LEGEND MINING LIMITED — Interim / Quarterly Report 2007

Jan 21, 2007

Appendix 5B

$Rule 5.3$

$\mathbf{I}$

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 2006

Consolidated statement of cash flows

			Current quarter	Year to date
Cash flows related to operating activities			\$A'000	$(12 \text{ months})$
				\$A'000
1.1	Receipts from product sales and related debtors		18	59
	1.2 Payments for (b) development (c) production	(a) exploration and evaluation	(2,146)	(5, 842)
		(d) administration	(349)	(1,348)
1.3	Dividends received
1.4	Interest and other items of a similar nature received		84	230
1.5	Interest and other costs of finance paid			(988)
1.6	Income taxes paid
1.7	Other
	Sale of Gold from Mill clean			450
	DoIR rent refunds on tenement application
	withdrawals			367
			(2, 393)	(7,072)
	Net Operating Cash Flows
	Cash flows related to investing activities
1.8	Payment for purchases of:	(a)prospects
		(b)equity investments		(125)
1.9	Proceeds from sale of:	(c) other fixed assets		(203)
		(a)prospects
		(b) equity investments (c)other fixed assets	220	231
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Repayment of Performance Bond Deposits			3,145
	Non refundable deposit on proposed sale of
	Joint Venture Interest			11
			220	3,059
	Net investing cash flows
1.13	Total operating and investing cash flows (carried forward)		(2,173)	(4,013)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(2, 173)	(4,013)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	5,002	15,735
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings		(3,000)
1.18	Dividends paid
1.19	Other
	Application monies for Rights Issue		386
	Payment of costs of Rights Issue		(452)
	Broker fees on Share Issue	(139)	(139)
	Net financing cash flows	4,863	12,530
	Net increase (decrease) in cash held	2,690	8,517
1.20	Cash at beginning of quarter/year to date	6,235	408
1.21	Exchange rate adjustments to item 1.20
		8,925	8,925
1.22	Cash at end of quarter

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	221
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

$N/A$

$2.2$ 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 \$A'000
3.1	Loan facilities	3,145	3.145
3.2	Credit standby arrangements	≖

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	909
$4.2^{\circ}$	Development	MA
	Total	909

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	541	1,220
Deposits at call 5.2	8,384	5,015
Bank overdraft 5.3
Other (provide details) 5.4
Total: cash at end of quarter (item 1.22)	8,925	6,235

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	E57/484	Surrendered	100%	$0\%$
6.2	Interests in mining tenements acquired or increased	E53/1217	Granted	$0\%$	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 security (see note	Amount paid up per security (see note 3)
				$3)$ (cents)	(cents)
7.1	Preference *securities
7.2	(description) Changes during
	quarter
	(a) Increases through issues
	(b) Decreases
	through returns of capital, buy-
	backs,
	redemptions
7.3	+ Ordinary	924,115,651	924,115,651		Fully Paid
	securities
7.4	Changes during
	quarter (a) Increases
	through issues	62,551,222	62,551,222	8.0	Fully Paid
	(b) Decreases
	through returns of capital, buy-
	backs
7.5	+ Convertible
	debt securities
7.6	(description) Changes during
	quarter
	(a) Increases
	through issues (b) Decreases
	through
	securities
	matured, converted
7.7	Options			Exercise price	Expiry date
	(description and	15,000,000		20.0	20.04.2007
	conversion factor)	2,000,000 1,500,000		10.0 30.0	07.02.2008 30.07.2009
		286,934,885	152,734,885	4.0	31.07.2008
7.8	Issued during
	quarter			u,
7.9	Exercised during quarter	51,222	51,222	4.0	31.07.2008
7.10	Expired during
	quarter		u.
7.11	Debentures (totals only)	$\tilde{\phantom{a}}$
7.12	Unsecured
	notes (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).

	This statement does give a true and fair view of the matters disclosed.
	Anthony Walsh
Sign here:	Date: 22 January 2007
	(Director/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 6.1 and 6.2.
• $\mathfrak{Z}$ 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive 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.

$\frac{1}{100000000000000000000000000000000000$

⁺ See chapter 19 for defined terms.