ST BARBARA LIMITED — Interim / Quarterly Report 2012

Feb 22, 2012

St Barbara Limited ACN 009 165 066

Level 10, 432 St Kilda Road, Melbourne VIC 3004 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999

www.stbarbara.com.au

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Half Year Financial Report 31 December 2011

Highlights:

Statutory net profit after tax for the six months ended 31 December 2011 rose 12% to a record $46.5 million, underpinned by record gold production of 154,223 ounces and rising gold prices.

• Sales revenue up 44% to $249 million.

• Underlying NPAT up 86% to $53.3 million[[1]] .

• Cash flows from operating activities up 65% to $94 million.

• Earnings per share up 12% to 14.3 cents.

• Cash on hand up 38% to $110 million, total debt down to $3 million.

• Net cash backing per share up 59% to $0.33.

In the December 2011 quarter, the Gwalia mine, at Leonora in WA, delivered record gold production of 46,007 ounces, at a mined grade of 8.1 g/t Au, and in the process demonstrated the long term sustainable production capability of the mine. The King of the Hills mine also lifted production, demonstrating its long term production rate. Southern Cross Operations extended its mine life to at least the December 2012 quarter.

Higher gold grades are forecast for the Gwalia mine for the second half of the fiscal year and are expected to underpin lower cash operating costs, higher margins, increased gold production, as well as sustained profitability and cash flow generation.

The Company continues to hold guidance for FY 12.

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

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Tim Lehany Managing Director and CEO 23 February 2012

1. Non‐IFRS measure, refer attached Financial Report for Half Year ended 31 Dec 2011, p3.

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About St Barbara Limited

St Barbara was established in 1969, and is one of Australia’s most profitable ASX listed gold produces and explorers.

St Barbara has three mines and two processing plants, at Leonora and Southern Cross, in the Eastern Goldfields region of Western Australia, and over 5,000 km[2] of prospective tenements across Australia.

The Gwalia mine at Leonora is the Company’s cornerstone asset. The high grade Gwalia deposit has an expected mine life of at least 10 years, and remains open to the south and at depth.

At June 2011, Company Mineral Resources totalled 46.9 Mt @ 5.1 g/t Au for 7.6 million ounces of contained gold, including Company Ore Reserves of 14.7 Mt @ 5.8 g/t Au for 2.8 million ounces of contained gold (for full details refer to the Ore Reserves and Mineral Resources Statements contained in the 2011 Annual Report, available at www.stbarbara.com.au). Ten priority exploration targets are planned to be drilled in FY12.

Gold production is expected to grow by 30% in FY12 to between 320,000 and 350,000 ounces (for full details refer to the June 2011 Quarterly Report available at www.stbarbara.com.au).

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Appendix 4D

Half Year Report

Name of entity

ST BARBARA LIMITED

ABN or equivalent company reference Half yearly (tick) Preliminary final_(tick)_ 36 009 165 066  Results for announcement to the market	Half year/financial year ended (‘current period’)
	31 December 2011
	% A$’000 up 38% to 252,724 up 12% to 46,518 up 12% to 46,518 31 Dec 11 $ 30 Jun 11 $ 1.47 1.34 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Revenues and other income Profit from ordinary activities after tax attributable to members Prior period profit: $41,492,000 Profit attributable to members Prior period profit: $41,492,000 Dividends No dividend has been declared	up 38% to 252,724 up 12% to 46,518 up 12% to 46,518
Net Tangible Assets per security Entities over which control has been gained or lost over the period. Details of dividend distribution Details of reinvestment plans Details of joint venture entities and associates Foreign entity accounting standards Audit dispute or qualification	1.47 1.34 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Dated: 23 February 2012

