ST BARBARA LIMITED — Interim / Quarterly Report 2016

Feb 22, 2016

==> picture [383 x 108] intentionally omitted <==

----- Start of picture text -----

ASX Release / 23 February 2016
----- End of picture text -----

==> picture [170 x 55] intentionally omitted <==

==> picture [457 x 137] intentionally omitted <==

December 2015 Half Year Financial Report

Strong operating and financial performance & strategic review of Simberi Operations

The statutory profit after tax for the half year to 31 December 2015 was $77 million, with the underlying profit after tax[1] $60 million. This represents a significant improvement on the corresponding prior period (2014: $20 million statutory loss, $1 million[2] underlying loss), primarily due to:

• increased segment profit at Leonora of $97 million[2] (2014: $53 million[2] ), which excludes $15 million profit on sale of the King of the Hills mine and Kailis resource

• significantly improved operating performance at Simberi resulted in a segment profit of $21 million (2014: $14 million segment loss)

• completion of the divestment of the previously unprofitable Gold Ridge operations incurred $1 million cash outflow (2014: segment loss of $6 million).

Cash and cash equivalents on hand at 31 December 2015 was $100 million[3] , with total interest bearing debt of $293 million (June 2015: $347 million). The debt primarily comprised US$180 million senior secured notes and US$36 million Red Kite debt facility, which were reduced by US$ 55 million in total from 30 June 2015. Debt has been further reduced in the second half as announced previously.

Consolidated net cash flow from operations for the period increased to $123 million (2014: $22 million).

St Barbara MD & CEO, Bob Vassie, said: “This is another strong half that reflects the quality of our operations and the fundamental repositioning of our business. With continued strong cash generation we have significantly strengthened our balance sheet and we are now seeking to realise the longer term potential of our assets”.

Full details are set out in the attached Appendix 4D and Interim Financial Report for the Half Year to 31 December 2015.

1 Non-IFRS measure, refer attached Interim Financial Report for the Half Year to 31 December 2015, page 4 2 Excluding discontinued operations

3 Excludes $1 million restricted cash

Investor Relations	Mr Rowan Cole Company Secretary	+61 3 8660 1900
Media Relations	Ms Nerida Mossop Hinton & Associates	+61 3 9600 1979
St Barbara Limited	Level 10, 432 St Kilda Road, Melbourne VIC 3004	T+61 3 8660 1900F+61 3 8660 1999
ACN 009 165 066	Locked Bag 9, Collins Street East, Melbourne VIC 8003	Wwww.stbarbara.com.au

==> picture [380 x 37] intentionally omitted <==

Strategic Review of Simberi Operations

The Simberi Operation in PNG has been profitable since December 2014 when it started operating at the target 100,000 ounce per annum production rate. The mine produced 107,553 ounces of gold for the 2015 calendar year and is forecast to produce between 100,000 and 110,000 ounces for the 2016 financial year. The exploration lease EL609 covering the Tabar Island group (which includes Simberi Island) is highly prospective[4] .

The pre-feasibility study (PFS) for the Simberi Sulphide Project is now due to be completed in April 2016. A key remaining input to the PFS is an independent review of the resource. A progress report on the PFS indicates that the Sulphide Project would extend the existing oxide mine life at Simberi (currently approximately 3 years) by producing up to an additional one million ounces of gold in concentrate over a further 7 years. An optimised mine plan for the Simberi Sulphide Project will require a phased cut-over from current oxide mining, as some parts of the existing oxide reserve are contained within the Sulphide Project pit shell, and would continue to be processed to generate gold doré. Indicative parameters of the Sulphide Project from the progress report are set out below.

It is proposed that the Sulphide Project would utilise the existing infrastructure on Simberi Island, including the airport, power station, village, and wharf. The existing semi-autogenous grinding (SAG) mill and ball mill would be utilised in a new plant flowsheet, maintaining the ability to process both oxide and sulphide ores. The progress report on the PFS indicates that the production and sale of a concentrate is the preferred option, which avoids the requirement to establish downstream processing on the Island. The progress report on the PFS estimates the Sulphide Project will require a capital investment of approximately US$100 million (A$140 million at A$/US$ 0.70), however, this includes US$42 million for a new mining fleet, and contract mining will be assessed as part of ongoing study.

To avoid any interruption to production, a decision on the Sulphide Project is required during the 2016 calendar year. To help evaluate the potential investment in the Simberi Sulphide Project against the Company’s other potential investment opportunities, St Barbara has appointed Cutfield Freeman & Co as its financial advisor to assist the Company to conduct a Strategic Review and evaluate various options regarding its PNG assets which include the Sulphide Project, the existing oxide operation, and the EL609 exploration licence across the Tabar Island Group (incorporating Simberi, Tatau and Big Tabar Islands).

The Strategic Review is anticipated to take approximately 6 months and will explore a range of options for the Company’s various PNG assets, including continued ownership, exploration and development, joint ventures and divestment of some or all of the assets.

4 Refer Q2 December 2015 Quarterly Report released 21 January 2016 St Barbara Limited ASX Release 23 February 2016

==> picture [380 x 37] intentionally omitted <==

Indicative parameters of the Simberi Sulphide Project:

Scope

Produce and sell gold concentrate from sulphide ores and gold doré from oxide ores

Ore Reserves Sulphide: 19.9 Mt @ 2.0 g/t Au for 1,285 koz of contained gold at 30 June 2015[5] Oxide: 19.1 Mt @ 1.3 g/t Au for 818 koz of contained gold[6] Capex US$100 million (A$140 million at A$/US$ 0.70) comprising:

• US$43 million processing plant

• US$42 million mining fleet (contract mining to be assessed as an alternative)

• US$15 million general site infrastructure

Production (after Average annual production from sulphide ores approx. 140,000 ounces over 7 years applying recovery) (1 Moz in total)

Production from oxide ores treated within the Sulphide Project varies by year (140,000 oz in total)

Mill throughput 2.0 Mtpa Recovery c. 83% Output Gold concentrate @ 30+ g/t Au from sulphide ores Gold doré from oxide ores

All-In Sustaining Cost[7] US$930 to US$990 per ounce

The above project metrics are based on a progress report on the PFS and are subject to the assumptions contained therein. The results may change as the PFS is finalised. It is envisaged that further optimisation and value engineering activities will continue on the Project during the strategic review.

Disclaimer

This release has been prepared by St Barbara Limited (“Company”). The material contained in this release is for information purposes only. This release is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this release nor anything contained in it shall form the basis of any contract or commitment.

This release contains forward-looking statements that are subject to risk factors associated with exploring for, developing, mining, processing and the sale of gold. Forward-looking statements include those containing such words as anticipate, estimates, forecasts, indicative, should, will, would, expects, plans or similar expressions. Such forwardlooking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, and which could cause actual results or trends to differ materially from those expressed in this release. Actual results may vary from the information in this release. The Company does not make, and this release should not be relied upon as, any representation or warranty as to the accuracy, or reasonableness, of such statements or assumptions. Investors are cautioned not to place undue reliance on such statements.

This release has been prepared by the Company based on information available to it, including information from third parties, and has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or opinions contained in this release.

The Company estimates its reserves and resources in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves 2012 Edition (“JORC Code”), which governs such disclosures by companies listed on the Australian Securities Exchange.

