ST BARBARA LIMITED - Interim / Quarterly Report 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

December 2011 Quarterly Report

Gold production up 18% to a record 83,615 ounces

Overview

Key Results for the December Quarter

Gold production up 18% to a quarterly record 83,615 ounces, at consolidated group cash operating costs of $844 per ounce (Sep 11 qtr: 70,608 oz; $876/oz)
Gwalia cash operating cost $683 per ounce (Sep 11 qtr: $712/oz)
Cash up 47% to $110 million.

Discovery and Growth

Initial results from deep drilling at Gwalia, Leonora, WA, indicate the potential extension of high grade resources further south than existing resources. Intersections include (all intercepts down‐hole, details in Table 1):
13.2m @ 9.8 g/t Au from 1,647m;
6.8m @ 11.2 g/t Au from 1,670m.
Drilling results from Frasers, Southern Cross, WA, during the quarter include: o 4.8m @ 5.6 g/t Au from 278m;
4.9m @ 4.5 g/t Au from 269m.

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Gold Production ‐ Consolidated
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83.6
72.9 70.6
60.7 61.5
FY 11 FY 11 FY 11 FY 12 FY 12
Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec
koz
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Health & Safety

The Total Recordable Injury Frequency Rate, calculated as a rolling 12 month average, improved from 12.6 to 11.9 at the end of the December quarter.

Financial

Average realised gold price A$1,638 per ounce for the quarter (Sep 11 qtr: A$1,571/oz).

Outlook

FY12 production and cost guidance is maintained.

Operations

Gwalia mine achieved both record production for the quarter, and the long‐term forecast sustainable production rate:
Gold production up 14% to 46,007 ounces and mined grade up 8% to 8.1 g/t Au
- (Sep 11 qtr: 40,306 oz; 7.5 g/t Au)
King of the Hills mine reached its annualised production range during the quarter:
Gold production up 51% to 14,107 ounces
- (Sep 11 qtr: 9,343 oz)
Southern Cross Operations improved quarterly result:
Gold production up 12% to 23,501 ounces
- (Sep 11 qtr: 20,959 oz)
Gold production from the Gwalia and King of the Hills mines is expected to increase in the second half of FY12.
Exploration drilling will increase in the second half of FY12.

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Tim Lehany Managing Director and CEO 23 January 2012

now anticipated to continue gold production beyond August 2012 and into the December 2012 quarter

Note: All financial figures are in Australian dollars.

December 2011 Quarterly Report

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Increasing Gold Production

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Production Summary Jun Qtr Sep Qtr Dec Qtr
Consolidated Gold Production 84 Gwalia FY11 FY12 FY12
73 Underground ore mined t 176,214 173,498 181,204
71
24 Grade g/t 6.9 7.5 8.1
61 61
27 21
14 Ore milled t 177,703 174,056 192,592
32 27 7 9 Grade1 g/t 7.0 7.4 7.7
Recovery % 96 97 97
Gold production oz 38,556 40,306 46,007
46
34 39 40
29 Cash Operating Costs $ per ounce
Mining 463 484 410
FY 11 FY 11 FY 11 FY 12 FY 12 Processing 134 124 110
Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec Site services 77 82 62
Gwalia King of the Hills Marvel Loch Stripping and ore inventory 15 (8) 58
koz adjustments
Figures displayed to nearest thousand ounces. Reported ounces in table below. 689 682 640
By product credits (4) (4) (4)
Third party refining & transport 1 1 1
Production Summary Jun Qtr Sep Qtr Dec Qtr
Royalties 36 33 46
Consolidated FY11 FY12 FY12
Total cash operating costs 722 712 683
Depreciation and amortisation 254 254 242
Production
Total operating costs 976 966 925
Gwalia oz 38,556 40,306 46,007
King of the Hills oz 7,066 9,343 14,107 The grade of mined ore continues to increase as ore
Southern Cross oz 27,238 20,959 23,501 sources move predominantly into the higher grade South
Consolidated oz 72,860 70,608 83,615 West Branch.
Mined Grade
Gwalia g/t 6.9 7.5 8.1 Gwalia Mined Grade
King of the Hills g/t 4.7 3.7 4.3
Southern Cross g/t 2.9 2.7 3.1 7.9 7.5 8.1
6.9
Total Cash Operating Costs 4.9
Gwalia $/oz 722 712 683 g/t Au
King of the Hills $/oz 699 872 754 FY 11 FY 11 FY 11 FY 12 FY 12
Southern Cross $/oz 985 1,193 1,215 Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec
Consolidated $/oz 818 876 844
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The grade of mined ore continues to increase as ore sources move predominantly into the higher grade South West Branch.

