LEGEND MINING LIMITED — Capital/Financing Update 2005

Sep 11, 2005

ASX Announcement 12 September 2005

Clarification of Today's Announcement

1. Gidgee Gold Project Drilling Results

As clarification of Legend Mining Ltd's ("Legend") ASX announcement of 12 September 2005 hole co-ordinates, azimuths and dip information for the reverse circulation ("RC") and rotary airblast and aircore ("RAB/AC") drilling are included in Tables 1 and 2 below.

The locations of the collars of these holes are shown on Figure1 (attached) and for clarification purposes, Figures $2 - 6$ of that release are also attached.

Hole	Prospect	North	East	Dip	Azimuth	From	Ŧо	Interval	Grade
Number						(m)	(m)	(m)	$(g/t \text{ Au})$
$GDC135*$	Swift	114739.1	43107.7	-50	250	78	87	9	2.9
$GDC136*$	Swift	114738.4	43112.8	-60	250	193	196	3	15.9
$GDC137*$	Swift West	114774.2	42923.0	-70	250	82	84	2	6.5
$GDC137*$	Swift West					89	124	35.	2.9
$GDC139*$	Swift	114813.5	43079.8	-50	250	115	119.	4	3.7
$GDC140*$	Swift	114813.7	42922.0	-70	250	36.	39	3	10.5
GDC141	Swift	114818.8	43191.8	$-70$	250	254	258	4	3.9
GDC142	Emu Feather 114915.6		42809.4	-60	250	17	19	2	3.0
GDC144	Emu Feather	115094.9	42914.6	-50	250	41	44	3	2.6
GDC146	Premium	115092.2	42695.4	-60	250	264	268	4	3.4
GDC148	Premium	115331.5	42744.2	-52	254	104	120	16.	3.7
GDC159	Premium	115050.3	42709.3	-60	250	228	248	20	8.3
GDC 161	Premium	115369.8	42716.4	$-57$	250	60	64	4	8.1
GDC172	Swift	114719.2	43119.3	-80	250	86	98	12	3.1
$GDC173**$	Premium	115320.0	42810.2	-55	250	136.	144	8	5.1

Table 1: Recent significant RC drilling results from Gidgee.

* 4 metre composite samples (30gm Fire Assay) previously reported on 29 July 2005, now reported as 1m samples (50gm Fire assay). **Assays awaited from 180-220 metres depth. All holes drilled from surface (~520RL). Local grid co-ordinates shown as per plan attached.

Hole Number	Prospect	North	East	From (m)	Tо (m)	Interval (m)	Grade $(g/t \text{ Au})$
CCB001	Central Corridor	114668.1	42702.6	104	112	8	3.45
CCB025	Central Corridor	114083.6	42862.3	28	32	4	1.79
CCB026	Central Corridor	114070.1	42894.6	44	48	4	1.47
CCB030	Central Corridor	114094.7	42543.1	52.	56	4	2.07
CCB043	Central Corridor	113966.9	42590.5	52	56.	4	1.10
CCB059	Central Corridor	113855.5	42597.0	68	72	4	4.00
CCB070	Central Corridor	113805.4	42443.9	72	76	4	1.29
CCB098	Central Corridor	113437.2	42557.5	44	48	4	1.09

Table 2: Recent significant RAB and Aircore drilling results from Gidgee.

Note: Only recent 4 metre composite samples +1 g/t Au shown in table. All +0.5 g/t Au results to be reported at end of the Quarter. All holes drilled vertically. Local grid co-ordinates shown as per plan attached.

2. Mt Gibson Gold Project - Exploration Target Potential

As clarification of Legend's announcement of 12 September 2005 regarding the sulphide target at Mt Gibson:

Legend stated in that release, "the Mt Gibson deposit is open at depth, with the deepest hole (prior to Barrick Australia drilling in 2003/04) intersecting 22m at 5.12g/t Au from 313 metres downhole. Given the strike extent of 7 km and the likelihood of multiple steeply northplunging shoots, the deposit could contain several million ounces of high-grade gold mineralisation hosted within stringer and massive sulphides".

This statement has been based on the strong geological similarities between the Cadillac Shear Zone (and the Bousquet-LaRonde + 10 million ounce deposit) in Canada and the Mt Gibson Shear Zone in Western Australia. Both the Bousquet-LaRonde and Mt Gibson deposits are similar with respect to host rock lithologies, alteration styles, high gold grades, presence and nature of base metal sulphides, interpreted geometry of the plunging lodes intersected and overall structural setting.

Where they differ is that Bousquet-LaRonde has been drill tested extensively to 3,000 metres below surface, and at Mt Gibson, some 95% of all the drilling is shallower than 120 metres from surface. Past production and current mineral resources remaining at Mt Gibson total approximately 1.7 million ounces of gold.

Legend advises the following amended statement:

"Given the strike extent of 7km and the likelihood of multiple steeply north-plunging shoots, the Company is targeting resources up to 10 million ounces of high-grade gold mineralisation, of similar grades to Bousquet-LaRonde (ie $5-10$ g/t Au) hosted within stringer and massive sulphides at Mt Gibson".

The potential quantity and grade is conceptual in nature and there has been insufficient exploration at Mt Gibson to define a sulphide Mineral Resource and it is uncertain if further exploration will result in determination of a sulphide resource of the above magnitude."

Legend considers that the down plunge extent of the Mt Gibson sulphide bodies has been inadequately tested by downhole EM and drilling. Legend is proposing an exploration budget of \$0.5 million for geophysics and drilling at Mt Gibson over the next 12 months.

Dermot Ryan Executive Director 12 September 2005

The information relating to exploration and results from Gidgee and Mt Gibson in this report is based on data compiled by Mr Donald Thomson, a Member of the AusIMM and an employee of Legend Mining Ltd. Mr Thomson has sufficient relevant experience in the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and consents to the inclusion in this report of the information in the form and context in which it appears.

Level 5-50 Colin Street West Perth Western Australia 6005 PO Box 626 West Perth Western Australia 6872 EMAR, legend@legendmining.com.au

TELEPHONE +61 8 9322 3700 FACSIMILE + 61 8 9322 3800 ABN 22 060 966 145 WWW.legendmining.com.au

Figure 2

Figure 3

PO Box 626 West Perth Western Australia 6872 EMAR, legend@legendmining.com.au

Level 5 50 Colin Street West Perth Western Australia 6005 TELEPHONE +61 8 9322 3700 FAC51MILE + 61 8 9322 3800 ABN 22 060 966 145 WWW.legendmining.com.an

Figure 5

Level 5 50 Colin Street West Perth Western Australia 6005 TELEPHONE +61 8 9322 3700 FAC51MILE + 61 8 9322 3800 PO Box 626 West Ferth Western Australia 6872 EMAIL legend@legendmining.com.au ABN 22 060 966 145 WWW.legendmining.com.an

Figure 6