LEGEND MINING LIMITED — Capital/Financing Update 2012

Oct 28, 2012

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29 October 2012

ASX Announcement

ASX:LEG

**LEGEND

/ POSCO MOU UPDATE**

Legend Mining Limited (“Legend” ) announces that further to the Memorandum of Understanding (“MOU”) with POSCO Africa (Pty) Ltd (“POSCO”) announced to the ASX on 16 February 2012, that Legend now believes a joint venture agreement is unlikely to be agreed with POSCO during the term of the MOU due to the current conditions of the iron ore market.

Legend Managing Director Mr Mark Wilson said: “Negotiations with POSCO over the past nine months have cemented a strong relationship between the two companies.

Current market conditions are beyond our control and we will continue to explore all commercial opportunities in relation to the project including those with POSCO.”

Under the MOU, which is non binding and non exclusive, both parties agreed to use their best endeavours to give effect to their mutual intention to negotiate and agree a joint venture in relation to Legend’s Ngovoyang Iron Ore project during the twelve months following entry into the MOU.

Negotiations have been ongoing since February and have progressed significantly.

Visit www.legendmining.com.au for further information and announcements.

For more information: Mr Mark Wilson Managing Director Legend Mining Limited (08) 9212 0600