LEGEND MINING LIMITED — Interim / Quarterly Report 2018

Sep 5, 2018

==> picture [275 x 81] intentionally omitted <==

HALF YEAR REPORT

30 JUNE 2018

ASX : LEG

ACN: 060 966 145

==> picture [414 x 270] intentionally omitted <==

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

Sturt Desert Pea, Fraser Range
----- End of picture text -----

CONTENTS

COMPANY DIRECTORY

Directors

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

	Page
Company Directory	1
Directors’ Report	2
Consolidated Statement of Comprehensive Income 4
Consolidated Statement of Financial Position	5
Consolidated Statement of Cash Flows	6
Consolidated Statement of Changes in Equity	7
Notes to the Financial Statements	8
Directors’ Declaration	17
Auditor’s Independence Declaration	18
Auditor’s Review Report	19

Company Secretary

Anthony Michael Walsh

Registered Office

Level 1 8 Kings Park Road PO Box 626 WEST PERTH, WA 6005

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

Bankers

Australian and New Zealand Banking Group Ltd 1275 Hay Street WEST PERTH, WA 6005

Auditors

Ernst & Young 11 Mounts Bay Road PERTH, WA 6000

Home Exchange

Web

www.legendmining.com.au

Email

legend@legendmining.com.au

Australian Securities Exchange Ltd Level 40, Central Park 152-158 St George’s Terrace PERTH WA 6000

Share Registry

Advanced Share Registry Services 110 Stirling Highway NEDLANDS, WA 6009

ASX Code

LEG – ordinary shares

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

Lawyers

DLA Piper Level 31, Central Park 152-158 St George’s Terrace PERTH WA 6000

Legend Mining Limited Half Year Report 2018

1

DIRECTORS’ REPORT

The Directors submit their report for the half-year ended 30 June 2018.

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)

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities during the period of the entities within the consolidated entity were exploration for nickel and copper deposits in Australia.

RESULTS OF OPERATIONS

The loss of the consolidated entity for the half-year after tax was $568,326 (2017: $481,577 loss).

REVIEW OF OPERATIONS

Legend continued early stage exploration on the Rockford Project tenements in the Fraser Range District of Western Australia, which included:

• Innovative Moving Loop (“MLTEM”) and Fixed Loop (“FLTEM”) electromagnetic surveys to identify conductive bodies up to 600m below surface in selected areas of known aeromagnetic and gravity character;

• Follow up aircore, reverse circulation (“RC”) and diamond drill programmes to test the previously identified conductors;

• Down hole (DHTEM) electromagnetic surveys to test for offhole conductors;

• Regional aircore drilling programmes to understand regolith and top of fresh rock characteristics in selected areas of known aeromagnetic and gravity character.

As advised in the 2016 Annual Report, the payment terms under the Jindal Agreement were amended in 2015 as follows:

• The $6 million payment originally scheduled for 5 August 2015 is now to be paid in two tranches, $3 million on 15 September 2015 (received in 2015) and a further $3 million that was due on or before 15 December 2016 (see below);

• Interest of 4% payable quarterly in arrears will be payable on the second $3 million; and

• The $5.5 million payable under the Jindal Agreement upon the grant of a Mining Convention at the Cameroon Iron Ore Project (“Project”) is now rescheduled to be paid upon the first commercial shipment of iron ore from the Project.

On 4 January 2017, the Company announced that it had received a request from Jindal Steel and Power (Mauritius) Limited (“Jindal”) to consider a further deferral of the payment of the final amount of $3 million owing to Legend from the sale of the Cameroon Iron Ore project. At that time, Legend agreed to this request in principle, and expected to report as soon as an agreement of new payment terms was reached.

