----

----

| x                                                              |     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE     |
|----------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
|                                                           |     ACT OF 1934                                                                  |
| For the fiscal year ended: December 31, 2010                   |
| or                                                             |
|                                                           |                                                                                            |
|                                                           |     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|                                                           |     ACT OF 1934                                                                  |
| For the transition period from: _____________ to _____________ |

| Delaware                          |   | 23-3067904          |
|-----------------------------------|--------|---------------------|
| (State or Other Jurisdiction      |   | (I.R.S. Employer    |
| of Incorporation or Organization) |   | Identification No.) |

| Securities registered pursuant to Section 12(b) of the Act: None |
|------------------------------------------------------------------|
|                                                             |   |   |
|                                                             |   |   |
|                                                             |   |   |
|                                                             |   |   |
| Securities registered pursuant to Section 12(g) of the Act:      |
|                                                             |   |   |
| Title of each class                                              |
| Common Stock, par value $.001 per share                          |
|                                                             |
|                                                             |   |   |

| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. |
|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |   |  Yes | x |  No |
|                                                                                                                         |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. |
|                                                                                                                         |   |  Yes | x |  No |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | x |  Yes |   |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for any such shorter period that the registrant was required to submit and post such file).*The registrant has not yet been phased into the interactive data requirements. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  Yes |   |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   | Accelerated filer | x |   |
| Non-accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   | Smaller reporting company |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of   the Act).                                                                                                                                                                                                                                                                                                                                                     |   |  Yes | x |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| The aggregate market value based on the average bid and asked price on the over-the-counter market of the Registrant’s common stock, (“Common Stock”) held by non-affiliates of the Company was US$134,064,506 as at June 30, 2010. There were 226,399,674 outstanding shares of Common Stock as of March 15, 2011.                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY                                                                                                                                                                                                                                                                                                                                                                                                                        |
| PROCEEDINGS DURING THE PRECEDING FIVE YEARS:                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  Yes |   |  No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Not Applicable                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

----

----

| INDEX      |                                                                                                                     |
|------------|--------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                     |
| PART I     |                                                                                                                     |
|       |                                                                                                                     |   |   |   |   |
| Item 1.    | Business.                                                                                                                |   |   | 1 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 1A.   | Risk Factors.                                                                                                            |   |   | 37 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 1B.   | Unresolved Staff Comments.                                                                                               |   |   | 40 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 2.    | Properties.                                                                                                              |   |   | 41 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 3.    | Legal Proceedings.                                                                                                       |   |   | 41 |   |
|       |                                                                                                                     |   |   |   |   |
| PART II    |                                                                                                                     |
|       |                                                                                                                     |   |   |   |   |
| Item 4.    | Market for Registrant’s Common Equity, Related Stockholder Matters andIssuer Purchases of Equity Securities.  |   |   | 42 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 5.    | Selected Financial Data.                                                                                                 |   |   | 47 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 6.    | Management’s Discussion and Analysis of Financial Condition and Results of Operation.                              |   |   | 48 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 7.    | Quantitative and Qualitative Disclosures About Market Risk.                                                              |   |   | 57 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 8.    | Financial Statements and Supplementary Data.                                                                             |   |   | 58 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 9.    | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.                                    |   |   | 58 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 9A.   | Controls and Procedures.                                                                                                 |   |   | 58 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 9B.   | Other Information.                                                                                                       |   |   | 60 |   |
|       |                                                                                                                     |   |   |   |   |
| PART III   |                                                                                                                     |
|       |                                                                                                                     |   |   |   |   |
| Item 10.   | Directors, Executive Officers and Corporate Governance.                                                                  |   |   | 61 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 11.   | Executive Compensation.                                                                                                  |   |   | 65 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 12.   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.                          |   |   | 72 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 13.   | Certain Relationships and Related Transactions, and Director Independence.                                               |   |   | 74 |   |
|       |                                                                                                                     |   |   |   |   |
| Item 14.   | Principal Accounting Fees and Services.                                                                                  |   |   | 76 |   |
|       |                                                                                                                     |   |   |   |   |
| PART IV    |                                                                                                                     |
|       |                                                                                                                     |   |   |   |   |
| Item 15.   | Exhibits, Financial Statement Schedules.                                                                                 |   |   | 77 |   |
|       |                                                                                                                     |   |   |   |   |
| SIGNATURES |                                                                                                                     |   |   | 78 |   |

----

PART I

|   | § | the risks of mineral exploration stage projects, |
|--------|--------|--------------------------------------------------|

|   | § | political risks in foreign countries, |
|--------|--------|---------------------------------------|

|   | § | risks associated with environmental and other regulatory matters, |
|--------|--------|-------------------------------------------------------------------|

|   | § | exploration risks and competitors, |
|--------|--------|------------------------------------|

|   | § | the volatility of phosphate, diamond and other mineral prices, |
|--------|--------|----------------------------------------------------------------|

|   | § | estimates of proven and probable reserves are subject to considerable uncertainty, |
|--------|--------|------------------------------------------------------------------------------------|

|   | § | movements in foreign exchange rates, |
|--------|--------|--------------------------------------|

|   | § | increased competition, governmental regulation, |
|--------|--------|-------------------------------------------------|

|   | § | performance of information systems, |
|--------|--------|-------------------------------------|

|   | § | ability of the Company to hire, train and retain qualified employees, |
|--------|--------|-----------------------------------------------------------------------|

|   | § | the availability of sufficient, transportation, power and water resources, and |
|--------|--------|--------------------------------------------------------------------------------|

|   | § | our ability to enter into key exploration and supply agreements and the performance of contract counterparties. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

| Item 1. | Business. |
|---------|-----------|

----

----

----

|   | Ø | Proven and probable phosphate rock reserves that will support 59 years of operation for the production of 600,000 tonnes of DAP per year or 29 years at a doubled rate of production. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | ‘As-mined’ proven and probable ore reserves of phosphorite of 196.2 million tonnes at 14.6% P2O5. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | Ø | Proven and probable mineral reserves of recoverable, commercially useable and internationally marketable phosphate rock concentrate of 55.5 million tonnes at 33% P2O5 (72 BPL). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| (1) (2) ORE RESERVES - "As-Mined” Phosphorite (Pre Processing)                |
|------------------------------------------------------------------------------------------|
|                                                                                     | Tonnes(Millions) | %P2O5 | Average BPL | %Fe2O3 | %Al2O3 | %MgO | %CaO |
| Proven                                                                                   | 98.0 | 15.3 | 33.4 | 6.5 | 2.6 | 0.4 | 21.3 |
| Probable                                                                                 | 98.1 | 13.9 | 30.4 | 6.1 | 2.4 | 0.4 | 19.3 |
| Total                                                                                    | 196.1 | 14.6 | 31.9 | 6.3 | 2.5 | 0.4 | 20.3 |
|                                                                                     |   |   |   |   |   |   |   |
|                                                                                     | Acres | Hectares | (3)Overburden | (3)Ore | (3)Interburden |   |   |
| Proven                                                                                   | 1,277 | 517 | 10.1 | 10.5 | 2.3 |   |   |
| Probable                                                                                 | 1,315 | 532 | 13.4 | 10.2 | 3.2 |   |   |
| Total                                                                                    | 2,592 | 1,049 | 11.8 | 10.4 | 2.8 |   |   |
|                                                                                     |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   |
| (4) (2) MINERAL RESERVES - Recoverable Phosphate Rock Concentrate (Post Processing) |
|                                                                                     | Tonnes(Millions) | %P2O5 | Average BPL | %Fe2O3 | %Al2O3 | %MgO | %CaO |
| Proven                                                                                   | 28.9 | 33.1 | 72.4 | (5)3.0 | 0.8 | 0.2 | 47.0 |
| Probable                                                                                 | 26.6 | 32.9 | 71.9 | (5)2.9 | 0.8 | 0.2 | 46.6 |
| Total                                                                                    | 55.5 | 33.0 | 72.1 | (5)2.9 | 0.8 | 0.2 | 46.8 |

|   | (1) | Ore reserves are defined here as the phosphorite ore material for the beneficiation plant. It is “as-mined” material and is before screening and processing in the proposed flotation beneficiation plant to be located at Paradise South. All ore reserves are in areas that are fully accessible for mining; free of surface or subsurface encumbrance, legal setbacks, environmental reserves and other legal restrictions that preclude permittable access for mining; believed by us to be permittable within a reasonable timeframe; and meet specified minimum physical, economic and chemical criteria related to current mining and production practices of the industry. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Proven and Probable Reserves have been estimated by Henry J. Lamb (a member of the American Institute of Professional Geologists and Licensed Professional Geologist Registered in the states of Florida and North Carolina), who has more than 30 years experience in the exploration, development, valuation and operation of phosphorite deposits throughout the world including the United States, Peru, Egypt, Iraq, Uganda, Australia, Jordan, and Kazakhstan.  Mr. Lamb is an independent consultant contracted to Legend.  During this project, Mr. Lamb had opportunities to observe portions of the drilling and sampling activity, reviewed analytical and metallurgical laboratory procedures, reviewed the geologic database, converted the phosphorite ore information to phosphate rock concentrate (product); reviewed the operating cost model, and independently estimated the proven and probable reserves based on phosphate industry accepted procedures and standards. In preparing this proven and probable phosphate rock concentrate reserve estimate, Mr. Lamb relied upon his independent examination of geologic, metallurgical, and cost estimate data provided by Legend.  Throughout the exploration and development program, Mr. Lamb has been an independent Technical Advisor to the Legend staff and project management regarding the exploration and development of the Paradise South Phosphorite Deposit. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Overburden, ore and interburden are reported here as average thicknesses in vertical metres. |
|--------|-----|----------------------------------------------------------------------------------------------|

|   | (4) | Mineral reserves are defined here as the recoverable rock concentrate post screening and processing of the ore through the proposed flotation beneficiation plant to be located at Paradise South. This material is therefore a subset of the ore reserves and cannot be aggregated with the ore reserves. These reserves are in areas that are fully accessible for mining; free of surface or subsurface encumbrance, legal setbacks, environmental reserves and other legal restrictions that preclude permittable access for mining; believed by us to be permittable within a reasonable timeframe; and meet specified minimum physical, economic and chemical criteria related to current mining and production practices of the industry. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5) | Please see comments below in the section on Metallurgy titled “Investigative studies on the Fe2O3 content” which details testwork that shows less than 50% of the iron contained in the rock concentrate leaches into the phosphoric acid due to the iron species being less amenable to acidulation than other known iron species. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | CRU Group are commodity research analysts who currently publish fertilizer prices in the weekly, industry recognized, publication FERTILIZER WEEK. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Sourced from recognized fertilizer industry weekly price publications. |
|--------|-----|------------------------------------------------------------------------|

|   | (3) | Data provided by CRU Group. |
|--------|-----|-----------------------------|

----

----

----

----

|   | ● | Tertiary laterite and silcrete up to 5m thick. |
|--------|---------|------------------------------------------------|

|   | ● | Mesozoic quartz sandstones, micaceous mudstone and coarse conglomerate beds.  These sediments are mostly confined to the western boundary of the Paradise South project area, adjacent to the Western Fault and can be up to 40m thick. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Inca Formation of Middle Cambrian age consists of well-laminated fissile shale with some interbeds of siltstone and minor chert.  This unit has a recorded maximum thickness of 24m in the project area. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Beetle Creek Formation of Lower Middle Cambrian age consists of beds of phosphorite, siltstone, shale and chert.  Phosphorite lithologies include friable pelletal phosphorite and soft clayey phosphatic mudstone.  This unit attains a maximum thickness of 46.5m in the Paradise South project area. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Thorntonia Limestone underlies the Beetle Creek Formation on the eastern margin of the Paradise South project area.  In contrast to the Beetle Creek Formation this unit is characterized by dolomitic limestone containing abundant chert nodules.  The thickness of this unit is highly variable and reaches a maximum of 16m. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The Mt Hendry Formation forms the basal unit of the Cambrian stratigraphy and is typically a 2m thick conglomerate with lesser sandstone. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | The RC samples were composites, collected for each 1 metre interval. |
|--------|---------|----------------------------------------------------------------------|

|   | ● | A cone splitter was used to collect a 1 to 3 kilogram subsample for ore interval assaying.  A second field duplicate was collected at the same time for future reference. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | All sample reject through the cone splitter was collected, labelled and stored in a temporary storage area at Paradise South and are available for future testing. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | A combined sample weight was measured using on site scales and logged into the database. |
|--------|---------|------------------------------------------------------------------------------------------|

|   | ● | Each sample was tested in the field using the modified Shapiro test for estimating phosphate content. A sample returning a positive field test result was submitted to the analytical laboratory for final analysis. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | For each hole two field duplicates were submitted for analytical testing. |
|--------|---------|---------------------------------------------------------------------------|

|   | ● | A set of matrix matched reference standards were inserted into the lab submission for QA/QC purposes. Standards were submitted to the lab at a rate of 1 in 25 samples. A coarse blank sample was also inserted for submission at a rate of 1 in 25 samples. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | Field duplicate – taken on the drill rig to test sampling technique. |
|--------|---------|----------------------------------------------------------------------------|

|   | ● | Lab Splits – samples taken at the sample preparation stage to ensure prep techniques are suitable. |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | ● | Lab repeats – a repeat assay analysis of the final pulp. |
|--------|---------|----------------------------------------------------------------|

|   | ● | P2O5, Fe2O3, Al2O3, MgO, SiO2, CaO and LOI |
|--------|---------|--------------------------------------------|

|   | ● | P2O5, Al2O3, Fe2O3, MgO, CaO |
|--------|---------|------------------------------|

