LEGEND MINING LIMITED — Interim / Quarterly Report 2017

Jul 16, 2017

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JUNE 2017 QUARTERLY REPORT

17 July 2017

LEGEND MINING LIMITED

ASX Symbol: LEG ABN 22 060 966 145

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

PO Box 626 West Perth Western Australia 6872

HIGHLIGHTS

• High priority conductor (N1) defined at Area N.

• N1 supported by anomalous Ni-Cu geochemistry in aircore drilling, favourable host lithology and gravity feature

• Bedrock conductors identified at Area E (E2) and Area O (O1).

• 75 hole (3,188m) aircore drilling programme over north Rockford completed

• RC/diamond drilling commenced

• Ongoing regional MLTEM surveys

Phone: +61 8 9212 0600 Facsimile: +61 8 9212 0611 Email:

legend@legendmining.com.au Website:

www.legendmining.com.au

CONTACT

OVERVIEW

The June 2017 quarter has been an active and productive quarter for field activities at the Rockford Project.

Legend’s innovative MLTEM surveys (over areas L, M, N and O) and FLTEM surveys (over areas E, M and N) have successfully resulted in identifying bedrock conductors for diamond drilling at N1 and N2 and for RC drilling at E2, F1 and O1. These drill programmes commenced in the last week of June 2017.

Mr Mark Wilson Managing Director

Mr Derek Waterfield Executive Director Technical

PROJECTS

Rockford - Fraser Range: Nickel-Copper Gold

The innovative MLTEM survey work is ongoing over selected areas in the south of the Project. Results from both the drilling and MLTEM surveys will be released as appropriate.

A 75 hole, 3,188m aircore drilling programme over selected traverses in the north of the Project was also completed during the reporting period. Assay results from this programme returned anomalous nickel and copper values at Area N, which supported the prospectivity of bedrock conductors N1 and N2. Furthermore, petrological analysis of a bottom of hole sample from RKAC068 revealed a hornblende-rich metamorphosed mafic rock, considered a highly favourable host rock for nickel-copper sulphide orebodies.

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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 two granted exploration licences covering 238.5m[2] .

Exploration activities during the June 2017 quarter were initially focussed on the high priority Area N prospect, then extended over regional targets in the northern part of the Rockford Project, see Figure 1. A summary of exploration completed is summarised below and discussed in detail in the body of this report:

• 75 hole aircore drilling programme over north Rockford

• Moving loop electromagnetic (“MLTEM”) surveying over Areas L, M, N and O

• Fixed loop electromagnetic (“FLTEM”) surveying over Areas E, M and N.

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Figure 1: Location

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Area N

Area N is characterised by a large folded and/or intrusive feature with generally low magnetic response closely associated with a 2.5 x 0.5km NE-SW trending gravity feature. MLTEM and FLTEM surveying was completed during April 2017 aimed at better defining the previously identified strong to moderate conductors (N1-N2) and allowing accurate geophysical modelling. The survey successfully defined the two conductors, which are summarised in Table 1 and shown on Figure 2.

		Table 1: Area N Conductor Description	Table 1: Area N Conductor Description	Table 1: Area N Conductor Description
Conductor	Conductance	Dimensions	Depth to Top	Plate Orientation
N1	6,000-12,000S	850m x 300m	500-550m	75-850NW dip
N2	400-500S	700m x 600m	300-400m	50-650E dip

Two aircore drill traverses were completed at Area N aimed at providing bedrock information over the top of the N1-N2 conductors and gravity/aeromagnetic features, see Figure 2.

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Figure 2: Area N - Aircore Drilling and FLTEM Conductors Over Gravity

The aircore traverse over the N1 conductor comprised 13 holes (RKAC065-073, 119-122) for 590m, intersecting a 200-300m wide central package of mafics flanked by felsic granulite, see Figure 2 & 3.

Aircore drillhole RKAC068 returned a result of 37m @ 0.1% Ni and 0.01% Cu from 24m to bottom of hole associated with a hornblende-rich metamorphosed mafic. RKAC119 was drilled 100m to the west of RKAC068, intersecting a similar lithology, returning 31m @ 0.09% Ni and 0.03% Cu from 20m to bottom of hole. In addition, RKAC120 (100m east of RKAC068) and RKAC073 (100m west

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of RKAC119) returned elevated assays of; 1m @ 0.05% Ni and 0.03% Cu from 32m BOH, and 8m @ 0.02% Ni and 0.03% Cu from 32m respectively, see Figures 2 & 3.

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Figure 3: Area N - Aircore Drill Section 6629000N

These results confirmed a +300m wide zone with anomalous nickel and copper values associated with a metamorphosed mafic, see Figure 3. Petrological analysis of this mafic unit indicated an original igneous composition rich in orthopyroxene/clinopyroxene, with subordinate plagioclase and olivine and a cumulate texture. The petrology also revealed the presence of supergene nickel minerals along with chalcopyrite (copper sulphide) further confirming it as a highly favourable host rock.

Importantly, the metamorphosed mafic unit correlates with the up-dip projection of the strong (6,00012,000S) N1 conductor (Figure 3) and is closely associated with the gravity feature and a localised aeromagnetic high.

• Area N is considered a very high priority prospect with a summary of positive features given below:  Strong (6,000-12,000S) FLTEM bedrock conductor defined at N1.

• N1 conductor closely associated with a gravity feature and aeromagnetic high.

• Aircore drillholes RKAC068 and RKAC119 over the up-dip projection of the N1 conductor intersected favourable metamorphosed mafic host rocks.

• RKAC068 returned assay results of; 37m @ 0.1% Ni, 0.01% Cu from 24m to BOH including 4m @ 0.14% Ni, 0.01% Cu from 28m.

