ST BARBARA LIMITED — Interim / Quarterly Report 2003

Jul 30, 2003

ST BARBARA MINES LIMITED

ACN 009 165 066

ASX SHAREHOLDERS REPORT

Enquiries regarding this report may be directed to: Stephen W. Miller Executive Chairman Telephone (08) 9476 5555 Overseas +61 8 9476 5555 $\overline{or}$ Colin G. Jackson Investor Relations Telephone 0417 929 107

St Barbara Mines Limited Level 2, 16 Ord Street West Perth Western Australia 6005 Telephone (08) 9476 5555 Overseas +61 8 9476 5555

June 2003 Quarterly Report

Attached is the Company's Quarterly Report for the period ending 30 June 2003.

Stephen W. Miller Executive Chairman

31 July 2003

ST BARBARA MINES LIMITED

ACN 009 165 066

ACTIVITIES REPORT

Three months to 30 June 2003

Enquiries regarding this report may be directed to: Stephen W. Miller Executive Chairman Telephone $(08)$ 9476 5555 Overseas +61 8 9476 5555 or Colin G. Jackson Investor Relations

Telephone 0417 929 107

St Barbara Mines Limited Level 2, 16 Ord Street West Perth Western Australia 6005 Telephone $(08)$ 9476 5555 +61 8 9476 5555 Overseas

Dollar values in this report are Australian Dollars unless otherwise stated.

St Barbara is a dedicated gold company listed on both the Australian Stock Exchange and the AIM (London Stock Exchange) - ticker symbol SBM $-vith$ nearly 12,000 shareholders.

OVERVIEW

MEEKATHARRA OPERATIONS

• Gold production 18,645 ounces, up 6.1 percent - sourced almost entirely from Paddys Flat low grade stockpiles
• Production cash cost lowered by \$117 per ounce

FINANCE

• Meekatharra Operations - cash operating surplus \$2.3 million
• The Company remains unhedged
• Share placement raises \$1.0 million
• Short term debt reduced \$5.0 million (post period end)

EXPLORATION

Gold Fields Reedys Joint Venture commences $-28,000$ metre (475 holes) completed

PAULSENS PROJECT

Project re-optimised for new development scenario

CORPORATE

• New constitution approved by shareholders
• Ocean Resource Capital Holdings Ltd exercises $\blacktriangle$ Convertible Note at 13 cents per share
• Dioro Exploration investment realised (\$4.9 million post period end) at a small profit

CHAIRMAN'S REVIEW

Meekatharra operations achieved consistent and sustainable performance throughout the quarter. Based on Paddys Flat No. 1 and No. 2 low grade stockpiles, mill throughput increased 21 percent to a rate of 3.0 million tonnes per annum, gold production increased 6.1 percent to 18,645 ounces and, most importantly, cash costs were reduced by \$117 per ounce compared to the previous quarter.

Meekatharra operations were cash positive, with the lower cash cost more than offsetting a reduction in the spot realised gold price from \$592 per ounce in the March quarter to \$535 per ounce. The Company remains unhedged.

Together with No. 3 stockpile, low grade material will be the predominant source of mill feed for the next nine months. Preparatory work in the higher grade orebodies at Paddys Flat, particularly Prohibition, continued.

Gold Fields Australasia Pty Ltd, completed its Year 1, \$750,000 exploration expenditure commitment on the Reedys joint venture post the end of the period. A 28,372 metre RAB/aircore drilling programme further tested the Tough Go and Turn of the Tide mineralised lines, and Gold Fields is planning - subject to management approval - further RAB/aircore and RC drilling for the September quarter, including testing beneath previous high grade intercepts on the Reedys mineralised line.

Substantial management time was devoted to examining various options for the development of Paulsens with a view to reducing the capital required for this project. The result of this review is that a revised mine development could lead not only to significant reductions in capital required but also to reduced operating costs.

Prior to, and immediately post the year end, a number of financial initiatives were taken to improve the balance sheet. These included a placement of new shares, the sale of the Dioro investment at a profit (and immediate reduction in short term debt), the early exercise of the convertible note and the restructure of the convertible loan (increasing the amount in return for a lower exercise price).

Shareholders were advised in April 2003 of a revision to the original three way merger proposal between St Barbara, Geomague Explorations of Canada and UK unlisted company, Midas Gold plc. In June 2003, Geomaque and Midas shareholders agreed to merge to form Defiance Mining Corporation, which is now listed on the Toronto Stock Exchange. The listing of Defiance will provide the platform to further progress the merger proposal.

Stephen W. Miller Executive Chairman

31 July 2003

ACN 009 165 066

MANAGEMENT DISCUSSION AND ANALYSIS

PRODUCTION

Gold production at 18,645 ounces was a 6 percent improvement on the previous quarter.

Mill feed comprised low grade stockpiles, predominantly Paddys Flat No. 1 and No. 2 (formerly Central - from June 2003) stockpiles.

Mill throughput (equivalent to an annualised rate of 3.0 million tonne) was 21 percent higher than the previous quarter, influenced by the softer low grade stockpile material. Plant circuitry optimisation continues.

Net operating cost at \$433 per ounce was a significant improvement on the previous quarter.

Outlook

A Notice of Intent to load and haul from No. 3 (Northern) stockpile was lodged.

Results from a short drill programme on four nearby small surface oxide deposits are currently being assessed.

