LEGEND MINING LIMITED 2002-10-30 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ * Legend raises $500,000 in combined equity and debt funding. * Deeper drilling on the Munni Munni silver deposit will commence on approximately the 7th of November 2002. This is the first programme of deeper RC drilling for extensions down plunge and under the original Silver Pod. * Results of detailed ground work completed in October 2002 on the Karratha Gold and Base Metals Project (approximately 675sqkm in area) will be released as soon as received. * There is potential for additional resources at the high grade Carlow Castle Project (current resource 91,000t @ l0g/t Au 1.4% Cu). 1. ELIZABETH HILL MUNNI MUNNI JOINT VENTURE (LEGEND EARNING 50%) As announced during the Quarter, the Joint Venture has agreed to commence a programme of deeper RC drilling for silver at the Elizabeth Hill mine, 40 kms south of Karratha, where 2.5 million ounces has already been mined from a single high-grade pod. A total of 4,000m will be drilled to target further high-grade mineralisation extending down-plunge from the mine and to follow-up new targets generated nearby during recent exploration and shallow drilling. Although mining operations commenced in 1998, this will be the first drilling programme to test for extensions of the silver at depth. This programme forms part of the exploration commitment under which Legend may increase to 50% equity in the Joint Venture, as announced on the 14th of August 2002. The drilling will commence on approximately the 7th of November 2002 over a three week period. 2. MAITLAND (LEGEND 100%) Target selection continued during the quarter, based on evaluation of detailed aeromagnetics, TEMPEST airborne electromagnetics, detailed photogeological studies and structural interpretation. Fieldwork to further investigate the silver mineralisation potential of these selected zones will commence immediately on granting of the exploration licence, which includes the continuation of the Munni Munni fault north of the Elizabeth Hill Mine. 3. EMERALD JOINT VENTURE (LEGEND 91%) Hamill Resources Ltd is earning up to 80% over two years by exploring for high-grade gold mineralisation at Emerald, north west of Kalgoorlie between Mount Ida and the First Hit gold mine of Barra Resources. Evaluation of aeromagnetic data was conducted by Hamill during the Quarter, together with ongoing regional reconnaissance. 4. KARRATHA GOLD AND BASE METAL PROJECTS Legend now controls an area of approximately 675sqkm commencing west of Radio Hill and extending to Roebourne. Legend owns 100% of most of the tenements and is earning up to 10% on the remainder. ORPHEUS AND SHOLL (LEGEND 100%) Exploration for gold and VMS base metals continued on these two contiguous exploration licences, along and south of the Sholl Shear Zone, during the Quarter. A programme of mapping and sampling to improve definition of mineralisation controls at six separate prospects commenced early in October 2002, and results will be reported as they become available. One of the new gold prospects is at Crossroads, adjacent to the regional east-west shear zone and occurring in cherts and mafic volcanics similar to those hosting the Carlow mineralisation. The target zone includes a broad area of metal detecting and grading, located near the Cherrata road. Mapping and rock sampling on the Sholl tenement to locate a bedrock source for the Golden Reef alluvials commenced in October 2002. These shallow workings adjacent to and just outside Legend's boundary have reportedly produced several thousand ounces of gold nuggets since discovery in the mid-1980's. Further sampling and mapping of base and precious metal-enriched gossanous zones, which extend over 10 kilometres strike length of the Orpheus Shear, was also commenced during October 2002. The target is VMS style deposits, similar to those at Whim Creek and Panorama in the Pilbara and at Golden Grove, Teutonic Bore and Jaguar in the Yilgarn. CARLOW CASTLE, MINE WELL, RAILWAY (LEGEND 100%) Regional reconnaissance over these projects has identified several additional zones which are considered to have potential for gold and gold-copper mineralisation similar to the resources already defined at Carlow. Rock chip sampling traverses and mapping were planned during the Quarter and commenced in October 2002. Several areas of broad alteration quartz veining and structural complexity were investigated. The high-grade resource at Carlow South (previously reported as containing 91,000t at 10.0g/t Au in the indicated and inferred categories) has been evaluated for further drilling, with the objective of extending the known mineralisation which has yet to be closed off along strike and at depth. 