----

Standards

----

| Sample | Drill Hole | Original Sample Mass (kg) | OriginalSample Grade(% P2O5) | OriginalSample Grade(% Fe2O3) | OriginalSample Grade(% Al2O3) | OriginalSample Grade(% CaO) | OriginalSample Grade(% MgO) | ConcSampleMass (kg) | ConcSampleGrade(% P2O5) | ConcSampleGrade(% Fe2O3) | ConcSampleGrade(% Al2O3) | ConSampleGrade(% CaO) | Concentrate SampleGrade(% MgO) |
|--------|------------|---------------------------|------------------------------|-------------------------------|-------------------------------|-----------------------------|-----------------------------|---------------------|-------------------------|--------------------------|--------------------------|-----------------------|--------------------------------|
| JC1    | PSRC0156   | 53.37                     | 7.79                         | 3.65                          | 2.99                          | 22.84                       | 8.14                        | 7.66                | 19.4                    | 1.57                     | 0.54                     | 39.8                  | 8.97                           |
| JC2    | PSRC0157   | 59.44                     | 16.75                        | 8.47                          | 5.65                          | 24.22                       | 0.76                        | 12.41               | 34.4                    | 2.48                     | 0.86                     | 50.1                  | 0.54                           |
| JC3    | PSRC0148   | 57.73                     | 19.74                        | 6.99                          | 5.45                          | 27.94                       | 0.95                        | 12.39               | 36.4                    | 2.19                     | 0.86                     | 50.2                  | 0.46                           |
| JC4    | PSDD0001   | 76.38                     | 20.89                        | 7.27                          | 5.72                          | 30.10                       | 0.46                        | 17.55               | 33.3                    | 2.27                     | 1.34                     | 48.1                  | 0.26                           |
| JC5a   | PSDD0002   | 28.96                     | 22.91                        | 5.01                          | 3.57                          | 32.04                       | 0.22                        | 11.11               | 36.7                    | 2.13                     | 0.66                     | 50.7                  | 0.08                           |
| JC5b   | PSDD0002   | 41.34                     | 12.11                        | 20.89                         | 3.86                          | 16.56                       | 0.28                        | 10.12               | 9.08                    | 46.5                     | 1.27                     | 11.5                  | 0.28                           |
| JC6a   | PSDD0003   | 43.99                     | 16.01                        | 4.83                          | 2.93                          | 23.06                       | 0.91                        | 8.08                | 33.4                    | 1.61                     | 0.7                      | 49                    | 1.62                           |
| JC6b   | PSDD0003   | 31.25                     | 4.77                         | 0.96                          | 1.43                          | 29.75                       | 14.97                       | 13.93               | 4.98                    | 0.62                     | 0.27                     | 33.5                  | 17.3                           |
| JC7    | PSDD0007   | 76.23                     | 16.83                        | 5.45                          | 6.28                          | 24.04                       | 1.03                        | 18.73               | 33                      | 3.33                     | 1.14                     | 47.5                  | 1.18                           |
| JC8    | PSDD0008   | 38.13                     | 14.77                        | 4.97                          | 6.66                          | 21.34                       | 0.71                        | 7.03                | 34.9                    | 1.96                     | 0.82                     | 49.5                  | 1.17                           |
| JC9a   | PSD0009    | 28.15                     | 21.68                        | 4.49                          | 3.01                          | 30.42                       | 0.34                        | 5.28                | 34.8                    | 1.93                     | 0.69                     | 49.6                  | 0.28                           |
| JC9b   | PSD0009    | 31.84                     | 8.92                         | 6.60                          | 8.72                          | 12.70                       | 0.61                        | 9.66                | 27.5                    | 7.3                      | 1.49                     | 39.5                  | 0.34                           |
| JC10   | PSD0010    | 46.7                      | 6.92                         | 7.32                          | 20.26                         | 1.23                        | 41.24                       | 3.34                | 30.4                    | 1.98                     | 1.01                     | 47.8                  | 1.17                           |
| JC11a  | PSD0014    | 46.93                     | 7.61                         | 2.13                          | 5.35                          | 9.94                        | 0.23                        | 5.28                | 29.3                    | 4.16                     | 1.89                     | 40.6                  | 0.28                           |
| JC11b  | PSD0014    | 23.94                     | 10.42                        | 15.07                         | 5.83                          | 14.22                       | 0.33                        | 5.82                | 29.3                    | 9.6                      | 2.04                     | 40.7                  | 0.21                           |
| JC12   | PSD0015    | 23.69                     | 14.62                        | 7.52                          | 3.67                          | 20.85                       | 0.53                        | 11.79               | 30.1                    | 3.69                     | 1.43                     | 43.8                  | 0.44                           |
| JC13   | PSD0016    | 30.63                     | 9.77                         | 2.99                          | 6.94                          | 13.89                       | 0.55                        | 3.61                | 34.3                    | 2.05                     | 0.94                     | 49.4                  | 0.59                           |
| JC14   | PSDD0017   | 30.8                      | 9.13                         | 7.56                          | 4.08                          | 14.05                       | 1.22                        | 3.04                | 30.4                    | 2.38                     | 0.91                     | 45.4                  | 1.06                           |
| JC15   | PSDD0021   | 19.65                     | 15                           | 7.52                          | 3.97                          | 20.42                       | 0.26                        | 3.66                | 27.9                    | 8.17                     | 2.08                     | 38.1                  | 0.24                           |
| JC16a  | PSRC0141   | 62.76                     | 17.15                        | 16.76                         | 3.30                          | 23.82                       | 0.25                        | 9.84                | 34.1                    | 5.87                     | 1.11                     | 46.8                  | 0.15                           |
| JC16b  | PSRC0141   | 54.5                      | 17.06                        | 16.79                         | 3.27                          | 23.69                       | 0.25                        | 28.21               | 33.2                    | 6.99                     | 1.34                     | 45.9                  | 0.18                           |
| JC17   | PSRC0141   | 34.7                      | 5.66                         | 0.87                          | 4.61                          | 7.53                        | 0.16                        | 2.55                | 34.7                    | 1.17                     | 2.23                     | 46.6                  | 0.19                           |
| JC18   | PSRC0151   | 67.9                      | 16.26                        | 5.44                          | 6.31                          | 24.33                       | 1.69                        | 12.81               | 31.6                    | 3.62                     | 0.9                      | 46.7                  | 2.24                           |
| JC19   | PSRC0151   | 42.1                      | 12.21                        | 12.25                         | 5.47                          | 18.36                       | 1.71                        | 3.7                 | 32.9                    | 4.11                     | 1.02                     | 46.2                  | 1.5                            |
| JC20   | PSDD0025   | 59.14                     | 18.01                        | 13.53                         | 3.22                          | 25.04                       | 0.38                        | 16.9                | 32.4                    | 8.07                     | 0.75                     | 46.1                  | 0.22                           |
| JC21   | PSDD0022   | 59.11                     | 27.06                        | 3.36                          | 2.70                          | 38.04                       | 0.26                        | 15.59               | 36                      | 2.06                     | 0.7                      | 51                    | 0.15                           |
| JC22a  | PSDD0024   | 69.8                      | 30.69                        | 3.03                          | 1.51                          | 41.96                       | 0.08                        | 15.15               | 37.2                    | 2.22                     | 0.77                     | 50.8                  | 0.06                           |
| JC22b  | PSDD0024   | 37.79                     | 10.27                        | 5.88                          | 4.32                          | 14.43                       | 0.39                        | 3.89                | 33                      | 3.99                     | 0.98                     | 45.3                  | 0.15                           |
| JC23a  | PSDD0042   | 35.17                     | 15.76                        | 2.57                          | 5.00                          | 21.77                       | 0.37                        | 8.39                | 33.9                    | 1.79                     | 1.08                     | 47.1                  | 0.23                           |
| JC23b  | PSDD0042   | 33.8                      | 14.34                        | 6.72                          | 4.01                          | 20.16                       | 0.43                        | 7.98                | 33.2                    | 4.02                     | 0.67                     | 45.6                  | 0.2                            |
| JC24a  | PSDD0144   | 41.4                      | 14.18                        | 10.85                         | 5.06                          | 20.96                       | 1.32                        | 8.34                | 31.3                    | 3.95                     | 0.77                     | 46.4                  | 1.52                           |
| JC24b  | PSDD0144   | 56.1                      | 8.85                         | 6.84                          | 4.98                          | 14.00                       | 1.85                        | 3.88                | 28.6                    | 2.79                     | 0.89                     | 43.6                  | 2.64                           |

----

| Sample | Rock Concentrate Units Fe2O3 | Phosphoric Acid Units Fe2O3 | Fe2O3Extraction % to acid |
|--------|------------------------------|-----------------------------|---------------------------|
| JC14   | 2.12                         | 0.62                        | 29.2                      |
| JC19   | 3.20                         | 0.37                        | 11.6                      |
| JC20   | 6.92                         | 1.45                        | 21.0                      |

----

|                     | Ore  | Waste |
|--------------------------|------|-------|
| Mean                     | 1.89 | 2.04  |
| Standard Error           | 0.02 | 0.05  |
| Standard Deviation       | 0.24 | 0.29  |
| Sample Variance          | 0.06 | 0.09  |
| Confidence Level (95.0%) | 0.04 | 0.09  |

|   | Ø | Transport approximately 1 million tonnes of upgraded ore by road from Paradise South to the proposed Mt Isa Fertilizer Complex. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Direct acidulation in Legend’s proposed phosphoric acid plant of upgraded ore to produce approximately 300ktpa phosphoric acid using approximately 800ktpa of sulfuric acid (200ktpa sourced from local smelters and 600ktpa produced in Legend’s sulfuric acid plant, using imported sulfur). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Import of approximately 100ktpa of liquid ammonia (NH3) to combine with phosphoric acid in the ammonium phosphate plant to enable granulation of MAP and DAP in a ratio dependent on market conditions but currently assumed at 400ktpa MAP and 200ktpa DAP. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Production of 15ktpa of aluminum fluoride (AlF3) through Wengfu’s proprietary technology for their self-developed dry process. This marketable chemical product is used in the aluminum industry which currently has a strong demand both locally in Australia and in overseas markets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Water for the phosphoric acid plant will be sourced from the Lake Julius water allocation. Water will be transferred from Lake Julius to Lake Moondarra via the existing transfer pipeline. An existing pumping station and new pipeline from Lake Moondarra will service the phosphoric acid plant. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Power for phosphoric acid plant will come from the Ergon Energy eastern transmission line near Mica Creek Power Station. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | Ø | Transport 600ktpa of MAP/DAP and 15ktpa aluminium fluoride in containers on flat bed rail wagons from Mt Isa to the Port of Townsville using 2 train sets for sale on the local and international markets. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | Lake Julius option |
|--------|----|--------------------|

|   | 2. | Thorntonia Borefield option |
|--------|----|-----------------------------|

|   | 3. | Upper Battle Creek Dam |
|--------|----|------------------------|

----

|   | 1. | Mica Creek is a 325MW natural gas fired power plant, located one kilometre to the north of the proposed Fertiliser Complex site. Legend has received an offer to connect from CS Energy to meet the power requirements for the Fertilizer Complex |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Legend is one of five Foundation Mining Customers of the CopperString project.  The CopperString project is a proposal to construct a transmission line from Woodstock (south of Townsville) to Dajarra Road near Cloncurry in North West Queensland.  The proposed transmission line will provide Legend with access to the National Electricity Grid, significantly improving the supply and reliability of electricity to the region. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Legend also continues to negotiate with APA regarding its proposed gas-fired power station near the Fertilizer Complex. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------|

