GOLDEN STAR RESOURCES LTD
EX-10.1
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<DESCRIPTION>EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Execution Copy</font></b></p>

<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Letterhead of
Golden Star Resources Ltd.]</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September&nbsp;27,
2005</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">St. Jude
Resources Ltd.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Suite&nbsp;200,
5405 - 48th Ave</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Delta, British
Columbia, Canada</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">V4K 1W6</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax: 1 604 940
6566</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Mr.&nbsp;Michael
Terrell, President&nbsp;&amp; C.E.O.</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Sirs:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" valign="bottom" style="padding:0in 0in 0in 0in;width:4.84%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RE:</font></b></p>
  </td>
  <td width="95%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:95.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Proposed Business
  Combination between Golden Star Resources Ltd. and St. Jude Resources Ltd.</font></b></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 24.0pt;text-indent:-24.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This letter agreement (the &#147;<b><font style="font-weight:bold;">Agreement</font></b>&#148;)
sets forth the terms and conditions under which Golden Star Resources Ltd. (&#147;<b><font style="font-weight:bold;">Golden Star</font></b>&#148;) and St. Jude Resources Ltd. (&#147;<b><font style="font-weight:bold;">St. Jude</font></b>&#148;) will complete a business combination (the &#147;<b><font style="font-weight:bold;">Business Combination</font></b>&#148;) whereby Golden Star will acquire 100%
of the issued and outstanding common shares of St. Jude (&#147;<b><font style="font-weight:bold;">St. Jude Common Shares</font></b>&#148;) and other
securities of St. Jude, subject to the terms and conditions herein contained.
For the purpose hereof, St. Jude and Golden Star are collectively referred to
as the &#147;<b><font style="font-weight:bold;">Parties</font></b>&#148; and individually
as a &#147;<b><font style="font-weight:bold;">Party</font></b>&#148; and &#147;</font><b><font style="font-weight:bold;">Material
Adverse Effect</font></b>&#148; means, in respect of a Party, any change, effect, event or occurrence
which is reasonably expected to have a material adverse effect on the business,
affairs, properties, assets, liabilities, capitalization, results of
operations, operations, prospects or condition (financial or otherwise) of the
Party and its subsidiaries (individually a &#147;<b><font style="font-weight:bold;">Subsidiary</font></b>&#148; and collectively, the &#147;<b><font style="font-weight:bold;">Subsidiaries</font></b>&#148;) taken as a whole, other than
any change, effect, event or occurrence relating to: (i)&nbsp;the global
economy or securities markets in general; (ii)&nbsp;the price of gold; (iii)&nbsp;the
rate at which Canadian dollars or United States dollars can be changed for any
foreign currency; (iv)&nbsp;the gold mining industry in general and not
specifically relating to or affecting such Party; (v)&nbsp;the general
political and business climate related to carrying on business in Ghana; and (vi)&nbsp;any
change in the trading price of the securities of a Party immediately following
and reasonably attributable to the disclosure of the Business Combination.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>THE BUSINESS COMBINATION</b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Basis of the Business Combination</b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties
intend to proceed with a court sanctioned plan of arrangement of St. Jude
effected pursuant to the <i><font style="font-style:italic;">Canada Business
Corporations Act</font></i> whereby Golden Star will directly or indirectly
acquire all of the issued and outstanding St. Jude Common Shares (and other
securities of St. Jude) following which St. Jude will become a direct or
indirect wholly-owned subsidiary of Golden Star. Notwithstanding the foregoing,
the ultimate form of Business Combination will be mutually determined by Golden
Star and St. Jude, each acting reasonably, based on tax, securities and
corporate law and other considerations. The Parties intend that the Business
Combination will be completed by December&nbsp;16, 2005 (the &#147;<b><font style="font-weight:bold;">Effective Date</font></b>&#148;). Subject to the terms and
conditions of this Agreement, the Parties shall complete the Business
Combination on the following terms: (a)&nbsp;the holders of St. Jude Common
Shares will exchange their St. Jude Common Shares for common shares of Golden
Star (the &#147;<b><font style="font-weight:bold;">Golden Star Common Shares</font></b>&#148;)
on the basis of 0.72 Golden Star Common Shares for each one St. Jude Common
Share; and (b)&nbsp;the outstanding warrants and options of St. Jude (the &#147;<b><font style="font-weight:bold;">St. Jude Convertible Securities</font></b>&#148;)<b><font style="font-weight:bold;"> </font></b>shall be exchanged for Golden Star
warrants or options, such that each holder will be entitled to receive</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">on the exercise thereof that number of Golden Star
Common Shares that is equal to (w) the number of St. Jude Common Shares that
would otherwise have been issuable upon the exercise thereof multiplied by (x)
0.72, with the exercise price thereof being adjusted to be the number that is
equal to (y) the exercise price of the applicable St. Jude Convertible Security
divided by (z) 0.72, provided that such options and warrants shall not expire
prior to the date on which the respective St. Jude Convertible Securities were
to expire pursuant to their respective terms or, in the event of St. Jude
options that </font>would
otherwise expire on the completion of the Business Combination as a result of a
holder thereof ceasing to be an employee, officer or director concurrent with
the completion of the Business Combination, subject to
receipt of any necessary regulatory approvals and provided that no majority of
the minority St. Jude securityholder approval is required, the expiry date of
such options will be extended to the date that is 90 days after the date of
completion of the Business Combination.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.2</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Structure Subsequent to the
Business Combination</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In conjunction
with the completion of the Business Combination:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
number of directors of Golden Star shall be increased to seven (7). All of the
current directors of Golden Star shall remain directors of Golden Star and St.