• 5 Refer ASX release 25 August 2015 ‘Ore Reserves and Mineral Resources Statements as at 30 June 2015’

6 Parts of the existing oxide reserve are contained within the Sulphide Project pit shell, and are subject to optimisation of the existing oxide operation

7 Non-IFRS measure, refer attached Interim Financial Report for the Half Year to 31 December 2015, page 6

St Barbara Limited ASX Release 23 February 2016

Appendix 4D

Half Year Report

ST BARBARA LIMITED

ABN or equivalent company reference Half yearly (tick) Preliminary final_(tick)_ 36 009 165 066  Results for announcement to the market	ABN or equivalent company reference Half yearly (tick) Preliminary final_(tick)_ 36 009 165 066  Results for announcement to the market	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 2015
Revenue from ordinary activities Profit from ordinary activities after tax from continuing operations attributable to members (Prior corresponding period loss: $7,784,000) Net profit attributable to members of the parent entity (Prior corresponding period loss: $19,879,000) Dividends No dividend has been declared or paid		up 32% to 311,625 n/m to 77,448 n/m to 77,448
n/m=not meaningful
Net Tangible Assets per security Details of dividend distribution Details of reinvestment plans Details of joint venture entities and associates Foreign entity accounting standards Audit dispute or qualification		0.41 0.28 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Dated: 23 February 2016

==> picture [109 x 45] intentionally omitted <==

Bob Vassie Managing Director and CEO

==> picture [212 x 65] intentionally omitted <==

Interim Financial Report for the half-year ended 31 December 2015

ST BARBARA LIMITED HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2015

Table of Contents

DIRECTORS’ REPORT ................................................................................................................................................... 3 AUDITOR’S INDEPENDENCE DECLARATION ................................................................................................................ 11 CONSOLIDATED INCOME STATEMENT ....................................................................................................................... 12 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ...................................................................................... 13 CONSOLIDATED STATEMENT OF FINANCIAL POSITION .............................................................................................. 14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................................... 15 CONSOLIDATED CASH FLOW STATEMENT .................................................................................................................. 16 Note 1 – Basis of preparation ................................................................................................................................. 17 Note 2 – Significant accounting policies ................................................................................................................. 17 Note 3 – New standards and interpretations not yet adopted ............................................................................... 17 Note 4 – Critical accounting estimates and judgements ......................................................................................... 17 Note 5 – Segment information ............................................................................................................................... 18 Note 6 – Contingent liabilities ................................................................................................................................ 20 Note 7 – Dividends ................................................................................................................................................. 20 Note 8 – Revenue .................................................................................................................................................. 21 Note 9 – Finance costs ........................................................................................................................................... 21 Note 10 – Significant Items .................................................................................................................................... 22 Note 11 – Income tax ............................................................................................................................................. 23 Note 12 – Cash and cash equivalents ..................................................................................................................... 23 Note 13 – Interest bearing liabilities ...................................................................................................................... 23 Note 14 – Contributed equity ................................................................................................................................ 24 Note 15 – Accumulated losses ............................................................................................................................... 24 Note 16 – Subsequent events ................................................................................................................................ 24 Note 17 – Financial instruments ............................................................................................................................ 25 DIRECTORS' DECLARATION ........................................................................................................................................ 26 INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ST BARBARA LTD ................................................ 27 CORPORATE DIRECTORY ............................................................................................................................................ 29

Page 2 of 30

ST BARBARA LIMITED

31 DECEMBER 2015

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

The Directors present their report on the “St Barbara Group”, consisting of St Barbara Limited and the entities it controlled at the end of, or during, the half year ended 31 December 2015.

Directors

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

• T C Netscher Non-Executive Chairman

• R S Vassie Managing Director & CEO  K J Gleeson Non-Executive Director  D E J Moroney Non-Executive Director

Principal activities

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

Dividends

There were no dividends paid or declared during the period.

Overview of Results

During the half year the Group continued the significant improvement in its financial performance which began in the 2015 financial year, with key achievements during the half year being:

• Continued strong production from the Gwalia mine of 135,921 ounces of gold (2014 comparative period: 113,980 ounces) generating significant net cash flows during the half year of $115,829,000 (2014: $60,969,000).

• Continued positive performance from the Simberi operations in Papua New Guinea, with this operation producing 57,918 ounces of gold (2014 comparative period: 29,934 ounces) and generating positive net cash flows of $16,545,000 (2014: negative $14,811,000). In the calendar year ended 31 December 2015 Simberi produced 107,553 ounces of gold, exceeding the targeted annual rate of 100,000 ounces.

• Divestment of the mature King of the Hills mine at Leonora leaving the Group with no residual environmental, rehabilitation or other liabilities associated with this operation and the Kailis tenements.

The Group reported a statutory net profit after tax of $77,448,000 for the half year ended 31 December 2015 (2014: statutory net loss after tax of $19,879,000), including Significant Items totalling a net profit after tax of $17,548,000 (2014: net loss of $6,775,000).

To provide additional clarity into the underlying performance of the operations the underlying measures for the period are presented in the table below, together with the statutory results. Underlying net profit after tax, before significant items, was $59,900,000 (2014: net loss of $13,104,000).

The Group generated net cash flows before financing activities of $98,951,000 (2014: negative $12,210,000) in the period, which enabled the significant reduction in borrowings.

Cash on hand (excluding restricted cash) at 31 December 2015 was $100,492,000 (30 June 2015: $76,871,000), and this was after debt repayments totalling $78,120,000 during the period. Total interest bearing borrowings at 31 December 2015 were well down on the last reporting date at $293,237,000 (30 June 2015: $346,961,000).

Page 3 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

The consolidated result for the period is summarised as follows:

	Period ended 31 Dec 2015 $’000	Period ended 31 Dec 2014 $’000
EBITDA(3)(6)(including significant items) EBIT(2)(6)(including significant items) Profit/(Loss) before tax(4) Statutory profit/(loss)(1) after tax for the year Total net significant items after tax EBITDA(6)(excluding significant items) EBIT(6)(excluding significant items) Profit/(loss) before tax – excluding significant items Underlying net profit/(loss) after tax(5)(6) for the year	160,832 120,241 100,969 77,448	45,118
		7,472
		(13,140)
		(19,879)
	17,548 143,908 103,317 84,045 59,900	(6,775)
		51,893 14,247 (6,365) (13,104)

(1) Statutory profit/(loss) is net profit/(loss) after tax attributable to owners of the parent.

(2) EBIT is earnings before interest revenue, finance costs and income tax expense. It includes revenues and expenses associated with discontinued operations in the prior corresponding period.

(3) EBITDA is EBIT before depreciation and amortisation. It includes revenues and expenses associated with discontinued operations in the prior corresponding period.

(4) Profit/(loss) before tax is earnings before income tax expense. It includes revenues and expenses associated with discontinued operations in the prior corresponding period.

(5) Underlying net profit/(loss) after income tax is net profit/(loss) after income tax (“Statutory Profit/(Loss)”) less significant items as described in Note 10 to the financial statements.

(6) EBIT, EBITDA and underlying net profit/(loss) after tax are non-IFRS financial measures, 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 by users.

Details of significant items included in the Statutory Profit/(Loss) for the half year are displayed in the table below. Descriptions of each item are provided in Note 10 to the financial report.

