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 $\alpha r$ 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.

Comparatives are six months to 31 December 2001.

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

Interim Financial Result 2002/03 and Outlook FINANCE

Post period end $9.8 million of new capital raised
Net loss after tax $22.0 million includes:
- change in accounting policy of $8.5 million
- non-cash charges of $15.6 million (including accelerated write-down of underground operations - $7.5 million)
Gold sales 59,865 ounces, up 24 percent
Realised gold price $577 per ounce, up $58 per ounce
- Net cash cost of production $460 per ounce

OUTLOOK

Production
- Gibraltar underground production ceased February 2003
- Paddys Flat initial production from heavily weathered low grade stockpiles commenced mid-February 2003. Development plans for Paddys Flat high grade Vivians, Consols and Prohibition orebodies progressing
Hedge Position
- nil at the date of this report
- no foreign currency contracts
Exploration
- Reedys tenements farmed-out (minimum first year expenditure $1.0 million) to Gold Fields
Defiance Merger Proposal
- Despatch of Explanatory Statement to shareholders late March 2003
- Shareholder meetings late April 2003

ST BARBARA MINES LIMITED

ACN 009 165 066

The Company recorded a consolidated net loss of $22.0 million, with higher gold sales offset by accelerated mine development writedown of underground operations and a change in accounting policy.

Financial Performance

Gold revenue from operations at $34.6 million was $9.6 million higher than the corresponding six month period, a result of higher gold sales (59.865 ounces, up 24 percent) and higher realised prices ($577 per ounce, up $58 per ounce). The higher realised price reflected improved hedge prices, minor spot sales and closed-out positions.

The average realised price exceeded the average weighted spot price for the six months of $575 per ounce.

Outstanding hedging at the year end was 10,254 ounces at a net realisable $588 per ounce (nil position at the date of this report).

The net operating cost of production (equivalent to the Gold Institute total cash cost) at $617 per ounce reflected, in particular, difficulties with both underground mines. Great Northern Highway ceased operating one month earlier than forecast, necessitating a $2.6 million write-down. Gibraltar suffered a significant disruption (25 days) and a change in mining method, sterilising reserve ounces and necessitating accelerated amortisation of mine development costs.

Other revenue, in the corresponding six month period, was dominated by the sale of the shareholding in Goldfields Limited for $26.7 million, and a net profit of $9.2 million.

A loss before interest, tax, depreciation and amortisation of $1.5 million was determined after state royalties ($0.8 million), exploration costs ($1.9 million) and an accounting change ahead of the proposed Defiance merger ($8.5 million). The accounting change relates to previously capitalised exploration and development expenditure.

Higher interest charges reflected an increased drawdown on the RCF loan and an extension fee.

Simplified Statement of Financial Performance $(5,000)$

for the year ended 31 December	2002	2001
Gold revenue from operations	34,570	25,014
Other revenue	760	28,747
Earnings before interest, tax,depreciation and amortisation and
change in accounting policy	7.047	12.078
Change in accounting policy	(8,532)
Earnings before interest, tax,
depreciation and amortisation	(1,485)	12,078
Depreciation	(971)	(1,156)
Amortisation of mine development	(14.630)	(8,854)
Earning/(loss) before interest and tax	(17,086)	2.068
Interest (expense)/income	(2.242)	(1,374)
Income tax expense	(2,965)	.,
Outside equity interests	(252)	(77)
Net profit/(loss)	(22.041)	771

Prepared in accordance with Australian Generally Accepted Accounting Principles.

Segmental Analysis

	нv

.for the year ended 31 December	2002	2001
Results from Operations	6.309	1.670
Amortisation and depreciation	(15,601)	(10,010)
Profit on sale of shares and property,plant and equipment	738	10.408
Change in accounting policy	(8,532)	$\cdot$
Earnings/loss before interest and tax	(17,086)	2,068

Amortisation and depreciation includes:

- Gibraltar	(7.515)	(298)
- Great Northern Highway	(2.557)	(43)

ACN 009 165 066

Interim Financial Result 2002/03 and Outlook

Cash Flow Statement

Available cash (net of security bonds) decreased through the six month period to $0.3 million.

Capital allocations included on-going Great Northern Highway and Gibraltar underground mine development ($3.9 million) and Mulla Mulla and regional exploration ($1.9 million).

Additional security bonds ($1.5 million) previously secured by guarantee were cash backed during the period.

Loan and finance repayments, principally the Taipan convertible note ($7.3 million) was financed from cash and a further drawdown of the RCF loan.

Financial Position

Total shareholders' equity decreased by $14.9 million, reflecting the change in accounting policy and accelerated amortisation of underground mine development.

Working capital at the end of December was negative $3.2 million.

Interest bearing debt at $18.1 million was down $4.2 million. This comprises the RCF loan, fully drawn to an amended $12.0 million (previously $20.0 million) and lease commitments. RCF interest and extension fees were satisfied by the issue of shares and options.

Current assets include the 12.3 percent investment in Dioro Exploration NL (the 49 percent owner of the Frogs Leg high grade gold project) at cost of $4.9 million.

Simplified Cash Flow Statement
(S'000)
for the year ended 31 December	2002	2001
Operating Activities
Cash receipts	38,843	26,678
Payments - suppliers/employees	(41, 451)	(21, 159)
Other (net)	(544)	(958)
Net cash flow	(3.152)	4.561
Investing Activities
Payments-exploration/evaluation/development	(4,371)	(22, 239)
Payments - listed investments	(365)
Payments - increased security bond	(1,500)
Investment sold		26,724
Payments-property/plant/equipment
(net)	(46)	(401)
Net cash flow	(6.282)	4,084
Financing Activities
Loan and finance repayments	(8,699)	(13, 342)
Proceeds from borrowings	4,000	3,538
Issue of securities	5,361	ä
Share buy-back		(1,066)
Net cash flow	662	(10, 870)
Cash - beginning of period	9,032	4.755
Net change in cash	(8.772)	(2, 225)
Cash - end of period	260	2.530

Simplified Statement of Financial Position

$(5'000)$

As at	31 December2002	30 June2002
Assets
Current	19,390	24,384
Non-current	57,425	77.654
Total	76.815	102,038
Liabilities
Current	22,630	29,868
Non-current	9.062	12.062
Total	31,692	41,930
Net assets	45,123	60,108
Share capital & reserves	125,951	118,643
Accumulated losses	(80, 828)	(58, 787)
Outside equity interests		252
Total shareholders' equity	45,123	60,108

ST BARBARA MINES LIMITED

ACN 009 165 066

Interim Financial Result 2002/03 and Outlook

OUTLOOK

Financial Position

The financial position of the Company was strengthened early in the second half of the year with a placement of shares to fund the first Paddys Flat acquisition instalment ($1.4 million) and an agreement to raise $8.4 million (convertible note $2.8 million and convertible loan $5.6 million) to fund the remaining instalments (a total of $3.0 million).

The total acquisition cost is expected to be recovered from the processing of low grade stockpiles over an eighteen month period.

Meekatharra Production

Production for the second half of the 2002/03 financial year will comprise remaining stope ore from Gibraltar with milling of ore completed by the end of March 2003.

Milling of highly oxidised Paddys Flat low grade stockpiles commenced mid-February 2003.

Whilst plans for the exploitation of the high grade Vivians. Consols and Prohibition orebodies are well advanced, development ore would not be available until next financial year.

Defiance Merger Proposal

A proposal to merge St Barbara with Midas Gold plc (London) and Geomaque Explorations Limited (Toronto) was announced on 9 January 2003. The proposal to form Defiance Mining Corporation, subject to shareholder approval late April 2003, will create a company with two 100% owned operating mines and two development projects at Paulsens and Tasiast (Mauritania).

Shareholders will receive explanatory statements late March 2002 and are urged to discuss the proposal with their financial advisors and company executives. Shareholders from each company have at this stage indicated overwhelming support for the merger proposal.

CORPORATE INFORMATION

Board of Directors/Executive Management
S. W. Miller Executive Chairman
K. A. Dundo Non-Executive Director
G. B. Speechly Non-Executive Director
H. G. Tuten
J. T. McClements Alternate to H. Tuten
A. D. Rule Chief Financial Officer
and Company Secretary
Registered Office
Level 2, 16 Ord Street
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- YYESI FEFIJI YYA - OUUJ
	Telephone:
	Facsimile:
	Email:
	Website:

Stock Exchange Listings

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

Issued Canital

As at the date of this report, issued capital is 385,552,803 shares.

