ST BARBARA LIMITED — Management Reports 2005

Aug 23, 2005

St Barbara Mines Limited

ASX SHAREHOLDERS REPORT

Enquiries regarding this report may be directed to:

Eduard Eshuvs Managing Director & CEO

St Barbara Mines Limited ACN 009 165 066 Level 2, 16 Ord Street West Perth WA 6005 Telephone -61 8 9476 5555 Facsimile $+61894765500$ Email perth@stbarbara.com.au Website www.stbarbara.com.au

Initial High Grade Drilling Results from Gwalia Deeps, Tarmoola & Marvel Loch

SUMMARY

Gwalia Deeps, Leonora - initial drilling has intersected 18.9m @ 23.5g/t gold at a depth of 1,583m down hole.

Tarmoola, Leonora – initial results include 41m @ 2.7g/t gold from 88m, 11m @ 7.5g/t gold from 59m and 7m @ 9.3g/t gold from 115m.

Marvel Loch, Southern Cross - initial drilling results include 6m @ 85.1g/t gold, 12m @ 25.8g/t gold and 3m @ 42.5g/t gold which are up to 50m below current mine development.

The above are the initial results from the drilling programs which commenced recently on properties acquired by the Company earlier this year and confirm the opportunity to increase and improve the status of the mineral resources for Gwalia Deeps, Tarmoola and Marvel Loch. Discussion follows.

It is the Company's intention to include future drilling results in routine quarterly reports unless ASX. from time to time require a circumstances special announcement.

Eduard Eshuvs Managing Director & CEO

24 August 2005

DISCUSSION

Gwalia Deeps, Leonora

The first drill hole in the current drilling program at Gwalia Deeps, Leonora, has intersected 18.9m @ 23.5g/t at a depth of 1,583m down hole. Gwalia Deeps is the extension of gold mineralisation mined up to 1963, to a depth of 1,073m.

This intersection occurred in diamond drillhole GWDD7E, which was drilled as a daughter hole, from a hole drilled in 2001. The gold mineralisation was intersected between previous intersections GWDD7C and GWDD11 of 21m @ 9.8g/t from a depth of 1,553m and 12.2m @ 13.7g/t from 1,632m respectively, as shown in Table 1.

Drill hole GWDD7E intersected the Gwalia Deeps gold mineralisation within 15m of the target position and essentially equidistant between the previously drilled holes GWDD7C and GWDD11, which were approximately 100m apart. The grade of 23.5g/t for the new intersection is above the grade of the previous intersections and well above the inferred resource average grade of 7.4g/t and the average historical underground production grade of 11.4g/t.

The drilling at Gwalia is being conducted with the objective of improving the status of some of the current inferred resources, of 7.2Mt @ 7.4g/t for 1.72Moz gold to indicated resources, and in conjunction with mining studies, could establish a basis for estimating probable reserves.

A second deep drilling rig started last week to accelerate the program.

Hole	ml	$\cdots$m	From	dihm	Au g/t
GWDD7E	5972	9271	1583.1	18.9	23.5
-GWDD7C *	5996	9228	1553.0	21.O	9.8
CWDDII"	5936	9226.	1632.4	12.2	1 T 7

Table 1: Gwalia Deeps Diamond Drilling Results, August 2005

1989 - Johann Stoff, Amerikaansk politiker († 1989)

Note that holes GWDD7C and GWDD11 were drilled by the previous owner in 2000 and 2001 respectively. These are the closest intercepts to GWDD7E and are shown for comparison purposes only. North and east coordinates shown are the Gwalia Deeps intercept positions, not the collar positions of the drill holes.

Tarmoola, 35kms north of Leonora

Drilling results at Tarmoola, on the western flank of the 2km long existing, open pit include $41m \oplus 2.7g/t$ from 88m, $11m \otimes 7.5g/t$ from 59m and 7m $\otimes$ 9.3g/t from 115m, as shown in Tables 2.1 and 2.2.

Gold mineralisation occurs within granite on the western flank of the open pit, which has been intersected in a number of previous drillholes. However, until now there has been insufficient drilling for a reliable resource estimate to be made in this area. The current program's objective of 40,000m of reverse circulation drilling is to better define the gold mineralisation within granite, and if successful, to improve the status and increase the current measured, indicated and inferred resources of 55.9Mt @ 1.2g/t for 2.23Moz gold.

Two drilling rigs are carrying out this work.

	North	-East				Width
Arrest CountyHole	..(m)	Profile Service(m)	Dip.	Azimuth	the companyFrom	The control(m)	Au g/t
TLRC0002	10075	49643	-60	360	115		9.3
TLRC0006	9856	49482	-60	360	114		3.3
TLRC0007	9799	49440	-60	360	59	11	7.5
TLRC0011	9982	49402	-60	360	224	19	1.1

Table 2.1: Tarmoola RC Drilling Results, August 2005 - ROM Pad Target

$\mathscr{L}_{\mathbb{Z}[\mathbb{Z}]}$ , and the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of the contract of t

Table 2.2: Tarmoola RC Drilling Results, August 2005 - Saddle Extension Target

	$^{\circ}$ orth	East				いちさま
.Hole	..(m)	.m	1.1.1Dip	Azimuth	Provident1.1.1.1From	Carlos Address(m)	Au g/t
TLRC0019	10025	50010	-54	360	82	12	3.8
TLRC0021	9990	50035	-53		16		15.3
TLRC0024	10060	49907	-74	112	88	41	2.7

Marvel Loch, Southern Cross

The Southern Cross operations are based on production from the Marvel Loch open pit and underground. The mining of the open pit was recently completed as scheduled and ore from that pit will be replaced with that from Hercules 12kms to the south of Marvel Loch where open pit mining commenced recently.

Underground production from Marvel Loch is currently being sourced from the Undaunted Lode at the northern end and from development of New Lode at the southern end.

The initial drilling results from testing the depth extensions of Undaunted include 6m @ 85.1g/t, 12m @ 25,8g/t and 3m @ 42.5g/t, as shown in Table 3 below, which confirms continuity of high grade mineralisation to at least 50m below current mine development.

Underground drilling at Marvel Loch is being conducted to test for extensions at Undaunted, Sherwood, Exhibition and New Lodes, which are high grade lodes extending below the Marvel Loch open pit. The drilling is being conducted with the objective of converting the inferred resources to indicated resources which could then provide the basis, in conjunction with mining studies, to establish probable reserves. Drilling with two underground rigs is continuing.

			Top of Intersection
	North	East	$R_{\rm H}$	Depth Below	- Width
Hole	ml	m	(m)	Surface (m)	(m)	Au $g/t$
UGC066	10807	4751	666	334		46.9
UGC066	10811	4738	661	339		22.2
UGC070	10821	4745	636	364	12	25.8
UGC074	10796	4762	661	339		85.1
UGC075	10786	4753	655	345		42.5

Table 3: Marvel Loch Diamond Drilling Results, August 2005 - Undaunted Target

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Peter Thompson, General Manager Exploration, a full time employee of St Barbara and a Competent Person as defined by the Code. It is included in this report with the written consent of Mr Thompson.