September 8, 2016 | 14:59 ET | 14:59 ET~

Golden Star Resources

GSC-TSX Rating Price: Sep-7 Target Total Rtn Materials - Metals & Mining GSS-AMEX Market Perform $1.00 $1.25 25% Andrew Breichmanas, P.Eng. Analyst

[email protected] +44 (0)20 7246 5430 Contactor Selected for Prestea Underground Sanam Nourbakhsh* [email protected] +44 (0)20 7664 8091 Legal Entity: BMO Nesbitt Burns Inc. *BMO Capital Markets Limited Bottom Line: Golden Star continues to advance its strategy of transitioning into 2YR Price Volume Chart a high grade, low cost, non-refractory gold producer through appointment of an 1.6 underground mining contractor for its Prestea underground project in Ghana. After 1.4 recently strengthening its balance sheet, the focus is now on delivery of the Wassa and 1.2 1.0 Prestea underground projects. 0.8 4 0.6 3 Key Points 0.4 2 0.2 1 0 0 Golden Star selected a contractor for the Prestea underground with a specialization Mar Sep Mar Sep in Alimak stoping. The project feasibility study was based on conventional shrinkage LHS: Price ($) / RHS: Volume (mm) Source: FactSet mining, but Alimak has been selected as the preferred method due to its safety and Company Data in C$ efficiency benefits. The contractor also brings expertise working in Ghana and with Dividend $0.00 Cash (mm) $19 other gold producers on multiple continents. Development is expected to commence in Q4/16, keeping the company's timeline for commercial production in mid-2017 intact. Yield 0.0% Shares O/S (mm) 328.7 NAV $1.60 Market Cap (mm) $329 The Prestea mine, located 16km south of the company's Bogoso processing plant, BMO Estimates in $ has produced in excess of 9.0Moz over the past century. A new mineral resource was (FY-Dec.) 2015A 2016E 2017E defined in the West Reef, a steeply dipping, narrow vein deposit host to high-grade, free milling gold. The company completed a feasibility study in late-2015 based on a EPS $(0.11) $0.07 $0.19 mineral reserve of 1.04Mt at a diluted mined grade of 14.0g/t for 469,000oz. CFPS $(0.06) $0.07 $0.23 Production (oz) 222,416 207,178 263,700 The feasibility study considers rehabilitating existing mine infrastructure and building a processing plant, for initial capital of $63M, to produce 90,000ozpa at all-in sustaining TCC ($/oz) 1,035 889 773 costs of $615/oz over a four and a half year mine life. The project is expected to yield AISC ($/oz) $1,155 $1,019 $886 an NPV5% of $134M and an IRR of 54% at an $1,150/oz gold price. Consensus Estimates (FY-Dec.) 2015A 2016E 2017E The company recently strengthened its balance sheet, raising $99.5M from the sale of common shares and convertible senior notes due in 2021. A portion of the notes issued EPS $0.04 $0.20 were exchanged for $42.0M of debentures due in 2017. The remaining cash proceeds Valuation were used to repay its medium term loan facility, repurchase additional debentures, (FY-Dec.) 2015A 2016E 2017E and for general corporate purposes. P/E NM 11.2x 4.0x

We view selection of the contractor as an important step for development of Prestea, P/CFPS NM 11.8x 3.5x as achieving budgeted mining costs of $105/t, design production rates, and limiting dilution appear to be critical elements towards realizing targeted economics.

Key Changes

Rating Target Estimates 2016E 2017E Our Thesis Mkt $1.25 EPS $0.07 $0.19 Golden Star is rated Market Perform. The company Previous $0.07 has strengthened its balance sheet while efforts to reposition the business have already resulted in better This report was prepared by an analyst(s) employed by BMO Nesbitt Burns Inc., and who is (are) not registered as a research analyst(s) under FINRA rules. performance while transformational underground For disclosure statements, including the Analyst Certification, please refer to page(s) 6 to 8. projects advance to deliver further improvements.

