LEGEND MINING LIMITED — Interim / Quarterly Report 2017

Oct 22, 2017

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SEPTEMBER 2017 QUARTERLY REPORT

23 October 2017

LEGEND MINING LIMITED

ASX Symbol: LEG ABN 22 060 966 145

Level 1, 8 Kings Park Road West Perth Western Australia 6005

HIGHLIGHTS

• Diamond drilling at Area N tests N1-N2 conductors

• RC drilling at Areas E, F, N, O

• Regional MLTEM surveys identify conductors at Areas Q, S and U.

• 3,000m aircore drilling programme planned to commence in early November

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

CONTACT

OVERVIEW

Legend had a productive September 2017 quarter with diamond drilling at Area N, RC drilling at Areas N, E, F and O and an extensive regional MLTEM survey over seven targets in the southern part of the Rockford Project.

Analysis of assay and petrology results from drill samples at Area N revealed that the sulphide-rich mafic/ultramafic intrusive rocks encountered were too high in the system for the targeted nickel-copper mineralisation to be present. The conductors drill tested at Areas E, F and O were explained by pyrrhotite and graphite rich intervals within metasediments/granulites.

Mr Mark Wilson Managing Director

Mr Derek Waterfield Executive Director Technical

PROJECTS

Rockford - Fraser Range: Nickel-Copper Gold

Regional MLTEM surveys were completed over seven targets selected from interpretation of aeromagnetic and gravity data, resulting in the identification of new conductors at Areas Q, S and U.

Following the results from the diamond and RC drilling programmes at Areas N, E, F and O, Legend is undertaking a review of all data collected on the Project to date. The object of this review is to prioritise future field activities starting with the 3,000m aircore drilling programme scheduled to commence early November 2017.

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1. ROCKFORD PROJECT – (Fraser Range District) Nickel-Copper, Gold

Legend’s Rockford Project is located in the highly prospective Fraser Range district of Western Australia and covers a total area of 2,792.5km[2] , see Figure 1. The majority of the project (2,530km[2] ), comprising seven contiguous granted exploration licences, is the subject of a joint venture between Legend (70%) and Creasy Group (30%), with Legend operator and manager of the joint venture. The remaining 262.5km[2] is 100% owned by Legend and includes five granted exploration licences, three of which (E28/2675-2677) were recently granted on 14 August 2017.

Exploration activities during the quarter included: diamond/RC drilling at Area N, RC drilling at Areas E, F and O, and regional innovative moving loop electromagnetic (“MLTEM”) surveying over seven targets in the southern part of the Rockford Project. A summary of exploration completed is summarised below and discussed in detail in the body of this report, see Figure 1 for location.

• Diamond and RC drilling at Area N targeting the N1 and N2 EM conductors

• RC drilling at Areas E, F and O, targeting the E2, F1 and O1 EM conductors

• MLTEM surveying over Areas P, Q, R, S, T, U, and V.

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Figure 1: Location

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Area N

Exploration activities completed during the September 2017 quarter at Area N included:

• Diamond drilling; two holes RKDD003-004

• RC drilling; two holes RKRC006-007

• Downhole electromagnetic (“DHTEM”) surveying; holes RKDD003-004 and RKRC007

• Geochemical sampling; 406 drill samples for multi-element analysis

• Petrological sampling; 22 samples for petrographic/lithological description.

The drilling programme at Area N comprised two diamond holes (RKDD003-004 for 1,350.4m) and two RC holes (RKAC006-007 for 338m), see Figures 1 & 2 and Table 1. The diamond holes were directly testing fixed loop electromagnetic (“FLTEM”) conductors N1 and N2, while the RC holes were drilled to test anomalous nickel-copper geochemistry returned in aircore drillholes RKAC068 and RKAC119, as well as the up-dip projection of the N1 conductor, see ASX announcements 9 May and 6 June 2017.