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Timothy J Lehany

Managing Director and Chief Executive Officer

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ST BARBARA LIMITED

ABN 36 009 165 066

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

ST BARBARA LIMITED HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2011

Table of Contents

DIRECTORS’ REPORT .................................................................................................................................................. 3 AUDITOR’S INDEPENDENCE DECLARATION ...................................................................................................... 8 CONSOLIDATED INCOME STATEMENT ................................................................................................................ 9 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ................................................................... 10 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................... 11 CONSOLIDATED BALANCE SHEET ....................................................................................................................... 12 CONSOLIDATED STATEMENT OF CASH FLOWS .............................................................................................. 13 Note 1 – Basis of preparation ..................................................................................................................................... 14 Note 2 – Significant accounting policies .................................................................................................................... 14 Note 3 – Critical accounting estimates and judgements .......................................................................................... 14 Note 4 – Segment information ................................................................................................................................... 14 Note 5 – Events subsequent to balance date ............................................................................................................. 16 Note 6 – Contingent liabilities .................................................................................................................................... 17 Note 7 – Dividends ...................................................................................................................................................... 17 Note 8 – Revenue ......................................................................................................................................................... 17 Note 9 – Finance costs ................................................................................................................................................. 17 Note 10 – Significant Items ........................................................................................................................................ 18 Note 11 – Income Tax Expense ................................................................................................................................... 19 Note 12 – Cash and cash equivalents......................................................................................................................... 19 Note 13 – Interest bearing liabilities .......................................................................................................................... 20 Note 14 – Derivative financial assets and liabilities ................................................................................................. 20 Note 15 – Contributed equity ..................................................................................................................................... 21 Note 16 – Accumulated losses .................................................................................................................................... 21 DIRECTORS' DECLARATION ................................................................................................................................... 22

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ST BARBARA LTD ................... 23

Page 2 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

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 2011.

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  E A Donaghey Non-executive director  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 (“Statutory Profit”) of $46,518,000 (2010: $41,492,000) for the six months ended 31 December 2011. The Statutory Profit for the period included significant items totaling a net loss of $6,829,000 (2010: gain of $12,768,000). Underlying net profit after tax for the period, after excluding significant items, was $53,347,000 (2009: $28,724,000), which was 86% higher than the prior corresponding period. The consolidated revenues and results for the period are summarized as follows:

	Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $’000
Sales revenue EBITDA3(including significant items) EBIT2(including significant items) Statutory Profit1 for the half year Total significant items (after tax) EBITDA3– excluding significant items EBIT2– excluding significant items Underlying net profit after tax4 for the half year	249,315 172,950
	88,937 67,146 45,764 40,483 46,518 41,492
	(6,829) 12,768 95,766 54,378 52,593 27,715 53,347 28,724

1 Statutory Profit is net profit after tax attributable to owners of the parent.

2 EBIT is earnings before interest revenue, finance costs and income tax expense.

3 EBITDA is EBIT before depreciation and amortisation.

4 Underlying net profit after income tax is net profit after income tax (“Statutory Profit”) less significant items as described in Note 10 to the financial report.

5 EBIT, EBITDA and underlying net profit after tax are non-IFRS financial information, which have not been subject to review or audit by the Group’s external auditors. These measures are presented to enable understanding of the underlying performance of the Group.

The significant items in the six month period ended 31 December 2011 comprised an unrealised loss on gold put and call options of $7,464,000, representing the negative mark-to-market movement in the time value of the gold options during the period, and a realised gain of $635,000 representing the unwinding of previously recognised mark-to-market losses for gold options that were exercised or expired during the period. Over time, unrealised losses on gold options recognised in the income statement will reverse either through a change in the mark-to-market value of the options or maturity of the contracts.

Page 3 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

Significant items included in the Statutory Profit for the period are as follows:

Unrealised (loss)/gain on derivatives(1) Realised gain on derivatives(1) Profit on sale of Tarmoola processing plant Proceeds from sale of tenement rights Total significant items	Consolidated Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $’000 (7,464) 9,641 635 - 1,164 - 1,963
	(6,829) 12,768

(1) At 31 December 2011 the mark-to-market value of the Company’s gold put and call options (collar structure) was negative $20,314,000 (June 2011: negative $8,101,000). The put and call options at 31 December 2011 represent price protection for 205,000 ounces of King of the Hills production, and 68,000 ounces for Southern Cross production (June 2011: King of the Hills: 238,000 ounces; Southern Cross: nil ounces). In accordance with accounting standards the net unrealised loss, representing the movement in the time value of the collar structure during the period, amounting to $7,464,000 was recognised in the income statement (2010: gain of $9,641,000). The net realised gain of $635,000 represents the unwinding of the unrealised mark-to-market loss previously recognised for options that were exercised or expired during the period. The unrealised loss related to the movement in the intrinsic value of the collar structure in the period of $5,385,000 (2010: gain of $12,987,000) was recognised in the gold cash flow hedge reserve in equity. Over time, the remaining unrealised negative mark-tomarket valuation at 31 December 2011 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 Statutory Profit of $46,518,000 for the period (2010: $41,492,000). Underlying profit for the period was $53,347,000 (2010: $28,724,000), with the significant improvement compared with the prior corresponding period the result of higher gold production and stronger gold price.