Golden Star Resources - Block Summary Model

Income Statement 2015A 2016E 2017E Operating Costs 216,440 170,271 188,191 G&A 12,276 12,127 13,341 Valuation

Depreciation 37,339 20,122 22,688 Golden Star shares trade at 0.6x our NPV5% and 3.5x our EBITDA 10,256 68,236 138,839 2017 CFPS estimates versus medium producer peers at 1.8x and 9.6x respectively. Our C$1.25 target price is based on a Tax 0 5,950 9,344 weighted blend of 0.75x NPV5% and 5.0x 2017 CFPS. Adjusted Net Earnings (28,936) 20,212 63,600 Upside Scenario $2.75 EPS $(0.11) $0.07 $0.19 Our upside scenario is based on a weighted blend of 1.5x Cash Flow Statement 2015A 2016E 2017E NPV5% and 10.0x 2017 CFPS, derived from average multiples CFO (14,852) 19,319 74,049 for producer peers. CFI (56,499) (84,977) (22,500) Downside Scenario $0.95 CFF 67,107 84,669 (35,515) Our downside scenario is based on 0.5x NPV5% reflecting Free Cash Flow (71,903) (59,602) 51,549 development risks associated with its two underground FCF/Share $(0.28) $(0.20) $0.16 projects. Balance Sheet 2015A 2016E 2017E Cash & Equivalents 35,108 54,118 70,152 Long-Term Debt 91,899 103,378 96,910 -5% +25% +175% Total Assets 238,982 322,671 336,622

Total Liabilities 370,216 413,600 351,747 Downside Current Target Upside Scenario Price Price Scenario Total Shareholders' Equity (131,234) (90,929) (15,124) $0.95 $1.00 $1.25 $2.75 Production & Cash Costs 2015A 2016E 2017E Gold Production (oz) 222,416 207,178 263,700 Company Description Gold Sales (oz) 221,653 206,173 263,700 Golden Star is an intermediate gold producer with a Total Cash Costs ($/oz) 1,035 889 773 portfolio of operating mines and development projects in Ghana. All-In Sustaining Costs ($/oz) $1,155 $1,019 $886 Realized Gold Price ($/oz) 1,151 1,221 1,250 Commodity Price Assumptions 2015A 2016E 2017E Gold Price ($/oz) 1,160 1,292 1,350 Silver Price ($/oz) 15.71 17.78 20.88 Copper Price ($/lb) 2.50 2.12 2.10 Source: BMO Capital Markets, Company Reports

GSC-TSX Industry Company Research Research Models

Golden Star Resources | Page 2 September 8, 2016

Exhibit 1: Golden Star Resources Forecast Summary, BMO Research Commodity Prices C$6.00 3.0x 1.00 100%

C$5.00 2.5x 0.80 80% C$4.00 2.0x 10% 0.60 60% C$3.00 1.5x 0.40 40%

SharePrice C$2.00 1.0x Spot P/NPV

MetalRevenue (US$B) 0.20 20% C$1.00 0.5x Goldin Revenue Mix (%)

C$0.00 0.0x 0.00 0%

2008 2016 2007 2009 2010 2011 2012 2013 2014 2015

2018 2011 2012 2013 2014 2015 2016 2017 2019 2020 2021 2022

Share Price Spot P/NPV Gold Revenue % Gold

0.70 2,000 2,000 0.60 1,750 1,750 0.50 1,500 1,500 0.40 1,250 1,250 0.30 1,000 1,000

0.20 750 750

GoldProduction (Moz) GoldPrice (US$/oz)

0.10 ProductCosts (US$/oz) 500 500 -

0.00 By 250 250

0 0

2016 2011 2012 2013 2014 2015 2017 2018 2019 2020 2021 2022

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Bogoso Refractory Bogoso Non-Refractory Wassa Open Pit 2011 Wassa Underground Prestea Underground Cash Cost G&A Exploration Sustaining Growth Interest Tax

