL)06?®YLHJ[VY[HURZ^OLYL[OLIHJ[LYPH^P[O[OLOLSWVMV_`NLULH[[OLZ\SÄKLTPULYHSZJVU]LY[PUN[OLT[V V_PKL(JPKHUKOLH[HYLWYVK\JLKI`[OLWYVJLZZHUK[OL[HURZHYLJVVSLK[VTHPU[HPU[OLVW[PT\T[LTWLYH[\YLYHUNL 3 ;OLV_PKPaLKTPULYHSZHUK[OLHJPKPJIHJ[LYPHSZVS\[PVUHYLZLWHYH[LKI`KLJHU[H[PVU"[OLTPULYHSZHYL^HZOLKHUK[OPJRLULK[VYLTV]L the acid solution from the gold-bearing material. 4 ;OL^HZ[LHJPKPZUL\[YHSPaLKI`HKKPUNSPTLZ[VUL[OLU[OLIHJ[LYPHSZVS\[PVUPZYL[\YULK[V[OLÄYZ[YLHJ[VY[HURZ 5 ;OL^HZOLKTH[LYPHSPZ[YHUZMLYYLK[V[OLJHYIVUPUSLHJO*03JPYJ\P[;OLJ`HUPKHJPV\ZZVS\[PVUKPZZVS]LK[OLNVSK^OPJOPZ Z\IZLX\LU[S`WYLJPWP[H[LKVU[V[OLJHYIVU»ZZ\YMHJLHUKSH[LYYLJV]LYLKMYVT[OLJHYIVU ;OLNVSKYLJV]LY`YH[LPZL_WLJ[LK[VH]LYHNLHIV\[ V]LY[OLSPMLVM[OLTPULI\[[V]HY`MYVT MVY[OLULHYZ\YMHJLZ\SÄKLZ[V MVYZ\SÄKLZLUJV\U[LYLKH[KLW[O Bogoso Sulfide Expansion Project ;OLYLMYHJ[VY`UH[\YLVM[OLTHQVYP[`VM[OLVYLH[)VNVZV7YLZ[LH 0U [OLTHQVYMVJ\ZMVY)VNVZV7YLZ[LHHUK.VSKLU:[HY^HZ required us to use an intermediate oxidizing stage in addition to the [OL)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[;OPZ^HZHTHQVY\UKLY[HRPUN JVU]LU[PVUHS*03WSHU[\ZLKH[)VNVZVHUK>HZZH)PVV_PKH[PVU HUKPZL_WLJ[LK[VLZ[HISPZO)VNVZVHZHZPNUPÄJHU[SVUNSP]LK ^HZZLSLJ[LKMVYHU\TILYVMMHJ[VYZPUJS\KPUNP[ZZ\P[HIPSP[`MVY gold producer. [OL)VNVZV7YLZ[LHTH[LYPHSSV^LYJVZ[Z[Y\J[\YLZHUKSV^LY LU]PYVUTLU[HSLMMLJ[Z^OLUJVTWHYLK[VV[OLYH]HPSHISLHS[LYUH[P]LZ *VUZ[Y\J[PVU HJ[P]P[PLZ ^LYL Z\IZ[HU[PHSS` JVTWSL[LK I` `LHYLUK HUKJVTTPZZPVUPUNVM[OLMYVU[LUKVM[OLUL^WYVJLZZPUNWSHU[ >VYSK^PKL[OLYLHYLLSL]LU)06?® plants in construction or operation JY\ZOLYHUKNYPUKPUNTPSSZILNHU0UHKKP[PVU[OLPUVJ\SH[PVUVM[OL \ZPUN[OLZHTL[LJOUVSVN`(UNSV.VSK(ZOHU[P»Z6I\HZP4PULPZ )06?®[HURZ^HZPUP[PH[LK0U-LIY\HY` [OLÄYZ[)06?® module [OLILZ[L_HTWSLVMHZ\JJLZZM\S)06?® plant in operation. Obuasi JVTWYPZPUNZL]LU)06?®YLHJ[VY[HURZHUK[OLUL^ÅV[H[PVUJPYJ\P[ PZSVJH[LKUVY[OVM)VNVZV7YLZ[LHHSVUN[OL(ZOHU[P;YLUKHUK ^HZM\SS`JVTTPZZPVULK0U4HYJO [OLZLJVUK)06?® module OHZILLUZ\JJLZZM\SS`\ZPUN[OPZ[LJOUVSVN`MVYTVYL[OHUHKLJHKL HUK[OLUL^LS\[PVUJPYJ\P[PZL_WLJ[LK[VILM\SS`JVTTPZZPVULK on ore that is mineralogically similar to ours. Commercial production is anticipated to begin in the second ;OLJVTTPZZPVUPUNWYVJLZZZ[HY[LKPU[OLMV\Y[OX\HY[LYVM X\HY[LYVM and commercial production is expected to begin in the second X\HY[LYVM Golden Star 10 The BIOX® tanks are made of stainless steel to protect them from sulfuric acid, The crushing and grinding circuits for the new BIOX® plant were ^OPJOPZNLULYH[LK^OLUIHJ[LYPHLH[[OLZ\SÄKLPU[OLJVUJLU[YH[LKVYL commissioned in 2006 and are now well tested. 0UWYLWHYH[PVUMVY[OLJVTTPZZPVUPUNVM[OL)06?® plant, our mining ;OL \UKLYNYV\UK KPHTVUK KYPSSPUN VU [OL >LZ[ 9LLM PKLU[PÄLK H JHWHIPSP[`^HZWYVNYLZZP]LS`PUJYLHZLKK\YPUN HUKWYLZ[YPWWPUN Z\IZ[HU[PHSOPNONYHKLTPULYHSYLZV\YJLIL[^LLU[OL HUK VM[OLÄYZ[[^VZ\SÄKLWP[Z^HZJVTTLUJLK)``LHYLUKHZ\IZ[HU[PHS 3L]LSZ0U ^LL_WLJ[[VJVTWSL[LHWYLSPTPUHY`KL]LSVWTLU[ Z[VJRWPSLVMYLMYHJ[VY`VYLOHKILLULZ[HISPZOLK0UHKKP[PVU[OL WSHUMVY7YLZ[LH 11 2006 Annual Report At both Wassa and Bogoso/Prestea ^LVWLYH[LV\YV^UÅLL[VMTPUPUN equipment – contributing to lower overall mining costs per tonne. Underground drilling in 2006 has increased the size, grade and JVUÄKLUJLPU[OL>LZ[9LLMKLWVZP[ We now have 0.86 million tonnes VM0UKPJH[LK4PULYHS9LZV\YJL grading 18.3 g/t and 0.51 million [VUULZVM0UMLYYLK4PULYHS9LZV\YJL grading 11.6 g/t gold. Exploration In 2006 our exploration expenditures were $15.3 million with the majority of these funds spent on areas close to our producing properties in Ghana, primarily on the Prestea Underground and the Hwini-Butre and Benso properties, located south of Wassa, acquired in late 2005. EXPLORATION DRILLING 0 to 1g/t Resource West Reef Stopes Prestea Underground 1 to 5g/t Boundary 4600 Z 5 to 10g/t West Reef 10 to 30g/t 30+ g/t Most of the historical exploration was targeted at near-surface 17 LEVEL 4400 Z oxide mineralization, ignoring the KLLWLYHUKTVYLKPMÄJ\S[[VWYVJLZZ Z\SÄKLZ>OLUV\YZ\SÄKLL_WHUZPVU is completed we will have the 4200 Z capacity to process that material. 24 LEVEL 4000 Z 8400 N 8200 N 8000 N 7800 N ;OLYLTHPUKLYVMV\YL_WSVYH[PVUI\KNL[^HZZWLU[VULHYS`Z[HNL ([V\Y4HTWVUHUK7HTWLWYVQLJ[Z[OLMVJ\ZK\YPUN ^HZVU L_WSVYH[PVUHUKWYVQLJ[NLULYH[PVU^VYRLSZL^OLYLPU>LZ[(MYPJH MLHZPIPSP[`Z[\KPLZHUKWLYTP[[PUNHJ[P]P[PLZ/LUJLSP[[SLL_WSVYH[PVU and South America. ^VYR^HZ\UKLY[HRLUV[OLY[OHUSPTP[LKKYPSSPUNH[[OL6WVUWYVZWLJ[ in an attempt to expand the resource at this location. Hwini-Butre and Benso +YPSSPUNH[/^PUP)\[YLHUK)LUZVPUJYLHZLKV\YJVUÄKLUJLPU[OL Greenfields Exploration mineral resources and provided geotechnical data and metallurgical ,_WSVYH[PVUJVU[PU\LKVUV\Y4HUV9P]LY9LZV\YJLZ0UJQVPU[]LU[\YL ZHTWSLZMVYZ[\KPLZPU[V[OLTPUPUNHUKWYVJLZZPUNVM[OLZLKLWVZP[Z PU:PLYYH3LVUL^P[OPUÄSSZVPSZHTWSPUNWYVNYHTZJVTWSL[LKVUTHQVY MVY[YHUZWVY[[VHUKWYVJLZZPUNH[>HZZH NVSK HUVTHSPLZ [OH[ ^LYL KLÄULK VU [OL 7HTWHUH HUK :VUMVU properties in 2005. Diamond drilling recommenced on the Yirisen Prestea Underground aVULPUSH[L ^OLYLWHZ[^VYRYL]LHSLKLUJV\YHNPUNYLZ\S[ZV]LY +YPSSPUNVM\UKLYNYV\UK[HYNL[ZH[7YLZ[LHMVJ\ZLKVU[OL>LZ[9LLM HZOVY[Z[YPRLSLUN[O;OLUL^KYPSSPUNPZPU[LUKLK[VJVUÄYTKV^U TPULYHSPaH[PVU ^OLYL ^L KLÄULK HU 0UKPJH[LK 4PULYHS 9LZV\YJL VM WS\UNLJVU[PU\P[`HUK[LZ[MVYV[OLYZPTPSHYWVKZHSVUNZ[YPRL0ULHYS` [VUULZ NYHKPUN NYHTZ VM NVSK WLY [VUUL MVY HZLJVUKKYPSSYPN^HZKPZWH[JOLK[V:PLYYH3LVUL[V[LZ[ V\UJLZ VM JVU[HPULK NVSK 0U HKKP[PVU H M\Y[OLY 0UMLYYLK 4PULYHS geochemical anomalies on these properties. 9LZV\YJLVM [VUULZNYHKPUN NYHTZWLY[VUULVM 0UP[PHSL_WSVYH[PVUVM[OLZX\HYLRPSVTL[LY(MLTHWYVWLY[`PU NVSK^HZKLSPULH[LK *[LK»0]VPYLYL]LHSLKL_[LUZP]LNVSKPUZVPSHUVTHSPLZ[OH[^LYL (JJLZZ[V[OL3L]LSH[7YLZ[LH[OLKLLWLZ[THQVYKL]LSVWTLU[ PU]LZ[PNH[LKI`[YLUJOPUNPULHYS` >LHYLJ\YYLU[S`YL]PL^PUN SL]LSVU[OLTPUL^HZHSZVYLLZ[HISPZOLKHUKKYPSSPUNJVTTLUJLK WSHUZMVY[OPZWYVWLY[`,SZL^OLYLPU*[LK»0]VPYL^LOH]LZLJ\YLK ILULH[O [OL KV^UWS\UNL L_[LUZPVUZ VM [OL THPU TPULYHSPaLK ZL]LYHSWYVWLY[PLZVU[OLL_[LUZPVUZVM[OL@HTMV¶:LM^PNVSKILS[ ZOVV[Z0UP[PHSYLZ\S[ZPUKPJH[LKZ[YVUNYLLMKL]LSVWTLU[^P[O ^OLYL^LHYLJHYY`PUNV\[YLNPVUHSNVSKPUZVPSWYVNYHTZ LUJV\YHNPUN^PK[OZHUKNYHKLZ/V^L]LY^VYR^HZKPZJVU[PU\LK 0U)\YRPUH-HZV^LJVTWSL[LK^VYR[VKLSPULH[LHU0UKPJH[LK9LZV\YJL K\L[VWV^LYZOVY[HNLZPU.OHUHHUK[OLULLK[VJVTWSL[LZOHM[ VM TPSSPVU [VUULZ NYHKPUN NYHTZ WLY [VUUL MVY H JVU[HPULK YLM\YIPZOTLU[^VYR[VLUZ\YL[OLZHML[`VMV\YLTWSV`LLZ V\UJLZVMNVSK>LHSZVJVTWPSLKHSSOPZ[VYPJHSPUMVYTH[PVUVU [OL WYVWLY[` HZ H IHZPZ MVY M\[\YL ^VYR HUK KLJPZPVU THRPUN :PTPSHY Other Brownfields Work ^VYR^HZJHYYPLKV\[VUV\YV[OLYWYVWLY[PLZPU)\YRPUH-HZVHUK5PNLY ,_WSVYH[PVU HYV\UK V\Y >HZZH KLWVZP[ MVJ\ZLK VU PU]LZ[PNH[PUN UL^aVULZVMTPULYHSPaH[PVUHSVUN[OL;HYR^HPHU)PYPTPHUIV\UKHY` 0U:\YPUHTL^LLU[LYLKPU[VHQVPU[]LU[\YL^P[O5L^TVU[4PUPUN 7YLSPTPUHY`NVSKPUZVPSZHTWSPUNPKLU[PÄLKZ[YVUNNVSKHUVTHSPLZ *VYWVYH[PVUVU[OL:HYHTHJJHWYVWLY[`^OLYLHSPTP[LKKPHTVUK HSVUN[OPZYLNPVUHSS`PTWVY[HU[JVU[HJ[aVUL^OPJO^PSSILKYPSSLK KYPSSPUN WYVNYHT PU YL[\YULK LUJV\YHNPUN YLZ\S[Z 1VPU[ in 2007. ]LU[\YL^VYRPU PU]VS]LKKL[HPSLKNLVJOLTPZ[Y`HUKNYV\UK NLVWO`ZPJHSZ\Y]L`ZV]LY(UVTHS`4[VWYV]PKL[HYNL[ZMVY drilling in 2007. 