ST BARBARA LIMITED — Capital/Financing Update 2004

Sep 22, 2004

ASX RELEASE

23 September 2004

Company Announcements Office Australian Stock Exchange Limited 20 Bridge St SYDNEY NSW 2000

Dear Sir

ACTIVITY UPDATE

The Company is pleased to advise that statutory approvals for the development of the NOA2 underground resource have now been received. This project is part of the Burnakura Joint Venture (BJV) between Extract Resources and Tectonic Resources NL. Tectonic are managing the mining on behalf of the BJV.

Through a toll milling agreement with St Barbara Mines Limited (SBM), it was the intention to process the NOA2 ore through the Bluebird Gold Plant (a haulage distance of 40 km). SBM recently announced that this plant has ceased milling and has been placed on care and maintenance. Whilst the plant could be operated on a stop-start basis, utilization by the Burnakura Joint Venture would initially only account for approximately 20% of the plant's capacity. The resultant efficiencies and additional cost to batch campaign the ore on this basis are being considered, along with other potential milling options.

Discussions with SBM's new management to vary the agreement have taken place, in which a number of issues still need resolution. The Company is also considering alternatives to process the ore at other mills in the region. Mobilisation and set-up has occurred on site at NOA2, however mining may be delayed pending confirmation of the preferred milling option.

The Company also confirms that it has disposed of 2.5m shares in Tectonic Resources NL yielding net \$750,000. These were a part of the issue of 5m shares to Extract pursuant to Tectonics acquisition of their interest in the Burnakura Project. Extract retains the balance of 2.5m shares.

Yours sincerely

Peter McIntyre MANAGING DIRECTOR