5. ARMADA MINING LIMITED Legend is reviewing the issue of the Prospectus subject to market conditions. 6. FINANCING LAMEAD HOLDINGS PTY LTD Legend Mining Limited has finalised an agreement with Lamead Holdings Pty Ltd whereby Lamead has taken a placement of 500,000 shares in Legend Mining Ltd at a price of 7 cents ($35,000) approximately 75% premium on the stock price of today. Lamead Holdings Pty Ltd has advanced by loan, $215,000 to Legend Mining Limited. (Details refer to Form 5B). YANDAL INVESTMENTS PTY LTD Legend Mining Limited has also finalised an agreement with Yandal Investments Pty Ltd whereby Yandal has advanced the sum of $250,000 in respect of Legend's Munni Munni silver deposit exploration programme. (Details refer to Form 5B). M McDonald DIRECTOR MORE TO FOLLOW LEGEND MINING LIMITED 2002-10-30 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ APPENDIX 5B MINING EXPLORATION ENTITY QUARTERLY REPORT Name of entity Legend Mining Limited ABN Quarter ended ("current quarter") 22 060 966 145 30/09/2002 CONSOLIDATED STATEMENT OF CASH FLOWS Cash flows related to Current Year to date operating activities Quarter (9 months) AUD'000 AUD'000 1.1 Receipts from product sales and related debtors - - 1.2 Payments for (a) exploration and evaluation (283) (618) (b) development - - (c) production - - (d) administration (127) (282) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature received 2 8 1.5 Interest and other costs of finance paid - (8) 1.6 Income taxes paid - - 1.7 Other (provide details if material) - - Net Operating Cash Flows (408) (900) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects - - (b) equity investments (2) (12) (c) other fixed assets - - 1.9 Proceeds from sale of: (a) prospects - 688 (b) equity investments - 32 (c) other fixed assets - - 1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - - Net investing cash flows (2) 708 1.13 Total operating and investing cash flows (410) (192) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - 362 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings (71) (167) 1.18 Dividends paid - - 1.19 Other - share placement fee - - Net financing cash flows (71) 195 Net increase (decrease) in cash held (481) 3 1.20 Cash at beginning of quarter/ year to date 697 213 1.21 Exchange rate adjustments to item 1.20 - - 1.22 Cash at end of quarter 216 216 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 81 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 POST QUARTER EVENTS (a) Lamead Holdings Pty Ltd has advanced by interest free loan $215,000 payable by 30/09/2003 with an option to convert $90,000 of the $215,000 to shares based on a three month weighted average price at the conversion date. If not converted, $215,000 is repayable. (b) Yandal Investments Pty Ltd has loaned Legend $250,000. The loan at 12% pa is repayable by 30/11/2003 and at Yandal's option may be repaid by placement of up to $250,000 @ 10 cents each and/or sale of silver specimens. Legend has charged its share over tenements M47/342 and M47/343 as security. 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 50 4.2 Development - Total 50 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 17 182 5.2 Deposits at call 199 515 5.3 Bank overdraft - - 5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 216 697 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 PERIOD Description includes rate of interest and any redemption or conversion rights together with prices and dates. Amount Issue Paid-up price per per security security (see (see Category of Total Number note 3) note 3) securities Number quoted (cents) (cents) 7.1 Preference securities (description) - - - - 7.2 Changes during quarter (a) increases through issues - - - - (b) decreases through returns of capital buybacks, redemptions - - - - 7.3 Ordinary securities 41,734,665 41,734,665 - - 7.4 Changes during quarter (a) increases through issues - - - - (b) decreases through returns of capital buybacks - - - - 7.5 Convertible debt securities (description) - - - - 7.6 Changes during quarter (a) increases through issues - - - - (b) decreases through securities matured, converted - - - - 7.7 Options (description Exercise Expiry and conversion factor) price date (cents) LEGA1 2,350,000 - 22 30/05/2006 LEGO 36,189,207 36,189,207 15 30/04/2005 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) - - 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: 30/10/2002 COMPANY SECRETARY