LEGEND MINING LIMITED — Capital/Financing Update 2006

Jul 19, 2006

20 July 2006

Manager Company Announcements ASX

Via ASX Online

Dear Sir

COMPLETION OF ISSUE OF SECURITIES UNDER PROSPECTUS DATED 6 JUNE 2006. CONVERSION OF CONVERTIBLE NOTE, EXERCISE OF OPTIONS AND GRANT OF OPTIONS

We refer to our letter dated 6 June 2006 in which we enclosed the application for quotation and new issue announcement for

• $\mathbf{1}$ 152,859,440 ordinary shares to be issued at 4 cents per share fully paid and 152.859.440 listed options expiring 31 July 2008 exercisable at 4 cents to be issued free under Legend Mining Limited' (the "Company") prospectus dated 6 June 2006.
• $\overline{2}$ . 250,000,000 ordinary shares resulting from
• The conversion by Yandal Investments Pty Ltd of the \$5,000,000 $2.1$ convertible note into 125,000,000 ordinary shares and 125,000,000 options exercisable at 4 cents each expiring 31 May 2009; and
• $2.2$ The immediate exercise of these 125,000,000 options into 125,000,000 ordinary shares.
• 132,500,000 unlisted options expiring 31 July 2008 exercisable at 4 cents 3. approved by shareholders on 30 May 2006.

The Company wishes to advise that the abovementioned ordinary shares and options have been allotted and issued today.

Yours sincerely

$M_{ub}$ of

Mark Wilson Managing Director Legend Mining Limited

Level 2/640 Murray Street West Perth 6005 Telephone: 9212 0600 Facsimile: 9212 0611 P.O. Box 626, West Perth 6872 WWW.legendmining.com.au ABN: 22 060 966 145