LEGEND MINING LIMITED — Interim / Quarterly Report 2006

Apr 26, 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")

31 March 2006

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter \$A'000	Year to date (3 months) \$A'000
1.1	Receipts from product sales and related debtors	11	11
1.2	(a) exploration and evaluation Payments for	(1, 185)	(1,185)
	(b) development
	(c) production
	(d) administration	(323)	(323)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	43	43
1.5	Interest and other costs of finance paid	(166)	(166)
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(1,620)	(1,620)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects
	(b) equity investments
	(c) plant & equipment	(83)	(83)
1.9	(d)mine ppty & dvmt 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	3,145
	Non refundable deposit on proposed sale of Joint
	Venture Interest	11	11
	Net investing cash flows	3,073	3,073
1.13	Total operating and investing cash flows (carried
	forward)	1.453	1.453

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows
	(brought forward)	1,453	1,453
	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
	Net financing cash flows
	Net increase (decrease) in cash held	1,453	1,453
1.20	Cash at beginning of quarter/year to date	408	408
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1,861	1,861

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	154
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 An Environmental bond Security Facility totalling \$3,145,000 was approved by Macquarie Bank Ltd on the 28 December 2005, This facility is secured by equity provided by Yandal Investments Pty Ltd and Mr Mark Creasy. As a result the Environmental Security Deposits of \$3,145,000 were repaid in this period.
• $2.2$ 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 \$A'000
3.I	Loan facilitíes	(a) 3,000 (b) 3,145	(a) 3,000 (b) $3,145$
-3.2	Credit standby arrangements	w

Note

(i). The \$3,000,000 loan referred to in $3.1(a)$ was drawn down on the 15 November 2005 and full disclosure details are contained in the announcement to the Australian Stock Exchange on the 16 November 2005.

(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 this Appendix 5B report.

Estimated cash outflows for next quarter

	Total	900
4.2	Development	w
4.1	Exploration and evaluation	900
		\$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 SA'000
Cash on hand and at bank 5.1		1,844	391
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)	1,861	408

$+$ 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	E57/0523 P57/0665 P57/0666 E57/0167	Surrendered 3 March 06 Surrendered 3 March 06 Surrendered 3 March 06 Surrendered 3 March 06	100% 100% 100% 100%	$0\%$ $0\%$ $0\%$ $0\%$
6.2	Interests in mining tenements acquired or increased	Nil	Nil	Nil	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 $3)$ (cents)	Amount paid up per security (see note 3) (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	308,578,322		Fully paid
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs
7.5	+ Convertible debt securities (description)	1 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 (description and conversion factor )	2,350,000 15,000,000 50,000 2,000,000 1,500,000	ú. u. u, u,	Exercise price 22.0 20.0 20.0 $I0.0$ 30.0	Expiry date 30.05.2006 20.04.2007 30.07.2007 07.02.2008 30.07.2009
7.8	Issued during quarter		u.
7.9	Exercised during quarter

⁺ See chapter 19 for defined terms.

7.10	Expired during quarter	w	$\overline{\phantom{a}}$
7.11	Debentures (totals only)	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$
7.12	Unsecured notes (totals only)	w	$\overline{\phantom{a}}$

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 give a true and fair view of the matters disclosed.

$2\rho$ ma $\sum$

Sign here:

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

Print name: Andrew Chapman...................................

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.
• Issued and quoted securities The issue price and amount paid up is not required in 3 items 7.1 and 7.3 for fully paid securities.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive $\overline{4}$ 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.