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

Total sales revenue of $249,315,000 (2010: $172,950,000) was generated from gold sales of 154,385 ounces (2010: 125,451 ounces) in the period at an average achieved gold price of A$1,606 per ounce (2010: A$1,370 per ounce). Total production for the period was 154,223 ounces, with Leonora operations contributing 109,763 ounces (2010: 58,510 ounces) and Southern Cross operations 44,460 ounces (2010: 65,651 ounces).

Page 4 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

A summary of production performance for the period ended 31 December 2011 is provided in the table below.

Details of 2011 Production Performance

	Southern Cross	Southern Cross	Gwalia	Gwalia	King of the Hills	King of the Hills
	6 months 31 Dec 11	6 months 31 Dec 10	6 months 31 Dec 11	6 months 31 Dec 10	6 months 31 Dec 11	6 months 31 Dec 10
Underground Ore Mined t	415,442	545,928	354,702	339,033	184,873 4.0 187,720 4.1 94 23,450 801 1,099	- - - - - - - -
Grade g/t	2.9	3.6	7.8	5.4
Ore Milled (including stockpiles) t	813,636	562,989	366,648	363,940
Grade g/t	1.9	3.9	7.6	5.2
Recovery %	89	93	97	96
Gold Production oz	44,460	65,651	86,313	58,510
Cash Cost A$/oz	1,205	820	697	832
Total Cost A$/oz	1,505	979	945	1,088

Gwalia

Gold production from the Gwalia underground mine in the period was 86,313 ounces (2010: 58,510 ounces), which was a significant increase on the prior corresponding period. The higher production was as a result of the Gwalia mine moving towards achieving its long term sustainable production rate in the period, and an increase in the average grade of ore mined. The increase in the average grade was attributable to production during the period being sourced from the higher grade South West Branch. The Leonora processing plant continued to perform well during the period and achieved average recoveries of 97%. The increase in average recoveries reflected an increase in the proportion of gold reporting to the gravity circuit following the installation of a second Knelson concentrator in August 2011. Gwalia unit cash costs for the period were $697 per ounce (2010: $832 per ounce), reflecting the benefit of higher production. Total cash operating costs at Gwalia of $60,125,000 were higher compared with the prior corresponding period (2010: $48,672,000), due mainly to increased mining activity and higher production.

King of the Hills

After commencing production in April 2011, the King of the Hills underground mine reached its annualised production range during the December 2011 quarter. For the period, the mine produced 184,873 tonnes at 4.0 grams per tonne for 23,996 contained ounces. During the period 187,720 tonnes of King of the Hills ore was processed through the Gwalia processing plant producing 23,450 ounces. The King of the Hills unit cash costs for the period were $801 per ounce, which was in line with expectations. Total cash operating costs at King of the Hills were $18,773,000 (2010: $nil).

Southern Cross

Southern Cross operations generated positive cash flows as the Marvel Loch mine approaches the end of its mine life. For the six month period ended 31 December 2011, Southern Cross operations generated positive net cash flows of $6,001,000. The Marvel Loch underground mine produced 44,460 ounces (2010: 65,651 ounces) in the period. The lower production compared with the prior corresponding period was due to lower tonnes mined from Marvel Loch at a lower grade. To offset the lower production from Marvel Loch underground the operations processed existing low grade stockpiles from satellite mine sites, which reduced the overall milled grade to 1.9 grams per tonne for the period (2010: 3.9 grams per tonne). During the period, 392,424 tonnes of low grade stockpile ore at an average grade of 0.9 grams per tonne was processed. The Southern Cross Operations unit cash costs for the period were $1,205 per ounce (2010: $820 per ounce), reflecting the impact of the lower production and lower grade of the low grade stockpiles processed. At Southern Cross operations total cash operating costs were $53,571,000 (2010: $53,852,000). While cash operating costs were consistent with the prior corresponding period, the lower Marvel Loch grades and milling of low grade stockpiles resulted in the higher unit cash costs.

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ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

Corporate and Discovery & Growth

Exploration and evaluation expenditure in the period amounted to $8,574,000 (2010: $8,872,000), of which $6,855,000 (2010: $5,160,000) was expensed in the income statement. Capitalised exploration in the period was in relation to the drilling program at Gwalia.

Corporate administration costs for the period of $6,814,000 (2010: $6,293,000) comprised mainly expenses relating to the corporate office and compliance costs.

Royalty expenses for the period were $10,334,000 (2010: $6,613,000), reflecting the impact of higher gold sales revenue from increased production and a higher average 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 $67 per ounce.

Other revenue of $2,800,000 (2010: $5,388,000) comprised mainly interest earned during the period of $2,612,000 (2010: $3,048,000). The prior corresponding period included third party toll treatment revenue.

