ST BARBARA LIMITED — Capital/Financing Update 2011

Mar 10, 2011

St Barbara Limited ACN 009 165 066 Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au

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Rain disruption at Gwalia

Leonora Operations has recommenced gold production from the Gwalia mine after an interruption caused by exceptionally heavy rain in the region.

The impact of an 86mm rain event in the Leonora district was announced on 21 February 2011. A subsequent rain event in the following week of an additional 68mm has compounded the impact. For the month of February 2011, Leonora recorded aggregate rainfall of 191mm, compared to the long term median rainfall for February of 13mm.

The rain appears to have contributed to the subsidence of an historic void that intersected the Hoover Decline at 235 metres below surface (mbs), creating a small opening in the side wall. This has been successfully back‐filled. Ore production has recommenced from stopes between 1,120 and 1,300 mbs.

Water ingress to the Gwalia mine, resulting from the rain temporarily exceeding the mine’s storage and pumping capacity, has caused limited flooding and damage to the Hoover decline and to the lowest parts of the mine.

Up to the time of the rain events, gold production and grade were performing to expectations. The temporary interruption to mining operations caused by the heavy rain, together with a delay in developing below the 1,300mbs level due to flooding at the bottom of the Hoover decline, will delay access to higher grade production stopes. Consequently it is no longer possible to meet FY11 guidance.

The Gwalia mine is now forecast to produce between 130,000 to 135,000 ounces of gold for the year ending 30 June 2011 (compared with previous guidance indicating 145,000 ounces). Total company production guidance for FY11 is now between 250,000 and 270,000 ounces of gold.

Unit cash operating costs for the Gwalia mine for FY11 are now likely to be proportionately higher due to the lower gold production. Details will be provided in the March 2011 Quarterly Report.

There is no expected consequential impact on production forecasts for FY12 and FY13.

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Tim Lehany Managing Director & CEO 11 March 2011