ST BARBARA LIMITED — Interim / Quarterly Report 2004

Apr 29, 2004

ST BARBARA MINES LIMITED

ACN 009 165 066

ACTIVITIES REPORT

Three months to 31 March 2004

Enquiries regarding this report may be directed to:

Stephen W. Miller

Executive Chairman Telephone $(08)$ 9476 5555 Overseas +61 8 9476 5555

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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 $-vith over 11,000 shareholders.$

OVERVIEW

Meekatharra Operations

Gold production 4,660 ounces, sourced entirely from low grade stockpiles, predominantly Paddys Flat

Finance

Demag H455S Komatsu face shovel (non core asset) sold realising a net $2.1 million after residual and eliminating $1.4 million in annual lease fees.

Paddys Flat Development

Detailed mine design for Prohibition/Red Spider multi-zone increased resource identifies opportunities to reduce development metres

Meekatharra Joint Ventures

• Burnakura JV interest sold to partner ($1.0 million)
• Polelle JV positive in-fill and extension results at Kanji, south of Mulla Mulla deposit
• Reedys new JV exploration programme announced
• Annean JV- new $4 million JV over 480 km2

Paulsens Development

• Resource extension drilling proceeding
  • 32 holes completed (94 percent intersecting orebody) including, 5.1 metres at $31.7g/t$ , 4.0 metres at $23.8g/t$ , 2.1 metres at 31.8g/t, 2.5 metres at 62.6g/t and 3.6 metres at 25.5g/t
• Senior underground mine appointments completed
• Tender evaluation in progress for power, road access, mining and camp establishment

ACN 009 165 066

CHAIRMAN'S REVIEW

Meekatharra exploration commitments, non-core asset rationalisation and advanced planning for sustainable operations at Meekatharra were key features of the period, together with the development of the Paulsens high grade mine through the Company's 55% subsidiary, NuStar Mining Corporation.

The Company continued to aggressively manage the large Meekatharra landbank leveraging the existing infrastructure asset base.

A new joint venture, Annean JV, was formed with Aurogenic Resources, a company with strong corporate management and technical expertise. This increases the ground under joint venture to 1,100 km2 with expenditure commitments by third parties totaling $4 million in the next year and potentially $20 million over a five year period.

Non-core assets were rationalised including a minority interest in Burnakura JV (for $1 million and release of environmental bonds $0.2 million) and the sale of the Komatsu large face shovel. inherited from the previous management, for a net $2.1 million and extinguishment of annual lease fees of $1.4 million.

At Meekatharra, the exploration results at Paddys Flat Prohibition orebody were incorporated into a revised mine plan. The newly defined multi-zoned orebody generated the opportunity for the decline to be located closer than the initial design, with a commensurate saving in level development metres.

A review of the long term strategic direction for Meekatharra Operations led to a decision to completely re-structure and re-configure the project to provide both open pit and underground mining capacity, and a flexible processing facility capable of treating a broad range of future ore types, sourced from current resources, expanding exploration programmes, and indicated toll treatment demand.

This strategic change will provide for sustainable, long term gold production from this area.

To facilitate the re-structure necessary to achieve the above objective, processing operations will be temporarily suspended by the end of the June quarter with recommencement dictated by completion of required plant modifications, progress at Paddys Flat underground project, the Batavia open pit project, and completion of current resource expansion programmes at Mulla Mulla, Kanji and Miniritchie.

At Paulsens, thirty-two of the sixty planned resource extension holes were completed. All except two intersected the orebody - these intersected dykes which will be incorporated into the mine design as integral to ground support. Full results were available for thirteen holes recording twelve intersections which exceeded the nominal 2 metre by $4 g/t$ underground resource cut-off, including five particularly high grade intersections. In an increasingly competitive market for key underground personnel, the Company secured the services of a project manager, manager mining and senior mine geologist, each with specialised experience from majors Anglogold and Newmont. The underground team is now complete. Tenders were also issued for power, camp installation and management, road access and mining. Paulsens remains on schedule for mine development start-up in the September 2004 quarter.

ben W. Miller Executive Chairman

30 April 2004

ACN 009 165 066

MANAGEMENT DISCUSSION AND ANALYSIS

PRODUCTION

Gold production at 4,660 ounces was 62 percent lower than the previous quarter.

Mill feed comprised low grade stockpiles, predominantly Paddys Flat No. 1, 2 and 3, with No.1 & 2 stockpiles depleted by quarter end.

Lower gold production resulted from lower mill throughput, the result of introducing campaign milling and the failure of the SAG mill lining during February.

OUTLOOK

Paddys Flat Underground Project

A detailed review of the increased, multi-zone Prohibition resource and the updated Vivians resource revealed significant opportunities to reduce underground development metres and resultant costs, by re-positioning the main Prohibition decline closer to the ore zones, and reducing the development necessary between the Prohibition, Vivians and Consols resources.

Further metallurgical investigations and modelling on the Paddys Flat project have identified the need to facilitate process plant modifications to the existing facility to incorporate the harder ore into the milling schedule.

Process Plant Operations

Campaign milling of the remaining Paddys Flat No.3 stockpile ore will continue through to the June quarter, after which operations will be suspended in order to incorporate plant modifications and re-structuring to optimise the future underground and open pit resources.

