LEGEND MINING LIMITED — Interim / Quarterly Report 2005

Jan 30, 2005

$Rule 5.3$

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

LEGEND MINING LIMITED

ABN

22 060 966 145

Quarter ended ("current quarter")

31 December 2004

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'000	Year to date $(12$ months) \$A'000
1.1	Receipts from product sales and related debtors		5,108	24,699
1.2	Payments for	(a) exploration and evaluation (b) development	(548)	(2,252)
		(c) production (d) administration	(5,910) (575)	(20, 684) (1,726)
1.3 1.4	Dividends received	Interest and other items of a similar nature received	45	176
1.5 1.6	Interest and other costs of finance paid Income taxes paid		(16)	(311)
1.7	Other (provide details if material)
	Net Operating Cash Flows		(1, 896)	(98)
1.8	Cash flows related to investing activities Payment for purchases of:	(a)prospects (b) equity investments $(c)$ plant & equipment (d) mine ppty $&$ dvmt	(2) (44) (628)	(2) (383) (5,210)
1.9	Proceeds from sale of:	(e) Gidgee acquisition (a)prospects (b) equity investments (c)other fixed assets		(1,300) 18
1.10 1.11	Loans to other entities Loans repaid by other entities
1.12	Other - Performance Bond Term Deposit			(2,057)
	Net investing cash flows		(674)	(8,934)
1.13		Total operating and investing cash flows (carried forward)	(2,570)	(9,032)

$+$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(2,570)	(9,032)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other – Rental $\&$ Interest $-$ Capital raising costs Net financing cash flows	$\blacksquare$ 5,000 (533) (3) (82) 4,382	4,782 7,000 (1,489) (6) (244) 10,043
1.20 1.21	Net increase (decrease) in cash held Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,812 1,258	1,011 2,059
1.22	Cash at end of quarter	3,070	3,070

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter SA'000
1.23	Aggregate amount of payments to the parties included in item 1.2	89
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions Directors salary and consultancy fees

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available	1 Amount used
-SA'000	$\sqrt{SA'000}$

⁺ See chapter 19 for defined terms.

$\overline{a}$

	Loan facilities	w
3.2	Credit standby arrangements	w

Estimated cash outflows for next quarter

	Total
		1,500
4.2	Development	$\overline{\phantom{a}}$
4.1	Exploration and evaluation	1,500
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter SA'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	3,053	1,241
5.2	Deposits at call	17	17
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	3,070	1,258

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
-6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased	P53/1199		$0\%$	100%

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per	Amount paid up per
				security (see note	security (see note 3)
				$3)$ (cents)	(cents)
7.1	Preference	u,	j.
	*securities
	(description)
7.2	Changes during	$\overline{\phantom{a}}$		u,	L
	quarter
	(a) Increases through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,
	redemptions
7.3	+ Ordinary	170,633,328	170,633,328
	securities
7.4	Changes during	$\blacksquare$	u,
	quarter (a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs
7.5	+ Convertible	$\tilde{\phantom{a}}$	w
	debt securities
	(description)
7.6	Changes during	$\blacksquare$
	quarter
	(a) Increases through issues
	(b) Decreases
	through
	securities
	matured,
	converted
7.7	Options			Exercise price	Expiry date
	(description and conversion
	factor) LEGA1	2,350,000		22c	30.05.2006
	LEG0	36,174,207	36,174,207	$_{15c}$	30.04.2005
	LEG7	250,000		20c	30.07.2007
	LEG8	1,500,000		30c	30.07.2007
7.8	Issued during	$\overline{a}$	u.	L	L
	quarter
7.9	Exercised during		u,	w	L
	quarter
7.10	Expired during		u.	u.	μ.
	quarter
7.11	Debentures		w
	(totals only)

⁺ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

anout formal

Sign here:

...................................... (Director/Company secretary)

Print name: Murray McDonald

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• $\overline{3}$ Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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⁺ See chapter 19 for defined terms.