ST BARBARA LTD

5 Dec 2002resource reserve update● NeutralMajor

PGM Ventures exercised its option, paying US$250,000 for an initial 25% of the Simberi mining lease, and the two companies signed a joint venture agreement; this continues the October 2002 option deal. PGM can reach 51% by spending a further US$1.5 million by May 29, 2004 and arranging financing. Nord Pacific says it intends to keep a 49% interest by raising funds for its share of equity (about US$3.5 million), otherwise it can be diluted to a minimum 15% carried interest. Completion still needs TSX Venture Exchange approval.

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2 Oct 2002resource reserve update● NeutralMajor

Nord Pacific signed an option agreement with PGM Ventures covering its gold resources on the Tabar Islands (Simberi Island) in Papua New Guinea. PGM can earn an initial 25% of Mining Lease 136 for US$250,000 (plus a $125,000 nonrefundable fee), up to 51% by spending $1.5 million and arranging financing, and up to 50% of the wider exploration licence with $2 million of spending; Nord Pacific's stake cannot be diluted below 15%. The filing also says major shareholder Nord Resources verbally objected to the deal.

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