Other income was $609,000 for the period (2010: $4,411,000). Other income in the prior corresponding period represented mainly the sale of the Tarmoola plant; the sale of excess tenements in the Leonora region; and the recovery of legal costs in relation to the Kingstream litigation.

Depreciation and amortisation of fixed assets and capitalised mine development amounted to $43,173,000 (2010: $26,663,000) for the period. Depreciation and amortisation attributable to Gwalia was $22,201,000 (2010: $15,840,000), King of the Hills was $7,067,000 (2010: nil), and Southern Cross was $13,393,000 (2010: $10,539,000), with the balance associated with corporate and exploration activities. The higher depreciation and amortisation charge in the period at Gwalia was attributable to the higher production compared with the prior corresponding period. At Southern Cross the higher depreciation and amortisation charge reflected the increase in mine development amortisation as the mine nears the end of its life.

Net finance costs decreased in the period to $1,858,000 (2010: $2,039,000) due to the repayment of the GE Facility during the six months ended 31 December 2011.

A net realised/unrealised loss of $6,829,000 (2010: gain of $9,694,000) 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 2011. 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 as at 31 December 2011 provides price protection for 205,000 ounces of King of the Hills production to June 2015 and 68,000 ounces of Southern Cross production to August 2012.

Discussion and Analysis of the Cash Flow Statement

Operating activities

Cash flow from operating activities for the period was $93,777,000 (2010: $56,951,000), 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 $152,116,000 (2010: $115,365,000), due mainly to the increase in ore tonnes mined at both Gwalia and King of the Hills. Payments for exploration expensed in the period amounted to $6,855,000 (2010: $5,160,000), with the higher amount expensed attributable to a lower level of capitalised expenditure compared with the prior corresponding period. Interest received of $2,614,000 (2010: $2,376,000) 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 $206,000 (2010: $166,000).

Investing activities

Net cash flows used in investing activities amounted to $53,893,000 (2010: $60,191,000) for the period. Lower expenditure in the period was attributable to the reduction in development at Gwalia and Southern Cross. Exploration and evaluation expenditure capitalised of $1,719,000 (2010: $3,712,000) largely represented drilling to extend resources at the Gwalia mine. Investing expenditure during the period was in the following major areas:

• Underground mine development and infrastructure at Gwalia - $23,687,000 (2010: $26,506,000);

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ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

• Exploration capitalised at Gwalia - $1,436,000 (2010: $3,213,000);

• Underground mine development and infrastructure at Marvel Loch - $8,560,000 (2010: $11,749,000);

• Underground mine development and infrastructure at King of the Hills - $14,094,000 (2010: $7,702,000); and

• Purchase of property, plant and equipment at both operations - $5,614,000 (2010: $10,460,000).

Financing activities

Net cash flows used in financing activities was $9,463,000 (2010: $2,992,000), with major movements including:

• Repayment of the GE financing facility of $7,860,000; and

• Scheduled repayments of finance leasing and insurance premium funding facilities amounting to $1,603,000.

Discussion and Analysis of the Balance Sheet

Net Assets and Total Equity

St Barbara’s net assets increased during the period by $41,779,000 to $478,126,000, due mainly to the Statutory Profit earned in the period.

The cash balance at 31 December 2011 was $109,906,000 (30 June 2011: $79,485,000).

Property, plant and equipment, mine properties and capitalised exploration had a combined value on the balance sheet at 31 December 2011 of $411,978,000 (30 June 2011: $401,370,000). The increase of $10,608,000 was due mainly to mine development expenditure at King of the Hills.

Net debt

Net debt, comprising total borrowings less cash on hand, was net cash of $106,904,000 at 31 December 2011 (30 June 2011: net cash of $67,413,000). As at 31 December 2011 total interest bearing borrowings amounted to $3,002,000 (30 June 2011: $12,072,000), comprising an insurance premium funding facility and a hire purchase facility. The decrease in interest bearing borrowings as compared to 30 June 2011 represents the repayment of the GE asset financing facility.

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 2011.

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.

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Timothy J Lehany Managing Director & Chief Executive Officer

Melbourne 23 February 2012

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ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

To: the directors of St Barbara Limited

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2011 there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

(ii) no contraventions of any applicable code of professional conduct in relation to the review.