Legend was advised by Jindal in March 2017, that it was undergoing a major debt rescheduling with its creditors and is unable to make any payments to creditors, including Legend, nor finalise any rescheduling of the Legend debt until its own debt rescheduling is complete. At the date of the 2017 Annual Report, Legend had not completed an agreement on new payment terms with Jindal. As a result, out of the abundance of caution and in light of the fact that Jindal did not pay the receivable in December 2016 as

Legend Mining Limited Half Year Report 2018

2

previously agreed, as advised in the 2016 Annual Report, the directors decided to provide for the Jindal receivable in full as at 31 December 2016. Your directors are currently in discussions with Jindal to complete an agreement on revised payment terms for the remaining $3 million due under the Jindal Agreement for the sale of the Cameroon Iron Ore Project.

As at 30 June 2018, Jindal continues to meet its interest payment obligations pursuant to the payment terms under the Jindal Agreement amended in 2015. Since March 2017, each $30,000 quarterly interest payment has been received including the March 2018 and June 2018 interest payments.

EVENTS AFTER THE BALANCE SHEET DATE

No 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.

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 18.

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

==> picture [230 x 42] intentionally omitted <==

________ M Wilson Managing Director

Dated this 5th day of September 2018

Legend Mining Limited Half Year Report 2018

3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 30 JUNE 2018

Notes Finance revenue 3(a) Other income Net (loss)/gain on revaluation of financial assets held for trading Other expenses 3(c) Corporate expenses Impairment of exploration assets Share-based payments expense 13 Net loss before income tax expense Income tax benefit Loss for the period attributable to Owners of Legend Mining Limited Other comprehensive income Total comprehensive loss for the period attributable to Owners of Legend Mining Limited LOSS PER SHARE (cents per share) Basic loss for the period attributable to ordinary equity holders of the parent 4 Diluted loss for the period attributable to ordinary equity holders of the parent 4	CONSOLIDATED 30 Jun 2018 $ 30 Jun 2017 $ 119,687 144,586 - - (90,713) 41,643 (19,806) (7,557) (577,494) (630,373) - (11,376) - (18,500)
	(568,326) (481,577) - -
	(568,326) (481,577)
	- -
	(568,326) (481,577)
	(0.0278) (0.0236) (0.0278) (0.0236)

The accompanying notes form part of these financial statements

Legend Mining Limited Half Year Report 2018

4

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018

Notes ASSETS Current Assets Cash and cash equivalents 6 Trade and other receivables 7 Other financial assets 8 Total Current Assets Non-current Assets Other financial assets 8 Property, plant and equipment 9 Deferred exploration assets 10 Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables 11 Provisions Total Current Liabilities Non-current Liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Equity attributable to equity holders of the parent Contributed equity 12 Reserves Accumulated losses TOTAL EQUITY	CONSOLIDATED As at 30 Jun 2018 $ As at 31 Dec 2017 $ 4,392,834 4,469,964 13,658 39,630 199,154 289,868
	4,605,646 4,799,462
	5,775 5,775 129,233 149,039 9,462,883 9,676,532
	9,597,891 9,831,346
	14,203,537 14,630,808
	189,757 62,580 140,344 131,882
	330,101 194,462
	92,008 86,592
	92,008 86,592
	422,109 281,054
	13,781,428 14,349,754
	60,711,242 60,711,242 23,268,278 23,268,278 (70,198,092) (69,629,766)
	13,781,428 14,349,754

The accompanying notes form part of these financial statements

Legend Mining Limited Half Year Report 2018

5

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2018

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Net cash flows used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Payments for exploration and evaluation Receipt of research and development tax incentive grant Net cash flows (used in)/from investing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of period Cash and cash equivalents at end of period	CONSOLIDATED 30 Jun 2018 $ 30 Jun 2017 $ - - (679,566) (674,733) 145,725 120,310
	(533,841) (554,423) - (37,572) (846,751) (1,033,148) 1,303,462 1,037,085
	456,711 (33,635) (77,130) (588,058) 4,469,964 6,673,674
	4,392,834 6,085,616