The increase in gold production is mainly due to an 11% increase in milled volumes together with the higher grade of ore mined.

Gwalia, Leonora, WA

Gwalia mine achieved both record production for the quarter, and the long‐term forecast sustainable production rate:

Higher than expected milling recoveries of 97% reflected an increase in the proportion of gold reporting to the gravity circuit following the installation of a second Knelson concentrator in August 2011.

Gold production up 14% to 46,007 ounces
Mined grade up 8% to 8.1 g/t Au

A small quantity of low grade ore from Tower Hill stockpile and Gwalia mineralised waste were also treated during the quarter to capitalise on available plant capacity.

Cash operating costs fell 4% to $683 per ounce
Mined ore increased 4% to 181,204 tonnes (Sep 11 qtr: 40,306 oz; 7.5 g/t Au; $712/oz; 173,498 t)

Cash operating costs reduced to $683 per ounce for the quarter and will continue to trend down as the grade is maintained above 8.0 g/t Au in the second half of FY12.

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Gwalia Gold Production
46.0
38.6 40.3
34.1
28.5
FY 11 FY 11 FY 11 FY 12 FY 12
Q2 Dec Q3 Mar Q4 Jun Q1 Sep Q2 Dec
koz
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Outlook

Production is expected to further increase in the second half of FY12, underpinned by higher mined grades, with a corresponding fall in cash operating costs. FY12 cash operating cost guidance remains at $610 to $640 per ounce.

A haulage optimisation preliminary feasibility study has been completed for the Gwalia mine. The outcome of a subsequent definitive feasibility study to assess the economic viability of a haulage shaft is due in the June 2012 quarter.

1 Includes Tower Hill low grade stockpile and Gwalia mineralised waste.

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December 2011 Quarterly Report

King of the Hills, Leonora, WA

King of the Hills mine reached its annualised production range during the quarter:

Gold production up 51% to 14,107 ounces
Mined grade up 16% to 4.3 g/t Au
Cash operating costs fell 14% to $754 per ounce
Mined ore increased 40% to 107,840 tonnes (Sep 11 qtr: 9,343 oz; 3.7 g/t Au; $872/oz; 77,034 t)

Southern Cross Operations, WA

Gold production was sourced from the Marvel Loch mine and low grade satellite stockpiles during the quarter:

Gold production up 12% to 23,501 ounces
Marvel Loch mined grade up 15% to 3.1 g/t Au
Cash operating costs stable at $1,215 per ounce
Mined ore decreased 35% to 163,814 tonnes (in line with expectations)
(Sep 11 qtr: 20,959 oz; 2.7 g/t Au; $1,193/oz; 251,628 t)

King of the Hills ‐ Gold Production

	0 7.1 9.3 14.1 FY 11 Q3 Mar FY 11 Q4 Jun FY 12 Q1 Sep FY 12 Q2 Dec koz	0 7.1 9.3 14.1 FY 11 Q3 Mar FY 11 Q4 Jun FY 12 Q1 Sep FY 12 Q2 Dec koz

