ST BARBARA LIMITED — AGM Information 2003

Jun 5, 2003

ST BARBARA MINES LIMITED

ACN 009 165 066

CHAIRMAN'S ADDRESS

Extraordinary General Meeting

6 June 2003

Enquiries regarding this report may be directed to: Stephen W. Miller Executive Chairman Telephone $(08)$ 9476 5555 Overseas +61 8 9476 5555

or Colin G. Jackson Investor Relations Telephone 0417 929 107

St Barbara Mines Limited Level 2, 16 Ord Street West Perth Western Australia 6005 Telephone $(08)$ 9476 5555 Overseas +61 8 9476 5555

Dollar values in this report are Australian Dollars unless otherwise stated.

St Barbara is a dedicated gold company listed on both the Australian Stock Exchange and the AIM (London Stock Exchange) - ticker symbol SBM - with nearly 12,000 shareholders.

Good morning.

A warm welcome to all shareholders and invited guests to this Extraordinary General Meeting of this Company.

My name is Stephen Miller, Executive Chairman of your Company. With me today is my fellow director, Brian Speechly, and Company Secretary, Alan Rule. Hank Tuten, who is resident overseas, sends his apologies. Kevin Dundo, who is currently overseas, is also an apology.

Prior to proceeding with the formal part of the meeting, it is my intention to make a number of comments on the current status of the Company's business and on the immediate outlook.

In the last couple of months the Company has received an unprecedented number of telephone calls and emails. There is a common thrust to these enquiries: "What has happened to the share price and what is management doing?"

Let me state clearly that the Board of Directors and management are disappointed and concerned about the share price. We do not want to be on the radar screen of an opportunistic predator at a price substantially below the Company's fundamental worth. We are all working hard to address this.

Initiatives taken by management and the current status of the four most important elements of our business - Meekatharra production, Paulsens development, the Defiance merger and our current financial status - may be summarised as follows.

ST BARBARA MINES LIMITED

ACN 009 165 066

Meekatharra Production

Current operations comprise the carting and milling of 50,000 to 60,000 tonnes per week of highly oxidised low grade stockpile material from the Paddys Flat tenements. just 15 km from the plant.

This phase of operations is now in its twelfth week, with an aggregate of approximately 428,000 tonnes treated and 10,534 ounces recovered. The typical head grade is $0.9$ g/t, and is higher than originally expected. Current metallurgical recoveries are at 85%. Plant optimisation continues.

Stockpile resources are sufficient for continuous operations through to March 2004. We are currently planning some shallow drilling at Paddys Flat to investigate several adjacent open pit position possibilities.

Site operating cash costs are typically \$470 per ounce, and royalties \$20 per ounce. At today's spot price of \$560 per ounce, Meekatharra operations are therefore cash positive.

This is a significant improvement on the first eight months of this fiscal year.

Paulsens Development

As previously advised, management is examining a number of options to bring Paulsens to development status.

Whilst the project is relatively high grade, based on the current mine plan, the most profitable years do not occur until years 3 and 4. Considerable capital is required to initiate the project due primarily to earthmoving associated with the high strip ratio. This is currently beyond the balance sheet capacity of the Company. Shareholder value will only be created through the development of this asset.

Accordingly very recently we have turned our focus to re-examining other options with a view to reducing the capital investment required, whilst still producing returns sufficient to justify development.

Defiance Merger

Shareholders were advised in early April 2003 of a revision to the original concurrent three way merger proposal between St Barbara, Geomaque Explorations of Canada and unlisted UK company Midas Gold plc.

The current status of the two stage sequential merger will see Geomaque and Midas shareholders voting to merge on 17 June 2003. Court approval and the listing of Defiance are expected to occur on, or about 24 June 2003.

Financial Position

Overall our financial position is not markedly different from the audited accounts at 31 December 2002.

In Summary

Our operations at Meekatharra are cash positive $-$ a significant improvement on the first eight months of the financial year. The processing of the Paddys Flat low grade stockpiles will provide sustained operations for a further nine months, with potential upside from nearby open pit opportunities and ultimately from the high grade Prohibition, Vivians and Consols orebodies.

Clearly we see the Paddys Flat resources underpinning sustainable mining operations over the longer term, and to this end we are currently developing our preferred mining models. At this stage we are targetting commencement of development in the March quarter of 2004.

ST BARBARA MINES LIMITED

ACN 009 165 066

Whilst our current exploration activities are restricted, our JV partner Gold Fields is active on the prospective Reedys tenements.

Paulsens is back on the agenda and the management team is diligently working towards a solution to bring the property into production.

And finally, the Defiance merger. Stage 1 should be completed within a fortnight.

This completes my comments on the current status of the business.

Stephen W. Miller Executive Chairman

6 June 2003