LEGEND MINING LIMITED — Interim / Quarterly Report 2013

Oct 16, 2013

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SEPTEMBER 2013 QUARTERLY REPORT

17 October 2013

LEGEND MINING LIMITED

ASX Symbol: LEG ABN 22 060 966 145

Level 2, 640 Murray Street West Perth Western Australia 6005

PO Box 626 West Perth Western Australia 6872

Phone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email: legend@legendmining.com.au Website: www.legendmining.com.au

HIGHLIGHTS

• Bikala Prospect: Large >1,000m x 400m coherent gold soil anomaly identified with potential for significant mineralisation.

• Nkoutou Prospect: 150m wide gold zone located upstream of sediment sample anomaly (3.08, 2.62, 1.50, 1.33g/t Au) and artisanal workings. Gold anomaly associated with major NE trending shear corridor containing sulphidic quartz veining, considered possible gold source.

• Work on attracting suitable partner for Cameroon iron ore project continued to progress during the quarter.

• Exploration licence application covering 356km[2] in the Fraser Range District submitted to DMP.

OVERVIEW

CONTACT

Mr Mark Wilson Managing Director

Mr Derek Waterfield

Executive Director Technical

Field work during the quarter focussed upon the gold prospects at Nkoutou and Bikala. It was very pleasing to develop coherent stream sediment and soil anomalies at both prospects, with some individual results being of very high tenor. As a result of the soil cover present over the gold anomalies, further consideration is required prior to designing drill targets.

PROJECTS

A desktop review is now underway in both Australia and Cameroon to determine the next course of action at both prospects.

Cameroon: Iron Ore, Gold

Shareholders should note that Legend is relocating its office to 8 Kings Park Road, West Perth from 1 November. The principal reasons for the move are economy and suitability of the new location.

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1. CAMEROON PROJECT

The Cameroon Project comprises three granted exploration permits covering an area of approximately 2,469km[2] and is considered prospective for iron ore and gold.

Gold Exploration

Exploration activities during the quarter focussed on stream sediment sampling, soil sampling and geological mapping at the Bikala and Nkoutou prospects in the southeastern part of the project, see Figure 1. This recent work has developed these two prospects into high priority areas with the potential to host significant gold mineralisation.

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Figure 1: Ngovayang Tenements with Gold Prospect Locations Over Topography

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Bikala Prospect

The Bikala prospect was originally identified during regional stream sediment sampling returning maximum gold values of 8.76, 1.84 and 1.35g/t Au in fine fraction (-2mm) samples. Additional stream sampling highlighted five drainages covering an area of 4km[2] with anomalous gold values, and associated pan concentrate samples with ≥25 gold grains, see Figure 2a. These drainages are shedding several E-W to NE-SW trending topographic “ridges” and in most cases contain small scale alluvial artisanal workings.

A follow up soil programme (761 samples) was completed over the anomalous drainages involving 10 N-S traverses spaced 200m apart and comprising two sample types; a 2-3kg unsieved soil sample taken at 25m intervals and a second 10kg bulk sample taken at 50m intervals. The unsieved samples were submitted for fire assay gold analysis, while the 10kg samples were panned and the concentrate observed for the presence of gold grains. Of the 375 bulk samples panned and observed, 66 samples contained between 1-3 gold grains, however only limited correlation between the presence of observed gold grains and elevated fire assay gold value was noted.

The soil sampling defined an extensive (>1,000m x 400m), coherent >20 ppb Au anomaly, which remains open to the west. The anomaly is closely associated with an E-W trending topographic “ridge” and its northern flank, and better defines the “source area” for the pan concentrate results and occurrence of artisanal workings, see Figure 2b. The coherent nature and size of the anomaly indicates the potential to host significant gold mineralisation.

A second coherent anomaly (300m long) was located 500m to the northeast, along a single soil traverse, and again explains the elevated gold grain count in pan concentrate samples and the presence of artisanal workings. The sampling also returned several “spot” high gold values (up to 156ppb Au), possibly related to narrow veins, however the significance of these samples requires further investigation.

The host rocks at Bikala comprise predominantly amphibole-biotite-feldspar-garnet gneiss and calc-silicate with an overall E-W to NE-SW foliation trend and are commonly intruded by granitic/felsic rocks, see Figure 2b. Reprocessed aeromagnetic data supports this main foliation trend, however also highlights a series of crosscutting regional and local scale faults/fractures with NW-SE and ENE-WSW trends. The NW-SE structural trend is confirmed by the geological mapping and considered a possible control on mineralisation at Bikala.

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Photos 1 & 2: Stream Sediment and Soil Sampling at Bikala Prospect

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Figure 2a: Bikala Stream Sediment Pan Concentrate Samples - Gold Grain Count
Figure 2b: Bikala Soil Sample Gold Results Over Interpreted Geology
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Nkoutou Prospect

As with Bikala, Nkoutou was identified during the initial regional stream sediment sampling programme returning a value of 1.33g/t Au in a fine fraction (-2mm) sample. Subsequent stream sampling further enhanced the prospect with five more samples >1g/t Au, (14.15, 5.02, 3.08, 2.62, 1.50g/t Au) and another eight samples in the 0.1-1.0g/t Au range, see Figure 3a.

The anomalous stream samples are associated with several drainages/catchments, which are confined between two N-S and NNE-SSW trending ridges. Pan concentrate samples taken from the same location as the -2mm fraction samples, commonly returned gold grain counts of >20, with angular to sub-rounded shapes indicating a close proximity to gold source.

