Golden Star Resources Limited ALTERNATIVE COMMUNITY LIVELIHOOD PROGRAMME INITIATIVE BY GOLDEN STAR RESOURCES (THE GSOPP CASE ) October, 2006 Mary Ankomah Boakye Boateng GOLDEN STAR OIL PALM PLANTATIONS LTD P O Box 16070 Airport Post Office Accra, Ghana Tel – office (site): 233 362 20469 Tel-mobile: 233-244 605880 Fax: 233-21 777 700 Fax: 233 362 20180 Email: maame35@hotmail.com Golden Star Resources Ltd.

Presentation Plan Golden Star Limited Project Location GSR Mines Ltd ALP Initiatives The GSOPP Objectives Achievements to-date Socio Economic Impact The way forward Funding Requirements Golden Star Resources Ltd.

Golden Star Limited Location in Ghana Wassa Mine Bogoso/Prestea Golden Star Resources Ltd. Golden Star Resources Ltd.

Golden Star Limited Overview of Golden Star Resources Limited Canadian international mining company with head office in Denver, Colorado Has 2 operating mines in Ghana: Wasa mine Bogoso/Prestea mines ● Production of 200,000 ounces of gold in 2005 Golden Star Resources Ltd.

CSR Strategy Golden Star Limited GSR has undertaken a lot of projects in and around the communities it operates: Corporate Responsibility: Many projects around the operating mines Health, education, sanitation and water Alternative livelihood projects Golden Star Resources Ltd.

CSR Strategy Golden Star Limited Oil Palm out-grower scheme started in 2003 Initial concept resulted in small positive effects.– concept needed revision. Fish farming Project Started 2003 Initial concept resulted in small positive effects but benefits remain limited Sericulture Project Started 2003 Initial demonstration development indicated that benefits not widespread in the community. Golden Star Resources Ltd.

Golden Star Limited Poultry project started 2005 Limited number of farmers continuing. Other trials – batik-tie & dye, snails, etc… _ Show limited effects throughout the community Lessons: Need a business case with a simple model that leverages the stakeholder’s skills to provide continuing employment and regular income. Golden Star Resources Ltd.

Golden Star Limited Golden Star Oil Palm Plantations Limited (GSOPP) has been established to use the smallholder concept of oil palm development: Traditional authorities provide land and local people are paid for their labour to develop the project. GSOPP provides development capital and operating funds (loans to smallholder farmers) GSOPP provides technical support GSOPP purchases fruit After 3 years, farmers will trained to operate the small plots and will then be beneficiaries of plots (4 ha).   Golden Star Resources Ltd.

Golden Star Limited Oil Palm Development Oil palm grows well in western Ghana Oil palm plantations have been used as the end-land use for closed out tailings disposal facilities. Local large plantations are successful (Unilever in Ghana – 2 plantations (approx. 6,000 ha each). GSR sees oil palm cultivation as a leading sustainable economic venture that will contribute broadly to the local and national economies.  Oil palm development is a familiar business in the Western region of Ghana – the local population is engaged with it daily. Golden Star Resources Ltd.

Golden Star Limited The Objectives of GSOPP are: Oil Palm Development Provide a lasting and positive economic effect as a result of contributions from mining; Poverty reduction through employment generation; Providing an end-land use for tailings disposal facilities that contributes to the local economic for the long term. Golden Star Resources Ltd.

Golden Star Limited Business Summary Project time frame, years 13 Total area planned, hectares 10,000 Small holders to benefit 2,500 Employment benefits 20,000 Expenditure over 13 years, $m 36 Net Present Value from year 9 Positive IRR (%) over 20 years (at15% discount) 28 Golden Star Resources Ltd.

Gross Revenue Distribution Golden Star Limited Gross Revenue Distribution Development cost recovery by GSRL - 10% GSOPP running/admin expenses - 5% Rent to Traditional leaders (Landowners) - 5% Fertilizer/inputs fund - 15% Smallholder Farmers - 65% Golden Star Resources Ltd.

Achievements/Project Status Golden Star Limited Achievements/Project Status Total land pledged, hectares 20,000 Total land leased, hectares 8,500 Land cleared in 2006, hectares 400 Land planted to oil palms, hectares Oil palm seedlings nursery started 200,000 Employees 313 Average daily wage ¢52,000 $5.65 Golden Star Resources Ltd.

Golden Star Limited Way Forward/Vision GSOPP will develop a successful sustainable alternative livelihood project that demonstrates the benefits of partnerships with mining companies. Complete a cost-benefit analysis with a view to installing a palm oil processing plant Evaluate the option to manufacture bio-diesel. Reduce the need for people to work on illegal activities such as Galamsey Golden Star Resources Ltd.

Golden Star Limited Golden Star Oil Palm Plantations Ltd Planting of palms commenced on 6th July 2006. These women form part of over 300 employees engaged in carrying seedlings to the planting points. Golden Star Resources Ltd.

Pre- germinated Palm nut Seeds Golden Star Limited Pre- germinated Palm nut Seeds Golden Star Resources Ltd.

The main Nursery Under Construction Golden Star Limited The main Nursery Under Construction Golden Star Resources Ltd.

Pre nursery - a month old Seedlings Golden Star Limited Pre nursery - a month old Seedlings Golden Star Resources Ltd.

Golden Star Limited Main nursery Golden Star Resources Ltd.

Golden Star Limited Grown Palm Trees Golden Star Resources Ltd.

Golden Star Limited Matured palm trees Fish Farming Sericulture Golden Star Resources Ltd.

Matured Oil Palm Fruits Golden Star Limited Matured Oil Palm Fruits Sericulture Fish Farming Golden Star Resources Ltd.

Golden Star Limited Harvested Palm Fruits Fish Farming Sericulture Golden Star Resources Ltd.

Thanks Golden Star Limited Fish Farming Sericulture Golden Star Resources Ltd.

Golden Star (Bogoso / Prestea) Limited