	Period ended 31 Dec 2015 $’000	Period ended 31 Dec 2014 $’000
Effect of foreign exchange movements on US borrowings Unrealised foreign exchange gains Realised foreign exchange loss on US debt repayments Gain on the sale of King of the Hills and Kailis Significant items before tax Significant items after tax	(10,214) 17,742 (5,462) 14,858	(46,490)
		39,715
		-
		-
	16,924	(6,775)
	17,548	(6,775)

Page 4 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

Overview of Operating Results

Total production for the Group in the half year was 202,951 ounces of gold (2014: 166,741 ounces), and gold sales amounted to 198,826 ounces (2014: 166,960 ounces) at an average gold price of A$1,564 per ounce (2014: A$1,411 per ounce). The prior corresponding period included higher production and gold sales from the King of the Hills mine, which ceased mining in April 2015 and production in September 2015.

Consolidated All-In Sustaining Cost (AISC) for the Group was $922 per ounce in the half year (2014: $1,166 per ounce), reflecting the benefits of strong results achieved at Gwalia and improved performance at Simberi.

The table below provides a summary of the underlying profit/(loss) before tax from continuing operations at Leonora and Simberi.

$’000 Revenue Mine operating costs Gross Profit Royalties EBITDA(1) Depreciation and Amortisation Underlying profit from operations(1)	Period ended 31 December 2015 Leonora Operations(2) Simberi Operations Consolidated 222,403 89,222 311,625 (84,863) (60,592) (145,455)	Period ended 31 December 2014
		Leonora Simberi Consolidated
		Operations(2) Operations
		194,706 41,652 236,358
		(101,691) (51,047) (152,738)
	137,540 28,630 166,170 (8,737) (1,994) (10,731)	93,015 (9,395) 83,620
		(7,550) (1,034) (8,584)
	128,803 26,636 155,439 (32,266) (5,754) (38,020)	85,465 (10,429) 75,036
		(32,527) (3,111) (35,638)
	96,537 20,882 117,419	52,938 (13,540) 39,398

(1) Excludes corporate and exploration costs, interest and tax and is non-IFRS financial information, which has not been subject to review or audit by the Group’s external auditors. This measure is presented to enable understanding of the underlying performance of the operations.

(2) Comprises the Leonora operations, which includes the Gwalia and King of the Hills underground mines and the Leonora processing plant. The King of the Hills mine ceased mining in April 2015 and produced 9,112 ounces in the September 2015 quarter (2014: 22,827 ounces).

The table below provides a summary of the cash contribution, after capital expenditure, from continuing operations in Australia and at Simberi.

$’000 Operating cash contribution Capital expenditure(1) Cash contribution	Period ended 31 December 2015 Leonora Operations Simberi Operations Consolidated 140,578 22,798 163,376 (12,974) (6,253) (19,227)	Period ended 31 December 2014
		Leonora Simberi Consolidated
		Operations Operations
		84,441 (10,665) 73,776
		(26,465) (4,146) (30,611)
	127,604 16,545 144,149	57,976 (14,811) 43,165

(1) Excludes Gwalia exploration deep drilling expenditure totalling $4,090,000 (2014: $Nil).

Analysis of Australian Operations

Total sales revenue from the Leonora operations of $222,403,000 (2014: $194,706,000) was generated from gold sales of 143,381 ounces (2014: 137,877 ounces) in the period at an average achieved gold price of A$1,549 per ounce (2014: A$1,407 per ounce). During the period revenue benefitted from higher gold sales compared with the prior corresponding period, despite the King of the Hills mine ceasing production in the September 2015 quarter, and a ten percent increase in the average achieved gold price. Gold sales from Gwalia were sixteen percent higher than the prior corresponding period.

Page 5 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

A summary of production performance for the half year ended 31 December 2015 is provided in the table below.

Details of Production Performance

	Gwalia	Gwalia	King of the Hills	King of the Hills
	6 Months to 31 Dec 15	6 Months to 31 Dec 14	6 Months to 31 Dec 15	6 Months to 31 Dec 14
Underground Ore Mined t	496,184	435,814	- - 76,361 3.9 95 9,112 9,112 893 964	256,538 4.1 177,364 4.2 95 22,827 22,254 1,089 1,257
Grade g/t Au	8.8	8.5
Ore Milled (including stockpiles) t	507,769	446,717
Grade g/t Au	8.7	8.3
Recovery %	96	96
Gold Production oz	135,921	113,980
Gold Sales oz	134,269	115,623
Cash Cost(1) A$/oz	605	673
All-In Sustaining Cost (AISC)(2) A$/oz	764	964

(1) Cash Operating Costs are mine operating costs including government royalties, and after by-product credits. This is a non-IFRS financial measure which has not been subject to review or audit by the Group’s external auditors. It is presented to provide meaningful information to assist management, investors and analysts in understanding the results of the operations. Cash Operating Costs are calculated according to common mining industry practice using The Gold Institute (USA) Production Cost Standard (1999 revision).

(2) All-In Sustaining Cost (AISC) is based on Cash Operating Costs, and adds items relevant to sustaining production. It includes some but not all, of the components identified in World Gold Council’s Guidance Note on Non-GAAP Metrics – All-In Sustaining Costs and All-In Costs (June 2013), which is a non IFRS financial measure.

Gwalia

Gwalia reported another strong performance in the period with gold production of 135,921 ounces (2014: 113,980 ounces). The continuing strong performance at Gwalia is mainly the result of productivity improvements, including successful implementation of innovations in mining, and higher grade.

Ore tonnes mined from the Gwalia underground mine increased by fourteen percent from 435,814 tonnes in 2014 to 496,184 tonnes in the current period, largely due to excellent productivity improvements achieved through ongoing implementation of innovations such as underground storage of waste and an ore pass system.

Ore mined grades increased from 8.5 grams per tonne gold in 2014 to 8.8 grams per tonne gold in the current period, mainly due to improved control of dilution, and the fact that the mine was operating in a higher grade area of the ore body. Ore milled grade of 8.7 grams per tonne was higher than the 8.3 grams per tonne achieved in the prior corresponding period in line with the higher mined grade. The Gwalia mill continued to perform strongly in the period, with higher throughput in line with the increased ore production and the average recovery consistent at 96 percent.

Gwalia unit Cash Operating Costs for the period were $605 per ounce (2014: $673 per ounce), reflecting the benefit of increased production and lower operating costs. The unit All-In Sustaining Cost (AISC) for Gwalia was $764 per ounce for the period, which was well down on the $964 per ounce reported in the prior corresponding period. The lower AISC was due to the lower unit Cash Operating Cost and reduced sustaining capital expenditure in the period compared to the prior corresponding period. Total Cash Operating Costs at Gwalia of $82,232,000 were seven percent higher compared with the prior corresponding period (2014: $76,709,000), with production volumes up by fourteen percent in the period.

In the period Gwalia generated net cash flows, after capital expenditure, of $115,829,000 (2014: $60,969,000).

King of the Hills

Gold production from King of the Hills was 9,112 ounces in the period (2014: 22,827 ounces) from processing ore stockpiles; mining at King of the Hills ceased in April 2015.