Jude shall be entitled to nominate one nominee (who shall be the Chief
Executive Officer of St. Jude) to the board of directors of Golden Star and,
subject to any applicable legal requirements, Golden Star shall propose the
Chief Executive Officer of St. Jude as a director to its shareholders at its
next annual general meeting and shall solicit proxies in favour of his election
to the board of directors at such meeting;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Golden
Star shall determine: (i)&nbsp;which personnel of St. Jude will be appointed or
retained upon the completion of the Business Combination; and (ii)&nbsp;which
offices and personnel of St. Jude in West Africa will be maintained or retained
subsequent to the Business Combination;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>subject
to clause (b)&nbsp;above, St. Jude shall use all reasonable efforts to cause
all directors and officers of St. Jude who will not be retained to resign and
sign releases in favour of St. Jude concurrently with the completion of the
Business Combination; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
existing office of St. Jude in Vancouver, British Columbia will be phased out
during the remainder of the existing lease.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.3</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Definitive Agreement</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties
agree to negotiate in good faith and use best efforts to enter into a
definitive agreement providing for the Business Combination consistent with the
terms hereof (the &#147;<b><font style="font-weight:bold;">Definitive Agreement</font></b>&#148;)
as soon as practicable and, in any event, on or before October&nbsp;17, 2005,
which shall be in form and substance satisfactory to Golden Star and St. Jude
and will contain, in addition to the provisions of this Agreement, other terms,
conditions, representations and warranties, covenants, indemnifications and
closing conditions that are customary for a transaction of this nature.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REPRESENTATIONS AND WARRANTIES</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Representations
and Warranties of St. Jude</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">St. Jude
hereby represents and warrants to Golden Star the following and acknowledges
that Golden Star is relying upon the representations and warranties in
connection with entering into this Agreement and participating in the Business
Combination:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>as at September&nbsp;12, 2005, its authorized capital consists of an
unlimited number of Class&nbsp;A common shares (voting) and an unlimited number
of Class&nbsp;B common shares (non-voting), of which 42,314,324<b><font style="font-weight:bold;"> </font></b>Class&nbsp;A common shares are issued and
outstanding and no Class&nbsp;B common shares are issued and outstanding;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>to the best of St. Jude&#146;s knowledge, other than
Michael Terrell (the &#147;<b><font style="font-weight:bold;">Principal Holder</font></b>&#148;)
and Crew Gold Corporation and MacKenzie Financial, no shareholder owns more
than 5% of the outstanding St. Jude Common Shares (on either an undiluted or
fully-diluted basis).&#160; As at September&nbsp;12,
2005, to the best of St. Jude&#146;s knowledge, the Principal Holder directly or
indirectly beneficially owns or controls 2,630,850 St. Jude Common Shares and
800,000 options to purchase an aggregate of 800,000 St. Jude Common Shares;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>it has no, nor will there be immediately prior to the completion of
the Business Combination any, options, warrants, conversion privileges, calls
or other rights, agreements, arrangements, commitments or obligations of it to
issue, sell or acquire any securities of it or securities or obligations of any
kind convertible into or exercisable or exchangeable for any securities of it
other than: (i)&nbsp;options to purchase an aggregate of 3,888,300 St. Jude
Common Shares issued pursuant to St. Jude&#146;s Option Plan; (ii)&nbsp;<b><font style="font-weight:bold;"> </font></b>warrants to purchase an aggregate of
4,500,000 St. Jude Common Shares, and (iii)&nbsp;compensation options to
purchase an aggregate of 895,660 St. Jude Common Shares. The Shareholder Rights
Plan of St. Jude has terminated and is void and of no further effect, and no
successor shareholder rights plan is in force;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>no person (which word
shall have a broad legal interpretation for the purpose of this Agreement) has
any agreement or option or any right or privilege capable of becoming an
agreement or option for the purchase from St. Jude of any material assets of
St. Jude or any of its Subsidiaries and neither St. Jude nor any of its
Subsidiaries has any agreement or option or any right or privilege capable of
becoming an agreement or option for the purchase from any person of any
securities or any assets which could reasonably be expected to be material to
St. Jude;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the aggregate of all
severance payments payable by St. Jude to its directors and officers under
agreements existing on the date hereof (assuming that all of such directors and
officers were to be terminated upon the completion of the Business Combination)
does not exceed CDN$1 million;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>since December&nbsp;31,
2001, it has filed with all applicable securities regulatory authorities and
stock exchanges all documents required to be filed under applicable securities
laws and stock exchange rules&nbsp;and all such documents at the time filed,
except to the extent that any statements contained in any such document has
been modified or superseded by a later document filed with the applicable
securities regulatory authorities and stock exchanges, did not contain any
misrepresentation (as defined in the <i><font style="font-style:italic;">Securities
Act </font></i>(Ontario) or the <i><font style="font-style:italic;">Securities
Act </font></i>(British Columbia)) and complied in all material respects with
the requirements of applicable laws;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all
members of the board of directors of St. Jude participated in the meeting held
to consider this Agreement and the Business Combination and the other
transactions contemplated hereby and have unanimously approved this Agreement,
the Business Combination and the other transactions contemplated hereby and
have unanimously determined that the Arrangement is fair to the holders of St.