15 2006 Annual Report In addition to routine water sampling, we carry out routine Our oil palm project has been well received and supported by dust, noise and blast vibration monitoring to ensure that Z[HRLOVSKLYZHUKOHZ[OLWV[LU[PHS[VZPNUPÄJHU[S`YLK\JL\ULTWSV`TLU[ our operations are within accepted and approved limits. in the catchment area around our mines. Sustainability Golden Star Resources is firmly committed to implementing sustainability practices that create value for our shareholders and long-term economic benefits for our local stakeholders. We are pleased to be one of the signatories to the United Nations Global Compact. To this end, we carry out our activities according to sound principles governing business conduct, health and safety, environmental management, human rights, and community development and consultation. 6\YWYPUJPWSLJVTT\UP[`TPSLZ[VULZMVY[OL`LHYPUJS\KLKJYLH[PUN TVZ[PTWYV]LKTPULPU.OHUH>LMLLS[OH[[OPZH^HYKPZH[LZ[HTLU[ [OL.VSKLU:[HY+L]LSVWTLU[-V\UKH[PVUHUK[OLLZ[HISPZOTLU[VM [V[OLJVTTP[TLU[^LWSHJLVULU]PYVUTLU[HSTHUHNLTLU[HUK .VSKLU:[HY6PS7HST7SHU[H[PVUZ3PTP[LK>LMVYTLK[OL-V\UKH[PVU [OLK\LKPSPNLUJLVMV\Y^VYRMVYJL [VM\UKJVTT\UP[`IHZLKWYVQLJ[Z;OLSVJHSJVTT\UP[PLZPUV\Y >LZ\WWVY[HU\TILYVMWYVNYHTZKLKPJH[LK[VZ\Z[HPUHIPSP[`WYHJ[PJLZ JH[JOTLU[HYLHZHYLLUJV\YHNLK[V^VYRPUJVVWLYH[PVU^P[OV\Y 6ULZ\JOWYVNYHT^OPJOJVUJS\KLKLHYS`PU ^HZ[OLZOPWTLU[ representatives to develop proposals. Those proposals that are VM IVVRZ[OH[Z\YWHZZLKV\YNVHSVM IVVRZMYVTV\Y KLLTLK[VOH]LTLYP[MVSSV^PUNHYL]PL^I`[OL)VHYKVM;Y\Z[LLZ +LU]LYOLHKX\HY[LYZVMÄJLZ;OPZWYVQLJ[[VVRTVU[OZHUK\ZLK ^PSSILM\UKLKI`[OL-V\UKH[PVU(ZMVY[OL6PS7HST7SHU[H[PVU^L THUOV\YZ[VJVTWSL[L;OLZLIVVRZ^PSSIL\ZLK[VPUH\N\YH[L OH]LHSYLHK`M\UKLKWSHU[PUNVMV]LYZLLKSPUNZHUK[OL three libraries in our catchment basin communities. local Traditional Leaders have committed more than 18,000 hectares to the endeavor. In summary, based on the UN Global Compact principles, Golden :[HY»Z JVTTP[TLU[ [V Z\Z[HPUHIPSP[` MHSSZ PU[V H U\TILY VM IYVHK 0UHKKP[PVU[VV\Y-V\UKH[PVUHUK6PS7HST7SHU[H[PVU^LHYLHSZV JH[LNVYPLZ^OPJOPUJS\KLI\[HYLUV[SPTP[LK[VOLHS[OHUKZHML[` committed to training and education. Our Ghanaian employees JVTT\UP[` LUNHNLTLU[ ZHML LU]PYVUTLU[HS WYHJ[PJLZ O\THU HYL[OLIHZPZVMV\YZ\JJLZZ(ZZ\JO^LILSPL]LPUWYV]PKPUNV\Y YPNO[Z HUK ZHML SHIVY Z[HUKHYKZ 6\Y M\SS Z\P[L VM HJ[P]P[PLZ LTWSV`LLZ^P[OIV[OPUOV\ZLHUKL_[LYUHS[YHPUPUNHZULLKLK(Z LUJVTWHZZLZ[OLZLTHPUJH[LNVYPLZ[OH[^LILSPL]L^PSSWYVK\JL HUL_HTWSLVMV\YJVTTP[TLU[[V[YHPUPUNHUKLX\HSVWWVY[\UP[PLZ IL[[LY SP]PUN HUK ^VYRPUN LU]PYVUTLU[Z MVY HSS V\Y LTWSV`LLZ PU .VSKLU :[HY UV^ OHZ ZP_ ^VTHU KYP]LYZ MVY [OL [VUUL OH\S Ghana and beyond. [Y\JRZH[)VNVZV7YLZ[LHHUK>HZZH -VYTVYLPUMVYTH[PVUYLNHYKPUN.VSKLU:[HY»ZZ\Z[HPUHIPSP[`WYHJ[PJLZ 6\Y Z\WWVY[ VM LU]PYVUTLU[HS Z[L^HYKZOPW PU V\Y VWLYH[PVUZ WSLHZLYLMLY[VV\Y (UU\HS:\Z[HPUHIPSP[`9LWVY[ PZ L_LTWSPÄLKI`[OL>HZZH4PUL^OPJO^VU[OLLU]PYVUTLU[HS H^HYKMYVT[OL.OHUH,U]PYVUTLU[HS7YV[LJ[PVU(NLUJ`MVY[OL Golden Star 16 GOLDEN STAR RESOURCES LTD. SELECTED FINANCIAL DATA ;OLZLSLJ[LKÄUHUJPHSKH[HZL[MVY[OILSV^HYLKLYP]LKMYVTV\YH\KP[LKJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZMVY[OL`LHYZLUKLK+LJLTILY HUKHUKZOV\SKILYLHKPUJVUQ\UJ[PVU^P[O[OVZLÄUHUJPHSZ[H[LTLU[ZHUK[OLUV[LZ[OLYL[V;OL JVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZOH]LILLUWYLWHYLKPUHJJVYKHUJL^P[O*HUHKPHU.((7:LSLJ[LKÄUHUJPHSKH[HKLYP]LKPUHJJVYKHUJL ^P[O<:.((7OHZHSZVILLUWYV]PKLKHUKZOV\SKILYLHKPUJVUQ\UJ[PVU^P[O5V[L[V[OLÄUHUJPHSZ[H[LTLU[Z9LMLYLUJLZOV\SKHSZV ILTHKL[V¸0[LT 4HUHNLTLU[»Z+PZJ\ZZPVUHUK(UHS`ZPZVM-PUHUJPHS*VUKP[PVUHUK9LZ\S[ZVM6WLYH[PVUZ¹ SUMMARY OF FINANCIAL CONDITION (TV\U[ZPU[OV\ZHUKZL_JLW[WLYZOHYLKH[H As of As of As of As of As of Canadian GAAP Dec. 31, 2006 Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2002 >VYRPUNJHWP[HS $ 21,383 $ 61,366 $ 21,963 *\YYLU[HZZL[Z 90,534 104,935 32,843 ;V[HSHZZL[Z 564,603 252,160 222,391 *\YYLU[SPHIPSP[PLZ 69,151 40,815 8,151 10,880 3VUN[LYTSPHIPSP[PLZ 125,099 124,919 8,402 :OHYLOVSKLY»ZLX\P[` 462,100 392,240 198,362 49,384 For the Year For the Year For the Year For the Year For the Year Ended Ended Ended Ended Ended Canadian GAAP Dec. 31, 2006 Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2002 9L]LU\LZ $ 128,690 $ 95,465 $ 65,029 $ 38,802 5L[PUJVTLSVZZ 64,689 2,642 21,956 4,856 5L[PUJVTLSVZZWLYZOHYLIHZPJ As of As of As of As of As of US GAAP(1) Dec. 31, 2006 Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2002 >VYRPUNJHWP[HS $ 21,383 $ 61,366 $ 22,262 *\YYLU[HZZL[Z 90,534 104,935 33,391 ;V[HSHZZL[Z 606,095 522,443 62,644 *\YYLU[SPHIPSP[PLZ 69,151 40,815 8,151 10,880 3VUN[LYTSPHIPSP[PLZ 129,624 135,832 22,432 14,445 :OHYLOVSKLY»ZLX\P[` 404,418 343,832 98,698 For the Year For the Year For the Year For the Year For the Year Ended Ended Ended Ended Ended US GAAP(1) Dec. 31, 2006 Dec. 31, 2005 Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2002 9L]LU\LZ $ 128,690 $ 65,029 $ 38,802 5L[PUJVTLSVZZ 5L[PUJVTLSVZZWLYZOHYLIHZPJ 9LZ[H[LK[VYLÅLJ[[OLJVYYLJ[PVUVM[OLHJJV\U[PUN[YLH[TLU[VM^HYYHU[ZPZZ\LKPUJ\YYLUJPLZV[OLY[OHU<: 17 Selected Financial Data GOLDEN STAR RESOURCES LTD. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ;OLMVSSV^PUNKPZJ\ZZPVUHUKHUHS`ZPZZOV\SKILYLHKPUJVUQ\UJ[PVU ;OYV\NO H V^ULK *HUHKPHU Z\IZPKPHY` ^L V^U [OL /)) ^P[O[OLHJJVTWHU`PUN\UH\KP[LKJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[Z 7YVWLY[PLZPUZV\[O^LZ[.OHUH;OL/))7YVWLY[PLZJVUZPZ[VM[OL HUK YLSH[LK UV[LZ ;OL ÄUHUJPHS Z[H[LTLU[Z OH]L ILLU WYLWHYLK /^PUP¶)\[YLHUK)LUZVWYVWLY[PLZ^OPJO[VNL[OLYJV]LYHUHYLHVM PU HJJVYKHUJL ^P[O HJJV\U[PUN WYPUJPWSLZ NLULYHSS` HJJLW[LK PU ZX\HYLRPSVTL[LYZ)V[OWYVWLY[PLZJVU[HPU\UKL]LSVWLKaVULZ *HUHKH¸*KU.((7¹-VYHYLJVUJPSPH[PVU[VHJJV\U[PUNWYPUJPWSLZ VMNVSKTPULYHSPaH[PVU;OL/^PUP)\[YLHUK)LUZVWYVWLY[PLZHYL NLULYHSS`HJJLW[LKPU[OL OUR BUSINESS >LOVSKPU[LYLZ[ZPUZL]LYHSNVSKL_WSVYH[PVUWYVQLJ[ZPU.OHUHHUK ;OYV\NO V\Y Z\IZPKPHYPLZ ^L V^U H JVU[YVSSPUN PU[LYLZ[ PU MV\Y LSZL^OLYL PU >LZ[ (MYPJH PUJS\KPUN :PLYYH 3LVUL )\YRPUH -HZV ZPNUPÄJHU[NVSKWYVWLY[PLZPUZV\[OLYU.OHUHPU>LZ[(MYPJH! 5PNLY HUK *V[L K»0]VPYL >L HSZV OVSK HUK THUHNL L_WSVYH[PVU 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;OLJHSJ\SH[PVUZVM[V[HSJHZOJVZ[WLYV\UJLHUKJHZOVWLYH[PUNJVZ[WLYV\UJLHYLPUJVTWSPHUJL^P[OHUPUK\Z[Y`Z[HUKHYKMVYZ\JO TLHZ\YLZLZ[HISPZOLKPU I`[OL.VSK0UZ[P[\[LHUVU¶WYVÄ[PUK\Z[Y`NYV\W ;OLMVSSV^PUN[HISLZOV^Z[OLKLYP]H[PVUVM[OLZLTLHZ\YLZHUKHYLJVUJPSPH[PVUVM¸[V[HSJHZOJVZ[WLYV\UJL¹HUK¸JHZOVWLYH[PUNJVZ[ WLYV\UJL¹ DERIVATION OF TOTAL MINE OPERATING COST 2006 Wassa Bogoso/Prestea Combined 4PUPUNVWLYH[PVUZ $ 48,080 $ 44,650 4PUPUNYLSH[LKKLWYLJPH[PVUHUKHTVY[PaH[PVU 21,460 (JJYL[PVUVMHZZL[YL[PYLTLU[VISPNH[PVUZ 221 614 835 Total mine operating costs $ 60,064 $ 54,961 $ 115,025 Ounces sold 97,614 103,792 201,406 Derivation of cost per ounce: ;V[HSTPULVWLYH[PUNJVZ[Z¶.((7 Va $ 615 $ 531 3LZZKLWYLJPH[PVUHUKHTVY[PaH[PVU Va 120 93 3LZZHJJYL[PVUVMHZZL[YL[PYLTLU[VISPNH[PVUZ Va 264 ;V[HSJHZOJVZ[ Va 493 430 460 3LZZYV`HS[PLZHUKWYVK\J[PVU[H_LZ Va 18 18 18 Cash operating cost per ounce ($/oz) 475 412 442 DERIVATION OF TOTAL MINE OPERATING COST 2005 Wassa Bogoso/Prestea Combined 4PUPUNVWLYH[PVUZ $ 46,322 4PUPUNYLSH[LKKLWYLJPH[PVUHUKHTVY[PaH[PVU 15,983 (JJYL[PVUVMHZZL[YL[PYLTLU[VISPNH[PVUZ 190 562 Total mine operating costs $ 40,572 $ 55,762 $ 96,334 Ounces sold 69,070 131,898 200,968 Derivation of cost per ounce: ;V[HSVWLYH[PUNJVZ[Z¶.((7 Va $ 423 3LZZKLWYLJPH[PVUHUKHTVY[PaH[PVU Va 103 80 3LZZHJJYL[PVUVMHZZL[YL[PYLTLU[VISPNH[PVUZ Va 344 ;V[HSJHZOJVZ[ Va 482 351 396 3LZZYV`HS[PLZHUKWYVK\J[PVU[H_LZ Va 14 13 13 Cash operating cost per ounce ($/oz) 468 338 383 19 Management’s Discussion and Analysis ;V[HS JHZO JVZ[ WLY V\UJL HUK JHZO VWLYH[PUN JVZ[ WLY V\UJL 0USH[L ^LHJX\PYLK[OL/))7YVWLY[PLZ+\YPUN ^L ZOV\SKILJVUZPKLYLKHZUVU¶.