0.25 0.50

0.20 0.40 11% 24% 0.15 0.30

0.10 0.20 7%

0.05 0.10

CumulativeCapital (US$B) Capital Capital Expenditures(US$B)

58% 0.00 0.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Capex Cumulative Capex BMO Research @ NPV5% 0.20 0.20 0.20 0.20 0.15 0.15 0.15 0.15 0.10 0.10 0.10 0.10 0.05 0.05 0.05 0.05 0.00 0.00 0.00 0.00

-0.05 -0.05 -0.05 -0.05 Net Cash(US$B)

-0.10 -0.10 Cash/(Debt)(US$B) -0.10 -0.10 FreeCash Flow (US$B) -0.15 -0.15 -0.15 -0.15

Cash Flow fromOperations (US$B) -0.20 -0.20 -0.20 -0.20

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

CF from Ops FCF after Sustaining FCF after Growth Cash Debt Net Cash

Source: BMO Capital Markets

Golden Star Resources | Page 3 September 8, 2016

Exhibit 2: Golden Star Resources Operational Summary, BMO Research Commodity Prices

Golden Star Resources

WASSA OPEN PIT, Ghana Q1/16A Q2/16A Q3/16E Q4/16E Q1/17E Q2/17E Q3/17E Q4/17E 2013A 2014A 2015A 2016E 2017E 2018E Ore Mined (kt) 609.5 651.0 608.1 558.1 496.0 501.5 482.0 482.0 2,053.3 2,656.1 2,848.2 2,426.8 1,961.6 1,834.6 Waste Mined (kt) 2,406.2 2,406.2 2,432.6 2,232.6 1,984.0 2,006.1 1,928.1 1,928.1 13,258.8 12,398.6 10,632.5 9,477.6 7,846.4 7,338.3 Ore Processed (kt) 640.9 573.8 630.5 580.5 515.8 523.2 505.5 505.5 2,695.3 2,629.0 2,495.2 2,425.8 2,050.0 1,922.9 Grade (g/t) 1.64 1.16 1.40 1.40 1.38 1.38 1.38 1.38 2.29 1.41 1.46 1.41 1.38 1.38 Recovery (%) 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 92% 94% 94% 94% Production (koz) 31.3 21.5 26.7 24.6 21.6 21.9 21.1 21.1 185.8 112.8 108.3 104.1 85.7 80.2 Sales (koz) 30.9 21.1 26.7 24.6 21.6 21.9 21.1 21.1 185.8 112.8 107.8 103.3 85.7 80.2 Operating Cash Cost (US$/oz) 706 975 832 832 842 842 846 846 805 971 838 823 844 846 Total Cash Cost (US$/oz) 766 1,039 899 901 912 909 912 913 876 1,034 896 888 911 909 All-In Sustaining Cost (US$/oz) 793 1,139 956 962 981 977 983 984 955 1,075 956 946 981 1,096 All-in Cost (US$/oz) 842 1,277 1,049 1,063 981 977 983 984 1,057 1,180 1,024 1,037 981 1,096 Capital Expenditures (US$M) 2.3 5.0 4.0 4.0 1.5 1.5 1.5 1.5 33.6 16.4 13.8 15.4 6.0 15.0

