ST BARBARA LIMITED — Capital/Financing Update 2009

Feb 18, 2009

19 February 2009

St Barbara launches A$70 to A$75 million institutional placement

uested the ASX to halt trading in its shares stors to raise St Barbara Limited announces it has req so it can undertake a private placement of shares to sophisticated inve between A$70 and A$75 million after expenses.

d, St Barbara espect of the on 8% convertible notes due 2012, convertible into ordinary shares (currently at 67 cents per share) and intends to use the proceeds of the placement to t will enable it As foreshadowed in our letter dated 16 February 2009 to ASX Limite has reviewed strategies of how best the Company can proceed in r A$99.6 milli provide the Company with a strengthened balance sheet and funds tha to

• y back the convertible notes at an appropriate discount; and/or • partially bu
• early bond notes mature • fund their later potential redemption (noteholders have an redemption right on 4 June 2010, and otherwise the convertible on 4 June 2012)

sociated with ome or all of the notes in June 2010 and reduces A buy-back of the convertible notes will reduce the refinancing risk as the potential redemption of s financing costs.

by Southern The placement price will be determined by a book build being conducted Cross Equities on a non-underwritten basis.

a trading halt until the opening of trade on Monday 23 February 2009. St Barbara's ordinary shares are expected to be in

The Company has today separately provided preliminary guidance for its half year results to 31 December 2008 by way of a Trading Update. The guidance outlined in the Update is preliminary in nature and is based on unaudited accounts and the carrying values of the Company's assets. As such, it remains subject to finalisation by St Barbara and review by the Company's external auditor.

Eduard Eshuys 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 1999

G:\Corporate\Company Secretarial\Equity raising\2009 February Project Berkeley\Placement announcement_Final.DOC

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

that is, or is acting unt or benefit of, any U.S. person (as defined in Regulation S under the United States Securities Act of h an offer would be the Securities Act, ersons unless the s of the Securities This release does not constitute an offer of shares for sale in the United States, or to any person for the acco 1933, as amended (the "Securities Act")) ("U.S. Person"), or in any other jurisdiction in which suc illegal. St Barbara's shares and the shares under the Placement have not been registered under and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. P shares are registered under the Securities Act or an exemption from the registration requirement Act is available.

cable jurisdictions. ch as "may", "will", ", "guidance" or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of St Barbara, and its officers, employees, agents or associates. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements and St Barbara assumes no obligation to update such information. This release includes "forward-looking statements" within the meaning of securities laws of appli Forward-looking statements can generally be identified by the use of forward-looking words su "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "outlook