YAOU

Golden Star Resources has completed the acquisition of a 50% interest in the Yaou and Dorlin gold properties in French Guiana from Cambior, as part of a number of transactions with Cambior on joint ventured properties in the Guyana Shield. The other 50% interest in these properties is held by Golden Star's 73% owned subsidiary, Guyanor Ressources S.A., which gives Golden Star an effective interest in these properties of 87%. In a separate development, Golden Star has made a commitment to Guyanor to participate in a rights issue by Guyanor of up to EUR15 million (USD14 million) by contributing the approximate USD11 million of debt owed by Guyanor to Golden Star into the rights issue. The company noted that the debt for equity swap will have no impact on Golden Star's consolidated balance sheet or statement of operations.

It was reported that planned spending in 1999 will include pre-feasibility work. At the end of the 1st quarter of 1999 the Memoires Techniques studies for Yaou and Dorlin were completed in support of the filing for mining concessions at each project under French Law. Yaou and Dorlin were reported to be not economic currently, given low gold prices and the capital costs associated with the development approach in the Memoires Techniquess.

Studies envisage that Yaou and Dorlin would be simultaneously developed with a 10,000 tonne per day CIP milling operation at Yaou and a 5,000 tonne per day soft rock, heap leach operation at Dorlin. After completion of mining at Yaou, the mill would be relocated to Dorlin where mining and processing of hard rock would continue. At the end of Mar/00 mining concession applications had been submitted.