LEGEND MINING LIMITED — Interim / Quarterly Report 2009

Sep 8, 2009

A.C.N. 060 966 145

HALF-YEAR REPORT 30 JUNE 2009

COMPANY DIRECTORY

CONTENTS

Directors

	Page	Page
Company Directory		1
Directors’ Report		2
Condensed Statement of Comprehensive Income		4
Condensed Statement of Financial Position		5
Condensed Consolidated Cash Flow Statement		6
Condensed Consolidated Statement of Changes in
Equity		7
Notes to the Financial Statements		8
Director’s Declaration	16
Declaration of Auditor Independence	17
Independent Auditor’s Review Report	18

Michael William Atkins (Chairman) Mark William Wilson (Managing Director) Dermot Michael Ryan (Non-executive Director)

Company Secretaries

Tony Walsh Brett White

Registered Office

Level 2 640 Murray Street PO Box 626 WEST PERTH, WA 6005

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

Bankers

National Australia Bank 1232 Hay Street WEST PERTH, WA 6005

Auditors

Stantons International Level 1, 1 Havelock Street WEST PERTH, WA 6005

Home Exchange

Web

www.legendmining.com.au

Email

legend@legendmining.com.au

Australian Securities Exchange Ltd 2 The Esplanade PERTH WA 6000

Share Registry

Advanced Share Registry Services 110 Stirling Highway NEDLANDS, WA 6009

ASX Codes

LEG – ordinary shares

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

Lawyers

Pullinger Readhead Lucas Level 1, Fortescue House 50 Kings Park Road WEST PERTH, WA 6005

Legend Mining Limited Half-Year Report 2009

1

DIRECTORS’ REPORT

The Directors submit their report for the half-year ended 30 June 2009.

DIRECTORS

The names and details of the Company’s Directors in office 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)

Dermot Ryan (Non Executive Director)

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities during the period of the entities within the consolidated entity were:-

• Exploration for gold and base metal (zinc-copper-gold, nickel-copper, zinc-copper and copper-gold) deposits.

• At 1 January 2009, Legend Mining Limited (“Legend”) held 3,400,000 shares in Independence Group NL (“IGO”), a listed entity on the Australian Securities Exchange. During the period, Legend sold 1,500,000 shares in IGO for $4,965,358. At 30 June 2009, Legend held 1,900,000 shares in IGO valued at $8,797,000.

• During the period, Legend acquired 10,000,000 shares in Apex Minerals (“AXM”) at a total cost of $2 million. Apex Minerals is listed on the Australian Securities Exchange. Legend also entered into a sub-underwriting agreement which entitles Legend a priority position in any shortfall in the Apex rights issue. In June 2009, Legend acquired a further 15,000,000 shares in AXM as per subunderwriting agreement. At 30 June 2009, Legend held 25,000,000 shares in AXM valued at $3,875,000.

RESULTS OF OPERATIONS

The profit of the consolidated entity for the half-year after tax was $3,952,802 (2008: loss $219,793) after income tax.

REVIEW OF OPERATIONS

1. This half year saw Legend’s projects being progressed in an orderly manner. In summary: Legend is exploring the Pilbara, Mt Gibson and Gum Creek Projects. Drill programs, soil sampling and geophysical surveys are some of the techniques being employed to consistently develop new drill targets. Work on the ground at the Pilbara Project has been stalled by the negotiation process of a Heritage Agreement with the relevant Native Title landholder body.

2. The mining operations at the Mt Gibson project remain on care and maintenance and the Company has instigated the sale of the items of value from the processing plant with a view to scrapping the remainder and rehabilitating the site with a view to reducing the Environmental bond liability.

The accommodation camp has been rented to Extension Hill Pty Ltd for $500,000 per year for a three year period commencing 4 August 2008.

Legend Mining Limited Half-Year Report 2009

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AUDITOR’S INDEPENDENCE

The Auditor’s Independence Declaration under S307C of the Corporations Act 2001 has been received from Stantons International, the Company’s Auditor, and is available for review on page 17.