The King of the Hills unit cash operating costs for the period were $893 per ounce (2014: $1,089 per ounce), and the unit All-In Sustaining Cost (AISC) was $964 per ounce (2014: $1,257 per ounce). Total Cash Operating Costs at King of the Hills were $8,137,000 in the period (2014: $24,859,000).

King of the Hills generated net positive cash flows in the period of $11,775,000 from stockpiled ore (2014: cash outflow of $2,993,000)

Page 6 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

Analysis of Simberi Operations

The successful turnaround of the Simberi operations achieved since December 2014 was further consolidated in the period. The turnaround was achieved through optimising the processing plant to sustain throughput of 3.5 million tonnes per annum, improvement in the mining fleet and achieving productivity improvements in mining operations. During the period Simberi continued its focus on achieving further productivity improvements across the operations, including increased attention to the ore delivery system and an ongoing commitment to reducing operating costs.

Total sales revenue from Simberi in the period was A$89,222,000 (2014: A$41,652,000) generated from gold sales of 55,445 ounces (2014: 29,083 ounces) at an average achieved gold price of A$1,605 per ounce (2014: A$1,410 per ounce).

A summary of production performance at Simberi for the half year ended 31 December 2015 is provided in the table below.

Details of Production Performance

	Simberi	Simberi
	6 Months to 31 Dec 15	6 Months to 31 Dec14
Open Pit Ore Mined t	1,772,086	889,421
Grade g/t Au	1.22	1.10
Ore Milled (including stockpiles) t	1,690,908	1,152,046
Grade g/t Au	1.27	0.96
Recovery %	83	82
Gold Production oz	57,918	29,934
Gold Sales oz	55,445	29,083
Cash Cost A$/oz	1,108	1,859
All-In Sustaining Cost (AISC) A$/oz	1,285	1,866

Simberi production for the six months ended 31 December 2015 of 57,918 ounces was significantly higher than the prior corresponding period, and was also seventeen percent higher than the second half of financial year 2015, which achieved production of 49,635 ounces.

Ore tonnes mined and total volume of material moved has continued to increase, with total material moved in the period of 5,023,000 tonnes compared to 2,790,000 tonnes for prior corresponding period. Total material moved in the second half of the 2015 financial year was 3,499,000 tonnes. The improvement in mining performance was largely attributable to better equipment reliability and availability, continuing improvement in equipment and ongoing introduction of efficiencies in the mining operations.

Ore milled increased to 1,690,908 tonnes in the period (2014: 1,152,046 tonnes), which reflected the benefit of operational improvements to increase performance of the processing plant. Processing ore through both the SAG mill and recommissioned ball mill only commenced in December 2014, with the current period benefitting from both mills operating.

Simberi unit Cash Operating Costs for the period were $1,108 per ounce (2014: $1,859 per ounce), reflecting the positive impact of increased production and lower operating costs. The unit All-In Sustaining Cost (AISC) for Simberi was $1,285 per ounce in the period (2014: $1,866 per ounce). Total Cash Operating Costs at Simberi during the period were higher than the prior corresponding period at $64,173,000 (2014: $55,647,000) due to increased mining and processing volumes.

In the period Simberi generated net positive cash flows, after capital expenditure, of $16,545,000 (2014: negative net cash flows of $14,811,000).

Page 7 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

Discussion and Analysis of the Income Statement

Revenue

Total revenue increased from $236,358,000 in 2014 to $311,625,000 in the current period. Revenue from Gwalia and Simberi was higher than the prior period due to increased production and gold sales, and the benefit of the higher gold price. Revenue from King of the Hills in the period was lower than the prior corresponding period at $13,960,000 (2014: $31,342,000).

Mine operating costs

Mine operating costs in relation to continuing operations were $145,455,000 in the current period compared to $152,738,000 in the prior corresponding period. The higher operating costs in the prior corresponding period were mainly attributable to King of the Hills which ceased mining in April 2015 and only had limited expenditure in the current period.

Other revenue and income

Other revenue of $1,211,000 (2014: $556,000) comprised mainly interest earned during the period of $1,177,000 (2014: $443,000). The higher interest earned is reflective of increased cash balances in the period.

Other income for the period of $3,480,000 (2014: $562,000) included $3,299,000 related to the net gain on settlement of a legal matter.

Exploration

Exploration expenditure expensed in the income statement in the period amounted to $3,517,000 (2014: $4,041,000). Total exploration expenditure incurred during the period amounted to $7,607,000 (2014: $4,041,000), with an amount of $4,090,000 (2014: $ nil) capitalised to exploration and evaluation. Exploration expenditure capitalised was associated with the deep drilling program at Gwalia, which is focused on investigating extensions to the lode system below the current Ore Reserves.

Corporate and support costs

Corporate and support costs for the period of $10,111,000 (2014: $13,784,000) comprised mainly expenses relating to the corporate office and compliance costs. Expenditure in the current period was lower compared to the prior corresponding period as a result of a cost reduction program that commenced in 2014.

Royalties

Royalty expenses for the period were $10,731,000 (2014: $8,584,000). Royalties paid in Western Australia are 2.5% of gold revenues, plus a corporate royalty of 1.5% of gold revenues. Royalties paid in Papua New Guinea are 2.25% of gold revenues earned from the Simberi mine. The increase in royalty expenses was attributable to the higher gold revenue from Leonora and Simberi.

Depreciation and amortisation

Depreciation and amortisation of fixed assets and capitalised mine development amounted to $40,591,000 (2014: $37,646,000) for the period. Depreciation and amortisation attributable to the Leonora Operations was $32,266,000 (2014: $32,527,000), with the prior period charge including $7,006,000 of depreciation and amortisation related to King of the Hills. The expense at Simberi was $5,754,000 (2014: $3,111,000), with the increased charge attributable to the higher production in the period.

Net gains on disposal of assets

During the period the net gains on disposal of assets of $15,372,000 (2014: $1,424,000) included the profit on disposal of the King of the Hills mine and Kailis tenements of $14,858,000.

Other expenditure

Other expenditure of $1,189,000 (2014: $320,000) included costs related mainly to care and maintenance at King of the Hills.

Net finance costs

Finance costs in the period were $20,449,000 (2014: $20,911,000). Finance costs comprised interest paid and payable on borrowings and finance leases of $17,330,000 (2014: $17,540,000), capitalised borrowing costs amortised to the income statement of $2,128,000 (2014: $2,470,000) and the unwinding of the discount on the rehabilitation provision of $991,000 (2014: $1,045,000).

Foreign currency movements

A net foreign exchange movement gain of $1,324,000 was recognised for the period (2014: loss of $2,954,000).

Page 8 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

Income tax

An income tax expense of $23,521,000 was recognised for the period (2014: $6,739,000) which related mainly to the Australian operations. The effective tax rate in relation to Australian operations is 29.8 percent.

Discussion and Analysis of the Cash Flow Statement

Operating activities

Cash flows from operating activities for the period were $122,779,000 (2014: $21,883,000), reflecting the benefit of significantly higher receipts from customers and lower payments to suppliers and employees compared to the prior corresponding period. Receipts from customers of $312,198,000 (2014: $253,873,000) were higher than the prior corresponding period, despite lower gold revenue from King of the Hills, as a result of increased gold sales from Gwalia and Simberi; receipts for the period included gold revenue related to King of the Hills of $13,960,000 (2014: $31,342,000).