----

|   | ● | Road Impact Assessment |
|--------|---------|------------------------|

|   | ● | Workforce Management Plan |
|--------|---------|---------------------------|

|   | ● | Landscape Response |
|--------|---------|--------------------|

|   | ● | Quantitative Risk Assessment |
|--------|---------|------------------------------|

|   | ● | Traffic Management & Carparking |
|--------|---------|-------------------------------------|

|   | ● | Environmental Assessment Report |
|--------|---------|---------------------------------|

|   | ● | Air Quality Impact Assessment |
|--------|---------|-------------------------------|

|   | ● | Noise Assessment |
|--------|---------|------------------|

|   | ● | Flood Impact Assessment |
|--------|---------|-------------------------|

|   | ● | Aquatic Ecology & Water Quality Baseline Condition Assessment |
|--------|---------|-------------------------------------------------------------------|

|   | ● | Stormwater Management Plan |
|--------|---------|----------------------------|

|   | ● | Geotechnical & Geology Assessment |
|--------|---------|---------------------------------------|

|   | ● | Erosion & Sediment Control Management Plan |
|--------|---------|------------------------------------------------|

|   | ● | Hydrogeological Assessment |
|--------|---------|----------------------------|

|   | ● | Gypsum Disposal Management Plan |
|--------|---------|---------------------------------|

|   | ● | Waste Management Plan |
|--------|---------|-----------------------|

|   | ● | Dangerous Goods & Hazardous Material Assessment |
|--------|---------|-----------------------------------------------------|

|   | ● | Decommissioning & Rehabilitation Strategy |
|--------|---------|-----------------------------------------------|

----

|   | ● | Phosphate Projects: |
|--------|---------|---------------------|

|   | § | Paradise Phosphate Project, Queensland |
|--------|--------|----------------------------------------|

|   | § | D-Tree Phosphate Project, Queensland |
|--------|--------|--------------------------------------|

|   | § | King Eagle Phosphate Project, Queensland |
|--------|--------|------------------------------------------|

|   | ● | Diamond and Phosphate Projects: |
|--------|---------|---------------------------------|

|   | § | Barr Creek Project, Queensland |
|--------|--------|--------------------------------|

|   | ● | Diamond Projects: |
|--------|---------|-------------------|

|   | § | Glyde River, Northern Territory. |
|--------|--------|----------------------------------|

|   | § | Foelsche, Northern Territory |
|--------|--------|------------------------------|

|   | § | Abner Range, Northern Territory. |
|--------|--------|----------------------------------|

|   | § | Cox, Northern Territory. |
|--------|--------|--------------------------|

|   | § | Gravity Project, Northern Territory |
|--------|--------|-------------------------------------|

|   | ● | Diamonds and Base Metals |
|--------|---------|--------------------------|

|   | § | McArthur River, Northern Territory |
|--------|--------|------------------------------------|

----

----

|     |   |         |   |        |   |       |   |        |   |      |   |   |                  |   | GST Inclusive |
|----------|--------|--------------|--------|-------------|--------|------------|--------|-------------|--------|-----------|--------|--------|-----------------------|--------|---------------|
| Lease    |   | Lease Status |   | Project     |   | Grant Date |   | Expiry Date |   | Acres     |   |   | Anniversary Date 2011 |   | Rent 2010     |   |    Commitment    2011 |
| EPM14753 |   | Granted      |   | D-Tree      |   | 21-Apr-08  |   | 20-Apr-13   |   | 16702.14  |   |   | 21-Apr-11             |   | $100,000      |   | $2,590 |
| EPM14905 |   | Granted      |   | King Eagle* |   | 12-Dec-06  |   | 11-Dec-11   |   | 73171.28  |   |   | 12-Dec-11             |   | $140,000      |   | NA-expires |
| EPM14906 |   | Granted      |   | King Eagle* |   | 24-Aug-07  |   | 23-Aug-12   |   | 58855.16  |   |   | 24-Aug-11             |   | $120,000      |   | $9,127 |
| EPM14912 |   | Granted      |   | King Eagle* |   | 30-Jan-07  |   | 29-Jan-12   |   | 79534     |   |   | 30-Jan-11             |   | $120,000      |   | $12,335 |
| EPM15014 |   | Granted      |   | Barr Creek  |   | 21-Aug-06  |   | 20-Aug-11   |   | 33404.28  |   |   | 21-Aug-11             |   | $20,000       |   | NA-expires |
| EPM15015 |   | Granted      |   | Barr Creek  |   | 21-Aug-06  |   | 20-Aug-11   |   | 29427.58  |   |   | 21-Aug-11             |   | $20,000       |   | NA-expires |
| EPM15763 |   | Granted      |   | D-Tree      |   | 26-Jun-08  |   | 25-Jun-13   |   | 62831.86  |   |   | 26-Jun-11             |   | $50,000       |   | $9,745 |
| EPM16942 |   | Granted      |   | Paradise    |   | 28-Aug-09  |   | 27-Aug-14   |   | 14316.12  |   |   | 28-Aug-11             |   | $75,000       |   | $2,220 |
| EPM17330 |   | Granted      |   | Paradise    |   | 23-Jul-09  |   | 22-Jul-14   |   | 3181.36   |   |   | 23-Jul-11             |   | $180,000      |   | $493 |
| EPM17333 |   | Granted      |   | D-Tree      |   | 29-Sep-09  |   | 28-Sep-14   |   | 30222.92  |   |   | 29-Sep-11             |   | $50,000       |   | $4,687 |
| EPM17441 |   | Granted      |   | Paradise    |   | 6-Oct-09   |   | 5-Oct-14    |   | 14316.12  |   |   | 6-Oct-11              |   | $120,000      |   | $2,220 |
| EPM17446 |   | Granted      |   | D-Tree      |   | 29-Sep-09  |   | 28-Sep-13   |   | 5567.38   |   |   | 29-Sep-11             |   | $50,000       |   | $863 |
| EPM17447 |   | Granted      |   | Paradise    |   | 23-Feb-10  |   | 22-Feb-14   |   | 7158.06   |   |   | 23-Feb-11             |   | $80,000       |   | $1,110 |
| ML90190  |   | Granted      |   | D-Tree      |   | 12-Aug-10  |   | 31-Aug-15   |   | 104.1513  |   |   | 12-Aug-11             |   | NA-ML         |   | $2,009 |
|     |   |         |   |        |   |       |   | Total       |   | 428,792.4 |   |   |                  |   |          |   |   |

|     |   |         |   |             |   |       |   |        |   |             |   |     |   | GST Inclusive |
|----------|--------|--------------|--------|------------------|--------|------------|--------|-------------|--------|------------------|--------|----------|--------|---------------|
| Lease    |   | Lease Status |   | Application Date |   | Grant Date |   | Expiry Date |   | Anniversary Date |   | Acres    |   | Rent 2010     |   |    Commitment    2011 |
| EPM17087 |   | Application  |   | 3-Dec-07         |   |       |   |        |   |             |   | 8748.74  |   |          |   |   |
| EPM17437 |   | Application  |   | 3-Mar-08         |   |       |   |        |   |             |   | 1590.68  |   |          |   |   |
| EPM17443 |   | Application  |   | 3-Mar-08         |   |       |   |        |   |             |   | 3181.36  |   |          |   |   |
| EPM17930 |   | Application  |   |             |   |       |   |        |   |             |   | 5567.38  |   |          |   |   |
| EPM18209 |   | Application  |   |             |   |       |   |        |   |             |   | 48515.74 |   |          |   |   |
| ML90191  |   | Application  |   | 3-Aug-09         |   |       |   |        |   |             |   | 483.7717 |   |          |   |   |
| ML90197  |   | Application  |   | 23-Nov-09        |   |       |   |        |   |             |   | 5619.591 |   |          |   |   |
| ML90210  |   | Application  |   | 3-Dec-10         |   |       |   |        |   |             |   | 450.2748 |   |          |   |   |