((7ÄUHUJPHSTLHZ\YLZHZKLÄULK JHYYPLK V\[ NLVSVNPJHS LU]PYVUTLU[HS HUK LUNPULLYPUN Z[\KPLZ [V PU:,*9LN\SH[PVU:¶20[LTHUKZOV\SKUV[ILJVUZPKLYLKPU KL[LYTPUL [OL LJVUVTPJ MLHZPIPSP[` VM [OLZL \UKL]LSVWLK NVSK PZVSH[PVUVYHZHZ\IZ[P[\[LMVYTLHZ\YLZVMWLYMVYTHUJLWYLWHYLK WYVWLY[PLZ;OLZLZ[\KPLZHYLJVU[PU\PUNPU[V PUHJJVYKHUJL^P[O.((7;OLYLHYLTH[LYPHSSPTP[H[PVUZHZZVJPH[LK 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(\KP[VYZ»9LWVY[ 34 *VUZVSPKH[LK)HSHUJL:OLL[ZHZVM+LJLTILY HUK 36 *VUZVSPKH[LK:[H[LTLU[ZVM6WLYH[PVUZMVY[OL`LHYZLUKLK +LJLTILY HUK *VUZVSPKH[LK:[H[LTLU[VM*OHUNLZPU:OHYLOVSKLYZ»,X\P[`MVY[OL`LHYZLUKLK +LJLTILY HUK 38 *VUZVSPKH[LK:[H[LTLU[ZVM*HZO-SV^ZMVY[OL`LHYZLUKLK +LJLTILY HUK 39 5V[LZ[V[OL*VUZVSPKH[LK-PUHUJPHS:[H[LTLU[Z 33 Financial Statements and Supplementary Data GOLDEN STAR RESOURCES LTD. INDEPENDENT AUDITORS’ REPORT ;V[OL:OHYLOVSKLYZVM.VSKLU:[HY9LZV\YJLZ3[K >LOH]LJVTWSL[LKPU[LNYH[LKH\KP[ZVM.VSKLU:[HY9LZV\YJLZ3[K»ZJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZMVY[OL`LHYZLUKLK+LJLTILY +LJLTILY HUK+LJLTILYHUKVMP[ZPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNHZVM+LJLTILY 6\Y VWPUPVUZIHZLKVUV\YH\KP[ZHYLWYLZLU[LKILSV^ CONSOLIDATED FINANCIAL STATEMENTS >LOH]LH\KP[LK[OLHJJVTWHU`PUNJVUZVSPKH[LKIHSHUJLZOLL[ZVM.VSKLU:[HY9LZV\YJLZ3[K[OL¸*VTWHU`¹HZH[+LJLTILY HUK+LJLTILY HUK[OLYLSH[LKJVUZVSPKH[LKZ[H[LTLU[ZVMVWLYH[PVUZJVUZVSPKH[LKZ[H[LTLU[ZVMJOHUNLZPUZOHYLOVSKLYZ» LX\P[`HUKJVUZVSPKH[LKZ[H[LTLU[ZVMJHZOÅV^ZMVYLHJOVM[OL[OYLL`LHYZPU[OLWLYPVKLUKLK+LJLTILY ;OLZLÄUHUJPHS Z[H[LTLU[ZHYL[OLYLZWVUZPIPSP[`VM[OL*VTWHU`»ZTHUHNLTLU[6\YYLZWVUZPIPSP[`PZ[VL_WYLZZHUVWPUPVUVU[OLZLÄUHUJPHSZ[H[LTLU[Z IHZLKVUV\YH\KP[Z >LJVUK\J[LKV\YH\KP[ZVM[OL*VTWHU`»ZÄUHUJPHSZ[H[LTLU[ZHZH[+LJLTILY HUKMVYLHJOVM[OL[OYLL`LHYZPU[OLWLYPVK LUKLK+LJLTILY PUHJJVYKHUJL^P[O*HUHKPHUNLULYHSS`HJJLW[LKH\KP[PUNZ[HUKHYKZHUK[OLZ[HUKHYKZVM[OL7\ISPJ*VTWHU` (JJV\U[PUN6]LYZPNO[)VHYK 0UV\YVWPUPVU[OLJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZYLMLYYLK[VHIV]LWYLZLU[MHPYS`PUHSSTH[LYPHSYLZWLJ[Z[OLÄUHUJPHSWVZP[PVUVM[OL *VTWHU`HZH[+LJLTILY HUK+LJLTILY HUK[OLYLZ\S[ZVMP[ZVWLYH[PVUZHUKP[ZJHZOÅV^ZMVYLHJOVM[OL[OYLL `LHYZPU[OLWLYPVKLUKLK+LJLTILY PUHJJVYKHUJL^P[O*HUHKPHUNLULYHSS`HJJLW[LKHJJV\U[PUNWYPUJPWSLZ INTERNAL CONTROL OVER FINANCIAL REPORTING >LOH]LHSZVH\KP[LKTHUHNLTLU[»ZHZZLZZTLU[PUJS\KLKPU4HUHNLTLU[»Z9LWVY[VU0U[LYUHS*VU[YVS6]LY-PUHUJPHS9LWVY[PUN[OH[ [OL*VTWHU`KPKUV[THPU[HPULMMLJ[P]LPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNHZVM+LJLTILY ILJH\ZLVM[OLLMMLJ[VM[OL TH[LYPHS^LHRULZZLZPKLU[PÄLKPUTHUHNLTLU[»ZHZZLZZTLU[[OH[THUHNLTLU[KPKUV[THPU[HPULMMLJ[P]LJVU[YVSZV]LY[OLHJJV\U[PUN MVY^HYYHU[ZKLUVTPUH[LKPU*HUHKPHUKVSSHYZ\ZPUNHJJV\U[PUNWYPUJPWSLZNLULYHSS`HJJLW[LKPU[OL >LJVUK\J[LKV\YH\KP[VMPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNPUHJJVYKHUJL^P[O[OLZ[HUKHYKZVM[OL7\ISPJ*VTWHU`(JJV\U[PUN 6]LYZPNO[)VHYK (JVTWHU`»ZPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNPZHWYVJLZZKLZPNULK[VWYV]PKLYLHZVUHISLHZZ\YHUJLYLNHYKPUN[OLYLSPHIPSP[`VM ÄUHUJPHSYLWVY[PUNHUK[OLWYLWHYH[PVUVMÄUHUJPHSZ[H[LTLU[ZMVYL_[LYUHSW\YWVZLZPUHJJVYKHUJL^P[ONLULYHSS`HJJLW[LKHJJV\U[PUN WYPUJPWSLZ(JVTWHU`»ZPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNPUJS\KLZ[OVZLWVSPJPLZHUKWYVJLK\YLZ[OH[PWLY[HPU[V[OLTHPU[LUHUJL VMYLJVYKZ[OH[PUYLHZVUHISLKL[HPSHJJ\YH[LS`HUKMHPYS`YLÅLJ[[OL[YHUZHJ[PVUZHUKKPZWVZP[PVUZVM[OLHZZL[ZVM[OLJVTWHU`"PP WYV]PKLYLHZVUHISLHZZ\YHUJL[OH[[YHUZHJ[PVUZHYLYLJVYKLKHZULJLZZHY`[VWLYTP[WYLWHYH[PVUVMÄUHUJPHSZ[H[LTLU[ZPUHJJVYKHUJL ^P[ONLULYHSS`HJJLW[LKHJJV\U[PUNWYPUJPWSLZHUK[OH[YLJLPW[ZHUKL_WLUKP[\YLZVM[OLJVTWHU`HYLILPUNTHKLVUS`PUHJJVYKHUJL^P[O H\[OVYPaH[PVUZVMTHUHNLTLU[HUKKPYLJ[VYZVM[OLJVTWHU`"HUKPPPWYV]PKLYLHZVUHISLHZZ\YHUJLYLNHYKPUNWYL]LU[PVUVY[PTLS`KL[LJ [PVUVM\UH\[OVYPaLKHJX\PZP[PVU\ZLVYKPZWVZP[PVUVM[OLJVTWHU`»ZHZZL[Z[OH[JV\SKOH]LHTH[LYPHSLMMLJ[VU[OLÄUHUJPHSZ[H[LTLU[Z Golden Star 34 )LJH\ZLVMP[ZPUOLYLU[SPTP[H[PVUZPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNTH`UV[WYL]LU[VYKL[LJ[TPZZ[H[LTLU[Z(SZVWYVQLJ[PVUZVM HU`L]HS\H[PVUVMLMMLJ[P]LULZZ[VM\[\YLWLYPVKZHYLZ\IQLJ[[V[OLYPZR[OH[JVU[YVSZTH`ILJVTLPUHKLX\H[LILJH\ZLVMJOHUNLZPUJVUKP[PVUZ VY[OH[[OLKLNYLLVMJVTWSPHUJL^P[O[OLWVSPJPLZVYWYVJLK\YLZTH`KL[LYPVYH[L (TH[LYPHS^LHRULZZPZHJVU[YVSKLÄJPLUJ`VYJVTIPUH[PVUVMJVU[YVSKLÄJPLUJPLZ[OH[YLZ\S[ZPUTVYL[OHUHYLTV[LSPRLSPOVVK[OH[H TH[LYPHSTPZZ[H[LTLU[VM[OLHUU\HSVYPU[LYPTÄUHUJPHSZ[H[LTLU[Z^PSSUV[ILWYL]LU[LKVYKL[LJ[LK4HUHNLTLU[»ZHZZLZZTLU[PKLU[PÄLK [OLMVSSV^PUNTH[LYPHS^LHRULZZLZ!P(ZVM+LJLTILY THUHNLTLU[KPKUV[THPU[HPULMMLJ[P]LJVU[YVSZV]LY[OLHJJV\U[PUNMVY ^HYYHU[ZKLUVTPUH[LKPU*HUHKPHUKVSSHYZ\ZPUNHJJV\U[PUNWYPUJPWSLZNLULYHSS`HJJLW[LKPU[OL ;OLZLTH[LYPHS^LHRULZZLZ^LYLJVUZPKLYLKPUKL[LYTPUPUN[OLUH[\YL[PTPUNHUKL_[LU[VMH\KP[[LZ[ZHWWSPLKPUV\YH\KP[VM[OL +LJLTILY JVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZHUKV\YVWPUPVUYLNHYKPUN[OLLMMLJ[P]LULZZVM[OL*VTWHU`»ZPU[LYUHSJVU[YVSV]LY ÄUHUJPHSYLWVY[PUNKVLZUV[HMMLJ[V\YVWPUPVUVU[OVZLJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[Z 0UV\YVWPUPVUTHUHNLTLU[»ZHZZLZZTLU[[OH[[OL*VTWHU`KPKUV[THPU[HPULMMLJ[P]LPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNHZ H[+LJLTILY PZMHPYS`Z[H[LKPUHSSTH[LYPHSYLZWLJ[ZIHZLKVUJYP[LYPHLZ[HISPZOLKPU0U[LYUHS*VU[YVS·0U[LNYH[LK-YHTL^VYR PZZ\LKI`[OL*6:6(SZVPUV\YVWPUPVUILJH\ZLVM[OLLMMLJ[VM[OLTH[LYPHS^LHRULZZKLZJYPILKHIV]LVU[OLHJOPL]LTLU[VM[OL VIQLJ[P]LZVM[OLJVU[YVSJYP[LYPH[OL*VTWHU`OHZUV[THPU[HPULKLMMLJ[P]LPU[LYUHSJVU[YVSV]LYÄUHUJPHSYLWVY[PUNHZVM+LJLTILY IHZLKVUJYP[LYPHLZ[HISPZOLKPU0U[LYUHS*VU[YVS·0U[LNYH[LK-YHTL^VYRPZZ\LKI`[OL*6:6 /s/ PricewaterhouseCoopers LLP Chartered Accountants Vancouver, British Columbia, Canada March 13, 2007 35 Auditors’ Report GOLDEN STAR RESOURCES LTD. CONSOLIDATED BALANCE SHEETS (Stated in thousands of US dollars except shares issued and outstanding) As of December 31, 2006 2005 ASSETS *<99,5;(::,;: *HZOHUKJHZOLX\P]HSLU[Z (JJV\U[ZYLJLP]HISL 8,820 6,560 0U]LU[VYPLZ5V[L 23,181 -\[\YL[H_HZZL[Z5V[L ¶ 6,248 -HPY]HS\LVMKLYP]H[P]LZ5V[L ¶ 1,220 +LWVZP[Z5V[L 5,185 7YLWHPKZHUKV[OLY 1,458 686 ;V[HS*\YYLU[(ZZL[Z 90,534 9,:;90*;,+*(:/ 1,581 5,442 365.;,9405=,:;4,5;:5V[L 8,160 +,-,99,+,?7369(;065(5++,=,3674,5;*6:;:5V[L 7967,9;@73(5;(5+,8<074,5;5V[L 93,058 40505.7967,9;0,:5V[L 118,088 *65:;9<*;06505796.9,::5V[L 165,155 +,-,99,+:;907705.5V[L ¶ 1,548 -<;<9,;(?(::,;:5V[L 8,223 6;/,9(::,;: ;V[HS(ZZL[Z $ 564,603 LIABILITIES *<99,5;30()030;0,: (JJV\U[ZWH`HISL $ 19,012 $ 9,093 (JJY\LKSPHIPSP[PLZ 25,516 -HPY]HS\LVMKLYP]H[P]LZ5V[L 685 *\YYLU[WVY[PVUVMM\[\YL[H_SPHIPSP[`5V[L 1,450 ¶ (ZZL[YL[PYLTLU[VISPNH[PVUZ5V[L 3,064 *\YYLU[KLI[5V[L 19,424 6,855 ;V[HS*\YYLU[3PHIPSP[PLZ 69,151 40,815 365.;,94+,);5V[L 66,911 64,298 (::,;9,;09,4,5;6)30.