ST BARBARA LIMITED — Capital/Financing Update 2003

Jan 8, 2003

STRATA MINING CORPORATION NL

ACN 008 021 118

SUITE 4/10 CANNING HIGHWAY SOUTH PERTH WA 6151

Postal: PO BOX 980 SOUTH PERTH WA 6151

PH: (08) 9367 8295 FAX: (08) 9367 8305

9 January 2003

The Company Announcements Office Australian Stock Exchange Level 10, 20 Bond Street SYDNEY NSW 2000

AUSTRALIAN STOCK EXCHANGE STT000113

Fax: 1 300 300 021

Dear Sir

RE: AGREEMENT TO SELL SHARES IN MIDAS GOLD PLC BUSINESS COMBINATION AND ACQUISITION - ST BARBARA MINES LIMITED AND GEOMACQUE EXPLORATIONS LIMITED

In an announcement today, St Barbara Mines Limited (ASX Code SBM) has announced a merger by scheme of arrangement whereby the shareholders of St Barbara Mines Limited will receive shares in a new company, Defiance Mining Corporation, a Canadian incorporated, international gold mining, mine development and exploration company.

Concurrently Strata has entered into an agreement with Geomaque Exploration Limited to transfer the 23 million Fully Paid Ordinary Shares together with 11.5 million Options which it owns in Midas Gold PLC to Geomaque Exploration Limited. The consideration is the issue of 10,120,000 common shares in Defiance Mining Corporation with a transaction value of A\$9.4 million.

Furthermore, based on the transaction value of A\$0.21 for each St Barbara Mines Limited Share the value of Strata's proforma shareholding in Defiance Mining Corporation is A\$17 million.

Yours faithfully

MARK MJ SMITH COMPANY SECRETARY