WASSA UNDERGROUND, Ghana Q1/16A Q2/16A Q3/16E Q4/16E Q1/17E Q2/17E Q3/17E Q4/17E 2013A 2014A 2015A 2016E 2017E 2018E Ore Mined (kt) 0.0 0.0 50.0 100.0 150.0 150.0 175.0 175.0 0.0 0.0 0.0 150.0 650.0 777.1 Waste Mined (kt) 0.0 0.0 50.0 100.0 100.0 100.0 125.0 125.0 0.0 0.0 0.0 150.0 450.0 500.0 Ore Processed (kt) 0.0 0.0 50.0 100.0 150.0 150.0 175.0 175.0 0.0 0.0 0.0 150.0 650.0 777.1 Grade (g/t) 0.00 0.00 4.28 4.28 4.28 4.28 4.28 4.28 0.00 0.00 0.00 4.28 4.28 4.28 Recovery (%) 0% 0% 93% 93% 93% 93% 93% 93% 0% 0% 0% 93% 93% 93% Production (koz) 0.0 0.0 6.4 12.8 19.2 19.2 22.4 22.4 0.0 0.0 0.0 19.2 83.2 99.5 Sales (koz) 0.0 0.0 6.4 12.8 19.2 19.2 22.4 22.4 0.0 0.0 0.0 19.2 83.2 99.5 Operating Cash Cost (US$/oz) 0 0 820 820 716 716 731 731 0 0 0 820 724 709 Total Cash Cost (US$/oz) 0 0 861 862 758 756 771 772 0 0 0 861 765 746 All-In Sustaining Cost (US$/oz) 0 0 861 862 823 821 827 827 0 0 0 861 825 847 All-in Cost (US$/oz) 0 0 2,033 1,252 888 886 882 883 0 0 0 2,273 885 847 Capital Expenditures (US$M) 6.2 8.4 7.5 5.0 2.5 2.5 2.5 2.5 0.0 0.0 20.1 27.1 10.0 10.0

BOGOSO, Ghana Q1/16A Q2/16A Q3/16E Q4/16E Q1/17E Q2/17E Q3/17E Q4/17E 2013A 2014A 2015A 2016E 2017E 2018E Ore Mined Refractory (kt) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1,755.0 2,690.8 1,230.3 0.0 0.0 0.0 Ore Processed Refractory (kt) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2,352.3 2,542.3 1,520.5 0.0 0.0 0.0 Grade Refractory (g/t) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2.14 2.30 2.14 0.00 0.00 0.00 Recovery Refractory (%) 0% 0% 0% 0% 0% 0% 0% 0% 74% 69% 73% 0% 0% 0% Production Refractory (koz) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 119.9 130.2 77.0 0.0 0.0 0.0 Sales Refractory (koz) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 119.9 130.2 77.0 0.0 0.0 0.0

Ore Mined Non-Refractory (kt) 383.2 306.2 400.0 400.0 391.3 395.7 223.7 0.0 391.3 0.0 480.6 1,489.3 1,010.7 0.0 Waste Mined (kt) 1,145.3 1,067.2 1,200.0 1,200.0 1,173.9 1,187.0 671.1 0.0 23,409.1 12,169.1 2,993.7 4,612.5 3,032.0 0.0 Ore Processed Non-Refractory (kt) 362.3 377.6 400.0 400.0 391.3 395.7 223.7 0.0 1,191.0 1,382.2 1,409.1 1,539.9 1,010.7 0.0 Grade Non-Refractory (g/t) 2.21 1.95 1.75 2.00 2.49 2.49 2.49 0.00 1.39 0.95 1.32 1.97 2.49 0.00 Recovery Non-Refractory (%) 84% 59% 85% 85% 85% 85% 85% 0% 47% 42% 62% 86% 85% 0% Production Non-Refractory (koz) 21.9 20.9 19.1 21.9 26.6 26.9 15.2 0.0 25.1 17.7 37.2 83.9 68.7 0.0 Sales Non-Refractory (koz) 21.8 20.9 19.1 21.9 26.6 26.9 15.2 0.0 25.1 17.7 36.9 83.7 68.7 0.0

Sales Total (koz) 21.8 20.9 19.1 21.9 26.6 26.9 15.2 0.0 145.0 148.0 113.9 83.7 68.7 0.0 Operating Cash Cost (US$/oz) 742 943 880 767 618 629 629 0 1,374 1,180 1,108 830 625 0 Total Cash Cost (US$/oz) 802 1,006 947 836 688 695 695 0 1,445 1,243 1,166 895 692 0 All-In Sustaining Cost (US$/oz) 857 1,097 986 870 716 723 695 0 1,608 1,253 1,195 950 714 0 All-in Cost (US$/oz) 857 1,097 986 870 716 723 695 0 1,923 1,305 1,219 950 714 0 Capital Expenditures (US$M) 1.2 1.9 0.8 0.8 0.8 0.8 0.0 0.0 69.3 9.0 6.0 4.6 1.5 0.0