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Figure 2: Area N Drillholes and Conductor Plates on Gravity

	Table 1: Area N	Table 1: Area N	Diamond/RC Drillhole Summary	Diamond/RC Drillhole Summary	Diamond/RC Drillhole Summary	Diamond/RC Drillhole Summary
Hole	Easting	Northing	Conductor	RL	Dip	Azimuth	Depth
RKDD003	641935	6629165	N1	204	-700	1350	804
RKDD004	642850	6629750	N2	205	-700	2700	546.4
*RKRC006	642150	6629000	Geochem	205	-600	900	82
RKRC007	642175	6629007	Geochem	205	-600	900	256
Total							1,688.4

• RKRC006 abandoned due to poor ground conditions

Co-ordinates GDA94 MGA Zone 51.

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Drillhole RKDD003, testing conductor N1 intersected a package of felsic to mafic metasediments/granulites including a broad graphitic-sulphidic interval between 683m and 738m. Within this interval are two prominent pyrrhotite/minor chalcopyrite sulphide zones (1m and 2.8m respectively) with massive and matrix to net textures associated with pyroxene-rich lithologies.

DHTEM surveying in RKDD003 confirmed the graphitic-sulphidic interval (683-738m) as the source of the N1 conductor, but also identified a highly conductive offhole feature near the base of this interval. The offhole feature has a conductance of >30,000S, dimensions of <75m x 75m and is located ~20m below and southwest of the hole. This feature correlates closely with the 2.8m matrix sulphide zone hosted by pyroxene-rich rocks and interpreted as an extension of this interval, albeit with an increase in sulphide content.

Drillhole RKDD004, testing the N2 FLTEM conductor, intersected a thick package of mafic to felsic metasediments/granulites and thin mafic intrusives. Numerous thin graphitic-sulphidic intervals were noted between 483m and 532m, which correlate with the modelled position of the N2 conductor and confirmed by DHTEM surveying.

Full multi-element assay results for 164 drillcore samples from diamond drillholes RKDD003-004 were received, with the tenor of nickel and copper values as expected, and consistent with geological observations and logging, see Table 2.

	Table 2: Diamond Drillhole Assay Summary	Table 2: Diamond Drillhole Assay Summary	Table 2: Diamond Drillhole Assay Summary	Table 2: Diamond Drillhole Assay Summary	Table 2: Diamond Drillhole Assay Summary	Table 2: Diamond Drillhole Assay Summary
Drillhole	**From **	To	**Int. **	Ni%	Cu %	MgO %	**Au ppm **
RKDD003	525	526	1	0.10	0.02	18.76	0.020
RKDD003	534	535	1	0.10	0.01	19.74	-0.005
RKDD003	539	540	1	0.09	0.01	17.99	-0.005
RKDD003	680	681	1	0.05	0.06	11.87	-0.005
RKDD003	693.8	694.6	0.8	0.02	**0.07 **	8.24	0.050
RKDD003	757	758	1	0.16	0.01	**23.84 **	-0.005
RKDD003	778.4	779	0.6	0.01	0.04	5.47	0.160
RKDD003	780	781	1	0.10	0.02	17.12	0.010
RKDD004	104	108	4	0.06	0.01	15.92	0.110
RKDD004	120	132	12	0.10	<0.01	22.66	-0.005
incl	124	128	4	0.15	<0.01	**27.57 **	-0.005
RKDD004	243.7	244	0.3	0.05	0.12	7.65	0.014
RKDD004	368	369	1	0.11	0.02	17.99	-0.005
RKDD004	466.8	467.8	1	0.03	<0.01	6.42	0.220
RKDD004	515	516	1	0.03	0.06	4.02	-0.005
RKDD004	528	529	1	0.02	0.06	5.03	0.007

1. Table shows anomalous values of Ni >0.09% and/or Cu >0.05% and/or Au >0.1ppm

2. Drill core from both drillholes was selectively sampled over nominal 1m intervals with samples taken at spacings of 5-15m for the entirety of the holes aimed at providing lithogeochemical information.

3. Additional closer spaced samples were taken over intervals containing significant amounts of sulphide or intervals of geological interest.

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RC drillhole RKRC007 (re-drill of abandoned RKRC006 due to poor ground conditions) was drilled to test anomalous nickel-copper geochemistry in aircore holes RKAC068 and RKAC119, and the up-dip projection of the N1 conductor, see Figure 2. The hole intersected a broad package of pyroxene-rich mafic granulite and ultramafic, similar to that observed in aircore holes RKAC068 and RKAC119. Assay results from these RC holes have been received and returned elevated nickel-copper values of similar tenor to the aircore holes and are summarised in Table 3 below.

