LEGEND MINING LIMITED — Interim / Quarterly Report 2012

Jul 22, 2012

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

	ABN22 060 966 145Consolidated statement of cash flows		Quarter ended (“current quarter”)30 June 2012	Quarter ended (“current quarter”)30 June 2012
			30 June 2012
Cash flows related to operating activities1.1Receipts from product sales and related debtors1.2Payments for(a) exploration & evaluation(b) development(c) production(d) administration1.3Dividends received1.4Interest and other items of a similar naturereceived1.5Interest and other costs of finance paid1.6Income taxes paid1.7Other (provide details if material)NetOperating Cash Flows		Current quarter$A’000		Year to date(6 months)$A’000
		200(1,446)--(598)-175---		206(3,112)--(1,158)-307(20)--
		(1,669)		(3,777)
Cash flows related to investing activities1.8Payment for purchases of: (a) prospects(b) equity investments(c) other fixed assets1.9Proceeds from sale of:(a) prospects(b) equity investments(c) other fixed assets1.10Loans to other entities1.11Loans repaid by other entities1.12Other (provide details if material)Dividends receivedRefund of performance bondsNet investing cash flows1.13Total operating and investing cash flows(carried forward)		--(99)1,000------		--(531)7,750-45--121,389
		901		8,665
		(768)		4,888

• 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)	(768)		4,888
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-		(71)
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) Share issue	-		(11)
	transaction costs
	Net financing cash flows	-		(82)
	Net increase (decrease) in cash held	(768)		4,806
1.20	Cash at beginning of quarter/year to date	14,237		8,424
1.21	Exchange rate adjustments to item 1.20	(294)		(55)
1.22	Cash at end ofquarter	13,175		13,175
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

		Current quarter
		$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	188
1.24	Aggregate amount of loans to the parties included in item 1.10	-
1.25	Explanation necessaryfor an understandingof the transactions
	Item 1.9(a) for the current quarter comprises $250,000 final settlement on the sale of the Mount
	Gibson assets and $750,000 contingent settlement from the Gidgee Gold Project sale to Apex Gold
	Pty Ltd.
	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
	10 million ordinary shares at a deemed cost of $200,000 were issued pursuant to the terms and
	conditions of the Share Sale Agreement entered into with Oroya Mining Limited.
	Legend received 60 million ordinary shares in Artemis Resources Limited, with a deemed value of
	$720,000,as consideration for the sale of the Pilbara Project Tenements.
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

Financing facilities available

Add notes as necessary for an understanding of the position.

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

Estimated cash outflows for next quarter
4.1Exploration and evaluation4.2Development4.3Production4.4Administration	$A’000
	2,500
	-
	-
	500
Total	3,000

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A’000	Previous quarter$A’000
5.1Cash on hand and at bank5.2Deposits at call5.3Bank overdraft5.4Other (provide details)	3,175	4,237
	10,000	10,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	13,175	14,237
Shares held in Artemis Resources Limited,Independence Group Limited, NemexResources Limited and Pilbara MineralsLimited at cost	3,939	3,219
Total: cash, security deposits and otherliquid assets held at cost at end of quarter	17,114	17,456

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1Interests in miningtenements relinquished,reduced or lapsed6.2Interests in miningtenements acquired orincreased	Tenementreference	Nature of interest(note (2))	Interest atbeginning ofquarter	Interest atend ofquarter
	E47/1797P47/1112P47/1124P47/1126P47/1360P47/1361P47/1362P47/1363P47/1364P47/1365P47/1366P47/1367P47/1368P47/1369P47/1370P47/1371P47/1372P47/1373P47/1374P47/1375P47/1380P47/1386E47/1178E47/1745E47/1746E47/1747P47/1127P47/1131P47/1134E47/1806E47/1807E47/1878	--------------------------------	100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%Earning 70%Earning 70%Earning70%	NilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNilNil

• 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	Amount paid up per
				security (see note	security (see note 3)
				3) (cents)	(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	1,990,350,801	1,990,350,801
	securities
7.4	Changes during
	quarter
	(a) Increases	10,000,000	10,000,000
	through issues
	(b) Decreases
	through returns of
	capital,buy-backs
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			Exercise price	Expiry date
	on and conversion	9,000,000	-	5.30	16 December 2014
	factor)	800,000,000	-	Nil	4 February 2015
		191,250,000	-	4.00	4 February 2015
		199,750,000	-	4.00	4 February 2015
		14,400,000	-	5.00	4 February 2015
		30,000,000	-	6.00	21 December 2015
7.8	Issued during
	quarter
7.9	Exercised during
	quarter
7.10	Expired/cancelled	2,400,000	-	4.25	22 May 2012
	during quarter
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 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 5).

• 2 This statement does / does not * (delete one) give a true and fair view of the matters disclosed.

Sign here: Date: 23 July 2012 (Company secretary)

Print name: Dennis Wilkins

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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