PRESTEA, Ghana Q1/16A Q2/16A Q3/16E Q4/16E Q1/17E Q2/17E Q3/17E Q4/17E 2013A 2014A 2015A 2016E 2017E 2018E Ore Mined (kt) 0.0 0.0 0.0 0.0 2.0 10.0 20.0 30.0 0.0 0.0 0.0 0.0 62.0 182.5 Waste Mined (kt) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Ore Processed (kt) 0.0 0.0 0.0 0.0 2.0 10.0 20.0 30.0 0.0 0.0 0.0 0.0 62.0 182.5 Grade (g/t) 0.00 0.00 0.00 0.00 13.82 13.82 13.82 13.82 0.00 0.00 0.00 0.00 13.82 13.82 Recovery (%) 0% 0% 0% 0% 90% 95% 95% 95% 0% 0% 0% 0% 95% 95% Production (koz) 0.0 0.0 0.0 0.0 0.8 4.2 8.4 12.7 0.0 0.0 0.0 0.0 26.1 77.4 Sales (koz) 0.0 0.0 0.0 0.0 0.8 4.2 8.4 12.7 0.0 0.0 0.0 0.0 26.1 77.4 Operating Cash Cost (US$/oz) 0 0 0 0 513 488 488 484 0 0 0 0 487 483 Total Cash Cost (US$/oz) 0 0 0 0 583 554 554 552 0 0 0 0 554 546 All-In Sustaining Cost (US$/oz) 0 0 0 0 1,833 792 673 630 0 0 0 0 707 598 All-in Cost (US$/oz) 0 0 0 0 2,145 852 703 650 0 0 0 0 746 610 Capital Expenditures (US$M) 6.2 7.7 9.0 9.0 1.3 1.3 1.3 1.3 0.0 8.2 17.1 31.9 5.0 5.0

TOTAL Q1/16A Q2/16A Q3/16E Q4/16E Q1/17E Q2/17E Q3/17E Q4/17E 2013A 2014A 2015A 2016E 2017E 2018E Ore Processed (kt) 1,003 951 1,081 1,081 1,059 1,079 924 711 6,239 6,554 5,425 4,116 3,773 2,883 Grade (g/t) 1.85 1.47 1.66 1.89 2.22 2.30 2.46 2.62 2.06 1.66 1.62 1.72 2.38 2.95 Production (koz) 53.2 42.5 52.2 59.3 68.2 72.2 67.1 56.2 330.8 260.8 222.4 207.178 263.7 257.1 Sales (koz) 52.7 42.0 52.2 59.3 68.2 72.2 67.1 56.2 330.8 260.8 221.7 206.2 263.7 257.1 Operating Cash Cost (US$/oz) 721 959 848 805 715 709 714 718 1,049 1,090 976 826 714 684 Total Cash Cost (US$/oz) 781 1,023 912 868 777 768 771 775 1,119 1,153 1,035 889 773 737 All-In Sustaining Cost (US$/oz) 963 1,185 1,013 957 894 881 878 892 1,326 1,252 1,155 1,019 886 900 All-In Cost (US$/oz) 1,227 1,638 1,377 1,235 916 902 900 919 1,521 1,304 1,368 1,351 909 904 Capital Expenditures (US$M) 15.9 23.0 21.3 18.8 6.0 6.0 5.3 5.3 102.9 33.7 57.1 78.9 22.5 30.0

Source: BMO Capital Markets

Golden Star Resources | Page 4 September 8, 2016

Exhibit 3: Golden Star Resources Financial Summary, BMO Research Commodity Prices

Golden Star Resources GSC CASH FLOW ANALYSIS - US$M (December Year End) 2014A 2015A 2016E 2017E 2018E

