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

Half Year Financial Report 31 December 2010

Highlights:

Revenue up 26% to $173 million.
Net profit after tax up from $0.8 million to $41.5 million.
Earnings per share up from 0.31 cents to 12.74 cents.
Cash flow from operations up 129% to $57.0 million.
Cash on hand $96.0 million, with total debt of $12.5 million.
Cash on hand per share $0.29.

Details are set out in the attached Appendix 4D and financial statements.

Major achievements include:

Gold production up 9% to 124,161 ounces.
Safety performance significantly improved, with total recordable injury frequency rate falling from 12.8 to 8.9.

Tim Lehany Managing Director and CEO 24 February 2011

Appendix 4D

Half Year Report

Name of entity

ST BARBARA LIMITED
Half yearlyPreliminaryABN or equivalent companyfinal (tick)reference(tick)36 009 165 066		31 December 2010		Half year/financial year ended ('current period')
Results for announcement to the market		$%$		As'ooo
Revenues from ordinary activities	up	28%	to	182,749
Profit from ordinary activities after tax attributable tomembersPrior period profit: $803,000	up	5,067%	to	41,492
Profit attributable to membersPrior period profit: $803,000	up	5,067%	to	41,492
DividendsNo dividend has been declared
		31 Dec 10S		30 Jun 10S
Net Tangible Assets per security		1.24		1.08
Entities over which control has been gained or lost overthe period.		N/A		N/A
Details of dividend distribution		N/A		N/A
Details of reinvestment plans		N/A		N/A
Details of joint venture entities and associates		N/A		N/A
Foreign entity accounting standards		N/A		N/A
Audit dispute or qualification		N/A		N/A

Dated: 24 February 2011

Timothy J LehanyManaging Director and Chief Executive Officer

ST BARBARA LIMITED

ABN 36 009 165 066

INTERIM FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2010

DIRECTORS' REPORT
AUDITOR'S INDEPENDENCE DECLARATION
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED BALANCE SHEET
CONSOLIDATED STATEMENT OF CASH FLOWS
Note 1 – Basis of preparation
Note 2 – Significant accounting policies
Note 3 – Critical accounting estimates and judgements
Note 4 - Segment information
Note 5 – Events subsequent to balance date
Note 6 - Contingent liabilities
Note 7 - Dividends
Note 8 - Revenue
Note 9 – Finance costs
Note 10 – Significant Items
Note 11 – Cash and cash equivalents
Note 12 – Mine properties
Note 13 – Exploration and evaluation
Note 14 - Interest bearing liabilities
Note 15 – Derivative financial assets and liabilties
Note 16 – Contributed equity
DIRECTORS' DECLARATION
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ST BARBARA LTD 23

The Directors present their report on the Group, consisting of St Barbara Limited ("St Barbara") and the entities it controlled at the end of, or during, the half year ended 31 December 2010.

Directors

The following persons were Directors of St Barbara Limited at any time during the period and up to the date of this report:

S J C Wise Chairman
T J Lehany Managing Director & CEO
D W Bailey Non-executive director
B J Gibson Non-executive director Retired 18 November 2010
P C Lockyer Non-executive director
R K Rae Non-executive director

Principal activities

During the period the principal activities of the Group were mining and the sale of gold, mineral exploration and mine development. There were no significant changes in the nature of activities of the Group during the period.

Consolidated results

The Group reported a net profit after tax of $41,492,000 (2009: $803,000) for the six months ended 31 December 2010. The net profit for the period included significant items totalling a gain of $12,768,000 (2009: gain of $2,984,000). Underlying net profit after tax for the period, after excluding significant items, was $28,724,000 (2009: net loss of $2,181,000). The consolidated revenues and results for the period are summarized as follows:

	Period ended31 Dec 2010$'000	Period ended31 Dec 2009$'000
Salesrevenue	172,950	137,567
EBITDA (including significant items)	67,146	30,217
EBIT (including significant items)	40,483	3,297
Reported net profitafter tax for the year	41,492	803
Total significant items(after tax)	12,768	2,984
EBITDA–excluding significant items	54,378	27,233
EBIT –excluding significant items	27,715	313
Underlying net profit/(loss)after tax	28,724	(2,181)

Significant items included in the statutory net profit after tax for the period are as follows:

	Consolidated
	Period ended31 Dec 2010$'000	Period ended31 Dec 2009$'000
Profit on sale of Tarmoola processing plant(1)	1,164	-
Proceeds from sale of tenement rights(2)	1,963	-
Unrealised gain on derivatives(3)	9,641	-
Gain on sale of investments	-	2,724
Discount on buy-back of convertible notes	-	260
Total significant items	12,768	2,984

(1) During September 2010 the Company sold its Tarmoola processing plant, which was on care and maintenance and surplus to the Company"s requirements, for cash proceeds of $3,000,000. The profit recognised of $1,164,000 is after deducting the book value of assets related to the sale of $1,836,000.

