ST BARBARA LIMITED — AGM Information 2006

Nov 15, 2006

ASX Sharcholders Report

St Barbara Limited ACN 009 165 066 1205 Hay Street, West Perth WA6005 Telephone +61 8 9476 5555 Facsimile -61 8 9476 5500 Email perth@stbarbara.com.au Website www.stbarbara.com.au

Managing Director's 2006 Annual General Meeting Address

A copy of the address presented by Mr Eduard Eshuys, Managing Director and CEO, to the 2006 Annual General Meeting is attached.

Ross Kennedy Company Secretary

16 November 2006

MANAGING DIRECTOR'S ADDRESS

Annual General Meeting 16 November 2006

Our involvement with St Barbara now extends to nearly 2.5 years. With our initial success of refinancing the Company, the timely acquisition of the gold assets from the Administrators of Sons of Gwalia, the subsequent divestment of the South Laverton asset and the divestment of the Company's old homebase at Meekatharra, a solid platform for future growth and wealth creation has been established.

To be clear our focus and bias is gold in Australia.

The future creation of wealth for our shareholders and workforce, the Southern Cross and Leonora communities, and other stakeholders will be pursued in an energetic and enthusiastic but disciplined approach. Our focus will continue to be:

• firstly to improve the profitability and expansion of our gold production activities:
• to also continue to aggressively convert to reserves our large resource $\blacksquare$ base, currently of just under 7 million ounces, to establish long life, high margin gold operations;
• $\blacksquare$ to draw on the collective intellectual skills of our geologists to pursue the discovery of new world class gold and other metal deposits under cover in Australia: and
• importantly to make acquisitions or enter into joint ventures which have the potential to increase in value dramatically through exploration or resource/reserve extension successes. For example our initial investment in the Gwalia gold assets of A\$38 million, has led to the current market capitalisation of A\$500 million of St Barbara in less than two years.

At Southern Cross, our operations have already contributed A\$66.4 million cash flow before capital and exploration expenditure over the past financial year and have assisted in funding the Company's progressive development and exploration activities.

Our gold production from Southern Cross operations is on track to achieve our forecast of 165 thousand ounces @ A\$465 per ounce for 2006/07. In fact if our gold sales during the two months of September and October, which totalled 32 thousand ounces at a cash cost of A\$417 per ounce continues at that rate then our forecast production will be exceeded.

Capital expenditure at Southern Cross operations for the financial year is forecast at A\$26.6 million which is part of the strategy to set the mine up for the long term.

Capital expenditure at Gwalia, principally on the Hoover Decline, is forecast at A\$41 million and should see the decline at a vertical depth of 830 metres below surface at 30 June 2007.

This total capital expenditure of A\$68 million and the exploration expenditure of A\$20.2 million is funded by both cash flow and May 2006 capital raising of A\$59 million.

The Marvel Loch underground mine is developing into the cornerstone of the Southern Cross operations. This is a consequence of conversion of resources to reserves, improved planning, strategic capital investment, better work practices and our mining approach of focusing on the high grade lodes.

Success with understanding the high grade lodes (pipes) of Marvel Loch and the results from our recent drilling. have given us a strong incentive to accelerate our drilling program. The drilling is to extend resources/reserves from 500 to 1,000 metres below surface.

Our target is to increase underground reserves to 700 thousand ounces. If we are successful in realising this expectation, the mine will become a stable. medium-term operation with even better financial returns than those already achieved and strengthening our operating base pending production from Gwalia Deeps.

Southern Cross operations will also benefit from the establishment of other open pit and underground mines. Our immediate focus is to achieve this principally at Nevoria and Transvaal which have historically produced over 800 thousand ounces to an average vertical depth of less than 120 metres.

This is not just a concept. Data compilation, validation and consolidation is well advanced, for both with drilling to follow up possible depth extensions to commence later this year.

Irrespective of the Nevoria and Transvaal results, extensions of the open pit mining at Hercules will ensure full scale production at Southern Cross operations, continuing until at least early 2008.

Exploration of our landbank at Southern Cross and Leonora which has a total endowment of past production and current resources of 21 million ounces of gold will continue to be our focus over the next 12 months.

In addition, the Leonora and Southern Cross land holdings cover extensions of well known nickel sulphide provinces and are prospective for the discovery of high grade nickel sulphide mineralisation. As others have shown such ore

bodies support low capital investment, high margin operations and are ideal targets for an aggressive developer like St Barbara.

