ST BARBARA LIMITED — Management Reports 2004

Jan 26, 2004

ACN 009 165 066

$\bf ASX$ SHAREHOLDERS REPORT

Enquiries regarding this report may be directed to:

Stephen W. Miller

Executive Chairman Telephone (08) 9476 5555 Overseas +61 8 9476 5555 $\alpha r$ Colin G. Jackson Investor Relations Telephone 0417 929 107

St Barbara Mines Limited Level 2, 16 Ord Street West Perth Western Australia 6005 Telephone (08) 9476 5555 Overseas +61 8 9476 5555

Dollar values in this report are Australian dollars unless otherwise stated.

Paddys Flat Development-Prohibition Resource Increase

Down plunge drilling at Prohibition and the adjoining Red Spider have increased the resource inventory 170 percent to 270,000 ounces of gold.

As part of the feasibility study on Paddys Flat, the Company has completed a 30 hole (9,700 metre) drilling programme, as a result of which the combined resource estimate for Prohibition and Red Spider at a 1 g/t cut-off is now 2.35 million tonnes at 3.6 g/t for a contained 270,000 ounces (70 percent Indicated and 30 percent Inferred).

The new resource is 170 percent higher than the previous estimate and now includes Red Spider a new, well-defined structure parallel to and shallower than Prohibition. At a $4$ g/t cut-off, the estimate is 0.77 million tonnes at 5.2 g/t for $128,000$ ounces, compared to 80,000 ounces previously.

The resource estimate and new block model have been completed by Cube Consulting Pty Ltd using Ordinary Kriging.

The recent drilling results and the geological setting suggest that both Prohibition and Red Spider will continue to depth.

Prohibition/Red Spider – one of three major deposits in the Paddys Flat system, which also includes Vivian -Consols (101,000 ounces) and Mickey Doolan $(326,000$ ounces) – is planned to be developed via a decline which will also provide access to the high grade Vivian – Consols.

The new resource is currently being studied for preliminary mine planning purposes.

A preliminary revision to the economic model incorporating the Prohibition/Red Spider resource indicates significant improvements to cashflows and return on assets.

Paddys Flat Stage 1 development, subject to board approvalsis scheduled to proceed in April 2004.

ren W. Miller E⊀ecutive Chairman

27 January 2004

ACN 009 165 066

						Mineralised		Intercept		Lode
Hole No.	North	East	Dec	Azm(Grid)	Depth(m)	From(m)	To(m)	Width(m)	Au(g/t)	System
PHRC 80	2700	3608	$\mbox{-}50$	90	310	$4,1$	$4\sqrt{3}$	$\overline{2}$	7.73	Red Spider
						$100,$	102	2	1.57	Red Spider
						141	144	3	1.24	Red Spider
						182	184	2	3.31	Prohibition
						192	196	4	4.09	Prohibition
						209	212	3	$\boldsymbol{8.04}$	Prohibition
						226	230	4	$3.00,$	Prohibition
						234	236	$\overline{c}$	$3.08,$	Prohibition
						244	252	8	11.26	Prohibition	W
PHRC 78	2685	3611	$-50$	90	382	38	$40,$	$\overline{\mathbf{c}}$	3.52	Red Spider
						47	50	3	3.83	Red Spider
						$118,$	120	2	6.63	Red Spider
						198	204	6	5.93	Prohibition
						228	230	2	2.42	Prohibition	W
						235	237	2	3.20	Prohibition	W
						248	272	24	3.43	Prohibition	W
					inc	255	259	4	6.85		W
					and	265	268	3	7.23		W
						288	289	1	4.35	Prohibition	W
						293	297	4	3.64	Prohibition	W
						306	307	1	5.85	Prohibition	W
						309	317	8	2.76	Prohibition	W
						324	327	3	7.92	Prohibition	W
						330	345	$15,$	2.76	Prohibition	W
						351	358	7	$3.50,$	Prohibition	W
						361	363	2	2.48	Prohibition	W
PHRC 70	2680	3610	$-61$	90	316	$48,$	50	2	2.20	Red Spider
						52	55	З	3.85	Red Spider
						128	129	1	$2.10,$	Red Spider
						214	218	4	14.24	Prohibition	W
PHRC 79	2660	3621	$-50$	90	160	38	40	2	3.29	Red Spider
						61	63	2	7.25	Red Spider
						73	75	2	2.32	Red Spider
						113	115	$\overline{2}$	2.83	Red Spider
						122	123	1	9.20	Red Spider
						154	156	2	6.59	Red Spider
PHRC 85	2660	3613	$-62$	90	358	15	20	5	5.00	Red Spider
						26	28	2	1.57	Red Spider
						35	38	з	1.47	Red Spider
						40	41	1	1.46	Red Spider
						45	46	1	1.93	Red Spider
						51	52	1.	2.50	Red Spider