Production Summary King of the Hills Jun Qtr FY11 Sep Qtr FY12 Dec Qtr FY12
Underground ore mined t 58,139 77,034 107,840 Grade g/t 4.7 3.7 4.3 Ore milled t 50,105 82,179 105,541 Grade g/t 4.6 3.8 4.4 Recovery % 95 94 94 Gold production oz 7,066 9,343 14,107 Cash Operating Costs $ per ounce Mining 534 716 582 Processing 194 247 185 Site services 90 67 33 Stripping and ore inventory adjustments (129) (176) (80) 689 854 720 By product credits (14) (15) (8) Third party refining & transport ‐ ‐ ‐ Royalties 24 33 42 Total cash operating costs 699 872 754 Depreciation and amortisation 298 298 298 Total operating costs 997 1,170 1,052
		534 716 582 194 247 185 90 67 33 (129) (176) (80)
		689 854 720 (14) (15) (8) ‐ ‐ ‐ 24 33 42
		699 872 754 298 298 298
		997 1,170 1,052

Outlook

King of the Hills production is expected to increase in the March 2012 quarter as stoping levels developed in the Eastern flank during the first half come into production. The grade is anticipated to vary from quarter to quarter, but reconciles in the long term to the Ore Reserve grade of 4.3 g/t Au.

Unit cash operating costs fell in the December 2011 quarter due to the higher head grade and increased mining volumes.

Southern Cross ‐ Gold Production

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32.2
27.4 27.2
23.5
21.0
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FY 11 Q2 Dec FY 11 Q3 Mar	FY 11 Q4 Jun FY 12 Q1 Sep FY 12 Q2 Dec koz

Production Summary Marvel Loch	Jun Qtr FY11 Sep Qtr FY12 Dec Qtr FY12
Underground ore mined t Grade g/t Ore milled t Grade g/t Recovery % Gold production oz Cash Operating Costs Mining Processing Site services Stripping and ore inventory adjustments By product credits Third party refining & transport Royalties Total cash operating costs Depreciation and amortisation	308,389 251,628 163,814 2.9 2.7 3.1 316,149 295,076 518,560 2.9 2.5 1.6 93 89 88 27,238 20,959 23,501 $ per ounce
	583 720 642 318 378 498 94 115 101 (26) (53) (56)
	969 1,160 1,185 (13) (18) (10) 2 2 2 27 49 38
	985 1,193 1,215 184 264 333
Total operating costs	1,169 1,457 1,548

The Southern Cross Operations are continuing to perform to expectations and generate positive cash flows as the Marvel Loch mine life comes to an end. Lower underground volumes from Marvel Loch were offset by milling existing low grade stockpiles from satellite mine sites.

Outlook

It is anticipated that increased mining volumes from the Marvel Loch mine will underpin a modest increase in production in the September 2012 quarter, and will combine with the recovery of surface stockpiles at legacy sites, to extend gold production at Southern Cross Operations beyond August 2012 and into the December 2012 quarter. Following this the processing plant will be

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December 2011 Quarterly Report

placed on care and maintenance.

Mine development is expected to progressively reduce as the Marvel Loch mine approaches closure, with an anticipated increase in net cash flows.

Strategic options for the Southern Cross Operations continue to be evaluated ahead of the anticipated mine closure at Marvel Loch.

shear zone, following the southerly plunge at depth.

Six holes have been completed, and a series of variable intersections have been made within the BIF, demonstrating the pinching and swelling nature of the shear zone down‐plunge. Significant intercepts during the quarter included (all intercepts down‐hole, details in Table 1):

FSDD17, 4.8m @ 5.6 g/t Au from 278m;

Discovery and Growth

Leonora Region, WA

Gwalia : The deep drilling program at Gwalia is aimed at extending Inferred Resources, and converting a substantial portion of existing Inferred Resources to Indicated Resources (and potentially Ore Reserves), within the current planned mining depth interval.

Encouraging intercepts from the first wedge hole of a seven drill hole program, GWDD11I, included (all intercepts down‐ hole, details in Table 1):

13.2m @ 9.8 g/t Au from 1,647m (South West Branch);
6.8m @ 11.2 g/t Au from 1,670m (South Gwalia Series).

These initial results from hole GWDD11I appear to extend the Gwalia lodes further south than existing resources. A second drill machine will be added to this program in January 2012 with the aim of extending the resource further north, and a total of 5,800m is expected to be completed by mid 2012.