Jude Common Shares (the &#147;<b><font style="font-weight:bold;">St. Jude
Shareholders</font></b>&#148;) and is in the best interests of St. Jude, and have
unanimously resolved to recommend that the St. Jude Shareholders vote in favour
of the Business Combination, and that each member of St. Jude&#146;s board of
directors has advised that he intends to vote all St. Jude Common Shares held
by such director in favour of the resolution to approve the Business
Combination and will, accordingly, so represent in the St. Jude information
circular related to an St. Jude Meeting (as defined below); and</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the board of directors of St. Jude has received on
or before the date hereof advice from St. Jude&#146;s financial advisors indicating
that the share exchange ratio (set forth in Section&nbsp;1.1) for the Business
Combination is fair, from a financial point of view, to the St. Jude
Shareholders.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.2</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Representations and
Warranties of Golden Star</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Golden Star
hereby represents and warrants to St. Jude the following and acknowledges that
St. Jude is relying upon the representations and warranties in connection with
entering into this Agreement and participating in the Business Combination:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>as at September&nbsp;20,
2005, its authorized and issued capital consists of an unlimited number of
Golden Star Common Shares and an unlimited number of first preferred shares, of
which 142,887,394 Golden Star Common Shares and nil first preferred shares are
issued and outstanding;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>as at September&nbsp;20,
2005, it has no options, warrants, conversion privileges, calls or other
rights, agreements, arrangements, commitments or obligations of it to issue,
sell or acquire any securities of it or securities or obligations of any kind
convertible into or exercisable or exchangeable for any securities of it other
than: (i)&nbsp;employee stock options to purchase 5,438,035 Golden Star Common
Shares; (ii)&nbsp;warrants to purchase 8,448,334 Golden Star Common Shares; and
(iii)&nbsp;debentures which are convertible into an aggregate of 11,111,111
Golden Star Common Shares;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>since December&nbsp;31, 2001, it has filed with
all applicable securities regulatory authorities and stock exchanges all
documents required to be filed under applicable securities laws and stock
exchange rules&nbsp;and all such documents at the time filed, except to the
extent that any statements contained in any such document has been modified or
superseded by a later document filed with the applicable securities regulatory
authorities and stock exchanges, did not contain any misrepresentation (as
defined in the <i><font style="font-style:italic;">Securities Act </font></i>(Ontario)
or the <i><font style="font-style:italic;">Securities Act </font></i>(British
Columbia)) and complied in all material respects with the requirements of
applicable laws; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>as at the date hereof, no person has any agreement
or option or any right or privilege capable of becoming an agreement or option
for the purchase from Golden Star of any material assets of Golden Star or any
of its Subsidiaries and neither Golden Star nor any of its Subsidiaries has any
agreement or option or any right or privilege capable of becoming an agreement
or option for the purchase from any person of any assets which could reasonably
be expected to be material to Golden Star.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COVENANTS OF THE PARTIES</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Consultation</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties
agree to jointly issue a press release in mutually agreeable form with respect
to the Business Combination upon the execution of this Agreement. Each Party</font> agrees to consult with
the other Party before issuing, and shall provide the other Party with a
reasonable prior opportunity to review and comment on, any other press release
or public statement with respect to the Business Combination. St. Jude will
consult with Golden Star prior to issuing any press release or making any
announcement regarding its mineral reserves or resources and, subject to
applicable securities laws, St. Jude agrees that it will not issue any press
release or make any announcement regarding its mineral reserves or resources
without the prior written consent of Golden Star, such consent not to be
unreasonably withheld.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.2</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Ordinary
Course of Business</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Party
covenants and agrees with the other Party that</font>, except as contemplated in this Agreement or the Business Combination, until the
Effective Date or the day upon which this Agreement is terminated pursuant to Section&nbsp;6,
whichever is earlier:</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>it shall, and shall cause its Subsidiaries to,
conduct its and their respective businesses only in, and not take any action
other than in, the usual, ordinary and regular course of business and
consistent with past practice and in accordance with applicable laws and for
greater certainty, until the Effective Date, it shall not and shall not allow
any Subsidiary to, without the prior written consent of other Party (such
consent not to be unreasonably withheld): (i)&nbsp;in the case of St. Jude,
make any commitments in excess of, or enter into any contracts or group of
related contracts with a value or aggregate value (as the case may be) in
excess of, US$50,000; (ii)&nbsp;in the case of St. Jude, make any changes to
the senior management or senior personnel of St. Jude or any Subsidiary; and (iii)&nbsp;undertake
or make any decision or action which could be material to the business of the
Party and/or any Subsidiary or which could reasonably be expected to have a
Material Adverse Effect;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>it shall not, and shall not permit any of its
Subsidiaries to, take any action, permit any action to be taken or refrain from
taking any action which would be inconsistent with this Agreement or which
could interfere with or be inconsistent with or could reasonably be expected to
impede the completion of the Business Combination;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>it shall promptly notify the other Party of any
breach of any provision hereof, any Material Adverse Effect or any change,
effect, event or occurrence which could reasonably be expected to result in a
Material Adverse Effect or impede the completion of the Business Combination;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in the case of St. Jude, it shall not, and shall
not permit any Subsidiary to, directly or indirectly: (i)&nbsp;issue, sell,
pledge, lease, dispose of, redeem, purchase or encumber (or agree to do any of
the foregoing) any shares, options, warrants, calls, conversion privileges,
rights of any kind to acquire any shares or securities, derivative securities,
debt securities or other securities of it or any of its Subsidiaries, other
than the issue of St. Jude Common Shares pursuant to the exercise of stock
options and warrants which are outstanding on the date hereof; (ii)&nbsp;make
any change to its share capital; (iii)&nbsp;acquire or agree to acquire any
person, or acquire or dispose of or agree to acquire or dispose of any assets
which in each case are individually or in the aggregate material; (iv)&nbsp;satisfy
or settle any claims or liabilities which individually or in the aggregate are
material; (v)&nbsp;relinquish or modify any contractual rights which
individually or in the aggregate are material; or (vi)&nbsp;incur or commit to
provide guarantees, incur any indebtedness for borrowed money or issue any debt
securities;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in the case of St. Jude, it shall not, and shall
cause each of its Subsidiaries to not, enter into or modify any remuneration
terms or benefit plans, or grant any bonuses, salary increases, stock options,
pension or supplemental pension benefits, profit sharing, retirement
allowances, severance agreements, deferred or other compensation, incentive
compensation, severance or termination pay to, or make any loan to, any of its
directors, officers, employees, consultants, contractors or agents;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in the case of St. Jude,
it shall, and shall cause each of its Subsidiaries to, use its reasonable
commercial efforts, to preserve intact its business and goodwill and to
maintain existing relationships with officers, employees, suppliers, customers,
governmental authorities and others having business relationships with it and
its Subsidiaries; and</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in the case of Golden Star, it shall not directly
or indirectly without the prior consent of St. Jude (such consent not to be
unreasonably withheld) make any amendment to its articles to change its share
capital.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.3</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Covenants
Regarding Non-Solicitation</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.1</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>St. Jude shall not and shall not permit any of its
Subsidiaries to, directly or indirectly, through any officer, director,
employee, advisor, representative or agent, (a)&nbsp;solicit, initiate,
facilitate, engage in or respond to or encourage (including by way of
furnishing information or entering into any form of agreement, arrangement or
understanding) any inquiries, proposals or transactions
involving St. Jude and/or its Subsidiaries regarding any merger, amalgamation,
arrangement, restructuring, take-over bid, tender offer, exchange offer, sale
or purchase of substantial assets, sale or purchase of treasury shares, any
equity interest or rights or any other interests therein or thereto, business
combinations, liquidations, reorganizations or recapitalizations or similar
transactions or series of related or similar transactions which would have the
effect of any of the foregoing (any of the foregoing inquiries, proposals or
transactions being referred to as an &#147;<b><font style="font-weight:bold;">Acquisition Proposal</font></b>&#148;);
(b)&nbsp;encourage or participate in any discussions or negotiations regarding
any Acquisition Proposal; (c)&nbsp;accept, approve or recommend any Acquisition
Proposal; or (d)&nbsp;cause St. Jude or any Subsidiary to enter into any
agreement, arrangement or understanding related to any Acquisition Proposal; provided, however, that
nothing contained in this Agreement shall prevent the board of directors of St.