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KPMG

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Tony Romeo Partner

Melbourne 23 February 2012

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ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED INCOME STATEMENT For the half-year ended 31 December 2011

`

Note Revenue from continuing operations 8 Mine operating costs Gross profit Other revenue 8 Other income Exploration expensed Corporate administration costs Royalties Depreciation and amortisation Other expenditure Operating profit Finance costs 9 Net realised/unrealised (losses)/gains on derivatives 10 Profit before income tax Income tax 11 Profit after income tax Earnings per share for profit attributable to the ordinary equity holders of the Company: Basic earnings per share (cents) Diluted earnings per share (cents)	Half-Year 31 Dec 2011 $’000 31 Dec 2010 $’000 249,315 172,950 (127,230) (101,847) 122,085 71,103 2,800 5,388 609 4,411 (6,855) (5,160) (6,814) (6,293) (10,334) (6,613) (43,173) (26,663) (3,113) (2,336) 55,205 33,837 (1,858) (2,039) (6,829) 9,694 46,518 41,492 - - 46,518 41,492 14.29 12.74 14.16 12.65	Half-Year 31 Dec 2011 $’000 31 Dec 2010 $’000 249,315 172,950 (127,230) (101,847) 122,085 71,103 2,800 5,388 609 4,411 (6,855) (5,160) (6,814) (6,293) (10,334) (6,613) (43,173) (26,663) (3,113) (2,336) 55,205 33,837 (1,858) (2,039) (6,829) 9,694 46,518 41,492 - - 46,518 41,492 14.29 12.74 14.16 12.65
		31 Dec 2010 $’000
		172,950
		(101,847)
		71,103
		5,388
		4,411
		(5,160)
		(6,293)
		(6,613)
		(26,663)
		(2,336)
		33,837
		(2,039)
		9,694
		41,492
		-
		41,492
		12.74
		12.65

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

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ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the half-year ended 31 December 2011

Profit for the period Other comprehensive income Changes in fair value of available for sale financial assets Changes in fair value of cash flow hedges taken to reserves Other comprehensive income net of tax(1) Total comprehensive income attributable to equity holders of the company	Half-Year 31 Dec 2011 $’000 31 Dec 2010 $'000 46,518 41,492 19 - (5,385) 12,987 (5,366) 12,987 41,152 54,479	Half-Year 31 Dec 2011 $’000 31 Dec 2010 $'000 46,518 41,492 19 - (5,385) 12,987 (5,366) 12,987 41,152 54,479
		31 Dec 2010 $'000
		41,492
		-
		12,987
		12,987
		54,479

(1) Other comprehensive income comprises items of income and expense that are recognised directly in reserves or equity. These items are not recognised in the Income Statement as required by accounting standards. Total comprehensive profit comprises the result for the year adjusted for the other comprehensive income.

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

Page 10 of 24

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half-year ended 31 December 2011

Balance at 1 July 2011 Share-based payments expense Unlisted options expired Comprehensive income for the year Balance at 31 December 2011	Contributed Equity $’000 Share Based Payments Reserve $’000 Gold Cash Flow Hedge Reserve $’000 Investment Fair Value Reserve $’000 Retained Earnings $’000 Total $’000 615,521 3,108 (2,059) - (180,223) 436,347 - 627 - - - 627 - (1,016) - - 1,016 - - - (5,385) 19 46,518 41,152
	615,521 2,719 (7,444) 19 (132,689) 478,126
	Contributed Equity $’000 Share Based Payments Reserve $’000 Gold Cash Flow Hedge Reserve $’000 Investment Fair Value Reserve $’000 Retained Earnings $’000 Total $’000
Balance at 1 July 2010	614,997 2,484 (19,161) - (248,852) 349,468
Share-based payments expense	- 699 - - - 699
Unlisted options expired	- (80) - - - (80)
Unlisted options exercised	524 (245) - - - 279
Comprehensive income for the year	- - 12,987 - 41,492 54,479
Balance at 30 December 2010	615,521 2,858 (6,174) - (207,360) 404,845

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

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ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED BALANCE SHEET As at 31 December 2011

Notes Assets Current assets Cash and cash equivalents 12 Trade and other receivables Inventories Derivative financial assets 14 Deferred mining costs Total current assets Non-current assets Property, plant and equipment Deferred mining costs Mine properties Exploration and evaluation Derivative financial assets 14 Available for sale financial assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Interest bearing borrowings 13 Derivative financial liabilities 14 Provisions Total current liabilities Non-current liabilities Interest bearing borrowings 13 Derivative financial liabilities 14 Provisions Total non-current liabilities Total liabilities Net Assets Equity Contributed equity 15 Reserves Accumulated losses 16 Total equity	Consolidated Dec 2011 June 2011 $'000 $'000 109,906 79,485 22,913 24,140 18,155 17,858 837 2,085 27,506 12,934
	179,317 136,502
	106,975 105,750 2,324 10,230 291,655 283,991 13,348 11,629 - 282 269 -
	414,571 411,882
	593,888 548,384
	49,648 49,366 1,605 10,491 2,188 - 9,358 7,982
	62,799 67,839
	1,397 1,581 18,963 10,468 32,603 32,149
	52,963 44,198
	115,762 112,037
	478,126 436,347
	615,521 615,521 (4,706) 1,049 (132,689) (180,223)
	478,126 436,347