Detailed evaluation of the higher grade Vivians, Consols, Prohibition and Mickey Doolan deposits at Paddys Flat continued. The primary focus is Prohibition with a three hole programme scheduled to provide geotechnical data and samples for metallurgical testwork to provide data for design of a partial refractory flowsheet. A revised resource estimate for Prohibition is scheduled August/September 2003.

Production and Sales Statistics

3 Months to 12 Months to 30 June 2003 30 June 2003	Period
483.041 ₽	Ore mined (tonnes)
2,284,599 741,211	Ore milled (tonnes)
0.94 1.47	Grade milled (g/t)
83.6 89.7	Recovery (%)
18,645 96,611	Gold produced (ounces)
18.947 98,080	Gold sold (ounces)

Production Cost Statement (\$/oz) Modified Gold Institute Standard

Period	3 Months to 30 June 2003	12 Months to 30 June 2003
Mine site cash costs	392	448
State royalties	24	17
Net Cash Cost	416	465
Mine development capital cost amortisation	(4)	103
Inventory movements	21	7
Net Operating Cost	433	575
Realised Gold Price	535	572

St Barbara calculates cost of production using a modified Gold Institute Standard. The modification is designed to clearly identify the actual cash cost incurred, which is then normalised depending upon over or under development against the life-of-mine plan.

The resultant 'net operating cost' per ounce is equivalent to the GI 'total cash cost' per ounce.

FINANCE

Realised Gold Price

A total of 18,947 ounces was sold at a net realised gold price of \$535 per ounce (against an average spot price of \$541 per ounce).

The Company delivered all production into spot. The Company has no hedge positions.

Financial Performance

Meekatharra Operations generated a \$2.3 million cash surplus for the quarter.

Financial Position

As at 30 June 2003, cash and bullion totaled \$2.5 million (plus \$3.3 million in rehabilitation bonds).

Major cash movements during the period included placement and convertible note proceeds (\$3.9 million), asset sales (\$0.8 million) and Paddys Flat acquisition and performance bond payments (\$1.4 million).

MANAGEMENT DISCUSSION AND ANALYSIS

EXPLORATION

Gold Fields completed a 475 hole, 28,732 metre RAB and aircore drilling programme to further test the Tough Go and Turn of the Tide mineralised trends on the Reedys joint venture post the end of the period.

Gold Fields can earn an initial 51% interest in the 206 km² tenements by the expenditure of \$3.5 million over three years. In completing the recent programme Gold Fields has met the minimum Year 1 expenditure commitment of \$750,000.

At Tough Go, Gold Fields drilled 119 holes to test for high grade supergene and primary mineralisation under previous shallow, sporadic low order RAB drill intercepts. Results indicated higher grade areas to be limited.

Many results from the Turn of the Tide trend drilling - regional traverses testing along strike from known gold mineralisation - are awaited.

Planned September quarter activity by Gold Fields - subject to management approval - includes RC drilling at Tough Go and Turn of the Tide, and along the Reedys mineralised trend to follow up on previous drill intercepts including 3 metres at 17.9 g/t, 4 metres at 13.0 g/t, 5 metres at 10.3 g/t and 12 metres at 10.1 g/t.

PAULSENS

The Company continued to evaluate the alternatives to advance the Paulsens development project.

Results of this review showed that a revised mine development plan could lead to substantial reductions in capital required for start-up and also reduced operating costs. Work continued to firm up the revised development plan.

Information in this report relating to ore resources conforms to the reporting requirements of the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (The JORC Code). It is based on information compiled by Mr Graham Miller, FAusIMM, a Competent Person as defined by the Code, It is included in this report with his consent.

CORPORATE INFORMATION Board of Directors and Executive Management

S. W. Miller................................... K. A. Dundo .........Non-Executive Director G. B. Speechly ...... Non-Executive Director H. G. Tuten............Non-Executive Director A. D. Rule ............... Chief Financial Officer and Company Secretary

Registered Office

Level 2, 16 Ord Street
West Perth WA 6005
Telephone: +61 8 9476 5555
Facsimile:
Email:
Website: www.stbarbara.com.au

Stock Exchange Listings

Australian Stock Exchange AIM Board of London Stock Exchange Ticker Symbol: SBM

Issued Capital

As at the date of this report, issued capital is 431,464,225 shares.

There were 44,329,772 listed options, exercisable at 30 cents up until 29 February 2004 and 71,682,563 unlisted options exercisable at various prices between 11 cents and 40 cents up to 17 January 2008.

Major Shareholders

National Nominees 11.16%
Westpac Custodians 10.64%
Resource Capital Fund II LP 7.89%
Strata Mining Corporation Ltd7.46%
ANZ Nominees

Substantial Shareholders

RAB Europe Fund Ltd........................ 10.43% Strata Mining Corporation Ltd............8.39% Resource Capital Fund II LP ................7.89%

Shareholder Enquiries

Matters related to shares held, change of address and tax file numbers should be directed to:

Australia-

Advanced Share Registry Services Level 7, 200 Adelaide Terrace Perth WA 6000 Telephone: .................................... Facsimile: ............................... +61 8 9221 7869

United Kingdom:

Computershare Investor Services PLC PO Box 435, Owen House 8 Bankhead Crossway North Edinburgh EH11 4BR Telephone: ........................ +44 870 703 6088 Facsimile: ....................................

ADR Depositary

The Bank of New York ADR Division 101 Barclav Street New York NY10286 USA Telephone: .......................... +1 212 815 2218