LEGEND MINING LIMITED — Interim / Quarterly Report 2011

Oct 24, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Legend Mining Limited

	ABN 22 060 966 145 Consolidated statement of cash flows		Quarter ended (“current quarter”) 30 September 2011	Quarter ended (“current quarter”) 30 September 2011
			30 September 2011
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (9 months) $A’000
		73 (1,375) - - (98) - 13 (3) - 86		662 (5,093) - - (740) - 188 (19) - -
		(1,304)		(5,002)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 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 (provide details if material)  Dividends received  Refund of performance bonds Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (523) - - 251 - - 32 93		- - (531) - - 251 - - 75 93
		(147)		(112)
		(1,451)		(5,114)

• 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)	(1,451)	(5,114)
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 (provide details if material) Net financing cash flows	- - - - - -	360 - - - - -
	-	360
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	(1,451) 3,373 -	(4,754) 6,676 -
	1,922	1,922

1.22 Cash at end of quarter 1,922 1,922	1.22 Cash at end of quarter 1,922 1,922	1.22 Cash at end of quarter 1,922 1,922	1.22 Cash at end of quarter 1,922 1,922
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'000 109 -
1.25 Explanation necessaryfor an understandingof the transactions Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation. 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
		Item 1.23 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation.
	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

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standbyarrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

• $A’000

• 4.1 Exploration and evaluation 750 4.2 Development - 4.3 Production - 4.4 Administration 300 Total 1,050

Reconciliation of cash

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)	1,047	1,256
	875	1,950
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,922	3,373
Security deposits held for environmental bonds	1,389	1,389
Shares held in Independence Group Limited, Nemex Resources Limited and Pilbara Minerals Limited at cost	3,894	3,894
Total: cash, security deposits and other liquid assets held at cost at end of quarter	7,205	8,489

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
	E38/2616 E38/2617 E38/2618 E38/2619 E38/2620 EP187	- - - - - -	100% 100% 100% 100% 100% 90%	Nil Nil Nil Nil Nil Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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(descri ption) 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	1,740,350,801	1,740,350,801
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options(descripti on and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired/cancelled during quarter	2,400,000 9,000,000 800,000,000 191,250,000 199,750,000 30,000,000	- - - - - -	Exercise price 4.25 5.30 Nil 4.00 4.00 6.00	Expiry date 22 May 2012 16 December 2014 4 February 2015 4 February 2015 4 February 2015 21 December 2015
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement h a s been pre p ared under a ccounting p o licies whic h comply wi t h acc o unting stan d ards as defi n ed in the C o rporations A ct or other s tandards ac c eptable to ASX (see not e 5).

• 2 This statement d o es / ~~does not~~ * (delete o n e) give a true and fair vi e w of the m a tters disc l osed.

S i gn here: D ate: 25 Oc t ober 2011 (Company secretar y )

P r int name: Dennis Wilkins

Notes

• 1 The quarterly re p ort provide s a basis for i nforming t h e market ho w the entity’s acti v ities have b e en finance d for the past quarter and the effect o n its cash po s ition. An e ntity wanti n g to disclos e additional i nformation i s encourag e d to do so, i n a note or n o tes attache d to this repo r t.

• 2 The “Nature of i n terest” (ite m s 6.1 and 6.2) includes options in r e spect of int e rests in min i ng tenemen t s acquired, e xercised or lapsed during the report i ng period. I f the enti t y is involve d in a joint v e nture agreement and th e re are cond i tions prece d ent whi c h will chan g e its percen t age interest in a mining tenement, it should disc l ose the cha n ge of perce n tage interes t and conditions precede n t in the list r equired for items 6.1 a nd 6.2.

• 3 Issued and quoted securities The issue price and a m ount paid u p is not req u ired in ite m s 7.1 and 7. 3 for fully p a id securities .

• 4 The definitions i n , and provi s ions of, AA S B 6: Explo r ation for an d Evaluatio n of Min e ral Resour c es and AAS B 107: State m ent of Cash Flows apply to this repo r t.

• 5 Accounting Standards AS X will accept, for exampl e , the use of Internation a l Fin a ncial Repor t ing Standar d s for foreig n entities. If the standar d s used do n o t add r ess a topic, t he Australi a n standard o n that topic ( if any) mus t be complied with.

== == == = = ==

• S ee chapter 19 for defined ter m s.

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