Payments to suppliers and employees were $169,597,000 (2014: $210,892,000). The prior corresponding period included payments related to Gold Ridge amounting to $10,535,000 and King of the Hills of $29,948,000. Payments for exploration expensed in the period amounted to $3,517,000 (2014: $3,791,000), which related to exploration activities in Western Australia and at Simberi and its neighbouring islands. Interest paid in the period of $17,205,000 (2014: $17,411,000) was in line with the prior corresponding period, with lower US dollar interest expense, as a result of repayments during the period, offset by the impact of a weaker Australian dollar on US dollar denominated interest payments.

Investing activities

Net cash flows used in investing activities amounted to $23,828,000 (2014: $34,093,000) for the period. Lower expenditure on development of mine properties of $11,127,000 (2014: $23,811,000) was the main reason for reduced investing expenditure in the period. Lower mine development was due mainly to reduced expenditure as a result of ceasing mining at King of the Hills. Exploration expenditure capitalised during the period totalled $4,090,000 (2014: $Nil), which all related to the deep drilling program at Gwalia. Investing expenditure during the period was in the following major areas:

• Underground mine development and infrastructure at Gwalia – $11,127,000 (2014: $19,497,000);

• Underground mine development and infrastructure at King of the Hills – $Nil (2014: $4,314,000);

• Purchase of property, plant and equipment at Gwalia – $1,847,000 (2014: $2,654,000);

• Purchase of property, plant and equipment at Simberi – $6,253,000 (2014: $4,146,000); and

• Exploration expenditure at Gwalia - $4,090,000 (2014: $Nil).

Financing activities

Net cash flows related to financing activities in the period were a net outflow of $77,413,000 (2014: net outflow of $5,368,000), which included the repayment of debt totalling $78,120,000 (2014: $3,215,000). The Company continued its focus on reducing borrowings with the strong free cash flows generated by the operations. The main movements in financing cash flows in the period included:

• Early repayment of the secured senior US dollar notes through buy backs totalling $21,419,000, with the buy backs realising discounts of between four and seven percent;

• Repayment of the Red Kite secured loan totalling $54,476,000, with $28,482,236 representing the prepayment of the facility; and

• Repayment of finance leases amounting to $2,225,000 (2014: $3,215,000).

Discussion and Analysis of the Statement of Financial Position

Net Assets and Total Equity

The Group’s net assets and total equity increased during the period by $62,105,000 to $202,534,000 due to the strong profit result and free cash flows generated by the operations, giving rise to increased cash on hand and significant reduction in borrowings.

Total current assets increased to $181,795,000 in the period (30 June 2015: $151,962,000) due mainly to the increase in cash and trade and other receivables.

Total provisions decreased to $43,861,000 (30 June 2015: $62,597,000) due mainly to de-recognition of the King of the Hills and Kailis rehabilitation provision.

Page 9 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

The deferred tax balance was a net liability of $7,642,000 (30 June 2015: net asset of $13,985,000). The net movement in deferred tax asset as at 30 June 2015 to a net deferred tax liability at the end of the period was due mainly to the utilisation of deferred tax losses.

Debt management and liquidity

The available cash balance at 31 December 2015 was $100,492,000 (30 June 2015: $76,871,000), with an additional $1,377,000 (30 June 2015: $2,084,000) held on deposit as restricted cash and reported within trade receivables.

Total interest bearing liabilities decreased to $293,237,000 as at 31 December 2015 (30 June 2015: $346,961,000). The weaker Australian dollar had a negative impact on the US dollar denominated debt as at 31 December 2015, partially offsetting the reduction in the Australian dollar value of borrowings through the buy back of senior secured notes and repayment of the Red Kite secured facility totalling $75,895,000. The largest components of borrowings as at 31 December 2015 were:

• US$180,395,000 (30 June 2015: US$195,980,000) senior secured notes translated at the period end AUD/USD exchange rate of 0.7285 (A$243,709,000), net of capitalised transaction costs of $3,919,000;

• A debt facility of US$35,625,000 (30 June 2015: US$75,000,000) drawn down with RK Mine Finance (“Red Kite”) translated at the period end AUD/USD exchange rate (A$46,540,000), net of capitalised transaction costs of $2,362,000; and

• Lease liabilities of $2,988,000.

The current portion of total debt as at 31 December 2015 was $24,147,000 (30 June 2015: $52,428,000).

The AUD/USD exchange rate as at 31 December 2015 was 0.7285 (30 June 2015: 0.7713).

Auditor independence

A copy of the Auditor’s Independence Declaration required under section 307C of the Corporations Act 2001 is set out on page 11 and forms part of this Director’s Report.

Events occurring after the end of the financial year

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

Rounding of amounts

St Barbara Limited is a Company of the kind referred to in Class Order 98/100 approved by the Australian Securities and Investments Commission and issued pursuant to section 341(1) of the Corporations Act 2001. As a result, amounts in this Directors’ Report and the accompanying Financial Report have been rounded to the nearest thousand dollars, except where otherwise indicated.

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

For and on behalf of the Board Dated at Melbourne this 23[rd] day of February 2016

==> picture [99 x 42] intentionally omitted <==

Bob Vassie Managing Director and CEO

Page 10 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT

AUDITOR’S INDEPENDENCE DECLARATION Set text colour to white after inserting the auditor’s independence declaration.

Page 11 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED INCOME STATEMENT For the half-year ended 31 December 2015

Note Revenue from operations 8 Mine operating costs Gross profit Other revenue 8 Other income Exploration expensed Corporate administration costs Royalties Depreciation and amortisation Net gain on disposal of assets Other expenditure Operating profit Net finance costs 9 Amortisation of hedge reserve Net foreign exchange gain/(loss) Profit/(loss) before income tax Income tax expense from continuing operations 11 Profit/(loss) for the period from continuing operations Loss for the period from discontinued operations Profit/(loss) attributable to equity holders of the Company Earnings per share for continuing operations: Basic profit/(loss) per share (cents) Diluted profit/(loss) per share (cents)	Half-Year 31 Dec 2015 $’000 31 Dec 2014 $’000 311,625 236,358 (145,455) (152,738) 166,170 83,620 1,211 556 3,480 562 (3,517) (4,041) (10,111) (13,784)(1) (10,731) (8,584) (40,591) (37,646) 15,372 1,424 (1,189) (320)(1) 120,094 21,787 (20,449) (20,911) - 1,033 1,324 (2,954) 100,969 (1,045) (23,521) (6,739) 77,448 (7,784) - (12,095)	Half-Year 31 Dec 2015 $’000 31 Dec 2014 $’000 311,625 236,358 (145,455) (152,738) 166,170 83,620 1,211 556 3,480 562 (3,517) (4,041) (10,111) (13,784)(1) (10,731) (8,584) (40,591) (37,646) 15,372 1,424 (1,189) (320)(1) 120,094 21,787 (20,449) (20,911) - 1,033 1,324 (2,954) 100,969 (1,045) (23,521) (6,739) 77,448 (7,784) - (12,095)
		31 Dec 2014 $’000
		236,358
		(152,738)
		83,620
		556
		562
		(4,041)
		(13,784)(1)
		(8,584)
		(37,646)
		1,424
		(320)(1)
		21,787
		(20,911)
		1,033
		(2,954)
		(1,045)
		(6,739)
		(7,784)
		(12,095)
	77,448	(19,879)
	15.64 14.92
		(1.59)
		(1.59)

(1) During the prior year the Group reclassified expenditure for certain costs from other expenditure to corporate and support costs. This classification better reflects the nature of the expenditure. Prior period expenditure of $927,000 was changed for comparative purposes.

