RNS Number:0011Q
St. Barbara Mines Limited
22 September 2003




ASX SHAREHOLDERS
REPORT


Debt Retirement and Board Expansion

Resource Capital Funds II LP (Denver, Colorado, USA), a provider of credit and a
supporter since January 2002, has agreed to convert its entire term facility
($7.3 million) into equity, thereby extinguishing all secured debt from the St
Barbara balance sheet.

The debt to equity swap will result in the issue to Resource Capital Funds of 92
million shares at 8 cents per share, taking its shareholding from a current 7.9
percent to approximately 23 percent of an enlarged capital base.  The
transaction is subject to shareholder approval at the annual general meeting -
the annual report and notice of meeting (including an explanatory statement on
all resolutions) will be mailed out shortly.  The transaction is also subject to
Resource Capital Funds obtaining various approvals including the Foreign
Investment Review Board.

The Board will also appoint two new directors, one of whom will be a
non-executive Chairman, in recognition of best corporate governance practice,
separating the Chairman and Managing Director roles.  Mr Stephen Miller will
continue as Group Managing Director to lead the recommencement of the gold
production phase accelerated by the debt reduction.

The strengthened balance sheet will facilitate opportunities to progress the
development of Paddys Flat high grade orebodies and the re-engineered Paulsens
project through St Barbara's 88.3 percent owned subsidiary, Taipan Resources NL.





Stephen W. Miller
Executive Chairman

22 September 2003

Enquiries regarding this report may be directed to:
Stephen W. Miller Executive Chairman
Telephone            (08) 9476 5555
Overseas            +61 8 9476 5555
or
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.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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