	**Table 3: Area N Anomalous **	**Table 3: Area N Anomalous **	**Table 3: Area N Anomalous **	**Table 3: Area N Anomalous **	Assay Values in RC Drillholes	Assay Values in RC Drillholes	Assay Values in RC Drillholes
Drillhole	From (m)	To (m)	Interval (m)	Ni (%)	Cu (%)	MgO (%)	Lithology
RKRC006	28	82 BOH	54	0.04	0.02	5.35	Saprock/MetamorphosedMafic
RKRC007	28	48	20	0.10	0.03	5.02	Saprock/Metamorphosed Mafic
	220	256BOH	36	0.10	0.01	19.71	Pyroxenite/Maficintrusive
Incl.	232	244	12	0.13	0.01	24.60	Pyroxenite/Mafic intrusive

Note: BOH – Bottom of Hole

DHTEM was completed in RKRC007 aimed at identifying possible offhole features and potentially assist with the interpretation/evaluation of the N1 conductor. Three inhole/offhole conductive intervals were identified and coincide with logged intervals containing variable amounts of graphite/sulphide. A very broad offhole feature centred below and north of the bottom of hole was also identified and interpreted to be related to the N1 conductor.

Results from 22 petrology samples from drillholes RKDD003-004 confirmed the presence of multiple mafic/ultramafic sill-like intrusions intruding the thick metasedimentary package with sulphidic-graphitic intervals. Significant mixing and assimilation of the sulphidic-graphitic metasediment with the intrusions has occurred and is a critical process in the potential formation of massive nickel-copper sulphide deposits, such as Nova-Bollinger. However, the intrusions at Area N are considered fractionated, high-level and low-Ni intrusions with any significant mineralisation occurring lower in the system.

The petrological information represents an important dataset, and when integrated with the lithogeochemistry, aeromagnetic and gravity data greatly assists the interpretation and geological understanding of Area N and the wider Rockford Project. Future exploration will be focussed on trying to identify the more nickel-rich parts of these mafic/ultramafic intrusions.

Regional RC Drilling

A regional RC drilling programme comprising three holes (RKRC008-010) for 768m, testing conductors at Area E (E2), Area F (F1) and Area O (O1) was completed during the quarter, see Figures 1 and 3 for location and Table 4 for hole details.

	Table 4: Regional RC Drillhole Summary	Table 4: Regional RC Drillhole Summary	Table 4: Regional RC Drillhole Summary	Table 4: Regional RC Drillhole Summary	Table 4: Regional RC Drillhole Summary
Hole	Easting	Northing	Conductor	RL	Dip	Azimuth	Depth
RKRC008	644360	6638850	E2	210	-600	1100	232
RKRC009	646600	6642800	F1	214	-600	1200	268
RKRC010	649350	6647300	O1	224	-700	1200	268
Total							768

Co-ordinates GDA94 MGA Zone 51.

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Drillholes RKRC008 (E2) and RKRC010 (O1) both intersected an intercalated package comprising metasediments/granulites containing broad graphite/sulphide intervals which adequately explain the targeted conductors. Similar lithologies were intersected in RKRC009 at F1, and while the amount of graphite-sulphide was less, it is felt that the conductor has been tested.

Results for the three RC drillholes returned anomalous iron and sulphur values from the logged graphite/sulphide (pyrrhotite) intervals as expected, along with elevated copper, zinc and silver values, see Table 5. No further work is warranted over these targets.

	Table 5: RC Drillhole Assay Summary	Table 5: RC Drillhole Assay Summary	Table 5: RC Drillhole Assay Summary	Table 5: RC Drillhole Assay Summary	Table 5: RC Drillhole Assay Summary
Drillhole	**From **	To	**Int. **	Ni%	Cu %	MgO %	**Au ppm **
RKRC010	142	150	8	0.01	0.05	2.28	0.009
RKRC010	172	184	12	0.01	0.05	2.00	0.014

Table shows anomalous values of Ni >0.09% and/or Cu >0.05% and/or Au >0.1ppm

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Figure 3: MLTEM Conductors E2, F1 & O1 with RC Drillholes on Aeromagnetics

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Regional MLTEM Surveys

Regional MLTEM surveys have been completed over seven new targets; Areas P, Q, R, S, T, U and V selected from interpretation of aeromagnetic and gravity data in the southern part of the Rockford Project, see Figures 1 and 4 for location.