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

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________ M Wilson Managing Director

Dated this 8[th] day of September 2009

Legend Mining Limited Half-Year Report 2009

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CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT FOR THE HALF-YEAR ENDED 30 JUNE 2009

Notes Continuing Operations Rental revenue 3(a) Finance revenue 3(b) Other income 3(c) Net gain/(loss) on revaluation of financial assets held for trading 3(g) Deferred exploration expenditure written off 3(e) Other expenses 3(f) Corporate head office expenses Finance costs Net profit / (loss) from continuing operations before income tax expense Income tax benefit/ (expense) Profit / (Loss) from continuing operations for the period Other comprehensive income Total comprehensive income / (loss) for the period Comprehensive income / (loss) attributable to: Members of the parent entity PROFIT/(LOSS) PER SHARE (cents per share) Basic profit/(loss) for the period 4 Diluted profit/(loss) for the period 4	CONSOLIDATED As at 30-Jun-09 $ As at 30-Jun-08 $ 250,000 10,143 147,125 438,828 2,157,420 129,199 3,568,000 - (54) (55,562) (70,075) (75,534) (489,471) (640,190) (13,900) (26,677)
	5,549,045 (219,793) (1,596,243) -
	3,952,802 (219,793) - -
	3,952,802 (219,793)
	3,952,802 (219,793)
	0.327 0.019 0.326 0.019

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2009

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2009

Notes ASSETS Current Assets Cash and cash equivalents 6 Trade & other receivables Prepayments Other financial assets 7 Total Current Assets Non-current Assets Deferred tax asset Other financial assets 7 Property, plant & equipment 8 Deferred exploration costs 9 Total Non-current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade & other payables 10 Income tax payable Provisions - employees Total Current Liabilities Non-current Liabilities Provisions for long service leave Provisions for rehabilitation Deferred tax liability Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Equity attributable to equity holders of the parent Contributed equity 11 Share option premium reserve Accumulated losses TOTAL EQUITY	CONSOLIDATED As at 30-Jun-09 $ As at 31-Dec-08 $ 4,851,463 5,002,686 114,409 228,470 56,774 12,464 12,672,000 7,344,000
	17,694,646 12,587,620
	675,932 1,286,421 1,545,058 1,543,602 363,401 450,834 5,325,289 4,729,807
	7,909,680 8,010,664
	25,604,326 20,598,284
	233,887 176,469 8,844 - 46,861 42,327
	289,592 218,796
	30,954 26,711 1,478,924 1,477,468 2,559,605 1,559,497
	4,069,483 3,063,676
	4,359,075 3,282,347
	21,245,251 17,315,812
	36,309,778 36,333,141 3,241,607 3,241,607 (18,306,134) (22,258,936)
	21,245,251 17,315,812

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2009

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2009

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Payment for exploration and evaluation Interest received Interest paid Net cash flows used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant & equipment & scrap Proceeds from sale of investments Purchase of property, plant & equipment Purchase of investments Payment for performance bonds Dividends Received Net cash flows from/ (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / (refunds) from issue of ordinary shares Proceeds from shares to be issued Net cash flows from / (used in) financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of period Cash and cash equivalents at end of period	CONSOLIDATED As at 30-Jun-09 $ As at 30-Jun-08 $ 312,413 139,032 (322,170) (310,174) (595,536) (1,187,235) 147,125 423,069 (13,900) (14,579)
	(472,068) (949,887)
	287,652 10,000 4,965,358 - - (78,440) (5,000,000) - - 3,592 68,000 -
	321,010 (64,848)
	(165) 46,418 - 6,400
	(165) 52,818
	(151,223) (961,917) 5,002,686 11,913,555
	4,851,463 10,951,638

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2009

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2009

Consolidated At 1 January 2009 Total comprehensive income for the period Sub-total Refund for overpayment of option Exercise of share options Cost of issue of share capital At 30 June 2009 At 1 January 2008 Total comprehensive income for the period Sub-total Issue of options Exercise of share options Cost of issue of share capital Return of capital At 30 June 2008	Issued Capital Shares to be issued Share Option Premium Reserve $ $ $ 36,333,141 - 3,241,607 - - -	Equity Revaluation Reserve $ - -	Accumulated Losses Total Equity $ $ (22,258,936) 17,315,812 3,952,802 3,952,802
	36,333,141 - 3,241,607 (165) - - - - - (23,198)* - -	- - - -	(18,306,134) 21,268,614 - (165) - - - (23,198)
	36,309,778 - 3,241,607	-	(18,306,134) 21,245,251
	36,385,772 - 3,192,481 - - -	237,936 -	(19,346,571) 20,469,618 (219,793) (219,793)
	36,385,772 - 3,192,481 - - 49,126 46,418 6,400 - 195,968 - - (83,089) - -	237,936 - - - (237,936)	(19,566,364) 20,249,825 - 49,126 - 52,818 - 195,968 - (321,025)
	36,545,069 6,400 3,241,607	-	(19,566,364) 20,226,712

• This is related to the movement in the deferred taxation cost on the capital raising costs

The accompanying notes form part of these financial statements

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 1: CORPORATE INFORMATION

The financial report of Legend Mining Limited (the Company) for the half-year ended 30 June 2009 was authorised for issue in accordance with a resolution of the Directors on 07 September 2009.