Jude which receives an unsolicited and <i><font style="font-style:italic;">bona fide </font></i>Acquisition
Proposal after the date hereof in respect of it, from considering, negotiating,
approving or recommending to its shareholders an Acquisition Proposal which the
board of directors of St. Jude determines in good faith, after consultation
with its financial and legal advisors and after receiving written advice from
counsel (copies of which shall forthwith be provided to Golden Star) that such
action would be a proper exercise of its fiduciary duties under applicable
laws, would, if consummated in accordance with its terms, result in a
transaction: (i)&nbsp;more favourable to its shareholders than the Business Combination (as it may be amended pursuant to Section&nbsp;3.4); (ii)&nbsp;having
consideration with a value per St. Jude Common Share greater than the value per
St. Jude Common Share provided by the Business Combination (as it may be
amended pursuant to Section&nbsp;3.4); (iii)&nbsp;reasonably capable of being
completed within a reasonable period of time; and (iv)&nbsp;which is not
contingent upon financing (any such Acquisition Proposal being referred to as a
&#147;<b><font style="font-weight:bold;">Superior Proposal</font></b>&#148;).</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.2</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>From and after the date hereof, St. Jude shall
immediately cease and cause to be terminated in writing any existing
discussions or negotiations with any person (other than Golden Star) with
respect to any potential Acquisition Proposal and shall, subject to Section&nbsp;3.3.4,
cease to provide any other person with access to information concerning St.
Jude and its Subsidiaries and exercise all rights it has to require the return
of all confidential information. St. Jude agrees not to release or permit the
release of any person from, or waive, any confidentiality, non-solicitation or
standstill agreement to which such person is a party, unless the board of
directors of St. Jude has determined that such person has made a Superior
Proposal.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.3</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>St. Jude shall promptly notify Golden Star orally
and in writing within 24 hours of any Acquisition Proposal or any amendment to
an Acquisition Proposal being received directly or indirectly by St. Jude, or
any request for non-public information relating to St. Jude or any of its
Subsidiaries, as the case may be, in connection with such an Acquisition
Proposal or for access to the properties, books and/or records of St. Jude or
any Subsidiary, by any person that informs St. Jude or such Subsidiary that it
is considering making, or has made, an Acquisition Proposal. Such written
notice shall include a copy of any written Acquisition Proposal and all
amendments thereto or, in the absence of a written Acquisition Proposal, a
description of the material terms and conditions thereof, in either case
including the identity of the person making the Acquisition Proposal.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.4</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If St. Jude receives a request for non-public
information from a person who has made or intends to make an Acquisition
Proposal and the board of directors of St. Jude determines in good faith after
consultation with financial and legal advisors<b><font style="font-weight:bold;"> </font></b>that such Acquisition Proposal is, or if made would be, a Superior
Proposal, then, and only in such case, St. Jude may, subject to the execution
by such person of a confidentiality agreement containing standstill and other
provisions substantially the same as
those contained in the Confidentiality Agreement (as defined in Section&nbsp;7.3),<b><font style="font-weight:bold;"> </font></b>provide such person with access to non-public confidential
information regarding St. Jude; provided that St. Jude shall send a copy of any
such confidentiality agreement (including the identity of the person who has
entered into such agreement) to Golden Star as soon as practicable and in any
event within 24 hours of its execution and shall, as soon as practicable and in
any event within 24 hours, provide Golden Star with a list and copies of all
information provided to such person that was not previously provided to Golden
Star and immediately provide Golden Star with all other information that was
provided to such person.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.3.5</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>St. Jude shall ensure that its officers, directors
and employees and those of its Subsidiaries and any financial, legal and other
advisors, agents and representatives retained by St. Jude are aware of the
provisions of this Section&nbsp;3.3, and St. Jude shall be responsible for any
breach of this Section&nbsp;by such persons. For greater certainty, any
amendment to an Acquisition Proposal shall constitute a new Acquisition
Proposal for the purposes of this Section&nbsp;3.3.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.4</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Notice of
Superior Proposal Determination</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4.1</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If St.
Jude has fully complied with Section&nbsp;3.3 and this Section&nbsp;3.4, St.
