ST BARBARA LIMITED — Capital/Financing Update 2003

Sep 24, 2003

ST BARBARA MINES LIMITED

ACN 009 165 066

$\overline{ASX}$ SHAREHOLDERS REPORT

Enquiries regarding this report may be directed to:

Stephen W. Miller

Executive Chairman Telephone (08) 9476 5555 Overseas +61 8 9476 5555 $\alpha r$ 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.

Private Placement

St Barbara Mines Limited advises it has entered into an agreement with Claymore Capital Pty Ltd to place up to 12 million fully paid ordinary shares (with a minimum of 6,250,000) at an issue price of $0.08 per share. The allottees for this placement will be clients of Claymore Capital Pty Ltd.

The placement proceeds will be used in relation to the Company's Paddys Flat project and for general working capital purposes.

Sterhen W. Miller Executive Chairman

25 September 2003