LEGEND MINING LIMITED — Interim / Quarterly Report 2017

Oct 22, 2017

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas 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, 01/05/13, 01/09/16

Name of entity

Legend Mining Limited

ABN	Quarter ended (“current quarter”)
22 060 966 145	30 September 2017

==> picture [455 x 446] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date
$A’000 (9months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (1,017) (2,050)
- -
(b) development
- -
(c) production
(d) staff costs (132) (379)
(e) administration and corporate costs (128) (388)
1.3 Dividends received (see note 3) - -
1.4 Interest received 87 207
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Research and development refunds - 1,037
1.8 Other (provide details if material)
- Once off cost of R&D refund - (168)
1.9 Net cash from / (used in) operating
activities (1,190) (1,741)
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (6) (43)
- -
(b) tenements (see item 10)
(c) investments 466 466
----- End of picture text -----

• See chapter 19 for defined terms

30 September 2017

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

==> picture [455 x 654] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date
$A’000 (9months)
$A’000
- -
(d) other non-current assets
2.2 Proceeds from the disposal of:
- -
(a) property, plant and equipment
- -
(b) tenements (see item 10)
- -
(c) investments
- -
(d) other non-current assets
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing
activities 460 423)
3. Cash flows from financing activities
3.1 Proceeds from issues of shares - -
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of
- -
shares, convertible notes or options
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and
- -
borrowings
3.8 Dividends paid - -
3.9 Other (provide details if material) - -
3.10 Net cash from / (used in) financing
activities - -
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 6,136 6,724
4.2 Net cash from / (used in) operating
activities (item 1.9 above) (1,190) (1,741)
4.3 Net cash from / (used in) investing activities
(item 2.6 above) 460 423
4.4 Net cash from / (used in) financing activities
- -
(item 3.10 above)
----- End of picture text -----

• See chapter 19 for defined terms 30 September 2017

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

==> picture [455 x 367] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date
$A’000 (9months)
$A’000
4.5 Effect of movement in exchange rates on
cash held - -
4.6 Cash and cash equivalents at end of
period 5,406 5,406
5. Reconciliation of cash and cash Current quarter Previous quarter
equivalents $A’000 $A’000
at the end of the quarter (as shown in the
consolidated statement of cash flows) to the
related items in the accounts
5.1 Bank balances 356 386
5.2 Call deposits 5,050 5,750
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of
quarter (should equal item 4.6 above) 5,406 6,136
Shares held in Nemex Resources Limited
and S2 Resources Limited at cost 794 1,501
Total: cash, security deposits and other
liquid assets held at cost at end of
quarter 6,200# 7,637
----- End of picture text -----*

• Market value 30 September 2017 $186,951 (30 June 2016 $393,951), which now does not include an interest in Artemis Resources. During the September 2017 quarter, Legend Mining sold on market its interest in Artemis Resources for a net consideration of $466,644.

Does not include $3M receivable originally due in December 2016.

6.	Payments to directors of the entity and their associates	Current quarter $A'000
6.1	Aggregate amount of payments to these parties included in item 1.2	170
6.2	Aggregate amount of cash flow from loans to these parties included in item 2.3	Nil
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

Item 6.1 includes aggregate amounts paid to directors including salary, directors’ fees, consulting fees and superannuation.

• See chapter 19 for defined terms 30 September 2017

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.	Payments to related entities of the entity and their associates	Current quarter $A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	Nil
7.2	Aggregate amount of cash flow from loans to these parties included in item 2.3	Nil
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

N/A

==> picture [455 x 186] intentionally omitted <==

----- Start of picture text -----

8. Financing facilities available Total facility amount Amount drawn at
Add notes as necessary for an at quarter end quarter end
understanding of the position $A’000 $A’000
8.1 Loan facilities Nil Nil
8.2 Credit standby arrangements Nil Nil
8.3 Other (please specify) Nil Nil
8.4 Include below a description of each facility above, including the lender, interest rate and
whether it is secured or unsecured. If any additional facilities have been entered into or are
proposed to be entered into after quarter end, include details of those facilities as well.
N/A
----- End of picture text -----

==> picture [455 x 145] intentionally omitted <==

----- Start of picture text -----

9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 500
9.2 Development -
9.3 Production -
9.4 Staff costs 120
9.5 Administration and corporate costs 150
9.6 Other (provide details if material) -
9.7 Total estimated cash outflows 770
----- End of picture text -----

• See chapter 19 for defined terms 30 September 2017

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

==> picture [455 x 171] intentionally omitted <==

----- Start of picture text -----

10. Changes in Tenement Nature of interest Interest at Interest
tenements reference beginning at end of
(items 2.1(b) and and of quarter quarter
2.2(b) above) location
10.1 Interests in mining - - - -
tenements and
petroleum tenements
lapsed, relinquished
or reduced
10.2 Interests in mining - - - -
tenements and
petroleum tenements
acquired or increased
----- End of picture text -----

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

==> picture [217 x 53] intentionally omitted <==

Sign here:

Date: 23 September 2017

Print name: Anthony Walsh

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. By the Company signing this Appendix 5B, the Managing Director, in his capacity as Managing Director and as the person who performs the function of the Chief Financial Officer, declares that the Appendix 5B for the relevant quarter:

5. presents a true and fair view, in all material respects, of the cashflows of the Company for the relevant quarter and is in accordance with relevant accounting standards;

6. the statement given above is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board; and

7. the Company’s financial records have been properly maintained and the Company’s risk management and internal compliance and control system is operating efficiently and effectively in all material respects.

8. See chapter 19 for defined terms 30 September 2017

Page 5