Recommendation Mkt Analyst AB Cash Flows From Operating Activities Net Income (83.4) (78.4) (6.5) 75.8 57.1 As at 8/24/2016 BMO Capital Markets Non-Cash Items 86.5 56.8 21.5 (3.7) 0.3 Re-invested in Working Capital (0.7) 6.7 4.3 1.9 1.9 Year End December Share Price $1.00 C$/share $0.76 US$/share Cash Flows From Investing Activities Property and Business Activities (25.7) (57.1) (78.9) (22.5) (30.0) Target Price $1.25 C$/share $0.97 US$/share Acq.of Property, Plant and Equip. (8.0) 0.0 0.0 0.0 0.0 Net Present Value 5% $1.60 C$/share $1.24 US$/share Other (2.9) 0.6 (6.1) 0.0 0.0 0% $2.19 C$/share $1.70 US$/share Cash Flows From Financing Activities Market Cap 328.7 C$M 249.8 US$M Proceeds From Borrowings 10.1 40.7 65.0 0.0 0.0 Ordinary Shares 328.7 M Repayment of Borrowings (12.0) (48.6) (59.5) (35.5) (6.5) Options & Warrants 5.0 M Other 9.9 75.0 79.1 0.0 0.0

Net Increase In Cash Held (26.2) (4.2) 19.0 16.0 22.8 Cash At Beginning of Year 65.6 39.4 35.1 54.1 70.2 PRICE ASSUMPTIONS - BMO PRICES Cash At End of Year 39.4 35.1 54.1 70.2 93.0 (December Year End) 2014A 2015A 2016E 2017E 2018E

Exchange Rate ZAR/US$ 10.83 12.76 15.58 14.59 14.50 Exchange Rate C$/US$ 0.91 0.78 0.77 0.78 0.79 BALANCE SHEET ANALYSIS - US$M Gold US$/oz 1,267 1,160 1,292 1,350 1,250 (December Year End) 2014A 2015A 2016E 2017E 2018E Silver US$/oz 19.11 15.71 17.78 20.88 19.00 Copper US$/lb 3.12 2.50 2.12 2.10 2.15 Current Assets Zinc US$/lb 0.98 0.88 0.88 0.95 0.95 Cash and Cash Equivalents 39.4 35.1 54.1 70.2 93.0 Oil US$/bbl 93.66 52.12 45.37 53.00 61.00 Other 73.9 47.6 53.5 51.6 49.8

Non-Current Assets Investments 0.0 0.0 0.0 0.0 0.0 FINANCIAL SUMMARY Fixed Assets 142.8 149.8 208.5 208.4 211.1 (December Year End) 2014A 2015A 2016E 2017E 2018E Other 2.0 6.5 6.5 6.5 6.5

NPAT (pre-Abs) (US$M) (12.2) (28.9) 20.2 63.6 47.1 Current Liabilities EPS (US$/share) (0.05) (0.11) 0.07 0.19 0.14 Borrowings 17.2 22.4 35.5 6.5 23.2 PER (x) na na 11.0x 3.9x 5.3x Creditors 123.5 110.8 87.1 87.1 87.1 EBITDA (US$M) 11.4 10.3 68.2 138.8 119.0 Other 4.6 15.2 36.1 36.8 35.8 EBITDA/share (US$/share) 0.04 0.04 0.23 0.42 0.36 EV/EBITDA (x) 32.6x 40.1x 6.0x 2.6x 2.8x Non-Current Liabilities Cash Gen (US$M) 2.4 (14.9) 19.3 74.0 59.3 Borrowings 85.8 91.9 103.4 96.9 73.7 Cash Gen/share (US$/share) 0.01 (0.06) 0.07 0.23 0.18 Other 81.3 129.9 151.5 124.5 98.5 P/Cash Gen (x) na na 11.5x 3.4x 4.2x Dividend (US$/share) 0.00 0.00 0.00 0.00 0.00 Shareholders Funds (54.2) (131.2) (90.9) (15.1) 42.0 Ordinary Shares (M) 259.4 259.6 291.9 328.7 328.7 Net Debt to Equity -117.4% -60.4% -93.2% -219.7% 9.3%