There were 44,329,772 listed options, exercisable at 30 cents up until 29 February 2004 and 46,130,634 unlisted options exercisable at various prices between 11 cents and 45 cents up to 8 January 2007.

Maior Shareholders

National Nominees
Strata Mining Corporation Ltd 8.35%
ANZ Nominees
Resource Capital Fund
Citicorp Nominees Pty Ltd 4.43%

Substantial Shareholders

Strata Mining Corporation Ltd ...................9.39%

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: .................................... 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

101 Barclay Street New York NY10286 USA Telephone: ................................... +1 212 815 2218

ST BARBARA MINES LIMITED

ABN 36 009 165 066

HALF-YEAR FINANCIAL REPORT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES

Page

Directors' report	3.
Consolidated statement of financial performance	5.
Consolidated statement of financial position	6.
Consolidated statement of cash flows
Notes to the consolidated financial statements	8.
Directors' declaration	15.
Independent review report to the members	16.

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS REPORT

Your Directors present their report on the consolidated entity consisting of St Barbara Mines Limited and the entities it controlled at the end of, or during, the half year ended 31 December 2002.

Directors

The names of Directors who held office during or since the end of the half year:

Name	Position	Period of Directorship
Stephen Miller	Executive Chairman and	Director since 12 March 1999
	Managing Director
G. Brian Speechly	Non Executive Director	Director since 9 July 1997
Kevin Dundo	Non Executive Director	Director since 26 March 2002
Henderson Tuten	Non Executive Director	Director since 26 March 2002
James McClements	Alternate Non Executive	Alternate Director since 26 March
	Director to Mr Tuten	2002

Review of Operations

The consolidated operating loss after tax for the half-year ended 31 December 2002 attributable to members of the Company was $$22,041,000$ (31 December 2001; $$771,000$ profit). The current year loss includes the impact of a change in accounting policy effective 1 July 2002 to write off a total of $8,532,000 in current and previous exploration and evaluation expenditure as follows:

Cumulative effect of write off of exploration expenditure
incurred prior to 1 July 2002	4,422,000
Current period exploration expenditure written off
- Exploration drilling and assay expenditure	1,692,000
- Exploration consultant expenditure	963,000
- Other exploration expenditure items	1,455,000
	8.532.000

Production and Sales Statistics	6 months to31 December 2002	6 months to30 June 2002	6 months to31 December 2001
Ore Mined (tonnes)	427,936	609,791	776,404
Head grade $(g/t)$	3.69	2.66	2.00
Ore Milled (tonnes)	931,896	935,647	953,182
Head grade $(g/t)$	2.18	2.06	1.64
Recovery $(%)$	92.6%	92.6%	91.8%
Gold produced (ounces)	60,393	57,272	46,010
Gold sold (ounces)	59,865	57.654	48,191

Ore mined was lower than the previous period due to difficulties at Gibraltar resulting in mining delays and sterilising of ounces. These factors have had an adverse impact on amortisation of Gibraltar which is exaggerated due to the short remaining mine life. Stoping at Gibraltar was completed in February 2003. Mill feed is now exclusively from low grade stockpiles including inaugural material from Paddy's Flat.

Mining activity at Meekatharra is in transition. Following the completion of both Caledonian and Great Northern Highway four months ago and the imminent completion of Gibraltar, the current focus is the ongoing evaluation of a number of resource positions, and the recent Paddy's Flat tenement acquisition.

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS REPORT (cont)

Events subsequent to 31 December 2002

Since 31 December 2002 the following has occurred:

$\bullet$ On 9 January 2003, the Company announced a proposed business combination between the Company and Geomague Explorations Ltd (which will include Midas Gold plc) to create a new growth oriented, international gold mining and exploration company to be named Defiance Mining Corporation and incorporated in Canada.
On 3 February 2003, 15,000,000 fully paid ordinary shares at a price of $0.11 per share were issued to raise $1.65 million (before issue expenses) to assist in the acquisition of the Paddy's Flat area of interest. On 31 January 2003 the Company made the first payment for $1.4 million for the Paddy's Flat acquisition with the remaining two payments of $1.5 million due 31 March 2003 and 30 April 2003.
On 20 February 2003, 5,600,000 fully paid ordinary shares at $0.11 per share were issued in relation to the Paulsens native title agreement.
On 20 February 2003, 1,000,000 unlisted options with an exercise price of $0.11 and an expiry date $\bullet$ of 31 December 2005 were issued to Resource Capital Fund II LP in satisfaction of the corporate debt facility extension fee.
On 27 February 2003, the Company announced that it had entered into 2 agreements to raise $\bullet$ $8.4 million by way of St Barbara issuing $2.8 million of unsecured Convertible Notes and $5.6 million through an unsecured Convertible Loan. The funds raised will be used to fund the Paddys Flat acquisition and general working capital. The repayment date for the Convertible Notes and the Convertible loan is 31 December 2007 and both facilities carry interest at 12%.

Other than the matters discussed above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the economic entity, the results of those operations, or the state of affairs of the economic entity, in future financial years.

Rounding Off

The Company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities and Investment Commission, relating to the "rounding off" of amounts in the Directors' report and Financial report. Amounts in the Directors' report and the Financial report have been rounded off to the nearest thousand dollars in accordance with that Class Order

Signed in accordance with a resolution of the Board of Directors.

STEPHEN W. MILLER EXECUTIVE CHAIRMAN

Dated at Perth this 6th day of March 2003

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF FINANCIAL PERFORMANCE for the 6 months ended 31 December 2002

	Note	Consolidated31 December2002$'000	Consolidated31 December2001$'000
Revenues from sale of gold		34,570	25,014
Other revenues from outside operating activities	3	760	28,747
Revenue from ordinary activities		35,330	53,761
Expenses
- cost of sale of investments			(17,502)
- changes in inventory - finished goods & work in progress		700	(391)
- raw materials and consumables used		(7,622)	(6, 499)
- employee expenses		(4, 536)	(5,255)
- cost of sale of plant and equipment		(22)	(837)
- cost of contract mining		(11,701)	(7,289)
- cost of contract cartage		(1, 596)	(1,001)
- cost of contract processing		(1, 397)	(1,074)
- exploration drilling and assay expenditure	1	(1,692)
- exploration consultant expenditure	$\begin{array}{c} \hline \end{array}$	(963)
- cumulative effect of exploration write off 1 July 2002	1	(4, 422)
- other expenses from ordinary activities		(3, 564)	(1, 835)
Profit/(loss) before interest, tax, depreciation and amortisation(EBITDA)		(1, 485)	12,078
- depreciation		(971)	(1,156)
- amortisation of mine development expenses		(14, 630)	(8, 854)
Profit/(loss) before interest and tax (EBIT)		(17,086)	2,068
- borrowing cost expense		(2, 242)	(1, 374)
Profit/(loss) from ordinary activities before income tax		(19,328)	694
Income tax expense	4	(2,965)
Profit/(loss) from ordinary activities after income tax		(22, 293)	694
Net (loss) attributable to outside equity interests		(252)	(77)
Net profit/(loss) attributable to members of St Barbara Mines
Limited		(22, 041)	771
Total changes in equity other than those resulting from
transactions with owners as owners		(22, 041)	771
Basic and diluted earnings/(loss) per share for St Barbara MinesLimited	11	(6.332)	0.359

(cents per share)

The above statement of financial performance should be read in conjunction with the accompanying notes.

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF FINANCIAL POSITION as at 31 December 2002

	Note	Consolidated31 December2002$'000	Consolidated30 June2002$'000
Current assets
Cash and bank balances		260	9,032
Receivables		2,849	3,287
Other financial assets		4,891
Inventories		5,027	5,151
Assets held for resale		4,857	5,409
Other		1,506	1,505
Total current assets		19,390	24,384
Non-current assets
Restricted cash		3,337	1,837
Other financial assets			4,526
Property, plant & equipment		9,424	9,906
Other		188	232
Deferred tax assets			2,965
Mining properties		44,476	58,188
Total non-current assets		57,425	77,654
Total assets		76,815	102,038
Current liabilities
Payables		9,720	15,905
Interest bearing liabilities	9	11,845	12,926
Provisions		1,065	1,037
Total current liabilities		22,630	29,868
Non-current liabilities
Interest bearing liabilities	9	6,251	9,393
Provisions		2,811	2,669
Total non-current liabilities		9,062	12,062
Total liabilities		31,692	41,930
Net assets		45,123	60,108
Equity
Parent entity interest
Contributed equity	5	124,350	118,213
Option reserves	6	1,601	430
(Accumulated Losses)	$\overline{7}$	(80, 828)	(58, 787)
Total Parent entity interest		45,123	59,856
Outside equity interests in controlled entities			252
Total equity		45,123	60,108

The above statement of financial performance should be read in conjunction with the accompanying notes.