Leonora targets: The program of drill testing continued in the Leonora district at Gwalia near‐mine targets . As highlighted previously, a series of deep conceptual targets have been identified on the main shear zone centred on the Gwalia mine trend for drill testing. Commencement of this drilling is subject to obtaining clearances from heritage surveys, which were completed during the December quarter, and satisfying other land access requirements. As a result, it is planned that several of these Gwalia near‐ mine targets will be tested later in 2012.

Initial drilling programs at Jasper Hill, Marionette and Coronation have been completed and the results are being analysed.

Southern Cross Region, WA

Nevoria : The aim of the program is to convert a substantial portion of Inferred Resources to Indicated Resources, leading to feasibility work for an underground mining operation to contribute ore to the Marvel Loch plant.

With 7 holes of a planned 10 holes completed, results to date have confirmed the existing geological interpretation and estimated grade. The program is expected to be completed in January with a revised resource estimate due in the March 2012 quarter.

Frasers: As a result of significant high grade gold intersections from the Frasers project in the September 2011 quarter, a second phase drill program of eight holes was commenced in November. The aim of this program was to further extend the high grade mineralisation hosted by banded iron formation (BIF) rock units with the main

FSDD20, 4.9m @ 4.5 g/t Au from 269m,
FSDD16, 2.1m @ 7.5 g/t Au from 391m.

Drilling will continue during the March 2012 quarter to complete an additional two holes, at which stage results will be reviewed.

On completion of this program, the drill team will relocate south to the Cornishman mine, to test the potential for similar high‐grade, BIF mineralisation hosted by the same regional shear zone.

Copperhead: A drilling program will be undertaken in early 2012 to delineate the Western Series Lode target zone and follow up the high grade mineralisation intersected previously in drill hole CHRD02.

Other Areas

Yilgarn province, WA : Access has been granted to part of the Lake Carnage tenement, and geochemical drilling is expected to commence early in 2012. Elsewhere, regional targeting studies are continuing to generate priority areas with potential for larger higher grade deposits and for possible acquisition.

East Lachlan Fold Belt, NSW : The target in the Nyngan area, NSW, is intrusive‐related porphyry copper‐gold mineralisation within a large volcanic complex situated under younger cover rocks on the edge of the Great Artesian Basin. Following the encouraging signs obtained in previous drill hole BCRDD09, a detailed geophysical gravity survey has commenced to assist development of follow‐up drill targets, and will be completed in January. Subject to results, drilling is expected to resume in the March 2012 quarter.

Discovery and Growth Outlook

The exploration budget for FY12 has been increased by $6 million to $22 million to fund additional drilling programs. The map below shows current and planned target areas for the remainder of FY12.

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December 2011 Quarterly Report

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Health & Safety

The Total Recordable Injury Frequency Rate, calculated as a rolling 12 month average, improved from 12.6 to 11.9 at the end of the December quarter. Incidents are reducing in both frequency and severity.

Financials (unaudited)

82,130 ounces of gold were sold in the December quarter, at an average gold price of A$1,638 per ounce.

Net cash increased by $36 million for the quarter to $107 million, comprising cash at bank at 31 December 2011 of $110 million, and interest bearing liabilities of $3 million.

Corporate

A share buy‐back facility was announced on 21 December 2011, allowing the repurchase of up to 15 million shares over a six month period. The buy‐back facility was established to enable St Barbara to apply its strong balance sheet and cash position to consolidate the Company’s capital base for the benefit of shareholders. No shares were repurchased during the quarter.

Forward Guidance FY12

FY12 production and cost guidance is maintained.

Forward Guidance FY12	Forward Guidance FY12	Gwalia	King of the Hills	Marvel Loch	Total
		Leonora		S’thn Cross
Gold production	koz	175‐190	55‐60	90‐100	320‐350
Cash operating cost	$/oz	610‐640	710‐750	1,170 ‐1,220	‐
Capex	$M	55‐60	20‐25	10‐15	85‐100

The above table is reproduced from the June 2011 Quarterly Report. For full details and the associated disclaimer, refer to the June 2011 Quarterly Report available at www.stbarbara.com.au.

