ST BARBARA LIMITED — Capital/Financing Update 2008

Jun 15, 2008

ASX Shareholders Report

==> picture [82 x 81] intentionally omitted <==

St Barbara

==> picture [145 x 46] intentionally omitted <==

==> picture [145 x 125] intentionally omitted <==

==> picture [145 x 96] intentionally omitted <==

==> picture [145 x 135] intentionally omitted <==

==> picture [145 x 46] intentionally omitted <==

Institutional Support for St Barbara’s A$120 million pro‐rata entitlement offer and institutional placement

St Barbara Limited (St Barbara) today advised that it has successfully raised A$63.4 million from the institutional component of its 2 for 7 pro‐rata accelerated renounceable entitlement offer to shareholders (the Entitlement Offer) and Institutional Placement (together the Offer).

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.

St Barbara announced the Offer on 10 June 2008 and instigated a trading halt over the four day trading period from 10 June 2008 to 13 June 2008 inclusive.

143,569,522 New Shares will be issued under the institutional component of the Entitlement Offer (Institutional Entitlement Offer) and associated bookbuild, raising A$57,427,809 at the offer price of A$0.40 per New Share.

The Institutional Bookbuild was conducted on 12 and 13 June 2008. The clearing price for the bookbuild shares was A$0.40 per New Share, which is equal to the A$0.40 offer price and a 23.7 per cent discount to the theoretical ex‐entitlement price, calculated using A$0.56 as the pre‐issue share price.

15,000,000 New Shares will be issued under the Institutional Placement, raising A$6 million at the offer price of A$0.40 per New Share.

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

G:\Corporate\Company Secretarial\Equity raising\May 2008 ‐ Project Barden\ASX releases\ASX release_2.doc

ASX Shareholders Report

The New Shares from the Institutional Entitlement Offer, the Institutional Bookbuild and the Institutional Placement are expected to be issued on 24 June 2008 and are expected to commence trading on the ASX on the same day.

Retail Entitlement Offer and Retail Bookbuild

The balance of up to 140,537,509 New Shares are expected to be issued under the retail component of the Entitlement Offer (the Retail Entitlement Offer) and associated bookbuild, raising up to A$56,215,004.

The Retail Entitlement Offer is being made pursuant to a prospectus to be lodged today with the Australian Securities and Investments Commission (the Prospectus) and is open for eligible retail shareholders in Australia and New Zealand. A copy of the Prospectus will be mailed to eligible retail shareholders on the St Barbara share register as at the Record Date of 7.00pm (AEST), Friday, 13 June 2008.

The terms of the Retail Entitlement Offer are the same as under the Institutional Entitlement Offer: eligible retail shareholders will be entitled to subscribe for 2 New Shares for each 7 St Barbara shares held at the Record Date at the offer price of A$0.40 per New Share. The offer price represents a discount of 28.6 per cent to $0.56, the closing price of St Barbara’s shares on Friday, 6 June 2008 (the last day of trading before St Barbara announced the Offer) and a 23.7 per cent discount to the theoretical ex‐entitlement price, calculated using A$0.56 as the pre‐issue share price.

Any eligible retail shareholder who wishes to acquire New Shares under the Retail Entitlement Offer will need to complete the personalised entitlement and acceptance form that will accompany the Prospectus.

The Retail Entitlement Offer opens Monday, 16 June 2008, and is expected to close at 5.00pm (AEST) on Friday, 4 July 2008.

Eligible retail shareholders may choose to take up their entitlement in whole, in part or not at all. A number of New Shares equivalent to those which would have been issued on the exercise of the entitlements not taken up and those which would have been issued to retail shareholders who are ineligible to participate in the Retail Entitlement Offer, will be offered for subscription to selected institutional investors through a bookbuild process commencing on or around Thursday, 10 July 2008 (the Retail Bookbuild).

Any positive difference between the Retail Bookbuild price and the offer price of the New Shares will be paid to the retail shareholders who did not take up their entitlement or who were ineligible to participate in the Retail Entitlement Offer.

The Offer is fully underwritten by Macquarie Capital Advisers Limited (the Lead Manager and Underwriter).

Information Line

If you are a retail shareholder and you have any questions on your entitlement or whether you are eligible to participate in the Retail Entitlement Offer, please call the St Barbara Offer Information Line on 1300 653 935 (local call cost from within Australia) or +61 3 9415 4356 (from outside Australia).

G:\Corporate\Company Secretarial\Equity raising\May 2008 ‐ Project Barden\ASX releases\ASX release_2.doc

ASX Shareholders Report

Key Dates of the Retail Offer

Key Dates of the Retail Offer	Key Dates of the Retail Offer
Record DateFriday, 13 June 2008(7:00pm)Lodgement of Prospectus for Retail Entitlement OfferFriday,13June 2008Retail Entitlement Offer opensMonday,16June2008Prospectus dispatched to eligible retail shareholdersFriday,20June 2008Retail Entitlement Offer closesFriday, 4 July 2008(5:00pm)Retail BookbuildThursday,10July2008Settlement of Retail Entitlement Offer and Retail BookbuildWednesday, 16 July2008Issue of New Shares under the Retail Entitlement Offer and RetailBookbuildThursday,17July2008
Normal trading of New Shares issued under the Retail Entitlement Offerand Retail Bookbuild expected to commence on ASX	Thursday,17July2008
Dispatch of payment (if any) in respect of entitlements not accepted underthe Retail Entitlement Offer	Monday, 21 July 2008
Holdingstatements expected to be dispatched	Monday,21July2008
These dates are indicative only and subject to change. All times and dates refer to Australian Eastern StandardTime

Investment Market & Media Enquiries

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

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

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.

G:\Corporate\Company Secretarial\Equity raising\May 2008 ‐ Project Barden\ASX releases\ASX release_2.doc