LEGEND MINING LIMITED — Capital/Financing Update 2006

Jun 5, 2006

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 177/96. Origin: Appendix 5. Amended 177/98, 179/99, 177/2000, 30/9/2001, 11/3/2002.

Name of entity

Legend Mining Limited

ABN

22 060 966 145

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1	+ Class of + securities issued or to be issued		Ordinary Shares
		2.	Listed Options
			3. Unlisted Options
2.	Number of $\pm$ securities issued or to		402,859,440 Ordinary Shares
	be issued (if known) or maximum	2.	152,859,440 Listed Options
	number which may be issued	3.	132,500,000 Unlisted Options
3	Principal terms of the *securities		1. Nil
	(eg, if options, exercise price and	2.	152,859,440 Listed Options exercisable
	expiry date; if partly paid		at \$0.04 each expiring on 31July 2008
	securities, the amount outstanding and due dates for payment; if convertible securities, the	3.	132,500,000 Unlisted Options exercisable at \$0.04 each expiring 31
	conversion price and dates for conversion)		July 2008

⁺ See chapter 19 for defined terms.

• $\Delta$ Do the *securities rank equally in all $1.$ Yes respects from the date of allotment 2. No. Only upon exercise of the options with an existing "class of quoted converting to Ordinary shares will they *securities? rank equally. 3. No. Only upon exercise of the options If the additional securities do not converting to Ordinary shares will they rank equally, please state: rank equally. • the date from which they do the extent to which they $\bullet$ participate for the next dividend. (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment $\overline{5}$ Issue price or consideration \$0.04 per share. $\mathbf{1}$ $2. N/A$ $3. N/A$ Purpose of the issue Non-renounceable rights issue on the 6 $\mathbb{L}$ (If issued as consideration for the basis of I new share for every 3 shares acquisition of assets, clearly identify held at the record date as per the those assets) Prospectus. 2. Non-renounceable rights issue on the basis of 1 attaching listed option for each new share issued under the rights issue as per the Prospectus. 3. 7,500,000 unlisted options issued as part of the Underwriting Fee: 100,000,000 Early Conversion Options issued to Yandal: 25,000,000 Early Conversion Options issued to Directors. $\tau$ Dates of entering $\frac{4}{3}$ securities into 14 July 2006 uncertificated holdings or despatch of certificates
• *class of Number and all on ASX *securities quoted (including the securities in clause 2 if applicable)

8

Number		*Class
	861,437,762	Ordinary Shares.
	152,859,440	Options exercisable at \$0.04 cents each expiring 31 July 2008

		Number	+ Class
9	Number and + class of aIl *securities not quoted on ASX (including the securities in clause 2 if applicable)	15,000,000	Options exercisable at \$0.20 each expiring 20 April 2007
		2,000,000	Options exercisable at \$0.10 each expiring 7 February 2008
		50,000	LEG7 - Employee Options exercisable at \$0.20 each expiring 30 July 2007
		1,500,000	LEG8 - Directors Options exercisable at \$0.30 expiring 30 July 2009
		7,500,000	Underwriting Options exercisable at \$0.04 each expiring 21 July 2008
		125,000,000	Early Conversion Options exercisable at \$0.04 each expiring 31 July 2008
10	Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)		The company does not anticipate paying dividends in the foreseeable future

⁺ See chapter 19 for defined terms.

Part 2 - Bonus issue or pro rata issue

11	security holder approval Īs required?	No
12	Is the issue renounceable or non- renounceable?	Non-renounceable
13	Ratio in which the "securities will be offered	I New Share plus one Attaching Option for every 3 Existing Shares
14	Class of securities to which the offer relates	Ordinary Shares
15	*Record determine date to entiflements	15 June 2006
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?	No.
17	Policy for deciding entitlements in relation to fractions	Rounded up to the nearest whole share
18	Names of countries in which the entity has *security holders who will not be issue sent new documents Note: Security holders must be told how their entitlements are to be dealt with.	N/A
	Cross reference: rule 7.7.
19	Closing date for receipt οf acceptances or renunciations	6 July 2006

20	Names of any underwriters	Findlay & Co Stockbrokers (Underwriters) Pty Ltd
21	Amount of any underwriting fee or commission	6% on any amount raised under the issue and 7,500,000 Underwriting Options exercisable at \$0.04 each expiring 31 July 2008
22.	Names of any brokers to the issue	Findlay & Co Stockbrokers (Underwriters) Pty Ltd
23.	Fee or commission payable to the broker to the issue	6% on any amount raised under the issue and 7,500,000 Underwriting Options exercisable at \$0.04 each expiring 31 July 2008
24	of any handling fee Amount payable to brokers who lodge acceptances or renunciations on behalf of *security holders	N/A
25.	If the issue is contingent on *security holders' approval, the date of the meeting	N/A
26.	Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled	21 June 2006
27.	If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders	6 June 2006
28	Date rights trading will begin (if applicable)	N/A
29.	Date rights trading will end (if applicable)	N/A
30	How do "security holders sell their entitlements in full through а broker?	N/A
31	How do "security holders sell part of their entitlements through a broker and accept for the balance?	N/A

⁺ See chapter 19 for defined terms.

• 32 How do *security holders dispose $N/A$ of their entitlements (except by sale through a broker)?
• 33 *Despatch date

14 July 2006

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities (tick one)

All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

(If the additional securities do not form a new class, go to $43$ )

Tick to indicate you are providing the information or documents

35	If the "securities are "equity securities, the names of the 20 largest holders of the additional securities, and the number and percentage of additional securities held by those holders
36	If the "securities are "equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1.000$ $1,001 - 5,000$ $5,001 - 10,000$ $10,001 - 100,000$ $100,001$ and over
37	A copy of any trust deed for the additional *securities
(now go to 43)

$+$ See chapter 19 for defined terms.

Entities that have ticked box 34(b)

• 38 Number of securities for which ^*quotation is sought
• $30 -$ Class of *securities for which quotation is sought
• 40 Do the *securities rank equally in all respects from the date of allotment with an existing "elass of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do $\blacksquare$
• the extent to which they participate for the next dividend. (in the case of a trust. distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
• $41$ Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and *class of all *securities quoted on ASX (including the securities in clause 38)

Number	+ Class

(now go to $43$ )

⁺ See chapter 19 for defined terms.

All entities

Fees

43	Payment method (tick one)
		Cheque attached
		Electronic payment made Note: Payment may be made electronically if Appendix 3B is given to ASX electronically at the same time.
		Periodic payment as agreed with the home branch has been arranged Note: Arrangements can be made for employee incentive schemes that involve frequent issues of securities.

Ouotation agreement

• *Quotation of our additional *securities is in ASX's absolute discretion. ASX may $\mathbf{1}$ quote the *securities on any conditions it decides.
• $\overline{\mathcal{L}}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation. $\blacksquare$
• An offer of the "securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any ٠ applications received by us in relation to any *securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the *securities be quoted.
• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted.

$+$ See chapter 19 for defined terms.

• $\overline{3}$ We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.
• We give ASX the information and documents required by this form. If any $\overline{4}$ information or document not available now, will give it to ASX before +quotation of the *securities begins. We acknowledge that $\overline{ASX}$ is relying on the information and documents. We warrant that they are (will be) true and complete.

$\mathcal{A}_{\mathsf{open}}$

(Company secretary)

Sign here:

Date: 6 June 2006

Print name: Andrew Chapman

$\overline{\text{+ See chapter 19 for defined terms.}}$