(2) During October 2010 the Company sold tenements acquired for base metals prospectivity in the Leonora region and no longer considered strategic, to Jabiru Metals Limited for cash proceeds of $2,000,000 (less $37,000 for associated legal costs). There were no balances relating to these tenements previously capitalised on the balance sheet. The Company retains all gold rights associated with these tenements for a minimum of 5 years.

(3) At 31 December 2010 the mark-to-market value of the Company"s gold put and call options (collar structure) was negative $16,046,000 (30 June 2010: negative $38,674,000). In accordance with accounting standards the unrealised gain, representing the movement in the time value of the collar structure during the period, amounting to $9,641,000 was recognised in the income statement. The unrealised gain related to the movement in the intrinsic value of the collar structure in the period of $12,987,000 was recognised in the hedging reserve in equity. The gold put and call options provide price protection over 250,000 ounces of King of the Hills production. Over time, the remaining unrealised negative mark-to-market valuation will reverse either through a change to the mark-to-market value of the collar structure or maturity of the contracts.

Discussion and Analysis of Operating Results and the Income Statement

The Group reported a substantial profit of $41,492,000 for the half-year compared with the prior corresponding period profit of $803,000. Underlying profit for the half-year was $28,724,000 (2009: loss of $2,181,000), with the significant improvement compared to the prior corresponding period the result of higher gold sales and stronger gold price.

The Group"s focus during the period continued to be increasing production at the Gwalia underground mine at Leonora, development of the King of the Hills underground mine at Leonora, achievement of profitable production and extension of mine life at the Southern Cross operations and exploration for gold close to existing operations at Leonora and Southern Cross.

Financial performance

Total sales revenue of $172,950,000 (2009: $137,567,000) was generated from gold sales of 125,451 ounces (2009: 116,159 ounces) in the period at an average achieved gold price of A$1,370 per ounce (2009: A$1,178 per ounce). Total production for the period was 124,161 ounces, with Leonora operations contributing 58,510 ounces (2009: 50,735 ounces) and Southern Cross operations 65,651 ounces (2009: 63,203 ounces).

A summary of production performance for the period ended 31 December 2010 is provided in the table below.

		Leonora			Southern Cross
		6 months31 Dec 10	6 months31 Dec 09	6 months31 Dec 10	6 months31 Dec 09
Open Pit Ore Mined		-	-t	-	23,413
Grade	g/t	-	-	-	5.7
Underground Ore Mined		339,033	254,711 t	545,928	496,234
Grade	g/t	5.4	6.3	3.6	3.7
Ore Milled		363,940	265,061 t	562,989	744,589
Grade	g/t	5.2	6.2	3.9	3.2
Recovery	%	96	95	93	84
Gold Production		58,510	50,735oz	65,651	63,203
Cash Cost		832	A$/oz 635	820	907
Total Cost		1,088	891	979	1,084

Details of 2010 Production Performance

Gold production from the Gwalia underground mine in the period was below plan at 58,510 ounces (2009: 50,735 ounces), due to short term equipment unavailability in early July 2010, and operational mine planning and stope design issues in the December 2010 quarter. The operational issues in the December 2010 quarter, which have been resolved, were the main causes of lower head grade, lower production and higher unit costs. Mining and haulage performed well after the issues in July, and in the December 2010 quarter an annualised ore production rate of 735,000 tonnes was achieved. The processing plant continued to perform well during the period and achieved recoveries of 96%. During the period the Gwalia mill processed 67,000 tonnes of third party ore to utilise short term excess mill capacity.

Southern Cross operations performed strongly in the period producing 65,651 ounces (2009: 63,203 ounces), with ore sourced from the Marvel Loch underground mine. The Marvel Loch underground mine produced 545,928 tonnes (2009: 496,234 tonnes) at an average grade of 3.6g/t (2009: 3.7g/t) for the period. Treatment of higher grade stockpiles established in the previous financial year benefitted production in the period. Recoveries through the mill were higher than expected at an average of 93% (2009: 84%), due to greater consistency in the quality of mill feed, improved plant performance and the continuing benefits from the Acacia Reactor installed in the prior financial year.

