ST BARBARA LIMITED — Annual Report 2014

Aug 26, 2014

Presentation on the FY14 Financial Report and audio webcast

Bob Vassie, Managing Director & CEO, will brief analysts and institutional investors on the FY14 Financial Report at 1:00 pm Australian Eastern Standard Time (UTC + 10 hours) today, 27 August 2014. Participation on the conference call is by personal invitation only. A copy of the presentation is attached.

A live audio webcast of the briefing will be available on St Barbara's website at www.stbarbara.com.au/investors/webcast/ or by clicking here. The audio webcast is 'listen only' and does not enable questions. The audio webcast will subsequently be made available on the website.

Rowan Cole Company Secretary

BOB VASSIE, MANAGING DIRECTOR & CEO / 27 August 2014

FY14 Financial Presentation

This presentation has been prepared by St Barbara Limited ("Company"). The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. This presentation is not financial product or investment advice. It does not take into account the investment objectives, financial situation and particular needs of any investor. Before making an investment in the Company, an investor or prospective investor should read this document in its entirety, consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances, seek legal and taxation advice appropriate to their jurisdiction and consult a financial adviser if necessary. The Company is not licensed to provide financial product advice in respect of the Company's securities.

This presentation may contain forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and sale of gold. Forward-looking statements include those containing such words as anticipate, estimates, forecasts, should, will, expects, plans or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables and changes in underlying assumptions which could cause actual results or trends to differ materially. Nothing in this document is a promise or representation as to the future. Actual results may vary from the information in this presentation and any variation may be material. Past performance is not an indication of future performance. Statements or assumptions in this presentation as to future matters may prove to be incorrect and any differences may be material. The Company does not make any representation or warranty as to the accuracy of such statements or assumptions. Investors are cautioned not to place undue reliance on such statements.

This presentation has been prepared by the Company based on information available to it and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party.

The Company estimates its reserves and resources in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves 2012 Edition ("JORC Code"), which governs such disclosures by companies listed on the Australian Securities Exchange.

Financial figures are in Australian dollars unless otherwise noted. Financial year is 1 July to 30 June.

• ˃ St Barbara at a glance
• ˃ Safety
• ˃ Financial results
  • ˃ Results
  • ˃ Cash
  • ˃ Assets
  • ˃ Remuneration Report
• ˃ Operations
• ˃ Exploration
• ˃ FY15 Guidance
• ˃ Conclusion
• ˃ Appendices

St Barbara at a glance

4 / FY14 Full Year Financial Presentation 1. Source: IRESS, 25 Aug 2014 @ $0.1025

1. Refer ASX release 27 August 2014 'Ore Reserves and Mineral Resources Statements 30 June 2014'.

Total Recordable Injury Frequency Rate

Improving safety performance

• ˃ FY14 TRIFR1 of 4.1 is a significant improvement on 6.0 at 30 June 2013
• ˃ An outstanding result for a combination of underground and open pit operations in multiple jurisdictions
• ˃ TRIFR includes Pacific Operations from September 2012

• ˃ Result
  • ˃ Statutory loss after tax of $501 million, including impairment charge of $411 million after tax
  • ˃ Underlying net loss 1 after tax of $94 million
  • ˃ Underlying EBITDA 1 of positive $73 million
  • ˃ Leonora EBITDA 1 of $179 million
• ˃ Cash flow
  • ˃ Cash flow from operating activities of $20 million
• ˃ Capex of $89 million included:
  • ˃ Underground mine development and infrastructure at Leonora of $40 million
  • ˃ Sustaining capex on property, plant and equipment of $19 million
  • ˃ Project capex at Simberi of $27 million
• ˃ Balance sheet
  • ˃ Cash at 30 June 2014 of $81 million (included $2 million restricted cash)
  • ˃ Simberi operations written down substantially and Gold Ridge fully written down
  • ˃ Debt: Total A$340 million mainly US$250 million senior secured notes and US$75 million Red Kite debt facility (net of capitalised transaction costs), balance comprises of lease liabilities

FY14 Financial Summary

		FY14A$M	FY13A$M
	Averagegold price realised	A$1,412/oz	A$1,544/oz
	Result
˃	Statutory loss after tax	(501)	(192)
˃	Asset impairments & write downs after tax	(411)	(221)
˃	Underlying EBITDA 1	73	141
˃	Underlying EBIT 1	(36)	48
˃	1Underlying net(loss)/profit after tax	(94)	29
	Cash Flow
˃	Cash flows from operatingactivities	20	71
˃	after funding capex 2Cash inflows /(outflows)	(69)	(64)

