ST BARBARA LIMITED — Capital/Financing Update 2009

Feb 22, 2009

ABN 36 009 165 066

St Barbara Limited

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23 February 2009

Successful Completion of Institutional Placement

St Barbara Limited has successfully completed an institutional placement raising $75 million (net of costs) at an issue price of 41 cents per share.

There was strong demand, with 189,600,000 ordinary shares to be issued at a final price of $0.41 per share. The placement was oversubscribed at this price.

The issue price represents a 9.8% discount to the volume weighted average price (VWAP) of 45.4 cents per share on 18 February 2009, the day immediately prior to the trading halt.

Southern Cross Equities was lead manager of the placement. Both existing and new institutional shareholders, domestically and internationally, participated in the offer.

The net proceeds from the placement of $75 million will provide St Barbara with a strengthened balance sheet and funds that will enable it to:

• partially buy back St Barbara’s convertible notes currently on issue at an appropriate discount; and/or

• fund their later potential redemption (noteholders have an early bond redemption right on 4 June 2010, and otherwise the convertible notes mature on 4 June 2012).

Further details of the convertible notes are contained in the announcement of 19 February 2009.

The Company has requested that ASX lift the trading halt before the market opens on Monday 23 February 2009. New shares will commence trading on 4 March 2009.

Convertible Notes

There is no adjustment to the conversion price of the Company’s convertible notes.

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Eduard Eshuys

Managing Director & CEO

For any additional information, please contact Mr Ross Kennedy, Company Secretary, on 61(3) 8660 1900.

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 1999