LEGEND MINING LIMITED — Interim / Quarterly Report 2009

Jan 28, 2010

Appendix 5B Mining exploration entity quarterly report

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

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LEGEND MINING LIMITED
ABN Quarter ended (“current quarter”)
22 060 966 145 31 December 2009
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A’000 (12 months)
$A’000
1.1 Receipts from product sales and related debtors 186 800
1.2 Payments for (a) exploration and evaluation (775) (1,749)
(b) development
(c) production - -
(d) administration (649) (1,694)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature received 68 280
1.5 Interest and other costs of finance paid (1) (30)
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (1,171) (2,393)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects (152) (152)
(b)equity investments (275) (5,505)
(c) other fixed assets - -
1.9 Proceeds from sale of: (a)prospects - -
(b)equity investments 2,044 7,597
(c)other fixed assets 19 525
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - 125
1,636 2,590
Net investing cash flows
1.13 Total operating and investing cash flows (carried 465 197
forward)
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• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	465	197
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 a) Proceeds from sale of APEX shares applied to withholding tax on share capital distribution Net financing cash flows	- - - - - (1)	- - - - - (10)
	(1)	(10)
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter (Note 1)	464 4,726 -	187 5,003 -
	5,190	5,190

Note 1: Total cash, security deposits and other liquid assets held at cost, at the end of the quarter $9,392,000 (see item 5).

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		82
		-
1.25 Explanation necessaryfor an understandingof 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 reportingentityhas an interest N/A	Explanation necessaryfor an understandingof the transactions
	Directors salary & consultancy fees.
	N/A
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	N/A

Financing facilities available

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000 - -	Amount used $A’000
		-
		-

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	700
	-
Total	700

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 $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	164	50
	5,026	4,676
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	5,190	4,726
Security deposits held for environmental bonds	1,389	1,389
Shares held in Independence Group Limited at cost	2,813	2,747
Shares held in Apex Minerals at cost	-	5,000
Total: cash, security deposits and other liquid assets held at cost, at the end of quarter	9,392	13,862

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	Nil		Nil	Nil
	P57/1244		0%	100%

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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	1,259,350,801	1,259,350,801	Nil	Fully Paid
	50,000,000	50,000,000	Nil	Fully Paid
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	2,400,000 200,000,000 9,000,000	- - -	Exercise price 4.25 4.00 5.30	Expiry date 22.05.2012 21.12.2015 16.12.2014
	200,000,000 9,000,000	- -	4.00 5.30	21.12.2015 16.12.2014
	-	-	-	-
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 29 January 2010 (Company secretary) Print name: Brett White.............................................

Notes

• 1 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.

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.

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 .

• 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.

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