The accompanying notes form part of these financial statements

Legend Mining Limited Half Year Report 2018

6

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2018

Consolidated At 1 January 2018 Loss for the period Total comprehensive loss for the period At 30 June 2018 At 1 January 2017 Loss for the period Total comprehensive loss for the period Issue of share capital and options for tenement acquisition Share-based payments At 30 June 2017	Issued Capital Share Option Premium Reserve Accumulated Losses Total Equity $ $ $ $ 60,711,242 23,268,278 (69,629,766) 14,349,754
	- - (568,326) (568,326)
	- - (568,326) (568,326)
	60,711,242 23,268,278 (70,198,092) 13,781,428
	60,588,031 23,208,778 (69,062,698) 14,734,111
	- - (481,577) (481,577)
	- - (481,577) (481,577)
	123,211 41,000 - 164,211 - 18,500 - 18,500
	60,711,242 23,268,278 (69,544,275) 14,435,245

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2018

7

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 1: CORPORATE INFORMATION

The financial report of Legend Mining Limited (the Company) for the half-year ended 30 June 2018 was authorised for issue in accordance with a resolution of the Directors on 5[th] September 2018.

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 nickel and copper deposits in Australia.

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 2017.

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 2018 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 condensed financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. The half-year 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) New Standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2017, except for the adoption of new standards effective as of 1 January 2018. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The Group applies, for the first time, AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments . As required by AASB 134, the nature and effect of these changes are disclosed below.

AASB 15 Revenue from Contracts with Customers

AASB 15 supersedes AASB 111 Construction Contracts , AASB 118 Revenue and related Interpretations and it applies to all revenue arising from contracts with customers, unless those contracts are in the scope of other standards. The new standard establishes a five-step model to account for revenue arising from contracts with customers. Under AASB 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. As the Group is in the exploration and evaluation stage of operations and does not recognise revenue, apart from interest

8

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

revenue, the adoption of this standard does not have an impact on the interim condensed consolidated financial statements of the Group.

AASB 9 Financial Instruments

AASB 9 replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. The adoption of this standard has had no impact on the interim condensed consolidated financial statements of the Group, except for the classification of the Group’s investments in listed equities which was previously classified as held for trading and is now classified as a financial asset at fair value through profit and loss. The change in classification has not resulted in any re-measurement adjustments at 1 January 2018.

(a) Classification and measurement

Under AASB 9, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Under AASB 9, debt financial instruments are subsequently measured at fair value through profit or loss (FVPL), amortised cost, or fair value through other comprehensive income (FVOCI). The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’).

The new classification and measurement of the Group’s debt financial assets is as follow:

• Debt instruments at amortised cost for financial assets that are held within a business model with the objective to hold the financial assets in order to collect contractual cash flows that meet the SPPI criterion. This category includes the Group’s Trade and other receivables.

Other financial assets are classified and subsequently measured, as follows:

• Financial assets at FVPL comprise derivative instruments and quoted equity instruments which the Group had not irrevocably elected, at initial recognition or transition, to classify at FVOCI. This category would also include debt instruments whose cash flow characteristics fail the SPPI criterion or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell. Under AASB 139, the Group’s quoted equity securities were classified as held-fortrading financial assets.

(b) Impairment

The adoption of AASB 9 has fundamentally changed the Group’s accounting for impairment losses for financial assets by replacing AASB 139’s incurred loss approach with a forward-looking expected credit loss (ECL) approach.

AASB 9 requires the Group to record an allowance for ECLs for all loans and other debt financial assets not held at FVPL.

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate.

For Trade and other receivables, the Group has applied the standard’s simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

(c) 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.

9

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 3: REVENUE AND EXPENSES Revenues and expenses from continuing operations a) Finance Revenue Bank interest received and receivable Interest on Jindal receivable (refer note 7(a)) b) Employee Benefits Expense Salaries and On costs Other employee benefits c) Other Expenses Depreciation	CONSOLIDATED 30 Jun 2018 $ 30 Jun 2017 $ 59,687 84,586 60,000 60,000
	119,687 144,586
	247,304 263,279 - 18,500
	247,304 281,779
	19,806 7,557
	19,806 7,557

10

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 4: EARNINGS/(LOSS) PER SHARE (a) Earnings used in the calculation of basic earnings/(loss)per share Net loss 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 earnings/(loss) per share Weighted average number of ordinary shares on issue used in the calculation of diluted earnings/(loss) per share	CONSOLIDATED 30 Jun 2018 $ 30 Jun 2017 $ (568,326) (481,577)
	2,044,350,801 2,040,614,537
	2,044,350,801 2,040,614,537

(c) Information on the classification of options

As the Group has made a loss for the half-year ended 30 June 2018, all options on issue are considered antidilutive and have not been included in the calculation of diluted earnings per share. These options could potentially dilute basic earnings per share in the future.