Legend Mining Limited is a company incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.

The nature of the operations and principal activities of the Group are described in the Directors’ Report.

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 2008.

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 2009 in accordance with the continuance disclosure obligations arising under the Corporations Act 2001.

(a) Basis of preparation

The half-year consolidated financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Australian Accounting Standards including AASB 134 Interim Financial Reporting and other mandatory professional reporting requirements. The half-year report has been prepared on a historical cost basis except for certain financial instruments which have been measured at fair value. Compliance with Australian Accounting Standards ensures that the financial statements and notes comply with International Financial Reporting Standards (“IFRS”).

The 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) Adoption of new and revised Accounting Standards

The Company has adopted all new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply to the current interim period. Disclosures required by these Standards that are deemed material have been included in this financial statement on the basis that they represent a significant change in information from that previously made available and are detailed below.

Presentation of Financial Statements

AASB 101 prescribes the contents and structure of financial statements. Changes reflected in this financial report include:

• the replacement of the Income Statement with the Statement of Comprehensive Income. Items of income and expense not recognised in profit or loss are now disclosed as components of ‘other comprehensive income’. In this regard, such items are no longer reflected as equity movements in the Statement of Changes in Equity;

• the adoption of the single statement approach to the presentation of the Statement of Comprehensive Income; and

• other financial statements are renamed in accordance with the Standard.

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

Other accounting standards which are effective for this accounting period include AASB 3 - Business Combinations and AASB 8 – Operating segments. These accounting standards do not have any impact on the current financial statements as the group had no business combinations in the period.

The group has continued to operate in one business segment (Mining Exploration) and in one geographical region (Australia).

New and revised Standards and Interpretations issued but not yet applicable are not expected to have a significant impact on the financial position or performance of the consolidated entity.

(c) Significant accounting policies

The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2008.

(d) Basis of consolidation

The half-year consolidated financial statements comprise the financial statements of Legend Mining Limited and its subsidiaries as at 30 June 2009 (‘the Group’).

(e) Estimates

The preparation of the interim 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.

In preparing this consolidated interim financial report, the significant judgements made by management in applying the consolidated entity’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report as at and for the year ended 31 December 2008.

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 3: REVENUE AND EXPENSES Revenues and expenses from continuing operations a) Rental Revenue Rental revenue b) Finance Revenue Bank interest received and receivable c) Other Income Profit on sale of plant & equipment Profit on share trading Dividends received Underwriting fees Field work completed by Legend geologists Refunds from DOIR d) Employee Benefits Expense Salaries & On costs Share based payments Other employee benefits e) Deferred Exploration Expenditure written off Write off of deferred exploration expenditure f) Other Expenses Depreciation Loss on sale of plant & equipment g) Net gain/(loss) on revaluation of Investments Fair value revaluation on Independence Group NL shares Fair value revaluation on APEX Group NL shares	CONSOLIDATED 30-Jun-09 $ 30-Jun-08 $ 250,000 10,143
	147,125 438,828
	270,294 - 1,725,358 - 68,000 - 90,000 - 3,768 40,038 - 89,161
	2,157,420 129,199
	272,171 123,878 - 49,126 4,263 2,715
	276,434 175,719
	54 55,562
	70,075 75,025 - 509
	70,075 75,534
	4,693,000 - (1,125,000) -
	3,568,000 -

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 4: LOSS PER SHARE (a) Reconciliation of earnings to net profit / (loss): Net Profit/(Loss) Earnings used in the calculation of basic earnings / (loss) per share (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

30-Jun-09 $ 30-Jun-08 $ 3,952,802 (219,793) 3,952,802 (219,793)

1,209,350,801 1,172,335,738 1,209,350,801 1,172,335,738

NOTE 5: SEGMENT INFORMATION

The Consolidated entity operates in one business and geographical segment, being the mining and exploration for gold and base metals (nickel-copper-zinc) in Australia.

