LEGEND MINING LIMITED — Interim / Quarterly Report 2019

Jan 29, 2020

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

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ABN Quarter ended (“current quarter”)
22 060 966 145 31 December 2019
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Consolidated statement of cash flows Current quarter Year to date
$A’000 (12months)
$A’000
1. Cash flows from operating activities
1.1 Receipts from customers - -
1.2 Payments for
(a) exploration & evaluation (1,707) (3,563)
- -
(b) development
- -
(c) production
(d) staff costs (63) (264)
(e) administration and corporate costs (184) (557)
-
(f) other once off transaction costs (127)
1.3 Dividends received (see note 3) - -
1.4 Interest received 51 188
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Research and development refunds 1,259 1,259
1.8 Other (provide details if material)
- Once off cost of R&D refund (193) (390)
1.9 Net cash from / (used in) operating
activities (837) (3,454)
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• See chapter 19 for defined terms 30 September 2017

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

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (12months)
$A’000
2. Cash flows from investing activities
2.1 Payments to acquire:
-
(a) property, plant and equipment (4)
- -
(b) tenements (see item 10)
- -
(c) investments
- -
(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)
Payment for Jindal Receivable – as per the
announcement of 8 May 2019 500 500
2.6 Net cash from / (used in) investing
activities 500 496
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 0 9,800
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 (14) (32)
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 13 9,768
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• See chapter 19 for defined terms 30 September 2017

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

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Consolidated statement of cash flows Current quarter Year to date
$A’000 (12months)
$A’000
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 10,534 3,373
4.2 Net cash from / (used in) operating
activities (item 1.9 above) (837) (3,454)
4.3 Net cash from / (used in) investing activities
(item 2.6 above) 500 496
4.4 Net cash from / (used in) financing activities
(item 3.10 above) (14) 9,768
4.5 Effect of movement in exchange rates on
cash held - -
4.6 Cash and cash equivalents at end of
period 10,183 10,183
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 633 2,484
5.2 Call deposits 9,550 8,050
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) 10,183 10,534
Shares held in S2 Resources Limited at
cost 150 150
Total: cash, security deposits and other
liquid assets held at cost at end of
quarter 10,333# 10,684#
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• Market value at 31 December 2019 is $98,273.

Does not include $2.5M receivable from Jindal originally due in December 2016. Jindal continues to pay interest per quarter in a timely manner. During the Quarter $500,000 was received from Jindal, leaving $2.5M receivable at 31 December 2019. Subsequent to the end of the Quarter, $250,000 plus quarterly interest of $32,658 was received from Jindal

• See chapter 19 for defined terms 30 September 2017

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

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	168
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.

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000 Nil Nil

7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

N/A

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Nil Nil Nil Nil
	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

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9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 1,000
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 1,270
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• See chapter 19 for defined terms 30 September 2017

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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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
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Note : See Appendix 1 Tenement Schedule in Quarterly Activities Report for details.

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.

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Sign here: Date: 30 January 2020 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

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