|     |   |         |   |     |   |       |   |        |   |     |   |   |              |   | GST Inclusive     |
|----------|--------|--------------|--------|----------|--------|------------|--------|-------------|--------|----------|--------|--------|-------------------|--------|-------------------|
| Lease    |   | Lease Status |   | Project  |   | Grant Date |   | Expiry Date |   | Acres    |   |   | Anniversary Month |   |  Rent 2010   |   |   | Commitment 2011 |
| EL22244  |   | Granted      |   | Foelsche |   | 7-Mar-03   |   | 6-Mar-11    |   | 44539.04 |   |   | 7-Mar-11          |   |  NA-expires* |   |   | $40,000 |
| EL22245  |   | Granted      |   | Foelsche |   | 7-Mar-03   |   | 6-Mar-11    |   | 102598.9 |   |   | 7-Mar-11          |   |  NA-expires* |   |   | $50,000 |
| EL22297  |   | Granted      |   | Cox      |   | 5-Aug-03   |   | 4-Aug-11    |   | 29427.58 |   |   | 5-Aug-11          |   |  NA- expires |   |   | $20,210 |
| EL23117  |   | Granted      |   | Abner    |   | 3-Mar-03   |   | 2-Mar-11    |   | 3976.7   |   |   | 3-Mar-11          |   |  NA-renewed  |   |   | $49,700 |
| EL23118  |   | Granted      |   | Abner    |   | 3-Mar-03   |   | 2-Mar-11    |   | 25450.88 |   |   | 3-Mar-11          |   |  NA-renewed  |   |   | $47,750 |
| EL23119  |   | Granted      |   | Foelsche |   | 3-Mar-03   |   | 2-Mar-11    |   | 11930.1  |   |   | 3-Mar-11          |   |  NA-expires* |   |   | $30,000 |
| EL23121  |   | Granted      |   | Glyde    |   | 3-Mar-03   |   | 2-Mar-11    |   | 14316.12 |   |   | 3-Mar-11          |   |  NA-renewed  |   |   | $50,000 |
| EL23510  |   | Granted      |   | Foelsche |   | 3-Mar-03   |   | 2-Mar-11    |   | 50733.8  |   |   | 3-Mar-11          |   |  NA-expires* |   |   | $50,000 |
| EL23511  |   | Granted      |   | Glyde    |   | 3-Mar-03   |   | 2-Mar-11    |   | 11134.76 |   |   | 3-Mar-11          |   |  NA-renewed  |   |   | $50,000 |
| EL23512  |   | Granted      |   | McArthur |   | 3-Mar-03   |   | 2-Mar-11    |   | 17497.48 |   |   | 3-Mar-11          |   |  NA- renewed |   |   | $30,000 |
| EL23513  |   | Granted      |   | Abner    |   | 3-Mar-03   |   | 2-Mar-11    |   | 54878.46 |   |   | 3-Mar-11          |   |  NA-expires* |   |   | $30,000 |
| EL23514  |   | Granted      |   | Abner    |   | 3-Mar-03   |   | 2-Mar-11    |   | 7158.06  |   |   | 3-Mar-11          |   |  NA-expires* |   |   | $30,000 |
| EL23771  |   | Granted      |   | Cox      |   | 19-Aug-03  |   | 18-Aug-11   |   | 1590.68  |   |   | 19-Aug-11         |   |  NA- expires |   |   | $7,500 |
| EL23772  |   | Granted      |   | Cox      |   | 19-Aug-03  |   | 18-Aug-11   |   | 1590.68  |   |   | 19-Aug-11         |   |  NA- expires |   |   | $8,500 |
| EL23931  |   | Granted      |   | Abner    |   | 3-Feb-04   |   | 2-Feb-12    |   | 795.34   |   |   | 3-Feb-11          |   |  NA-renewed  |   |   | $16,050 |
| EL23993  |   | Granted      |   | Abner    |   | 6-May-04   |   | 5-May-12    |   | 42948.36 |   |   | 6-May-11          |   |  NA-renewed  |   |   | $69,250 |
| EL24285  |   | Granted      |   | Abner    |   | 24-Jan-05  |   | 23-Jan-11   |   | 62831.86 |   |   | 24-Jan-11         |   |  NA-expires* |   |   | Nil |
| EL24286  |   | Granted      |   | Abner    |   | 24-Jan-05  |   | 23-Jan-11   |   | 85896.72 |   |   | 24-Jan-11         |   |  NA-expires* |   |   | Nil |
| EL25491  |   | Granted      |   | Foelsche |   | 12-Mar-07  |   | 11-Mar-13   |   | 6362.72  |   |   | 12-Mar-11         |   |  $60,000     |   |   | $704 |
| EL25616  |   | Granted      |   | McArthur |   | 23-Aug-07  |   | 22-Aug-13   |   | 7953.4   |   |   | 23-Aug-11         |   |  $20,000     |   |   | $880 |
| EL25859  |   | Granted      |   | Cox      |   | 20-Sep-07  |   | 19-Sep-13   |   | 225876.6 |   |   | 20-Sep-11         |   |  $50,000     |   |   | $24,992 |
| EL26404  |   | Granted      |   | Abner    |   | 23-May-08  |   | 22-May-14   |   | 50901.76 |   |   | 23-May-11         |   |  $35,000     |   |   | $2,816 |
| EL26495  |   | Granted      |   | Foelsche |   | 18-Jul-08  |   | 17-Jul-14   |   | 4772.04  |   |   | 18-Jul-11         |   |  $20,000     |   |   | $264 |
| EL26507  |   | Granted      |   | McArthur |   | 18-Jul-08  |   | 17-Jul-14   |   | 17497.48 |   |   | 18-Jul-11         |   |  $15,000     |   |   | $968 |
| EL26509  |   | Granted      |   | Foelsche |   | 18-Jul-08  |   | 17-Jul-14   |   | 6362.72  |   |   | 18-Jul-11         |   |  $10,000     |   |   | $352 |
| EL26514  |   | Granted      |   | Cox      |   | 18-Jul-08  |   | 17-Jul-14   |   | 12725.44 |   |   | 18-Jul-11         |   |  $10,000     |   |   | $704 |
| EL26515  |   | Granted      |   | Cox      |   | 18-Jul-08  |   | 17-Jul-14   |   | 8748.74  |   |   | 18-Jul-11         |   |  $10,000     |   |   | $484 |
| EL26528  |   | Granted      |   | McArthur |   | 18-Jul-08  |   | 17-Jul-14   |   | 77943.32 |   |   | 18-Jul-11         |   |  $15,000     |   |   | $4,312 |
| EL27340  |   | Granted      |   | Abner    |   | 25-Nov-09  |   | 24-Nov-15   |   | 3181.36  |   |   | 25-Nov-11         |   |  $10,000     |   |   | $88 |
| EL27342  |   | Granted      |   | Abner    |   | 25-Nov-09  |   | 24-Nov-15   |   | 11930.1  |   |   | 25-Nov-11         |   |  $15,000     |   |   | $330 |
| EL27770  |   | Granted      |   | Kiana    |   | 19-Aug-10  |   | 18-Aug-16   |   | 23489.7  |   |   | 19-Aug-11         |   |  $11,000     |   |   | $319 |
| EL27771  |   | Granted      |   | Kiana    |   | 19-Aug-10  |   | 18-Aug-16   |   | 51030.2  |   |   | 19-Aug-11         |   |  $17,000     |   |   | $693 |
| EL27772  |   | Granted      |   | Kiana    |   | 19-Aug-10  |   | 18-Aug-16   |   | 43748.64 |   |   | 19-Aug-11         |   |  $21,000     |   |   | $594 |
| SEL26397 |   | Granted      |   | Abner    |   | 26-Mar-08  |   | 25-Mar-12   |   | 40562.34 |   |   | 26-Mar-11         |   |  $225,000    |   |   | $11,088 |

----

|     |   |         |   |             |   |       |   |        |   |             |   |      |   | GST Inclusive    |
|----------|--------|--------------|--------|------------------|--------|------------|--------|-------------|--------|------------------|--------|-----------|--------|------------------|
| Lease    |   | Lease Status |   | Application Date |   | Grant Date |   | Expiry Date |   | Anniversary Date |   | Acres     |   |   Rent 2010 |   Commitment   2011 |
| EL22299  |   | Application  |   | 9-Dec-99         |   |       |   |        |   |             |   | 310182.6  |   |             |   |
| EL23162  |   | Application  |   | 9-May-01         |   |       |   |        |   |             |   | 97826.82  |   |             |   |
| EL23970  |   | Application  |   | 8-Aug-03         |   |       |   |        |   |             |   | 63627.2   |   |             |   |
| EL24203  |   | Application  |   | 15-Mar-04        |   |       |   |        |   |             |   | 287117.74 |   |             |   |
| EL24732  |   | Application  |   | 23-May-05        |   |       |   |        |   |             |   | 7158.06   |   |             |   |
| EL24762  |   | Application  |   | 8-Jun-05         |   |       |   |        |   |             |   | 44539.04  |   |             |   |
| EL24816  |   | Application  |   | 7-Jul-05         |   |       |   |        |   |             |   | 15906.8   |   |             |   |
| EL24938  |   | Application  |   | 14-Sep-05        |   |       |   |        |   |             |   | 85101.38  |   |             |   |
| EL25486  |   | Application  |   | 18-Jul-06        |   |       |   |        |   |             |   | 259280.84 |   |             |   |
| EL25614  |   | Application  |   | 20-Sep-06        |   |       |   |        |   |             |   | 248146.08 |   |             |   |
| EL25615  |   | Application  |   | 20-Sep-06        |   |       |   |        |   |             |   | 78738.66  |   |             |   |
| EL25629  |   | Application  |   | 25-Sep-06        |   |       |   |        |   |             |   | 41357.68  |   |             |   |
| EL27341  |   | Application  |   | 5-May-09         |   |       |   |        |   |             |   | 127254.4  |   |             |   |
| EL27911  |   | Application  |   | 21-Jan-10        |   |       |   |        |   |             |   | 795.34    |   |             |   |
| EL28254  |   | Application  |   | 30-Aug-10        |   |       |   |        |   |             |   | 42153.02  |   |             |   |
| EL5840   |   | Application  |   | 7-Oct-87         |   |       |   |        |   |             |   | 322908.04 |   |             |   |
| EL5841   |   | Application  |   | 7-Oct-87         |   |       |   |        |   |             |   | 318931.34 |   |             |   |
| EL5842   |   | Application  |   | 7-Oct-87         |   |       |   |        |   |             |   | 376195.82 |   |             |   |
| SEL28206 |   | Application  |   | 5-Aug-10         |   |       |   |        |   |             |   | 46925.06  |   |             |   |

----

|   | (i) | On November 2, 2007, we entered into an agreement with Iron Duyfken Pty Ltd to acquire three (3) project areas in the Georgina Basin of Queensland, Australia. Each project hosts a known and well documented, substantial deposit of phosphate rock (Cook, P.J, 1989, Howard, P.F, 1986). These deposits were delineated by earlier work conducted by previous major companies since 1967 and have been named the Lady Annie, Lady Jane and Thorntonia phosphate deposits. The deposits were defined in times when phosphate prices were low. Phosphate prices have risen considerably since those times due to increased world demand especially from China and India. Past feasibility studies on these deposits will be reassessed with a view to commercialization of the deposits, based on current prices. Legend agreed to pay A$500,000 and issue 500,000 shares of Common Stock as consideration. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Effective November 7, 2007, we entered into an agreement with Ansett Resources & Industries Pty Ltd to acquire one (1) project area in the Georgina Basin of Queensland, Australia. The project hosts a known and well documented, substantial deposit of phosphate rock (Cook, P.J, 1989, Howard, P.F, 1986). The deposit was delineated by earlier work conducted by previous major companies since 1967 and have been named the D-Tree phosphate deposit. As set out above, the deposit was defined in times when phosphate prices were low. Phosphate prices have risen considerably since those times due to increased world demand especially from China and India. Past feasibility studies on this deposit will be reassessed with a view to commercialization of the deposit, based on current prices. Legend agreed to pay A$300,000 as consideration. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | We entered into a farm-in and joint venture heads of agreement with King Eagle Resources Pty Limited on December 7, 2007 pursuant to which Legend can earn an 80% interest in phosphate on three tenement blocks named Quita Creek, Highland Plains and Lily and Sherrin creek by spending $3 million on phosphate exploration over five years. Legend has no rights to any other minerals on the three tenement blocks. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Effective February 27, 2008, we entered into a Share Sale Agreement whereby the Company agreed to purchase all of the issued and outstanding shares of Teutonic Minerals Pty Ltd. As a result, Teutonic became a subsidiary of the Company from that date. Teutonic held an application for a mineral licence over phosphate in the Georgina Basin in the State of Queensland, Australia which has subsequently been withdrawn, allowing Legend’s application to take priority. The consideration payable to the vendors was A$300,000, and the Company granted a 1% gross revenue royalty from production from the mineral licence. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | On October 27, 2008, we entered into a Heads of agreement with Mt. Isa Metals Ltd. (“MET”) for the formation of a Joint Venture (“JV”) over each party’s respective interest in tenements overlying the D-Tree phosphate deposit. Under the JV, Legend contributed tenements EPM 14753, EPMA’s 17333, 17437, 17443 and 17446, and MET contributed tenement EPM 15763 (D-Tree West). Legend managed and held an 80% interest in the JV and MET held a 20% contributing interest in the JV. The JV has access to plant and infrastructure at Legend’s 100% owned proposed Lady Annie phosphate development, which lies 9 miles to the east of D-Tree. The Heads of Agreement was replaced by a formal JV agreement dated April 18, 2009. Effective September 30, 2009, MET exited the JV. Legend, as manager of the D-Tree JV, had invoiced MET A$1.739 million for MET’s 20% interest in the D-Tree project for the period September 1, 2008 to June 30, 2009. MET decided to dilute its interest rather than pay the invoices and in accordance with the JV agreement, MET’s interest has reduced to less than 5%, thus requiring MET to exit the JV. MET retains a royalty of A$0.50 per tonne from product from the D-Tree Joint Venture tenements. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | On December 24, 2008, we entered into a Sale and Purchase Agreement with Elkedra Diamonds Pty Ltd and Uramet Minerals Limited to purchase a 100% interest in EPM 15014, EPM 15015 and application for EPM 17930 for a consideration of A$900,000. The purchase by Legend was subject to a number of pre-conditions including the receipt by the vendors of any necessary consents and approvals required under the Mining Act and approval for the purchase under the Foreign Acquisition and Takeovers Act 1975 (Cth). These pre-conditions were satisfied in February 2009 and the purchase by Legend settled. As part of the purchase, all parties provided standard warranties for such a transaction to each other. The tenements covered by this purchase are located immediately north of the Queensland phosphate project and are prospective for phosphate and diamonds. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | Legend exploration interests cover diamonds and base metals; |
|--------|-----|--------------------------------------------------------------|

|   | (ii) | NADL exploration interests cover previous diamond mining operations at the Merlin Diamond Mine and diamond exploration on Tenements in the Northern Territory and Western Australia; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | TEU exploration interests cover uranium exploration in the Northern Territory and Western Australia. |
|--------|-------|------------------------------------------------------------------------------------------------------|

----

| Project     | Access                                                                                                                                        |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| McArthur    | Via the Carpentaria Highway, east from Daly Waters to Cape Crawford, Borroloola and from the south via Wollogorang.                           |
| Glyde       |
| Abner Range |
| Foelsche    |
| Cox         | Via the Roper Highway and station roads to Hodgson River, Nutwood Downs and Cox River. Or, via the Carpentaria Highway towards Cape Crawford. |