A soil sampling programme was completed over the anomalous catchment area of 1,500m x 400m, which contains numerous small scale alluvial artisanal workings. Results from the soil sampling highlighted a 150m wide zone along the central sample traverse with gold values between 28 - 560ppb Au, see Figure 3b. This relatively discrete gold anomaly lies to the immediate north of a drainage channel, which returned highly significant stream sediment values of 3.08, 2.62, 1.50, 1.33g/t Au. The tenor, size and location of the soil anomaly explains the gold results in the drainage and associated artisanal workings.

The soil programme (292 samples) was completed over nine E-W traverses spaced 200m apart and like Bikala comprised two sample types; a 2-3kg unsieved soil sample taken at 25m intervals and a second 10kg bulk sample taken at 50m intervals. The unsieved samples were submitted for fire assay gold analysis, while the 10kg samples were panned and the concentrate observed for the presence of gold grains. Of the 138 bulk samples panned and observed, eight samples contained between 1-3 gold grains. Three of these samples with observable gold grains showed good correlation to elevated fire assay gold values from within the abovementioned anomalous soil zone.

Outcrop in the region surrounding the soil anomaly is limited, with the majority of the area covered by a brown clayey soil of unknown thickness, (potentially up to 10m). However, recent geological mapping has identified a NE-SW trending shear corridor containing multiple narrow (5-30cm) sulphidic quartz veins, hosted in metasomatised quartz-biotite-amphibole gneiss. The identification of this shear and associated quartz veining is critical, as it is considered the potential source for the gold and requires further follow-up work.

Gold results from the soil sampling in the northern part of the prospect, associated with a cluster of artisanal workings and stream sediment values of 14.15 and 5.02g/t Au were surprisingly low. The soil sampling technique does not appear to have effectively tested this region, interpreted as being due to an increase in cover thickness and lack of consistent sample media/horizon.

Nkoutou’s regional setting of highly deformed and sheared gneissic rocks with associated granitoid intrusives, along with more localised features such as; gold in drainage/soil samples, sulphidic quartz veining and artisanal workings, all add to the prospectivity of the prospect. This is further supported by previous petrological studies on rockchip samples which identified two quartzsulphide events. One event is interpreted to represent “orogenic gold-type veins” associated with peak to post-peak upper amphibolite metamorphism, while the second event is related to lower grade greenschist metamorphism.

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Figure 3a: Nkoutou Stream Sediment Sample (-2mm) Gold Results Over Interpreted Geology Figure 3b: Nkoutou Soil Sample Gold Results

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2. PROJECT GENERATION

Fraser Range ELA28/2342

As part of Legend’s ongoing project generation activities, an exploration licence application (E28/2342) covering an area of 356km[2] was submitted to the DMP, see Figure 4.

This tenement lies within the Fraser Range District of Western Australia and is considered prospective for Nova-style nickel-copper and Tropicana-style structurally controlled gold mineralisation.

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E28/2342
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Figure 4: Tenement Application E28/2342 Over Aeromagnetic Image

3. CORPORATE

Half Yearly Report

Legend released its Half Year Report for the period ended 30 June 2013 to the ASX on 2 September 2013.

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Competent Persons Statements

The information in this announcement that relates to Exploration Results has been compiled by Mr Derek Waterfield, a Member of the Australian Institute of Geoscientists and a full time employee of Legend Mining Limited. Mr Waterfield has sufficient relevant experience in the styles of mineralisation and types of deposit under consideration, and in the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code), and consents to the inclusion of the information in the form and context in which it appears.

Visit www.legendmining.com.au for further information and announcements.

For more information:

Mr Mark Wilson Managing Director Ph: (08) 9212 0600

Mr Derek Waterfield Executive Director - Technical Ph: (08) 9212 0600

Stream Sediment Sampling and Assay Methodology

At each sample site a 10kg bulk sample was collected from the active portion of the stream and sieved into a “fine” -2mm fraction and a “coarse” +2mm to -6mm fraction. These samples are considered representative of the bulk material in the stream, have not been collected from trap sites and are not concentrates.

The -2mm fraction samples comprising 1 to 5kg of material were pulverised in their entirety and submitted for gold analysis at ALS Ireland by method Au-ICP22 (50g fire assay with ICP-AES finish). The issue of “nuggetty” gold has been identified in several repeat gold assays, which was expected given the relatively coarse nature of the gold observed in the pan concentrate samples. The +2mm to - 6mm fraction samples have been retained and may be analysed in the future.

Pan Concentrate Sampling and Observation Methodology

At each sample location, multiple sites within the active portion of the stream were identified and approximately 15-20kg of material from each site was collected and panned down to a heavy mineral concentrate of 5-50g. An in-field observation of the multiple pan concentrate samples was then undertaken and the presence (or absence) and number of gold grains in the “best” sample recorded. A second more detailed count of all samples with greater than five gold grains was then undertaken in the field office using a high powered binocular microscope. The microscope observation provided information on gold grain size, shape and character, as well as identifying the minerals present in the heavy mineral concentrate.

Soil Sampling and Assay Methodology

Soil sampling was completed over N-S or E-W traverses spaced 200m apart and comprised two sample types.

• Type 1) Unsieved 2-3kg soil sample taken at 25m intervals along soil traverse. Samples submitted for gold analysis at ALS South Africa by method Au-ICP22 (50g fire assay with ICP-AES finish).

• Type 2) Bulk (unsieved) 10kg sample taken at 50m intervals along soil traverse. Sample was panned and the concentrate observed for the presence of gold grains.

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