Our expectations and aspirations for our current and future success can only be achieved with a strong commitment to the safety of our workforce. interaction with our communities, and of course respect for the environment.

Our safety performance and management of health and safety needs to improve. We have appointed a manager to coordinate this improvement company wide. All of us at St Barbara are determined to strengthen and heighten awareness of safe work practices and behaviour, to improve skills training and to seek and apply best practices of top Australian and international companies.

Southern Cross and Leonora communities are central to our success and supporting those communities in meaningful ways is important. A couple of initial modest examples this year are the assistance to the Leonora state school with playground equipment and at Southern Cross we have provided financial support for a full time doctor, which has been widely appreciated.

Water and water usage are important topics today. 12 months ago we initiated a water usage efficiencies and water conservation study to reduce consumption and recycling of our water. Even though there are no underground water shortages at Leonora or Southern Cross, the study is to understand how best to use this water to ensure sustainability.

Rehabilitation of past mining areas are being incorporated in to our current mining plans. In many cases careful consideration of the environment leads to improved operations and lower costs rather than higher cost. A good example is at Hercules where we have used the waste from the open pit mining to encapsulate an old tailings dam, the cost of which was less than establishing a new waste dump.

Looking forward, the Feasibility Study for Gwalia Deeps is approaching completion. Like any deep mine, Gwalia Deeps presents some challenges. For example; in terms of the stress environment and ventilation. These have been anticipated and we are confident that Gwalia Deeps will become the Company's flagship operation and the second milestone after Southern Cross operations on St Barbara's road to growth and wealth creation.

As the Company announced in its September quarterly results, Gwalia Deeps Indicated Resources have increased 73% to 1.9 million ounces. A reserve base derived from these resources could provide a mine life of 8 to 10 years.

Importantly there is an opportunity to increase the Gwalia Deeps reserves. Drilling is continuing to seek to convert some existing 400 thousand ounces of inferred resources to indicated resources within the envelope of the current mine plan.

Another opportunity to increase the Gwalia Deeps reserves is below the current mine plan. This appears possible from our detailed assessment of the deep geotechnical and stress related factors. Limited drilling to date has established high grade mineralisation extending to at least 1,800 metres below surface. This is a promising development.

The target of additional conversion of these resources to reserves could result in reserves for Gwalia exceeding 2.5 million ounces, a similar quantity to that produced from the underground in the past. The Feasibility Study of Gwalia Deeps is nearing completion and is to be considered by the Board in February 2007.

A priority for us remains the ongoing conversion and extension of our existing resources to reserves at Leonora and Southern Cross in the vear ahead.

Looking further into the future, the discovery of world class gold deposits is important in achieving our objective of a 10 million ounce reserve base by 2010. St Barbara's BigGold Study initiated 12 months ago focuses on the discovery of world class gold deposits under cover. A modest budget of less than A\$1 million per vear has been allocated to this activity. Progress so far as a result of integration of readily available geological, gravity, magnetic and in some instances geochemical data has generated target areas in northern New South Wales. Victoria and in the Telfer district of Western Australia. As a consequence, our land holdings and applications now total more than 12,000 square kilometres. The criteria for selecting these areas are analogues with known world class deposits, their geological settings and proximity to highly endowed mineral provinces.

Finally, acquisitions and joint ventures are also an important component of our future strategy to achieve our objectives. A number of corporates and assets have been assessed.

This concludes my outline of our achievements, plans and aspirations. As you can see we are connecting with our employees and communities. rebuilding and redefining our assets, re-establishing our reputation and are determined to deliver wealth creation.

Eduard Eshuys Managing Director & CEO

Disclaime

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This presentation includes certain statements, estimates and projections with respect to the future performance of St Barbara. Such statements, estimates and projections reflect various assumptions concerning anticipated results, which assumptions may prove to not be correct. The projections are merely
estimates by St Barbara, of the anticipated future performance of St Bar information and certain assumptions of future economic and results, which may prove to be incorrect. Such projections and estimates are not necessarily
indicative of future performance, which may be significantly less favo accuracy or completeness of such statements, estimates or projections and such statements, estimates and projections should not be refled upon as indicative of future value, or as a guarantee of value or future result