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CASH FLOWS for the 6 months ended 31 December 2002

	Consolidated31 December2002$'000	Consolidated31 December2001$'000
Cash flows from operating activities:
Receipts in the course of operations (inclusive of GST)	38,843	26,678
Payments in the course of operations (inclusive of GST)	(41, 451)	(21, 159)
Interest received	202	88
Borrowing costs paid	(746)	(1,046)
Net cash provided by $/$ (used in) operating activities:	(3,152)	4,561
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	391	1,532
Proceeds on sale of investments in listed securities		26,724
Payments for investments in listed securities	(365)
Payments in respect of exploration, evaluation $&$
development	(4,371)	(22, 239)
Payments to increase security bonds	(1,500)
Payments for property, plant and equipment	(437)	(1, 933)
Net cash provided by / (used in) investing activities:	(6,282)	4,084
Cash flows from financing activities:
Proceeds from borrowings	4,000	3,538
Repayment of borrowings	(8,699)	(13, 342)
Net proceeds from issues of shares	5,361
Payment for shares bought back		(1,066)
Net cash provided by / (used in) financing activities:	662	(10, 870)
Net (decrease) in cash held	(8, 772)	(2,225)
Cash at beginning of period	9,032	4,755
Cash at end of period	260	2,530

The above statement of financial performance should be read in conjunction with the accompanying notes.

Note 1 - Basis of preparation of half-year consolidated financial report

This general purpose financial report for the interim half-year reporting period ended 31 December 2002 has been prepared in accordance with Accounting Standard AASB 1029 Interim Financial Reporting, other mandatory professional reporting requirements (Urgent Issues Group Consensus Views), other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2002 and any public announcements by St Barbara Mines Limited and its Controlled Entities during the interim reporting period in accordance with continuous disclosure requirements of the Corporations Act 2001.

Unless otherwise stated the accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

These consolidated financial statements have been prepared on a going concern basis. At 31 December 2002, the consolidated entity's current liabilities exceeded its current assets by $3.2 million after recording a loss for the 6 months of $22.0 million. Refer to note 12 - Events Subsequent to Balance Date which sets out the financing arrangements put in place since 31 December 2002.

Furthermore, subsequent to period end, the company announced a proposed merger to form Defiance Mining Corporation. The proposed merger should enable the Company to access the major resource capital markets and secure funding commensurate with its needs.

Should the merger not proceed the Directors are of the view, based on past experience, that the consolidated entity will be able to renegotiate its debt structure, secure such additional equity funding as is necessary; and/or sell such assets as are necessary to provide the required funding to enable the Company and its operations to continue as a going concern.

Change in accounting policy for treatment of Exploration, Evaluation and Development Expenditure

With effect from 1 July 2002 all exploration and evaluation expenditure incurred by or on behalf of the Company up to the decision by the Board to proceed with development of a mining property, will be expensed as incurred. Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected to be recovered.

Mining properties now consists only of acquired exploration assets and mineral properties currently under development or in production together with related mine development costs and capital assets. The cost of mineral properties includes the cash consideration and/or the fair value of shares issued on the date the property is acquired.

The recoverability of amounts shown for mining properties is dependent upon the existence of economically recoverable reserves; the acquisition and maintenance of appropriate permits, licenses and rights; the ability of the Company to obtain financing to complete the development of the properties where necessary and upon future profitable production; or, alternatively, upon the Company's ability to recover its spent costs through a disposition of its interests.

Mine development costs relating to mineral properties are deferred until the properties are brought into commercial production, at which time they are amortised over the estimated useful life of the related property or on a unit-of-production basis over proven and probable reserves. Pre-production credits, including the value of marketable metals extracted during mine development, are credited against costs incurred.

The above policy was adopted with effect from 1 July 2002 to align the accounting policies of the Company with those of entities involved in the proposed Defiance Mining Corporation business combination with Geomague Explorations Limited (a Canadian listed company).

Note 1 - Basis of preparation of half-year consolidated financial report - continued

An adjustment of $8,532,000 was made on the statement of financial performance as a result of this change in accounting policy: $\mathcal{G}_\mathbf{a}$

Cumulative effect of write off of exploration expenditure
incurred prior to 1 July 2002	4,422,000
Current period exploration expenditure written off
- Exploration drilling and assay expenditure	1,692,000
- Exploration consultant expenditure	963,000
- Other exploration expenditure items	1,455,000
	8,532,000

The previous accounting policy was to carry forward exploration and evaluation expenditure to the extent that such activities in the area of interest had not yet reached a stage which permitted a reasonable assessment of the existence or otherwise of recoverable mineral resources.

The restatements of consolidated retained losses and non current assets exploration, evaluation and development set out below show the information that would have been disclosed had the new accounting policy always applied. $C_{\text{e}}$ and $C_{\text{e}}$ and $C_{\text{e}}$ and $C_{\text{e}}$ $\sum_{i=1}^{n}$

	Consongated31 December2002$'000Restated	Consolidated31 December2001$'000Restated
Restatement of consolidated statement of financial
performance (extract)
Profit from ordinary activities before income tax expenseIncome tax expense	(15,656)(2,965)	(2,550)
Net profit	(18,621)	(2,550)
	Consolidated31 December2002$'000	Consolidated30 June2002$'000
Restatement of non current assets - exploration,		Restated
evaluation and development expenditure
Previously reported carrying amountAdjustment for change in accounting policy	44,476	58,188(4, 422)
Restated carrying amount	44,476	53,766
Restatement of retained profits
Previously reported carrying amount	(80, 828)	(58, 787)
Adjustment for change in accounting policy		(4, 422)
Restated carrying amount	(80, 828)	(63,209)

Note 2 - Segment Information

The consolidated entity operates predominantly in the gold mining industry in Australia.

The consolidated entity's head office is in Australia.

	Consolidated31 December2002$'000	Consolidated30 June2002$'000
Note 3 - Other revenue
Operating profit before income tax has been determined aftercrediting as other revenues from outside operating activities:
- proceeds on sale of investment in listed securities		26,724
- proceeds on sale of property plant $&$ equipment	391	1,532
- interest revenue	202	88
- other revenue	167	403
	760	28,747

Consolidated	Consolidated
31 December	31 December
2002	2001
$'000	$'000

Note 4 - Income Tax

The Economic Entity adopts the liability method of tax-effect accounting.

Tax expense

The amount of income tax attributable to the financial year differs from the amount prima facie payable on the operating profit (loss). The differences are reconciled as follows:

Operating (loss)	(19, 328)	694
Prima facie income tax expense (benefit) on theoperating profit at 30% (2002: 30%)	(5,798)	208
Tax effect of permanent differences:
Legal and other capital expenditure	64	56.
Sundry items	9
	73	57
Income tax (benefit) adjusted for permanent differences	(5, 725)	265
Future income tax benefit not brought to account	5,725
Future income tax benefits previously recognised, now
written off	2,965
Benefit of tax losses of prior year not previously
recognised		(265)
Income tax expense/(benefit)	2,965

	Consolidated31 December2002$'000	Consolidated30 June2002$'000
Note 5 - Contributed Equity
Ordinary Share CapitalIssued and paid up	124,350	118,213

These shares have no par value and are fully paid ordinary shares. Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

Movements in Ordinary Share Capital:

Date	Details	Notes	Number	Issue	A$'000
			of shares	price
30 June 02	Opening balance		319,758,267		118,213
$11$ July 02	Share issue	$\left( i\right)$	1,210,052	$0.2037	246
$11$ July $02$	Share issue	$\left( i\right)$	196,562	$0.2263	44
$11$ July 02	Share issue	(ii)	1,846,628	$0.2143	396
21 Aug 02	Placement	(iii)	34, 333, 332	$0.1650	5,665
21 Aug 02	Placement costs	(iii)			(994)
17 Oct 02	Share issue	(ii)	280,140	$0.1973	55
2 Dec 02	Share issue	$\left( i\right)$	1,562,000	$0.0960	150
31 Dec 02	Share issue	(i)	1,067,616	$0.0843	90
31 Dec 02	Share issue	$\left( i\right)$	4,261,200	$0.1021	435
31 Dec 02	Share issue	(i)	437,006	$0.1136	50
31 Dec 02	Balance		364,952,803		124,350

$(i)$ Share issue to Resource Capital Fund II LP for Facility interest and fees.

