ST BARBARA LIMITED — Capital/Financing Update 2009

Sep 30, 2009

ASX Announcement

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St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne Vic 3000 Telephone +61 3 8660 1900 Facsimile +61 3 8660 1999 Email @stbarbara.com.au Website .stbarbara.com.au

Issue of Employee Options with Performance Hurdles

to Managing Director & CEO

1 October 2009

A total of 5,857,320 employee options are proposed to be granted to Mr Tim Lehany, Managing Director and CEO in respect of the fiscal year 2010 Long Term Incentive allocation, subject to shareholder approval.

The exercise price of $0.306 per option was calculated as the volume weighted average price measured over the 10 business day period immediately preceding 23 September 2009,

Key terms are as follows:

Grant Date:	with effect from 23 September 2009 subject to
	shareholder approval
Vesting date:	23 September 2012
Expiry date:	23 September 2014
Exercise price:	$0.306 per option

Prior shareholder approval of the options will be sought at St Barbara Limited’s 2009 Annual General Meeting to be held on Thursday 19 November 2009.

Conditions of options vesting include continued employment as at the vesting date and a performance hurdle based on Relative Total Shareholder Returns:

Relative TSR Performance Over Measurement Period	% of Right to Vest
<50thpercentile	0%
50thpercentile	50%
>50th& <75thpercentiles	Pro-rata between 50% & 100%
75thpercentile and above	100%

Relative Total Shareholder Returns will be measured from the date of grant up to and including 23 September 2012, compared with the total shareholder returns for a defined peer group of companies over the same period of time. The peer group and TSR performance measures are the same as applied to the employee options granted in respect of the 2009 fiscal year. Details of the peer group are set out in Schedule 1 attached.

The issue of employee options is consistent with established remuneration principles for St Barbara Limited senior executives. The vesting conditions align potential rewards for the executive team with the creation of relative value for our shareholders .

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Ross Kennedy Executive General Manager Corporate Services/ Company Secretary

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ASX Announcement

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Schedule 1

The peer group against which Total Shareholder Return is measured comprises:

Company	Company
Newcrest Mining Limited Lihir Gold Limited Sino Gold Mining Limited Kingsgate Consolidated Limited Avoca Resources Limited	Independence Group NL Dominion Mining Limited Lion Selection Limited Apex Minerals NL OceanaGold Corporation

The Board reserves the right to make minor changes to the peer group to allow for changing circumstances (e.g. takeover) for peer group companies.

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G:\Corporate\Company Secretarial\ASX\2009\working drafts\091001_ ASX_MD Employee Options_Final.DOC