----

----

|   | ● | Legend International Holdings remains a major shareholder of NADL with 50.40%. |
|--------|---------|--------------------------------------------------------------------------------|

|   | ● | Flagship Merlin Project remains on track with NADL aiming to be the only Australian owned ‘pure play’ integrated diamond company |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | NADL has successfully completed pre-feasibility production trials and has commenced a Pre-feasibility study to validate the scale and commercial viability of a mining project. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | A total of10,600 carats was produced in the 2009/2010 trial production with 24% of production being greater than 1 carat in weight and approximately 80% being high quality, high value gems |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | New technologies to increase diamond liberation and large diamond recovery were successfully tested. |
|--------|---------|------------------------------------------------------------------------------------------------------|

|   | ● | Recent drilling on the PalSac, Launfal and Bedevere pipes has increased the total number of carats in the mineralized material. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Major exploration focus at Lancelot, 40km south of Merlin, where there is strong evidence for a second diamond field. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------|

|   | ● | Reconnaissance exploration continuing on highly prospective regions in Arnhem Land and Yambarra. |
|--------|---------|--------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                           | Mineralized Material (tonnes) | Grade (carats per hundred tonne) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|----------------------------------|
| PalSac1                                                                                                                                                        | 8,100,000                     | 30.4                             |
| Launfal3                                                                                                                                                       | 1,600,000                     | 24.7                             |
| Excalibur3                                                                                                                                                     | 464,000                       | 34.1                             |
|                                                                                                                                                           |                          |                             |
| Gawain2                                                                                                                                                        | 1,100,000                     | 40.3                             |
| Ywain2                                                                                                                                                         | 80,000                        | 71.3                             |
|                                                                                                                                                           |                          |                             |
| Gareth3                                                                                                                                                        | 125,000                       | 21.6                             |
| Kaye2                                                                                                                                                          | 874,000                       | 13.5                             |
| Ector3                                                                                                                                                         | 1,510,000                     | 8.1                              |
| Bedevere                                                                                                                                                       | 366,000                       | 21.0                             |
| TOTAL                                                                                                                                                          | 14,219,000                    | 27.1                             |
| 1Estimated using a +1DTC bottom screen cutoff (approx 0.85mm).2Estimated using a +1mm slotted bottom screen size.3Based on previous mining operation recovery. |

----

|   | 1) | Diamond Parcel |
|--------|----|----------------|

|   | 2) | Pre-Feasibility Study |
|--------|----|-----------------------|

----

----

----

----

| Item 1A. | Risk Factors. |
|----------|---------------|

|   | - | exploration and development of any mineral property we identify; and |
|--------|---|----------------------------------------------------------------------|

|   | - | our ability to generate revenues and profitably operate a mine on any mineral property we identify. |
|--------|---|-----------------------------------------------------------------------------------------------------|

----

----

----

| Item 1B. | Unresolved Staff Comments. |
|----------|----------------------------|

----

| Item 2. | Properties. |
|---------|-------------|

| Item 3. | Legal Proceedings. |
|---------|--------------------|

----

PART II

| Item 4. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
|---------|---------------------------------------------------------------------------------------------------------------------|

| Calendar Period | High Bid(1) | Low Bid(1) |
|-----------------|-------------|------------|
|            |        |       |
| 2009            |        |       |
| First Quarter   | 0.76        | 0.44       |
| Second Quarter  | 0.77        | 0.53       |
| Third Quarter   | 1.11        | 0.59       |
| Fourth Quarter  | 1.49        | 0.73       |
|            |        |       |
| 2010            |        |       |
| First Quarter   | 1.60        | 1.02       |
| Second Quarter  | 1.26        | 0.80       |
| Third Quarter   | 1.03        | 0.60       |
| Fourth Quarter  | 1.11        | 0.68       |

| (1) | The quotations set out herein reflect inter-dealer prices without retail mark-up, mark-down or commission and may not necessarily reflect actual transactions. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i) | 300,000 options of which 1/3 vested on September 10, 2008, 1/3 will vest on September 10, 2009 and the balance will vest on September 10, 2010 and 50% of the options have an exercise price of US$0.444 per option and 50% have an exercise price of US$1.00 per option; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | 300,000 options of which 1/3 vested on December 19, 2008, 1/3 will vest on December 19, 2009 and the balance will vest on December 19, 2010 and 50% of the options have an exercise price of US$0.444 per option and 50% have an exercise price of US$1.00 per option; and |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | 4,787,500 options of which 1/3 vested on December 28, 2008, 1/3 will vest on December 28, 2009 and the balance will vest on December 28, 2010 and have an exercise price of US$1.00 per option. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a. | 5,000,000 options, at an exercise price of $2.50 per share and expiring 60 days from July 11, 2008;   |
|----|-------------------------------------------------------------------------------------------------------|
| b. | 8,000,000 options, at an exercise price of $3.00 per share and expiring 12 months from July 11, 2008; |
| c. | 8,000,000 options, at an exercise price of $3.50 per share and expiring 18 months from July 11, 2008; |
| d. | 9,000,000 options, at an exercise price of $4.00 per share and expiring 24 months from July 11, 2008. |

| (i)    | 200,000 options which will vest 1/3 on July 7, 2009, 1/3 on July 7, 2010 and the balance on July 7, 2011 and have an exercise price of US$2.00 per option.       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                             |
| (ii)   | 150,000 options which will vest 1/3 on July 21, 2009, 1/3 on July 21, 2010 and the balance on July 21, 2011 and have an exercise price of US$2.00 per option.    |
|   |                                                                                                                                                             |
| (iii)  | 112,500 options which will vest 1/3 on August 8, 2009, 1/3 on August 8, 2010 and the balance on August 8, 2011 and have an exercise price of US$1.00 per option. |

| (i)    | 962,500 options which will vest 1/3 on December 4, 2009, 1/3 on December 4, 2010 and the balance on December 4, 2011 and have an exercise price of US$1.00 per option.                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                   |
| (ii)   | 1,050,000 options which will vest 1/3 on December 4, 2009, 1/3 on December 4 10, 2010 and the balance on December 4, 2011 and have an exercise price of US$1.00 per option.                                                                                                            |
|   |                                                                                                                                                                                                                                                                                   |
| (iii)  | 562,500 options which will vest 1/3 on December 4, 2009, 1/3 on December 4 10, 2010 and the balance on December 4, 2011 and have an exercise price of US$1.00 per option.                                                                                                              |
|   |                                                                                                                                                                                                                                                                                   |
| (iv)   | 500,000 options which will vest 1/3 on December 4, 2009, 1/3 on December 4 10, 2010 and the balance on December 4, 2011 and have an exercise price of US$1.00 per option. For additional information concerning stock options, see Note 7 to the Company’s Financial Statements. |

----

----

|                                |   |   | 12/05  |   |   |   | 12/06  |   |   |   | 12/07  |   |   |   | 12/08  |   |   |   | 12/09  |   |   |   | 12/10  |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Legend International Holdings, Inc. |   |   | 100.00 |   |   |   | 101.79 |   |   |   | 100.45 |   |   |   | 47.41  |   |   |   | 115.71 |   |   |   | 81.96  |   |
| NASDAQ Composite                    |   |   | 100.00 |   |   |   | 111.16 |   |   |   | 124.64 |   |   |   | 73.80  |   |   |   | 107.07 |   |   |   | 125.99 |   |
| Peer Group                          |   |   | 100.00 |   |   |   | 163.09 |   |   |   | 557.58 |   |   |   | 248.47 |   |   |   | 408.92 |   |   |   | 568.16 |   |

----

| Item 5. | Selected Financial Data. |
|---------|--------------------------|

|                                                   |   |  Year ended December 31 |   |   |   |   |
|--------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|
|                                                   |   | 2006                         |   |   | 2007   |   |   | 2008 |   |   | 2009 |   |   | 2010 |   |   | 2010Conv.Transl |   |
|                                                   |   |                         | A$000s |   |   |   | A$000s |   |   |   | A$000s |   |   |   | A$000s |   |   |   | A000s |   |   | US$000s |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                               |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (loss)                                    |   |                         | 2      |   |   |   | 22 |   |   |   | 3,726 |   |   |   | 3,823 |   |   |   | 2,938 |   |   |   | 2,986 |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses                                     |   |                         | (4,537 | )      |   |   | (8,540 | ) |   |   | (23,408 | ) |   |   | (40,629 | ) |   |   | (40,777 | ) |   |   | (41,442 | ) |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                   |   |                         | (4,535 | )      |   |   | (8,518 | ) |   |   | (19,682 | ) |   |   | (36,806 | ) |   |   | (37,839 | ) |   |   | (38,456 | ) |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other non-operational gains and costs                  |   |                         | (40    | )      |   |   | (120 | ) |   |   | 5,461 |   |   |   | (2,347 | ) |   |   | (852 | ) |   |   | (867 | ) |
| Provision for income taxes                             |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Equity in losses of unconsolidated entities            |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | (346 | ) |   |   | (1,441 | ) |   |   | (1,464 | ) |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net profit (loss)                                 |   |                         | (4,575 | )      |   |   | (8,638 | ) |   |   | (14,221 | ) |   |   | (39,499 | ) |   |   | (40,132 | ) |   |   | (40,787 | ) |
| Net (loss) attributable to non-controlling interests   |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | 1,613 |   |   |   | 3,803 |   |   |   | 3,865 |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) attributable to Legend stockholders         |   |                         | (4,575 | )      |   |   | (8,638 | ) |   |   | (14,221 | ) |   |   | (37,886 | ) |   |   | (36,329 | ) |   |   | (36,922 | ) |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                         | A$     |   |   |   | A$ |   |   |   | A$ |   |   |   | A$ |   |   |   | A$ |   |   |   | $US |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic  net (loss) per share (1)              |   |                         | (0.06  | )      |   |   | (0.06 | ) |   |   | (0.07 | ) |   |   | (0.17 | ) |   |   | (0.16 | ) |   |   | (0.16 | ) |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average numberof shares outstanding (000s)(1) |   |                         | 75,230 |   |   |   | 146,740 |   |   |   | 204,501 |   |   |   | 226,328 |   |   |   | 226,380 |   |   |   | 226,380 |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet Data                                     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |                         | A$000s |   |   |   | A$000s |   |   |   | A$000s |   |   |   | A$000s |   |   |   | A$000s |   |   |   | US$000s |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                           |   |                         | 1,149  |   |   |   | 17,994 |   |   |   | 130,076 |   |   |   | 120,433 |   |   |   | 80,241 |   |   |   | 81,549 |   |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total liabilities                                      |   |                         | (1,881 | )      |   |   | (1,035 | ) |   |   | (3,317 | ) |   |   | (5,534 | ) |   |   | (6,604 | ) |   |   | (6,712 | ) |
|                                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total equity                                           |   |                         | (732   | )      |   |   | 16,959 |   |   |   | 126,759 |   |   |   | 114,899 |   |   |   | 73,637 |   |   |   | 74,837 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          (1)       Effective November 17, 2006, Legend issued one (1) new bonus share of Common Stock for every two (2) shares of Common Stock outstanding on the record at that date. The issue of the new bonus shares of Common Stock were on a pro-rate basis to all shareholders. As a result, the Company issued 27,599,722 shares of its Common Stock. Effective December 31, 2006, Legend issued one (1) new bonus share of Common Stock for every two (2) shares of Common Stock outstanding on the record at that date. The issue of the new bonus shares of Common Stock were on a pro-rata basis to all shareholders. As a result, the Company issued 41,934,337 shares of its Common Stock. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |

----

| Item 6. | Management’s Discussion and Analysis of Financial Condition and Results of Operation. |
|---------|---------------------------------------------------------------------------------------------|

|   | Year ended        |   |   |
|--------|-------------------|--------|--------|
|   |  December 31 |   |   |
|   | 2009              | A$1.00 | =      | US$0.8931 |
|   | 2010              | A$1.00 | =      | US$1.0163 |