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

Page 12 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the half-year ended 31 December 2015

Profit/(loss) for the period Other comprehensive income Items that may be reclassified subsequently to Profit or Loss: Changes in fair value of cash flow hedges taken to reserves Changes in fair value of available for sale financial assets Foreign currency translation differences – foreign operations Income tax on other comprehensive income Other comprehensive loss net of tax(1) Total comprehensive profit/(loss) attributable to equity holders of the company	Half-Year 31 Dec 2015 $’000 31 Dec 2014 $'000 77,448 (19,879) - (723) (4) - (17,437) (39,308) 1,894 - (15,547) (40,031) 61,901 (59,910)	Half-Year 31 Dec 2015 $’000 31 Dec 2014 $'000 77,448 (19,879) - (723) (4) - (17,437) (39,308) 1,894 - (15,547) (40,031) 61,901 (59,910)
		31 Dec 2014 $'000
		(19,879)
		(723)
		-
		(39,308)
		-
		(40,031)
		(59,910)

(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/(loss) comprises the result for the period adjusted for the other comprehensive income.

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

Page 13 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2015

Note Assets Current assets Cash and cash equivalents 12 Trade and other receivables Inventories Available for sale financial assets Deferred mining costs Total current assets Non-current assets Property, plant and equipment Deferred mining costs Mine properties Exploration and evaluation Mineral rights Net deferred tax asset Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Interest bearing borrowings 13 Provisions Total current liabilities Non-current liabilities Interest bearing borrowings 13 Provisions Net deferred tax liability Total non-current liabilities Total liabilities Net Assets Equity Contributed equity 14 Reserves Accumulated losses 15 Total equity	Consolidated 31 Dec 2015 30 June 2015 $'000 $'000 100,492 76,871 15,717 9,924 53,954 52,272 70 66 11,562 12,829	Consolidated 31 Dec 2015 30 June 2015 $'000 $'000 100,492 76,871 15,717 9,924 53,954 52,272 70 66 11,562 12,829
		30 June 2015
		$'000
		76,871
		9,924
		52,272
		66
		12,829
	181,795	151,962
	172,456 3,959 195,533 21,059 21,871 -
		170,045
		4,525
		211,989
		16,969
		23,407
		13,985
	414,878	440,920
	596,673	592,882
	49,399 24,147 6,034
		42,895
		52,428
		17,013
	79,580	112,336
	269,090 37,827 7,642
		294,533
		45,584
		-
	314,559	340,117
	394,139	452,453
	202,534	140,429
	887,216 (64,779) (619,903)
		887,216
		(49,436)
		(697,351)
	202,534	140,429

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 14 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half-year ended 31 December 2015

Balance at 1 July 2015 Share-based payments expense Accumulated profit/(loss) for the period Comprehensive income/(loss) for the period Balance at 31 December 2015	Contributed Equity $’000 Share Based Payments Reserve $’000 Gold Cash Flow Hedge Reserve $’000 Investment Fair Value Reserve $’000 Currency Translation Reserve $’000 Retained Earnings $’000 Total $’000 887,216 167 - (144) (49,459) (697,351) 140,429 - 204 - - - - 204 - - - - - 77,448 77,448 - - - (4) (15,543) - (15,547)
	887,216 371 - (148) (65,002) (619,903) 202,534
	Contributed Equity $’000 Share Based Payments Reserve $’000 Gold Cash Flow Hedge Reserve $’000 Investment Fair Value Reserve $’000 Currency Translation Reserve $’000 Retained Earnings $’000 Total $’000
Balance at 1 July 2014	886,242 437 985 (138) (18,272) (737,442) 131,812
Equity issues (net of transaction costs)	974 - - - - - 974
Share based payments expense	- (31) - - - - (31)
Accumulated loss for the period	- - - - - (19,879) (19,879)
Comprehensive loss for the period	- - (723) - (39,308) (40,031)
Balance at 31 December 2014	887,216 406 262 (138) (57,580) (757,321) 72,845

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

Page 15 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED CASH FLOW STATEMENT

For the half-year ended 31 December 2015

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 – finance leases 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 exploration and evaluation Payments for development of mine properties Net cash flow used in investing activities Cash flows from financing activities Movements in restricted cash and cash equivalents Senior secure notes repayments Other loan facility repayments Facility financing costs Principal repayments on finance leases Net cash flow used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Net foreign exchange movement Cash and cash equivalents at end of the period 12	Half-Year 31 Dec 2015 $’000 31 Dec 2014 $'000 312,198 253,873 (169,597) (210,892) (3,517) (3,791) 1,127 445 (17,205) (17,411) (146) (273) (81) (68) 122,779 21,883 814 1,235 (9,425) (11,517) (4,090) - (11,127) (23,811) (23,828) (34,093) 707 (507) (21,419) - (54,476) - - (1,646) (2,225) (3,215) (77,413) (5,368) 21,538 (17,578) 76,871 79,407 2,083 5,736 100,492 67,565	Half-Year 31 Dec 2015 $’000 31 Dec 2014 $'000 312,198 253,873 (169,597) (210,892) (3,517) (3,791) 1,127 445 (17,205) (17,411) (146) (273) (81) (68) 122,779 21,883 814 1,235 (9,425) (11,517) (4,090) - (11,127) (23,811) (23,828) (34,093) 707 (507) (21,419) - (54,476) - - (1,646) (2,225) (3,215) (77,413) (5,368) 21,538 (17,578) 76,871 79,407 2,083 5,736 100,492 67,565
		31 Dec 2014 $'000
		253,873
		(210,892)
		(3,791)
		445
		(17,411)
		(273)
		(68)
		21,883
		1,235
		(11,517)
		-
		(23,811)
		(34,093)
		(507)
		-
		-
		(1,646)
		(3,215)
		(5,368)
		(17,578)
		79,407
		5,736
		67,565

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

Page 16 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 1 – Basis of preparation

St Barbara Limited (the “Company”) is a company domiciled in Australia. The consolidated half year financial report of the Company as at and for the six months ended 31 December 2015 comprises the Company and its subsidiaries (together referred to as the “Group”).

This general purpose financial report for the half year reporting period ended 31 December 2015 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This consolidated half year 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 2015.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current half year. This consolidated half year financial report was approved by the Board of Directors on 23 February 2016.

Note 2 – Significant accounting policies

The accounting policies applied by the Group in this consolidated half year 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 2015, except for the impact of the Standards and interpretations described below. These accounting policies are consistent with Australian Accounting Standards.

The Group has adopted all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for the current half-year report. Accounting policies are applied consistently by each entity in the Group.