1. Non-IFRS measure, refer slide 36

7 / FY14 Full Year Financial Presentation

2. Cash flows from operating activities less payments for PPE, development & capitalised exploration

• ˃ Leonora, Western Australia
  • ˃ Outperformed production guidance, continues to generate strong cash flow
• ˃ Simberi, Papua New Guinea
  • ˃ Continued to underperform, operating review underway
  • ˃ Processing plant expansion operating
  • ˃ Program to fully commission expansion and achieve target capacity by Dec
• ˃ Gold Ridge, Solomon Islands
  • ˃ Rain event and floods in April 2014 caused operations to be suspended with no resumption of operations possible for the remainder of 2014
  • ˃ Expenditures significantly reduced in line with decreased activity
  • ˃ Negotiations underway for potential transfer to Solomon Islands Government
• ˃ Exploration
  • ˃ Reduction in staff and expenditure in FY14
  • ˃ Focus on near mine oxide targets at Simberi in FY15
• ˃ Corporate
  • ˃ Cost reduction strategies have been implemented during FY14
  • ˃ New MD & CEO appointed, number of executives and Directors reduced in FY14
  • ˃ Cash management remains a key focus for the Company, further cost reductions planned in FY15

	FY14A$M	FY13A$M
Investment in operations
˃Capital expenditure	89	135
˃Discovery& Growthexpenditure	121	21

	Jun 2014	Jun 2013
Cash & debt
2˃Cash balance	81	129
˃Total interest bearing debt	340	328

9 / FY14 Full Year Financial Presentation

• 1. Includes $0.8M of redundancy costs
• 1. Includes $2M restricted cash (2013: $12M)

Key changes to underlying profit/(loss) in FY14

Underlying Profit/(Loss)1 after Tax Reconciliation

• Simberi and Gold Ridge operations produced a substantially higher loss in FY14
• Increased D&A was attributable to higher production at Leonora
• Net financing costs included interest on the Senior Secured Notes for the full year

Costs expense Other

• Corporate includes foreign currency movement ($7M), cost of consulting services and other revenues ($3M)
• Income tax expense movement due to de-recognition of deferred tax assets relating to Pacific Operations

1. Non-IFRS measure, refer slide 36

10 / FY14 Full Year Financial Presentation

Significant items in NPAT

Non-cash asset impairments and write downs

	Impairments at 30 June2014	SimberiA$M	Gold RidgeA$M
	Write down of assets
˃	Inventories	7	15
	Impairments
˃	PPE	94	87
˃	Mineral Rights	97	66
˃	Deferred mining costs	-	3
	Total beforetax	198	171
˃	Tax effect		-
	Total after tax	369

Impairments at 31 Dec 2013	SimberiA$M	Gold RidgeA$M
Total beforetax	1824
˃Tax effect	-
Total after tax	42

Figures rounded to nearest $M

• ˃ Total Pacific Operations impairment of $411M after tax in FY14
• ˃ Simberi impairment
  • slower than expected improvement in operational performance
  • write down of mineral rights (including sulphide opportunity)
• ˃ Gold Ridge
  • suspension due to flooding
  • mining unlikely to resume in 2014
  • fully written off

Assumptions: Gold Price (per ounce): 2015-2019: US$1,215-1,315 / A$1,397-1,413 2020+: US$1,200 / A$1,410 AUD:USD 0.93 declining to 0.85

Cash movement

• ˃ Non-executive Director changes
  • ˃ Directors fees reduced 10% in March 2014
  • ˃ No increase in Directors fees in FY15
  • ˃ Board reduced to 5 with 3 new Directors since FY13
• ˃ Executive management changes
  • ˃ Number of senior executives reduced from 6 to 3
  • ˃ No increase in senior executive fixed remuneration in FY14 & FY15
  • ˃ No Short Term Incentives payable to executives for FY14
  • ˃ New MD & CEO has fixed remuneration and STI opportunity approx. 20% lower than predecessor and Long Term Incentives reduced by approx. 25% for FY15
• ˃ First Strike received at 2013 AGM, not withstanding 69% of votes in favour

Operations

FY 14 Operations Summary

• ˃ Leonora Operations
  • ˃ Exceeded FY14 production guidance
  • ˃ Gwalia outlook remains strong with FY15 guidance similar to FY14 production at 180 to 200 koz.
  • ˃ King of the Hills mine life extended for all of FY15, at 60 70 koz

˃ Simberi

• ˃ Continued to underperform, operating review underway
• ˃ Processing plant expansion operating
• ˃ Program to fully commission expansion and achieve target capacity by Q4 June 2015

˃ Gold Ridge

• ˃ Gold Ridge remains suspended
• ˃ Asset value has been written down to zero
• ˃ Force Majeure conditions ongoing
• ˃ Plant placed on care and maintenance, expenditure substantially reduced
• ˃ Negotiating transfer to S.I. Government