Share issue in accordance with an agreement with Grimwood Davies Pty Ltd for conducting a $(ii)$ drilling program in the Meekatharra area.

(iii) Placement to raise working capital.

Note 6 - Option Reserve	Consolidated31 December2002$'000	Consolidated30 June2002$'000
Option Reserve
Balance	1,601	430

The option reserve increased during the half year to 31 December 2002 due to the issue of 8,703,287 unlisted options and 22,166,666 listed options. The fair value of each option issued has been valued using the Black-Scholes option pricing model after considering factors such as the term of the option, the risk free interest rate and the volatility of the share price.

The options issued were as follows:

8,703,287 options issued to Resource Capital Fund II LP in lieu of debt facility fees and interest. The value ascribed to these issues is $480,758; and
22,166,666 listed share options with a strike price of $0.30 and expiry of 29 February 2004 issued in conjunction with the placement of ordinary shares. The value ascribed to these issues is $689,540.

Note 7 - Accumulated Losses

Accumulated (losses) at the beginning of the financial period	(58, 787)	(40, 893)
Net (loss) attributable to members of St Barbara Mines Limited	(22.041)	(17.894)
Accumulated (losses) at the end of the financial period	(80.828)	(58.787)

Note 8 - Notes to Statement of Cash Flows

(i) Non Cash Financing and Investing Activities

During the half year the following transactions occurred which affected assets and liabilities and did not result in cash flows:

The issue of 8,734,436 fully paid ordinary shares to RCF in satisfaction of the RCF interest and facility fees. The value ascribed to this issue is $1,016,000.
The issue of 2,126,768 fully paid ordinary shares to Grimwood Davies Pty Ltd in satisfaction of $\bullet$ a drilling program. The value ascribed to this issue is $451,000.

Note 9 - Interest bearing liabilities	Consolidated31 December2002$'000	Consolidated30 June2002$'000
Current:
Secured
- lease liability (a)	2,561	3,072
- HP liability	1,284	1,285
- other loans (b)	8,000	1,500
- convertible notes (c)		7,069
	11,845	12,926
Non-Current:
Secured
- HP liability	2,251	2,893
- other loans $(b)$	4,000	6,500
	6,251	9,393

(a) Secured by a fixed charge over the item of plant and equipment purchased by the funds advanced. The lease liability is payable monthly with the last payment due in November 2004 however the entire liability is disclosed as a current liability as it relates to one of the assets held for resale which is disclosed as a current asset.
(b) On 8 January 2002, Resource Capital Fund II L.P. ("RCF") and the Company, Silkwest Holdings Pty Ltd and St Barbara Pastoral Co. Pty Ltd entered into a financing facility of A$20 million ("RCF Facility"). Each of these companies have entered into deeds of fixed and floating charges with RCF to secure their obligations under the RCF Facility. In addition, the Company granted RCF a share mortgage. Silkwest Holdings Pty Ltd and St Barbara Pastoral Co. Pty Ltd have entered into deeds of guarantee and indemnity with RCF.

The security provided to RCF constitutes a first ranking security to RCF over any assets of the consolidated entity acquired by utilising funds drawn down under the RCF Facility and a second ranking charge over the consolidated entity assets generally. This second ranking security is subordinated to the existing Macquarie Bank Limited security under a deed of priority.

The RCF Facility was modified and extended on 10 September 2002 such that the facility of A$20 million was reduced to A$12 million on 1 January 2003. An extension fee of $390,000 was paid in cash and shares.

The $8 million of the RCF Facility is repayable on 31 July 2003 with the balance of $4 million repayable on 1 January 2004 or at a later date agreed to by the parties. Should the proposed Defiance merger not be completed by 31 May 2003, RCF have the right to review the timing of the $4 million repayment. Interest of 10 per cent per annum calculated daily pursuant to the RCF Facility is payable on 31 July 2003.

The RCF Facility provides RCF with an entitlement to be issued options. The Company must, at the end of each quarter during the term, issue options to RCF calculated with reference to the funding portion which remains outstanding on each day. The term of each option will be 48 months from the date of issue. The options issued under the RCF Facility are not listed for trading on ASX.

(c) The convertible notes were issued to Perpetual Trustees Nominees Limited as trustee of the Golden Arrow Fund (GAF) and were secured by way of a fixed and floating charge over substantially all of the assets and undertakings of Taipan Resources NL. The convertible notes each bear interest at 10% per annum compounded monthly. St Barbara Mines Limited provided the funds to redeem the convertible notes in full on 29 November 2002.

Note 10 - Contingent Liabilities

There have been no changes to Contingent Liabilities disclosed since the Annual Report for the year ended 30 June 2002.

Note 11 - Earnings Per Share

	Consolidated31 December2002$'000	Consolidated31 December2001S'000
Basic earnings/(loss) per share - cents per share	(6.332)	0.359
Weighted average number of ordinary shares outstanding duringthe 6 months used in calculation of basic EPS	348,075,834	214,693,287

Diluted earnings per share has not been calculated as the exercise price of the 89,110,406 options on issue were above the market price at balance date.

Note 12 - Events Subsequent to Balance Date

Since 31 December 2002 the following has occurred:

On 9 January 2003, the Company announced a proposed business combination between the Company, Geomaque Explorations Ltd (which will include Midas Gold plc) to create an international gold mining and exploration company to be named Deftance Mining Corporation and incorporated in Canada.
On 3 February 2003, 15,000,000 fully paid ordinary shares at a price of $0.11 per share were issued to raise $1.65 million (before issue expenses) to assist in the acquisition of the Paddy's Flat area of interest. On 31 January 2003 the Company made the first payment for $1.4 million for the Paddy's Flat acquisition with the remaining two payments of $1.5 million due 31 March 2003 and 30 April 2003.
On 20 February 2003, 5,600,000 fully paid ordinary shares at $0.11 per share were issued to Yamatii Marlpa Barna Baba Maaja Aboriginal Corporation in trust for Puutu Kunti Kurrama Pinikura in relation to the Puutu Kunti Kurrama Pinikura native title agreement.
On 20 February 2003, 1,000,000 unlisted options with an exercise price of $0.11 and an expiry date $\bullet$ of 31 December 2005 were issued to Resource Capital Fund II LP in satisfaction of the corporate debt facility extension fee.
On 27 February 2003, the Company announced that it had entered into 2 agreements to raise $8.4 million by way of St Barbara issuing $2.8 million of unsecured Convertible Notes and $5.6 million through an unsecured Convertible Loan. The funds raised will be used to fund the Paddys Flat acquisition and general working capital. The repayment date for the Convertible Notes and the Convertible loan is 31 December 2007 and both facilities carry interest at 12%.

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES Half-year financial statements for the 6 months ended 31 December 2002

DIRECTORS' DECLARATION

The Directors declare that the Financial Statements and notes set out on pages 5 to 14:

comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory $(a)$ professional reporting requirements, and
give a true and fair view of the consolidated entity's financial position as at 31 December 2002 and $(b)$ of its performance, as represented by the results of its operations and its cash flows, for the halfyear ended on that date.

In the directors' opinion:

the financial statements and notes are in accordance with the Corporations Act 2001; and $(a)$
$(b)$ there are reasonable grounds to believe that St Barbara Mines Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of directors.

STEPHEN W. MILLER EXECUTIVE CHAIRMAN

Dated at Perth this 6th day of March 2003

PRICEWATERHOUSE COPERS

Independent review report to the members of St Barbara Mines Limited

PricewaterhouseCoopers ABN 52 780 433 757

$\alpha$ 250 St Georges Terrace PERTH WA 6000 GPO Box D198 PERTH WA 6840 DX 77 Perth Anetralia www.pwcglobal.com/au Telephone +61 8 9238 3000 Facsimile +61 8 9238 3999

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report, set out on pages 5 to 15 is not presented in accordance with:

the Corporations Act 2001 in Australia, including giving a true and fair view of the financial position of the St Barbara Mines Limited Group (defined below) as at 31 December 2002 and of its performance for the half-year ended on that date
Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, and the Corporations Regulations2001.

This statement must be read in conjunction with the following explanation of the scope and summary of our role as auditor.