Jude may accept, approve, recommend or enter into any agreement, understanding
or arrangement in respect of an Acquisition Proposal and withdraw or modify in
a manner adverse to Golden Star its recommendation of the approval of the
Business Combination, if and only if it:</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provides to Golden Star: (i)&nbsp;written notice
that the board of directors of St. Jude has determined that it has received and
is prepared to accept a Superior Proposal; (ii)&nbsp;a copy of any agreement or
other document in respect of such Superior Proposal as executed by the person
making the Superior Proposal, in each case as soon as possible but in any event
not less than five full business
days prior to acceptance of the Superior Proposal by the board of directors of
St. Jude; and (iii)&nbsp;in the case of an Acquisition Proposal that includes
non-cash consideration, the value or range of values attributed by the board of
directors of St. Jude, in good faith, for such non-cash consideration after
consultation with its financial advisors;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>provides Golden Star with an opportunity (but not
the obligation), during the five
business day period referred to in Subsection&nbsp;3.4.1(a)&nbsp;to propose to
amend this Agreement to provide for consideration having a value equivalent to
or more favourable to the St. Jude Shareholders than that of the Superior
Proposal with the result that the Superior Proposal would cease to be a
Superior Proposal; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>subject to Subsection&nbsp;3.4.2, terminates this
Agreement pursuant to Subsection&nbsp;6.1(d)&nbsp;and pays to Golden Star the
St. Jude Break Fee (as defined below in Subsection&nbsp;5.1) as contemplated by
Section&nbsp;5.2.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.4.2</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>In the event that Golden Star agrees to amend this
Agreement in the manner described in Subsection&nbsp;3.4.1, the board of
directors of St. Jude shall consider the terms of the proposed amendment, and: (i)&nbsp;if
the board of directors of St. Jude concludes the Superior Proposal is no longer
a Superior Proposal given the terms of the proposed amendment, St. Jude shall
not implement the proposed Superior Proposal and shall not terminate this
Agreement pursuant to Subsection&nbsp;6.1(d), and shall agree to the proposed
amendments to this Agreement; or (ii)&nbsp;if the board of directors of St.
Jude concludes that the Acquisition Proposal would nonetheless remain a
Superior Proposal, St. Jude shall terminate this</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement in accordance with Subsection&nbsp;6.1(d)&nbsp;and
concurrently pay to Golden Star the St. Jude Break Fee in accordance with Section&nbsp;5.2,
and only thereafter St. Jude may enter into an agreement in order to implement
the Superior Proposal.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.5</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Access to
Information</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the provisions of the Confidentiality
Agreement and applicable laws, upon reasonable notice, each Party shall,
and shall cause each of its Subsidiaries to, afford the other Party&#146;s officers,
employees and advisors access, during normal business hours from the date
hereof and until the earlier of the execution of the Definitive Agreement and
the termination of this Agreement, to its properties, books, contracts and
records as well as to its management personnel, and all material information
concerning its business, properties and personnel as the other Party may
reasonably request. In addition, after the execution of the Definitive
Agreement and until the Effective Time: (i)&nbsp;St. Jude shall provide to
Golden Star reports of its activities including, but not limited to monthly
operating reports and monthly financial reports, as well as full and open
access on a real time basis to its offices, books and records; and (ii)&nbsp;Golden
Star will provide to St. Jude a copy of the monthly operating report that it
provides to Golden Star&#146;s board of directors.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.6</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Covenants
in Respect of the </font>Business</b> <b><font style="font-weight:bold;">Combination</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Party
covenants and agrees that, except as otherwise contemplated in this Agreement,
until</font>
the earlier of the Effective Date and the date upon which this Agreement is
terminated, it will:</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in a timely and expeditious manner, take all
necessary actions in order to enable it to participate in and effect the
Business Combination (including the execution of the Definitive Agreement on or
before October&nbsp;17, 2005) and use all commercially reasonable efforts to
satisfy (or cause the satisfaction of) the conditions precedent to the
obligations of the other Party hereunder to the extent the same are within its
control, and shall take, do, or cause to be taken or done, all other actions
and other things necessary, proper or advisable under all applicable laws to
complete the Business Combination, including using its commercially reasonable
efforts to: (i)&nbsp;apply for and obtain all necessary waivers, consents,
orders, authorizations and approvals, required, and make all necessary filings
and applications under, all applicable laws and with all applicable regulatory
authorities (including in West Africa) and stock exchanges; (ii)&nbsp;co-operate
with the other Party in connection with the performance by it of its
obligations hereunder; (iii)&nbsp;in the case of St. Jude, convene and hold a
meeting (a &#147;<b><font style="font-weight:bold;">St. Jude Meeting</font></b>&#148;)<b><font style="font-weight:bold;"> </font></b>of holders of St. Jude Common Shares and
holders of St. Jude Convertible Securities, voting as single class, for the
purpose of considering the Business Combination in compliance with applicable
laws as soon as reasonably practicable and no later than December&nbsp;7, 2005
or such later date (but in any case, on or before March&nbsp;16, 2006) as the
Parties, acting reasonably, may agree to in writing; and (iv)&nbsp;in the case
of St. Jude, prepare in consultation and co-operation with Golden Star and in
compliance with applicable laws, all communications to the St. Jude
Shareholders required by applicable laws in connection with the Business
Combination, including an information circular in respect of the St. Jude
Meeting;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>except for non-substantive communications, furnish
promptly to the other Party a copy of each document or communication delivered
to, filed with or received by, the Party under applicable laws or otherwise,
and any reports of dealings with regulatory agencies or other governmental
authorities in connection with the Business Combination or any of the
transactions contemplated hereby;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in the case of St. Jude, subject only to Section&nbsp;3.4
and the fiduciary duties of the board of directors of St. Jude, recommend to