FY15 Focus on adding to near mine resources

Ore Reserves & Mineral Resources at 30 June 2014

• ˃ Overall, ore reserves have been largely maintained.
• ˃ Gwalia Ore Reserves increased to 7.3 Mt @ 8.2 g/t Au for 1,914 koz (1,754 koz at 30 June 2013)

Ore Reserves and

Leonora, WA 44% Simberi, PNG 43%

% of Ore Reserves 1

1. Refer ASX announcement released 27 August 2014 titled 'Ore Reserves and Mineral Resources Statements 30 June 2014'

Gold Ridge, SI 13%2

1. Gold Ridge is reported with a general qualification that while economic based on the on-going mine plan, Gold Ridge Mining Limited (GRML) issued force majeure notices in April 2014 under the Mining Agreement as a result of the on-going suspension of operations. Refer ASX announcement in 1. for further detail.

19 / FY14 Full Year Financial Presentation

	Goldproduction	Cash operatingcost 1	Capex
	koz	A$/oz	A$M
Gwalia	180 –200	720 –750	45 –50
King of the Hills	60 –70	1,190 –1,240	15 –19
Simberi		To be advised (see next page)

• ˃ A detailed operating review of Simberi Operations is in progress.
• ˃ Previous capital expenditure at Simberi provides the base to underpin profitable operations
  • ˃ New low hour mining fleet achieving required mining rates
  • ˃ Plant expansion SAG Mill circuit operating
• ˃ Capital expenditure of an estimated $4 million over the next four months is necessary to assure required throughput rates in the processing plant (includes commissioning thickener and detox)
  • ˃ Improvement in asset management/maintenance practices especially on ore delivery and tailings infrastructure
• ˃ The targeted annualised gold production for Simberi remains 100,000 ounces.
  • ˃ Simberi is expected to be producing at this rate by the June 2015 quarter
• ˃ A further update will be provided in the September 2014 Quarterly Report.

• ˃ FY14 statutory loss of $501 million including impairments and write downs of $411 million
• ˃ $81 million cash at 30 June 2014 (includes $2 million restricted cash)
• ˃ Leonora (Gwalia + King of the Hills)
  • ˃ Sustained strong cash flow with FY14 EBITDA1 of $179 million
  • ˃ FY15F production 240-270 koz with Gwalia production higher in 2H15
• ˃ Gold Ridge fully written off, negotiating transfer to S.I. Government
• ˃ Hedging 153 koz at A$1,415 per ounce from October 2014 to 30 June 2015 protects liquidity and allows investment in performing assets
• ˃ Cash balance forecast to decline until Q2 Dec 14 and then stabilise
• ˃ Corporate costs and operational costs will reduce further in FY15

Appendices

Consolidated Production Summary

			Q1 SepFY14	Q2 DecFY14	Q3 MarFY14	Q4 JuneFY14	YearFY14	GuidanceFY14
	Gwalia	oz	53,230	52,552	49,148	59,389	214,319	180-195,000
nocti	Kingof the Hills	oz	12,893	17,205	16,837	19,421	70,711	55-60,000
udo	Gold Ridge	oz	17,236	14,912	15,690	-	45,121	75-90,000
Pr	Simberi	oz	12,927	8,908	10,847	12,755	44,251	45-50,000
	Consolidated	oz	107,363	93,577	92,522	91,565	374,402	355 -395,000
e	Gwalia	g/t	7.7	8.2	8.7	9.1	8.4
dGrad	Kingof the Hills	g/t	4.4	4.4	5.2	4.6	4.6
enMi	Gold Ridge	g/t	1.6	1.4	1.3	-	1.4
	Simberi	g/t	1.0	0.9	1.0	1.1	1.0
	Gwalia	$/oz	754	787	650	575	688	720 -750
ost 1,2hCasC	Kingof the Hills	$/oz	902	1,008	1,035	949	973	1,040–1090
gTotaln	Gold Ridge	$/oz	1,991	1,988	2,002	-	1,987	1,100 -1,190
eratip	Simberi	$/oz	1,874	2,577	2,269	1,958	2,136	1,850 –1,950
O	Consolidated	$/oz	1,102	1,189	1,139	847	1,070	1,000 -1,055

25 / FY14 Full Year Financial Presentation

• 1. Non IFRS measure, refer slide 36
• 1. Unaudited

Gwalia Mine, Leonora, WA

• ˃ Mineral Resources extend to 1,800 mbs, open at depth
• ˃ Indicative 9+ year mine life based on Ore Reserves1
• ˃ Mined grade in FY14 above reserve grade
• ˃ FY 14 all in sustaining costs A$940/ounce
• ˃ Deep drilling planned in FY15

