LEGEND MINING LIMITED - Capital/Financing Update 2004

NEW DRILLING SUCCESS AT GIDGEE

Initial results from deep diamond drilling at Legend Mining's Gidgee Gold Project are extremely encouraging, and confirm the potential for significant additional resources adjacent to the Swan Bitter underground mine.

Results from the first hole include 4.80 metres at 8.17g/t gold, about 330 metres north of current underground workings at Swan Bitter in an area that has never been drilled at depth before. Hole JDWA243 is the deepest ever drilled from surface at Gidgee, as part of Legend's commitment to accelerated exploration.

The highly encouraging gold intercept is from 354.4m downhole, within a strongly altered and quartz veined mineralised corridor interpreted to be a northerly extension of the Swan Bitter – Butcherbird shear system. It is the first hole from surface to test north of the mine at this level, about 300m below surface.

It was targeted on possible depth and strike extension of a much shallower previously reported intercept of 5.00 metres at 9.84g/t gold from 208m downhole in JDWA233, collared about 350m to the south.

A second deep diamond hole is currently being drilled from the same location as JDWA243 at a steeper dip, to further investigate the mineralised corridor. Results from the Reverse Circulation precollar of JDWA244 include 13.0 metres at 2.01g/t gold from 140m downhole, including 2.0 metres at 6.85g/t gold from 150m. Core from this hole will be logged and analysed as drilling continues.

Two deep diamond holes have also been completed at Kingfisher North, successfully intersecting the target structures at up to 150 metres deeper than previous holes. The best intercept was 2.60 metres at 5.40g/t gold from 294.70m downhole in JDWA239.

Planned drilling is continuing and will be extended as a result of these very encouraging results.

Murray McDonald Director 10 August 2004

Hole	East	North	Hole Depth	From	Interval	Gold Grade
	(local grids)	(local grids)		(m)		(uncut)
Swan Bitter
JDWA243	20222.0	50388.5	666.4m	260.30	0.55m	10.56g/t
		and		269.40	2.00 _m	$2.03$ e/t
		and		301.60	0.40m	$10.72$ g/t
		and		354.40	4.80m	8.17g/t
JWDA244	20223.9	50385.9	156.0m	140.0	13.00m	2.01g/t
			(RC precollar)
		includes		149.0	4.0 _m	$4.18$ g/t
		includes		150.0	2.0 _m	$6.85$ g/t
JWDA233	20361.3	50066.8	435.0m	208.0	5.0 _m	$9.84$ g/t
Kingfisher North
JDWA239	4776.0	10764.4	321.1m	294.70	2.60 _m	5.40g/t
JDWA240	4629.5	10524.7	522.0m	526.30	1.00 _m	1.34g/t

Notes:

JWDA233 results previously reported.

At this stage, no estimate of true width is possible for the Swan Bitter intercepts as these are widely spaced holes in an area not previously drilled. True widths of the Kingfisher North intercepts are estimated to be approximately 70% of the downhole intervals.

Analyses by 200g Leachwell/AAS, Gidgee lab (JWDA239, 240, 243 half core; JWDA244 RC chips)

Information on exploration results contained in this report is based on data compiled by consulting geologist Mr Ian Cowden FAusIMM, CPGeo of Iana Pty Ltd. Mr Cowden has appropriate relevant experience to be considered as a Competent Person as defined in the JORC Code 1999 and consents to the inclusion in this report of the information in the form and context in which it appears.