Leonora unit cash cost for the period was $832 per ounce (2009: $635 per ounce), reflecting the negative impact of lower gold production and the introduction of a recharge of operating support costs during the period amounting to $31 per ounce of production. The operating support costs included in the recharge were previously accounted for as part of corporate administration costs. Southern Cross unit cash cost for the period at $820 per ounce (2009: $907 per ounce) was an improvement on the prior corresponding period despite the introduction of a recharge of operating support costs of $20 per ounce, due to higher grades and recoveries. Total cash operating costs at Leonora operations of $48,672,000 were higher compared with the prior corresponding period (2009: $32,196,000), due mainly to increased mining activity and tonnes mined. At Southern Cross operations total cash operating costs were $53,852,000 (2009: $57,315,000). The lower Southern Cross operating costs were due to the prior corresponding period including open pit operating costs and costs associated with operating the mill on a full time basis.

Other revenue of $5,388,000 (2009: $2,188,000) comprised mainly interest earned during the period of $3,048,000 (2009: $1,757,000) and revenue of $2,186,000 (2009: Nil) from toll-treating third party ore at the Gwalia mill.

Other income of $4,411,000 (2009: $3,067,000) included a net profit of $1,164,000 on the sale of the Tarmoola plant, a gain (net of costs) of $1,963,000 from the sale of excess tenements in the Leonora region, and the recovery of legal costs in relation to the Kingstream litigation (net of fees incurred in the current period) of $1,262,000. Other income in the prior corresponding period represented mainly the gain on sale of Unity Mining (formerly Bendigo Mining) shares.

Exploration expenditure in the period amounted to $8,872,000 (2009: $2,376,000), of which $5,160,000 (2009: $2,280,000) was expensed in the income statement. Exploration expenditure was higher than the prior corresponding period due to an increase in drilling expenditure, including the program to further delineate resources at Gwalia. Capitalised exploration in the period was in relation to the drilling program at Gwalia.

Corporate administration costs for the period of $6,603,000 (2009: $10,866,000) comprised mainly expenses related to the corporate office and compliance costs. During the period a recharge of operations support costs was introduced which reduced corporate administration costs by $4,565,000.

Royalty expenses for the period were $6,613,000 (2009: $5,349,000), reflecting the impact of the higher gold sales and achieved gold price. This expense represents gold royalties paid to the Western Australian Government and a third party corporate royalty, which equated to a charge of $53 per ounce.

Depreciation and amortisation of fixed assets and capitalised mine development amounted to $26,663,000 (2009: $26,920,000) for the period. Depreciation and amortisation attributable to Leonora was $15,840,000 (2009: $12,987,000) and Southern Cross was $10,539,000 (2009: $11,288,000), with the balance associated with corporate and exploration activities. The higher depreciation and amortisation charge in the period at Leonora was attributable to the higher production compared with the corresponding prior period.

Net finance costs decreased in the period to $2,039,000 (2009: $4,661,000) due to the repayment of the convertible notes during the year ended 30 June 2010.

An unrealised gain of $9,641,000 was recognised in the income statement for the period representing the movement in the mark-to-market valuation of the Company"s gold put and call options (collar structure) at 31 December 2010. Accounting standards require movements in the time value of the collar structure to be recognised in the income statement at each reporting date. The collar structure is a cash flow hedge which provides price protection for 250,000 ounces of King of the Hills production from April 2011 to June 2015.

Discussion and Analysis of the Cash Flow Statement

Operating activities

Cash flow from operating activities for the period was $56,951,000 (2009: $24,875,000), representing a significant increase on the prior corresponding period. The increase in operating cash flows was attributable to higher receipts from customers, reflecting the benefit of higher gold production and average achieved gold price. Payments to suppliers and employees were higher than the prior corresponding period at $115,365,000 (2009: $110,901,000), due mainly to the increase in ore tonnes mined at both Leonora and Southern Cross. Payments for exploration expensed in the period amounted to $5,160,000 (2009: $2,280,000), with the higher expenditure compared with the prior corresponding period attributable to increased exploration activity. Interest received of $2,376,000 (2009: $1,244,000) was higher than in the prior corresponding period as a result of the increased level of cash on deposit during the period. Interest paid in the period was $166,000 (2009: $3,084,000); the prior corresponding period included interest paid on convertible notes.