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

Page 12 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS For the half-year ended 31 December 2011

Note Cash flows from operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Payments for exploration and evaluation Interest received Interest paid Finance charges – hire purchase agreements Borrowing costs paid Net cash flow from operating activities Cash flows from investing activities Proceeds from sale of property, plant and equipment Payments for property, plant and equipment Payments for available for sale financial assets Payments for development of mine properties Proceeds from sale of tenement rights Payments for exploration and evaluation capitalised Net cash flow used in investing activities Cash flows from financing activities Proceeds from issues of shares Payments for buy-back of convertible notes Proceeds from insurance premium funding/hire purchases Movement in restricted cash Principal repayments - equipment leasing facility - hire purchase agreements - insurance premium funding Net cash flow used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 12	Half-Year 31 Dec 2011 $’000 31 Dec 2010 $'000 250,595 175,839 (152,116) (115,365) (6,855) (5,160) 2,614 2,376 (206) (166) (191) (522) (64) (51) 93,777 56,951 31 3,001 (5,614) (10,460) (250) - (46,341) (51,020) - 2,000 (1,719) (3,712) (53,893) (60,191) - 279 - (1,200) - 684 - 265 (7,860) (2,459) (423) (491) (1,180) - (9,463) (2,922) 30,421 (6,162) 79,485 102,157 109,906 95,995	Half-Year 31 Dec 2011 $’000 31 Dec 2010 $'000 250,595 175,839 (152,116) (115,365) (6,855) (5,160) 2,614 2,376 (206) (166) (191) (522) (64) (51) 93,777 56,951 31 3,001 (5,614) (10,460) (250) - (46,341) (51,020) - 2,000 (1,719) (3,712) (53,893) (60,191) - 279 - (1,200) - 684 - 265 (7,860) (2,459) (423) (491) (1,180) - (9,463) (2,922) 30,421 (6,162) 79,485 102,157 109,906 95,995
		31 Dec 2010 $'000
		175,839
		(115,365)
		(5,160)
		2,376
		(166)
		(522)
		(51)
		56,951
		3,001
		(10,460)
		-
		(51,020)
		2,000
		(3,712)
		(60,191)
		279
		(1,200)
		684
		265
		(2,459)
		(491)
		-
		(2,922)
		(6,162)
		102,157
		95,995

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

Page 13 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

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 2011 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 2011 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 2011.

This consolidated interim financial report was approved by the Board of Directors on 23 February 2012.

Note 2 – Significant accounting policies

The accounting policies applied by the Group in this consolidated interim financial report are the same as those applied by the Group in its consolidated financial report as at and for the year ended 30 June 2011.

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 operational business units: Leonora Operations and Southern Cross Operations. The operational business units are managed separately due to their separate geographic regions.

The Leonora Operations comprise two reportable segments: the Gwalia and King of the Hills underground mines. The results of both mines are reviewed regularly by the Group’s Executive Leadership Team, in particular production, cost per ounce and capital expenditures. Additionally, the revenue earned by each reportable segment exceeds 10 per cent of the Group’s consolidated revenue. The ore mined at the King of the Hills underground mine is processed through the Gwalia processing plant. The mine operating costs reported for King of the Hills includes an allocation of processing costs based on the tonnes of ore processed.

The King of the Hills mine was added as a reportable segment in the half year to 31 December 2011 as the Executive Leadership Team commenced reviewing this segment regularly from 1 July 2011 following commencement of production at King of the Hills.

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.

