ST BARBARA LIMITED — Interim / Quarterly Report 2003

Apr 29, 2003

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

March 2003 Quarterly Report

Attached is the Company's Quarterly Report for the period ending 31 March 2003.

Stephen W. Miller Executive Chairman

30 April 2003

ACN 009 165 066

ACTIVITIES REPORT

Three months to 31 March 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 Overseas +61 8 9476 5555

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

• $\bullet$ Gold production 17,572 ounces - sourced from Gibraltar underground and low grade stockpiles
• Inaugural milling of Paddys Flat low grade stockpiles commences
• Detailed planning for the development of high grade Prohibition, Vivians, Consols and Mickey Doolan orebodies commences

FINANCE

• Meekatharra cash operating surplus \$2.0 million
• Hedge position reduced to nil
• Share placement raises \$1.65 million

EXPLORATION

Reedys Joint Venture with Gold Fields signed

PAULSENS PROJECT

• Financing options under review
• Puutu Kunti Kurrama and Pinikura Co-operation Agreement signed.

CORPORATE

Revised merger proposal with Geomaque Explorations (Toronto) to form Defiance Mining Corporation announced post period end

CHAIRMAN'S REVIEW

Meekatharra operations are in transition with all mining activity having been completed at the Gibraltar underground mine in mid-February 2003. This was in line with the previously announced revised timetable following the change to the mining method.

Current operations comprise the carting and milling of 50,000 to 60,000 tonnes per week of highly oxidised low grade stockpile material from the Paddys Flat tenements, just 15 km from the plant.

These stockpiles will be the predominant source of mill feed for the next twelve months.

Whilst plans for the exploitation of the high grade Vivians, Consols, Prohibition and Mickey Doolan orebodies are progressing, it is considered that development ore would not be available for a minimum of six months.

The exploration and development of our large Meekatharra landbank was accelerated with the Reedys tenements farm-out to Gold Fields Limited.

Our joint venture partner can earn a 51% interest by spending \$3.5 million over three years with a minimum \$0.75 million in the first year. The tenements, located over 50 km from the plant, have identified aggregate resources of 195,200 ounces.

When viewed in conjunction with Paddys Flat, 15 km from the plant, the net effect is an overall resource inventory increase of over 800,000 ounces located, on average, closer to the plant.

Very considerable management time was devoted to both communicating and preparing documentation for the proposed merger of St Barbara Mines Limited, Midas Gold plc (unlisted London based company) and Geomaque Explorations Ltd (Toronto listed) to form Defiance Mining Corporation.

The revised proposal announced on 3 April 2003 will see a sequential, rather than concurrent process, with Geomaque acquiring Midas to create Defiance, followed by the proposed merger of St Barbara and Defiance.

Geomaque shareholder meetings to approve the first step are scheduled for early June 2003.

Stephen W. Miller Executive Chairman 30 April 2003

ACN 009 165 066

ACN 009 165 066

PRODUCTION

Gold production at 17,572 ounces was in line with forecast.

Mine production at 55,105 tonnes represents the final ore from Gibraltar underground, with all stockpiles processed by the end of February 2003. Records indicate a total of 371,201 tonnes was mined for 35.397 recovered ounces over the fifteen month life. De-mobilisation of all services was complete at the period end.

The balance of mill feed comprised low grade stockpiles, including remaining material from Bluebird East, the balance of minor tonnages from North of Alliance and inaugural tonnages from Paddys Flat.

A new access road, via the old Magazine haul road, was established to allow triple and quadruple dog road trains (at 50-60,000 tonnes per week) to haul Paddys Flat stockpiles to the mill.

Overall, mill throughput at 611,492 tonnes was 30 percent higher than the previous quarter, influenced by the softer low grade stockpiles. In March, when mill feed was almost exclusively highly oxidised Paddys Flat material, the throughput reached a 2.8 million tonne annualised rate. With softer ore, the secondary crusher has been bypassed. Other plant circuitry optimisation continues.

Net operating cost per ounce remained high, influenced by Gibraltar direct and mine development capital cost amortisation charges which were incurred for two months of the period.

Depletion of the North of Alliance stockpile will allow approximately 30 km of haul road to be decommissioned and site rehabilitation to be completed.

Outlook

Production in the immediate future will be sourced exclusively from Paddys Flat low grade stockpiles. Despite the lower average mill feed grade, net operating costs per ounce are expected to be lower, even after acquisition cost amortisation of \$1.50 per tonne.

A Notice of Intent to load and haul from the large 1.5 million tonne Central stockpile is in preparation.

Detailed evaluation of Vivians, Consols, Prohibition and Mickey Doolan deposits has progressed. Revised resource estimates are subject only to confirmation twin hole drilling. Given the partial refractory nature of Prohibition and Mickey Doolan, drill samples will also be submitted for metallurgical testwork. The portal location for the Prohibition decline has been selected.

