ST BARBARA LIMITED — Capital/Financing Update 2003

Jul 9, 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

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.

Convertible Note and Convertible Loan Restructure

Pursuant to the convertible note and convertible loan held by Ocean Resource Capital Holdings Limited ("ORCH"), the Company wishes to advise that it has restructured the arrangement with ORCH. Under the new arrangement the convertible note and the convertible loan are replaced with a convertible loan with a face value of A\$7.2 million and a conversion price of 8 cents per share. ORCH's ability to convert into ordinary shares will require shareholder approval.

Alan Rule Company Secretary

10 July 2003