Page 14 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

Revenue Mine operating costs Gross profit Royalties Depreciation and amortisation Reportable segment profit before income tax Other material non-cash items Capital expenditure Reportable segment assets	Gwalia King of the Hills Southern Cross Total 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 137,959 81,198 38,761 - 72,595 91,752 249,315 172,950 (56,837) (49,365) (18,204) - (52,189) (52,482) (127,230) (101,847)	Gwalia King of the Hills Southern Cross Total 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 137,959 81,198 38,761 - 72,595 91,752 249,315 172,950 (56,837) (49,365) (18,204) - (52,189) (52,482) (127,230) (101,847)
	81,122	31,833 20,557 - 20,406 39,270 122,085 71,103
	(5,691) (22,201)	(3,102) (1,545) - (3,098) (3,511) (10,334) (6,613) (15,840) (7,067) - (13,393) (10,539) (42,661) (26,379)
	53,230	12,891 11,945 - 3,915 25,220 69,090 38,111
	Gwalia King of the Hills Southern Cross Total 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 31 Dec 2011 $’000 31 Dec 2010 $’000 - - - - - - - - (26,418) (39,960) (14,201) - (9,979) (15,697) (50,598) (55,657)
	31 Dec 2011 $’000 30 Jun 2011 $’000 31 Dec 2011 $’000 30 Jun 2011 $’000 31 Dec 2011 $’000 30 Jun 2011 $’000 31 Dec 2011 $’000 30 Jun 2011 $’000 360,810 343,578 46,297 44,724 41,986 43,664 449,093 431,966

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

Revenues Total revenue for reportable segments Other revenue Consolidated revenue	Consolidated Period Ended 31 Dec 2011 $’000 Period Ended 31 Dec 2010 $'000 249,315 172,950 2,800 5,388
	252,115 178,338

Page 15 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

Profit or loss Total profit for reportable segments Other income and revenue Exploration expensed Unallocated depreciation and amortisation Finance costs Net fair value movements on gold options Corporate and support costs Other corporate expenses Consolidated profit before income tax	Consolidated Period Ended 31 Dec 2011 $’000 Period Ended 31 Dec 2010 $'000 69,090 38,111 3,409 9,799 (6,855) (5,160) (512) (284) (1,858) (2,039) (6,829) 9,694 (6,814) (6,603) (3,113) (2,026)
	46,518 41,492

Assets Total assets for reportable segments Cash and cash equivalents Trade and other receivables Capitalised borrowing costs Derivative financial assets Other assets Consolidated total assets	Consolidated 31 Dec 2011 $’000 30 June 2011 $'000 449,093 431,966 109,906 79,485 23,182 24,140 7,540 7,912 837 2,367 3,330 2,514
	593,888 548,384

Other material items Depreciation and amortisation	Half year ended 31 December 2011 Half year ended 31 December 2010 Reportable segment Adjustments Consolidated Reportable segment Adjustments Consolidated 42,661 512 43,173 26,379 284 26,663

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.

Page 16 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

Note 6 – Contingent liabilities

The parent entity and Group had no contingent liabilities at 31 December 2011.

Kingstream

On 1 November 2011, this matter was resolved in the Court of Appeal of the Supreme Court of Western Australia with no material impact on the Company.

Note 7 – Dividends

No dividends were declared or paid during the period.

Note 8 – Revenue

Sales revenue - Sale of gold - Sale of silver Other revenue - Interest revenue - Sub-lease rental - Third party revenue	Consolidated Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $'000 248,014 171,912 1,301 1,038
	249,315 172,950
	2,612 3,048 188 154 - 2,186
	2,800 5,388
	252,115 178,338

Note 9 – Finance costs Interest paid/payable Borrowing costs Finance lease Provisions: unwinding of discount	Consolidated Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $'000 206 166 64 51 191 522 1,397 1,300
	1,858 2,039

Page 17 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

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.

Included within net realised/unrealised gains on derivatives Unrealised (loss)/gain on gold cash flow hedges(1) Realised gain on gold cash flow hedge(1) Included within Other Income Profit on sale of Tarmoola processing plant Proceeds from sale of tenement rights Total significant items	Consolidated Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $’000 (7,464) 9,641 635 -
	(6,829) 9,641
	- 1,164 - 1,963
	- 3,127
	(6,829) 12,768

(1) At 31 December 2011 the mark-to-market value of the Company’s gold put and call options (collar structure) was negative $20,314,000 (June 2011: negative $8,101,000). The put and call options at 31 December 2011 represent price protection for 205,000 ounces of King of the Hills production, and 68,000 ounces for Southern Cross production (June 2011: King of the Hills: 238,000 ounces; Southern Cross: nil ounces). In accordance with accounting standards the net unrealised loss, representing the movement in the time value of the collar structure during the period, amounting to $7,464,000 was recognised in the income statement (2010: gain of $9,641,000). The net realised gain of $635,000 represents the unwinding of the unrealised mark-to-market loss previously recognised for options that were exercised or expired during the period. The unrealised loss related to the movement in the intrinsic value of the collar structure in the period of $5,385,000 (2010: gain of $12,987,000) was recognised in the gold cash flow hedge reserve in equity. Over time, the remaining unrealised negative mark-to-market valuation at 31 December 2011 will reverse either through a change to the mark-to-market value of the collar structure or maturity of the contracts.