(;065:5V[L 16,034 8,286 -(09=(3<,6-+,90=(;0=,:5V[L ¶ -<;<9,;(?30()030;@5V[L 42,154 ;V[HS3PHIPSP[PLZ 194,250 405690;@05;,9,:; 6,629 *6440;4,5;:(5+*65;05.,5*0,:5V[L ¶ ¶ SHAREHOLDERS’ EQUITY :/(9,*(70;(3 -PYZ[WYLMLYYLKZOHYLZ^P[OV\[WHY]HS\L\USPTP[LKZOHYLZH\[OVYPaLK5VZOHYLZPZZ\LKHUKV\[Z[HUKPUN ¶ ¶ *VTTVUZOHYLZ^P[OV\[WHY]HS\L\USPTP[LKZOHYLZH\[OVYPaLK:OHYLZPZZ\LKHUKV\[Z[HUKPUN! H[+LJLTILY " H[+LJLTILY 524,619 522,510 *65;90)<;,+:<973<: 10,040 ,8<0;@*64765,5;6-*65=,9;0)3,56;,: +,-0*0; ;V[HS:OHYLOVSKLYZ»,X\P[` 462,100 392,240 ;V[HS3PHIPSP[PLZHUK:OHYLOVSKLYZ»,X\P[` $ 564,603 ;OLHJJVTWHU`PUNUV[LZHYLHUPU[LNYHSWHY[VM[OLZLÄUHUJPHSZ[H[LTLU[Z )`! Z3HYZ,YPJ1VOHUZZVU·+PYLJ[VY )`! Z7L[LY1)YHKMVYK·+PYLJ[VY Golden Star 36 GOLDEN STAR RESOURCES LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Stated in thousands of US dollars except per share amounts) For the years ended December 31, 2006 2005 2004 REVENUE .VSKZHSLZ $ 122,586 $ 89,663 $ 60,690 9V`HS[`PUJVTL 4,026 3,049 0U[LYLZ[HUKV[OLY 1,624 1,290 ;V[HSYL]LU\LZ 128,690 95,465 65,029 PRODUCTION EXPENSES 4PUPUNVWLYH[PVUZ 39,095 +LWYLJPH[PVUKLWSL[PVUHUKHTVY[PaH[PVU 21,460 15,983 8,096 (JJYL[PVUVMHZZL[YL[PYLTLU[VISPNH[PVU5V[L 835 645 ;V[HSTPULVWLYH[PUNJVZ[Z 115,025 96,344 OPERATING EXPENSES ,_WSVYH[PVUL_WLUZL 1,462 951 895 .LULYHSHUKHKTPUPZ[YH[P]LL_WLUZL 8,631 *VYWVYH[LKL]LSVWTLU[L_WLUZL ¶ 248 4,504 ;V[HSWYVK\J[PVUHUKVWLYH[PUNL_WLUZLZ 61,432 6WLYH[PUNPUJVTLSVZZ 1,330 OTHER EXPENSES, (GAINS) AND LOSSES +LYP]H[P]LTHYR[VTHYRL[SVZZ5V[L 9,589 11,820 ¶ (IHUKVUTLU[HUKPTWHPYTLU[VMTPULYHSWYVWLY[PLZ 1,403 .HPUVUWHY[PHSZHSLVMPU]LZ[TLU[PU,<965V[L ¶ .HPUVUZHSLVMPU]LZ[TLU[PU4V[V5V[L ¶ ¶ 3VZZVULX\P[`PU]LZ[TLU[Z ¶ 239 331 0U[LYLZ[L_WLUZL 1,846 2,416 139 -VYLPNUL_JOHUNLNHPUSVZZ 280 0UJVTLSVZZILMVYLTPUVYP[`PU[LYLZ[ 4PUVYP[`PU[LYLZ[ 5L[PUJVTLSVZZILMVYLPUJVTL[H_ 1,100 0UJVTL[H_L_WLUZLYLJV]LY`5V[L 12,930 1,542 5L[PUJVTLSVZZ $ 64,689 $ (13,531) $ 2,642 5L[PUJVTLSVZZWLYJVTTVUZOHYL·IHZPJ5V[L 5L[PUJVTLSVZZWLYJVTTVUZOHYL·KPS\[LK5V[L >LPNO[LKH]LYHNLZOHYLZV\[Z[HUKPUNTPSSPVUZVMZOHYLZ ;OLHJJVTWHU`PUNUV[LZHYLHUPU[LNYHSWHY[VM[OLZLÄUHUJPHSZ[H[LTLU[Z 37 Consolidated Financial Statements GOLDEN STAR RESOURCES LTD. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Stated in thousands of US dollars) Contributed Surplus Equity Number of Component Common Share of Convertible Shares Capital Warrants Options Debentures +LÄJP[ )HSHUJLH[+LJLTILY $ 324,262 $ 2,361 $ 955 ¶ >HYYHU[ZL_LYJPZLK ¶ ¶ ¶ ¶ 6W[PVUPZZ\LK¶UL[VMMVYMLP[\YLZ ¶ ¶ ¶ 1,218 ¶¶ :OHYLZPZZ\LK\UKLYVW[PVUZ 1,239 ¶ ¶ ¶ :OHYLZPZZ\LK\UKLY^HYYHU[Z 8,494,609 14,332 ¶¶¶¶ :OHYLZPZZ\LK[VHJX\PYLWYVWLY[` 58,045 300 ¶¶¶¶ 5L[PUJVTL ¶¶¶¶¶2,642 )HSHUJLH[+LJLTILY 142,244,112 $ 340,888 $ 1,606 $ 2,040 ¶ :OHYLZPZZ\LK 31,589,600 ¶¶¶¶ 0ZZ\LJVZ[Z ¶ ¶¶¶¶ >HYYHU[ZPZZ\LK ¶ ¶ 992 ¶ ¶ ¶ >HYYHU[ZL_LYJPZLK ¶ 22 ¶ ¶ ¶ 6W[PVUPZZ\LK¶UL[VMMVYMLP[\YLZ ¶ ¶ ¶ ¶ ¶ :OHYLZPZZ\LK\UKLYVW[PVUZ 312,940 ¶ ¶ ¶ :OHYLZPZZ\LK\UKLY^HYYHU[Z 385,000 ¶¶¶¶ :[VJRIVU\Z 45,342 166 ¶¶¶¶ :OHYLZPZZ\LK[VHJX\PYLWYVWLY[` 108,298 ¶¶¶¶ ,X\P[`*VTWVULU[VM *VU]LY[PISL+LILU[\YLZ ¶¶¶¶ ¶ 5L[SVZZ ¶¶¶¶¶ )HSHUJLH[+LJLTILY 205,954,582 $ 522,510 $ 4,402 6W[PVUZPZZ\LK¶UL[VMMVYMLP[\YLZ ¶ ¶ ¶ 1,842 ¶¶ :OHYLZPZZ\LK\UKLYVW[PVUZ 4,818 ¶ ¶ ¶ 0ZZ\LJVZ[Z ¶ ¶¶¶¶ :[VJRIVU\Z 4,000 15 ¶¶¶¶ 9LJSHZZPÄJH[PVUVM^HYYHU[Z[V *VU[YPI\[LKZ\YWS\Z ¶ ¶¶¶ 5L[PUJVTL ¶¶¶¶¶64,689 )HSHUJLH[+LJLTILY $ 524,619 $ 5,151 $ 4,889 ;OLHJJVTWHU`PUNUV[LZHYLHUPU[LNYHSWHY[VM[OLZLÄUHUJPHSZ[H[LTLU[Z Golden Star 38 GOLDEN STAR RESOURCES LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Stated in thousands of US dollars) For the years ended December 31, 2006 2005 2004 OPERATING ACTIVITIES: 5L[PUJVTLSVZZ $ 64,689 $ 2,642 Reconciliation of net income to net cash provided by operating activities: +LWYLJPH[PVUKLWSL[PVUHUKHTVY[PaH[PVU 21,530 16,042 8,096 (TVY[PaH[PVUVMSVHUHJX\PZP[PVUJVZ[ 358 228 ¶ +LMLYYLKZ[YPWWPUN 1,548 3VZZVULX\P[`PU]LZ[TLU[ ¶ 239 331 .HPUVUZHSLVMPU]LZ[TLU[ZPU4V[VHUK,<96 ¶ 5VUJHZOLTWSV`LLJVTWLUZH[PVU 1,386 0TWHPYTLU[VMKLMLYYLKL_WSVYH[PVUWYVQLJ[Z 1,413 0UJVTL[H_L_WLUZLILULÄ[ 9LJSHTH[PVUL_WLUKP[\YLZ -HPY]HS\LVMKLYP]H[P]LZ 3,640 ¶ (JJYL[PVUVMJVU]LY[PISLKLI[ 523 ¶ (JJYL[PVUVMHZZL[YL[PYLTLU[VISPNH[PVUZ 835 645 4PUVYP[`PU[LYLZ[Z 21,824 2,913 11,218 Changes in assets and liabilities: (JJV\U[ZYLJLP]HISL 0U]LU[VYPLZ +LWVZP[Z 163 ¶ (JJV\U[ZWH`HISLHUKHJJY\LKSPHIPSP[PLZ 8,204 6[OLY 5L[JHZOWYV]PKLKI`VWLYH[PUNHJ[P]P[PLZ 5,398 1,060 13,910 INVESTING ACTIVITIES: ,_WLUKP[\YLZVUKLMLYYLKL_WSVYH[PVUHUKKL]LSVWTLU[ ,_WLUKP[\YLZVUTPUPUNWYVWLY[PLZ ,_WLUKP[\YLZVUWYVWLY[`WSHU[HUKLX\PWTLU[ ,_WLUKP[\YLZVUTPULJVUZ[Y\J[PVUPUWYVNYLZZ *HZOPU]LZ[LKPUZOVY[[LYTPU]LZ[TLU[Z ¶ *HZOWYV]PKLKI`ZOVY[[LYTPU]LZ[TLU[Z 21,080 38,850 ¶ *HZOWYV]PKLKI`KYH^KV^UVMYLZ[YPJ[LKJHZO 3,861 ¶¶ ,_WLUKP[\YLVUW\YJOHZLVM4V[VZOHYLZ ¶ ¶ 7YVJLLKZMYVTZHSLVMPU]LZ[TLU[PU4V[V 38,952 ¶¶ 7YVJLLKZMYVTZHSLVMPU]LZ[TLU[PU,<96 33,202 ¶¶ *OHUNLPUWH`HISLVUJHWP[HSL_WLUKP[\YLZ 6,914 434 ¶ :HSLVMWYVWLY[` ¶ 1,000 1,000 3VUN[LYTPU]LZ[TLU[Z +LWVZP[Z 6[OLY 41 5L[JHZO\ZLKPUPU]LZ[PUNHJ[P]P[PLZ FINANCING ACTIVITIES: 0ZZ\HUJLVMZOHYLJHWP[HSUL[VMPZZ\LJVZ[Z 3,463 +LI[YLWH`TLU[Z5V[L 0ZZ\HUJLVMKLI[5V[L 2,328 6[OLY ¶ 5L[JHZOWYV]PKLKI`ÄUHUJPUNHJ[P]P[PLZ 24,123 143,261 0UJYLHZLKLJYLHZLPUJHZOHUKJHZOLX\P]HSLU[Z *HZOHUKJHZOLX\P]HSLU[ZILNPUUPUNVMWLYPVK *HZOHUKJHZOLX\P]HSLU[ZLUKVMWLYPVK :LL5V[L MVYZ\WWSLTLU[HSJHZOÅV^PUMVYTH[PVU ;OLHJJVTWHU`PUNUV[LZHYLHUPU[LNYHSWHY[VM[OLZLÄUHUJPHSZ[H[LTLU[Z 39 Consolidated Financial Statements GOLDEN STAR RESOURCES LTD. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in tables are in thousands of US Dollars unless noted otherwise) 1 NATURE OF OPERATIONS ;OYV\NOV\YZ\IZPKPHYPLZ^LV^UHJVU[YVSSPUNPU[LYLZ[PUMV\YZPNUPÄJHU[NVSKWYVWLY[PLZPUZV\[OLYU.OHUHPU>LZ[(MYPJH! )VNVZV7YLZ[LHWYVWLY[`^OPJOPZJVTWYPZLKVM[OLHKQVPUPUN)VNVZVHUK7YLZ[LHZ\YMHJLTPUPUNSLHZLZ¸)VNVZV7YLZ[LH¹" 7YLZ[LH 0UHKKP[PVU[V[OLZLNVSKWYVWLY[PLZ^LOVSK]HYPV\ZV[OLYL_WSVYH[PVUYPNO[ZHUKPU[LYLZ[ZHUKHYLHJ[P]LS`L_WSVYPUNPUH]HYPL[`VMSVJH[PVUZ PU>LZ[(MYPJHHUK:V\[O(TLYPJH )VNVZV7YLZ[LHPZV^ULKI`V\Y V^ULKZ\IZPKPHY`.VSKLU:[HY)VNVZV7YLZ[LH3PTP[LK¸.:)73¹MVYTLYS`)VNVZV.VSK3PTP[LK ^OPJO^HZHJX\PYLKPU )VNVZV7YLZ[LHWYVK\JLKHUKZVSK V\UJLZVMNVSKK\YPUN ;OYV\NOHUV[OLY V^ULKZ\IZPKPHY`.VSKLU:[HY>HZZH3PTP[LK¸.:>3¹MVYTLYS`>L_MVYK.VSKÄLSKZ3PTP[LK^LV^U[OL>HZZH NVSKTPULSVJH[LKZVTL RPSVTL[LYZLHZ[VM)VNVZV7YLZ[LH*VUZ[Y\J[PVUHUKJVTTPZZPVUPUNVM>HZZH»ZUL^WYVJLZZPUNWSHU[HUK VWLUWP[TPUL^HZJVTWSL[LKH[[OLLUKVM4HYJO HUK[OLWYVQLJ[^HZWSHJLKPUZLY]PJLVU(WYPS >HZZHWYVK\JLKHUKZVSK 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6\YJVYWVYH[LOLHKX\HY[LYZHYLSVJH[LKPU3P[[SL[VU*VSVYHKV<:(HUK^LHSZVTHPU[HPUHYLNPVUHSJVYWVYH[LVMÄJLPU(JJYH.OHUH 6\YHJJV\U[PUNYLJVYKZHYLRLW[PUJVTWSPHUJL^P[O*HUHKPHU.((7(SSVMV\YVWLYH[PVUZL_JLW[MVYJLY[HPUL_WSVYH[PVUWYVQLJ[ZRLLW ÄUHUJPHSYLJVYKZPU<:KVSSHYZ Golden Star 40 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES )HZPZVMJVUZVSPKH[PVUHUK[OLWYLWHYH[PVUVMÄUHUJPHSZ[H[LTLU[Z ;OLZLJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZHYLWYLWHYLKHUKYLWVY[LKPU Cash and cash equivalents *HZOHUKJHZOLX\P]HSLU[ZPUJS\KLJHZOKLWVZP[ZPUHU`J\YYLUJ`YLZPKPUNPUJOLJRPUNPU[LYLZ[ILHYPUNJOLJRPUNHJJV\U[ZTVUL` THYRL[M\UKZHUKZ^LLWHJJV\U[Z*HZOLX\P]HSLU[ZJVUZPZ[VMOPNOS`SPX\PKZOVY[[LYTPU]LZ[TLU[Z>LJVUZPKLYHSSOPNOS`SPX\PKTHYRL[HISL ZLJ\YP[PLZ^P[OTH[\YP[PLZVMSLZZ[OHU KH`ZH[KH[LVMW\YJOHZL[VILJHZOLX\P]HSLU[Z6\YJHZOLX\P]HSLU[ZJVUZPZ[TVZ[S`VM<:HUK *HUHKPHUNV]LYUTLU[[YLHZ\Y`IPSSZHUKHNLUJ`UV[LZ Marketable securities :OVY[[LYTPU]LZ[TLU[ZPUW\ISPJS`[YHKLKTHYRL[HISLZLJ\YP[PLZHYLYLJVYKLKH[JVZ[VYH[X\V[LKTHYRL[WYPJLZPMHWLYTHULU[KL]HS\H[PVU 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0U¶WYVJLZZ 4,596 3,106 4H[LYPHSZHUKZ\WWSPLZ 22,635 14,322 Total $ 45,475 $ 23,181 ;OLYL^LYLHWWYV_PTH[LS` HUK YLJV]LYHISLV\UJLZVMNVSKPUVYLZ[VJRWPSLPU]LU[VYPLZH[+LJLTILY HUK YLZWLJ[P]LS`;OLZ[VJRWPSLPU]LU[VYPLZHYLMVY[OLTVZ[WHY[ZOVY[[LYTZ\YNLWPSLZ^OPJO^PSSILWYVJLZZLKPU[OLUL_[TVU[OZVYSLZZ 4 DEPOSITS 9LWYLZLU[ZJHZOHK]HUJLZHUKWH`TLU[ZMVYLX\PWTLU[HUKTH[LYPHSZW\YJOHZLZI`V\YTPULZ^OPJOHYLUV[`L[KLSP]LYLKVUZP[L 5 LONG TERM INVESTMENTS Investment in Minera IRL ([ +LJLTILY ^L OLSK H PU[LYLZ[ PU 4PULYH 093 HWYP]H[LS` OLSK NVSK L_WSVYH[PVU JVTWHU` ^OPJO VWLYH[LZ PU :V\[O (TLYPJH0U[OL`LHYLUKLK+LJLTILY ^LHJJV\U[LKMVYV\YPU]LZ[TLU[HZHULX\P[`PU]LZ[TLU[I\[I`4HYJO ^LUV