LEGEND MINING LIMITED — Capital/Financing Update 2003

May 8, 2003

The Directors of Legend are pleased to announce a proposal which will include new placement issues in place of the current Prospectus for Entitlement issue to shareholders, and a restructure of the Company current debt.

Withdrawal of Prospectus

The Directors have today resolved to withdraw the Prospectus dated the 19^th February 2003 "Entitlement Issue to Shareholders". The share registry has been directed to refund all funds to shareholders who lodged entitlement applications.

Placements

Legend has arranged an initial placement of 5.8 million shares (under the 15% placement rule) at 1.5 cents per share to raise \$87,000. The shares will be issued to clients of Montagu stockbrokers within the next 14 davs.

A further placement, subject to shareholders approval at a General Meeting of shareholders to be held in June 2003, of up to 45 million shares to raise up to \$675,000 will be completed by Montagu Stockbrokers within 7 days of the General Meeting.

These funds will be used to pay creditors and loans, and to provide working capital and exploration funds (as outlined below).

Restructure of Debt

Both placements are subject to satisfactory agreement being reached with Yandal Investments P/L and Lamead Holdings P/L in respect of the terms and conditions for repayment of loans owing to them. Preliminary discussions have taken place and the Directors expect to be able to satisfactorily restructure these loans.

Montagu Corporate Pty Ltd have been appointed exclusive corporate consultants for a period of 12 months.

Future Plans

Following the raisings outlined above Legend intends initially carrying out a targeted exploration programme at its promising Carlow Castle gold project with the objective of upgrading its current high grade resource.

An appropriate notice of General Meeting will be posted to all shareholders this month giving full details of the proposals

Hamony thround.

Murray McDonald DIRECTOR

9th May 2003