Page 18 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

Note 11 – Income Tax Expense

(a) Income tax expense Income tax (benefit)/expense	Consolidated Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $’000 - -	Consolidated Period ended 31 Dec 2011 $’000 Period ended 31 Dec 2010 $’000 - -
		Period ended 31 Dec 2010 $’000
		-

(b) Tax losses

In the period, the Group did not report an income tax expense due to the utilisation of previously unrecognised tax losses.

The treatment of tax losses at 31 December 2011 was consistent with 30 June 2011, whereby not all tax losses have been recognised as a deferred tax asset, as it is not probable that the Group will be able to utilise these tax losses as at the reporting date. In determining whether to recognise tax losses, the directors consider the probability as to whether the Group will have future taxable profits available to utilise carry forward tax losses. The probability of future taxable profits is based on the low case scenario in the Group’s most recent three year business plan, and takes into account sensitivities to changes in forecast gold prices, cost inflation and operational performance. Utilisation of carry forward tax losses is also subject to tax legislation not changing in a manner that would adversely affect the Group’s ability to recoup its tax losses.

Note 12 – Cash and cash equivalents For the purpose of the half-year Statement of Cash Flows, cash and cash equivalents at the 31 December balance date comprised the following: Cash at bank and on hand Term deposits(1)	Consolidated 31 Dec 2011 $’000 31 Dec 2010 $'000 15,906 3,995 94,000 92,000
	109,906 95,995

(1) Term deposits at 31 December 2011 had an average maturity of 63 days (Dec 2010: 52 days), earning an average interest rate of 5.98% per annum (Dec 2010: 5.93% per annum).

Page 19 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

Note 13 – Interest bearing liabilities Current Secured Lease liabilities Equipment finance facility Transaction costs Unsecured Insurance premium funding Non-Current Secured Lease liabilities Note 14 – Derivative financial assets and liabilities Current assets Fair value of gold option collar Non-current assets Fair value of gold option collar Current liabilities Fair value of gold option collar Non-current liabilities Fair value of gold option collar	31 Dec 2011 $’000 30 June 2011 $'000 1,000 960 - 7,860 - (114) 605 1,785
	1,605 10,491
	1,397 1,581
	1,397 1,581
	31 Dec 2011 $’000 30 June 2011 $'000 837 2,085
	837 2,085
	- 282
	- 282
	2,188 -
	2,188 -
	18,963 10,468
	18,963 10,468

Page 20 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

Note 15 – Contributed equity

		Parent entity	Parent entity		Parent entity	Parent entity
		31 Dec	30 June		31 Dec	30 June
		2011	2011		2011	2011
		Shares	Shares		$’000	$’000
Ordinary	shares fully paid	325,615,389	325,615,389		615,521	615,521
			Number of
Date	Details		shares			$’000
1 July 2011 Opening balance			325,615,389			615,521
	Nil movement for the period			-		-
31 Dec 2011 Closing balance			325,615,389			615,521

Note 16 – Accumulated losses

Movements in accumulated losses were as follows:

Balance at start of year Transferred from share based payment reserve (note 16(a)) Profit attributable to members of the Company Balance at end of year*	Consolidated 31 Dec 2011 $’000 30 June 2011 $'000 (180,223) (248,852) 1,016 - 46,518 68,629
	(132,689) (180,223)

• The 30 June 2011 comparative discloses movements for the year ended 30 June 2011

(a) Share based payment reserve transfers to accumulated losses

During the period ended 31 December 2011, $1,016,000 previously recognised in the share based payment reserve for 416,668 options which expired during the period was transferred to accumulated losses. Accounting standards preclude the reversal through the Income Statement for amounts which have been booked in the share based payments reserve for options which have previously vested but subsequently expire.

Page 21 of 24

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED FINANCIAL STATEMENTS For the half-year ended 31 December 2011

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 2011 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.

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Timothy J Lehany Managing Director & Chief Executive Officer

Dated at Melbourne this 23[rd] day of February 2012

Page 22 of 24

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ST BARBARA LTD

Report on the financial report

We have reviewed the accompanying half-year financial report of St Barbara Limited, which comprises the consolidated balance sheet as at 31 December 2011, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year period 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 half-year period.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year 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 half-year 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 half-year 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 half-year 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 2011 and its performance for the half-year 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 a half-year 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.

Page 23 of 24

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year 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 2011 and of its performance for the half-year period ended on that date; and

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

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KPMG

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Tony Romeo Partner

Melbourne 23 February 2012

Page 24 of 24