NOTE 6: CASH AND EQUIVALENTS Cash at bank and in hand Short tem deposits Total cash and cash equivalents NOTE 7: OTHER FINANCIAL ASSETS Current Shares in Independence Group NL at market value Shares in Apex Minerals NL at market value Non-current Performance and other bonds(a)	Consolidated 30-Jun-09 $ 31-Dec-08 $ 1,851,463 2,002,686 3,000,000 3,000,000 4,851,463 5,002,686
	Consolidated 30-Jun-09 $ 31-Dec-08 $ 8,797,000 7,344,000 3,875,000 -
	12,672,000 7,344,000
	1,545,058 1,543,602

(a) Terms and conditions relating to the above financial instruments

• Non-Current Rehabilitation/Performance bonds– bank deposits were held as security for rehabilitation and credit cards, as a security deposit for the premises rented and as security for joint venture assets. These bonds were held on 90 day term deposits at 4.30%, 183 day term deposit at 2.20% and on 12 months at 8.20%.

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 8: PROPERTY, PLANT AND EQUIPMENT

Consolidated At 1 January 2009, net of accumulated depreciation Additions Disposals Depreciation expense At 30 June 2009, Net of accumulated depreciation At 1 January 2009 Cost Accumulated depreciation Net carrying amount At 30 June 2009 Cost Accumulated depreciation Net carrying amount Consolidated At 1 January 2008, net of accumulated depreciation Additions Disposals Depreciation expense At 31 December 2008, Net of accumulated depreciation At 1 January 2008 Cost Accumulated depreciation Net carrying amount At 31 December 2008 Cost Accumulated depreciation Net carrying amount	Buildings $ Plant and equipment $ Total $ 106,515 344,319 450,834 - - - - (17,358) (17,358) (28,404) (41,671) (70,075)
	78,111 285,290 363,401
	284,040 706,276 990,316 (177,525) (361,957) (539,482)
	106,515 344,319 450,834
	284,040 643,156 927,196 (205,929) (357,866) (563,795)
	78,111 285,290 363,401
	163,323 371,934 535,257 - 78,440 78,440 - (10,199) (10,199) (56,808) (95,856) (152,664)
	106,515 344,319 450,834
	284,040 1,110,537 1,394,577 (120,717) (738,603) (859,320)
	163,323 371,934 535,257
	284,040 706,276 990,316 (177,525) (361,957) (539,482)
	106,515 344,319 450,834

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 9: DEFERRED EXPLORATION COSTS Deferred exploration and evaluation Deferred mining information (a) Deferred exploration and evaluation costs At 1 January, at cost Expenditure incurred during the period Expenditure written off during the period (ii) At 30 June, at cost (iii) (b) Deferred Mining Information At 1 January, at cost At 30 June, at cost (iii)	Consolidated 30-Jun-09 $ 31-Dec-08 $ 3,652,786 3,057,304 1,672,503 1,672,503
	5,325,289 4,729,807
	30-Jun-09 $ 30-Jun-08 $ 3,057,304 7,631,050 595,536 1,187,235 (54) (55,562)
	3,652,786 8,762,723
	1,672,503 1,672,503
	1,672,503 1,672,503

Note :

(i) As part of the continuing tenement rationalisation, Legend Mining Limited lodged new tenement applications over areas covered by Gidgee Resources Limited tenement application. Expenditure allocated to these Gidgee Resources Limited tenements was reassigned to the new tenement applications.

• (ii) Carrying values for certain tenements were reviewed and subject to the following conditions being met;

• (1) no substantive expenditure for further exploration in the specific areas has been budgeted for;

(2) exploration for and evaluation of mineral resources in the specific area has not led to the discovery of commercially viable quantities of mineral resources;

it was decided to discontinue such activities in the specific areas.

• (iii) 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.

NOTE 10: TRADE AND OTHER PAYABLES

Current – unsecured Trade payables Other payables & accruals	30-Jun-09 $ 31-Dec-08 $ 63,290 24,941 170,597 151,528 233,887 176,469

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.

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 11: CONTRIBUTED EQUITY

Consolidated and Company

Ordinary shares Issued and fully paid Issue costs Movement in ordinary shares on issue 2009 At 1 January 2009 Issued in period 31-March-09 Refund for overpayment of options 17-April-09 Refund for overpayment of options	30-Jun-09 $ 31-Dec-08 $ 37,961,385 37,961,550 (1,651,607) (1,628,409)
	36,309,778 36,333,141
	30-Jun-09 $ 1,209,350,801 37,961,550
	- (82) - (83)
	1,209,350,801 37,961,385

Effective 1 July 1998, the Corporations legislation in place abolished the concept of authorised share capital and par value shares. Accordingly the Company does not have authorised capital nor par value in respect of its issued shares.