The surveying utilised high power MLTEM and identified three significant bedrock conductors at Area Q (Q1), Area S (S1) and Area U (U1), see Figure 4 and Table 6.

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Figure 4: MLTEM Conductors Q1, S1 and U1 on Regional Aeromagnetics

	Table 6:	Conductor Description(Modelled Parameters)	Conductor Description(Modelled Parameters)	Conductor Description(Modelled Parameters)
Conductor	Conductance	Dimensions	Depth to Top	Plate Orientation
Q1	250-350S	1,000m x 500m	450-550m	50-700WNW dip
S1	300-500S	1,000m X 1,000m	150-200m	45-550ESE dip
U1	300-450S	1,500m x 350m	400-450m	50-600E

These three newly defined conductors now bring the total number of untested conductors across the Rockford Project to nine, namely D3, E1, J1-2, M1, N3, Q1, S1 and U1. An aircore drilling programme comprising a single traverse over each of the nine conductors is planned to provide lithogeochemical data and information on the depth and character of regolith.

Future Programmes

A 3,000m aircore drilling programme is planned over Areas D, J, Q and U, which contain EM conductors previously identified from regional innovative EM surveys, see Figure 1. This drilling will provide information on the regolith profile, basement lithologies and the lithogeochemical signature of the basement rocks, and assist with prioritising potential follow up RC/diamond drilling.

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The drilling programme is scheduled to start in early November 2017 and expected to take three weeks to complete.

2. CORPORATE

Treasury

During the September 2017 quarter, Legend sold its 3,000,000 Artemis Resources Limited (“ARV”) shares for $466,644. The sales occurred on market over a period from 13 July to 16 August 2017.

Half Year Report

Legend released its Half Year Report to 30 June 2017 to the ASX on 6 September 2017.

Jindal $3M Receivable

Legend received two quarterly interest payments of $30,000 each from Jindal Steel and Power during the September 2017 quarter. The payment, as per the rescheduled debt agreement announced to the ASX on 28 July 2015, due on 15 June 2017 was received on 20 July 2017 and the payment due on 15 September 2017 was received on 23 September 2017.

Competent Person Statement

The information in this report that relates to Exploration Results is based on information 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 experience that is relevant to the styles of mineralisation and types of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Waterfield consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Legend’s Exploration Results is a compilation of previously released to ASX by Legend Mining (18 July 2017, 3 August 2017, 12 September 2017 & 3 October 2017) and Mr Derek Waterfield consents to the inclusion of these Results in this report. Mr Waterfield has advised that this consent remains in place for subsequent releases by Legend of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent. Legend confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters in the market announcements continue to apply and have not materially changed. Legend confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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

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Appendix 1: Tenement Schedule as at 30 September 2017

Mining Tenements

Tenement Reference	Location	Interest at beginning of Quarter	Acquired / Withdrawn	Interest at end of Quarter	Comments
E28/1718	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/1727	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/2188	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/2189	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/2190	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/2191	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/2192	Fraser Range, Western Australia	70%	N/A	70%	70:30 JV
E28/2404	Fraser Range, Western Australia	100%	N/A	100%
E28/2405	Fraser Range, Western Australia	100%	N/A	100%
E28/2675	Fraser Range, Western Australia	100%	N/A	100%	Granted 14/08/2017
E28/2676	Fraser Range, Western Australia	100%	N/A	100%	Granted 14/08/2017
E28/2677	Fraser Range, Western Australia	100%	N/A	100%	Granted 14/08/2017

Farm-In or Farm-Out Arrangements

Tenement Reference	Location	Interest at beginning of Quarter	Acquired / Withdrawn	Interest a end of **Quarter **	t Comments
None	N/A	N/A	N/A	N/A	N/A

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