Investing activities

Net cash flows used in investing activities amounted to $60,191,000 (2009: $37,991,000) for the period. Higher expenditure in the period was attributable to the development of the King of the Hills underground mine, an increase in exploration expenditure capitalised and expenditure on a number of infrastructure projects at Leonora. In the period proceeds of $2,000,000 were received from the sale of tenements in the Leonora region. The prior corresponding period included proceeds of $9,976,000 from the sale of the Company"s shares in Unity Mining Limited (formerly Bendigo Mining Limited). Investing expenditure during the period was in the following major areas:

Underground mine development and infrastructure at Gwalia $26,506,000;
Exploration capitalised at Gwalia $3,213,000;
Underground mine development and infrastructure at Marvel Loch $11,749,000;
Underground mine development and infrastructure at King of the Hills $7,702,000; and
Purchase of property, plant and equipment at both operations $10,460,000.

Financing activities

Net cash flows from financing activities were negative $2,992,000 (2009: positive $104,579,000), with major movements including:

Payments for the buy-back and redemption of convertible notes during the period of $1,200,000; and
Scheduled repayments of finance leasing and equipment financing facilities amounting to $2,950,000.

Financing cash flows in the prior corresponding period included net proceeds from new shares issued of $119,088,000, offset by payments related to the buy-back of convertible notes of $12,787,000.

Discussion and Analysis of the Balance Sheet

Net Assets and Total Equity

St Barbara"s net assets increased during the period by $55,377,000 to $404,845,000, due mainly to the net profit after tax earned in the period.

The cash balance at 31 December 2010 was $95,995,000 (30 June 2010: $102,157,000).

Property, plant and equipment, mine properties and capitalised exploration had a combined value on the balance sheet at 31 December 2010 of $365,969,000 (30 June 2010: $334,361,000). The increase of $31,608,000 was due mainly to mine development expenditure at Leonora.

Net debt

Net debt, comprising total borrowings less cash on hand, was net cash of $83,519,000 at 31 December 2010 (30 June 2010: net cash of $86,248,000). During the period remaining convertible notes with a value of $1,200,000 were redeemed. As at 31 December 2010 total interest bearing borrowings amounted to $12,476,000 (30 June 2010: $15,909,000), comprising equipment financing facilities.

Auditor Independence

A copy of the auditor"s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 8 and forms part of the directors" report for the half year ended 31 December 2010.

Rounding of Amounts

The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the rounding off of amounts in the directors" report and financial report. Amounts in the directors" report and financial report have been rounded off to the nearest thousand dollars in accordance with that Class Order.

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

Melbourne 24 February 2011

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED INCOME STATEMENT For the half-year ended 31 December 2010

	Half-Year
	Note	31 Dec 2010$'000	31 Dec 2009$'000
Revenue from continuing operations	8	172,950	137,567
Mine operating costs		(101,847)	(90,744)
Gross profit		71,103	46,823

Other revenue	8	5,388	2,188
Other income		4,411	3,067
Exploration expensed		(5,160)	(2,280)
Corporate administration costs		(6,603)	(10,866)
Royalties		(6,613)	(5,349)
Depreciation and amortisation		(26,663)	(26,920)
Other expenditure		(2,026)	(1,252)
Operating profit		33,837	5,411

Finance costs	9	(2,039)	(4,661)
Net realised/unrealised gains on derivatives		9,694	53
Profitbefore income tax		41,492	803

Income tax		-	-
Profitafter income tax		41,492	803

Earnings per share for profitattributableto the ordinaryequity holders of the Company:
Basic earningsper share (cents)*		12.74	0.31
Diluted earningsper share (cents)*		12.65	0.31

* Earnings per share in the comparative period have been restated following the 1 for 6 share consolidation approved by shareholders on 18 November 2010.

The above income statement should be read in conjunction with the accompanying notes.

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the half-year ended 31 December 2010

	Half-Year
	31 Dec 2010$'000	31 Dec 2009$'000
Profitfor the period	41,492	803
Other comprehensive income
Changes in fair value of available for sale financial assets	-	(6,687)
Changes in fair value of cash flow hedges taken to reserves	12,987	-
Other comprehensive income net of tax	54,479	(5,884)
Total comprehensive income attributable to equity holders of thecompany	54,479	(5,884)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half-year ended 31 December 2010