PROFIT AND LOSS STATEMENT - US$M PROJECT GOLD PRODUCTION (koz) (December Year End) 2014A 2015A 2016E 2017E 2018E 0% 5%Nom 2014A 2015A 2016E 2017E 2018E NPV NPV Sales Revenue 328.9 255.2 264.5 355.9 321.4 US$M US$M Other Revenue (1.1) (8.2) (3.2) (1.2) (1.5) WASSA OPEN PIT 100.5 85.9 112.8 108.3 104.1 85.7 80.2 Operating Costs 284.2 216.4 170.3 188.2 175.8 WASSA UNDERGROUND 637.1 452.2 0.0 0.0 19.2 83.2 99.5 Interest 7.6 10.7 9.0 5.8 3.0 BOGOSO 58.5 57.0 148.0 114.2 83.9 68.7 0.0 Depreciation 26.2 37.3 20.1 22.7 27.3 PRESTEA 231.5 188.0 0.0 0.0 0.0 26.1 77.4 Royalties 16.5 12.9 12.9 15.6 13.6 Total Production 260.8 222.4 207.2 263.7 257.1 Exploration 0.6 1.3 1.0 0.0 0.0 Total Sales 260.8 221.7 206.2 263.7 257.1 Other Costs 15.4 4.9 18.7 37.4 37.0 Operating Profit Before Tax (22.6) (36.6) 29.4 85.1 63.2 Income Tax (0.3) 0.0 6.0 9.3 6.1 Hedge Book (234.1) (189.0) 0.3 Moz Hedged Operating Profit After Tax (22.3) (36.6) 23.4 75.8 57.1 Corporate (125.5) (99.1) Minorities (10.1) (7.7) 3.2 12.2 10.1 Net Cash (57.0) (57.0) Net Profit After Tax (12.2) (28.9) 20.2 63.6 47.1 Equity Investments 0.0 0.0 Abnormals (60.8) (38.7) (30.0) 0.0 0.0 Options & Warrants 33.8 33.8 Tax on Abnormals 0.0 0.0 0.0 0.0 0.0 Total NPV 644.8 471.7 Reported Profit (73.1) (67.7) (9.7) 63.6 47.1 Per Share $1.70 $1.24

RESERVES/RESOURCES Ounces Mine Life EV/oz DIVISIONAL EBIT - US$M 2014A 2015A 2016E 2017E 2018E Golden Star Resources (Millions) (Years) (US$/oz) Owned Published Reserves 2.0 10.2 151 WASSA OPEN PIT 90.0% 20.9 21.0 35.7 39.5 29.3 Published Resources 6.1 30.4 51 WASSA UNDERGROUND 90.0% 0.0 0.0 9.7 48.6 50.1 Guesstimate 2.6 13.3 116 BOGOSO 90.0% 16.4 (2.6) 63.5 90.9 0.0 PRESTEA 90.0% 0.0 0.0 0.0 20.5 54.5

Golden Star Resources 2014A 2015A 2016E 2017E 2018E Operating Cash Cost US$/oz 1,090 976 826 714 684 Total Cash Costs US$/oz 1,153 1,035 889 773 737 Project EBIT 37.4 18.4 108.9 199.5 133.9 All-In Sustaining Cost US$/oz 1,252 1,155 1,019 886 900 EBIT to Total Assets -5.8% -10.8% 11.9% 27.0% 18.4% Gold Price Received US$/oz 1,261 1,151 1,221 1,250 1,145 NPAT to Shareholders Equity 134.8% 51.6% 10.7% -420.5% 112.1%