ACN 009 165 066

Hole No.			Dec			Mineralised		Intercept		Lode
	North	East		Azm	Depth	From	To	Width	Au	System
				(Grid)	(m)	(m)	(m)	(m)	(g/t)
						63	69	6	2.58	Red Spider
					inc	63	66	3	4.50
						134	138	$\boldsymbol{4}$	14.18	Red Spider
						216	223	7	4.68	Prohibition
					inc	219	220	1	23.30
						269	275	6	3.87	Prohibition	W
						284	287	3	3.30	Prohibition	W
						307	317	10	1.96	Prohibition	W
					inc	313	317	4	3.18		W
						320	321	1	2.35	Prohibition	W
						325	330	5	3.66	Prohibition	W
						336	344	8	2.21	Prohibition	W
						346	352	6	1.26	Prohibition	W
						353	355	$\overline{\mathbf{2}}$	8.13	Prohibition	W
PHRC 82	2580	3629	$-64$	90	392	16	$18,$	2	3.07	Red Spider
						55	57	$\overline{c}$	2.85	Red Spider
						97	102	5	3.22	Red Spider
						150	151	1	$3.50,$	Red Spider
						168	172	з	4.00	Red Spider
						253	258	5	4.75	Prohibition
						261	262	1	5.60	Prohibition	W
						320	324	4	1.58	Prohibition	W
						327	328	1	6.35	Prohibition	W
						372	377	5	10.96	Prohibition	W
					inc	373	374	1	47.10	Prohibition	W
PHRC 76	2540	3630	$-55$	90	370	24	26	2	2.50	Red Spider
						29	31	2	2.65	Red Spider
						35	63	28	1.92	Red Spider
					inc	45	61	16	2.49	Red Spider
						93	94	1	3.65	Red Spider
						149	150	$\mathbf 1$	7.75	Red Spider
						153	159	6	1.41	Red Spider
						167	168	1	2.20	Red Spider
						183	185	$\overline{\mathbf{c}}$	7.20	Red Spider
						250	251	$\mathbf{l}$	1.49	Prohibition
						282	284	$\overline{\mathbf{c}}$	4.05	Prohibition	W
						$317,$	318	1	3.25	Prohibition	W
						364	365	1	2.20	Prohibition	W
PHRC 75	2500	3628	$-65$	90	420	88	90	$\overline{\mathbf{c}}$	2.50	Red Spider
						103	105	$\overline{\mathbf{c}}$	3.33	Red Spider
						161	162	$\mathbf{I}$	$3.60,$	Red Spider
						184	186	$\overline{\mathbf{c}}$	6.25	Red Spider
						247	$248,$	1	1.21	Prohibition
						259	264	5	2.85	Prohibition	W
						277	280	3	5.82	Prohibition	W
						362	363	Ī.	$3.55,$	Prohibition	${\mathsf W}$

ACN 009 165 066

						Mineralised		Intercept		Lode
Hole No.	North	East	Dec	Azm(Grid)	Depth(m)	From(m)	To(m)	Width(m)	Au(g/t)	System
						396	397	1	1.55	Prohibition	W
PHRC 62	2500	3628	-69	90	408	97	112	15	2.52	Red Spider
						160	162	$\overline{2}$	3.98	Red Spider
						177	180	3	1.52	Red Spider
						240	251	$11,$	0.96	Red Spider	W
						268	279	$11$	1.13	Prohibition	W
						282	293	11	1.54	Prohibition	W
PHRC 83	2465	3638	$-67$	90	402	32	34	2	$0.90,$	Red Spider
						60	65	5	$1.13,$	Red Spider
						$71,$	78	7	1.30	Red Spider
						86	102	${\bf 16}$	1.62	Red Spider
						107	120	13	2.74	Red Spider
					inc	112	118	6	4.18	Red Spider
						190	192	$\overline{\mathbf{2}}$	4.31	Red Spider
						215	216	1	1.37	Red Spider
						222	223	L	1.06	Red Spider
						263	266	3	1.51	Prohibition	W
						270	273	3	3.20	Prohibition	W
						282	285	3	9.20	Prohibition	W
						337	338	1	1.72	Prohibition	W
						374	375	1	1.42	Prohibition	W
PHRC 84	2420	3668	-69	90	450	$10,$	12	$\mathbf{2}$	0.67	Red Spider
						26	35	9	1.82	Red Spider
						108	110	2	4.23	Red Spider
						141	414	Dolerite Dyke

Notes

• $\mathbf{1}$ True widths appear to be about 80% of intercept lengths
• $\overline{2}$ W Indicates an intercept based on sampling of wet RC drill returns
• 3 All intercepts are based on 50 gm fire assaying
• $\overline{4}$ All intercepts are outside previously estimated resource block

Information in this report relating to mineral resources conforms to the reporting requirements of the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (The JORC Code). It is based on information compiled by Mr Ted Coupland of Cube Consulting Pty Ltd, a Competent Person as defined by the Code. It is included in this report with his consent.

Section Facing North

Prohibition - Blockmodel > 0 g/t

Composite Longsection

Section Facing West