ST BARBARA LIMITED — Capital/Financing Update 2003

Jun 29, 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.

Share Placement of 26 June 2003

As announced by the Company on 26 June 2003, St Barbara Mines Limited ("St Barbara") has made a placement of 15,000,000 fully paid ordinary shares at 6.67 cents per share to raise \$1,000,500 before issue expenses. These shares were allotted and issued on Thursday, 26 June 2003.

Secondary Trading

Significant changes to the secondary trading provisions of the Corporations Act 2001 (Cwlth) ("Act") came into effect on 11 March 2002 as a result of the Financial Services Reform Act 2001 (Cwlth). These changes have the potential to restrict the secondary sale of securities issued without a disclosure document.

ASIC Class Order

On 7 and 15 March 2002, the Australian Securities and Investments Commission (ASIC) issued Class Orders 02/0272 and 02/334 (together, Class Order) altering the secondary trading provisions of the Act in specified circumstances. The Class Order applies to securities issued in certain circumstances in the period from 11 March 2002 to 11 September 2002. The Class Order modifies sub-sections 707(3) and 707(4) of the Act to remove their extended application to certain secondary sales by reinstating the former wording of sub-sections 707(3) and 707(4) of the Act as in force immediately prior to 11 March 2002.

Category of Relief

The issue of the St Barbara shares referred to above will fall within Category 5 of Schedule C of the Class Order and, accordingly, the Class Order relief is available in respect of the placement.

For the purposes of Item (4) of Category 5, Schedule C of the Class Order, St Barbara hereby notifies the ASX that there is no information to be disclosed of the kind that would be required to be disclosed under subsection 713(5) of the Act if a prospectus were issued in reliance on section 713 in relation to an offer of St Barbara securities.

Reliance Notice

A Reliance Notice in accordance with the Class Order will shortly be provided to the ASIC.

Company Secretary

30 June 2003