LEGEND MINING LIMITED — Capital/Financing Update 2007

May 27, 2007

ule 2.7, 3.10.3, 3.10.4, 3.10.5

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 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Legend Mining Limited

ABN

22 060 966 145

We (the entity) give ASX the following information.

amount outstanding and due dates

securities, the conversion price and

payment;

dates for conversion)

if *convertible

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 fully paid Ordinary shares fully paid 2. Unquoted Options issued under ESOP2 3.
2	Number of $\beta$ securities issued or to be issued (if known) or maximum number which may be issued	60,111 Ordinary shares fully paid 1. 2. 200,000 Ordinary shares fully paid 3. 3,450,000 Unquoted Options issued under ESOP2
3	Principal terms of the "securities (eg, if options, exercise price and expiry date: if nartly naid "securities, the	Fully paid ordinary shares 2. Fully paid ordinary shares film accessed Construction Concert հ المولم المراجعات

Unquoted Options issued under 3. ESOP2 exercisable at 8 cents each expiring on 22 May 2012 and vesting on 22 May 2008.

for

⁺ See chapter 19 for defined terms.

4	Do the securities rank equally in all respects from the date of allotment with an existing class of quoted *securities?	I. 2. 3.	Yes Yes.	Yes upon exercsie of the options
	If the additional securities do not rank equally, please state: the date from which they do the extent to. which they participate for the next dividend, case of (in the 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.
5	Issue price or consideration	1. 2. 3.	options Nil	4 cents each – Exercise of Quoted options 4 cents each - Exercise of Unquoted
6.	Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets)	Exercise of Quoted options. 1. 2. Exercise of Unquoted options 3. Issued under Employee Share Option Plan No2 approved by shareholders on 15 May 2007
7	Dates of entering + securities into uncertificated holdings or despatch of certificates	1. 2.	28 May 2007 24 May 2007
8	and $\pm$ class Number $\sigma f$ aĦ *securities quoted on ASX. (including the securities in clause 2 if applicable)	Number 924,547,762 152,502,774		$+C$ lass Ordinary Shares 4 cent options expiring 31 July 2008

⁺ See chapter 19 for defined terms.

$\ddot{Q}$ Number and *class $\sigma$ f $|a|$ *securities not quoted on ASX (including the securities in clause 2 if applicable)

Number	*Class
2,000,000	7 February $2008 - 10$
	cent options
1,500,000	30 July $2009 - 30$ cent
	Directors options
7,500,000	31 July $2008 - 4$ cent
	Underwriting options
125,000,000	31 July $2008 - 4$ cent
	Early conversion
	options
1,500,000	31 July $2008 - 4$ cent
	Employee options
3,450,000	$22$ May $2012 - 8$ cent
	Employee options

10 Dividend policy (in the case of a $N/A$ trust, distribution policy) on the increased capital (interests)

Part 2 - DELETED – NOT APPLICABLE Part 3 - Ouotation of securities

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

• 34 Type of securities $(iick one)$
• Securities described in Part 1 $(a)$
• $(b)$

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

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

⁺ See chapter 19 for defined terms.

37 A copy of any trust deed for the additional *securities

Quotation agreement

• Ť *Ouotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\mathcal{L}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not $\bullet$ for an illegal purpose.
• There is no reason why those "securities should not be granted "quotation.
• An offer of the ⁺securities for sale within 12 months after their issue will $\bullet$ 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 $\bullet$ 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 $\bullet$ 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 $\bullet$ *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted.
• $\overline{3}$ 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 ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:

Date: 28 May 2007

Print name:

---

Company secretary

Tony Walsh

⁺ See chapter 19 for defined terms.