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

NOTE 12: RELATED PARTY DISCLOSURES

• (i) Wholly-owned group transactions

Loans made by Legend Mining Limited to wholly-owned subsidiaries are repayable on demand and are not interest bearing.

(ii) Other related party transactions

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

(iii) Ultimate parent

Legend Mining Limited is the ultimate parent company.

(iv) Loans to related parties

Legend Mining Limited have advanced/ (received) the following loans to/ (from) its subsidiary companies during the half-year ended 30 June 2009.

	As at	As at
	30-Jun-09	31-Dec-08
	$	$
Gibson Metals Pty Ltd	(193,715)	511,039
Armada Mining Limited	(182,452)	681,175
Gidgee Resources Limited	-	-

Legend Mining Limited Half-Year Report 2009

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2009

NOTE 13: COMMITMENTS

(a) Exploration expenditure commitments.

In order to maintain current rights of tenure to exploration tenements, the Group will be required to outlay approximately $1,566,290 in the following 12 months, (previous 12 months: $642,200) in respect of tenement lease rentals and to meet minimum expenditure requirements of the Department of Mines & Petroleum. These obligations are expected to be fulfilled in the normal course of operations and have not been provided for in the financial report.

This is the maximum commitment to exploration, to fully meet DMP requirements. In practice, Legend has routinely applied for and been granted exemptions from meeting these requirements on a tenement by tenement basis. As a result the actual amount required to be expended on exploration is expected to be less than $1,566,290, while still holding all the tenements in good standing.

NOTE 14: CONTINGENT LIABILITIES

There has been no material change of any contingent liabilities during the half-year.

No other 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.

The consolidated entity’s activities in Australia are subject to the Native Titles Act and the Department of Environment. Uncertainty associated with Native Title issues may impact on the consolidated entity’s future plans.

There are no unresolved Native Title issues and the consolidated entity is not aware of any other matters that may impact upon its access to the land that comprises its project areas.

NOTE 15: EVENTS AFTER THE BALANCE SHEET DATE

As at 7 September 2009 the valuation of the investments was as follows:

Independence Group NL, $4.55 per share or a loss of $0.08 per share since 30 June 2009 representing a net loss before tax of $152,000.

APEX Minerals $0.099 per share or a loss of $0.056 per share since 30 June 2009 representing a net loss before tax of $1,400,000.

As at the date of this report there are no subsequent significant events after the balance date other than those described above.

On 4 September Legend announced it had signed a Heads of Agreement with Camina SA, a company incorporated in Cameroon, for the right to explore on granted tenements in Cameroon subject to all regulatory approvals. If the required results were achieved during this exploration phase, Legend would have the opportunity to purchase 90% of Camina.

NOTE 16: DIVIDENDS PAID AND PROPOSED

No dividends were paid or proposed this financial period.

There are no franking credits available for future reporting periods.

Legend Mining Limited Half-Year Report 2009

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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 2009 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.

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Mark Wilson Managing Director

Dated this 08 September 2009

Legend Mining Limited Half-Year Report 2009

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8 September 2009

Board of Directors Legend Mining Limited Level 2, 640 Murray Street WEST PERTH WA 6005

Dear Directors

RE: LEGEND MINING LIMITED

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Legend Mining Limited.

As the Audit Director for the review of the financial statements of Legend Mining Limited for the half year ended 30 June 2009, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

Yours sincerely STANTONS INTERNATIONAL (Authorised Audit Company)

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J P Van Dieren Director

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF LEGEND MINING LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Legend Mining Limited, which comprises the condensed statement of financial position as at 30 June 2009, and the condensed statement of comprehensive income, condensed statement of changes in equity, and condensed statement of cash flows for the half-year ended on that date, a condensed statement of accounting policies, other selected explanatory notes and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of Legend Mining Limited (the Company) are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standards on Review Engagements ASRE 2410 Review of Interim Financial and Other Financial Reports Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Company’s financial position as at 30 June 2009 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Legend Mining Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , has been provided to the directors of Legend Mining Limited on 08 September 2009.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Legend Mining Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Company’s financial position as at 30 June 2009 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standards AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

STANTONS INTERNATIONAL

(An Authorised Audit Company)

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John P Van Dieren Director

West Perth, Western Australia 08 September 2009

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