----

| (i) | an increase in exploration expenditure written off from A$25,608,743 in 2009 to A$25,705,125 (US$26,124,119) in 2010. Our accounting policy is to expense all exploration costs (including costs associated with the acquisition of tenement interests) as incurred. The exploration costs include drilling, geological, geophysical and mineral analysis contractors, salaries for contract field staff, travel costs, accommodation and tenement costs.  In the current year in relation to our diamond activities, drilling and trial testing continued from January 2010 at Merlin and surrounding areas and included within exploration expenditure is A$7,935,740 (2009: A$7,181,714). On our phosphate activities, we continued to advance the current feasibility test work but this only included limited drilling and work continued on investigations into a mining operation. During 2009, we continued our drilling programs on the phosphate project in Queensland took place for the entire year as well as continuing the sampling program throughout the year in the Northern Territory. The costs included drilling, assaying, camp costs, aerial surveying, geological/geophysical contractors, salaries and associated costs for contract field staff, travel, accommodation, meals and tenement holding costs. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | a decrease in interest expense from A$64,831 in 2009 to A$61,326 (US$62,325) in 2010. During 2010 and 2009, we incurred interest on the motor vehicle finance leases. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | a decrease in aircraft maintenance costs from A$1,014,986 in 2009 to A$587,163 (US$596,734) in 2010. The Company purchased an aircraft in August 2008 to utilize in its field operations and has incurred operating costs for the aircraft since that time. In 2009, the aircraft underwent a scheduled maintenance program and there is no such requirement for a maintenance program in 2010. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iv) | an increase in legal, professional and accounting from A$880,851 for 2009 to A$898,437 (US$913,082) for 2010. During 2010, we incurred legal expenses of A$334,393 (US$339,844) for general legal work including tenement acquisition and sale and A$196,308 (US$199,508) paid to independent experts and other consultants for business development; audit fees of A$281,385 (US$285,972) for professional services in relation to financial statements, the quarterly Form 10-Qs, Form 10-K and Form 10-K/A and quarterly, half year and annual reporting in Australia for NADL; and taxation fees of A$86,351 (US$87,758) relating to both the Company and its subsidiaries. During 2009, we incurred legal expenses of A$407,549  for general legal work including stock transfer matters, regulatory filings, stock option plans, native title and environmental approvals, asset acquisitions, and Form S-1 Registration Statements in both the US and Australia; audit fees of A$384,747  for professional services in relation to financial statements, the quarterly Form 10-Qs, Form 10-K, Form 10-K/A and Form S-1 and quarterly, half year and annual reporting in Australia for NADL; and taxation fees of A$69,875 relating to both the Company and its subsidiaries. Included within legal, accounting and professional expense for the year ended December 31, 2009 are the following amounts for NADL A$66,854 being a fee paid to tax consultants for the preparation of the research and development claim, legal fees of A$16,737, professional fees paid to attorney’s independent experts and other consultants for takeover defense costs of A$27,771. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | an increase in amortization of mineral rights from A$582,710 in 2009 to A$1,398,502 (US$1,421,297) in 2010. On the acquisition date of the business combination of NADL, the Company recognized mineral rights of A$18,873,000. The underlying mineral property licences have a set term and mineral rights are being amortized over the term of the licences. The acquisition occurred during 2009. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | an increase in administrative costs from A$8,217,286 in 2009 to A$10,398,897 (US$10,568,399) in 2010. During 2010, the corporate management and service fees charged to us by AXIS was A$1,360,504 (US$1,382,680). AXIS charged us A$3,832,026 (US$3,894,488) for Directors’ fees, salaries and salary related matters incurred in behalf of the Company, which relates to our share of salaries paid to the President & Chief Executive Officer, Chief Financial Officer and Secretary, Executive General Manager, General Manager Business, Project Manager and other staff of AXIS who provide services to the Company, and A$258,000 (US$262,205) for independent directors’ fees. The Company paid insurance costs of A$287,953 (US$292,645), for 2010. The Company incurred A$1,193,904 (US$1,213,365) for travel by Directors and officers, contractors, and other AXIS staff who provide services to the Company on capital raising trips, trips to the field; A$1,170,405 (US$1,189,483) for investor relations consultants; A$42,145 (US$42,832) in borrowing costs and bank fees; A$25,406 (US$25,820) for motor vehicles costs; A$409,457 (US$416,131) for public relations; A$106,149 (US$107,879) for stock transfer agent services; A$112,803 (US$114,642) for office and computing consumables; A$161,452 (US$164,083) for staff support costs; A$723,774 (US$735,571) for rent of offices in Melbourne, Mt Isa, Perth and New York and an apartment in Melbourne; A$153,503 (US$156,005) for subscription to industry papers and services; A$74,953 (US$76,178) for telecommunications support; A$205,738 (US$209,091) for depreciation of non-field assets and minor equipment purchases; A$25,012 (US$25,419) for Delaware franchise tax; A$133,036 (US$135,205) in donations to local community groups; general costs of A$122,677 (US$124,676). During 2009, the corporate management and service fees charged to us by AXIS was A$4,433,074. AXIS charged us A$2,968,765 for Directors’ fees, salaries and salary related matters incurred in behalf of the Company, which relates to our share of salaries paid to the President & Chief Executive Officer, Chief Financial Officer and Secretary, Executive General Manager, General Manager Business, Project Manager and other staff of AXIS who provide services to the Company, and A$208,578 for independent directors’ fees. The Company paid insurance costs of A$536,364, including the Federal Government of Australia insurance policy on cash at bank in Australia in excess of A$1,000,000, for 2009. The Company incurred A$1,062,977 for travel by Directors and officers, contractors, and other AXIS staff who provide services to the Company on capital raising trips, trips to the field; A$467,204 for investor relations consultants; A$62,385 for  work on the ASX listing; A$9,291 in borrowing costs and bank fees; A$102,572 for motor vehicles costs; A$51,149 for public relations; A$46,111 for stock transfer agent services; A$206,344 for office and computing consumables;A$118,875 for staff support costs; A$555,260  for rent of offices in Melbourne, Mt Isa, Perth and New York and an apartment; A$39,138  for subscription to industry papers and services; A$43,361 for telecommunications support; A$66,715  for depreciation of non-field assets and minor equipment purchases; A$60,095 for Delaware franchise tax; A$86,800 in donations to local community groups; general costs of A$279,036. AXIS charge an administration and service fee of A$1,264,759. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (vii) | Stock based compensation has decreased from A$4,259,903 for 2009 to A$1,727,922 (US$1,756,087) for 2010. The Company has issued options under the 2006 Incentive Option Plan in throughout 2006, 2007, 2008, 2009 and 2010. The decrease is the result of options being fully vested in prior periods and an adjustment for forfeited options. See note 7 for further details on the options issued. |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (i) | an increase in exploration expenditure written off from A$8,780,037 in 2008 to A$25,608,743 in 2009. Our accounting policy is to expense all exploration costs (including costs associated with the acquisition of tenement interests) as incurred. During 2009, we continued our drilling programs on the phosphate project in Queensland for the entire year as well as continuing the sampling program throughout the year in the Northern Territory. The costs included drilling, assaying, camp costs, aerial surveying, geological/geophysical contractors, salaries and associated costs for contract field staff, travel, accommodation, meals and tenement holding costs. During 2008, we commenced a significant drilling program at our phosphate project in Queensland in September 2008 and a detailed sampling program in the Northern Territory. On our Queensland phosphate project, we also commenced early stage investigations into a mining operation. The costs included drilling, assaying, camp costs, aerial surveying, geological/geophysical contractors, salaries and associated costs for contract field staff, travel, accommodation, meals and tenement holding costs. During 2008, we incurred A$3,729,592 in costs for exploration drilling on our tenements in the Northern Territory. The costs included drilling, helicopter support, geological/geophysical contractors, salaries and associated costs for contract field staff, travel, accommodation, meals and tenement holding costs. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | an increase in interest expense from A$32,715 in 2008 to A$64,831 in 2009. During 2009, we incurred interest on the motor vehicle finance leases for a full 12 months compared to 2008 when we incurred interest on the camp lease and motor vehicle finance lease for part of the year. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | an increase in aircraft maintenance costs from A$278,826 in 2008 to A$1,014,986 in 2009. The Company purchased a Lear jet from AXIS in August 2008 to utilize in its field operations and has incurred operating costs for the jet since that time. In 2009, the lear jet was owned and used for a full 12 month period. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (iv) | an increase in legal, professional and accounting from A$707,444 for 2008 to A$880,851 for 2009. During 2009, we incurred legal expenses of A$407,549 for general legal work including stock transfer matters, regulatory filings, stock option plans, native title and environmental approvals, asset acquisitions, and Form S-1 Registration Statements in both the US and Australia; audit fees of A$384,747 for professional services in relation to financial statements, the quarterly Form 10-Qs, Form 10-K, Form 10-K/A and Form S-1; and taxation fees of A$69,875 relating to both the Company and its subsidiaries. Included within legal, accounting and professional expense for the year ended December 31, 2009 are the following amounts for NADL A$66,854 being a fee paid to tax consultants for the preparation of the research and development claim, legal fees of A$16,737, professional fees paid to attorney’s independent experts and other consultants for takeover defence costs of A$27,771 for which there is no comparative amount in 2008. During 2008, we incurred legal expenses of A$518,273 for general legal work including stock transfer matters, regulatory filings, stock option plans, native title and environmental approvals, asset acquisitions, and Form S-1 Registration Statements; audit fees of A$176,198 for professional services in relation to financial statements, the quarterly Form 10-Qs, Form 10-K, and Form S-1; and taxation fees of $11,492. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v) | an increase in amortization of mineral rights from A$nil in 2008 to A$582,710 in 2009. On the acquisition date of the business combination of NADL, the Company recognized mineral rights of A$18,873,000. The underlying mineral property licences have a set term and mineral rights are being amortized over the term of the licences. The acquisition occurred during 2009 and therefore there was no comparable amounts in 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi) | a increase in administrative costs from A$8,096,798 in 2008 to A$8,217,286 in 2009. During 2009, the corporate management and service fees charged to us by AXIS was A$4,433,074. AXIS charged us A$2,968,765 for Directors’ fees, salaries and salary related matters incurred in behalf of the Company, which relates to our share of salaries paid to the President & Chief Executive Officer, Chief Financial Officer and Secretary, Executive General Manager, General Manager Business, Project Manager and other staff of AXIS who provide services to the Company, and A$208,578 for independent directors’ fees. The Company paid insurance costs of A$536,364, including the Federal Government of Australia insurance policy on cash at bank in Australia in excess of A$1,000,000, for 2009. The Company incurred A$1,062,977 for travel by Directors and officers, contractors, and other AXIS staff who provide services to the Company on capital raising trips, trips to the field; A$467,204 for investor relations consultants; A$62,385 for work on the ASX listing; A$9,291 in borrowing costs and bank fees; A$102,572 for motor vehicles costs; A$51,149 for public relations; A$46,111 for stock transfer agent services; A$206,344 for office and computing consumables; A$118,875 for staff support costs; A$555,260 for rent of offices in Melbourne, Mt Isa, Perth and New York and an apartment; A$39,138 for subscription to industry papers and services; A$43,361 for telecommunications support; A$66,715 for depreciation of non-field assets and minor equipment purchases; A$60,095 for Delaware franchise tax; A$86,800 in donations to local community groups; general costs of A$279,036. AXIS charge an administration and service fee of A$1,264,759. During 2008, the corporate management and service fees charged to us by AXIS was A$5,413,203. AXIS charged us A$2,459,665 for Directors’ fees, salaries  and salary related matters incurred in behalf of the Company, which relates to our share of salaries paid to the President & Chief Executive Officer, Chief Financial Officer and Secretary, Executive General Manager, General Manager Business, Project Manager and other staff of AXIS who provide services to the Company. The Company paid insurance premiums of A$66,586 for 2008. The Company incurred A$856,703 for travel by Directors and officers, contractors, and other AXIS staff who provide services to the Company on capital raising trips, trips to the field, A$1,269,395 for investor relations consultants and A$15,329 in borrowing costs and bank fees; A$24,068 for motor vehicles costs, A$100,976 for public relations; A$91,672 for stock transfer agent services; and A$5,893 for consumables. During 2008, the Company issued shares to certain shareholders for registration statement non-performance amounting to A$660,494; paid A$213,758 for rent of offices in Melbourne, Mt Isa and New York and an apartment; A$169,489 for subscription to industry papers and services; A$45,231 for telecommunications support; A$78,927 for depreciation of non-field assets and minor equipment purchases, A$60,487 for franchise tax, general costs of A$170,507  AXIS charge A$98,528 for asset usage of plant and equipment, an administration and service fee of A$1,661,723. The overall increase in administration costs related to the increase in activity by the Company as a consequence of providing support to a field exploration program for a full financial year as the exploration projects develop, capital raising activities, preparation of regulatory filings and registration statements. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (vii) | Stock based compensation has decreased from A$5,185,743 for 2008 to A$4,259,903 for 2009. The Company has issued options under the 2006 Incentive Option Plan in throughout 2006, 2007 and 2008. The decrease is the result of options being fully vested in prior periods and an adjustment for forfeited options. See note 7 for further details on the options issued. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | a. | 5,000,000 options, at an exercise price of US$2.50 per share and expiring 60 days from July 11, 2008; |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | b. | 8,000,000 options, at an exercise price of US$3.00 per share and expiring 12 months from July 11, 2008; |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | c. | 8,000,000 options, at an exercise price of US$3.50 per share and expiring 18 months from July 11, 2008; |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | d. | 9,000,000 options, at an exercise price of US$4.00 per share and expiring 24 months from July 11, 2008. |
|--------|----|---------------------------------------------------------------------------------------------------------|

