ST BARBARA LIMITED — Capital/Financing Update 2009

Mar 26, 2009

ASX Announcement

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St Barbara

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ST BARBARA BUYS BACK

$22.5 MILLION OF CONVERTIBLE NOTES AT A DISCOUNT

27 March, 2009

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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

On 18 March 2009, the Company advised its intention to conduct a tender offer for up to $50 million face value of the 8 % Convertible Notes due 2012.

Following the closure of the tender offer acceptance process on 25 March 2009, the Company has accepted offers from holders of $22.5 million of notes (out of $99.6 million of notes on issue) at a price of 94 cents in the dollar, inclusive of 2.6 cents accrued interest. Settlement of the buy back of the convertible notes for a total of $21.15 million (inclusive of accrued interest) will occur on 31 March 2009.

Mr Tim Lehany, the Chief Executive and Managing Director of St Barbara stated that the Company was pleased to be able to buyback notes at a discount to face value.

“Value has been created for St Barbara shareholders as we have bought back notes at a discount. Not all note holders tendered their stock, and we are encouraged that they wish to retain their position in the Company. It is a good result for our Company all round”, Mr Lehany commented.

He also advised that following the cancellation of the notes there would be an accounting gain of $1.9 million (representing the discount and accrued interest), and an interest cash flow saving, including accrued interest on the notes bought back, of $2.7 million over the next 14 months.

Mr Lehany commented that the Company has the ability to fund further re‐purchases of the Convertible Notes at a discount before the June 2010 early redemption date or their ultimate maturity in June 2012, to create further value for St Barbara shareholders.

For information a copy of the announcement to Singapore Exchange Securities Trading Limited is attached.

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Ross Kennedy

General Manager Corporate Services and Company Secretary

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ASX Announcement

St Barbara Limited

ABN 36 009 165 066

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27 March 2009

OUTCOME OF INVITATION TO TENDER FOR REPURCHASE OF CONVERTIBLE NOTES

On 18 March 2009, the Company announced that it intended to repurchase for cash an aggregate principal amount of outstanding Notes in an amount to be determined by the Company at its sole discretion, in accordance with the terms and conditions contained in the Tender Offer Memorandum dated 17 March 2009 in relation to the Notes (“ Tender Offer Memorandum ”). The Notes are listed on the Singapore Exchange Securities Trading Limited.

Key outcomes are as follows:

• (i) The Final Aggregate Repurchase Amount (being the aggregate principal amount of the Notes accepted by the Company for repurchase on the Settlement Date) is A$22.5 million;

• (ii) Based on the Clearing Price of 94%, the aggregate cash amount payable by the Company based on the aggregate principal amount of the Notes it will repurchase on the Settlement Date is A$21.15 million; and

• (iii) The aggregate principal amount of the Notes remaining outstanding following completion of the Invitation to Tender is A$77.1 million.

Settlement Date for the Invitation to Tender is scheduled to occur on 31 March 2009.

The repurchase of Notes will be funded by a portion of the equity private placement that raised A$75 million (net of costs) conducted by the Company in February 2009. As a result of the Invitation to Tender there will be a net reduction of A$22.5 million in the principal amount of Notes outstanding.

Yours faithfully

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Tim Lehany Managing Director & CEO

LEVEL 21, 90 COLLINS STREET, MELBOURNE VIC 3000

LOCKED BAG 9, COLLINS STREET EAST VIC 8003

TELEPHONE + 61 3 8660 1900 FACSIMILE + 61 3 8660 199

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