LEGEND MINING LIMITED — Interim / Quarterly Report 2013

Sep 1, 2013

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HALF YEAR REPORT 30 JUNE 2013

ACN 060 966 145

COMPANY DIRECTORY

CONTENTS

	Page
Company Directory	1
Directors’ Report	2
Consolidated Statement of Comprehensive Income 3
Consolidated Statement of Financial Position	4
Consolidated Statement of Cash Flows	5
Consolidated Statement of Changes in Equity	6
Notes to the Financial Statements	7
Directors’ Declaration	15
Declaration of Auditor Independence	16
Independent Auditor’s Review Report	17

Directors

Michael William Atkins (Non-Executive Chairman) Mark William Wilson (Managing Director) Derek William Waterfield (Executive Director – Technical) Dermot Michael Ryan (Non-Executive Director)

Company Secretary

Dennis Wilkins

Registered Office

Level 2 640 Murray Street PO Box 626 WEST PERTH, WA 6005

Telephone: (08) 9212 0600 Facsimile: (08) 9212 0611

Bankers

Web

National Australia Bank 1232 Hay Street WEST PERTH, WA 6005

www.legendmining.com.au

Auditors

Email

legend@legendmining.com.au

ASX Codes

LEG – ordinary shares

Ernst & Young 11 Mounts Bay Road PERTH, WA 6000

Home Exchange

Australian Securities Exchange Ltd 2 The Esplanade PERTH WA 6000

Share Registry

Advanced Share Registry Services 150 Stirling Highway NEDLANDS, WA 6009

Telephone: (08) 9389 8033 Facsimile: (08) 9389 7871

Lawyers

Macdonald Legal Suite 23, 18 Stirling Highway NEDLANDS WA 6009

Legend Mining Limited Half-Year Report 2013

1

DIRECTORS’ REPORT

The Directors submit their report for the half-year ended 30 June 2013.

DIRECTORS

The names and details of the Company’s directors during the financial period and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Michael Atkins (Chairman, Non-Executive Director)

Mark Wilson (Managing Director)

Derek Waterfield (Executive Director – Technical)

Dermot Ryan (Non-Executive Director)

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities during the period of the entities within the consolidated entity were exploration for iron ore and gold deposits.

RESULTS OF OPERATIONS

The loss of the consolidated entity for the half-year after tax and non-controlling interests was $26,494,792 (2012: profit $1,939,512), which includes an impairment charge against the group’s deferred exploration costs of $25,667,889.

REVIEW OF OPERATIONS

Legend has continued to focus exploration activities on the Cameroon project. The Company has undertaken various exploration activities to follow up on gold stream sediment sampling with the objective to narrow the focus for future gold exploration work.

In addition, the Company has continued to work on attracting a suitable partner for the iron ore project.

AUDITOR’S INDEPENDENCE

The Auditor’s Independence Declaration under S307C of the Corporations Act 2001 has been received from Ernst & Young, the Company’s auditor, and is available for review on page 16.

SIGNED in accordance with a Resolution of the Directors on behalf of the Board

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________ M Wilson Managing Director

Dated this 30 August 2013

Legend Mining Limited Half-Year Report 2013

2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2013

Notes Rental revenue 3(a) Finance revenue 3(b) Other income 3(c) Net loss on revaluation of financial assets held for trading 3(f) Other expenses 3(e) Corporate expenses Impairment of deferred exploration costs 9 Finance costs Net (loss)/profit before income tax expense Income tax benefit/(expense) (Loss)/profit for the period Other comprehensive income Items that may be reclassified to profit or loss Movement in foreign currency translation reserve Items that will not be reclassified to profit or loss Non-controlling interest in foreign currency translation reserve Other comprehensive income for the period Total comprehensive (expense)/income for the period (Loss)/profit for the period attributable to: Members of Legend Mining Limited Non-controlling interest Total comprehensive (expense)/income attributable to: Members of Legend Mining Limited Non-controlling interest (LOSS)/PROFIT PER SHARE (cents per share) Basic (loss)/profit for the period attributable to ordinary equity holders of the parent 4 Diluted (loss)/profit for the period attributable to ordinary equity holders of the parent 4	CONSOLIDATED 30 June 2013 $ 30 June 2012 $ - 20,168 176,224 303,227 30,000 5,855,510 (445,850) (454,250) (18,260) (1,112,404) (900,639) (1,251,732) (25,667,889) - - (6,831)
	(26,826,414) 3,353,688 331,622 (1,414,176)
	(26,494,792) 1,939,512
	4,294,564 (1,506,125) 477,173 (167,348)
	4,771,737 (1,673,473)
	(21,723,055) 266,039
	(23,928,003) 1,939,512 (2,566,789) -
	(26,494,792) 1,939,512
	(19,633,439) 433,386 (2,089,616) (167,347)
	(21,723,055) 266,039
	(1.2186) 0.0978 (1.2186) 0.0978

