LEGEND MINING LIMITED — Capital/Financing Update 2004

May 27, 2004

Major Resource Drilling Programmes at Gidgee Gold Project

Legend Mining plans to spend up to \$500,000 during the next 4-6 weeks in an escalation of surface drilling programmes, to expand gold resources and reserves at its Gidgee Gold Project located 90 kilometres north of Sandstone in the central WA Goldfields. This follows on from Legend's recent success in discovering new high grade gold lodes at its Swan Bitter mine using two underground drill rigs.

Drilling will commence this weekend. Up to 6,000m is planned, of which almost half will be diamond core. Targets to be tested include extensions to the 92,000 ounce Kingfisher North resource, the deep lode system at Swan Bitter North, and shallow open pit resources at Eagles Peak, Specimen Well and Toedter. These are all within close trucking distance of Legend's 600,000tra Gidgee treatment plant, ranging from 1.5 to 45 kilometres. Haul roads are already established, from previous mining activities.

Two drill rigs will be utilised, a reverse circulation (RC) rig to confirm and extend known open pit resources and to establish pre-collars for deeper drilling, and a diamond drill rig which will carry out the initial phase of resource extension and confirmation at Kingfisher North and lode evaluation at Swan Bitter North.

RC holes on open pit resources will be up to 120m deep. Pit optimisation and production planning will be completed immediately after the drilling, with the objective of commencing open pit mining during July 2004. This will supplement the Swan Bitter underground ore feed to the Gidgee treatment plant, and is anticipated to increase gold production above the current 60,000oz per year rate.

Diamond drill holes will be up to 650m deep at Swan Bitter North, where previously reported drilling has recorded up to 5m at 9.84g/t Au from 208m downhole in JDWA233. It is anticipated that lode orientation and true thickness will be determined from this work, so that planning of underground development northwards can be advanced.

At Kingfisher North, drilling to 550m depth is designed to extend the previously reported high grade resource of 432,000t at 6.7g/t Au which is open along strike and at depth. Further drilling for resource optimisation and mine planning will depend on results.

Total gold production to date from the Gidgee project is in excess of 1.2 million ounces. Legend anticipates that these new resource drilling programmes will provide further resources and mine life for the project, which was acquired less than six months ago.