ST BARBARA LIMITED — Capital/Financing Update 2007

Aug 29, 2007

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St Barbara Limited

St Barbara’s New Discovery at Tower Hill, Leonora WA

Highlights

• Newly discovered high grade mineralisation at Tower Hill, 2 km from the Gwalia mill

• True width intersections of 40m @ 6.0g/t and 30m @ 7.2g/t at depths of 250‐300m

• Potential for open pit and underground mining

• Studies to look at resource development and expanding Gwalia mill

Tower Hill lies 2 kilometres north of the Company’s Gwalia gold treatment plant. The plant is being refurbished as part of the redevelopment of Gwalia which is scheduled to commence gold production in the September 2008 quarter.

Previous open pit mining at Tower Hill ceased in 1989 and recovered approximately 176,000 ounces to a depth of 80 metres. The gold mineralisation at Tower Hill is quartz‐hosted, with many similarities to Gwalia.

Gwalia has a strike length of 500m and extends to at least 1800m below surface at around a 45[o] dip to the east. The current resources of 4.1 million ounces and historic production of 4 million ounces for total endowment of 8.1 million ounces has established Gwalia as a world class gold deposit.

Tower Hill has a 1,000m strike length, dipping at 40[o] to the east. Previous drilling shows continuity of mineralization to vertical depths of 200m.

The results suggest not only an opportunity for an open pit cut back but also significant potential for underground mining. The mineralization is open at depth and both to the north and south.

Drilling activity has been increased to four rigs, with an intense campaign aimed at delineating an Indicated Resource at Tower Hill by the end of December 2007.

Parallel studies of how best to develop a resource at Tower Hill are underway, given its proximity to the Gwalia plant. Although the Gwalia plant would be underutilized by underground production solely from Gwalia, the potential size of Tower Hill may require expansion of the plant. Based on the history of the Tower Hill deposit there are not expected to be any significant issues with metallurgical recoveries.

The possibility of commencing gold production from Tower Hill by mid 2008 is now being assessed.

Recent RC and diamond drilling extended the mineralization to at least 350m depth and achieved true width intersections of 40m @ 6.0g/t and 30m @ 7.2g/t at depths of 250‐300m which indicates an apparent improvement in gold grades with depth. See attached Figures 1, 2 , 3 and 4 and Table 1 for more details.

Tower Hill has the capability to be a significant contributor to the Company’s growth plans.

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Eduard Eshuys Managing Director & CEO 30 August 2007

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St Barbara Limited

SIGNIFICANT TOWER HILL INTERCEPTS

SIGNIFICANT TOWER HILL INTERCEPTS	SIGNIFICANT TOWER HILL INTERCEPTS	SIGNIFICANT TOWER HILL INTERCEPTS	SIGNIFICANT TOWER HILL INTERCEPTS	SIGNIFICANT TOWER HILL INTERCEPTS	SIGNIFICANT TOWER HILL INTERCEPTS	SIGNIFICANT TOWER HILL INTERCEPTS
Hole ID	Northing mN	Easting mE	Dip/Azi	From m	Interval m	Gradeg/t
TWRC0161	6802340	336700	-75/270	194	40	6.0
TWDD0096	6802340	336870	-65/270	294	30	7.2
and				327	9	1.2
TWRC0005	6801940	336735	-63/270	170	36	2.7
TWRC0007	6801960	336725	-50/270	162	42	2.1
TWRC0088	6802020	336710	-60/275	155	39	2.2
TWDD0095	6802400	336850	-60/270	285	25	3.4
TWDD0172	6802280	336880	-87/257	328	22	3.3
TWRC0164	6802040	336665	-60/270	143	21	3.2
TWRC0155	68021780	336730	-57/272	191	39	1.5
TWRC0156	6802140	336760	-75/267	211	10	5.8
and				229	11	1.0
TWRC0152	6802100	336760	-70/268	198	18	3.2
and				242	5	3.4
TWDD0170	6802340	336875	-87/270	338	26	2.2
TWRC0154	6802140	336747	-55/270	196	26	2.1
and				229	10	3.0

Table 1.

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Figure 1. Tower Hill 2 km from Gwalia Mill

The information contained in this report relating to drilling results and resources has been compiled by Mr Peter Thompson.

Mr Thompson is a member of the Australasian Institute of Mining and Metallurgy, and is a full-time employee of the Company. Mr Thompson has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Thompson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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St Barbara Limited

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Figure 2.

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St Barbara Limited

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Figure 3.

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Figure 4. Tower Hill Aerial View

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