the St. Jude Shareholders that they approve the Business</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Combination and solicit proxies from the St. Jude
Shareholders to vote in favour of approving the Business Combination; and</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>in the case of Golden Star, use its commercially
reasonable efforts to obtain the approval of the Toronto Stock Exchange and the
American Stock Exchange to list thereon the Golden Star Common Shares to be
issued to the St. Jude Shareholders pursuant to the Business Combination, and
to ensure that such Golden Star Common Shares are not subject to any statutory
hold period (subject only to restrictions on control block distributions) under
applicable securities laws in Canada.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CONDITIONS</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Mutual
Conditions</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligations of the Parties to complete the
transactions contemplated hereby are subject to the fulfillment or waiver of
the following mutual conditions on or before the Effective Date or such other
time prior thereto as is specified below:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the execution by the Parties of the Definitive Agreement and other documents
related to the Business Combination as soon as practicable and, in any event,
no later than October&nbsp;17<b><font style="font-weight:bold;">, </font></b>2005;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Effective Date shall have occurred on or before December&nbsp;16, 2005 or such later date (but
in any case, on or before March&nbsp;16, 2006) as the Parties, acting
reasonably, may agree to in writing;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>there shall be no proceeding of a judicial or
administrative nature or otherwise, brought by or before a governmental
authority, or any applicable laws proposed, enacted, promulgated or applied,
that directly or indirectly relates to the transaction contemplated hereby
which could reasonably be expected to result in a Material Adverse Effect on
the Party to which it applies or which could impede or interfere with the
completion of the Business Combination;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>all regulatory approvals and approvals of any
other person (including any governmental authority or court, including those
necessary in West Africa), and the expiry of any waiting periods in connection
with, or required to permit, the completion of the Business Combination, the
failure to obtain which or the non-expiry of which could reasonably be expected
to cause a Material Adverse Effect on either Party or materially impede the
completion of the Business Combination, shall have been obtained or received on
terms which will not cause a Material Adverse Effect on either Party, and
reasonably satisfactory evidence thereof shall have been delivered to each
Party;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Golden Star Common Shares to be issued to the St. Jude Shareholders pursuant to
the Business Combination being approved for listing on the Toronto Stock
Exchange and the American Stock Exchange and such Golden Star Common Shares not being subject
to any statutory hold period (subject only to restrictions on control block
distributions) under applicable securities laws in Canada; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
holders of St. Jude Common Shares and the holders of the St. Jude Convertible
Securities, voting as a single class, shall have approved, in accordance with
applicable corporate laws, the Business Combination and approved or consented
to such other matters as either Golden Star or St. Jude, acting reasonably,
shall consider necessary or desirable in connection with the Business
Combination in the manner required thereby.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing conditions are for the mutual benefit of
each of the Parties and may be waived, in whole or in part, by any Party at any
time, provided that no Party may waive any mutual condition on behalf of the
other Party.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.2</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Several
Conditions</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligation of each Party to complete the
transactions contemplated hereby is subject to the fulfillment by the other
Party of the following conditions on or before the Effective Date or such other
time prior thereto as is specified below:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>each Party shall have complied in all material
respects with its covenants herein and the representations and warranties made
to such Party by the other Party in this Agreement shall be true and correct in
all material respects as of the Effective Date as if made on and as of such
date;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>from the date hereof up to and including the
Effective Date, there shall have been no change, effect, event or occurrence
which, in the reasonable judgment of such Party, has or is reasonably likely or
expected to have a Material Adverse Effect on the other Party and/or its
Subsidiaries, on the Business Combination or on the combined business that will
result from the completion of the Business Combination; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
Party shall not have become aware of any misrepresentation, untrue statement of
a material fact, or an omission to state a material fact that is required to be
stated or that is necessary to make a statement not misleading in the light of
the circumstances in which it was made and at the date it was made (after
giving effect to all subsequent filings in relation to all matters covered in
earlier filings) in any document filed by or on behalf of the other Party with
any regulatory authority or stock exchange in Canada or elsewhere or provided
by that Party to the other Party.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing conditions precedent are for the benefit
of each Party and may be waived, in whole or in part, by such Party in writing
at any time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.3</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font style="font-weight:bold;">Golden Star
Conditions</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The obligations of Golden Star to complete the
transactions contemplated hereby are subject to the fulfillment or waiver of
the following conditions on or before the time as is specified below:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>on or before the date of entering into the
Definitive Agreement, Golden Star shall have entered into one or more lock-up
and support agreements (in form and substance satisfactory to Golden Star
acting reasonably) with the Principal Holder and the directors, senior officers
and other holders of St. Jude securities, which in the aggregate shall
represent not less than 10% of the issued and outstanding St. Jude Common
Shares, options and warrants and the parties thereto (other than Golden Star)
shall not have breached any of the representations, warranties or covenants of
such agreements. Such lock-up and support agreements will provide, among other
things, that such persons will not transfer their St. Jude securities without
the prior written consent of Golden Star and will irrevocably vote all such St.