----

| ContractualObligations                                                             |   | TotalA$000’s |   |   | Lessthan1 yearA$000’s |   |   | 1-3YearsA$000’s |   |   | 3-5YearsA$000’s |   |   | More than 5yearsA$000’s |   |
|------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-----------------------------|--------|--------|-----------------------|--------|--------|-----------------------|--------|--------|-------------------------------|--------|
| Long term debt obligations                                                         |   |               | 2,835  |   |                        |   | 224    |                  |   |   | 495                   |   |   |                          | 2,116  |   |   |   | - |   |
| Capital lease obligations                                                          |   |               | 709    |   |                        |   | 455    |                  |   |   | 254                   |   |   |                          | -      |   |   |   | - |   |
| Operating lease obligations                                                        |   |               | 547    |   |                        |   | 277    |                  |   |   | 270                   |   |   |                          | -      |   |   |   | - |   |
| Purchase obligations                                                               |   |               | -      |   |                        |   | -      |                  |   |   | -                     |   |   |                          | -      |   |   |   | - |   |
| Other long term liabilities reflected on the consolidated balance sheet under GAAP |   |               | 926    |   |                        |   | 76     |                  |   |   | 126                   |   |   |                          | 126    |   |   |   | 598 |   |
|                                                                               |   |               |   |   |                        |   |   |                  |   |   |                  |   |   |                          |   |   |   |   |   |   |
|                                                                               |   |               | 5,017  |   |                        |   | 1,032  |                  |   |   | 1,145                 |   |   |                          | 2,242  |   |   |   | 598 |   |

| Item 7. | Quantitative and Qualitative Disclosures About Market Risk. |
|---------|-------------------------------------------------------------|

----

| Item 8. | Financial Statements and Supplementary Data. |
|---------|----------------------------------------------|

| Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
|---------|---------------------------------------------------------------------------------------|

| Item 9A. | Controls and Procedures. |
|----------|--------------------------|

|   | (a) | Management’s Annual Report on Internal Control over Financial Reporting |
|--------|-----|-------------------------------------------------------------------------------|

|   | (b) | Attestation Report of the Independent Registered Public Accounting Firm |
|--------|-----|-------------------------------------------------------------------------|

----

|   | (c) | Changes in Internal Control Over Financial Reporting |
|--------|-----|------------------------------------------------------|

----

| Item 9B. | Other Information. |
|----------|--------------------|

----

PART III

| Item 10. | Directors, Executive Officers and Corporate Governance. |
|----------|---------------------------------------------------------|

| Name            | Age    | Position(s) Held                                                      |
|-----------------|--------|-----------------------------------------------------------------------|
|            |   |                                                                  |
| Joseph Gutnick  | 58     | Chairman of the BoardPresident, Chief Executive Officer and Director. |
|            |   |                                                                  |
| David Tyrwhitt  | 72     | Director                                                              |
|            |   |                                                                  |
| Dr U.S Awasthi  | 65     | Director                                                              |
|            |   |                                                                  |
| Manish Gupta    | 44     | Director                                                              |
|            |   |                                                                  |
| Dr Allan Trench | 47     | Director                                                              |
|            |   |                                                                  |
| Henry Herzog    | 69     | Director                                                              |
|            |   |                                                                  |
| Peter Lee       | 53     | Secretary, Chief Financial Officer and PrincipalAccounting Officer.   |
|            |   |                                                                  |
| Craig Michael   | 33     | Executive General Manager                                             |
|            |   |                                                                  |
| Edward Walker   | 39     | Project Manager                                                       |

----

----

----

----

| Item 11. | Executive Compensation. |
|----------|-------------------------|

----

|   | ● | Adequately and fairly compensate executive officers in relation to their responsibilities, capabilities and contributions to the Company and in a manner that is commensurate with compensation paid by companies of comparable size and at a comparable stage of development within our industry; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Align the interests of the executive officers with those of the stockholders with respect to short-term operating goals and long-term increases in the value of our common stock; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Provide a strong emphasis on equity-based compensation and equity ownership, creating a direct link between stockholder and management interests. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name and PrincipalPosition                              |   | Year         |   | Salary(A$)            |   | Bonus (A$)          |   | Stock Awards (A$) |   | Option Awards (A$)              |   | Non-Equity Incentive Plan Compensation (A$) |   | Change in Pension Value and Nonqualified Deferred Compensation Earnings (A$) |   | All Other Compensation (A$)        |   | Total (A$)              |
|---------------------------------------------------------|--------|--------------|--------|-----------------------|--------|---------------------|--------|-------------------|--------|---------------------------------|--------|---------------------------------------------|--------|------------------------------------------------------------------------------|--------|------------------------------------|--------|-------------------------|
| JosephGutnick, Chairman of the Board, President and CEO |   | 201020092008 |   | 718,031675,210487,000 |   | -125,000100,000     |   | ---               |   | [781,801][776,530]1,323,168 (i) |   | ---                                         |   | ---                                                                          |   | 158,557147,886118,288(ii)     |   | 876,588948,0962,028,456 |
| Peter Lee, CFO & Secretary                          |   | 201020092008 |   | 309,389309,596214,634 |   | -82,50080,000  |   | ---               |   | [67,544][208,412]480,499 (i)    |   | ---                                         |   | ---                                                                          |   | 85,24898,41758,339(ii)(iii)        |   | 394,637490,513833,471   |
| Craig Michael, Executive General Manager           |   | 201020092008 |   | 323,750254,377206,518 |   | -77,50080,000       |   | ---               |   | [97,268][299,500]699,453 (i)    |   | ---                                         |   | ---                                                                          |   | 112,71075,17019,362 (ii)(iii) |   | 436,460407,0471,005,333 |
| Edward Walker, Project Manager                          |   | 20102009     |   | 275,000240,837        |   | -75,000             |   | --                |   | [33,853]71,351(i)               |   | --                                          |   | --                                                                           |   | 27,99040,291(ii)(iii)              |   | 302,990427,479          |

| (i) | The amounts included in the table for option awards have been calculated in accordance with FASB ASC Topic 718. They relate to the value of the options that have not been exercised by the individual and accordingly no value has been realized.  See Note 7 to the Company’s Consolidated Financial Statements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | Includes share of superannuation contributions made by AXIS applicable to salaries charged to the Company. |
|------|------------------------------------------------------------------------------------------------------------|

| (iii) | Includes share of cost of motor vehicle costs made by AXIS applicable to Messrs. Lee, Michael and Walker and accommodation for Mr Michael as charged to the Company. |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Option Awards                                            |   | Stock Awards                                                        |
|----------------------------------------------------------|--------|---------------------------------------------------------------------|
| Name                                                     |   | Number of Securities Underlying Unexercised Options (#) Exercisable |   | Number of Securities UnderlyingUnexercised Options (#) Unexercisable |   | Equity Incentive Plan Awards: Number of SecuritiesUnderlyingUnexercised Unearned Options (#) |   | OptionExercise Price ($) |   | Option Expiration Date |   | Numberof Sharesor Units of StockThat Have Not Vested(#) |   | Market Value of Shares or Units of Stock That Have NotVested($) |   | Equity IncentivePlan Awards: Number of UnearnedShares, Units or Other Rights That Have Not Been Vested (#) |   | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| Joseph Gutnick, Chairman of the Board, President and CEO |   | 5,000,0002,250,000                                             |   | -- |   | -   |   | US$2.00US$1.00 |   | 2/07/189/19/16 |   |  - |   |  - |   |  - |   |  - |
| Peter Lee, CFO and Secretary                             |   | 787,500787,5001,000,000                                             |   | --- |   | -  |   | US$0.444US$1.00US$1.00 |   | 9/19/169/19/1612/28/17 |   | --- |   | --- |   | --- |   | --- |
| Craig Michael, Executive GeneralManager                  |   | 150,000150,0001,250,000                                             |   | --- |   | --- |   | US$0.444US$1.00US$1.00 |   | 9/10/179/10/1712/28/17 |   | --- |   | --- |   | --- |   | --- |
| Edward Walker, Project Manager                           |   | 333,334                                                             |   | - |   | -  |   | US$1.00 |   | 04/12/18 |   | - |   | - |   | - |   | - |

----

|                                                       |      Number of Securities to be     issued upon exercise of     outstanding options,      warrants and rights |      Weighted-average      exercise price of      outstanding options,      warrants and rights |      Number of securities remaining      available future issuance under     equity compensation (excluding      securities reflected in Column One) |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plansapproved by security holders      | 22,875,000                                                                                                                                                                                                        | A$1.32                                                                                                                                                                                              | 2,148,950                                                                                                                                                                                                                                                     |
| Equity compensation plans not approved by security holders | -                                                                                                                                                                                                                 | -                                                                                                                                                                                                   | -                                                                                                                                                                                                                                                             |

| Name            |   | Fees Earned or Paid in Cash (A$) |   | Stock Awards ($) |   | Option Awards ($) (i) |   | Non-Equity Incentive Plan Compensation ($) |   | Change in Pension Value and NonqualifiedDeferred CompensationEarnings |   | All Other Compensation ($) |   | Total (A$) |
|-----------------|--------|----------------------------------|--------|------------------|--------|-----------------------|--------|--------------------------------------------|--------|-----------------------------------------------------------------------|--------|----------------------------|--------|------------|
| David Tyrwhitt  |   | 66,000                           |   | -                |   | -                     |   | -                                          |   | -                                                                     |   |                       |   | 66,000     |
| Dr US Awasthi   |   | 60,000                           |   | -                |   | -                     |   | -                                          |   | -                                                                     |   |                       |   | 60,000     |
| Manish Gupta    |   | -                                |   | -                |   | -                     |   | -                                          |   | -                                                                     |   |                       |   | -          |
| Dr Allan Trench |   | 66,000                           |   | -                |   | -                     |   | -                                          |   | -                                                                     |   |                       |   | 66,000     |
| Henry Herzog    |   | 66,000                           |   | -                |   | -                     |   | -                                          |   | -                                                                     |   |                       |   | 66,000     |

| (i) | The amounts included in the table for option awards has been calculated in accordance with FASB ASC Topic 718. They relate to the value of the options that have not been exercised by the individual and accordingly no value has been realized. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
|----------|-------------------------------------------------------------------------------------------------|

| (i) | each of our present Executive Officers and Directors, |
|-----|-------------------------------------------------------|

| (ii) | each person (including any “group” as that term is defined in Section 13(d)(3) of the Securities  Exchange Act) who beneficially owns more than 5% of our Common Stock, and |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | all of our present Directors and officers as a group. |
|-------|-------------------------------------------------------|

| Title of Class                           | Name                                                                                                   | Number of Shares Owned |         | Percentage of Shares (1) |
|------------------------------------------|--------------------------------------------------------------------------------------------------------|------------------------|--------------|--------------------------|
| Shares of Common Stock                   | Joseph and Stera Gutnick *                                                                             | 75,926,726             | (2)(3)(4)(5) |                     | 33.54 |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | David Tyrwhitt *                                                                                       | 666,666                | (6)          |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | U.S. Awasthi *                                                                                         | 233,334                | (7)          |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | Manish Gupta                                                                                           | 233,334                | (8)          |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | Allan Trench *                                                                                         | 233,334                | (9)          |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | Henry Herzog *                                                                                         | 1,118,274              | (10)(11)     |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | Peter Lee *                                                                                            | 2,575,000              | (12)         |                     | 1.14 |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | Craig Michael *                                                                                        | 1,550,000              | (13)         |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
| Shares of Common Stock                   | Edward Walker *                                                                                        | 333,334                | (14)         |                     | ** |
|                                     |                                                                                                   |                   |         |                     |   |
|                                     | All officers and DirectorsAs a Group                                                                   |  82,870,002       |         |                     |  36.60 |
|                                     |                                                                                                   |                   |         |                     |   |
|  Shares of Common Stock             | Attara Fund Ltd.767 Fifth Avenue –12th Fl.New York, NY 10153                                     |   30,820,900 |  (15)   |                     |  13.61 |
|                                     |                                                                                                   |                   |         |                     |   |
|    Shares of Common Stock | Kisan International Trading, FZEEmaar Business Park No.2,Office 562,Jebel AliDubai, UAEPost Box 261835 | 34,300,464             | (16)         |                     |  15.1 |
|                                     |                                                                                                   |                   |         |                     |   |
|  Shares of Common Stock             | Soros Fund Management LLC888 Seventh AvenueNew York, NY  10106                               | 23,431,180             | (17)         |                     | 10.35 |
|                                     |                                                                                                   |                   |         |                     |   |

| * | unless otherwise indicated, the address for each person is C/- Legend International Holdings, Inc., Level 8, 580 St Kilda Road, Melbourne, Victoria 3004, Australia. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | less than 1% |
|----|--------------|

| (1) | Based on 226,399,674 shares outstanding as of December 31, 2010. |
|-----|------------------------------------------------------------------|

