LEGEND MINING LIMITED — Interim / Quarterly Report 2006

Jul 30, 2006

Appendix 5B

$Rule 5.3$

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")

30 June 2006

Consolidated statement of cash flows

Cash flows related to operating activities			Current quarter \$A'000	Year to date
				$(6$ months) \$A'000
1.1	Receipts from product sales and related debtors		21	32
1.2	Payments for	(a) exploration and evaluation	(742)	(1,927)
		(b) development (c) production
		(d) administration	(482)	(805)
1.3	Dividends received
1.4	Interest and other items of a similar nature received		17	60
1.5	Interest and other costs of finance paid		(248)	(414)
1.6 1.7	Income taxes paid Other
	Sale of Gold from Mill clean		437	437
		DoIR rent refunds on tenement application
	withdrawls		332	332
	Net Operating Cash Flows		(665)	(2,285)
1.8	Cash flows related to investing activities Payment for purchases of: (a) prospects
		(b) equity investments
		$(c)$ plant & equipment	(2)	(85)
1.9	Proceeds from sale of:	(a) prospects
		(b) equity investments (c) other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other
	Repayment of Performance Bond Deposits.			3,145
	Non refundable deposit on proposed sale of Joint Venture Interest			11
	Net investing cash flows		(2)	3,071
1.13	forward)	Total operating and investing cash flows (carried	(667)	786

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(667)	786
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other - Application monies for Rights Issue	389	389
	Net financing cash flows	389.	389
	Net increase (decrease) in cash held	(278)	1,175
1.20	Cash at beginning of quarter/year to date	1,861	408
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1,583	1,583

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 \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	145
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 & 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 $\rm N/A$
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used SA'000
-3.1	Loan facilitíes	3,000 (a)	(a) 3000
		3,145 (b)	(b) 3.145
3.2	Credit standby arrangements

Note

• The \$3,000,000 loan referred to in 3.1(a) was drawn down on the 15 November 2005 and full $(i)$ disclosure details are contained in the announcement to the Australian Stock Exchange on the 16 November 2005 and further advised on the 9 May 2006.
• $(ii)$ The \$3,145,000 facility referred to in 3.1(b) was approved by Macquarie Bank Ltd on the 28 December 2005 and full disclosure details were contained under the heading "Cash Position" in Item 4 of the December 2005 Quarterly Report released to the Australian Stock Exchange on the 31 January 2006, with the Appendix 5B report.

Estimated cash outflows for next quarter

w
2,150

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 SA'000
5.1	Cash on hand and at bank	1,583	1,844
5.2	Deposits at call		17
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,583	1,861

$+$ See chapter 19 for defined terms.

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	E47/0957 E47/0966 E47/0967 E47/1049 E53/1020 E57/517 E57/522 P53/1162 P57/1019 P57/1026 P57/697	Surrendered 3 April 06 Surrendered 3 April 06 Surrendered 3 April 06 Surrendered 3 April 06 Surrendered 26 June 06 Surrendered 26 June 06 Surrendered 26 June 06 Surrendered 26 June 06 Surrendered 26 June 06 Surrendered 26 June 06 Surrendered 26 June 06	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	$0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$
6.2	Interests in mining tenements acquired or increased	P57/871 Nil	Surrendered 26 June 06 Nil	100% Nil	$0\%$ Nil

$+$ 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 security (see note	Amount paid up per security (see note 3)
				$3)$ (cents)	(cents)
7.1	Preference *securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs,
	redemptions
7.3	+ Ordinary securities	458,578,322	458,578,322		Fully paid
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs
7.5	+ Convertible	1
	debt securities (description)	Secured Convertible Note (\$5,000,000 face value) 10% coupon rate expiring 10 November 2006
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options			Exercise price	Expiry date
	(description and conversion factor)	15,000,000 50,000 2,000,000 1,500,000	w	20.0 20.0 10.0 30.0	20.04.2007 30.07.2007 07.02.2008 30.07.2009
7.8	Issued during quarter		u.
7.9	Exercised during quarter
7.10	Expired during quarter	2,350,000	w	22.00	30.05.2006

⁺ See chapter 19 for defined terms.

7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to $\text{ASX}$ (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Anthony Walsh

Sign here:

...................................... (Company secretary)

Print name: Tony Walsh

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 $61$ and $62$
• 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.

⁺ See chapter 19 for defined terms.

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⁺ See chapter 19 for defined terms.