LEGEND MINING LIMITED 2001-07-31 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ 1. Diamond drilling on the Platinum-Palladium Ferguson Reef is scheduled for August following Legend's Agreement with Munni Munni JV partner to increase its share from 30% to 50%. 2. Elizabeth Hill Silver Tailings Dam - Treatment expected to commence this Quarter. 3. Carlow Castle. 4. Radio Hill West - Legend moves to 100%. MUNNI MUNNI JV (LEGEND MINING LIMITED EARNING 50%) On 11th June 2001 Legend entered into an agreement with East Coast Minerals to increase its stake to 50% in the Platinum-Palladium and Silver tenements over the Munni Munni intrusive, south of Karratha, WA. Details of the agreement were previously announced to the ASX on 11th June 2001. The New Joint Venture is aiming for a start in August that will involve site preparation and diamond drilling of at least 15 holes. It is expected that approximately $500,000 will be spent over the next five months drilling the Platinum and Palladium reef known as the Ferguson Reef, with the objective of rapidly moving the project to resource status before the end of the year. The Ferguson Reef currently being drilled by Helix Resources Ltd outcrops on Legend's adjoining ground over a total distance in excess of 4 kilometres, compared to about 5.5 kilometres of outcrop length on Helix's tenements. Helix have announced an indicated and inferred resource of 13.5 million tonnes at a combined Pd+Pt+Au+Rh grade of 3.0g/t over a strike length of 1.35 kilometres and to a vertical depth 800 metres. The JV owns granted mining leases which adjoin the ground owned by Helix whose project is currently being farmed into by Lonmin plc, one of the world's largest Platinum producers. Progress reports will follow in August. ELIZABETH HILL SILVER (LEGEND MINING LIMITED 30%) An announcement is expected this quarter to commence processing of the high grade silver tailings on M47/342, in the northern part of the Munni Munni project area. An independent feasibility study has confirmed a probable ore reserve of 27,086 tonnes of tailings with a silver grade of 1,279g/t equivalent to approximately 1 million ounces of contained silver. CARLOW CASTLE (LEGEND MINING LIMITED 100%) Considerable exploration including RC drilling and costeaning has been carried out over the last year at Carlow. A central high grade core of gold-copper-cobalt mineralisation was successfully defined at Carlow South, within a broader mineralised halo. The previously reported Carlow South resource stands at 1,331,000 tonnes at 1.38g/t Au, 0.56% Co to 100m depth. Contained metal equates to approximately 57,000 ounces of gold and 7,470 tonnes of copper. The resource is classified in accordance with the JORC Code as follows: Main Lode Indicated 30,000 tonnes at 10.0g/t Au 1.40% Cu from surface to 30m depth Inferred 61,000 tonnes at 10.0g/t Au, 1.40% Cu from 30 to 100m depth Total 91,000 tonnes at 10.0% Au, 1.40% Cu from surface to 100m depth. Halo: Inferred 1,240,000 tonnes at 0.75 g/t Au, 0.50% Cu from surface to 100m depth. Detailed ground geophysics over an area of 1.5 square kilometres centred on the Carlow Main/Carlow South area has resulted in definition of twelve First Priority induced polarisation targets and a further nine resistivity targets similar in nature to the high grade Main Lode mineralisation. Legend's exploration over this very promising area is continuing. RADIO HILL WEST (LEGEND MINING LIMITED 100%) Legend has retained 100% of this tenement. Titan Resources advised that they will not proceed with exploration now preferring to concentrate on their successful bug leaching process. The promising nickel sulphide target on the Dingo intrusive previously announced by Titan was re-ranked following airborne geophysics, and has not yet been tested by drilling. M McDonald DIRECTOR The information on exploration results contained in this report is based on information compiled by consulting geologist Mr Frans Voermans FAusIMM, MAIG. Mr Voermans consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. MORE TO FOLLOW LEGEND MINING LIMITED 2001-07-31 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ MINING EXPLORATION ENTITY QUARTERLY REPORT Name of entity Legend Mining Limited ACN or ARBN Quarter ended ("current quarter") 060 966 145 30/06/2001 CONSOLIDATED STATEMENT OF CASH FLOWS Cash flows related to Current Year to date operating activities Quarter (6 months) AUD'000 AUD'000 1.1 Receipts from product sales and related debtors - - 1.2 Payments for (a) exploration and evaluation (36) (63) (b) development (166) (320) (c) production - - (d) administration (96) (171) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 3 11 1.5 Interest and other costs of finance paid (1) (8) 1.6 Silver royalties paid - (45) 1.7 Other - silver sales - 163 Net Operating Cash Flows (296) (433) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects - - (b) equity investments - (2) (c) other fixed assets (6) (7) 1.9 Proceeds from sale of: (a) prospects - - (b) equity investments 36 36 (c) other fixed assets - - 1.10 Loans to other entities (note 3) - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - Net investing cash flows 30 27 1.13 Total operating and investing cash flows (266) (406) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - - 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other - share placement fee - - Net financing cash flows 0 0 Net increase (decrease) in cash held (266) (406) 1.20 Cash at beginning of quarter/ year to date 545 685 1.21 Exchange rate adjustments to item 1.20 - - 1.22 Cash at end of quarter 279 279 PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE RELATED ENTITIES Current Quarter AUD'000 1.23 Aggregate amount of payments to the parties included in item 1.2 20 1.24 Aggregate amount of loans to the parties included in item 1.10 - 1.25 Explanation necessary for an understanding of the transactions - NON-CASH FINANCING AND INVESTING ACTIVITIES 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows - 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest - FINANCING FACILITIES AVAILABLE Add notes as necessary for an understanding of the position. Amount Amount available used AUD'000 AUD'000 3.1 Loan facilities - - 3.2 Credit standby arrangements - - ESTIMATED CASH OUTFLOWS FOR NEXT QUARTER AUD'000 4.1 Exploration and evaluation - 4.2 Development 20 Total 20 RECONCILIATION OF CASH Reconciliation of cash at the end Current Previous of the quarter (as shown in the quarter quarter consolidated statement of cash flows) AUD'000 AUD'000 to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 91 85 5.2 Deposits at call 188 460 5.3 Bank overdraft - - 5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 279 545 CHANGES IN INTERESTS IN MINING TENEMENTS Tenement Nature of Interest at Interest reference interest beginning at end of (note(2)) of quarter quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements acquired or increased - - - - ISSUED AND QUOTED SECURITIES AT END OF CURRENT QUARTER Description includes rate of interest and any redemption or conversion rights together with prices and dates. Category of Number Number Par value Paid-up securities issued quoted (cents) value (cents) 7.1 Preference securities (description) - - - - 7.2 Issued during quarter - - - - 7.3 Ordinary securities 32,968,005 32,968,005 20 20 7.4 Issued during quarter - - - - 7.5 Convertible debt securities (description) - - - - 7.6 Issued during quarter - - - - 7.7 Options Exercise Expiry (description) price date (cents) 30,643,750 30,643,750 20 31/03/2002 7.8 Issued during quarter - - - - 7.9 Exercised during quarter - - - - 7.10 Expired during quarter - - - - 7.11 Debentures (totals only) - - 7.12 Unsecured notes (totals only) - - ADDITIONAL INFORMATION The legal dispute concerning the Munni Munni operation with Joint Venture partner East Coast Minerals NL was amicably resolved between the parties on 13/06/2001. (See ASX Announcements 11/06/2001). Legend is currently undertaking a capital raising to raise funds for further development of Munni Munni. COMPLIANCE STATEMENT 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX. 2 This statement does give a true and fair view of the matters disclosed. G Ledger Date: 24/07/2001 COMPANY SECRETARY