• RKAC119 returned assay results of; 31m @ 0.09% Ni, 0.03% Cu from 20m to BOH including 4m @ 0.14% Ni, 0.06% Cu from 32m.

• Elevated nickel and copper values in RKAC125 may be related to the N2 conductor.

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North Rockford Aircore Drilling Programme

An aircore drilling programme comprising 75 holes (RKAC065-139) for 3,188m was completed during the quarter over the northern part of the Rockford Project. The drilling was undertaken over several targets (Areas L, M, N, O, see Figure 1) selected from aeromagnetic/gravity data and EM surveys, with the aim of providing information on the regolith profile, basement lithologies and the lithogeochemical signature of the basement rocks.

Table 2 below summarises all anomalous nickel (>0.03%) and copper (>0.02%) results from the 75 hole drilling programme.

	Table 2: Anomalous Assay Values in Aircore Drillholes	Table 2: Anomalous Assay Values in Aircore Drillholes	Table 2: Anomalous Assay Values in Aircore Drillholes	Table 2: Anomalous Assay Values in Aircore Drillholes	Table 2: Anomalous Assay Values in Aircore Drillholes	Table 2: Anomalous Assay Values in Aircore Drillholes
Drillhole	From (m)	To (m)	Interval (m)	Ni (%)	Cu (%)	Lithology
RKAC068	24	61 BOH	37	0.10	0.01	Saprock/Metamorphosed Mafic
Incl.	28	32	4	0.14	0.01	Saprock over Meta. Mafic
RKAC073	32	40	8	0.02	0.03	Saprock over Mafic
RKAC119	20	51 BOH	31	0.09	0.03	Saprock/Metamorphosed Mafic
Incl.	32	36	4	0.14	0.06	Saprockover Meta. Mafic
RKAC120	32	33 BOH	1	0.05	0.03	Felsic Granulite
RKAC125	24	29 BOH	5	0.03	0.02	Mafic Granulite
RKAC127	24	29 BOH	5	0.03	0.02	Mafic Granulite

Note: Table shows anomalous values of Ni >0.03% and/or Cu >0.02% BOH – Bottom of Hole

Regional MLTEM Surveys

MLTEM surveys were completed over Areas E, L, M and O, along with FLTEM surveys at Areas E and M during April/May 2017. As a result of these surveys, geophysical modelling has defined two significant bedrock conductors E2 and O1, to go with the previously defined conductor F1, see Figure 4.

The three conductors are discussed in further detail below with conductor parameters summarised below in Table 3.

		Table 3:Summary of Conductor Parameters	Table 3:Summary of Conductor Parameters	Table 3:Summary of Conductor Parameters	Table 3:Summary of Conductor Parameters
**Conductor **	**Method **	Conductance	Dimensions	Dip	**Orientation **	Depth to Top
E2	MLTEM	4,000-6,000S	600m x 300m	35-500WNW	NNE-SSW	100-125m
F1	MLTEM	1,250-2,000S	800m x800m	80-850WNW	NNE-SSW	<125m
O1	MLTEM	2,500-5,000S	>300m x300m	70-800WNW	NNE-SSW	125-150m

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Figure 4: EM Conductors Over Regional Aeromagnetics

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Conductor E2

Area E was originally selected for follow up MLTEM surveying focussed on a discrete 1.5km x 1.3km gravity high with associated strong magnetic response representing a complex fold closure. E2 is located on the far eastern side of Area E and associated with a subtle magnetic and gravity response. The moderate to strong bedrock conductor (4,000-6,000S) has a modelled size of 600m x 300m and a depth to top of source of 100-125m. RC drill testing of this conductor is planned.

Conductor F1

Area F is characterised by an elongate NE trending gravity high in the west and a more subtle gravity trend in the east. The aeromagnetics indicates a large open fold and a regional scale NW trending cross structure.

A MLTEM survey completed in December 2015 identified a NNE trending moderate bedrock conductor situated on the flank of the subtle eastern gravity trend. Modelling of the conductor indicated a depth to top of source of <125m, a conductance of 1,250-2,000S and a plate with dimensions of 800m x 800m. RC drill testing of this conductor is planned.

Conductor O1

Area O is characterised by a 3km x 1.5km folded and/or intrusive feature with low/moderate magnetic response. A NE-SW trending gravity ridge occurs in the eastern part of the prospect. MLTEM surveying identified a moderate to strong bedrock conductor (O1) in the SE.

Modelling of the conductor indicated a depth to top of source of 125-150m, a conductance of 2,5005,000S and a plate with dimensions of >300m x 300m. RC drill testing of this conductor is planned.

Current Drilling and EM Programmes

Diamond drill testing of conductors N1 and N2 at Area N, and RC drill testing of conductors E2, F1 and O1 commenced in the last week of the June 2017 quarter. It is planned to do downhole EM (DHTEM) follow up of all drill tested conductors. Results from the drilling will be released as appropriate.

Meanwhile regional MLTEM surveying is ongoing in selected southern areas of the Rockford Project.

2. CORPORATE

Annual General Meeting

The Annual General Meeting was held on 18 May 2017 with all resolutions passed unanimously on a show of hands. The results of the meeting were released to the ASX on the same day.

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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 (9 May 2017, 6 June 2017, & 13 June 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 June 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%
ELA28/2675	Fraser Range, Western Australia	100%	N/A	100%	Application
ELA28/2676	Fraser Range, Western Australia	100%	N/A	100%	Application
ELA28/2677	Fraser Range, Western Australia	100%	N/A	100%	Application

Farm-In or Farm-Out Arrangements

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

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