New and revised Standards and amendments thereof and Interpretations effective for the current half-year that are relevant to the Group include:

• AASB 2015-3 Amendments to Australian Accounting Standards arising from the withdrawal of AASB 1031 Materiality

Note 3 – New standards and interpretations not yet adopted

• I. AASB 9 Financial Instruments (December 2014) and AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9

AASB 9 introduces new requirements for the classification and measurement of financial assets. Under AASB 9, financial assets are classified and measured based on the business model in which they are held and the characteristics of their contractual cash flows. AASB 9 also introduces new requirements relating to financial liabilities. The change in fair value of financial liabilities designated at fair value through profit and loss due to an entity’s own credit risk are present in other comprehensive income, unless this creates an accounting mismatch. The standard has not been early adopted and as such has no impact on disclosure of the half year interim report.

• II. AASB 15 Revenues from contracts with customers

The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods and services. The standard has not been early adopted and as such has no impact on disclosure of the half year interim report.

Note 4 – Critical accounting estimates and judgements

The preparation of the half year 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 half year 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.

Page 17 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 5 – Segment information

The Group has two continuing operational business units: Leonora Operations and Simberi Operations. The operational business units are managed separately due to their separate geographic regions.

The Leonora Operations comprise underground gold mining operations in Western Australia, consisting of the Leonora processing plant and Gwalia mine. The King of the Hills mine was part of the Leonora business unit until its sale in October 2015. The results of all segments are reviewed regularly by the Group’s Executive Leadership Team, in particular production, cost per ounce and capital expenditures.

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

For the six months Revenue Mine operating costs Gross profit/ (loss) Royalties Depreciation and amortisation Profit from sale of assets Reportable segment profit /(loss) before income tax	Leonora Simberi Total 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 222,403 194,706 89,222 41,652 311,625 236,358 (84,863) (101,691) (60,592) (51,047) (145,455) (152,738)
	137,540 93,015 28,630 (9,395) 166,170 83,620
	(8,737) (7,550) (1,994) (1,034) (10,731) (8,584) (32,266) (32,527) (5,754) (3,111) (38,020) (35,638) 15,264 1,424 108 - 15,372 1,424
	111,801 54,362 20,990 (13,540) 132,791 40,822

For the six months Capital expenditure As at Segment – assets Segment – non-current assets Segment – liabilities	Leonora Simberi Total 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 (16,955) (25,654) (6,253) (8,039) (23,208) (33,693)	Leonora Simberi Total 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 (16,955) (25,654) (6,253) (8,039) (23,208) (33,693)	Leonora Simberi Total 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 (16,955) (25,654) (6,253) (8,039) (23,208) (33,693)	Leonora Simberi Total 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 31 Dec 2015 $’000 31 Dec 2014 $’000 (16,955) (25,654) (6,253) (8,039) (23,208) (33,693)
				31 Dec 2014 $’000
				(33,693)
	31 Dec 2015 $’000 331,583 302,684 29,015	30 Jun 2015 $’000 31 Dec 2015 $’000 356,675 150,454 334,556 106,145 37,689 41,357	30 Jun 2015 $’000 31 Dec 2015 $’000 129,274 482,037 99,122 408,829 20,424 70,372	30 Jun 2015 $’000
				485,949
				433,678
				58,113

Page 18 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 5 – Segment information (continued)

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

Revenues Total revenue for reportable continuing segments Other revenue Consolidated revenue from continuing operations Profit or loss Total profit for reportable continuing segments Other income and revenue Exploration expensed Unallocated depreciation and amortisation Finance costs Net fair value (loss)/gain on derivatives Foreign exchange gain/(loss) Corporate and support costs Other corporate expenses Consolidated profit/(loss) before income tax from continuing operations

Consolidated Period Ended 31 Dec 2015 $’000 Period Ended 31 Dec 2014 $'000 311,625 236,358 1,211 556 312,836 236,914 Consolidated Period Ended 31 Dec 2015 $’000 Period Ended 31 Dec 2014 $'000 132,791 40,822 4,691 1,118 (3,517) (4,041) (2,571) (2,008) (20,449) (20,911) - 1,033 1,324 (2,954) (10,111) (13,784) (1,189) (320) 100,969 (1,045)

Page 19 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 5 – Segment information (continued)

Reconciliation of reportable continuing segment revenues, profit or loss, assets, and other material items (continued):

Assets Total assets for reportable segments Cash and cash equivalents Trade and other receivables Available for sale financial assets Net deferred tax asset Property, plant & equipment Consolidated total assets	Consolidated 31 Dec 2015 $’000 30 June 2015 $'000 482,037 485,949 98,900 76,871 9,617 9,924 70 66 - 13,985 6,049 6,087
	596,673 592,882

Other material items Depreciation and amortisation	Half year ended 31 December 2015 Half year ended 31 December 2014 Reportable segment Adjustments Consolidated Reportable segment Adjustments Consolidated 38,020 2,571 40,591 35,638 2,008 37,646

Note 6 – Contingent liabilities

During July 2014, the Company announced that by operation of its internal reporting mechanisms, the provision of benefits to a foreign public official that may violate its Anti-Bribery and Anti-Corruption Policy or applicable laws in Australia or in foreign jurisdictions were identified. The amount of the benefits provided to the foreign public official was not material to the Company. The Company self-reported the matter to relevant authorities, including the Australian Federal Police, and the matter is being assessed and investigated. To date, there has been no action taken against the Company, consequently, the range of potential penalties, if any, cannot be reliably estimated. Should there be any prosecution, potential penalties are governed by laws in various jurisdictions including Criminal Code 1995 (Cth) in Australia and/or the UK Bribery Act .

Note 7 – Dividends

No dividends were declared or paid during the period (2014: Nil).

Page 20 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 8 – Revenue

Sales revenue - Sale of gold - Sale of silver Less revenue from discontinued operations Other revenue - Interest revenue - Sub-lease rental Revenue from operations Note 9 – Finance costs Interest paid/payable Borrowing costs Finance lease interest Provisions: unwinding of discount Less finance costs – discontinued operations	Consolidated Period ended 31 Dec 2015 $’000 Period ended 31 Dec 2014 $'000 310,878 239,458 747 794 - (3,894)
	311,625 236,358
	1,177 443 34 113
	1,211 556
	312,836 236,914
	Consolidated Period ended 31 Dec 2015 $’000 Period ended 31 Dec 2014 $'000 17,184 17,267 2,128 2,470 146 273 991 1,045 - (144)
	20,449 20,911

Page 21 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 10 – Significant Items

Significant items are those items where their size and nature is considered significant to the financial report. Such items included within the consolidated results for the period are detailed below.

Included within profit of disposal of asset Profit on sale of King of the Hills and Kailis Included within net foreign exchange Effect of foreign exchange movements on US borrowings(1) Unrealised foreign exchange gains(2) Foreign exchange loss on USD debt repayments(3) Total significant items for continuing operations – pre tax Total significant items for continuing operations – post tax	Consolidated Period ended 31 Dec 2015 $’000 Period ended 31 Dec 2014 $’000 14,858 - (10,214) (46,490) 17,742 39,715 (5,462) -	Consolidated Period ended 31 Dec 2015 $’000 Period ended 31 Dec 2014 $’000 14,858 - (10,214) (46,490) 17,742 39,715 (5,462) -
		Period ended 31 Dec 2014 $’000
		-
		(46,490)
		39,715
		-
	2,066	(6,775)
	16,924	(6,775)
	17,548	(6,775)

(1) Effect of foreign exchange movements on US borrowings

The Group hedges the foreign exchange exposure of its US dollar functional currency Pacific assets against its US dollar denominated borrowings. Per AASB 121 the ineffective component must be recognised in the Consolidated Income Statement. Additionally, the unrealised foreign exchange movement on the US dollar denominated borrowing not in a hedging relationship is recognised in the Consolidated Income Statement.

