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ST BARBARA LIMITED Capital/Financing Update 2006

Jan 31, 2006

65749_rns_2006-01-31_03963ee1-f2ff-406d-a3f4-e4282f98fa54.pdf

Capital/Financing Update

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ASX SHAREHOLDERS

REPORT

St Barbara Limited

Enquiries regarding this report may be directed to:

Eduard Eshuys Managing Director & CEO

St Barbara Limited ACN 009 165 066 Level 2, 16 Ord Street West Perth WA 6005 Telephone Company +61 8 9476 5555 Facsimile $-461894765500$ Email Service [email protected] www.stbarbara.com.au Website.

Sale of Meekatharra Assets

The Company has today completed the sale of its Meekatharra assets to Mercator Gold plc (Mercator) for value of AUD$21M [USD$15.8M].

The consideration for the sale comprised:

ΑЪ
Cash 5M
Assumption of environmentalbonds 3M
Value of shares in Mercator @UK 50p per share 13M
21 M

The number of Mercator shares issued to the Company is 11,016,949. The shares will be held in escrow for 12 and represent approximately 24.4% months. of Mercator's fully diluted issued capital.

Eduard Eshuys Managing Director & CEO

31 January 2006