Jude securities in favour of approving, or tender their St. Jude securities to,
the Business Combination or otherwise support the Business Combination,
provided that such agreements will only terminate on the termination of this
Agreement or the Definitive Agreement (if it has superseded this Agreement);</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>on or
prior to the date hereof, the board of directors of St. Jude shall have
unanimously approved the Business Combination and shall have unanimously
recommended the Business Combination to the St. Jude Shareholders, and on or
prior to the Effective Date shall not have withdrawn or changed any of its
recommendations in a manner adverse to Golden Star or which could impede</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the
completion of the Business Combination, and shall not have made a
recommendation to the St. Jude Shareholders not to accept the Business Combination;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>on or
prior to the Effective Date, holders of no greater than 5% of the outstanding
St. Jude Common Shares at the time of the vote shall have dissented to the
Business Combination; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>on or
prior to the Effective Date, Golden Star shall be satisfied, acting reasonably,
that all applications (including those disclosed to Golden Star in a letter of
even date herewith) made by St. Jude or its directors, officers, agents and
representatives on its behalf, for the acquisition or renewal of mineral
properties or licenses or permits related to mineral properties, are for the
benefit of and will be held by St. Jude upon completion of the Business
Combination.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The foregoing conditions are for the exclusive benefit
of Golden Star and may be waived, in whole or in part, by Golden Star at any
time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BREAK FEES AND EXPENSES</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Interpretation</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For the
purposes of this Section&nbsp;5:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><font style="font-weight:bold;">St. Jude Break Fee</font></b>&#148; shall mean a fee of
CDN$4,000,000.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><font style="font-weight:bold;">St. Jude</font></b>  <b><font style="font-weight:bold;">Fee
Event</font></b>&#148; shall mean the occurrence of any of the following:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
termination of this Agreement by Golden Star pursuant to Subsection&nbsp;6.1(b)(i)&nbsp;(only
in the case of a breach by St. Jude of any provision of Sections 3.2(d), 3.3 or
3.4, but excluding any immaterial breach of a provision of Section&nbsp;3.3
which would not have a material impact on the timing or likelihood of
completing the Business Combination) or Subsection&nbsp;6.1(e);</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
termination of this Agreement pursuant to Subsection&nbsp;6.1(d); or</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if all
of the following occur: (i)&nbsp;an Acquisition Proposal shall have been made
to St. Jude or made known to the St. Jude Shareholders generally or shall have
been made directly to St. Jude Shareholders or any person shall have publicly
announced an intention to make an Acquisition Proposal in respect of St. Jude; (ii)&nbsp;this
Agreement is terminated; and (iii)&nbsp;St. Jude completes any Acquisition
Proposal during the term of this Agreement or within 12 months following the
termination of this Agreement.</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.2</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>St. Jude Break Fee</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">St. Jude shall
pay to Golden Star the St. Jude Break Fee in immediately available funds no
later than one business day after the first to occur of any St. Jude Fee Event
or, in the event of the St. Jude Fee Event set out in subparagraph (c)&nbsp;of
the definition of St. Jude Fee Event, no later than one business day following
completion of the Acquisition Proposal.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.3</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Expense Reimbursement</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If the
Agreement is terminated by Golden Star pursuant to Subsection&nbsp;6.1(b)(i)&nbsp;(other
than in the case of a termination pursuant to Subsection&nbsp;6.1(b)(i)&nbsp;which
would constitute a St. Jude Fee Event, in which case St. Jude shall pay Golden
Star the St. Jude Break Fee in accordance with</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section&nbsp;5.2),
St. Jude shall forthwith pay to Golden Star within one (1)&nbsp;business day of
such termination the amount of CDN$500,000 in immediately available funds.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
this Agreement is terminated by St. Jude pursuant to Subsection&nbsp;6.1(b)(i),
Golden Star shall forthwith pay to St. Jude within one (1)&nbsp;business day of
such termination the amount of CDN$500,000 in immediately available funds.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.4</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Liquidated Damages</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>St.
Jude acknowledges that the payment amount set out in Section&nbsp;5.2 is a
payment of liquidated damages which is a genuine pre-estimate of the damages which
Golden Star will suffer or incur as a result of the event giving rise to such
damages and the resultant termination of this Agreement and is not a
penalty.&#160; St. Jude hereby irrevocably and
unconditionally waives any right it may have to raise as a defence that any
such liquidated damages are excessive or punitive.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each
Party acknowledges that the payment amount set out in Section&nbsp;5.3 is a
payment of liquidated damages which is a genuine pre-estimate of the damages
which the other Party will suffer or incur as a result of the event giving rise
to such damages and the resultant termination of this Agreement and is not a
penalty, and each party hereby irrevocably and unconditionally waives any right
it may have to raise as a defence that any such liquidated damages are
excessive or punitive. Notwithstanding any provision of this Subsection&nbsp;5.4(b)&nbsp;to
the contrary, payment by one Party to the other Party pursuant to Section&nbsp;5.3
shall not be in lieu of any damages or any other payment or remedy available at
law or in equity in the event of any wilful or intentional breach by the Party
making the payment of any of its obligations or covenants under this Agreement.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
provisions of this Section&nbsp;5 shall survive the termination of this
Agreement.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERMINATION</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Termination</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement
may be terminated immediately:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by the
mutual written consent of Golden Star and St. Jude;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
either Party, upon providing written notice to the other:</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>at
any time if the other Party is in breach of any of its representations,
warranties, covenants or other agreements contained in this Agreement in any
material respect, and such breach is not capable of being cured or is not cured
by the breaching Party within three
business days of the giving of notice of such breach by the other Party to the
breaching Party;</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>at any
time after 5:00&nbsp;p.m. (Toronto time) on October&nbsp;17, 2005 if,<b><font style="font-weight:bold;"> </font></b>having acted in good faith, the Definitive
Agreement has not been executed; or</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if any
of the conditions for the benefit of the terminating Party contained in this
Agreement is not satisfied or waived on or before December&nbsp;16, 2005 (or such later date (but
in any case, on or before March&nbsp;16, 2006) as the Parties, acting
reasonably, may agree to in writing) or such other time
prior thereto as is specified in this Agreement, </p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided
that the terminating Party is not then in breach of any representations,
warranties and covenants herein contained in any material respect;</font></p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
Golden Star or St. Jude if any of the following have occurred:</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if
the approval of the St. Jude Shareholders has not been obtained by December&nbsp;7,
2005 or such
later date (but in any case, on or before March&nbsp;16, 2006) as the Parties,
acting reasonably, may agree to in writing; or</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>if
upon a vote at a duly held St. Jude Meeting or any adjournment or postponement
thereof to obtain the approval of the holders of St. Jude Common Shares and the
holders of St. Jude Convertible Securities (voting as a single class) of the
Business Combination or any matter that could reasonably be expected to
facilitate it, the approval of the holders of St. Jude Common Shares and
holders of St. Jude Convertible Securities, voting as a single class, is not
obtained in accordance with applicable laws;</p>