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2013

3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

Notes ASSETS Current Assets Cash and cash equivalents 6 Term deposit Trade & other receivables Prepayments Inventory Other financial assets 7 Total Current Assets Non-current Assets Other financial assets 7 Property, plant & equipment 8 Deferred exploration costs 9 Total Non-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade & other payables 10 Current tax liabilities Provisions Total Current Liabilities Non-current Liabilities Provisions Deferred tax liability Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Equity attributable to equity holders of the parent Contributed equity 11 Reserves 12 Accumulated losses Total parent entity interest Non-controlling interests TOTAL EQUITY	CONSOLIDATED As at 30 June 2013 $ As at 31 December 2012 $ 1,440,889 9,958,535 5,000,000 - 87,037 14,283 84,595 53,692 17,331 10,556 3,450,000 3,895,850
	10,079,852 13,932,916
	66,134 66,134 1,048,006 1,114,928 19,186,454 38,904,952
	20,300,594 40,086,014
	30,380,446 54,018,930
	72,557 461,630 - 1,400,105 87,375 80,232
	159,932 1,941,967
	39,204 35,620 33,038 140,567
	72,242 176,187
	232,174 2,118,154
	30,148,272 51,900,776
	59,830,710 59,860,159 22,192,862 17,898,298 (51,842,466) (27,914,463)
	30,181,106 49,843,994 (32,834) 2,056,782
	30,148,272 51,900,776

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2013

4

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2013

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Interest paid Income taxes paid Net cash flows used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant & equipment & scrap Proceeds from sale of tenements Purchase of property, plant & equipment Payments for exploration & evaluation Payment for term deposit Refund of performance bonds Dividends received Net cash flows (used in)/from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payments for share buy-back Refund of receipts for share issue that did not proceed Payments of share issue transaction costs Net cash flows used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of period Effects of exchange rate movements on cash and cash equivalents Cash and cash equivalents at end of period(1)	CONSOLIDATED 30 June 2013 $ 30 June 2012 $ 30,000 206,088 (902,994) (1,157,434) 126,075 306,444 - (19,944) (1,203,513) -
	(1,950,432) (664,846)
	- 45,000 - 7,750,000 (20,781) (531,070) (1,583,804) (3,111,595) (5,000,000) - - 1,389,000 - 12,000
	(6,604,585) 5,553,335
	(42,389) - - (71,130) - (10,790)
	(42,389) (81,920)
	(8,597,406) 4,806,569 9,958,535 8,423,590 79,760 (55,000)
	1,440,889 13,175,159

(1) The cash and cash equivalents at the end of the period of $1,440,889 does not include term deposits of $5,000,000 at the end of the period.

