ST BARBARA LIMITED — Capital/Financing Update 2003

Jun 26, 2003

ST BARBARA MINES LIMITED

ACN 009 165 066

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.

Placement and Convertible Note exercise

The Company has placed 15 million shares to a UK institution at a price of 6.67 cents (at a substantial premium to the current market price) to raise a net \$1.0 million.

Ocean Resource Capital Holdings Limited has exercised early, at a price of 13 cents per share, 15 million shares pursuant to the convertible note issued February 2003 (and convertible up to 31 December 2007). Shares allotted pursuant to this exercise were approved by shareholders at the 6 June 2003 General Meeting.

The proceeds of the aforementioned funds are for working capital.

Sterhen W. Miller Executive Chairman

27 June 2003