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 one reportable segment being exploration and evaluation activities in Australia.

NOTE 6: CASH AND CASH EQUIVALENTS Cash at bank and in hand Term deposits Total cash and cash equivalents	CONSOLIDATED 30 Jun 2018 $ 31 Dec 2017 $ 392,834 969,964 4,000,000 3,500,000
	4,392,834 4,469,964

11

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 7: TRADE AND OTHER RECEIVABLES

CONSOLIDATED

Current Other receivables(b) Non-current Receivable from Jindal Mining and Exploration Limited(a) Provision for Jindal receivables	30 Jun 2018 $ 31 Dec 2017 $ 13,658 39,630
	13,658 39,630
	3,005,000 3,005,000 (3,005,000) (3,005,000)
	- -

Terms and conditions relating to the above financial instruments:

• (a) On 4 January 2017, the Company announced that it has received a request from Jindal Steel and Power (Mauritius) Limited (“Jindal”) to consider a further deferral of the payment of the final amount of $3 million owing to Legend from the sale of the Cameroon Iron Ore project. At that time, Legend agreed to this request in principle, and expected to report to the ASX as soon as an agreement of new payment terms was reached. Legend was then advised by Jindal that it is undergoing a major debt rescheduling with its creditors and is unable to make any payments to creditors, including Legend, nor finalise any rescheduling of the Legend debt until its own debt rescheduling is complete. At the date of this report, Legend has yet to complete an agreement on new payment terms with Jindal. Since January 2017, Jindal has continued to pay the 4% interest due on the $3 million owing to Legend each quarter including the March 2018 and June 2018 interest payments.

• (b) Other receivables are interest accruals on Term Deposits.

12

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 8: OTHER FINANCIAL ASSETS Current Share in S2 Resources Limited - at fair value Shares in Nemex Resources Limited - at fair value Security Bond (a) Non-current Rental property bond (b)	CONSOLIDATED 30 Jun 2018 $ 31 Dec 2017 $ 83,154 173,868 66,000 66,000 50,000 50,000
	199,154 289,868
	5,775 5,775

The equity investments are all classified as financial assets at fair value through profit and loss. 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) Security Bond - bank deposit held as security for credit cards. At 30 June 2018, this deposit is held on term deposit for 5 months and 27 days with an interest rate of 2.75% per annum maturing on 24 December 2018.

• (b) Rental Property Bond – this bond relates to a rental property in Kalgoorlie WA. No interest is received on this bond.

13

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 9: PROPERTY, PLANT AND EQUIPMENT

Cost Accumulated depreciation Net carrying amount Movement Opening net carrying amount Additions Depreciation expense Closing net carrying amount NOTE 10: DEFERRED EXPLORATION ASSETS Deferred exploration costs (a) Deferred exploration and evaluation assets At 1 January, at cost Expenditure incurred during the period Reimbursement of exploration expenditure - R&D Rebate At 30 June, at cost (i)		CONSOLIDATED 30 Jun 2018 $ 30 Jun 2017 $ 324,726 324,726 (195,493) (175,687) 129,233 149,039 6 Months Ended 30 Jun 2018 $ 6 Months Ended 30 Jun 2017 $ 149,039 156,479 - 43,282 (19,806) (23,094) 129,233 176,667 CONSOLIDATED 30 Jun 2018 $ 31 Dec 2017 $
		9,462,883 9,676,532
		6 Months Ended 30 Jun 2018 $ 6 Months Ended 30 Jun 2017 $ 9,676,532 7,712,131 1,089,813 1,325,710 (1,303,462) (1,037,085)
		9,462,883 8,000,756

Note:

(i) 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.