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2013

5

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2013

Consolidated At 1 January 2013 Loss for the period Other comprehensive income Total comprehensive income for the period Share buy-back Cost of issue of share capital At 30 June 2013 At 1 January 2012 Profit for the period Other comprehensive income Total comprehensive income for the period Issue of shares Cost of issue of share capital At 30 June 2012	Issued Capital Foreign Currency Translation Reserve Share Option Premium Reserve Accumulated Losses Non- Controlling Interests Total Equity $ $ $ $ $ $ 59,860,159 (4,519,280) 22,417,578 (27,914,463) 2,056,782 51,900,776	Issued Capital Foreign Currency Translation Reserve Share Option Premium Reserve Accumulated Losses Non- Controlling Interests Total Equity $ $ $ $ $ $ 59,860,159 (4,519,280) 22,417,578 (27,914,463) 2,056,782 51,900,776	Issued Capital Foreign Currency Translation Reserve Share Option Premium Reserve Accumulated Losses Non- Controlling Interests Total Equity $ $ $ $ $ $ 59,860,159 (4,519,280) 22,417,578 (27,914,463) 2,056,782 51,900,776
	- - - (23,928,003) (2,566,789) (26,494,792)
	- 4,294,564	-	- 477,173 4,771,737
	- 4,294,564	-	(23,928,003) (2,089,616) (21,723,055)
	(14,952) - (14,497) -		- - (14,952) - - (14,497)
		-
		-
	59,830,710 (224,716)	22,417,578	(51,842,466) (32,834) 30,148,272
	60,171,922 (4,898,949) 22,417,578 (30,129,909) 2,014,596 49,575,238
	- - - 1,939,512 - 1,939,512 - (1,506,125) - - (167,348) (1,673,473)
	- (1,506,125) - 1,939,512 (167,348) 266,039
	200,000 - - - - 200,000 (14,496) - - - - (14,496)
	60,357,426 (6,405,074) 22,417,578 (28,190,397) 1,847,248 50,026,781

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2013

6

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 1: CORPORATE INFORMATION

The financial report of Legend Mining Limited (the Company) for the half-year ended 30 June 2013 was authorised for issue in accordance with a resolution of the Directors on 30 August 2013.

Legend Mining Limited is a company incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange.

The nature of the operations and principal activities of the Group are exploration for iron ore, gold and base metal deposits.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of Legend Mining Limited for the year ended 31 December 2012.

It is also recommended that the half-year financial report be considered together with any public announcements made by Legend Mining Limited and its controlled entities during the half-year ended 30 June 2013 in accordance with the continuance disclosure obligations arising under the Corporations Act 2001.

(a) Basis of preparation

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. The halfyear financial report has been prepared on a historical cost basis except for certain financial instruments which have been measured at fair value.

The half-year financial report is presented in Australian dollars and all values are expressed as whole dollars.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discreet reporting period.

(b) Adoption of new and revised Accounting Standards

The Company has adopted all new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply to the current period as listed below:

• AASB 10 Consolidated Financial Statements;

• AASB 11 Joint Arrangements;

• AASB 12 Disclosure of Interests in Other Entities;

• AASB 13 Fair Value Measurement;

• AASB 119 Employee Benefits;

• AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities; and

• AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle.

Legend Mining Limited Half-Year Report 2013

7

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

These standards have introduced new disclosures for the interim report but did not have a material affect the entity’s accounting policies or any of the amounts recognised in the financial statements.

The Group has not elected to early adopt any other new Standards or amendments that are issued but not yet effective.

(c) Significant accounting policies

The half-year financial report has been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2012.

(d) Estimates

The preparation of the half-year financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

Legend Mining Limited Half-Year Report 2013

8

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 3: REVENUE AND EXPENSES Revenues and expenses from continuing operations a) Rental Revenue Rental revenue b) Finance Revenue Bank interest received and receivable c) Other Income Profit on sale of plant & equipment Profit on sale of tenements Management fee Dividends received Field work completed by Legend geologists Sundry income d) Employee Benefits Expense Salaries & On costs Other employee benefits e) Other Expenses Depreciation Exploration expenditure not capitalised Loss on disposal of Armada Mining Limited and remaining tenements of the Pilbara Project f) Net Loss on Revaluation of Investments Fair value revaluation on Independence Group NL shares Fair value revaluation on Nemex Resources Limited shares and options Fair value revaluation on Pilbara Minerals Limited shares Fair value revaluation on Artemis Resources Limited shares Fair value revaluation on Sirius Resources Limited shares	CONSOLIDATED 30 June 2013 $ 30 June 2012 $ - 20,168
	176,224 303,227
	- 45,000 - 5,593,420 - 200,000 - 12,000 - 5,090 30,000 -
	30,000 5,855,510
	399,069 437,471 8,176 1,230
	407,245 438,701
	18,260 23,751 - 65,990 - 1,022,663
	18,260 1,112,404
	- (198,000) (56,100) (297,000) (29,750) (19,250) 120,000 60,000 (480,000) -
	(445,850) (454,250)

Legend Mining Limited Half-Year Report 2013

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 4: (LOSS)/EARNINGS PER SHARE