SVUNLYOHKZPNUPÄJHU[PUÅ\LUJLHUK^LUV^HJJV\U[MVY[OLPU]LZ[TLU[VU[OLJVZ[IHZPZH[ TPSSPVU Investment in Moto Goldmines Limited ([+LJLTILY ^LOLSKHWWYV_PTH[LS` VM[OLV\[Z[HUKPUNJVTTVUZOHYLZVM4V[V.VSKTPULZ3PTP[LK¸4V[V¹HNVSK L_WSVYH[PVUHUKKL]LSVWTLU[JVTWHU`W\ISPJS`[YHKLKPU*HUHKH^P[OHMVJ\ZVUNVSKL_WSVYH[PVUHUKKL]LSVWTLU[PU[OL+LTVJYH[PJ 9LW\ISPJVM*VUNV0U4HYJO ^LL_LYJPZLKV\YYLTHPUPUNVULTPSSPVU^HYYHU[ZPUJYLHZPUNV\Y[V[HSV^ULYZOPW[VZP_TPSSPVUJVTTVU ZOHYLZHUKPTTLKPH[LS`HM[LY^HYKZVSKHSSZP_TPSSPVUJVTTVUZOHYLZPUH¸IV\NO[¶KLHS¹[YHUZHJ[PVUPU*HUHKHMVY*KU WLYZOHYL ;OLZHSLVM[OLZP_TPSSPVUZOHYLZYLZ\S[LKPUUL[WYVJLLKZ[V.VSKLU:[HYVM TPSSPVU*KU TPSSPVU`PLSKPUNHWYL¶[H_JHWP[HSNHPU VM TPSSPVU 0U]LZ[TLU[PU,<96 ,<96»ZTVZ[ZPNUPÄJHU[HZZL[PZP[ZYV`HS[`MYVT[OL9VZLILSTPULPU:\YPUHTLV^ULKHUKVWLYH[LKI`0(4.VSK*VYWVYH[PVU([+LJLTILY ^LV^ULK VM,<96»ZV\[Z[HUKPUNJVTTVUZOHYLZHUKHZZ\JOJVUZVSPKH[LK,<96»ZÄUHUJPHSYLZ\S[Z^P[OV\YV^U +\YPUN[OLZLJVUKX\HY[LYVM ^LZVSK VMV\Y,<96ZOHYLZPUVWLUTHYRL[[YHUZHJ[PVUZYLHSPaPUNHWWYV_PTH[LS` TPSSPVU VMJHZO6U1\UL ^LZVSKHUHKKP[PVUHSMV\YTPSSPVU,<96ZOHYLZPUHWYP]H[L[YHUZHJ[PVUMVY TPSSPVUVMJHZO;OLW\YJOHZLYZ VM[OLMV\YTPSSPVUZOHYLZOH]LHNYLLK[VWH`HKKP[PVUHSJVUZPKLYH[PVU[V.VSKLU:[HYPM[OL`ZLSS[OLZOHYLZH[HNHPU 45 Notes to the Consolidated Financial Statements ;OLJVTIPULKZOHYLZHSLZK\YPUN[OLZLJVUKX\HY[LYKPS\[LKV\YOVSKPUNPU,<96ºZJVTTVUZOHYLZ[VHWWYV_PTH[LS` 0UYLZWVUZL [VV\YYLK\JLKV^ULYZOPWWVZP[PVU[OLLX\P[`TL[OVKVMHJJV\U[PUN^HZHKVW[LKVU1\UL MVYV\YYLTHPUPUNPU[LYLZ[PU,<96 +\YPUN+LJLTILY ^LZVSKHWWYV_PTH[LS`LPNO[LLUTPSSPVUJVTTVUZOHYLZVM,<969LZZV\YJLZ:(¸,<96¹PUHZLYPLZVMW\ISPJ HUKWYP]H[L[YHUZHJ[PVUZYLZ\S[PUNPU[OLYLK\J[PVUVM.VSKLU:[HY»ZV^ULYZOPWPU[LYLZ[PU,<96[VHWWYV_PTH[LS`[OYLLTPSSPVU,<96ZOHYLZ VYHWWYV_PTH[LS` VMP[ZV\[Z[HUKPUNLX\P[`5L[WYVJLLKZVM[OLZHSL[V[HSLKHWWYV_PTH[LS` TPSSPVUHUKHZHYLZ\S[VM[OPZZHSL[OL LHYSPLYZHSLZHUK[OLJOHUNL[V[OLLX\P[`TL[OVKVMHJJV\U[PUN^LYLJVNUPaLKH[V[HSNHPUVM TPSSPVU :PUJLV\YPU]LZ[TLU[PU,<96^HZKPS\[LK[VSLZZ[OHU PU+LJLTILY ^LUV^HJJV\U[MVY[OLPU]LZ[TLU[VU[OLJVZ[IHZPZH[ aLYVJHYY`PUN]HS\L;OLTHYRL[]HS\LVM[OLYLTHPUPUN,<96JVTTVUZOHYLZ^HZ TPSSPVUH[+LJLTILY IHZLKVU,<96»Z JSVZPUNZOHYLWYPJLHZVM[OH[KH[L 0UHKKP[PVU[V[OLYLTHPUPUNHWWYV_PTH[L ZOHYLOVSKPUNPU,<96HZVM+LJLTILY ^LOVSKHYLZPK\HSWHY[PJPWH[PVUYPNO[ WH`HISLI`,<96IHZLKVUNVSKWYVK\J[PVUMYVT0(4.VSK»Z.YVZZ9VZLILS4PULVUNYVZZNVSKWYVK\J[PVUPUL_JLZZVMTPSSPVUV\UJLZ HUKSLZZ[OHU TPSSPVUV\UJLZHUKHUVW[PVU[VQVPU[]LU[\YL[OL7H\S0ZUHYK7YVQLJ[PU-YLUJO.\PHUH^P[O,<96 6 DEFERRED EXPLORATION AND DEVELOPMENT COSTS *VUZVSPKH[LKWYVWLY[`L_WLUKP[\YLZVUV\YL_WSVYH[PVUWYVQLJ[ZMVY[OL`LHYLUKLK+LJLTILY ^LYLHZMVSSV^Z! Deferred Deferred Exploration & Exploration & Developmzent Capitalized Transfer to Development Costs as of Exploration Acquisition mining Costs as of 12/31/05 Expenditures Costs Impairments properties 12/31/06 AFRICAN PROJECTS (RYVWVUN[YLUKHUKV[OLY.OHUH $ 95 ¶ ¶ $ 833 7YLZ[LHWYVWLY[`¶.OHUH 25 ¶ ¶ ¶ /^PUP¶)\[YLHUK)LUZV¶.OHUH 135,832 4,486 ¶ ¶ 4HUV9P]LY¶:PLYYH3LVUL 1,285 ¶ ¶ 2,015 (MLTH¶0]VY`*VHZ[ 1,028 484 ¶¶¶1,512 .V\SHNV\¶)\YRPUH-HZV 288 254 ¶ ¶ 6[OLY(MYPJH 422 ¶ ¶ 1,082 SOUTH AMERICAN PROJECTS :HYHTHJJH¶:\YPUHTL 50 ¶¶¶ )VU,ZWVPY¶-YLUJO.\PHUH 1,382 268 ¶ ¶ ¶ 6[OLY:V\[O(TLYPJH 256 ¶¶¶¶256 Total $ 1,561 Golden Star 46 *VUZVSPKH[LKWYVWLY[`L_WLUKP[\YLZVUV\YL_WSVYH[PVUWYVQLJ[ZMVY[OL`LHYLUKLK+LJLTILY ^LYLHZMVSSV^Z! Deferred Deferred Exploration & Exploration & Developmzent Capitalized Transfer to Development Costs as of Exploration Acquisition mining Costs as of 12/31/04 Expenditures Costs Impairments properties 12/31/05 AFRICAN PROJECTS (RYVWVUN[YLUKHUKV[OLY.OHUH $ 2,443 $ 2,824 ¶ ¶ 7YLZ[LHWYVWLY[`¶.OHUH ¶¶¶ /^PUP¶)\[YLHUK)LUZV¶.OHUH ¶ ¶ 135,832 ¶¶135,832 4HUV9P]LY¶:PLYYH3LVUL ¶¶¶1,285 (MLTH¶0]VY`*VHZ[ ¶ 918 110 ¶¶1,028 .V\SHNV\¶)\YRPUH-HZV ¶ ¶ ¶ ¶ 4PUPURL¶4HSP 1,033 50 ¶ ¶ ¶ 6[OLY(MYPJH ¶ ¶ ¶ ¶ SOUTH AMERICAN PROJECTS :HYHTHJJH¶:\YPUHTL 394 ¶¶¶ )VU,ZWVPY¶-YLUJO.\PHUH 501 881 ¶¶¶1,382 6[OLY:V\[O(TLYPJH 256 ¶¶¶¶256 Total $ 5,834 $ 155,649 ¶ 7 PROPERTY, PLANT AND EQUIPMENT As of December 31, 2006 As of December 31, 2005 Property, Property, Property, Plant and Property, Plant and Plant and Equipment Plant and Equipment, Equipment at Accumulated Net Book Equipment at Accumulated Net Book Cost Depreciation Value Cost Depreciation Value )VNVZV7YLZ[LH $ 13,263 $ 44,129 $ 40,802 $ 8,240 $ 32,562 7YLZ[LH 47 Notes to the Consolidated Financial Statements 8 MINING PROPERTIES As of December 31, 2006 As of December 31, 2005 Mining Mining Mining Properties, Mining Properties, Properties Accumulated Net Properties Accumulated Net at Cost Amortization Book Value at Cost Amortization Book Value )VNVZV7YLZ[LH $ 51,868 $ 33,241 7YLZ[LH 9 CONSTRUCTION-IN-PROGRESS ([+LJLTILY HUK TPULJVUZ[Y\J[PVU¶PU¶WYVNYLZZYLWYLZLU[ZJVZ[ZPUJ\YYLKMVY[OL)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[ ZPUJL[OLILNPUUPUNVM 0UJS\KLKPU[OL[V[HSHYLJVZ[ZVMKL]LSVWTLU[KYPSSPUNWSHU[LX\PWTLU[W\YJOHZLZTH[LYPHSZHUKJVUZ[Y\J[PVU JVZ[ZWH`TLU[Z[V[OLJVUZ[Y\J[PVUJVU[YHJ[VYZTPUPUNLX\PWTLU[JVZ[ZJHWP[HSPaLKPU[LYLZ[HUKWYLWYVK\J[PVUZ[YPWWPUNJVZ[Z As of December 31, 2006 2005 7SHU[JVUZ[Y\J[PVUJVZ[ $ 118,826 4PUPUNLX\PWTLU[JVZ[ 10,505 ¶ 7YLWYVK\J[PVUZ[YPWWPUNJVZ[ ¶ :\I[V[HS *VZ[ZWYPVY[VWYVQLJ[JVTTLUJLTLU[ *HWP[HSPaLK0U[LYLZ[ 6,211 1,836 Total $ 165,155 10 DEFERRED STRIPPING ;OLHTV\U[VMZ[YPWWPUNJVZ[Z[VILJHWP[HSPaLKPULHJOWLYPVKPZJHSJ\SH[LKI`KL[LYTPUPUN[OL[VUULZVM^HZ[LTV]LKPUL_JLZZVM[OL SPML¶VM¶WP[H]LYHNLZ[YPWYH[PVHUK]HS\PUN[OLL_JLZZ[VUUHNLVMYLTV]LK^HZ[LH[[OLH]LYHNLTPUPUNJVZ[WLY[VUULK\YPUN[OLWLYPVK *VZ[ZHYLYLJV]LYLKPUWLYPVKZ^OLU[OLHJ[\HS[VUULZVM^HZ[LTV]LKHYLSLZZ[OHU[OLH]LYHNLSPML¶VM¶WP[YH[LZ\JO[VUULZILPUN]HS\LK H[[OLYVSSPUNH]LYHNLJVZ[VM[OL^HZ[L[VUUHNLHTV\U[ZJHWP[HSPaLK ;OLJHWP[HSPaLKJVTWVULU[VM^HZ[LYVJRYLTV]HSJVZ[ZPZZOV^UVUV\YJVUZVSPKH[LKIHSHUJLZOLL[ZPU[OLSPULP[LT[P[SLK¸+LMLYYLK :[YPWWPUN¹;OLJVZ[PTWHJ[PZPUJS\KLKPU[OL:[H[LTLU[ZVM6WLYH[PVUZPU[OLSPULP[LT[P[SLK¸4PUPUNVWLYH[PVUZ¹ +LMLYYLKZ[YPWWPUNJVZ[ZVUV\Y ÄUHUJPHSZ[H[LTLU[Z^LYLYLSH[LK[V[OL7SHU[5VY[OWP[H[7YLZ[LH;OL7SHU[5VY[OWP[^HZJSVZLKPU SH[L \WVUJVTWSL[PVUVMTPUPUNHJ[P]P[PLZ +\YPUN[OL`LHYLUKLK+LJLTILY HSS[OLYLTHPUPUNKLMLYYLKZ[YPWWPUNJVZ[VM TPSSPVU^HZYLJV]LYLK Golden Star 48 11 DEBT As of December 31, 2006 2005 *\YYLU[KLI[! )HURSVHU¶,<965V[LH ¶ +LI[MHJPSP[`5V[LI ¶ ,X\PWTLU[ÄUHUJPUNSVHUZ5V[LJ 12,549 4,188 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Scheduled for settlement At December 31, 2006 PUÄYZ[X\HY[LYVM .VSKW\[VW[PVUZ 6\UJLZ[OV\ZHUKZ (]LYHNLWYPJLWLYV\UJL 404 .VSKJHSSVW[PVUZ 6\UJLZ[OV\ZHUKZ 6 (]LYHNLWYPJLWLYV\UJL 525 Golden Star 50 Fair value of EURO derivative Fair Value of Derivatives December 31,2006 on June 19, 2006 December 31,2005 (Expense)/Gain *HZO¶ZL[[SLKMVY^HYKNVSKWYPJLHNYLLTLU[Z $ ¶ $ $ 7\[Z ¶ ¶ *HSSZ ¶ 1,565 9HUKMVY^HYKW\YJOHZLZ ¶ ¶ 1,146 ,\YVMVY^HYKW\YJOHZLZ ¶ ¶ 162 Unrealized loss $ $ $ $ Realized loss *HZO¶ZL[[SLKMVY^HYKNVSKWYPJLHNYLLTLU[Z *HSSZ Total derivative loss $ 13 ASSET RETIREMENT OBLIGATIONS 6\Y(ZZL[9L[PYLTLU[6ISPNH[PVUZ¸(96¹HYLLX\HS[V[OLWYLZLU[]HS\LVMHSSLZ[PTH[LKM\[\YLJSVZ\YLJVZ[ZHZZVJPH[LK^P[OYLJSHTH[PVU KLTVSP[PVUHUKZ[HIPSPaH[PVUVMV\Y)VNVZV7YLZ[LHHUK>HZZHTPUPUNHUKVYLWYVJLZZPUNWYVWLY[PLZ0UJS\KLKPU[OPZSPHIPSP[`HYL[OLJVZ[Z VMTPULJSVZ\YLHUKYLJSHTH[PVUWYVJLZZPUNWSHU[HUKPUMYHZ[Y\J[\YLKLTVSP[PVU[HPSPUNZWVUKZ[HIPSPaH[PVUHUKYLJSHTH[PVUHUKLU]PYVUTLU[HS TVUP[VYPUNJVZ[Z>OPSL[OLTHQVYP[`VM[OLZLJVZ[Z^PSSILPUJ\YYLKULHY[OLLUKVM[OLTPULZ»SP]LZP[PZL_WLJ[LK[OH[JLY[HPUVU¶NVPUN YLJSHTH[PVUJVZ[Z^PSSILPUJ\YYLKWYPVY[VTPULJSVZ\YL;OLZLJVZ[ZHYLYLJVYKLKHNHPUZ[[OLJ\YYLU[HZZL[YL[PYLTLU[VISPNH[PVUSPHIPSP[`HZ PUJ\YYLK;OL[V[HS\UKPZJV\U[LKHTV\U[VM[OLLZ[PTH[LKJHZOÅV^ZPZ TPSSPVU ;OLJOHUNLZPU[OLJHYY`PUNHTV\U[VM[OL(96K\YPUN HUK ^LYLHZMVSSV^Z! 2006 2005 )HSHUJLH[1HU\HY` $ 11,393 $ 8,660 (JJYL[PVUL_WLUZL 835 *VZ[VMYLJSHTH[PVU^VYRWLYMVYTLK (KKP[PVUZJOHUNLPULZ[PTH[LZHUKV[OLY 8,000 )HSHUJLH[+LJLTILY $ 19,098 $ 11,393 *\YYLU[WVY[PVU $ 3,064 3VUN[LYTWVY[PVU $ 16,034 $ 8,286 ;OLUL^SPHIPSP[PLZPUJ\YYLKK\YPUN YLSH[LZ[V[OLNYLH[LYYLJSHTH[PVUSPHIPSP[`HZZVJPH[LK^P[O[OL)VNVZV:\SÄKL,_WHUZPVU7YVQLJ[ [OLYLJSHTH[PVUSPHIPSP[`PUJ\YYLK^P[O[OLKL]LSVWTLU[VM[OL7HTWLWYVWLY[PLZHUK[OLTPUPUNVM[OL:(2WP[ZH[>HZZH;OLPUJYLHZLK SPHIPSP[`YLSH[LZ[V[OLYLJSHTH[PVUHZZVJPH[LK^P[O[OLYLTV]HSVM[OLWSHU[[OLL_WHUKLK[HPSPUNZMHJPSP[`HUK[OLPUJYLHZLKZPaLVM[OLWP[Z HUKK\TWZ>LHSZVJVTWSL[LKHYLJSHTH[PVUZ[\K`MVYIVUKPUNHZYLX\PYLKI`[OL.OHUH,U]PYVUTLU[HS7YV[LJ[PVU(NLUJ`¸,7(¹HUK \WKH[LKV\YJVZ[LZ[PTH[LZIHZLKVU[OLYLZ\S[ZVM[OLZ[\K` ;OL\UKPZJV\U[LKJHZOÅV^Z\ZLK[VKL[LYTPUL[OL(96HYL TPSSPVU(JYLKP[HKQ\Z[LKYPZRMYLLYH[LVM ^HZ\ZLK[VKPZJV\U[ V\YHKKP[PVUZ[V[OL(96K\YPUN 51 Notes to the Consolidated Financial Statements 14 COMMITMENTS AND CONTINGENCIES 6\YJVTTP[TLU[ZHUKJVU[PUNLUJPLZPUJS\KL[OLMVSSV^PUNP[LTZ! 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Weighted–Average Weighted–Average Remaining Aggregate Options Exercise price Contractual Term intrinsic value (000’) (Cdn$) (Years) ($000) 6\[Z[HUKPUNHZVM+LJLTILY $ 2,533 .YHU[LK 1,412 ,_LYJPZLK ¶ -VYMLP[LK 6\[Z[HUKPUNHZVM+LJLTILY 6,556 3,583 ,_LYJPZHISLH[+LJLTILY 5,381 $ 2,668 Options outstanding Options exercisable Weighted–average Number remaining Number Range of exercise outstanding at contractual life Weighted-average exercisable at Weighted-average prices (Cdn$) December 31, 2006 (years) exercise price (Cdn$) December 31, 2006 exercise price (Cdn$) [V 3,396 3,396 [V 1,882 [V 1,234 863 [V 44 44 6,556 5,381 ;OL^LPNO[LK¶H]LYHNLNYHU[KH[LMHPY]HS\LVMZOHYLVW[PVUZNYHU[LKK\YPUN[OL`LHYZLUKLK+LJLTILY HUK^HZ *KU *KU HUK*KU YLZWLJ[P]LS`;OLPU[YPUZPJ]HS\LVMVW[PVUZL_LYJPZLKK\YPUN[OL`LHYZLUKLK+LJLTILY HUK^HZ TPSSPVU TPSSPVUHUK TPSSPVUYLZWLJ[P]LS` Golden Star 54 (Z\TTHY`VM[OLZ[H[\ZVMUVU¶]LZ[LKVW[PVUZH[+LJLTILY HUKJOHUNLZK\YPUN[OL`LHYLUKLK+LJLTILY PZ WYLZLU[LKILSV^! Weighted average grant Number of options (‘000) date fairvalue (Cdn$) 5VU]LZ[LKH[1HU\HY` .YHU[LK 1,412 =LZ[LK -VYMLP[LK 5VU]LZ[LKH[+LJLTILY (ZVM+LJLTILY [OLYL^HZH[V[HS\UYLJVNUPaLKJVTWLUZH[PVUJVZ[VM*KU TPSSPVUYLSH[LK[VZOHYL¶IHZLKJVTWLUZH[PVUNYHU[ LK\UKLY[OL7SHU;OH[JVZ[PZL_WLJ[LK[VILYLJVNUPaLKV]LYH^LPNO[LK¶H]LYHNLWLYPVKVM`LHYZ;OL[V[HSMHPY]HS\LZVMZOHYLZ]LZ[LK K\YPUN[OL`LHYLUKLK+LJLTILY HUK^LYL*KU TPSSPVU*KU TPSSPVUHUK*KU TPSSPVUYLZWLJ[P]LS` Stock Bonus Plan¶0U+LJLTILY ^LLZ[HISPZOLKHU,TWSV`LLZ»:[VJR)VU\Z7SHU[OL¸)VU\Z7SHU¹MVYHU`M\SS¶[PTLVYWHY[¶[PTL LTWSV`LL^OL[OLYVYUV[HKPYLJ[VYVM[OL*VTWHU`VYHU`VMV\YZ\IZPKPHYPLZ^OVOHZYLUKLYLKTLYP[VYPV\ZZLY]PJLZ^OPJOJVU[YPI\[LK [V[OLZ\JJLZZVM[OL*VTWHU`VYHU`VMP[ZZ\IZPKPHYPLZ;OL)VU\Z7SHUWYV]PKLZ[OH[HZWLJPÄJHSS`KLZPNUH[LKJVTTP[[LLVM[OL)VHYK VM+PYLJ[VYZTH`NYHU[IVU\ZJVTTVUZOHYLZVU[LYTZ[OH[P[TPNO[KL[LYTPUL^P[OPU[OLSPTP[H[PVUZVM[OL)VU\Z7SHUHUKZ\IQLJ[[V[OL Y\SLZVMHWWSPJHISLYLN\SH[VY`H\[OVYP[PLZ;OL)VU\Z7SHUHZHTLUKLKWYV]PKLZMVY[OLPZZ\HUJLVM JVTTVUZOHYLZVMIVU\Z Z[VJRVM^OPJO JVTTVUZOHYLZOHKILLUPZZ\LKHZVM+LJLTILY +\YPUN[OL`LHYLUKLK+LJLTILY HUK ^LPZZ\LKHUK JVTTVUZOHYLZYLZWLJ[P]LS`[VLTWSV`LLZ\UKLY[OL)VU\Z7SHU 17 INCOME TAXES >LYLJVNUPaLM\[\YL[H_HZZL[ZHUKSPHIPSP[PLZIHZLKVU[OLKPMMLYLUJLIL[^LLU[OLÄUHUJPHSYLWVY[PUNHUK[H_IHZPZVMHZZL[ZHUKSPHIPSP[PLZ \ZPUN[OLLUHJ[LK[H_YH[LZL_WLJ[LK[VILPULMMLJ[^OLU[OL[H_LZHYLWHPKVYYLJV]LYLK>LWYV]PKLH]HS\H[PVUHSSV^HUJLHNHPUZ[M\[\YL [H_HZZL[ZMVY^OPJO^LKVUV[JVUZPKLYYLHSPaH[PVUVMZ\JOHZZL[Z[VTLL[[OLYLX\PYLK¸TVYLSPRLS`[OHUUV[¹Z[HUKHYK 6\YM\[\YL[H_HZZL[ZHUKSPHIPSP[PLZH[+LJLTILY HUK PUJS\KL[OLMVSSV^PUNJVTWVULU[Z! December 31, 2006 2005 Future tax assets: 6MMLYPUNJVZ[Z $ 1,489 5VUJHWP[HSSVZZJHYY`V]LYZ 64,228 *HWP[HSSVZZJHYY`V]LYZ 1,361 12,206 4PULWYVWLY[`JVZ[Z 10,883 10,840 9LJSHTH[PVUJVZ[Z 3,225 1,226 +LYP]H[P]LZ 2,664 4,288 6[OLY =HS\H[PVUHSSV^HUJL -\[\YL[H_HZZL[Z $ 56,121 Future tax liabilities: 4PULWYVWLY[`JVZ[Z +LYP]H[P]LZ 439 388 *VU]LYZPVUMLH[\YLKPZJV\U[ 529 6[OLY 1,619 ¶ -\[\YL[H_SPHIPSP[PLZ Net future tax assets/(liabilities) 55 Notes to the Consolidated Financial Statements 9LJVUJPSPH[PVUVMUL[M\[\YL[H_HZZL[ZSPHIPSP[PLZ[V)HSHUJLZOLL[! *\YYLU[WVY[PVUVMM\[\YL[H_HZZL[Z ¶ 6,248 -\[\YL[H_HZZL[Z 8,223 *\YYLU[WVY[PVUVMM\[\YL[H_SPHIPSP[` ¶ -\[\YL[H_SPHIPSP[` Net future tax assets/(liabilities) ;OLJVTWVZP[PVUVMV\Y]HS\H[PVUHSSV^HUJLI`[H_Q\YPZKPJ[PVUPZZ\TTHYPaLKHZMVSSV^Z! 2006 2005 *HUHKH $ 24,692 -YHUJL ¶ 5,584 .OHUH 12,535 9,944 Total valuation allowance $ 39,240 +\YPUN TPSSPVUVM]HS\H[PVUHSSV^HUJLYLSH[LK[V-YHUJL^HZLSPTPUH[LKK\L[V[OLKLJVUZVSPKH[PVUVM,<96 ;OLWYV]PZPVUMVYPUJVTL[H_LZPUJS\KLZ[OLMVSSV^PUNJVTWVULU[Z! 2006 2005 2004 *\YYLU[ *HUHKH ¶ ¶ ¶ -VYLPNU ¶¶¶ -\[\YL *HUHKH 4,926 ¶ -VYLPNU 1,112 ;V[HS $ 6,038 (YLJVUJPSPH[PVUVML_WLJ[LKPUJVTL[H_VUUL[PUJVTLILMVYLTPUVYP[`PU[LYLZ[H[Z[H[\[VY`YH[LZ^P[O[OLHJ[\HSL_WLUZLZYLJV]LY`MVY PUJVTL[H_LZPZHZMVSSV^Z! 2006 2005 2004 5L[PUJVTLSVZZILMVYLTPUVYP[`PU[LYLZ[ :[H[\[VY`[H_YH[L ;H_L_WLUZLILULÄ[H[Z[H[\[VY`YH[L 23,258 -VYLPNU[H_YH[LZ *OHUNLPU[H_YH[LZ 568 ¶ 5VU[H_HISLWVY[PVUVMJHWP[HSNHPUZSVZZLZ ,_WPYLKSVZZJHYY`V]LYZ 842 1,450 +LJVUZVSPKH[PVUVM,<96JHYY`V]LYZHUK[H_IHZPZ ¶ ¶ .OHUHPU]LZ[TLU[HSSV^HUJL ¶ 5VUKLK\J[PISLZ[VJRVW[PVUJVTWLUZH[PVU 599 445 5VUKLK\J[PISLL_WLUZLZ 36 163 119 5VU[H_HISLPUJVTL ¶ ¶ ;H_SVZZVM,<96ZOHYLZ ¶ ¶ 3VZZJHYY`V]LYUV[WYL]PV\ZS`YLJVNUPaLK 0U[LYJVTWHU`HZZL[IHZPZUV[KLK\J[PISL ¶ 6,320 ¶ .OHUHWYVWLY[`IHZPZUV[WYL]PV\ZS`YLJVNUPaLK ¶ 862 5VUKLK\J[PISL.OHUHWYVWLY[`IHZPZ 2,213 ¶ *OHUNLPUM\[\YL[H_HZZL[ZK\L[VL_JOHUNLYH[LZ 238 *OHUNLPU]HS\H[PVUHSSV^HUJL Income tax expense /(recovery) $ 6,038 Golden Star 56 +\YPUN HUK^LYLJVNUPaLK TPSSPVU TPSSPVUHUK TPSSPVUYLZWLJ[P]LS`VMZOHYLVMMLYPUNJVZ[Z:OHYLOVSKLYZ» LX\P[`OHZILLUJYLKP[LKPU[OLHTV\U[ZVM TPSSPVU TPSSPVUHUK TPSSPVUMVY[OL[H_ILULÄ[ZVM[OLZLKLK\J[PVUZ"OV^L]LYH ]HS\H[PVUHSSV^HUJLOHKILLUWYV]PKLKHNHPUZ[[OLPYM\SSHTV\U[0UHKKP[PVUPU ^LYLWVY[LKH TPSSPVUKPZJV\U[YLSH[LK[VV\Y JVU]LY[PISLKLI[:OHYLOVSKLYZ»LX\P[`OHZILLUJOHYNLKPU[OLHTV\U[VM TPSSPVUMVY[OLHZZVJPH[LK[H_L_WLUZL( TPSSPVU ]HS\H[PVUHSSV^HUJLOHZILLUWYV]PKLKPUZOHYLOVSKLYZ»LX\P[`MVY[OLUL[[H_PTWHJ[VM[OLZOHYLVMMLYPUNJVZ[ZHUKKPZJV\U[P[LTZ ([+LJLTILY ^LOHK[H_WVVSHUKSVZZJHYY`V]LYZL_WPYPUNHZMVSSV^Z! Canada Ghana $ 356 2008 2009 2,339 2010 1,099 2014 10,622 2015 5,969 2026 3,996 0UKLÄUP[L 8,368 ;V[HS $ 34,646 18 EARNINGS PER COMMON SHARE ;OLMVSSV^PUN[HISLWYV]PKLZHYLJVUJPSPH[PVUIL[^LLUIHZPJHUKKPS\[LKLHYUPUNZWLYJVTTVUZOHYL! For the years ended December 31, 2006 2005 2004 5L[PUJVTLSVZZ $ 64,689 $ 2,642 >LPNO[LKH]LYHNLU\TILYVMJVTTVUZOHYLZTPSSPVUZ +PS\[P]LZLJ\YP[PLZ! 6W[PVUZ >HYYHU[Z ¶ ¶ >LPNO[LKH]LYHNLU\TILYVMKPS\[LKZOHYLZ )HZPJLHYUPUNZSVZZWLYZOHYL +PS\[LKLHYUPUNZSVZZWLYZOHYL 57 Notes to the Consolidated Financial Statements 19 SUPPLEMENTAL CASH FLOW INFORMATION ;OLMVSSV^PUNPZHZ\TTHY`VMUVUJHZO[YHUZHJ[PVUZ! 2006 2005 2004 Supplemental disclosure of non-cash transactions +LJVUZVSPKH[PVUVM,<96ZLL5V[L ! (JJV\U[ZYLJLP]HISL $ 2,341 ¶ ¶ *HWP[HSPaLKSVHUMLLZ 91 ¶¶ (JJV\U[Z7H`HISL ¶¶ +LYP]H[P]LSPHIPSP[` 6,333 ¶¶ 0U]LZ[TLU[PU.VSKÄLSKZ4PUPLYL:( ¶¶300 *VTTVUZOHYLZPZZ\LK[VW\YJOHZL.VSKÄLSKZ4PUPLYL:( ¶ ¶ 5VU*HZOJVTWVULU[VM:[1\KL9LZV\YJLZ3[K ¶ 110,924 ¶ *VTTVUZOHYLZ^HYYHU[ZHUKVW[PVUZPZZ\LK[VW\YJOHZL:[1\KL9LZV\YJLZ3[K ¶ ¶ 5HTLJOHUNLK[V.VSKLU:[HY4PUPLYL:( ;OLYL^HZUVJHZOWHPKMVYPUJVTL[H_LZK\YPUN