Scope and summary of our role

The financial report - responsibility and content

The preparation of the financial report for the half-year ended 31 December 2002 is the responsibility of the directors of St Barbara Mines Limited. It includes the financial statements for the St Barbara Mines Limited Group (the Group), which incorporates St Barbara Mines Limited (the Company) and the entities it controlled during the half-year ended 31 December 2002.

The auditor's role and work

We conducted an independent review of the financial report in order for the Company to lodge the financial report with the Australian Securities & Investments Commission. Our role was to conduct the review in accordance with Australian Auditing Standards applicable to review engagements. Our review did not involve an analysis of the prudence of business decisions made by the directors or management.

This review was performed in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report does not present fairly a view in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, and the Corporations Regulations 2001, which is consistent with our understanding of the Group's financial position, and its performance as represented by the results of its operations and cash flows.

PricewatErhouse(copers @

The review procedures performed were limited primarily to:

inquiries of company personnel of certain internal controls, transactions and individual items
analytical procedures applied to financial data.

These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit, and accordingly, we do not express an audit opinion.

Independence

As auditor, we are required to be independent of the Group and free of interests which could be incompatible with integrity and objectivity. In respect of this engagement, we followed the independence requirements set out by The Institute of Chartered Accountants in Australia, the Corporations Act 2001 and the Auditing and Assurance Standards Board.

In addition to our statutory audit and review work, we were engaged to undertake other services for the Group. In our opinion the provision of these services has not impaired our independence.

Pricevorberhouseloopers

PricewaterhouseCoopers

Inid J. Look

David J Smith Partner

Perth 6 March 2003

Rules 4.1, 4.3

Appendix 4B

Half yearly/preliminary final report

Introduced 30/6/2002.

Name of entity
ST BARBARA MINES LIMITED
ABN or equivalent companyHalf yearlyPreliminaryreferencefinal (tick)(tick)		Half year/financial year ended ('current period')
36 009 165 066	December 31, 2002
For announcement to the marketExtracts from this report for announcement to the market (see note 1).		$A'000
Revenues from ordinary activities (item $1.1$ )	down34%	35,330to
Profit (loss) from ordinary activities after tax attributable tomembers (item 1.22)	2,959%down	(22,041)to
Profit (loss) from extraordinary items after tax attributableto members ( item 2.5( d ))	gain (loss)оĔ
Net profit (loss) for the period attributable to members$(i$ tem $1.11)$	down2,959%	(22,041)to
Dividends (distributions)	Amount per security	Franked amount persecurity
Final dividend (Preliminary final report only - item 15.4)Interim dividend (Half yearly report only - item 15.6)	-¢		-¢
Previous corresponding period (Preliminary final report -item 15.5; half yearly report - item 15.7)	-¢		-é
N/A$+$ Record date for determining entitlements to thedividend.(in the case of a trust, distribution) (see item $15.2$ )Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cashissue or other item(s) of importance not previously released to the market:

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

+ See chapter 19 for defined terms.

		Current period -$A'000	Previous correspondingperiod - $A'000

1.1	Revenues from ordinary activities (see items 1.23$-1.25$	35,330	53,761
1.2	Expenses from ordinary activities (see items 1.26& 1.27)	52,416	51,693
1.3	Borrowing costs	2,242	1,374
1.4	Share of net profits (losses) of associates and jointventure entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	(19,328)	694
$1.6^{\circ}$	Income tax on ordinary activities (see note 4)	(2,965)
$1.7^{\circ}$	Profit (loss) from ordinary activities after tax	(22, 293)	694
1.8	Profit (loss) from extraordinary items after tax(see item $2.5$ )
1.9	Net profit (loss)	(22, 293)	694
1.10	Net profit (loss) attributable to outside $+$ equityinterests	(252)	77
1.11	Net profit (loss) for the period attributable tomembers	(22, 041)	771
	Non-owner transaction changes in equity
1.121.13	Increase (decrease) in revaluation reservesNet exchange differences recognised in equity
1.14	Other revenue, expense and initial adjustmentsrecognised directly in equity (attach details)adjustments fromUIGtransitionalInitial
1.15	provisions
1.16	Total transactions and adjustments recogniseddirectly in equity (items 1.12 to 1.15)
1.17	Total changes in equity not resulting from	$\blacksquare$
	transactions with owners as owners

Condensed consolidated statement of financial performance

Earnings per security (EPS)	Current period	Previouscorrespondingperiod
Basic EPS1.18
Diluted EPS1.19	(6.332) cps $\begin{array}{ l l } \hline 0.359 \text{ cps} \ \hline (6.332) \text{ cps} & 0.359 \text{ cps} \ \hline \end{array}$

+ See chapter 19 for defined terms.

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current	period$\blacksquare$	Previous
		$A'000		corresponding period -
				$A'000
1.20	Profit (loss) from ordinary activities after tax		(22, 293)	694
	(item 1.7)
1.21			(252)
	Less (plus) outside $+$ equity interests
1.22	Profit (loss) from ordinary activities after		(22, 041)	771
	tax, attributable to members

Revenue and expenses from ordinary activities

(see note $15$ )

		Current	period	Previous
		$A'000		corresponding period -
				$A'000
1.23	Revenue from sales or services		34,570	25,014

1.24	Interest revenue		202	88

1.25	Other relevant revenue
	Proceeds from sale of shares			26,724
	Proceeds from sale of prop., plant and equip.		391	1,532
	Other revenue		167	403
1.26	Details of relevant expenses
	Cost of sale of investment			17,502
	Changes in inventory - finished goods and
	work in progress		(700)	391
	Raw materials and consumables used		7,622	6,499
	Employee expenses		4,536	5,255
	Cost of sale of plant and equipment		22	837
	Cost of contract mining		11,701	7,289
	Cost of contract processing		1,596	1,001
	Exploration drilling and assay expenditure		1,397	1,074
	Exploration consultant expenditure		1,692963
	Other expenses from ordinary activities		3,564	1,835
	Cummulative effect of exploration write off -
	change of accounting policy		4,422
	Borrowing costs		2,242	1,374
1.27	Depreciationand amortisationexcluding
	amortisation of intangibles (see item 2.3)		15,601	10,010

	Capitalised outlays
1.28	Interest costs capitalised in asset values
1.29	Outlays capitalised in intangibles (unless
	arising from an $+$ acquisition of a business)

+ See chapter 19 for defined terms.

		Current period -$A'000	Previous correspondingperiod - $A'000
1.30	Retained profits (accumulated losses) at thebeginning of the financial period	(58, 787)	(40, 893)
1.31	Net profit (loss) attributable to members (itemLID	(22, 041)	771
1.32	Net transfers from (to) reserves (details ifmaterial)
1.33	Net effect of changes in accounting policies
1.34	Dividends and other equity distributions paidor payable
1.35	Retained profits (accumulated losses) at endof financial period	(80, 828)	(40,122

Consolidated retained profits

Intangible and extraordinary items

			Consolidated - current period
		Before tax$A'000	Related tax$A'000	Relatedoutside	Amount (after${ax}$
		(a)	(b)	$+$ equityinterests$A'000(c)	attributable tomembers$A'000(d)
2.1	Amortisation of goodwill
2.2	Amortisation of otherintangibles		-
2.3	Total amortisation ofintangibles
2.4	Extraordinaryitems(details)
2.5	Total extraordinary items

Comparison of half year profits

(Preliminary final report only)

Consolidated profit (loss) from ordinary $3.1$ activities after tax attributable to members reported for the $1st$ half year (item $1.22$ in the half yearly report)

Current year - $A'000	Previous year - $A'000$\blacksquare$

(22,041)	77

+ See chapter 19 for defined terms.