CONSOLIDATED

(a) Earnings used in the calculation of basic (loss)/earnings per share Net (loss)/profit from continuing operations attributable to ordinary equity holders of Legend Mining Limited (b) Weighted average number of shares on issue during the financial period used in the calculation of basic (loss)/earnings per share Weighted average number of ordinary shares on issue used in the calculation of diluted (loss)/earnings per share

30 June 2013 $ 30 June 2012 $ (23,928,003) 1,939,512

1,963,565,213 1,983,317,834 1,963,565,213 1,983,317,834

NOTE 5: SEGMENT INFORMATION

AASB 8 requires operating segments to be identified on the basis of internal reports that are used by the chief operating decision maker (“CODM”) in order to allocate resources to the segment and to assess its performance. The CODM of the Group is the Board of Directors.

The Group has identified its operating segments based on the internal reports that are provided to the CODM on a regular basis. The Group has two reportable operating segments being Australia and Africa, and conducts exploration and evaluation activities in Africa.

The accounting policies applied for internal reporting purposes are consistent with those applied in the preparation of this financial report.

Segment Income Segment Result Segment Assets Segment Liabilities	Australia West Africa Total June 2013 $ June 2012 $ June 2013 $ June 2012 $ June 2013 $ June 2012 $ 206,224 6,178,905 - - 206,224 6,178,905 (826,903) 1,939,512 (25,667,889) - (26,494,792) 1,939,512 10,093,996 16,583,255 20,286,450 35,830,453 30,380,446 52,413,708 (228,433) (1,865,087) (3,741) (521,840) (232,174) (2,386,927)

Segment revenues and expenses are those directly attributable to the segments and include those expenses incurred by head office where a reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist principally of cash and cash equivalents, receivables, property, plant and equipment, investments in listed entities and capitalised exploration. Segment liabilities consist principally of payables, employee benefits, accrued expenses and provisions.

NOTE 6: CASH AND EQUIVALENTS Cash at bank and in hand Deposits at call Total cash and cash equivalents	Consolidated 30 June 2013 $ 31 December 2012 $ 440,889 958,535 1,000,000 9,000,000
	1,440,889 9,958,535

Legend Mining Limited Half-Year Report 2013

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 7: OTHER FINANCIAL ASSETS Current Shares in Sirius Resources Limited at market value Shares in Pilbara Minerals Limited at market value Shares and options in Nemex Resources Limited at market value Shares in Artemis Resources Limited at market value Non-current Performance and other bonds(a)	Consolidated 30 June 2013 $ 31 December 2012 $ 2,790,000 3,270,000 21,000 50,750 99,000 155,100 540,000 420,000
	3,450,000 3,895,850
	66,134 66,134

The equity investments are all classified as held for trading. The market value of all equity investments represent the fair value based on quoted prices on active markets (ASX) as at the reporting date without any deduction for transaction costs. These investments are classified as Level 1 financial instruments. There have been no transfers between levels of the fair value hierarchy used in measuring the fair value of these financial instruments, or changes in its classification as a result of a change in the purpose or use of these assets.

• (a) Terms and conditions relating to the above financial instruments

• Non-Current Performance bonds – bank deposits were held as security for credit cards and as a security deposit for the premises rented. These deposits were held on 3 and 5 month term deposits at interest rates ranging from 4.75% to 6.00% per annum.

NOTE 8: PROPERTY, PLANT AND EQUIPMENT

Consolidated At 30 June 2013 Cost Accumulated depreciation Net carrying amount At 31 December 2012 Cost Accumulated depreciation Net carrying amount	Buildings $ Plant and equipment $ Total $ 409,378 1,600,623 2,010,001 (95,602) (866,393) (961,995)
	313,776 734,230 1,048,006
	366,781 1,436,491 1,803,272 (67,467) (620,877) (688,344)
	299,314 815,614 1,114,928

Legend Mining Limited Half-Year Report 2013

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 9: DEFERRED EXPLORATION COSTS

OTE 9: DEFERRED EXPLORATION COSTS Deferred exploration costs (a) Deferred exploration and evaluation costs At 1 January, at cost Exchange differences Expenditure incurred during the period Expenditure written-off during the period (i) At 30 June, at cost (ii)	Consolidated 30 June 2013 $ 31 December 2012 $
	19,186,454 38,904,952
	6 Months Ended 30 June 2013 $ 6 Months Ended 30 June 2012 $ 38,904,952 32,141,786 4,583,827 (1,548,886) 1,365,564 3,896,654 (25,667,889) -
	19,186,454 34,489,554

Note:

(i) The carrying value of the Group’s projects in West Africa were reviewed, and impairment recognised, based on the following:

• Value is anticipated to be recovered through either sale of the projects or exploitation of the projects by the Group;

• The carrying value has been determined by reference to the estimated fair value of the projects; and

• The fair value was supported by discussions held with potential partners.

