LEGEND MINING LIMITED — Capital/Financing Update 2004

Mar 16, 2004

ANNOUNCEMENT

Company Announcements Office Australian Stock Exchange Limited Level 8 Exchange Plaza 2 The Esplanade PERTH WA 6000

RE: PLACEMENT

Legend Mining Limited has placed with selected Institutional clients of KTM Capital Limited, up to 15 million fully paid ordinary shares in the company at 18 cents per share and with selected clients of Montague Stockbrokers Pty Ltd, up to 3 million fully paid ordinary shares in the company at 18 cents per share.

The funds raised (approximately \$3,240,000) will be used to pay Abelle Limited the final payment of \$1.3 million in respect of the recent acquisition of the Gidgee Gold Mine. This early payment takes advantage of a \$200,000 reduction if paid by 31 March 2004 and not 30 June 2004 (\$1.5 million).

The balance of the raising will be used as working capital to advance all aspects of Legend's operations, including underground and surface exploration. Pre-feasibility studies on the 300,000oz Wilson's gold resource, located within 12km of the mill, will be accelerated.

Yours faithfully

Harrey Bonnel.

Murray McDonald Managing Director 17 March 2003