3.2	Consolidated profit (loss) from ordinaryactivities after tax attributable to members forthe 2nd half year		N/A		(18, 665)
	Condensed consolidated statementof financial position	Atendοfcurrent period$A'000	As shown in lastannual report$A'000		As in last halfyearly report$A'000
	Current assets
4.1	Cash	260		10,869	2,530
4.2	Receivables	2,849		3,287	2,752
4.3	Investments	4,891
4.4	Inventories	5,027		5,151	5,255
4.5	Tax assets
4.6	Other (provide details if material)	6,363		6,914	6,865
4.7	Total current assets	19,390		26,221	17,402
	Non-current assets
4.8	Receivables				25
4.9	Investments (equity accounted)
4.10	Other investments			4,526	10
4.11	Inventories
4.12	Exploration and evaluation expenditurecapitalised (see para .71 of AASB1022)	30,841		34,513	33,057
4.13	$\int$ miningDevelopmentpropertiesentities)	13,635		23,675	26,436
4.14	Other property, plant and equipment	9,424		9,906	7,892
4.15	(net)Intangibles (net)
4.16	Tax assets			2,965	2,965
4.17	Other (provide details if material)
	Restricted cashOther	3,337
		188		232
4.18	Total non-current assets	57,425		75,817	70,385
4.19	Total assets	76,815		102,038	87,787

	Current liabilities	9,720		15,905	16,274
4.20	Payables
4.214.22	Interest bearing liabilitiesTax liabilities	11,845		12,926	10,563
4.23	Provisions exc. tax liabilities	1,065		1,037	868
4.24	Other (provide details if material)
4.25	Total current liabilities	22,630		29,868	27,705

	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities	6,251		9,393	540
4.28	Tax liabilities

See chapter 19 for defined terms.

	Condoneed consolidated statement of financial necition continued
4.31	Total non-current liabilities	9,062	12,062	2.749
4.30	Other (provide details if material)	-	-
4.29	Provisions exc. tax liabilities	2.811	2,669	2.209

ndensed consolidated statement of financial position continued

4.32	Total liabilities	31,692	41,930	30,454
4.33	Net assets	45,123	60,108	57,333

	Equity
4.34	Capital/contributed equity	124,350	118,213	97,125
4.35	Reserves	1,601	430
4.36	Retained profits (accumulated losses)	(80, 828)	(58, 787)	(40,122)
4.37	Equity attributable to members of the
	parent entity	45,123	59,856	57,003
4.38	Outside + equity interests in controlled
	entities	۰	252	330

4.39	Total equity	45,123	60,108	57,333

4.40	Preference capital included as part of4.37

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period $A'000	Previouscorresponding period -$A'000
5.1	Opening balance	34,513	31,860
5.2	Expenditure incurred during current period	2,381	4,312
5.3	Expenditure written off during current period	(6,053)	(1,955)
5.4	Acquisitions, disposals, revaluationincrements, etc.		3,500
5.5	Expenditure transferred to DevelopmentProperties		(4,660)
5.6	Closing balance as shown in theconsolidated balance sheet (item 4.12)	30,841	33,057

Development properties

(To be completed only by entities with mining interests if amounts are material)

$\overline{\phantom{a}}$

+ See chapter 19 for defined terms.

		Current period $A'000	Previous
			corresponding
			period - $A'000
6.1	Opening balance	23,675	13,212
6.2	Expenditure incurred during current period	6,915	17,418
6.3	Expenditure transferred from exploration and
	evaluation		4,660
6.4	Expenditure written off during current period	(17,109)	(8, 854)
6.5	Acquisitions, disposals, revaluation
	increments, etc.	154
6.6	Expenditure transferred to mine properties

6.7	Closing balance as shown in the
	consolidated balance sheet (item $4.13$ )	13,635	26,436

Condensed consolidated statement of cash flows

		Current period	Previous
		$A'000	corresponding period
			$-$ $A'000
	Cash flows related to operating activities
7.1	Receipts from customers	38,483	26,678
7.2	Payments to suppliers and employees	(41, 451)	(21, 159)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar naturereceived	202	88
7.6	Interest and other costs of finance paid	(746)	(1,046)
7.7	Income taxes paid
7.8	Other (provide details if material)

7.9	Net operating cash flows	(3,152)	4,561
	Cash flows related to investing activities
7.10	Payment for purchases of property, plant andequipment	(437)	(1,933)
7.11	Proceeds from sale of property, plant andequipment	391	1,532
7.12	Payment for purchases of equity investments	(365)
7.13	Proceeds from sale of equity investments		26,724
7.14	Loans to other entities
7.15	Loans repaid by other entities
7.16	Other (provide details if material)
	Payments in respect of exploration, evaluation &
	development	(4,371)	(22, 239)
	Payments to increase security bonds	(1,500)
7.17	Net investing cash flows	(6, 282)	4,084
	Cash flows related to financing activities

+ See chapter 19 for defined terms.

7.18	Proceeds from issues of $+$ securities (shares,options, etc.)	5,361
7.19	Proceeds from borrowings	4,000	3,538
7.20	Repayment of borrowings	(8,699)	(13, 342)
7.21	Dividends paid
7.22	Other (provide details if material)		(1,066)


7.23	Net financing cash flows	662	(10, 870)

7.247.25	Net increase (decrease) in cash heldCash at beginning of period	(8,772)9,032	$(2,225)$4,755
7.26	(see Reconciliation of cash)Exchange rate adjustments to item 7.25.
7.27	Cash at end of period(see Reconciliation of cash)	260	2,530

Non-cash financing and investing activitiesDetails of financing and investing transactions which have had a material effect on consolidated assets and liabilitiesbut did not involve cash flows are as follows. (If an a $\overline{\phantom{a}}$

Reconciliation of cash

Reconciliation of cash at the end of the period (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current period $A'000	Previouscorrespondingperiod - $A'000
8.1	Cash on hand and at bank		2,197
8.2	Deposits at call	259	332
8.3	Bank overdraft
8.4	Other
8.5	Total cash at end of period (item 7.27)	260	2,530

Other notes to the condensed financial statements

Ratios		Current period	Previouscorrespondingperiod
9.1	Profit before fax / revenueConsolidated profit (loss) from ordinaryactivities before tax (item $1.5$ ) as a percentageof revenue $(item$ 1.1)	(55%)	$1%$
9.2	Profit after tax $/$ $+$ equity interestsConsolidated net profit (loss) from ordinaryactivities after tax attributable to members$(item 1.11)$ as a percentage of equity (similarlyattributable) at the end of the period (item4.37	(49%)	$1%$

+ See chapter 19 for defined terms.

Earnings per security (EPS)

Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

.
Basic EPS(a)	$(6.332)$ cps	$0.359$ cps
Diluted EPS (if materially different from(b)	N/A	N/A
(a))
Weighted average number of ordinary(c)
shares outstanding during the period used in the	348,075,834	214,693,287
calculation of the Basic EPS
Retained profit/(loss) for the period used in(d)
the calculation of basic earnings per share
	(22,041,000)	771.000

NTA backing(see note 7)	Current period	Previous correspondingperiod
11.1Net tangible asset backing per + ordinarysecurity	N/A	N/A

Discontinuing Operations

(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 (g) of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

$12.1$ Discontinuing Operations

$N/A$

+ See chapter 19 for defined terms.

Control gained over entities having material effect

13.1 Name of entity (or group of entities)

None

13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was $+$ acquired
13.3 Date from which such profit has been calculated
13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

$\mathbf{N}/\mathbf{A}$
N/A

$\rm N/A$

Loss of control of entities having material effect

14.1 Name of entity (or group of entities)

None

14.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control
14.3 Date to which the profit (loss) in item 14.2 has been calculated
14.4 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
14.5 Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

Dividends (in the case of a trust, distributions)

15.1 Date the dividend (distribution) is payable
15.2 +Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if $\dot{\tau}$ securities are not $\dot{\tau}$ CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if +securities are +CHESS approved)
15.3 If it is a final dividend, has it been declared? (Preliminary final report only)

	+ See chapter 19 for defined terms.

N/A
N/A

N/A

N/A

N/A

N/A

$N/A$

Amount per security

		Amount persecurity	Frankedamount persecurity at %tax (see note4
15.4	(Preliminary final report only)Final dividend:Current year	-Ć	- C
15.5	Previous year	-Ć.	-Ć
15.6	(Half yearly and preliminary final reports)Interim dividend: Current year	-Ć	- 6
15.7	Previous year	-C	- 0

Total dividend (distribution) per security (interim plus final)

(Preliminary final report only)

		Current year	Previous year
15.8	+ Ordinary securities	щé
15.9	Preference +securities	-e

Half yearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

		Current period $A'000
15.10	$+$ Ordinary securities (each class separately)	-é
15.11	Preference + securities (each classseparately)	чÉ
15.12	Other equity instruments (each classseparately)	-é
15.13	Total	-é

The $+dividend$ or distribution plans shown below are in operation.

The last date(s) for receipt of election notices for the +dividend or distribution plans

$\overline{a}$

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

$\overline{a}$

+ See chapter 19 for defined terms.

