ST BARBARA LIMITED — Capital/Financing Update 2010

Sep 20, 2010

ASX Announcement ASX: JML

ASX028‐GC‐10 21 September

JAGUAR PROJECT STRIKE EXTENDED TO 50 KILOMETERS

Highlights:

• Acquisition of tenements along strike from the Jaguar Project
• VMS prospective strike now extends over 50 kilometres
• New tenure has VMS style Cu‐Zn‐Pb‐Ag mineralization intersected in historical drilling
• First time the ground package has been in one company

Jabiru Metals Limited ("Jabiru") has acquired additional tenure adjacent to, contiguous with and immediately along strike from the Jaguar Project. The additional tenure, including tenements purchased from St Barbara Limited ("St Barbara") for \$1.7 million, extends the Jaguar exploration project to 50 kilometres.

The 50 kilometres strike now covers the known extent of the vocanoclastic rock package considered prospective for volcanic massive sulphide (VMS) Cu‐Zn‐Pb‐Ag‐Au deposits similar to the Jaguar and Bentley deposits. This tenement package provides Jabiru with a unique exploration opportunity, being the first time the ground package has been owned by one company.

The new tenure covers several historic base metal prospects including WTB45 and the Gravel Pit anomaly located along strike north‐west of the Teutonic Bore deposit. Previous shallow drilling on the tenure shows strongly anomalous zinc, copper and lead over 4 kilometres of strike with numerous individual base metal results above 0.1% including 0.4% zinc, 0.17% copper and 0.14% lead from weathered bedrock. Deeper reverse circulation and diamond drilling returned individual results up to 1.9% copper, 12.3% zinc and 0.4% lead associated with semi massive and disseminated sulphides. These historic results are comparable to the Bentley VMS deposit where shallow historic drilling into the weathered bedrock above the deposit showed similar levels of base metal mineralization over only 1.6 kilometres strike.

Other results of interest include two base metal intersections from broad spaced historic diamond drilling north of the Teutonic Bore deposit. Drill hole JDH0005 intersected 5m from 236m grading 20.1 grams per tonne silver at the WTB45 prospect. In addition, drill hole JHDD0009 intersected 0.3 metres from 242.9 metres grading 5.6% copper, 0.4% zinc and 221 grams per tonne silver 3.5 kilometres north of the WTB45 prospect. Past reports have also shown a 5 kilometre long zone of strong zinc in weathered rock 5 kilometres north‐west of the WTB45 prospect. This mineralization is associated with anomalous copper, arsenic and lead plus an historic bedrock electromagnetic conductor.

As part of the purchase agreement, St Barbara will retain the right to explore for and exploit gold resources on the tenements for a period of 5 years, or in the case of E37/789, 7 years. St Barbara may extend this right for an additional 2 years on individual tenements in the event that St Barbara makes a significant gold discovery.

Jabiru has budgeted to spend up to \$8 million on exploration on the Jaguar Project for the 2010/2011 period and considers the additional tenure will enhance the prospect of discovering new Cu‐Zn‐Pb‐ Ag‐Au VMS deposits to further complement the Jaguar Project.

Jabiru Metals Ltd Contact details :+618 9426 8300 : +618 9426 8399 : www.jabirumetals.com.au

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results is based on information compiled by Reg Beaton who is a member of the Australian Institute of Geoscientists and is a full‐time employee of the Company. Mr Beaton has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources & Ore Reserves". Mr Beaton consents to the inclusion in the report if the matters based on his information in the form and context in which it appears.

DISCLAIMER: This report may or may not contain forecasts and forward looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. Jabiru has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by applicable laws, Jabiru makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission, from any information, statement or opinion contained in this presentation.

Figure 1: Jaguar Project Tenement Map