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 $-61894765500$ Facsimile Email perth@stbarbara.com.au Website www.stbarbara.com.au

Chairman's 2006 Annual General Meeting Address

A copy of the address presented by Mr Colin Wise, Chairman, to the 2006 Annual General Meeting is attached.

Ross Kennedy Company Secretary

16 November 2006

CHAIRMAN'S ADDRESS

Annual General Meeting 16 November 2006

The resurgence of St Barbara continued during the 2006 financial year with success achieved across all Company activities - operations, exploration and These have been fully reported in the Company's ASX financially. announcements and the Annual Report.

In the 12 months since our last annual meeting. St Barbara's share price has risen from 28.5 cents on 15 November 2005 to 60 cents at the close of trade yesterday, a 111% gain. This compares with the 24% gain in the ASX Resources Index (which increased from 4,545 to 5,620) during the corresponding period.

World share markets have continued their strong performance over the past year, and the resources sector in Australia has attracted strong support, reflecting the continuing strength of the metals markets. During the 2005/06 year the average price per ounce of gold sold by St Barbara was A\$694.

The gold assets purchased last year from the Administrators of Sons of Gwalia have been rejuvenated, with St Barbara advancing its objective of establishing long-life mines at Gwalia Deeps and Marvel Loch.

The announcement in the September 2006 Quarterly Report of a 73% increase in the Indicated Resource at Gwalia Deeps strengthens the potential for this to be a significant long term gold mine.

Gwalia Deeps is reaching the concluding stages of a formal feasibility assessment, with the outcome scheduled for decision early in 2007.

We have largely completed an extensive drilling programme at Gwalia Deeps with a view to increasing the size of Reserves at an early date.

Two of the drill rigs have now been relocated to Marvel Loch and the Southern Cross area so that we can better assess the significant encouragement from recent drilling below past and current mining areas, also with a view to increasing the Reserves at an early date.

It is worth briefly reflecting on the status of the Southern Cross operations.

At the time of acquisition in March 2005, they were due to have closed at the end of November 2005, one year ago. The exploration and operational success we have since enjoyed has enabled the life of the operations to be

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extended until at least 2008, with a reasonable anticipation that a longer life can be secured, with increased annual production rates and reducing cash operating costs.

St Barbara's mid-term strategic objective is to establish a mining inventory which will enable production of gold commencing in the 2008/09 year at the rate of 450,000 ounces per annum at a cash operating cost of A\$450 per ounce.

The strong financial position of the Company will facilitate the drive to reach this goal.

Our exploration budget of A\$20 million during the current 2007 financial year is funded by internal cash flows and is a significant amount for a company of St Barbara's current size. In the current year, exploration expenditure is allocated between work designed to increase reserves and mine resources (A\$12 million), leaving A\$8 million to be spent on greenfields exploration.

St Barbara's landbank of granted tenements and tenement applications throughout Australia now comprises 12,000 square kilometres and our grassroots exploration is targeting gold, nickel, zinc and copper.

In May 2006, with the gold price rising to A\$924 per ounce, and with strong demand for our shares, a placement of 99 million shares was made at 60 cents per share, raising a net A\$57 million. A number of significant international and local institutions are now shareholders

The Company is now included in Standard & Poors ASX top 300 Index and our market capitalisation is approaching qualification for the S&P ASX top 200 Index.

The success of Company activities and our plans for future development have led to an increase in the size and depth of St Barbara's management team. During the last quarter, new positions of Chief Financial Officer, Treasurer, and Manager Mining, Southern Cross, were filled. We are also actively recruiting for another new senior management position - a Chief Operating Officer.

The composition of the Board is also changing. Last February we welcomed Doug Bailey as a non-executive director.

In recent months, we announced Mark Wheatley's departure to take up a CEO role in another mining company, and the retirement of Richard Knight effective in mid December, to enable him to reduce the intensity of some of his professional commitments.

Their presence and contribution will be missed. We thank Mark and Richard for their contributions and wish them well. Replacement non executive directors are now being sought.

We will be relocating St Barbara's corporate office to Melbourne early next January. We will continue to maintain a smaller Perth office as a service centre for our Western Australian activities.

As a consequence, the opportunity has arisen to change the Company's external auditors to the Melbourne based KPMG. This proposal will shortly be put to shareholders for approval, and if confirmed will see the retirement of .
PricewaterhouseCoopers as Company auditors.

We thank PwC for their considerable assistance to St Barbara over a long period, particularly in the past two years, as the Company has rapidly increased the size and intensity of its activities.

On behalf of the Board I would like to record with appreciation, the achievements of Ed Eshuys, his management team and all St Barbara employees. From a standing start two years ago when St Barbara's share price was 4.5 cents, they have managed a remarkable recovery performance which has placed the Company in its strong position today.

All at St Barbara will continue to meet the tasks ahead of us with energy and commitment, as we develop St Barbara into a leading Australian exploration, development and mining company. We look forward to continuing shareholder and investor support in these efforts.

I now invite the Managing Director and CEO. Ed Eshuys to outline the current position of St Barbara's exploration and operational activities and the program for the rest of this financial year. There will be time at the conclusion of the formal agenda of this meeting, for shareholders to ask questions.

Colin Wise Chairman