HUK*HZOWHPKMVYPU[LYLZ[^HZ TPSSPVUPU TPSSPVUPU HUK TPSSPVUPU([V[HSVM TPSSPVUVMKLWYLJPH[PVU^HZPUJS\KLKPUNLULYHSHUKHKTPUPZ[YH[P]LJVZ[ZVY^HZJHWP[HSPaLK PU[VWYVQLJ[Z 20 OPERATIONS BY SEGMENT AND GEOGRAPHIC AREA ;OLMVSSV^PUNZLNTLU[HUKNLVNYHWOPJKH[HPUJS\KLZYL]LU\LZIHZLKVUWYVK\J[ZOPWTLU[VYPNPUHUKSVUNSP]LKHZZL[ZIHZLKVUWO`ZPJHS SVJH[PVU7YL]PV\ZS`7YLZ[LH Africa As of and for the year Bogoso/ South ended December 31, Prestea Wassa Other America Corporate Total 2006 9L]LU\LZ $ 63,563 $ 59,262 $ 18 $ 4,254 $ 1,593 $ 128,690 0U[LYLZ[L_WLUZL ¶ 281 ¶ 1,846 7YV]PZPVUMVYPUJVTL[H_LZ ¶ ¶ 5L[PUJVTLSVZZ 8,045 2,586 59,551 64,689 ;V[HSHZZL[Z 360,455 110,866 2005 9L]LU\LZ $ 58,534 $ 31,405 ¶ $ 4,282 $ 1,244 $ 95,465 0U[LYLZ[L_WLUZL 325 348 ¶ 415 1,328 2,416 7YV]PZPVUMVYPUJVTL[H_LZ 4,848 ¶¶3,156 4,926 12,930 5L[PUJVTLSVZZ ;V[HSHZZL[Z 168,166 103,506 10,604 564,603 2004 9L]LU\LZ $ 61,002 ¶ ¶ $ 3,145 $ 882 $ 65,029 0U[LYLZ[L_WLUZL 105 ¶¶15 19 139 7YV]PZPVUMVYPUJVTL[H_LZ 1,542 ¶¶¶¶1,542 5L[PUJVTLSVZZ 12,533 ¶ 2,642 ;V[HSHZZL[Z 105,624 59,285 252,160 Golden Star 58 21 RELATED PARTIES +\YPUN ^LVI[HPULKSLNHSZLY]PJLZMYVTHSLNHSÄYT[V^OPJOV\Y*OHPYTHUPZVMJV\UZLS;OL[V[HSJVZ[VMHSSZLY]PJLZW\YJOHZLK K\YPUN HUK ^HZ TPSSPVUHUK TPSSPVUYLZWLJ[P]LS`6\Y*OHPYTHUKPKUV[WLYZVUHSS`WLYMVYTHU`SLNHSZLY]PJLZMVY\Z K\YPUN VY UVYKPKOLILULÄ[KPYLJ[S`VYPUKPYLJ[S`MYVTWH`TLU[ZMVY[OLZLY]PJLZWLYMVYTLKI`[OLÄYT +\YPUN[OLÄYZ[X\HY[LYVM HJVYWVYH[PVUJVU[YVSSLKI`4PJOHLS(;LYYLSSHKPYLJ[VYVM.VSKLU:[HYWYV]PKLKTHUHNLTLU[ZLY]PJLZ[V :[1\KLMVY^OPJOP[^HZWHPK*KU TPSSPVU4Y;LYYLSSILJHTLHKPYLJ[VYVM.VSKLU:[HYMVSSV^PUNV\YHJX\PZP[PVUVM:[1\KLPU +LJLTILY 4Y;LYYLSS»ZJVTWHU`JLHZLKWYV]PKPUNZLY]PJLZ[V:[1\KLH[4HYJO 22 FINANCIAL INSTRUMENTS -HPY=HS\L6\YÄUHUJPHSPUZ[Y\TLU[ZHYLJVTWYPZLKVMJHZOZOVY[[LYTPU]LZ[TLU[ZHJJV\U[ZYLJLP]HISLYLZ[YPJ[LKJHZOHJJV\U[ZWH`HISL HJJY\LKSPHIPSP[PLZHJJY\LK^HNLZWH`YVSS[H_LZHUKKLI[;OLMHPY]HS\LVMJHZOHUKZOVY[[LYTPU]LZ[TLU[ZHJJV\U[ZYLJLP]HISLHJJV\U[Z WH`HISLHJJY\LKSPHIPSP[PLZHUKHJJY\LK^HNLZWH`YVSS[H_LZHUKJ\YYLU[KLI[LX\HSZ[OLPYJHYY`PUN]HS\LK\L[V[OLZOVY[[LYTUH[\YLVM[OLZL P[LTZ;OLMHPY]HS\LVMYLZ[YPJ[LKJHZOPZLX\HS[V[OLJHYY`PUN]HS\LHZ[OLJHZOPZPU]LZ[LKPUZOVY[[LYTOPNOX\HSP[`PUZ[Y\TLU[Z:LL5V[L MVYMHPY]HS\LZVMSVUN[LYTKLI[ 23 SUBSEQUENT EVENT ,X\P[`6MMLYPUN¶6U4HYJO ^LZVSKTPSSPVUJVTTVUZOHYLZH[HWYPJLVM WLYZOHYLYLZ\S[PUNPU TPSSPVUPUNYVZZ WYVJLLKZ5L[WYVJLLKZ^LYL TPSSPVUHM[LYKLK\J[PUN\UKLY^YP[PUNJVTTPZZPVUZI\[ILMVYLKLK\J[PUNVMMLYPUNL_WLUZLZ6U4HYJO [OL\UKLY^YP[LYZL_LYJPZLK[OLPYVW[PVU[VZLSSHUHKKP[PVUHS TPSSPVUJVTTVUZOHYLZMVYHKKP[PVUHSNYVZZWYVJLLKZVM TPSSPVU(M[LYKLK\J[PUN\UKLY^YP[PUNJVTTPZZPVUZUL[WYVJLLKZMYVT[OLZLHKKP[PVUHSZOHYLZ^LYL TPSSPVU;OLWYVJLLKZ^PSSIL \ZLK[VW\YJOHZLHUPU[LYLZ[PUHULSLJ[YPJWV^LYZ[H[PVUPU.OHUHMVYJVTWSL[PVUHUKZ[HY[\WVM[OL)VNVZVZ\SÄKLL_WHUZPVUWYVQLJ[ MVYHMLHZPIPSP[`Z[\K`HUKPM^HYYHU[LKKL]LSVWTLU[VM[OL/))7YVWLY[PLZHUKMVYNLULYHSJVYWVYH[LHUK^VYRPUNJHWP[HSW\YWVZLZ 6U-LIY\HY` ^HYYHU[Z[VW\YJOHZL TPSSPVUJVTTVUZOHYLZH[HZ[YPRLWYPJLVM*KU L_WPYLK 59 Notes to the Consolidated Financial Statements 24 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES 6\YJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZOH]LILLUWYLWHYLKPUHJJVYKHUJL^P[OHJJV\U[PUNWYPUJPWSLZNLULYHSS`HJJLW[LKPU*HUHKH^OPJO KPMMLYMYVT<:.((7;OLLMMLJ[VMHWWS`PUN<:.((7[VV\YÄUHUJPHSZ[H[LTLU[ZPZZOV^UILSV^ >LYLZ[H[LKV\Y<:.((7UV[L[VP[ZÄUHUJPHSZ[H[LTLU[ZMVY[OL`LHYZLUKLK HUK[VJVTWS`^P[O<:.((7HJJV\U[PUNMVY ^HYYHU[Z[VW\YJOHZLJVTTVUZOHYLZ^OPJOOH]LHUL_LYJPZLWYPJLPU*HUHKPHUKVSSHYZ (A) CONSOLIDATED BALANCE SHEETS IN US GAAP As of December 31, 2006 2005 YLZ[H[LK ASSETS *\YYLU[HZZL[Z! *HZOHUKJHZOLX\P]HSLU[Z (JJV\U[ZYLJLP]HISL 8,820 6,560 0U]LU[VYPLZ 23,181 -\[\YL[H_HZZL[Z ¶ 6,248 -HPY]HS\LVMKLYP]H[P]LZ ¶ 1,220 +LWVZP[Z 5,185 6[OLYJ\YYLU[HZZL[Z 1,458 686 ;V[HSJ\YYLU[HZZL[Z 90,534 9LZ[YPJ[LKJHZO 1,581 3,865 (]HPSHISLMVYZHSLHUKSVUN[LYTPU]LZ[TLU[Z5V[LZKHUKK 15,182 +LMLYYLKL_WSVYH[PVUHUKKL]LSVWTLU[JVZ[Z5V[LZKHUKK ¶ ¶ 7YVWLY[`WSHU[HUKLX\PWTLU[5V[LK 92,345 83,813 4PULJVUZ[Y\J[PVUPUWYVNYLZZ 165,155 4PUPUNWYVWLY[PLZ5V[LZKKHUKK 243,532 +LMLYYLKZ[YPWWPUN5V[LK ¶ 1,548 -\[\YL[H_HZZL[5V[LK 8,223 6[OLYHZZL[Z 3,164 ;V[HSHZZL[Z $ 606,095 $ 522,443 LIABILITIES *\YYLU[SPHIPSP[PLZ $ 69,151 $ 40,815 3VUN[LYTKLI[5V[LK 68,539 66,632 (ZZL[YL[PYLTLU[VISPNH[PVUZ 16,034 8,286 -\[\YL[H_SPHIPSP[` 42,154 -HPY]HS\LVMSVUN[LYTKLYP]H[P]LZ5V[LK 15,842 ;V[HSSPHIPSP[PLZ 4PUVYP[`PU[LYLZ[ 2,902 1,964 *VTTP[TLU[ZHUKJVU[PUNLUJPLZ ¶¶ SHAREHOLDERS’ EQUITY :OHYLJHWP[HS5V[LK 524,239 523,696 *VU[YPI\[LKZ\YWS\Z5V[LK 9,048 4,419 (JJ\T\SH[LKJVTWYLOLUZP]LPUJVTLHUKV[OLY5V[LK 9,495 +LÄJP[ ;V[HSZOHYLOVSKLYZ»LX\P[` 404,418 343,832 ;V[HSSPHIPSP[PLZHUKZOHYLOVSKLYZ»LX\P[` $ 606,095 $ 522,443 Golden Star 60 (B) CONSOLIDATED STATEMENTS OF OPERATIONS UNDER US GAAP For the years ended December 31, 2006 2005 2004 YLZ[H[LK YLZ[H[LK 5L[PUJVTL\UKLY*KU.((7 $ 64,689 $ 2,642 +LMLYYLKL_WSVYH[PVUL_WLUKP[\YLZL_WLUZLKWLY<:.((75V[LKHUKK 0TWHJ[VMZ[HY[\WHJJV\U[PUN5V[LK ¶ >YP[LVMMVMKLMLYYLKL_WSVYH[PVUWYVWLY[PLZ5V[LK 1,403 ¶ *HWP[HSPaLKTPULWYVWLY[`HJX\PZP[PVUJVZ[L_WLUZLKMVY<:.((75V[LK ¶ ¶ +LYP]H[P]LNHPUVUUVU<: ^HYYHU[Z5V[LK 5,682 56,854 6[OLY5V[LZK 455 ¶ 5L[PUJVTLSVZZ\UKLY<:.((7ILMVYLTPUVYP[`PU[LYLZ[ 46,962 4PUVYP[`PU[LYLZ[HZHKQ\Z[LK 2,210 5L[PUJVTLSVZZ\UKLY<:.((7 6[OLYJVTWYLOLUZP]LPUJVTL¶NHPUVUTHYRL[HISLZLJ\YP[PLZ5V[LK ¶ *VTWYLOLUZP]LPUJVTLSVZZ $ 63,593 )HZPJUL[PUJVTLSVZZWLYZOHYL\UKLY<:.((7 +PS\[LKUL[PUJVTLSVZZWLYZOHYL\UKLY<:.((7 (C) CONSOLIDATED STATEMENTS OF CASH FLOWS UNDER US GAAP For the years ended December 31, 2006 2005 2004 YLZ[H[LK YLZ[H[LK *HZOWYV]PKLKI`\ZLKPU! 6WLYH[PUNHJ[P]P[PLZ 0U]LZ[PUNHJ[P]P[PLZ -PUHUJPUNHJ[P]P[PLZ 24,123 143,261 0UJYLHZL+LJYLHZLPUJHZOHUKJHZOLX\P]HSLU[Z *HZOHUKJHZOLX\P]HSLU[ILNPUUPUNVMWLYPVK *HZOHUKJHZOLX\P]HSLU[ZLUKVMWLYPVK K5V[LZ 61 Notes to the Consolidated Financial Statements -VY<:.((7W\YWVZLZ VM[OL TPSSPVUVMJVU]LY[PISLUV[LZPZZ\LKPU[OLZLJVUKX\HY[LYVM ^HZJSHZZPÄLKHZH SPHIPSP[` 5\TLYV\Z[YHUZHJ[PVUZZPUJL[OL*VTWHU`»ZVYNHUPaH[PVUPU OH]LJVU[YPI\[LK[V[OLKPMMLYLUJLPUZOHYLJHWP[HS]LYZ\Z[OL *KU.((7IHSHUJLPUJS\KPUN!P\UKLY<:.((7JVTWLUZH[PVUL_WLUZL^HZYLJVYKLKMVY[OLKPMMLYLUJLIL[^LLUX\V[LK THYRL[WYPJLZHUK[OLZ[YPRLWYPJLVMVW[PVUZNYHU[LK[VLTWSV`LLZHUKKPYLJ[VYZ\UKLYZ[VJRVW[PVUWSHUZ^OPSL\UKLY*KU .((7YLJVNUP[PVUVMJVTWLUZH[PVUL_WLUZL^HZUV[YLX\PYLK"PPPU4H` V\YHJJ\T\SH[LKKLÄJP[^HZLSPTPUH[LK[OYV\NO HUHTHSNHTH[PVUKLÄULKHZHX\HZPYLVYNHUPaH[PVU\UKLY<:.((7"·\UKLY<:.((7[OLJ\T\SH[P]LKLÄJP[^HZNYLH[LY[OHU [OLKLÄJP[\UKLY*KU.((7K\L[V[OLWHZ[^YP[LVMMZVMJLY[HPUKLMLYYLKL_WSVYH[PVUJVZ[Z"PPPNHPUZYLJVNUPaLKPU*KU.((7 \WVUPZZ\HUJLZVMZ\IZPKPHYPLZ»ZOHYLZHYLUV[HSSV^LK\UKLY<:.((7"P]^OLU^HYYHU[ZKLUVTPUH[LKPUJ\YYLUJPLZV[OLY[OHU <: HYLL_LYJPZLK[OLKPMMLYLUJLIL[^LLU[OLMHPY]HS\LHUK[OLZ[YPRLWYPJLVM[OL^HYYHU[PZYLJVYKLKHZZOHYLJHWP[HSMVY<: .((7W\YWVZLZI\[\UKLY*KU.