Golden Star Completes Amendments and Upsizing of Senior Secured Credit Facility

Golden Star Resources Ltd. (NYSE American: GSS) (TSX: GSC) (GSE: GSR) ("Golden Star" or the "Company") is pleased to announce the amending and upsizing of the senior secured credit facility ("the Credit Facility" or "the Facility") with Macquarie Bank Limited entered into by the Company on October 17, 2019. All monetary amounts refer to United States dollars.

Highlights

Credit Facility extended to $70 million, representing a $20 million increase on the $50 million outstanding balance on the Facility

Amortization profile rescheduled with the $5 million quarterly principal repayments deferred to commence in September 2021

Upsizing of the facility and deferral of the amortization schedule create $35 million of additional liquidity ahead of the maturity of the convertible debentures in August 2021

Interest charge remains unchanged at LIBOR plus 4.5%

As part of the amendment of the Facility, Golden Star has entered into zero cost collars for a total of 87,500 ounces over 2021 and 2022 with a floor price of $1,600 per ounce and an average ceiling of price of $2,182 per ounce

Andrew Wray, President and Chief Executive Officer of Golden Star, commented:

"The amendments to the Credit Facility and the recently announced completion of the sale of the Bogoso-Prestea operation combine to further strengthen our balance sheet. The restructuring of the Credit Facility creates $35 million of incremental liquidity which, combined with the $15 million of proceeds from the sale of the Bogoso-Prestea operations due to be received by July 2021, results in $50 million of additional liquidity. Should it be required, this provides us with the solution to satisfy the repayment of the convertible debentures on maturity in August next year. In turn, our current cash position and ongoing cash flow generation from Wassa enable us to focus on stepping up our investment in drilling and development at Wassa together with a broader exploration program on a number of targets on the highly prospective Ashanti belt.

The extension of the gold price protection program to the end of 2022 secures an attractive floor and ceiling price for the period, further de-risking the Company's ability to deliver on its financial obligations while also looking to explore the options to capitalize on the large resource and latent mill capacity at Wassa."

Upsized Credit Facility - $70 million

The Credit facility has been upsized to $70 million, allowing the Company to re-draw the two $5 million repayments that were made in June and September 2020 and an additional $10 million of new capacity which will be made available in conjunction with the redemption of the convertible debentures maturing in August 2021.

Rescheduled principal repayment profile

The Credit Facility has been amortising at a rate of $5 million per quarter with two principal repayments having been made so far in 2020. The restructuring of the Facility includes a rescheduled amortization profile which defers the next quarterly repayment to September 2021. These quarterly repayments will then continue to December 2023 when the remaining balance of the Facility will be settled by a $25 million bullet payment.

Hedging

As a condition of amending the Credit Facility, the Company has extended its gold price protection hedging program into 2021 and 2022 by entering into zero cost collars with Macquarie Bank Limited on a total of an additional 87,500 ounces with a floor price of $1,600 per ounce and a ceiling of $2,176 per ounce in 2021 and $2,188 per ounce in 2022. These additional positions will mature at a rate of 10,937.5 ounces per quarter from January 2021 to December 2022.

Together with the existing zero cost collar structures, the Company currently has gold price protection in place for 100,100 ounces at an average floor price of $1,587 per ounce and an average ceiling price of $2,158 per ounce.

Company Profile:

Golden Star is an established gold mining company that owns and operates the Wassa underground mine in Ghana, West Africa.  Listed on the NYSE American, the Toronto Stock Exchange and the Ghanaian Stock Exchange, Golden Star is focused on delivering strong margins and free cash flow from the Wassa mine.  As the winner of the Prospectors & Developers Association of Canada 2018 Environmental and Social Responsibility Award, Golden Star remains committed to leaving a positive and sustainable legacy in its areas of operation.