RNS Number:2098Q
St. Barbara Mines Limited
26 September 2003



ASX SHAREHOLDERS REPORT

Paddys Flat Development
- Prohibition zones confirmed

Drilling, primarily designed for geotechnical, resource model validation and
metallurgical testwork purposes, has validated the geological model constructed
and recorded intercepts better than predicted by the model.

The Paddys Flat development plan envisages a conventional 5 metre x 4.5 metre
decline development to exploit a resource of 635,000 tonnes at 8.0 g/t for
162,500 ounces.  The majority of the decline and lateral development is
positioned in the competent banded iron formation host of the Prohibition
orebody.

As an integral component of the definitive planning process, three holes have
been completed into Prohibition principally to finalise mining, and process
design parameters for the partially refractory ore.

The current Prohibition resource extends 70 metres vertically and 100 metres in
a southerly down plunge direction below the 120 metre deep open pit.
Intersections recorded to date (shown on the table below and diagram at http://
www.stbarbara.com.au/UPLOADED/SBM000402.pdf) are on average 20 percent higher in
gram-metres than model predictions.

A 13 hole (4,400 metre) RC drill programme down plunge is planned for October
2003.

Notwithstanding that these results need to be fully evaluated, the potential for
a technically and economically viable operation at 30,000 tonnes per month
remains on plan for the 2004/05 production schedule.



Stephen W. Miller
Executive Chairman



26 September 2003



Drill Results
Hole No.                       Depth               Intersection               Grade
                              (metres)               (metres)                 (g/t)
PH61                            182                     4.0                    4.87
                                193                     6.0                    7.53
                                204                     4.0                    2.04
                                239                     6.0                    8.05
PH3                             133                     1.8                    4.85
                                136                     1.7                    4.93
                                142                     9.2                    5.41
                                165                     5.3                    4.01
                                194                     2.0                    3.58
                                210                     0.6                    6.45
PH2                             148                     3.7                    5.26
                                165                     4.5                    7.04
                                170                     4.6                    7.26
                                176                     2.9                    4.96

True intercepts widths approximately 80% of downhole intercept lengths.

Resources (as at 30 June 2003)
                                        Indicated                                 Inferred
Ore body                    tonnes        grade        ounces        tonnes        grade        ounces
                             '000          g/t                        '000          g/t
Prohibition                   257          6.4         52,900          51           5.9          9,700
Vivians/Consols               154          9.2         45,300          173          9.9         54,600

Project total (indicated and inferred)  635,000 tonnes at 8.0 g/t (162,500
ounces)

Information in this report relating to ore 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 Graham Miller, FAusIMM, a Competent Person as defined by the Code.  It is
included in this report with his consent.





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.


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