((7VUS`[OLZ[YPRLWYPJLPZYLJVYKLKHZZOHYLJHWP[HSVUL_LYJPZL 0TWHJ[VM9LJLU[S`0ZZ\LK(JJV\U[PUN:[HUKHYKZ 0U-LIY\HY` [OL-(:)PZZ\LK:-(:5V ¸(JJV\U[PUNMVY*LY[HPU/`IYPK-PUHUJPHS0UZ[Y\TLU[Z·HUHTLUKTLU[VM -(:):[H[LTLU[Z5VHUK¹;OPZ:[H[LTLU[HTVUNV[OLY[OPUNZHSSV^ZHWYLWHYLY[VLSLJ[MHPY]HS\LTLHZ\YLTLU[VM PUZ[Y\TLU[ZPUJHZLZPU^OPJOHKLYP]H[P]L^V\SKV[OLY^PZLOH]L[VILIPM\YJH[LK;OLWYV]PZPVUZVM[OPZ:[H[LTLU[HYLLMMLJ[P]LMVY HSSÄUHUJPHSPUZ[Y\TLU[ZHJX\PYLKVYPZZ\LKPUÄZJHS`LHYZILNPUUPUNHM[LY:LW[LTILY >LKVUV[ILSPL]L[OH[[OLHKVW[PVU VM[OPZ:[H[LTLU[PUÄZJHS ^PSSOH]LHTH[LYPHSPTWHJ[VUV\YJVUZVSPKH[LKÄUHUJPHSWVZP[PVUVYYLZ\S[ZVMVWLYH[PVUZ 0U4HYJO [OL-(:)PZZ\LK:-(:5V ¸(JJV\U[PUNMVY:LY]PJPUNVM-PUHUJPHS(ZZL[ZHUHTLUKTLU[VM-(:):[H[LTLU[ 5V¹;OPZ:[H[LTLU[HTLUKZ:-(:5V¸(JJV\U[PUNMVY;YHUZMLYZHUK:LY]PJPUNVM-PUHUJPHS(ZZL[ZHUK,_[PUN\PZOTLU[Z VM3PHIPSP[PLZ¹^P[OYLZWLJ[[V[OLHJJV\U[PUNMVYZLWHYH[LS`YLJVNUPaLKZLY]PJPUNHZZL[ZHUKZLY]PJPUNSPHIPSP[PLZ;OLWYV]PZPVUZVM [OPZ:[H[LTLU[HYLLMMLJ[P]LMVYHSSÄUHUJPHSPUZ[Y\TLU[ZHJX\PYLKVYPZZ\LKPUÄZJHS`LHYZILNPUUPUNHM[LY:LW[LTILY >L KVUV[ILSPL]L[OH[[OLHKVW[PVUVM[OPZ:[H[LTLU[PUÄZJHS ^PSSOH]LHTH[LYPHSPTWHJ[VUV\YJVUZVSPKH[LKÄUHUJPHSWVZP[PVU VYYLZ\S[ZVMVWLYH[PVUZ 0U1\S` [OL-(:)PZZ\LK0U[LYWYL[H[PVU5V ¸(JJV\U[PUNMVY Golden Star 62 X\PYLZL_WHUKLKKPZJSVZ\YL^P[OYLZWLJ[[V[OL\UJLY[HPU[`PUPUJVTL[H_LZHZZL[ZHUKSPHIPSP[PLZ-05 PZLMMLJ[P]LMVYÄZJHS`LHYZ ILNPUUPUNHM[LY+LJLTILY HUKPZYLX\PYLK[VILYLJVNUPaLKHZHJOHUNLPUHJJV\U[PUNWYPUJPWSL[OYV\NOHJ\T\SH[P]LLMMLJ[ HKQ\Z[TLU[[VYL[HPULKLHYUPUNZHZVM[OLILNPUUPUNVM[OL`LHYVMHKVW[PVU>LHYLJ\YYLU[S`L]HS\H[PUN[OLPTWHJ[VMHKVW[PUN [OLWYV]PZPVUZVM-05 PUÄZJHS 0U:LW[LTILY -(:)PZZ\LK:-(:5V ¸-HPY=HS\L4LHZ\YLTLU[¹KLÄULMHPY]HS\LLZ[HISPZOHMYHTL^VYRMVYTLHZ\YPUN MHPY]HS\LHUK[VL_WHUKKPZJSVZ\YLZHIV\[MHPY]HS\LTLHZ\YLTLU[Z;OLZ[H[LTLU[VUS`HWWSPLZ[VMHPY]HS\LTLHZ\YLTLU[Z[OH[ HYLHSYLHK`YLX\PYLKVYWLYTP[[LK\UKLYJ\YYLU[HJJV\U[PUNZ[HUKHYKZHUKPZLMMLJ[P]LMVYÄZJHS`LHYZILNPUUPUNHM[LY5V]LTILY >LKVUV[L_WLJ[[OLHKVW[PVUVM[OPZ0U[LYWYL[H[PVU[VOH]LHZPNUPÄJHU[LMMLJ[VU[OLJVTWHU`»ZYLZ\S[ZVMVWLYH[PVUZ VYÄUHUJPHSWVZP[PVU 25 QUARTERLY FINANCIAL DATA (UNAUDITED) ($ millions, except per share data) 2006 Quarters ended 2 2005 Quarters ended 1 Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 Sept. 30 Jun 30 Mar . 31 9L]LU\LZ 5L[PUJVTLSVZZ 5L[LHYUPUNZSVZZWLYZOHYL )HZPJ +PS\[LK 8\HY[LYZVUL[^VHUK[OYLLVM OH]LILLUYLZ[H[LKHZPMOLKNLHJJV\U[PUNOHKUV[ILLUHWWSPLK[V,<96»ZNVSKM\[\YLZJVU[YHJ[Z,<96 KPKUV[HWWS`OLKNLHJJV\U[PUN[VX\HY[LYMV\YHUK[O\ZP[PZUV[YLZ[H[LK 9LÅLJ[[OLYLZ[H[LTLU[VMPUWYVJLZZTL[HSZPU]LU[VYPLZMVYX\HY[LYZVUL[^VHUK[OYLL 26 MEASUREMENT UNCERTAINTY ;OLJHYY`PUN]HS\LVM[OLHZZL[ZPUYLZWLJ[VM[OL>HZZHTPUL^HZ TPSSPVUHZH[+LJLTILY ;OL]HS\H[PVUVM[OL>HZZH TPULPZOPNOS`ZLUZP[P]L[VHZZ\TW[PVUZYLNHYKPUN[OLWYPJLVMNVSKHUK[OLU\TILYVMV\UJLZL_WLJ[LK[VILWYVK\JLK(ZH[+LJLTILY [OLPTWHPYTLU[HUHS`ZPZPUJVYWVYH[LK[OLMVSSV^PUNRL`HZZ\TW[PVUZ! 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BOARD OF DIRECTORS Ian MacGregorPZ*OHPYTHUVM[OL)VHYKHUKPZHKPYLJ[VYVMZL]LYHSV[OLYW\ISPJHUKWYP]H[LJVTWHUPLZ/LIYPUNZ[V[OL[HISLOPZ ^PKLYHUNPUNRUV^SLKNLVMTPUPUNÄUHUJLQVPU[]LU[\YLZHUKTLYNLYZHUKHJX\PZP[PVUZL_WLYPLUJLNHPULK^OLUOL^HZHWHY[ULY UV^JV\UZLSVMVULVM*HUHKH»ZWYVTPULU[SH^ÄYTZ-HZRLU4HY[PULH\+\4V\SPU0HU»ZHYLHVMWYHJ[PJLPUJS\KLKNSVIHSTPUPUN (UPUKLWLUKLU[KPYLJ[VYZPUJL Jim AskewPZHULUNPULLY^P[OTHU``LHYZL_WLYPLUJLTHUHNPUNHUKILPUNHKPYLJ[VYVMTPUPUNJVTWHUPLZ/LPZHMVYTLY*,6VM .VSKLU:[HYHUKHSZV.VSKLU:OHTYVJRHU(\Z[YHSPHUTPUPUNJVTWHU`^P[OWYVWLY[PLZPU>LZ[(MYPJH^OPJO^HZZ\IZLX\LU[S`ZVSK [V(ZOHU[P.VSKÄLSKZ(UPUKLWLUKLU[KPYLJ[VYZPUJL Peter Bradford,7YLZPKLU[HUK*,6ZPUJL5V]LTILY PZHZLHZVULKTHUHNLY^P[OPUL_JLZZVM`LHYZVMVWLYH[PUN HUKKL]LSVWTLU[L_WLYPLUJLPU[OLTPUPUNPUK\Z[Y`:PUJL OLOHZILLU]LY`HJ[P]LPU[OL.OHUHPHUTPUPUNPUK\Z[Y`^P[O.VSKLU :OHTYVJR(ZOHU[P.VSKÄLSKZHUKZ\IZLX\LU[S`.VSKLU:[HY0UHKKP[PVUOLOHZJOHPYLK[OL.OHUH*OHTILYVM4PULZ(KPYLJ[VYZPUJL David FaginOHZZLY]LKHZ*OHPYTHUHUK*,6VM[OL*VTWHU`HUKZLY]LZVUV[OLYIVHYKZPU[OLYLZV\YJLPUK\Z[Y`MVSSV^PUNV]LY `LHYZVMTHUHNLTLU[L_WLYPLUJLPUVPSHUKTPUPUN-VYTLYS`7YLZPKLU[VM/VTLZ[HRL4PUPUNHUK9VZHYPV9LZV\YJLZOLWYV]PKLZ OPZPUZPNO[ZPU[VTHUHNLTLU[HUKVWLYH[PUNTH[[LYZ+H]PKPZHSZVHKPYLJ[VYVMZL]LYHST\[\HSM\UKZ(UPUKLWLUKLU[KPYLJ[VYZPUJL Dr. Michael MartineauPZHNLVSVNPZ[^P[O `LHYZL_WLYPLUJLVML_WSVYPUNZ\I:HOHYHU(MYPJH"ZL]LYHSVMOPZJVTWHUPLZKPZJV]LYLK VYLIVKPLZVU[OLJVU[PULU[/LPZJ\YYLU[S`WYLZPKLU[VM(_TPUHNVSKL_WSVYH[PVUJVTWHU`^OVZLYLNPVUHSLTWOHZPZPZ>LZ[(MYPJH 4PJOHLS^HZHKPYLJ[VYVM(ZOHU[P.VSKÄLSKZ\U[PSP[ZTLYNLY^P[O(UNSV.VSK(UPUKLWLUKLU[KPYLJ[VYZPUJL Michael TerrellOHZULHYS` `LHYZL_WLYPLUJLPUTPULYHSL_WSVYH[PVU/L^VYRLKPUL_WSVYH[PVUJHTWZWYPTHYPS`PU[OL9LK3HRL TPUPUNKPZ[YPJ[PU6U[HYPV^OPSLH[[LUKPUNSH^ZJOVVSHUKZ\IZLX\LU[S`WYHJ[PJLKSH^WYPVY[VMV\UKPUN:[1\KL9LZV\YJLZ4PJOHLSHSZV OHZHKP]LYZLIHJRNYV\UKPUIHURPUNJVYWVYH[LÄUHUJLHUKYLHSLZ[H[LKL]LSVWTLU[HUKPZHTLTILYVM[OL3H^:VJPL[`VM(SILY[H (UPUKLWLUKLU[KPYLJ[VYMVSSV^PUN[OLHJX\PZP[PVUVM:[1\KLPUSH[L Lars-Eric JohanssonQVPULK[OL)VHYKPU1\S` OH]PUNWYL]PV\ZS`ZLY]LKHZHIVHYKTLTILYILMVYL[HRPUN\W[OLWVZP[PVUVM *-6^P[O2PUYVZZ.VSK*VYWVYH[PVUPUMYVT^OPJOOLYLJLU[S`YL[PYLK/LIYPUNZV]LY`LHYZVMPU[LYUH[PVUHSTPUPUNHUKÄUHUJL L_WLYPLUJL[V[OL*VTWHU`OH]PUNILLU*-6^P[O2PUYVZZ5VYHUKHHUK-HSJVUIYPKNLTHQVY*HUHKPHUIHZLTL[HSZJVTWHUPLZ/PZ V[OLYKPYLJ[VYZOPWZPUJS\KL(ILY+PHTVUK*VYWVYH[PVU5PVJHU0UJHUK;PILYVU4PULYHSZ3[K3HYZ,YPJOVSKZHU4)(^P[OZWLJPHS[PLZ PUHJJV\U[PUNHUKÄUHUJLMYVT[OL.V[OLUI\YN:JOVVSVM,JVUVTPJZ:^LKLU Golden Star 68 Directors & Management Directors James Askew 2, 4* Ian MacGregor 1, 2, 3, 4 1 audit committee Chairman of the Board of Directors 2 compensation committee Peter Bradford Dr. Michael Martineau 2*, 4 3 nominating & corporate governance committee David Fagin 1, 3* Michael Terrell 3 4 sustainability committee Lars-Eric Johansson 1* * committee chairman Management Peter Bradford Richard Gray David Partridge President and CEO General Manger Wassa General Manager Bogoso/Prestea Tom Mair Bruce Higson-Smith Ted Strickler Senior Vice President and CFO Vice President Corporate Development Vice President Human Resources and Administration Colin Belshaw Dr. Doug Jones Vice President Operations Vice President Exploration Dr. Mark Thorpe Vice President Sustainability Peter Bourke Daniel Owiredu Vice President Technical Services Vice President Ghana Mark Collopy Roger Palmer General Manager Projects Vice President Finance and Controller Corporate Information Stock Exchange Listings Corporate Headquarters Annual Report On Form 10-K ;VYVU[V:[VJR,_JOHUNL Golden Star Resources Shareholders may obtain, without charge, Common stock: GSC 10901 W. Toller Drive, Suite 300 a copy of the Company’s 2006 Annual Littleton, CO 80127 U.S.A. Report on Form 10-K as filed with the (TLYPJHU:[VJR,_JOHUNL Telephone: (303) 830-9000 Securities and Exchange Commission. Common stock: GSS Toll-free: (800) 553-8436 Fax: (303) 830-9094 Requests should be addressed to our Registrar and Transfer Agent Corporate Headquarters. : Somerset Graphics Questions regarding the change of stock Ghana Office Annual Meeting ownership, consolidation of accounts, lost Golden Star Resources The Annual General Meeting of Shareholders Printer JLY[PÄJH[LZJOHUNLVMHKKYLZZHUKV[OLY Level 2, No. 1 Milne Close such matters should be directed to: Airport Residential Area will be held on Wednesday, May 9, 2007, at 3:00 p.m. at the TSX Gallery Facility, *0)*4LSSVU;Y\Z[*VTWHU` P.O. Box 16075 KIA, Accra, Ghana 130 King Street West, Toronto, Ontario, Attention: Shareholder Services M5X 1J2 Canada. P.O. Box 1900 Vancouver, British Columbia Investor Relations Contacts : Philip Mostert Canada V6C 3K9 Bruce Higson-Smith, Online inquiry: V.P. Corporate Development www.cibcmellon.com/investorinquiry Anne Hite, Investor Relations Manager Online access to shareholder data: Email: [email protected] Photography www.cibcmellon.com/AnswerLineRegistration Toll-free: (800) 553-8436 E-mail: [email protected] Website: www.gsr.com Toll-free: (800) 387-0825 (Canada and U.S.—collect elsewhere) Auditors (416) 643-5500 (8:30 a.m. to 6:30 p.m. ET, PricewaterhouseCoopers Monday through Friday) Calgary, Alberta, Canada : Barker Design, Inc. Design (800) 553-8436 www.gsr.com Toronto Stock Exchange: GSC American Stock Exchange: GSS