Production and Sales Statistics

Period	3 Months to31 Mar 2003	9 Months to31 Mar 2003
Ore mined (tonnes)	nil	nil
Ore milled (tonnes)	214.192	1,477,911
Grade milled (g/t)	0.82	0.83
Recovery (%)	82.3	82.5
Gold produced (ounces)	4,660	32,956
Gold sold (ounces)	4,881	35,455

FINANCE

Realised Gold Price

A total of 4.881 ounces was sold at a net realised gold price of $530 per ounce (against an average spot price of $534 per ounce).

The Company has no hedge positions.

Financial Performance

Meekatharra Operations generated a $1.6 million cash loss for the quarter and a total of $0.9 million net cash for the nine months to 31 March 2004.

Financial Position

As at 31 March 2004, consolidated cash and bullion totaled $16.3 million (plus $3.3 million in rehabilitation bonds).

Meekatharra Joint Ventures

Momentum at the Polelle JV (St Barbara managed - Elara Mining funded) accelerated with significant results at Kanji, 6 kms south of the Mulla Mulla deposit.

In-fill and extension drilling has now advanced Kanji to a 900 metre strike and RC drill status. With results at the adjacent Miniritchie prospect (600 metre strike) awaited, Kanji Miniritchie and Mulla Mulla represent a significant potential resource inventory for inclusion in future mine planning.

A new joint venture, the Annean JV, was formed with Aurogenic Resources over five tenement blocks within economic trucking distance of the Company treatment plant, and totalling 480 km2. Aurogenic can earn a 51 percent interest by the expenditure of $4 million over three years (committed $1 million in the first year) and a further 19 percent by the additional expenditure of $4 million over a further two years.

At the Lights of Asia prospect (Cue Goldfield JV) our joint venture partner reports the completion of 57 RC holes and consequent high grade zone extension to 400 metres strike and 150 metres down dip. The deposit remains open to the north and down dip.

Information in this report relating to mineral 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

MANAGEMENT DISCUSSION AND ANALYSIS

Paulsens Project Implementation (NuStar Mining Corporation-55% SBM)

The development of Paulsens as a high grade shallow underground gold mine commenced in January 2004, with detailed engineering ahead of tender document preparation, the appointment of key personnel and resource extension drilling the principal activities.

Paulsens is scheduled to be developed as a decline mine, to an initial depth of 200 metres to exploit a high grade $15.7$ g/t resource. The portal design and location has been determined, with independent geotechnical input. Detailed mine design of the current resource, which lies predominantly between 100 and 200 metres below surface, has significantly reduced the number of development metres in waste with commensurate cost and time benefits.

Tender documents have been prepared, issued and are at various stages of review for camp establishment and on-going catering, box cut excavation, access road establishment and power generation.

The most senior appointments -Project Manager (and registered manager), Mine Manager and Senior Mine Geologist - have been made, completing the underground team.

Each of the incumbents has extensive appropriate underground experience gained, most recently with AngloGold or Newmont Mining.

Resource Extension Drilling

A programme, comprising 50 holes (approximately 14,500 metres), commenced, predominantly targeting the down-plunge extension of the orebody below 200 metres vertical.

To date, with two diamond rigs on-site on double shift - an RC rig was released following completion of pre-collars - a total of 27 holes have been completed. All but two intersected the orebody as defined by the quartz host and the presence of sulphides.

Full assay results have been received for 13 holes, with 12 intersections recorded greater than the nominal underground cut-off of 2 metres by 4 g/t.

High grades, including 5.1 metres at 31.7 g/t, 4.0 metres at 23.8 g/t, 2.1 metres at 31.8 g/t, 2.5 metres at 62.6 g/t and 3.6 metres at 25.5 g/t were recorded. The frequency of high grades is generally in-line with previous results comprising the current resource estimate.

CORPORATE INFORMATION

Directors and Executive Management

S. W. Miller Executive Chairman
K. A. Dundo Non-Executive Director
M. K. Wheatley Non-Executive Director
H. G. Tuten Non-Executive Director
E. L. Boyd
Registered Office
Level 2. 16 Ord Street
West Perth WA 6005
Telephone: +61 8 9476 5555
Facsimile:
Email:
Website:www.stbarbara.com.au
Stock Exchange Listings
Australian Stock Exchange

AIM Board of London Stock Exchange Ticker Symbol: SBM

Issued Capital

As at the date of this report, issued capital is 574,149,157 shares.

There are 71,682,563 unlisted options exercisable at various prices between 11 cents and 40 cents up to 17 January 2008.

Major Shareholders

Resource Capital Fund II LP22.60%
Westpac Custodians 12.70%
National Nominees
Ocean Resource Capital Holdings 6.09%
Strata Mining Corporation Ltd 5.61%
Substantial Shareholders
Resource Capital Fund II LP 22.60%

RAB Europe Fund Ltd...................................
St James's Place Recovery Trust......... 7.04%
Ocean Resource Capital Holdings...... 6.09%
Strata Mining Corporation Ltd ........... 5.61%

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Telephone: .........................+1 212 815 2218