			Attributable to equity holders of the Company
	ContributedEquity	Reserves	RetainedEarnings	Total
	$'000	$'000	$'000	$'000
Balance at 1 July 2010	614,997	(16,677)	(248,852)	349,468
Share-based payments expense	-	699	-	699
Unlisted options expired	-	(80)	-	(80)
Exercise of options	524	(245)	-	279
Comprehensive income for the period	-	12,987	41,492	54,479
Balance at 31 December 2010	615,521	(3,316)	(207,360)	404,845
			Attributable to equity holders of the Company
	Contributed	Reserves	Retained	Total
	Equity$'000	$'000	Earnings$'000	$'000
Balance at 1 July 2009	496,176	8,960	(208,664)	296,472
Equity issues (net of transaction costs)	119,089	-	-	119,089
Share-based payments expense	-	312	-	312
Comprehensive income for the period	-	(6,687)	803	(5,884)
Balance at 31 December 2009

The above statement of changes in equity should be read in conjunction with the accompanying notes.

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED BALANCE SHEET As at 31 December 2010

	Consolidated
		Dec	June
		2010	2010
	Notes	$'000	$'000
Assets
Current assets
Cash and cash equivalents		95,995	102,157
Trade and other receivables		16,230	15,480
Inventories		17,333	18,055
Derivative financial assets	15	1,737	-
Deferred mining costs		11,952	9,114
Total current assets		143,247	144,806
Non-current assets
Property, plant and equipment		113,012	112,096
Deferred mining costs		2,225	-
Mine properties	12	243,585	216,530
Exploration and evaluation	13	9,372	5,735
Total non-current assets		368,194	334,361
Total assets		511,441	479,167

Liabilities
Current liabilities
Trade and other payables		38,280	37,558
Interestbearing borrowings	14	6,722	7,116
Derivative financial liabilities	15	-	338
Provisions		6,489	6,913
Total current liabilities		51,491	51,925
Non-current liabilities
Interest bearing borrowings	14	5,754	8,793
Derivative financial liabilities	15	17,730	38,336
Provisions		31,621	30,645
Total non-current liabilities		55,105	77,774
Total liabilities		106,596	129,699
Net Assets		404,845	349,468
Equity
Contributed equity	16	615,521	614,997
Reserves		(3,316)	(16,677)
Accumulated losses		(207,360)	(248,852)
Total equity		404,845	349,468

The above balance sheet should be read in conjunction with the accompanying notes.

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS For the half-year ended 31 December 2010

			Half-Year
	Note	31 Dec 2010$'000	31 Dec 2009$'000
Cash flows from operating activities
Receipts from customers (inclusive of GST)		175,839	140,820
Payments to suppliers and employees (inclusive of GST)		(115,365)	(110,901)
Payments for exploration and evaluation		(5,160)	(2,280)
Interest received		2,376	1,244
Interest paid		(166)	(3,084)
Finance charges –hire purchase agreements		(522)	(560)
Borrowing costs paid		(51)	(364)
Net cash flow fromoperating activities		56,951	24,875
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		3,001	265
Payments for property, plant and equipment		(10,460)	(5,154)
Proceeds from sale of available for sale financial assets		-	9,976
Payments for development of mine properties		(51,020)	(42,887)
Proceeds from sale of tenement rights		2,000	-
Payments for tenements		-	(95)
Payments for explorationand evaluationcapitalised		(3,712)	(96)
Net cash flow used in investing activities		(60,191)	(37,991)
Cash flows from financing activities
Proceeds from issues of shares		279	123,859
Payments for share issue transaction costs		-	(4,771)
Payments for buy-back of convertible notes		(1,200)	(12,740)
Payments of convertible notes–transaction fees		-	(47)
Proceeds from insurance premium funding/hire purchases		684	559
Movement in restricted cash		265	1,847
Principal repayments -equipment leasing facility		(2,459)	(2,296)
-hire purchase agreements		(491)	(533)
-insurance premium funding		-	(1,299)
Net cash flow from financing activities		(2,922)	104,579
Net (decrease)/increasein cash and cash equivalents		(6,162)	91,463
Cash and cash equivalents at beginning of the period		102,157	53,692
Cash and cash equivalents at end of the period	11	95,995	145,155

The above statement of cash flows should be read in conjunction with the accompanying notes.

Note 1 – Basis of preparation

St Barbara Limited (the "Company") is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ended 31 December 2010 comprises the Company and its subsidiaries (together referred to as the "Group") and the Group"s interest in associates and jointly controlled entities.

This general purpose financial report for the interim reporting period ended 31 December 2010 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This consolidated 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 audited annual report for the year ended 30 June 2010 and any public announcements made by St Barbara Limited during the interim reporting period in accordance with the continuous disclosure obligations of the Australian Securities Exchange listing rules.