Mr Alistair Croll joined the Company as Chief Operating Officer on 16 January 2012. Mr Croll is an experienced mining executive with over 20 years of industry experience, having held senior roles at De Beers, Anglo Platinum, Consolidated Minerals and most recently, Managing Director at Kimberley Diamond Company.

On 9 November 2011, St Barbara was recognised by the Federal Government’s Equal Opportunity for Women in the Workplace Agency with a Director’s Award acknowledging St Barbara’s advancements in increasing work participation and leadership by women.

Share Capital at 31 December 2011

Issued shares

Opening balance 30 September 2011 Shares repurchased under buy‐back facility Closing balance 31 December 2011 Unlisted employee options Opening balance 30 September 2011 Lapsed Closing balance 31 December 2011 Unlisted performance rights Opening balance 30 September 2011 Issued Lapsed Closing balance 31 December 2011	325,615,389 nil
	325,615,389
	3,346,227 (292,784)
	3,053,443
	2,388,863 1,637,460 (112,601)
	3,913,722

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December 2011 Quarterly Report

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Corporate Directory

St Barbara Limited ABN 36 009 165 066

Board of Directors

Colin Wise ................................. Non‐Executive Chairman Tim Lehany .............................. Managing Director & CEO Doug Bailey .................................. Non‐Executive Director Betsy Donaghey ........................... Non‐Executive Director Phil Lockyer ................................. Non‐Executive Director Robert Rae ................................... Non‐Executive Director

Executive Team

Tim Lehany .............................. Managing Director & CEO Garth Campbell‐Cowan ................. Chief Financial Officer Alistair Croll ................................. Chief Operating Officer Ross Kennedy ............................ EGM Corporate Services Phil Uttley ............................. EGM Discovery and Growth

Registered Office

Level 10, 432 St Kilda Road Melbourne Victoria 3004 Australia

Telephone .............................................. +61 3 8660 1900 Facsimile ................................................ +61 3 8660 1999 Email ............................... [email protected] Website ...................................... www.stbarbara.com.au

Substantial Shareholders % of Holdings[1] M&G Investment Management Ltd[2] ..................... 18.1% Hunter Hall Investment Management Ltd ............... 6.4% Franklin Resources Inc .............................................. 6.0% Van Eck Associates Corporation ............................... 5.0%

% as notified by the substantial shareholders.
M&G Group’s interest includes shares also disclosed by Vanguard Precious Metals & Mining Fund.

Shareholder Enquiries

Computershare Limited

GPO Box 2975 Melbourne Victoria 3001 Australia

Telephone (within Australia) .................... 1300 653 935 Telephone (international) ..................... +61 3 9415 4356 Facsimile ............................................... +61 3 9473 2500

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, Mineral Resources contained 7.6 million ounces of gold including Ore Reserves containing 2.8 million ounces of gold*. Ten priority exploration targets will be drilled in FY12.

Gold production, profit and operating cash flow all increased in FY11. Net profit after tax increased to $69 million. Gold production is expected to grow by 30% in FY12 to between 320,000 and 350,000 ounces.

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For full details refer to the Ore Reserves and Mineral Resources Statements contained in the 2011 Annual Report, available at www.stbarbara.com.au.

Investor Relations Contacts

Ross Kennedy ....................................... + 61 3 8660 1903 Rowan Cole .......................................... + 61 3 8660 1914

Australian Securities Exchange (ASX) Listing code “SBM” American Depositary Receipts (ADR) – through The Bank of New York Mellon, www.adrbnymellon.com

Financial figures are in Australian dollars.

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December 2011 Quarterly Report

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Figure 1: Gwalia Deeps (Leonora) Ore Reserves and Mineral Resources

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Figure 2: Gwalia Deeps (Leonora) Planned Drilling Program

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December 2011 Quarterly Report

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Figure 3: Frasers (Southern Cross) Cross Section Showing Results From Recent Drilling