				Details of aggregate share of profits (losses) of associates and joint venture
entities

entities':	Group's share of associates' and joint venture	Current period$A'000	Previouscorresponding period- $A'000
16.1	Profit (loss) from ordinary activities before tax
16.2	Income tax on ordinary activities
16.3	Profit (loss) from ordinary activities aftertax
16.4	Extraordinary items net of tax
16.5	Net profit (loss)
16.6	Adjustments
16.7	Share of net profit (loss) of associates andjoint venture entities

Material interests in entities which are not controlled entitiesThe economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired ordisposed of during either the cur or disposal ("to dd/mm/yy").)

Name of entity		Percentage of ownershipinterest held at end of period ordate of disposal		Contribution to net profit (loss) (item1.9)
17.1	Equity accountedassociates andjoint ventureentities	CurrentPeriod	Previouscorrespondingperiod	Current period$A'000	Previouscorrespondingperiod -$A'000

17.2	Total
17.3	Other materialinterests
17.4	Total

$+$ See chapter 19 for defined terms.

Issued and quoted securities at end of current period(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

Category of + securities		Total number	Number quoted	Issuepricepersecurity(see note(4)(cents)	Amountpaid uppersecurity(seenote $14$ )(cents)
18.1	Preference + securities(description)	N/A
18.2	Changes during current period(a) Increases through issues(b) Decreases through returnsof capital, buybacks,redemptions	N/A
18.3	+ Ordinary securities	364,952,803	364,952,803
18.4	Changes during current period(a) Increases through issues(b) Decreases through returnsof capital, buybacks	1,210,052196,5621,846,62834, 333, 332280,1401,562,0001,067,6164,261,200437,00645,194,536	1,210,052196,5621,846,62834,333,332280,1401,562,0001,067,6164,261,200437,00645,194,536	$0.2037$0.2263$0.2143$0.1650$0.1973$0.0960$0.0843$0.1021$0.1136	$0.2037$0.2263$0.2143$0.1650$0.1973$0.0960$0.0843$0.1021$0.1136
18.5	+ Convertible debt securities(description and conversionfactor)	N/A
18.6	Changes during current period(a) Increases through issues(b) Decreases throughsecurities matured, converted	N/A
18.7	Options (description andconversion factor)			Exerciseprice	Expirydate$(f \text{ any})$

+ See chapter 19 for defined terms.

18.8	Issued during current period	Listed
		17,166,666	30.00c	29/2/04
		5,000,000	30.00 с	29/2/04
		22,166,666

		Unlisted
		483,482	21.25c	11/7/05
		49,252	20,86 с	11/7/05
		241,856	21,24c	11/7/05
		499,597	21.25 c	13/8/05
		50,894	20,86 с	13/8/05
		249,917	21,24c	13/8/05
		499,597	21.25c	13/9/05
		50,894	20,86 с	13/9/05
		249,917	21,24c	13/9/05
		483,482	21.25c	10/10/05
		49,252	20,86 с	10/10/05
		241,854	21,24 c	10/10/05
		1,482,677	21.25c20,86 с	7/7/067/7/06
		151,040741,686	21.24 с	7/7/06
		3,177,890	11.38 c	7/7/06
		8,703,287


18.9	Exercised during current
	period	None

18.10	Expired during current period
		None
18.11	Debentures (description)

18.12	Changes during current period
	(a) Increases through issues	N/A
	(b) Decreases through
	securities matured, converted

18.13	Unsecured notes
	(description)
18.14	Changes during current period
		N/A
	(a) Increases through issues
	(b) Decreases through
	securities matured, converted

Segment reporting

(Information on the business and geographical segments of the entity must be reported for the current period in accordance with AASB 1005: Segment Reporting and for half year reports, AASB 1029: Interim Financial Reporting. Because entities employ different structures a pro forma cannot be provided. Segment information in the layout employed in the entity's $\pm$ accounts should be reported separately and attached to this report.)

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the

+ See chapter 19 for defined terms.

Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

Basis of financial report preparation

If this report is a half yearly report, it is a general purpose financial report prepared in accordance with $10L$ the listing rules and AASB 1029: Interim Financial Reporting. It should be read in conjunction with the last +annual report and any announcements to the market made by the entity during the period. The financial statements in this report are "condensed financial statements" as defined in AASB 1029: Interim Financial Reporting. This report does not include all the notes of the type normally included in an annual financial report. [Delete if preliminary final report.]
19.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

Change in accounting policy for treatment of Exploration, Evaluation and Development Expenditure

The recoverability of amounts shown for mining properties is dependent upon the existence of economically recoverable reserves; the acquisition and maintenance of appropriate permits, licenses and rights; the ability of the Company to obtain financing to complete the development of the properties where necessary and upon future profitable production: or, alternatively, upon the Company's ability to recover its spent costs through a disposition of its interests.

An adjustment of $8,532,000 was made on the statement of financial performance as a result of this change in accounting policy: $\mathbf{S}$

Cumulative effect of write off of exploration expenditure
incurred prior to 1 July 2002	4.422.000
Current period exploration expenditure written off
- Exploration drilling and assay expenditure	1.692.000
- Exploration consultant expenditure	963.000
- Other exploration expenditure items	1,455,000
	8,532,000

The previous accounting policy was to carry forward exploration and evaluation expenditure to the extent that such activities in the area of interest had not vet reached a stage which permitted a reasonable assessment of the existence or otherwise of recoverable mineral resources.

+ See chapter 19 for defined terms.

19.3 A description of each event since the end of the current period which has had a material effect and which is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

TBA

19.4 Franking credits available and prospects for paying fully or partly franked dividends for at least the next year.

$N/A$

$19.5$ Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with $AASB$ 1001: Accounting Policies-Disclosure).

$N/A$

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

$N/A$

19.7 Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last+ annual report.

$N/A$

$+$ See chapter 19 for defined terms.

Additional disclosure for trusts

$20.1$ Number of units held by the management company or responsible entity or their related parties.
20.2 A statement of the fees and commissions payable to the management company or responsible entity.

Identify:

initial service charges ٠
management fees
other fees

$N/A$

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the *annual report will be available

N/A
N/A
N/A
N/A

Compliance statement

$\mathbbm{1}$ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

$\overline{2}$ This report, and the "accounts upon which the report is based (if separate), use the same accounting policies.
This report does give a true and fair view of the matters disclosed (see note 2). 3
$\overline{4}$ This report is based on +accounts to which one of the following applies. (Tick one)

$+$ See chapter 19 for defined terms.

The * accounts have been $\sqrt{\phantom{a}}$audited.	The "accounts have been"subject to review.
The $\frac{1}{2}$ accounts are in the $\Box$process of being audited orsubject to review.	The "accounts have not yetbeen audited or reviewed.

5 If the audit report or review by the auditor is not attached, details of any qualifications are attached. (Half yearly report only - the audit report or review by the auditor must be attached to this report if this report is to satisfy the requirements of the Corporations Act.)
6 The entity has a formally constituted audit committee.

(Director/Company Secretary)

Date: ... 6 March 2003...................................

Print name: ....Alan Rule....................................

Notes

Sign here:

$\mathbb{L}$ For announcement to the market. The percentage changes referred to in this section are the percentage changes calculated by comparing the current period's figures with those for the previous corresponding period. Do not show percentage changes if the change is from profit to loss or loss to profit, but still show whether the change was up or down. If changes in accounting policies or procedures have had a material effect on reported figures, do not show either directional or percentage changes in profits. Explain the reason for the omissions in the note at the end of the announcement section. Entities are encouraged to attach notes or fuller explanations of any significant changes to any of the items in page 1. The area at the end of the announcement section can be used to provide a cross reference to any such attachment.
$\mathcal{D}$ True and fair view If this report does not give a true and fair view of a matter (for example, because compliance with an Accounting Standard is required) the entity must attach a note providing additional information and explanations to give a true and fair view.

$\mathbf{3}$ . Condensed consolidated statement of financial performance

Item $11$ The definition of "revenue" and an explanation of "ordinary activities" are set out in AASB 1004: Revenue, and AASB 1018: Statement of Financial Performance. Item $1.6$ This item refers to the total tax attributable to the amount shown in item 1.5. Tax includes income tax and capital gains tax (if any) but excludes taxes treated as expenses from ordinary activities (eg, fringe benefits tax).

+ See chapter 19 for defined terms.

$\overline{4}$ . Income tax If the amount provided for income tax in this report differs (or would differ but for compensatory items) by more than 15% from the amount of income tax prima facie payable on the profit before tax, the entity must explain in a note the major items responsible for the difference and their amounts. The rate of tax applicable to the franking amount per dividend should be inserted in the heading for the column "Franked amount per security at $\frac{9}{6}$ $\text{tax}$ " for items 15.4 to 15.7.