This consolidated interim financial report was approved by the Board of Directors on 24 February 2011.

Note 2 – Significant accounting policies

The accounting policies applied in this consolidated interim financial report are the same as those applied by the Group in its most recent annual financial report, except for the application of "Improvements to IFRSs 2009"/AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project. This has resulted in exploration and evaluation cash flows of $5,160,000 for the half year ended 31 December 2010 (31 December 2009: $2,280,000), which were not capitalised, being reclassified from net investing cash flows to net operating cash flows in the Consolidated Statement of Cash Flows.

Note 3 – Critical accounting estimates and judgements

The preparation of the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing this consolidated interim financial report, the significant estimates and judgements made by management in applying the Group"s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the most recent annual financial report.

Note 4 – Segment information

The Group has two reportable segments, Leonora and Southern Cross Operations, which are the Group"s operational business units. The operational business units are managed separately due to their separate geographic regions.

Information regarding the operations of each reportable segment is included below. Performance is measured based on segment profit before income tax, as this is deemed to be the most relevant in assessing performance after taking into account factors such as cost per ounce of production.

	Leonora		Southern Cross		Total
	31 Dec2010$'000	31 Dec2009$'000	31 Dec2010$'000	31 Dec2009$'000	31 Dec2010$'000	31 Dec2009$'000
Revenue	81,198	59,384	91,752	78,183	172,950	137,567
Mine operating costs	(49,365)	(30,603)	(52,482)	(60,141)	(101,847)	(90,744)
Gross profit	31,833	28,781	39,270	18,042	71,103	46,823
RoyaltiesDepreciation andamortisation	(3,102)(15,840)	(2,261)(12,987)	(3,511)(10,539)	(3,088)(11,288)	(6,613)(26,379)	(5,349)(24,275)
Reportable segmentprofit before income tax	12,891	13,533	25,220	3,666	38,111	17,199

		Leonora	Southern Cross			Total
	31 Dec2010$'000	31 Dec2009$'000	31 Dec2010$'000	31 Dec2009$'000	31 Dec2010$'000	31 Dec2009$'000
Other material non-cash items	-	-	-	-	-	-
Capital expenditure	(39,960)	(28,683)	(15,697)	(14,191)	(55,657)	(42,874)
	31 Dec2010$'000	30 Jun2010$'000	31 Dec2010$'000	30 Jun2010$'000	31 Dec2010$'000	30 Jun2010$'000
Reportable segment assets	358,134	326,450	37,329	32,743	395,463	359,193

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities, and other material items:

		Consolidated
	Period Ended	Period Ended
	31 Dec	31 Dec
	2010	2009
	$'000	$'000
Revenues
Total revenue for reportable segments	172,950	137,567
Other revenue	5,388	2,188
Other income	4,411	3,067
Consolidated revenue	182,749	142,822

	Consolidated
	Period Ended	Period Ended
	31 Dec	31 Dec
	2010	2009
	$'000	$'000
Profit or loss
Total profit for reportable segments	38,111	17,199
Other income and revenue	9,799	5,255
Exploration expensed	(5,160)	(2,280)
Unallocated depreciation and amortisation	(284)	(2,645)
Finance costs	(2,039)	(4,661)
Net realised/unrealised gain on derivatives	9,694	53
Other corporate expenses	(8,629)	(12,118)
Consolidated profitbefore income tax	41,492	803

		Consolidated
	31 Dec2010$'000	30 June2010$'000
Assets
Total assets for reportable segments	395,463	359,193
Cash and cash equivalents	95,995	102,157
Trade and other receivables	16,230	15,480
Derivative financial assets	1,737	-
Other assets	2,016	2,337
Consolidated total assets	511,441	479,167

	Half year ended 31 December 2010		Half year ended 31 December 2009
	Reportablesegment	Adjustments	Consolidated	Reportablesegment	Adjustments	Consolidated
Other material items
Depreciation andamortisation	26,379	284	26,663	24,275	2,645	26,920

Note 5 – Events subsequent to balance date

The Directors are not aware of any matter or circumstance that has arisen since the end of the financial reporting date that, in their opinion, has significantly affected, or may significantly affect, in future periods the Group"s operations, the results of those operations or the state of affairs.