1. Refer ASX announcement released 27 August 2014 titled 'Ore Reserves and Mineral Resources Statements 30 June 2014'

US$250 million Senior Secured Notes

• ˃ 6 monthly interest payments in arrears each April and October
• ˃ Interest payments fixed at 8.875% p.a.
• ˃ Matures April 2018
• US$75 million Red Kite debt facility
• ˃ No principal repayments until March 2015
• ˃ Eight equal quarterly principal repayments (ending November 2016)

Top 100 Shareholding Structure

Significant Shareholders 1

M&G Investment Mgt	13%
Baker Steel Capital Managers	7%
Franklin Resources Inc	7%

2Institutional Shareholders	62%
2Shares on issue	488M

Approved Depositary Receipts (ADR) are trading in USA

Broker Research Coverage

Baillieu Holst	Rob Craigie
Canaccord	Luke Smith
Deutsche Bank	Chris Terry
Evans and Partners	Cathy Moises
Ord Minnett	David Brennan

29 / FY14 Full Year Financial Presentation

• 1. As at 19 Aug 2014 as advised by shareholders.
• 1. As at 30 July 2014.

Mineral Resources Summary as at 30 June 2014

and

Refer ASX announcement released 27 August 2014 titled 'Ore Reserves and Mineral Resources Statements 30 June 2014' available at www.stbarbara.com.au for full details.

Major sources of variance to Mineral Resource Inventory between FY13 and FY141

31 FY14 Full Year Financial Presentation

1. Refer ASX announcement released 27 August 2014 titled 'Ore Reserves and Mineral Resources Statements 30 June 2014'

Mineral Reserves Summary as at 30 June 2014

and

Refer ASX announcement released 27 August 2014 titled 'Ore Reserves and Mineral Resources Statements 30 June 2014' available at www.stbarbara.com.au for full details.

* Changes include Geology, Design and Factor Changes

1. Refer ASX announcement released 27 August 2014 titled 'Ore Reserves and Mineral Resources Statements 30 June 2014'

Rowan Cole Company Secretary

Garth Campbell-Cowan Chief Financial Officer

T: +61 3 8660 1900 E: info@stbarbara.com.au

Exploration Results

The information in this presentation that relates to Exploration Results is based on information compiled by Dr Roger Mustard, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Mustard is a full-time employee of St Barbara Ltd and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Mustard consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

Mineral Resource and Ore Reserve Estimates

The information in this presentation that relates to Mineral Resources or Ore Reserves is extracted from the report titled 'Ore Reserves and Mineral Resources Statements 30 June 2014' released to the Australian Securities Exchange (ASX) on 27 August 2014 and available to view at www.stbarbara.com.au and for which Competent Person's consents were obtained. The Competent Person's consents remain in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 27 August 2014 and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original ASX announcement.

Dr Mustard and Mr de Vries are entitled to participate in St Barbara's long term incentive plan, details of which are included in the 2013 Annual Report and Notice of 2013 Annual General Meeting released to the ASX on 18 October 2013. Increase in Ore Reserves is one of the performance measures under that plan.

Refer ASX release 27 August 2014 'Ore Reserves and Mineral Resources Statements 30 June 2014' available at www.stbarbara.com.au.

Non-IFRS Measures

We supplement our financial information reporting determined under International Financial Reporting Standards (IFRS) with certain non-IFRS financial measures, including cash operating costs. We believe that these measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance.

Cash operating costs	˃	CalculatedaccordingtocommonminingindustrypracticeusingTheGoldInstitute(USA)ProductionCostStandard(1999revision).
All-In Sustaining Cost	˃	All-InSustainingCostisbasedonCashOperatingCosts,andaddsitemsrelevanttosustainingproduction. Itincludessome,butnotall,ofthecomponentsidentifiedinWorldGoldCouncil'sGuidanceNoteonNon-GAAPMetrics-All-InSustainingCostsandAll-InCosts(June2013).
EBIT	˃	EBIT is earnings before interest revenue, finance costs and income tax expense. Itincludes revenues and expenses associated with discontinued operations.
EBITDA	˃	EBITDA is EBIT before depreciation and amortisation. It includes revenues andexpenses associated with discontinued operations.
Significant Items	˃	ItemsincludedinIFRSNetProfitAfterTaxthattheBoardandManagementconsidermaynotbeindicativeof,orareunrelatedto,coreoperatingresults(suchasprofitorlossongoldoptions,orthesaleoftenementrights)
Underlying Net profit/(loss)	˃˃	Refer2014FinancialReport(p4)fordetails,availableatwww.stbarbara.com.auNet profit after tax excludingidentified significant items
after tax	˃	Refer 2014 Financial Report (p4) for details, available at www.stbarbara.com.au