14

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 11: TRADE AND OTHER PAYABLES

NOTE 11: TRADE AND OTHER PAYABLES
	30 Jun 2018	31 Dec	2017
Current – unsecured	$	$
Trade payables (i)	169,757		32,580
Other payables and accruals (ii)	20,000		30,000
	189,757		62,580
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.
OTE 12: CONTRIBUTED EQUITY
	CONSOLIDATED	AND COMPANY
	30 Jun 2018	31 Dec	2017
	$	$
Ordinary shares
Issued and fully paid	63,985,375	63,985,375
Issue costs	(3,274,133)	(3,274,133)
	60,711,242	60,711,242
Movement in ordinary shares on issue	30 June 2018	30 June 2018
	No of Shares		$
At 1 January 2018	2,044,350,801	63,985,375
At 30 June 2018	2,044,350,801	63,985,375

NOTE 12: CONTRIBUTED EQUITY

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

NOTE 13: SHARE-BASED PAYMENTS

During the 2018 half-year there were no share-based payment transactions.

15

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2018

NOTE 14: COMMITMENTS

(a) Exploration expenditure commitments

In order to maintain current rights of tenure to exploration tenements, the Group will be required to outlay approximately $2,110,000 (2017: $1,726,500) in the following twelve months in respect of tenement lease rentals and to meet minimum expenditure requirements of the Department of Mines, Industry Regulation and Safety. These obligations are expected to be fulfilled in the normal course of operations and have not been provided for in the financial report.

(b) Operating Lease commitments

The company has negotiated and signed a new lease agreement with the Creasy Group for commitment over its office premises located at Level 1/8 Kings Park Road, West Perth. An initial term of two years commencing on 1 April 2017 and expiring on 31 March 2019 with an option term of a further two years expiring on 31 March 2021. Total rent, including the lease of three car bays, is $64,927.80 per annum.

The company also has a lease commitment over its warehouse located at 2/8 Pauley Court, Boulder. The first year’s rent (being $21,000) was paid in advance to 17 September 2017. The second year of the term is paid monthly in advance and expires on 17 September 2018. Discussions are currently underway to renew the lease for a further term once it expires in September 2018.

NOTE 15: CONTINGENT LIABILITIES

There are no contingent liabilities at the reporting date.

NOTE 16: EVENTS AFTER THE BALANCE SHEET DATE

No 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.

NOTE 17: DIVIDENDS PAID AND PROPOSED

No dividends were paid or proposed this financial period.

NOTE 18: FAIR VALUES

The carrying amounts of the Group’s financial assets and financial liabilities at 30 June 2018 and 31 December 2017 are reasonable approximations of their fair values at those dates.

Management assessed that cash and cash equivalents, trade and other receivables, and trade and other payables approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following table provides the fair value measurement hierarchy of the Group’s assets measured at fair value:

value:
	Date of	Total	Quoted	Significant		Significant
	valuation		prices in	observable		unobservable
			active	inputs		inputs
Asset measured at fair value			market	(Level	2)	(Level 3)
			(Level 1)
	Recurring
Quoted equity investments	30-Jun-2018	149,154	149,154		-	-
(note 8)

There have been no transfers between Level 1 and Level 2 during the period.

The fair value of the financial assets is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of the quoted equity instruments is based on price quotations at the reporting date.

16

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 2018 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.

==> picture [225 x 41] intentionally omitted <==

---

Mark Wilson Managing Director

Dated this 5th day of September 2018

17

AUDITOR’S INDEPENDENCE DECLARATION

==> picture [486 x 686] intentionally omitted <==

18

AUDITOR’S REVIEW REPORT

==> picture [483 x 682] intentionally omitted <==

19

AUDITOR’S REVIEW REPORT

==> picture [483 x 682] intentionally omitted <==

20