Note 6 – Contingent liabilities

The parent entity and Group have a contingent liability at 31 December 2010 in respect of the following legal claim:

Kingstream

In July 2002, Kingstream Steel Limited (now Midwest Corporation Ltd) ("Kingstream") commenced proceedings in the Supreme Court of WA against the Company and its 100% owned subsidiary, Zygot ("Zygot") (together "St Barbara"). The plaintiff was Bryan Kevin Hughes, as trustee for the Kingstream Steel"s Creditors Trust ("Plaintiff").

The Plaintiff"s claim against St Barbara arose from the withdrawal by Zygot of three mining lease applications in September 2001 ("MLAs"). The Plaintiff alleged that the MLAs were subject to an Option Deed dated 26 March 1997 between St Barbara and Kingstream, as amended. The Plaintiff sought damages from St Barbara relying upon causes of action based on rectification, breach of contract, breach of duty of care, estoppel and unilateral mistake. St Barbara defended the action.

On 30 June 2010, the Supreme Court held that the Plaintiff had failed to prove any of the causes of action against St Barbara and dismissed the action. St Barbara has since been paid the sum of $1,500,000 by IMF Australia Limited on behalf of the Plaintiff in satisfaction of any claim St Barbara had for its costs. This amount (net of costs) was recognised in "Other Income" in the current period.

On 21 July 2010, the Plaintiff commenced an appeal against the findings of the Supreme Court, which is being opposed by St Barbara.

Note 7 – Dividends

No dividends were declared or paid during the period.

Note 8 – Revenue

		Consolidated
	Period ended31 Dec 2010$'000	Period ended31 Dec 2009$'000
Sales revenue
-Sale of gold	171,912	136,787
-Sale of silver	1,038	780
	172,950	137,567
Other revenue
-Interest revenue	3,048	1,757
-Discount on Convertible Note buyback	-	260
-Sub-lease rental	154	171
-Third party revenue	2,186	-
	5,388	2,188
	178,338	139,755

	Consolidated
	Period ended31 Dec 2010$'000	Period ended31 Dec 2009$'000
Note 9–Finance costs
Interest paid/payable	166	52
Interest on convertible notes	-	3,033
Borrowing costs	51	410
Finance lease	522	592
Releaseof discount on rehabilitation provision	1,300	574
	2,039	4,661

Note 10 – Significant Items

Significant items are those items where their nature or amount is considered material to the financial report. Such items included within the consolidated results for the period are detailed below.

		Consolidated
	Period ended31 Dec 2010$'000	Period ended31 Dec 2009$'000
Included within Other Income
Profit on sale of Tarmoola processing plant(1)	1,164	-
Proceeds from sale of tenement rights(2)	1,963	-
Gain on sale of investments	-	2,724
	3,127	2,724

Included within net realised/unrealised gains on derivatives
Unrealised gains on gold cash flow hedges(3)	9,641	-
	9,641	-

Included within Other Revenue
Discount on buy-back of convertible notes	-	260
	-	260
Total significant items	12,768	2,984

(1) During September 2010, the Company sold its Tarmoola processing plant, which was on care and maintenance and surplus to the Company"s requirements, for cash proceeds of $3,000,000. The profit recognised is after deducting the book value of assets related to the sale of $1,836,000.

(2) During October 2010, the Company sold tenements acquired for base metals prospectivity in the Leonora region and no longer considered strategic, to Jabiru Metals Limited for cash proceeds of $2,000,000 (less $37,000 for associated legal costs). There were no balances relating to these tenements previously capitalised on the balance sheet. The Company has retained all gold rights associated with these tenements for a minimum of 5 years.

(3) At 31 December 2010, the mark-to-market value of the Company"s gold put and sold call options (collar structure) was negative $16,046,000 (30 June 2010: negative $38,674,000). In accordance with accounting standards, the unrealised gain related to the movement in the time value of the options of $9,641,000 in the period was recognised in the income statement. The unrealised gain related to the intrinsic value of the options of $12,987,000 for the period was recognised in the hedging reserve in equity. The gold put and call options provide price protection over 250,000 ounces of King of the Hills production. Over time, the remaining unrealised negative mark-to-market valuation will reverse either through a change to the mark-to-market value of the options or maturity of the contracts.

	Consolidated
	31 Dec 2010$'000	31Dec2009$'000
Note 11–Cash and cash equivalents
For the purpose of the half-year Statement of Cash Flows, cash and cashequivalents at the 31 Decemberbalance date comprised the following:
Cash at bank and on hand	3,995	53,821
Term deposits(1)	92,000	91,334
	95,995	145,155

(1) Term deposits at 31 December 2010 had an average maturity of 52 days (Dec 2009: 41 days), earning an average interest rate of 5.93% per annum (Dec 2009: 4.71% per annum).