<p align="left" style="margin:0in 0in .0001pt 1.0in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
either Party, upon the determination by St. Jude after conclusion of the
process set out in Section&nbsp;3.3 that an Acquisition Proposal constitutes a
Superior Proposal, the provision of notice to Golden Star of a Superior
Proposal as required by Section&nbsp;3.4 and the time period for Golden Star to
propose an amendment to the Agreement as contemplated by Section&nbsp;3.4 has
elapsed; or</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>by
Golden Star, if the board of directors of St. Jude (i)&nbsp;has withdrawn or
changed any of its recommendations to the St. Jude Shareholders in a manner
adverse to Golden Star or which would impede the completion of the Business
Combination, or has made a recommendation to the St. Jude Shareholders not to
accept or approve the Business Combination, or (ii)&nbsp;has not submitted the
Business Combination for approval to St. Jude Shareholders on or prior to December&nbsp;7,
2005 (or
such later date (but in any case, on or before March&nbsp;16, 2006) as the
Parties, acting reasonably, may agree to in writing), provided that Golden Star
has provided, on a timely basis, information regarding Golden Star required by
applicable securities laws for inclusion in the management information circular
of St. Jude to be used at the St. Jude Meeting, or (iii)&nbsp;has
failed to solicit proxies in favour of approving the Business Combination, or (iv)&nbsp;has
resolved to do any of the foregoing.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event of termination of this
Agreement by either Party as provided in this Section&nbsp;</font>6,
this Agreement shall forthwith become void and there shall be no liability or
obligation on the part of either Party, except with respect to Sections 5.2,
5.3, 5.4, 7.2, and 7.3 which provisions shall survive the termination; provided
that notwithstanding anything to the contrary contained in this Agreement,
neither Party shall be (i)&nbsp;relieved or released from any liability or
damages arising out of any breach of this Agreement prior to such termination
or (ii)&nbsp;precluded from seeking injunctive relief to restrain any breach or
threatened breach of this Agreement or otherwise to obtain specific performance
of any provision of this Agreement.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MISCELLANEOUS</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.1</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>General Provisions</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties
agree that the following provisions shall apply to this agreement:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>time
is of the essence in this Agreement;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>this
Agreement will enure to the benefit of and be binding upon the respective
successors and permitted assigns of the Parties. This Agreement is not
assignable by a Party without the prior</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">written
consent of the other Party, provided that Golden Star may assign all or any
part of its rights or obligations under this Agreement to a direct or indirect
Subsidiary of Golden Star;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the
right and remedies of the Parties hereunder are cumulative and are in addition
to, and not in substitution for, any other rights and remedies available at law
or in equity or otherwise;</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>this
Agreement (together with the Confidentiality Agreement) constitutes the entire
agreement between the Parties with respect to the subject matter hereof and
cancels and supersedes any prior understandings and agreements between the
Parties with respect thereto and there are no representations, warranties,
terms, conditions, undertakings or collateral agreements, express, implied or
statutory, between the Parties other than as expressly set forth in this
Agreement; and</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:9.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>this
Agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable therein.</p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.2</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Expenses</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except as
provided in Section&nbsp;5.3, each Party will pay its own expenses incurred in
connection with this Agreement and the transactions contemplated herein.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.3</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Extension of Confidentiality
Agreement</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Parties
agree that the confidentiality agreement dated October&nbsp;27, 2003 entered
into between Golden Star and St. Jude (the &#147;<b><font style="font-weight:bold;">Confidentiality
Agreement</font></b>&#148;) shall be extended by replacing the reference to &#147;twenty-four
(24) months&#148; as set forth in section&nbsp;8 of the Confidentiality Agreement,
with a reference to &#147;thirty six (36) months&#148; so that the Confidentiality
Agreement expires October&nbsp;27, 2006. The Parties acknowledge that this
Agreement and the Business Combination is subject to the Confidentiality
Agreement.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.4</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Severance Payments</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Following the
completion of the Business Combination, Golden Star will cause St. Jude to
honour all severance agreements referred to in Subsection&nbsp;2.1(e).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.5</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Notices</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any demand,
notice or other communication to be given in connection with this Agreement
must be communicated confidentially and in writing and will be sufficiently
given if delivered personally or sent by facsimile addressed: (i)&nbsp;if to
Golden Star, to the attention of Mr.&nbsp;Peter Bradford to the address or
facsimile thereof set forth on the first page&nbsp;of this Agreement; or (ii)&nbsp;if
to St. Jude, to the attention of Mr.&nbsp;Michael Terrell to the address or
facsimile thereof set forth on the first page&nbsp;of this Agreement; or to
such other address or facsimile as the relevant Party may advise by notice in
writing given pursuant to this Section.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.6</font></b><b><font size="1" style="font-size:9.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Counterparts</b></p>

<p align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement
may be executed in any number of counterparts, manually or by facsimile, each
of which will be deemed to be an original and all of which taken together will
be deemed to constitute one and the same instrument.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * * * * * *
*</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kindly signify
your acceptance of the terms contained herein by signing the enclosed duplicate
copy of this letter in the place indicated below and returning such executed
copy to Golden Star by no later than 5:00&nbsp;p.m. (Toronto time) on September&nbsp;27,
2005, failing which this letter will be of no force or effect.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Yours truly,</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">GOLDEN
  STAR RESOURCES LTD.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:27.46%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Peter J. Bradford</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.12%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.46%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Name: </font>Peter J. Bradford</font></p>
  </td>
  <td width="11%" valign="top" style="padding:0in 0in 0in 0in;width:11.12%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="33%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:33.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">President and
  Chief Executive<br>
  Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:38.58%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accepted and
  agreed, as of this&nbsp;27 day of September, 2005.</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ST.
  JUDE RESOURCES LTD.</font></b></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="57%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:57.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:21.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Michael A. Terrell</font></p>
  </td>
  <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.5%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:54.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Name: </font>Michael A. Terrell</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.92%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:54.0%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: President and Chief Executive
  Officer</font></p>
  </td>
  <td width="42%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:42.08%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="29" style="border:none;"></td>
  <td width="161" style="border:none;"></td>
  <td width="243" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
  <td width="41" style="border:none;"></td>
  <td width="164" style="border:none;"></td>
  <td width="83" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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