ST BARBARA LIMITED — Capital/Financing Update 2008

Jun 19, 2008

ASX Shareholders Report

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St Barbara

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St Barbara Limited ACN 009 165 066 Level 21, 90 Collins Street, Melbourne Vic 3000 Telephone +61 3 8660 1900 Facsimile +61 3 8660 1999 Email melbourne@stbarbara.com.au Website www.stbarbara.com.au

Adjustment to Conversion Price for Convertible Notes

Entitlement Offer and Institutional Placement

On 10 June 2008, St Barbara Limited (St Barbara) announced that it proposed to undertake a 2 for 7 pro‐rata accelerated renounceable entitlement offer to shareholders (the Entitlement Offer) and Placement (together the Offer) to raise A$120 million and instigated a trading halt in respect of its shares listed on ASX over the four day trading period from 10 June 2008 to 13 June 2008 inclusive.

The funds raised under the Offer will be used to:

• Sustain the current higher level of exploration activities in line with the strategy to increase Ore Reserves;

• Undertake improvements at the Southern Cross processing plant to improve productivity and efficiency;

• Fund the remaining capital expenditure for the development of the Gwalia gold mine and related operations and infrastructure; and

• Support working capital requirements.

On 13 June 2008, St Barbara advised that it has successfully completed the institutional component of the Entitlement Offer and the Institutional Placement. The Retail Entitlement Offer and Retail Bookbuild is still to be completed.

Effect on conversion price of the Convertible Notes

St Barbara has A$100 million convertible notes (the Notes) on issue, which are listed on the Official List of the SGX‐ST Mainboard. The initial conversion price of the Notes was A$0.7261 per share.

As a result of the Terms and Conditions on which the Notes were issued, and the Listing Rules of the ASX, the conversion price of the Notes will vary as a result of the Offer.

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ASX Shareholders Report

Notification of adjustment to conversion price

As required under the Rules of the SGX‐ST Mainboard, the ASX Listing Rules and the Terms and Conditions of the Notes, St Barbara advises that, as a result of the Offer, the conversion price will be adjusted from A$0.7261 to A$0.67 (an adjustment of A$0.0561) with effect from completion of the Retail Entitlement Offer.

Investment Market & Media Enquiries

Eduard Eshuys, Managing Director and CEO +61 3 8660 1910

Delphine Cassidy, General Manager Investor Relations +61 3 8660 1902

20 June 2008

This document is not a prospectus and does not constitute an offer of securities. The offer of shares will only be made in, or accompanied by, a copy of the prospectus which will be sent to eligible shareholders. Eligible retail shareholders wishing to acquire New Shares should consider the prospectus and will need to complete the personalised entitlement and acceptance form that will accompany the prospectus.

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

The entitlements and New Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act), or any U.S. state or other securities laws. The entitlements and the New Shares may not be offered, sold or otherwise transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

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