ST BARBARA LIMITED — Capital/Financing Update 2004

Feb 10, 2004

STRATA MINING CORPORATION LIMITED

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 7654

10 February 2004

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

Dear Sir.

Financing Arrangements and Investments

Strata Mining Corporation Limited ("Strata") advises that it has arranged a financing facility through Claymore Capital Pty Ltd for the provision of a \$2 million loan secured by 4 million common shares in Defiance Mining Corporation. Strata may repay all of the outstanding loan and interest by 16 October 2004, and/or the lender may elect to convert its debt into securities held by Strata, being its holding in Defiance Mining Corporation common shares, or shares in St Barbara Mines Limited at the market price as provided by the loan agreement.

This facility has been put in place by Strata to underpin Strata's corporate strategy of utilising its current investments to acquire further investment opportunities in the gold mining sector, as well as other high growth businesses.

Strata has to date sought out investment opportunities which have resulted in its significant holding in St Barbara Mines Limited and Defiance Mining Corporation. Strata wishes to pursue further opportunities without necessarily disposing of those holdings at this time.

As a consequence, utilising the value attached to those investments, Strata has secured the existing financing arrangement.

Currently, Strata is undertaking significant work in relation to three projects, one of which has been finalised and involved Strata being granted a secured convertible note which entitled it to acquire a 35% interest in Cell Aquaculture Limited ("Cell") upon the completion of a \$3 million financing. Cell is an unlisted public company seeking to expand its business in the United Kingdom and Europe and Strata's objective is to assist Cell in proceeding towards a stock exchange listing.

The other two projects being pursued are in relation to advanced gold mining opportunities, one of which is in Australia and the other in Europe.

The Board of Strata believes that significant value-adding will accrue from its current strategy, not only through the fundamental potential of the projects being pursued, but also through Strata's objective to obtain strong entry positions.

Stephen W. Miller Chairman