• (ii) The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.

NOTE 10: TRADE AND OTHER PAYABLES

Current – unsecured Trade payables Other payables & accruals	30 June 2013 $ 31 December 2012 $ 46,802 101,190 25,755 360,440
	72,557 461,630

Terms and conditions relating to the above financial instruments

• (i) Trade payables are non-interest bearing and normally settled on 30 day terms. (ii) Other payables are non-interest bearing and normally settled as they fall due.

Legend Mining Limited Half-Year Report 2013

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 11: CONTRIBUTED EQUITY Consolidated and Company

Ordinary shares Issued and fully paid Issue costs Movement in ordinary shares on issue 2013 At 1 January 2013 Share buy-back	30 June 2013 $ 31 December 2012 $ 63,075,664 63,090,616 (3,244,954) (3,230,457)
	59,830,710 59,860,159
	30 June 2013 30 June 2013 $ 1,983,467,684 63,090,616 (20,616,883) (14,952)
	1,962,850,801 63,075,664

Fully paid ordinary shares carry one vote per share and carry the right to dividends.

NOTE 12: RESERVES

Share Option Premium Reserve Foreign Exchange Translation Reserve	30 June 2013 $ 31 December 2012 $ 22,417,578 22,417,578 (224,716) (4,519,280)
	22,192,862 17,898,298

NOTE 13: COMMITMENTS

(a) Exploration expenditure commitments

The Group no longer has any tenement holdings within Australia, and therefore no minimum expenditure requirements of the Department of Mines & Petroleum. All minimum expenditure requirements for the tenements held in Cameroon have been met for the current licence terms.

• (a) Operating Lease commitments

The company has a lease commitment over its office premises located at 640 Murray Street West Perth. The lease is for a period of two years commencing 1 November 2011. The lease commitment was $120,000 for the first year and is $124,800 for the second year.

NOTE 14: CONTINGENT LIABILITIES

There are no contingent liabilities at the reporting date.

No other matters or circumstances have arisen since the end of the half-year to the date of this report which have significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity.

Legend Mining Limited Half-Year Report 2013

13

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2013

NOTE 15: EVENTS AFTER THE BALANCE SHEET DATE

No matter or circumstance has arisen since the end of the financial period which has significantly affected, or may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the Group in subsequent financial periods.

NOTE 16: DIVIDENDS PAID AND PROPOSED

No dividends were paid or proposed this financial period.

Legend Mining Limited Half-Year Report 2013

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DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Legend Mining Limited, I state that:

In the opinion of the Directors:

• a) the financial statements and notes, of the consolidated entity, are in accordance with the Corporations Act 2001, including;

• i. Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2013 and its performance for the period ended on that date; and

• ii. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

• b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board.

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---

Mark Wilson Managing Director

Dated this 30 August 2013

Legend Mining Limited Half-Year Report 2013

15

Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

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Auditor’s Independence Declaration to the Directors of Legend Mining Limited

In relation to our review of the financial report of Legend Mining Limited for the half-year ended 30 June 2013, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

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Ernst & Young

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Gavin Buckingham Partner Perth 30 August 2013

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:PS:LEGEND:014

Ernst & Young Tel: +61 8 9429 2222 11 Mounts Bay Road Fax: +61 8 9429 2436 Perth WA 6000 Australia ey.com/au GPO Box M939 Perth WA 6843

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To the members of Legend Mining Limited

Consolidated Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Legend Mining Limited, which comprises the consolidated statement of financial position as at 30 June 2013, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 30 June 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Legend Mining Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:PS:LEGEND:013

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Legend Mining Limited is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2013 and of its performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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Ernst & Young

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Gavin Buckingham Partner Perth 30 August 2013

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:PS:LEGEND:013