ST BARBARA LIMITED — Share Issue/Capital Change 2010

Oct 12, 2010

St Barbara Limited ACN 009 165 066

Level 14, 90 Collins Street, Melbourne VIC 3000 Locked Bag 9, Collins Street East, Melbourne VIC 8003 Tel +61 3 8660 1900 Fax +61 3 8660 1999 www.stbarbara.com.au

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Voluntary Share Top-Up and Share Sale Facilities for small shareholders

The Company is offering small shareholders a voluntary mechanism to topup or sell down their share holding in St Barbara, free from transaction costs. The offer expires at 5.00pm (Melbourne time) on 5 November 2010.

To be eligible to participate, shareholders must have held St Barbara shares with a market value of less than A$2,000 as at 7.00pm (Melbourne time) on Wednesday 6 October 2010, as well as having a registered address in Australian or New Zealand (“Eligible Shareholders”). Based on a closing price on 6 October 2010 of A$0.425 per share, this equates to 4,705 shares or less per holding.

Full details of the Voluntary Share Sale Facility and the Top-Up Facility (together, the “Facilities”), including all forms, are being mailed out to Eligible Shareholders today.

As announced on 7 September 2010, following completion of the Facilities, St Barbara is planning to undertake a share consolidation (subject to share holder approval to be sought at the Company’s Annual General Meeting on 18 November 2010) and an unmarketable parcel share sale facility.

Top-Up Facility

The Top-Up Facility will be available to shareholders who have holdings with a value of less than A$2,000 (i.e. 4,705 shares or less) as at 7.00pm (Melbourne time) on Wednesday, 6 October 2010 and who have a registered address in Australia or New Zealand. These holders will be able to increase their holdings to a total value of A$5,000 (inclusive of the value of their existing holding) free of all brokerage charges.

Such shareholders will be required to complete and return a “Buy Instruction Form” to St Barbara’s Share Registry.

Voluntary Share Sale Facility

The Voluntary Share Sale Facility will be available to shareholders who have holdings with a market value of less than A$2,000 (i.e. 4,705 shares or less) as at 7:00pm (Melbourne time) on Wednesday, 6 October 2010 and who have a registered address in Australia or New Zealand. These holders will be able to sell their holdings free of all brokerage charges.

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Such shareholders who wish to sell all or part of their shareholding, will be required to complete and return a “Sale Instruction Form” to St Barbara’s Share Registry.

Shareholders who wish to retain their shares need take no further action.

Sale and Purchase Price

When the Offer Period ends at 5.00pm (Melbourne time) on 5 November 2010, the Company will review and collate all Buy and Sale Instruction Forms from shareholders and determine if there is a need to buy or sell shares on market in order to meet shareholder requests. The price paid or, in the event that there is a net share sale of shares, the price received, by St Barbara’s nominated broker, E.L. & C Baillieu Stockbroking Ltd (“E.L. & C Baillieu”) will be the price determined for all transactions. This is referred to as the Clearing Price. St Barbara will bear all brokerage and handling fees related to sales and purchases under the Facilities.

The last date for the “Sale Instruction Form” and/or “Buy Instruction Form” in connection with the Facilities to be received at the St Barbara Limited Share Registry is 5.00pm (Melbourne time) on 5 November 2010.

Important note: Following the completion of the Facilities, St Barbara will be implementing an unmarketable parcel share sale facility. Shareholders who hold less than $500 market value of shares, will be asked to advise St Barbara if they wish to retain their shares. The shares of those shareholders who do not advise that they wish to retain their shares by the date specified will be sold by St Barbara and proceeds from the sale will be remitted to the shareholder free of all brokerage charges. A letter will soon be sent to shareholders with details of the unmarketable parcel share sale facility.

Shareholder Queries

Shareholders with queries regarding how the Voluntary Share Sale Facility or Top-Up Facility work should contact St Barbara’s nominated broker, E.L. & C Baillieu on 1800 339 521.

Shareholders wishing to consolidate multiple holdings or with questions regarding their shareholding should contact the St Barbara Share Registry Call Centre on 1300 653 935 (within Australia) or on +61 3 9415 4356 (outside Australia).

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Ross Kennedy Company Secretary St Barbara Limited 13 October 2010

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