Production and Sales Statistics

Period	3 Months to 31 March 2003	9 Months to 31 March 2003
Ore mined (fonnes)	55,105	483,041
Average grade (g/t)	3.34	3.65
Ore milled (tonnes)	611.492	1,543,388
Head grade $(g/t)$	1.03	1.86
Recovery (%)	86.8	91.2
Gold produced (ounces)	17,572	77.966
Gold sold (ounces)	19,268	79.133

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

Period	3 Months to 31 March 2003	9 Months to 31 March 2003
Mine site cash costs	512	462
State royalties	21	15
Net Cash Cost	533	477
Mine development capital cost amortisation	33	129
Inventory movements	59	4
Net Operating Cost	625	609
Realised Gold Price	592	581

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.

ACN 009 165 066

EXPLORATION

Intersections from the seventy drill hole programme at Mulla Mulla East were re-sampled and the presence of coarse gold in many confirmed.

A preliminary block model of the 40x40 metre pattern hole results, gave an inferred, predominantly oxide, resource of 0.68 million tonnes at 1.48 g/t. A further twenty hole programme has been proposed.

A farm-out and exploration joint venture was signed with Gold Fields Australasia Pty Limited, a wholly owned subsidiary of the South African group Gold Fields Limited.

The agreement covers a 206 km² block of tenements in the Reedys area, 50 km south south west of Meekatharra. Gold Fields can earn a 51% interest in the tenements by the expenditure of \$3.5 million over three years, with a minimum commitment of \$0.75 million in the first year.

Gold Fields can increase the interest to 65% overall by additional expenditure of \$1.92 million over a further three years or 65% in any tenement by the completion of a feasibility study.

The tenement block includes the historic mining centre of Reedys where past production exceeded 500,000 ounces from both open cut and underground operations. Current indicated and inferred resources total 195,200 ounces in eight separate positions. Excluded is the Jack Ryan measured resource of 53,700 ounces.

The decision to farm-out the area reflects a number of views including that a programme 100% funded by the Company would not commence for a minimum of 24 months due to other priorities, the correct exploration approach will require substantial systematic deep core drilling, and rates and rentals currently aggregate \$270,000 per annum.

Gold Fields has commenced preparations for an initial 20,000 metre RAB and aircore drill programme to further test the Turn of the Tide and Tough Go trends.

No exploration was undertaken on the Chesterfield Joint Venture. Our partner has earned a 51% interest by expending \$500,000 and has defined a number of small high grade positions.

PAULSENS PROJECT

The Company commenced an evaluation of alternatives to re-engineer financing options for the project (following completion of the bankable feasibility study), focusing in particular on reducing the amount of equity required for project start-up.

Upon completion of this evaluation, the Company will look to commence a drilling programme to extend the resource base below the bottom of the proposed open pit.

A Co-operation Agreement was signed with the Puutu Kunti Kurrama and Pinikura Peoples,

Ashburton Exploration

Initial mapping, rock chip sampling and soil sampling continued on the new joint venture farm-in ground to the south and east of Paulsens (St Barbara earning 70 percent through expenditure of \$1 million over four years).

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 IORC 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.

ACN 009 165 066

FINANCE

Realised Gold Price

A total of 19.268 ounces was sold at a net realised gold price of \$592 per ounce (against an average spot price of \$599 per ounce).

The Company delivered 10,254 ounces into remaining hedge contracts at a realised price of \$588 per ounce, and the balance into spot.

As of 20 February 2003 the Company was unhedged and remains so at the date of this report (current spot price \$538 per ounce).

Financial Performance

Meekatharra Operations generated a \$2.0 million cash surplus for the quarter (includes the sale of 1,696 inventory ounces).

Financial Position

As at 31 March 2003, cash and bullion totaled \$1.24 million (plus \$3.37 million in rehabilitation bonds).

Major cash movements during the period included proceeds from a placement of shares (\$1.65 million), advances from an \$8.4 million convertible loan and note package (\$1.60 million) and payment of the first and part of a second acquisition instalment for Paddys Flat (total of \$1.65 million).

CORPORATE INFORMATION Board of Directors and Executive

Management

• S. W. Miller................. Executive Chairman 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:
	Facsimile:
	Email: perth@stbarbara.com.au
	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 385,553,303 shares.

There were 44,329,772 listed options, exercisable at 30 cents up until 29 February 2004 and 44,905,634 unlisted options exercisable at various prices between 11 cents and 45 cents up to 17 [anuary 2008.

Major Shareholders

National Nominees 12.04%
Strata Mining Corporation Ltd8.35%
Westpac Custodians
ANZ Nominees

Substantial Shareholders

Strata Mining Corporation Ltd............ 9.39% GAM International Growth Fund.......7.94%

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

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