(2) Unrealised foreign exchange gains.

The movement represents the unrealised gains on Australian and US denominated intercompany loans and third party balances reflected within the Consolidated Income Statement per AASB 121.

(3) Realised fx gain/(loss) on US debt.

Represents the amount of FX gain/(loss) on the buy back of US notes and Red Kite loan repayments.

Page 22 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 11 – Income tax

Income tax expense Under/(over) provision in respect of prior years Income tax expense for continued and discontinued operations	Consolidated Period ended 31 Dec 2015 $’000 Period ended 31 Dec 2014 $’000 23,028 8,564 493 (1,825)
	23,521 6,739

Note 12 – Cash and cash equivalents For the purpose of the Consolidated 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(1) Term Deposits(2) Total cash and cash equivalents	Consolidated 31 Dec 2015 $’000 30 June 2015 $'000 58,492 18,871 42,000 58,000
	100,492 76,871

(1) Cash at bank at 31 December 2015 invested “at call” was earning interest at an average rate of 2.2% per annum (30 June 2015: 2.2% per annum). Cash at bank excludes restricted cash of $1,377,000, which is reported as part of trade and other receivables.

(2) The deposits at 31 December 2015 were earning interest at rates of between 2.69% and 2.91% per annum (30 June 2015: rates of between 2.35% and 2.97% per annum). At 31 December 2015, the average time to maturity was 46 days (30 June 2015: 50 days).

Note 13 – Interest bearing liabilities Current Secured Lease liabilities Loans from other entities (net of transaction costs) Non-Current Secured Lease liabilities Senior secured notes (net of transaction costs) Loans from other entities (net of transaction costs)	Consolidated 31 Dec 2015 $’000 30 June 2015 $'000 2,101 3,809 22,046 48,619	Consolidated 31 Dec 2015 $’000 30 June 2015 $'000 2,101 3,809 22,046 48,619
		30 June 2015 $'000
		3,809
		48,619
	24,147	52,428
	887 243,709 24,494
		1,450
		248,621
		44,462
	269,090	294,533

The AUD:USD exchange rate as at 31 December 2015 was 0.7285 (30 June 2015: 0.7713)

Page 23 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 14 – Contributed equity

Ordinary shares fully paid	Parent entity 31 Dec 2015 30 June 2015 Shares Shares 495,102,525 495,102,525	Parent entity 31 Dec 2015 30 June 2015 $’000 $’000 887,216 887,216

Note 15 – Accumulated losses

Movements in accumulated losses were as follows:

Note 15 – Accumulated losses Movements in accumulated losses were as follows:
Balance at start of the period Transferred from share based payment reserve (a) Profit attributable to members of the Company Balance at end of the period(1)	Consolidated 31 Dec 2015 $’000 30 June 2015 $'000 (697,351) (737,442) - 409 77,448 39,682
	(619,903) (697,351)

(1) The 30 June 2015 comparative information discloses the movement for the year ended 30 June 2015.

(a) Share based payment reserve transfers to accumulated losses

No performance rights expired during the period ended 31 December 2015 (30 June 2015: $409,000).

Accounting standards preclude the reversal through the Income Statement for amounts which have been booked in the share based payments reserve for options and rights which satisfy service conditions but do not vest due to market conditions.

Note 16 – Subsequent events

The Directors are not aware of any matter or circumstance that has arisen since the end of the financial period that, in their opinion, has significantly affected or may significantly affect in future years the Company’s operations, the results of those operations or the state of affairs.

Page 24 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

Note 17 – Financial instruments

This note provides information about how the Group determines fair values of various financial assets and financial liabilities.

a) Fair value of the Group’s financial assets and liabilities that are measured at fair value on a recurring basis:

The Group has financial assets measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these assets are assessed.

							Relationship of
	Fair value		as at			Significant	unobservable
Financial				Fair Value	Valuation technique	unobservable	inputs to fair
assets/liabilities	31/12/15	30/06/15		hierarchy	and key inputs	input	value
Available for
sale financial					Quoted bid price in
assets (shares)	$70,000		$66,000	Level 1	an active market	N/A	N/A

b) Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required)

Except as detailed in the following table, the Directors consider that the carrying amounts of financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values.

Financial liabilities held at amortised costs - Loans from other entities(1) - Senior secured notes(2)	Dec 2015 Carrying Amount $’000 Net Fair Value $’000 48,902 48,432 247,628 244,636 296,530 293,068	June 2015
		Carrying Amount $’000 Net Fair Value $’000
		97,238 94,593
		254,088 252,620
		351,326 347,213

(1) Loans from other entities exclude $2,362,000 (June 2015: $4,157,000) of capitalised transaction costs.

(2) The senior secured note amount excludes $3,522,000 (June 2015: $4,920,000) of capitalised transaction costs and $397,000 (June 2015: $547,000) discount on notes.

Page 25 of 30

ST BARBARA LIMITED AND ITS CONTROLLED ENTITIES INTERIM FINANCIAL REPORT For the half-year ended 31 December 2015

DIRECTORS' DECLARATION

In the Directors’ opinion:

• (a) the financial statements and notes set out on pages 12 to 25 are in accordance with the Corporations Act 2001, including:

• i) complying with Australian Accounting Standard 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 2015 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.

==> picture [99 x 41] intentionally omitted <==

Bob Vassie

Managing Director and CEO

Dated at Melbourne this 23[rd] day of February 2016

Page 26 of 30

INTERIM FINANCIAL REPORT

==> picture [498 x 706] intentionally omitted <==

----- Start of picture text -----

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF ST BARBARA LTD
Independent auditor report
Set text colour to white after inserting the audit report. Two pages are requiredInsert KPMG review report white font
----- End of picture text -----

Page 27 of 30

INTERIM FINANCIAL REPORT

==> picture [497 x 702] intentionally omitted <==

Page 28 of 30

INTERIM FINANCIAL REPORT

CORPORATE DIRECTORY

BOARD OF DIRECTORS

T C Netscher Non-Executive Chairman R S Vassie Managing Director & CEO K J Gleeson Non-Executive Director D E J Moroney Non-Executive Director

STOCK EXCHANGE LISTING

Shares in St Barbara Limited are quoted on the Australian Securities Exchange Ticker Symbol: SBM

SHARE REGISTRY

Computershare Investment Services Pty Ltd GPO Box 2975 Melbourne Victoria 3001 Australia

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

COMPANY SECRETARY

R R Cole

AUDITOR

KPMG 147 Collins Street Melbourne Victoria 3000 Australia

REGISTERED OFFICE

Level 10, 432 St Kilda Road Melbourne Victoria 3004 Australia

Telephone: +61 3 8660 1900 Facsimile: +61 3 8660 1999 Email: melbourne@stbarbara.com.au Website: www.stbarbara.com.au

Page 29 of 30

INTERIM FINANCIAL REPORT

==> picture [212 x 65] intentionally omitted <==

ABN 36 009 165 066

==> picture [118 x 31] intentionally omitted <==

Page 30 of 30