	Consolidated
Note 12–Mine properties	31 Dec 2010$'000	30 June 2010$'000

Mine development
At beginning of period*	216,530	185,341
Direct expenditure	45,957	75,437
Transferred from exploration and evaluation	-	1,454
Mine development written off	-	(5,082)
Adjustment to rehabilitation provision	-	4,381
Amortisation for the year	(18,902)	(45,001)
Closing balance	243,585	216,530

* The 30 June 2010 comparative discloses movements for the year ended 30 June 2010

	Consolidated
	31 Dec 2010$'000	30 June 2010$'000
Note 13–Exploration and evaluation
At beginning of the period*	5,735	8,219
Acquired tenements	-	100
Tenements written off	(75)	(109)
Expenditurecapitalised for the period	3,712	2,761
Capitalised exploration written off	-	(3,782)
Transferred to mine properties	-	(1,454)
Closing balance	9,372	5,735

* The 30 June 2010 comparative discloses movements for the year ended 30 June 2010

	31 Dec 2010$'000	30 June 2010$'000
Note 14–Interest bearing liabilities
Current
Secured
Lease liabilities	1,373	779
Equipment finance facility	5,433	5,197
Transaction costs	(84)	(60)
Unsecured
Convertible notes	-	1,200
	6,722	7,116
Non-Current
Secured
Lease liabilities	802	1,215
Equipment finance facility	5,028	7,724
Transaction costs	(76)	(146)
	5,754	8,793

	31 Dec 2010$'000	30 June 2010$'000
Note 15–Derivative financial assets and liabilties
Current Assets
Fair value of gold option collar	1,684	-
Listed options	53	-
	1,737	-
Current Liabilities
Fair value of gold option collar	-	388
	-	388
Non-Current Liabilities
Fair value of gold option collar	17,730	38,336
	17,730	38,336

Note 16 – Contributed equity

	Parent entity		Parent entity
	31 Dec2010	30 June2010	31 Dec2010	30 June2010
	Shares	Shares	$'000	$'000
Ordinary shares fully paid*	325,615,389	325,444,735	615,521	614,997

* The number of shares in the comparative period has been restated following the 1 for 6 share consolidation approved by shareholders on 18 November 2010.

Date	Details	Number ofshares	Issueprice(cents/share)	$'000
1 July 2010	Opening balance	1,952,668,407		614,997
Plus	Shares issued on exercise of options	1,000,000	28	279
	Transfer of Option Reserve on conversion of options			245
	Shares on issue prior to consolidation	1,953,668,407		-
	Shares on issue following share consolidation(note (a))	325,615,389		-
31 Dec 2010	Closing balance	325,615,389		615,521

(a) Share Consolidation

On 18 November 2010 shareholders approved a share consolidation of six existing shares for one new share of the Company"s issued capital. Share numbers in the comparative period have been restated following the share consolidation undertaken.

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2010

DIRECTORS' DECLARATION

In the Directors" opinion:

(a) the financial statements and notes set out on pages 9 to 21 are in accordance with the Corporations Act 2001, including:
- i) complying with Accounting Standards AASB 134 Interim Financial Reporting and the Corporations Act 2001; and
- ii) giving a true and fair view of the Group's financial position as at 31 December 2010 and of its performance for the six month period ended on that date; and
(b) there are reasonable grounds to believe that the Company 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 the Directors.

Dated at Melbourne this 24th day of February 2011

Independent auditor's review report to the members of St Barbara Limited

Report on the financial report

We have reviewed the accompanying interim financial report of St Barbara Limited, which comprises the consolidated statement of financial position as at 31 December 2010, consolidated income statement and consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the interim ended on that date, notes 1 to 16 comprising a summary of significant accounting policies and other explanatory information and the directors' declaration of the Group comprising the company and the entities it controlled at the half-year's end or from time to time during the interim period.

Directors' responsibility for the interim financial report

The directors of the company are responsible for the preparation of the interim financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the interim financial report that is free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express a conclusion on the interim financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Group's financial position as at 31 December 2010 and its performance for the interim period ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of St Barbara Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of St Barbara Limited is not in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group's financial position as at 31 December 2010 and of its performance for the interim period ended on that date; and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

KPMG

Michael Bray Partner

Melbourne

24 February 2011