SIGNIFICANT CHANGES IN THE  STATE OF AFFAIRS PRINCIPAL ACTIVITIES RESULTS OF OPERATIONS DIVIDENDS Signi fi  cant changes in the state of affairs of the consolidated  entity during the  fi  nancial year were as follows: The principal activities of St Barbara Mines Limited  and entities controlled by it (collectively known as the  consolidated entity) during the  fi  nancial year ended  30 June 2004, were gold production, gold and mineral  exploration, pastoral activities, and investment. The consolidated operating loss after tax for the year ended  30 June 2004 attributable to members of the Company was  $24,315,000 (2003: $32,733,000 loss). Commentary on the operations and the results of those  operations are set out below: Mining activity at Meekatharra was solely focussed on  treatment of the Paddys Flat low grade stockpiles.  These resources were depleted by mid-May. Mining and  haulage operations ceased in April and by the end of June  the process plant operations were suspended and prepared  for a 6 - 12 month program of general maintenance and  re-con fi  guration. A pre-feasibility evaluation of the Paddys Flat  Underground Project was completed, with all necessary  approvals received, allowing this project to proceed once  further reserves have been established. A review of all previous exploration activitites and evaluations are  required prior to any substantial capital expenditure. The Directors do not recommend the payment of a dividend. •  On 17 March 2004, the Company announced the sale  of a Demag Komatsu large face shovel. This resulted  in net proceeds of $2.1 million, which was to be used  for working capital. •  On 5 December 2003, the Company issued 35,000,000  fully paid ordinary shares to Ocean Resources Capital  Holdings Limited at a price of $0.08 per share to satisfy  unsecured convertible notes totalling $2.8 million. • 14,252,357 options exercisable at $0.1138. • 2,386,296 options exercisable at $0.2124; and • 485,953 options exercisable at $0.2086; • 257,857 options exercisable at $0.2125; •  On 28 November 2003, the Company issued the  following options with an expiry date of 24 May 2008  to RCF in satisfaction of the corporate debt facility fee: •  On 28 November 2003, the Company issued  95,684,932 fully paid ordinary shares to RCF funds  at a price of $0.08 per share in satisfaction of a  corporate debt of $7 million and interest of $654,795. •  On 31 October 2003, the Company announced that  its subsidiary, Taipan Resources NL (now NuStar  Mining Corporation Limited or “NuStar”) had  received commitments to  fi  nance the Paulsens Project.  This was facilitated by the Company accepting equity  of 352 million NuStar shares at $0.05 cents per share in  full satisfaction of the $17.6 million intercompany loan  between the Company and NuStar, together with the  placement of an additional 420 million NuStar shares  at $0.05 per share to raise $21 million of equity capital. The Company’s equity position in NuStar after these  transactions was 54.8% (previously 88.3%). •  On 22 September 2003, the Company issued 12,000,000  fully paid ordinary shares at $0.08 per share to raise  $960,000 (before issue expenses) for working capital. •  On 7 July 2003, the Company issued the following  options, with an expiry date of 7 January 2007, to RCF in satisfaction of the corporate debt facility fee: •  On 7 July 2003, the Company issued 15,910,922 fully  paid ordinary shares to Resource Capital Funds II L.P.  (RCF) at price of $0.0374 per share in satisfaction of interest of $595,068. • 5,834,004 options exercisable at $0.2125; • 594,308 options exercisable at $0.2086; • 2,918,376 options exercisable at $0.2124; and • 17,430,243 options exercisable at $0.1138. Production and  Sales Statistics 12 months  to  30 June 2004 12 months  to  30 June 2003 - Ore mined tonnes - 483,041 - Ore milled tonnes 1,711,300 2,284,599 - Head grade g/t 0.84 1.47 - Recovery % 82.2 89.7 - Gold  produced ounces 37,985 96,611 - Gold sold ounces 40,232 98,080 - Cash cost $/ounce 559 465 19