5. Condensed consolidated statement of financial position

Format The format of the consolidated statement of financial position should be followed as closely as possible. However, additional items may be added if greater clarity of exposition will be achieved, provided the disclosure still meets the requirements of AASB 1029: Interim Financial Reporting, and AASB 1040: Statement of Financial Position. Also, banking institutions, trusts and financial institutions may substitute a clear liquidity ranking for the Current/Non-Current classification.

Basis of revaluation If there has been a material revaluation of non-current assets (including investments) since the last +annual report, the entity must describe the basis of revaluation adopted. The description must meet the requirements of AASB 1010: Accounting for the Revaluation of Non-Current Assets. If the entity has adopted a procedure of regular revaluation, the basis for which has been disclosed and has not changed, no additional disclosure is required.

1. Condensed consolidated statement of cash flows For definitions of "cash" and other terms used in this report see AASB 1026: Statement of Cash Flows. Entities should follow the form as closely as possible, but variations are permitted if the directors (in the case of a trust, the management company) believe that this presentation is inappropriate. However, the presentation adopted must meet the requirements of $AASB$ 1026. $\pm$ Mining exploration entities may use the form of cash flow statement in Appendix 5B.
$7.$ Net tangible asset backing Net tangible assets are determined by deducting from total tangible assets all claims on those assets ranking ahead of the $+$ ordinary securities (ie, all liabilities, preference shares, outside +equity interests etc). +Mining entities are not required to state a net tangible asset backing per $+$ ordinary security.
1. Gain and loss of control over entities. The gain or loss must be disclosed if it has a material effect on the +accounts. Details must include the contribution for each gain or loss that increased or decreased the entity's consolidated profit (loss) from ordinary activities and extraordinary items after tax by more than 5% compared to the previous corresponding period.
$91$ Rounding of figures This report anticipates that the information required is given to the nearest $1,000. If an entity reports exact figures, the $A'000 headings must be amended. If an entity qualifies under ASIC Class Order 98/0100 dated 10 July 1998, it may report to the nearest million dollars, or to the nearest $100,000, and the $A'000 headings must be amended.
$10.$ Comparative figures Comparative figures are to be presented in accordance with AASB 1018 or AASB 1029 Interim Financial Reporting as appropriate and are the unadjusted figures from the latest annual or half year report as appropriate. However, if an adjustment has been made in accordance with an accounting standard or other reason or if there is a lack of comparability, a note explaining the position should be attached. For the statement of

+ See chapter 19 for defined terms.

financial performance, AASB 1029 Interim Financial Reporting requires information on a year to date basis in addition to the current interim period. Normally an Appendix 4B to which AASB 1029 Interim Financial Reporting applies would be for the half year and consequently the information in the current period is also the year to date. If an Appendix 4B Half yearly version is produced for an additional interim period (eg because of a change of reporting period), the entity must provide the year to date information and comparatives required by AASB 1029 Interim Financial Reporting. This should be in the form of a multi-column version of the consolidated statement of financial performance as an attachment to the additional Appendix 4B.

$11.$ Additional information An entity may disclose additional information about any matter, and must do so if the information is material to an understanding of the reports. The information may be an expansion of the material contained in this report, or contained in a note attached to the report. The requirement under the listing rules for an entity to complete this report does not prevent the entity issuing reports more frequently. Additional material lodged with the +ASIC under the Corporations Act must also be given to ASX. For example, a director's report and declaration, if lodged with the $\pm$ ASIC, must be given to ASX.
1. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if one exists) must be complied with.
Corporations Act financial statements This report may be able to be used by an entity $13.$ required to comply with the Corporations Act as part of its half-year financial statements if prepared in accordance with Australian Accounting Standards.
$14.$ Issued and quoted securities The issue price and amount paid up is not required in items 18.1 and 18.3 for fully paid securities.
15 Details of expenses AASB 1018 requires disclosure of expenses from ordinary activities according to either their nature or function. For foreign entities, there are similar requirements in other accounting standards accepted by ASX. AASB ED 105 clarifies that the disclosures required by AASB 1018 must be either all according to nature or all according to function. Entities must disclose details of expenses using the layout (by nature or function) employed in their $+$ accounts.

The information in lines 1.23 to 1.27 may be provided in an attachment to Appendix 4B.

Relevant Items AASB 1018 requires the separate disclosure of specific revenues and expenses which are not extraordinary but which are of a size, nature or incidence that disclosure is relevant in explaining the financial performance of the reporting entity. The term "relevance" is defined in AASB 1018. There is an equivalent requirement in AASB 1029: Interim Financial Reporting. For foreign entities, there are similar requirements in other accounting standards accepted by ASX.

16 Dollars If reporting is not in A$, all references to $A must be changed to the reporting currency. If reporting is not in thousands of dollars, all references to "000" must be changed to the reporting value.

17. Discontinuing operations Half yearly report

$+$ See chapter 19 for defined terms.

All entities must provide the information required in paragraph 12 for half years beginning on or after 1 July 2001.

Preliminary final report

Entities must either provide a description of any significant activities or events relating to discontinuing operations equivalent to that required by paragraph 7.5 (g) of $AASB$ 1029. Interim Financial Reporting, or, the details of discontinuing operations they are required to disclose in their +accounts in accordance with AASB 1042 Discontinuing Operations.

In any case the information may be provided as an attachment to this Appendix 4B.

18. Format

This form is a Word document but an entity can re-format the document into Excel or similar applications for submission to the Companies Announcements Office in ASX.

+ See chapter 19 for defined terms.

AI assistant

ST BARBARA LIMITED — Interim / Quarterly Report 2003

65749_rns_2003-03-06_bea12c04-6fbf-48d8-84f2-e5a47a507bea.pdf

ST BARBARA MINES LIMITED

Interim Financial Result 2002/03 and Outlook FINANCE

OUTLOOK

ST BARBARA MINES LIMITED

Financial Performance

Simplified Statement of Financial Performance $(5,000)$

Segmental Analysis

Interim Financial Result 2002/03 and Outlook

Cash Flow Statement

Financial Position

Simplified Statement of Financial Position

ST BARBARA MINES LIMITED

Interim Financial Result 2002/03 and Outlook

OUTLOOK

Financial Position

Meekatharra Production

Defiance Merger Proposal

CORPORATE INFORMATION

Stock Exchange Listings

Issued Canital

Maior Shareholders

Substantial Shareholders

Shareholder Enquiries

Australia:

ST BARBARA MINES LIMITED

HALF-YEAR FINANCIAL REPORT

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES

CONTENTS

Page

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS REPORT

Directors

Review of Operations

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS REPORT (cont)

Events subsequent to 31 December 2002

Rounding Off

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF FINANCIAL PERFORMANCE for the 6 months ended 31 December 2002

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF FINANCIAL POSITION as at 31 December 2002

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CASH FLOWS for the 6 months ended 31 December 2002

Note 1 - Basis of preparation of half-year consolidated financial report

Change in accounting policy for treatment of Exploration, Evaluation and Development Expenditure

Note 1 - Basis of preparation of half-year consolidated financial report - continued

Note 2 - Segment Information

Note 4 - Income Tax

Note 7 - Accumulated Losses

Note 8 - Notes to Statement of Cash Flows

(i) Non Cash Financing and Investing Activities

Note 10 - Contingent Liabilities

Note 11 - Earnings Per Share

Note 12 - Events Subsequent to Balance Date

ST BARBARA MINES LIMITED AND ITS CONTROLLED ENTITIES Half-year financial statements for the 6 months ended 31 December 2002

DIRECTORS' DECLARATION

PRICEWATERHOUSE COPERS

Independent review report to the members of St Barbara Mines Limited

Statement

Scope and summary of our role

The financial report - responsibility and content

The auditor's role and work

PricewatErhouse(copers @

Independence

Appendix 4B

Half yearly/preliminary final report

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

Condensed consolidated statement of financial performance

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

Revenue and expenses from ordinary activities

Consolidated retained profits

Intangible and extraordinary items

Comparison of half year profits

Notes to the condensed consolidated statement of financial position

Development properties

Condensed consolidated statement of cash flows

Reconciliation of cash

Other notes to the condensed financial statements

Earnings per security (EPS)

Discontinuing Operations

Control gained over entities having material effect

ST BARBARA LIMITED Interim / Quarterly Report 2003