Source: BMO Capital Markets

Golden Star Resources | Page 5 September 8, 2016 Golden￿Star￿Resources￿Rating￿History￿as￿of￿09/07/2016 Und:NA Und:C$0.25 Mkt:C$0.35 Mkt:C$0.3 Mkt:C$0.5 Mkt:C$0.75 Mkt:C$1.25 05/07/15 08/17/15 10/30/15 01/14/16 02/25/16 03/14/16 05/11/16 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 Oct￿2013 Jan￿2014 Apr￿2014 Jul￿2014 Oct￿2014 Jan￿2015 Apr￿2015 Jul￿2015 Oct￿2015 Jan￿2016 Apr￿2016 Jul￿2016

Closing￿Price Target￿Price

Outperform￿(OP);￿Market￿Perform￿(Mkt);￿Underperform￿(Und);￿Speculative￿(S);￿Not￿Rated￿(NR);￿Restricted￿(R)

Source:￿FactSet,￿BMO￿Capital￿Markets

IMPORTANT DISCLOSURES Analyst's Certification I, Andrew Breichmanas, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients. Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA (exception: Brodie Woods). These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Company Specific Disclosures Disclosure 1: BMO Capital Markets has undertaken an underwriting liability with respect to Golden Star Resources within the past 12 months. Disclosure 2: BMO Capital Markets has provided investment banking services with respect to Golden Star Resources within the past 12 months. Disclosure 3: BMO Capital Markets has managed or co-managed a public offering of securities with respect to Golden Star Resources within the past 12 months. Disclosure 4: BMO Capital Markets or an affiliate has received compensation for investment banking services from Golden Star Resources within the past 12 months. Disclosure 6A: Golden Star Resources is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: A) Investment Banking Services

Methodology and Risks to Price Target/Valuation for Golden Star Resources (GSC-TSX) Methodology: Target prices for senior and intermediate gold producers covered by BMO Research are based on a weighted blend of P/NPV adjusted for market capitalization and EV/EBITDA adjusted for growth. Risks: Risks to the BMO Research target price include commodity/currency, technical/operating, and litigation/political risks inherent to mining operations; as well as feasibility, permitting and financing risks related to development of growth projects as detailed more completely in the company-specific risk disclosures.

Distribution of Ratings (September 07, 2016)

Rating category BMOCM US BMOCM US IB BMOCM US IB BMOCM BMOCM IB StarMine BMO rating Universe* Clients** Clients*** Universe**** Clients***** Universe Buy Outperform 40.3% 20.1% 54.9% 41.4% 52.9% 54.7% Hold Market Perform 55.9% 10.9% 41.5% 55.0% 44.8% 39.8% Sell Underperform 3.8% 14.3% 3.7% 3.4% 1.8% 5.5%

Golden Star Resources | Page 6 September 8, 2016 * Reflects rating distribution of all companies covered by BMO Capital Markets Corp. equity research analysts. ** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage within ratings category. *** Reflects rating distribution of all companies from which BMO Capital Markets Corp. has received compensation for Investment Banking services as percentage of Investment Banking clients. **** Reflects rating distribution of all companies covered by BMO Capital Markets equity research analysts. ***** Reflects rating distribution of all companies from which BMO Capital Markets has received compensation for Investment Banking services as percentage of Investment Banking clients. Ratings and Sector Key (as of April 5, 2013) We use the following ratings system definitions: OP = Outperform - Forecast to outperform the analyst’s coverage universe on a total return basis; Mkt = Market Perform - Forecast to perform roughly in line with the analyst’s coverage universe on a total return basis; Und = Underperform - Forecast to underperform the analyst’s coverage universe on a total return basis; (S) = Speculative investment; NR = No rating at this time; and R = Restricted – Dissemination of research is currently restricted. BMO Capital Markets' seven Top 15 lists guide investors to our best ideas according to different objectives (CDN Large Cap, CDN Small Cap, US Large Cap, US Small Cap, Income, CDN Quant, and US Quant have replaced the Top Pick rating). Prior BMO Capital Markets Rating System (January 4, 2010 – April 5, 2013) http://researchglobal.bmocapitalmarkets.com/documents/2013/prior_rating_system.pdf

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A member of Golden Star Resources | Page 8 September 8, 2016