Golden Star Update of the Paul Isnard Exploration Concession and Associated Mineral Concessions in French Guianaadmin
Golden Star Resources Ltd. wishes to clarify a number of points made by the EURO Ressources S.A. in its press release of September 11, 2008 regarding the Paul Isnard Permis Exclusif de Recherches and the adjacent eight mineral concessions (collectively, the “Paul Isnard Properties”).
Golden Star has noted the disclosure made by EURO in its September 11, 2008 press release regarding EURO completing the necessary filings required for the renewal of the PER for a three-year period expiring November 2010. However, Golden Star has pointed out to EURO that certain statements in the press release could create confusion regarding the ownership of the PER. As the result of agreements made between the two companies, exploration expenditures incurred and work performed by Golden Star, the PER and eight adjoining mineral concessions are the property of Golden Star. Accordingly, it is Golden Star’s position that the Paul Isnard properties are being held in trust for Golden Star by EURO pending their formal transfer to Golden Star.
Since 2004, when the Option Agreement (regarding the Paul Isnard Properties) between EURO and Golden Star was signed, Golden Star has invested approximately $4.3 million in the Paul Isnard Properties, of which approximately $1.2 million was invested in 2008. Further, Golden Star has taken the actions required on its part to have the PER renewed through 2010, including providing a guarantee of EUR600,000 of financial commitments to the advancement of the PER over the next three years.
Golden Star holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America. Golden Star has approximately 236 million shares outstanding.