RNS Number:5270R
St. Barbara Mines Limited
31 October 2003


ASX SHAREHOLDERS REPORT

Paulsens Project commitment

St Barbara subsidiary, Taipan Resources NL, has received commitments to finance
the Paulsens Project re-engineered as a high grade shallow underground mine at
substantially reduced capital cost.

This will be facilitated by St Barbara accepting equity for the outstanding
inter-company loan to Taipan ($17.6 million) together with a $21 million Taipan
equity capital raising which is subject to shareholder approval at their Annual
General Meeting.

The funding arrangements comprise a debt-for-equity swap whereby St Barbara will
be issued 352 million Taipan shares at 5 cents per share in full satisfaction of
the $17.6 million intercompany loan.  Paterson Ord Minnett has acted as Lead
Manager to a  share placement (on normal terms and conditions) which, together
with an underwritten Share Purchase Plan, will result in the aggregate issue of
420 million Taipan shares, also at 5 cents per share.

Paulsens has been re-engineered significantly reducing the capital associated
with the previous high strip ratio open cut proposal.  A decline, to an initial
depth of 200 metres, is scheduled to deliver 675,000 tonnes at 12.2 g/t to a
toll mill facility.

Two drill programmes will commence as soon as practical after settlement of the
Taipan equity capital raising.  A twenty hole shallow programme will confirm the
decline route and define four stope outlines for the generation of a major
sample to confirm mining and metallurgy parameters.  A 39 hole programme will
target the down-dip extensions to the orebody below 200 metres vertical.  Two
holes drilled in late 2001 indicated structural and mineralisation continuity at
450 metres vertical.

St Barbara, as a consequence of the aforementioned financing, will dilute from
an 88.3 percent to a 54.9 percent interest in the expanded capital of Taipan.

In summary, the debt-for-equity swap is the catalyst for the re-establishment of
growth in the St Barbara gold production profile with the Paulsens Project fully
funded into production reaching an annualised rate of 100,000 ounces within
fifteen months of the January 2004 commitment.


Stephen Miller
Chairman

31 October 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.


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