----

| (2) | Includes 48,775,476 shares of Common Stock owned by Renika Pty. Ltd., of both of which Mr Joseph Gutnick, Stera M. Gutnick and members of their family are officers, Directors and principal stockholders. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes  shares issuable to Mr Joseph Gutnick upon exercise of 750,000 stock options of which vested on September 19, 2007, 750,000 options which vested on September 19, 2008, 1,666,667 options which vested on February 7, 2009, 750,000 options which vested on September 19, 2009, 1,666,667 options which vested on February 7, 2010 and 1,666,666 options which vested on February 7, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Joseph Gutnick and Stera Gutnick are husband and wife. |
|-----|--------------------------------------------------------|

| (5) | Includes 19,901,250 shares of Common Stock owned by Chabad House of Caulfield Pty Ltd. (“Chabad House”), a private corporation that is the trustee of the Heichal Menachem Community Centre Fund, a charitable organization. Joseph Gutnick and Stera Gutnick are directors of Chabad House but disclaim any beneficial interest in the shares of Common Stock owned by Chabad House. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Include  shares issuable to Mr. Tyrwhitt upon exercise of stock options which vested on July 21, 2009 and 333,333 options which vested on July 21, 2010. Does not include shares issuable upon exercise of 333,334 options which vest on July 21, 2011. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes  shares issuable  to Dr. Awasthi upon exercise of 116,667 stock options which vested on December 4, 2009 and 116,667 options which vested on December 4, 2010. Does not include shares issuable upon exercise of 116,666 options which vest on December 4, 2011. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes  shares issuable  to Mr. Gupta upon exercise of 116,667 stock options which vested on December 4, 2009 and 116,667 options which vested on December 4, 2010. Does not include shares issuable upon exercise of 116,666 options which vest on December 4, 2011. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes  shares issuable to Dr. Trench upon exercise of stock 116,667 options which vested on August 11, 2009 and 116,667 options which vested on August 11, 2010. Does not include shares issuable upon exercise of 116,666 options which vest on August 11, 2011. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Includes 884,940 shares of Common Stock owned by Riccalo Pty. Ltd., of which Mr Henry Herzog and members of his family are officers, Directors and principal stockholders. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes  shares issuable  to Mr. Herzog upon exercise of 116,667 stock options which vested on December 4, 2009 and 116,667 options which vested on December 4, 2010. Does not include shares issuable upon exercise of 116,666 options which vest on December 4, 2011. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Includes  shares issuable to Mr. Peter Lee upon exercise of 525,000 stock options of which vested on September 19, 2007, 525,000 options which vested on September 19, 2008, 333,333 options which vested on December 28, 2008, 333,333 options which vested on December 28, 2009, 525,000 options which vested on September 19, 2009 and 333,334 options which vested on December 28, 2010. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Includes  shares issuable to Mr. Craig Michael upon exercise of 100,000 stock options of which vested on September 10, 2008, 416,666 options which vested on December 28, 2008, 100,000 options which vested on September 10, 2009, 416,667 options which vested on December 28, 2009, 100,000 options which vested on September 10, 2010 and 416,667 options which vested on December 28, 2010. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Includes  shares issuable to Mr. Walker upon exercise of 166,667 stock options which vested on December 4, 2009 and166,667 options which vested on December 4, 2010. Does not include 166,666 shares issuable upon exercise of options which vest on December 4, 2011. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (15) | In accordance with a Schedule 13G dated December 3, 2009, Attara Capital L.P. and Mr. David Slager may be deemed to be beneficial owners of the shares of Common Stock. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Includes 34,300,464 shares of common stock owned by Kisan International Trading, FZE, a subsidiary of Indian Farmers Fertilizer Cooperative Limited (“IFFCO”). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | Based upon a Schedule 13G/A filed with the SEC on February 16, 2010:  Represents Shares held for the account of Quantum Partners LDC, a Cayman Islands exempted limited duration company (“Quantum Partners”) Quantum EMEA Fund Ltd., a Cayman Islands exempted limited liability company (“Quantum EMEA”), and RS Capital Partners Ltd., a Cayman Islands exempted limited liability company (“RE Capital”).  Soros Fund Management LLC (“SFM LLC”) serves as principal investment manager to Quantum Partners, Quantum EMEA, and RS Capital.  As such, SFM LLC has been granted investment discretion over portfolio investments, including the Shares, held for the account of Quantum Partners, Quantum EMEA, and RS Capital.  George Soros serves as Chairman of SFM LLC, Robert Soros serves as Deputy Chairman of SFM LLC, and Jonathan Soros serves as President and Deputy Chairman of SFM LLC. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
|----------|----------------------------------------------------------------------------|

----

----

| Item 14. | Principal Accounting Fees and Services. |
|----------|-----------------------------------------|

|       |   |   | 2010A$  |   |   |   | 2009A$  |   |
|------------|--------|--------|---------|--------|--------|--------|---------|--------|
|       |   |   |    |   |   |   |    |   |
| Audit fees |   |   | 212,325 |   |   |   | 220,199 |   |
| Tax fees   |   |   | 33,054  |   |   |   | 35,102  |   |
|       |   |   |    |   |   |   |    |   |
| Total      |   |   | 245,379 |   |   |   | 255,301 |   |

----

PART IV

| Item 15. | Exhibits, Financial Statement Schedules. |
|----------|------------------------------------------|

| (1)    | All Financial Statements                                                                                                                                                                       |       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|   |                                                                                                                                                                                           | Page       |
|   |                                                                                                                                                                                           |       |
|   | Report of Independent Registered Public Accounting Firm                                                                                                                                        | F-1        |
|   | Consolidated Balance Sheet                                                                                                                                                                     | F-2        |
|   | Consolidated Statements of Operations                                                                                                                                                          | F-3        |
|   | Consolidated Statements of Stockholders’ Equity (Deficit)                                                                                                                                | F-4        |
|   | Consolidated Statements of Cash Flows                                                                                                                                                          | F-7        |
|   | Notes to Consolidated Financial Statements                                                                                                                                                     | F-8 - F-24 |
|   |                                                                                                                                                                                           |       |
| (2)    | Financial Statements Schedule                                                                                                                                                                  |       |
|   |                                                                                                                                                                                           |       |
|   | All other schedules have been omitted because they are not applicable or not required, or because the required information is shown in the consolidated financial statements or notes thereto. |       |
|   |                                                                                                                                                                                           |       |
| (3)    | Exhibits                                                                                                                                                                                       |       |
|   |                                                                                                                                                                                           |       |

----

SIGNATURES

|                  | LEGEND INTERNATIONAL HOLDINGS, INC. |
|-----------------------|-------------------------------------|
|                  |                                |   |
|                  | (Registrant)                        |   |
|                  |                                |   |
|                  |                                |   |
|                  |                                | /s/ Peter Lee |   |
|                  | By:                                 |   |   |
|                  |                                | Peter J Lee |   |
|                  |                                | Chief Financial Officer and Secretary |   |
|                  |                                |   |
|                  |                                |   |
| Dated: March 15, 2011 |                                |   |
|                  |                                |   |

----

| Signature | Title              |                           | Date   |
|-----------|--------------------|--------------------------------|--------|
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ Joseph Gutnick |                           |   |   |
| 1.        |               | Chairman of the Board,         |   |   |
|      | Joseph Gutnick     | President and Chief Executive  |   |   |
|      |               | Officer (Principal Executive   |   |   |
|      |               | Officer) and Director          |   | March 15, 2011 |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ David Tyrwhitt |                           |   |   |
| 2.        |               | Director                       |   | March 15, 2011 |
|      | David Tyrwhitt     |                           |   |   |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ Peter Lee      |                           |   |   |
| 3.        |               | Chief Financial Officer and    |   |   |
|      | Peter Lee          | Secretary (Principal Financial |   |   |
|      |               | and Accounting Officer)        |   | March 15, 2011 |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ U S Awasthi    |                           |   |   |
| 4.        |               | Director                       |   | March 15, 2011 |
|      | U S Awasthi        |                           |   |   |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ Manish Gupta   |                           |   |   |
| 5.        |               | Director                       |   | March 15, 2011 |
|      | Manish Gupta       |                           |   |   |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ Allan Trench   |                           |   |   |
| 6.        |               | Director                       |   | March 15, 2011 |
|      | Allan Trench       |                           |   |   |
|      |               |                           |   |   |
|      |               |                           |   |   |
|      | /s/ Henry Herzog   |                           |   |   |
| 7.        |               | Director                       |   | March 15, 2011 |
|      | Henry Herzog       |                           |   |   |

----

| Exhibit No. | Exhibit                                                                                                                                               |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                  |
| 1.1         | Subscription Agreement (1)                                                                                                                            |
|        |                                                                                                                                                  |
| 3.1         | Certificate of Incorporation (1)                                                                                                                      |
|        |                                                                                                                                                  |
| 3.2         | Amended Certificate of Incorporation (2)                                                                                                              |
|        |                                                                                                                                                  |
| 3.3         | Bylaws (1)                                                                                                                                            |
|        |                                                                                                                                                  |
| 3.4         | Specimen Stock Certificate (1)                                                                                                                        |
|        |                                                                                                                                                  |
| 3.5         | Amendment to Certificate of Incorporation (6)                                                                                                         |
|        |                                                                                                                                                  |
| 10.1        | 2006 Incentive Option Plan (3)                                                                                                                        |
|        |                                                                                                                                                  |
| 10.2        | Contract for the Sale of Mining Tenements (4)                                                                                                         |
|        |                                                                                                                                                  |
| 10.3        | Subscription Agreement dated as of December 12, 2007 (6)                                                                                              |
|        |                                                                                                                                                  |
| 10.4        | Agreement with Iron Duyfken Pty Limited dated November 2, 2007 (7)                                                                                    |
|        |                                                                                                                                                  |
| 10.5        | Agreement with Ansett Resources & Industries Pty Ltd. dated November 7, 2007 (7)                                                                  |
|        |                                                                                                                                                  |
| 10.6        | Agreement with King Eagle Resources Pty Limited dated December 7, 2007 (8)                                                                            |
|        |                                                                                                                                                  |
| 10.7        | Form of Subscription Agreement for BMO Offering (9)                                                                                                   |
|        |                                                                                                                                                  |
| 10.8        | Agency Agreement dated as of June 3, 2008 (9)                                                                                                         |
|        |                                                                                                                                                  |
| 10.9        | Registration Rights Agreement dated as of June 3, 2008 (9)                                                                                            |
|        |                                                                                                                                                  |
| 10.10       | Form of Broker Warrant (9)                                                                                                                            |
|        |                                                                                                                                                  |
| 10.11       | Share Options agreement dated July 14, 2008 with Indian Farmers Fertilizer Cooperative Limited (IFFCO)(10)                                            |
|        |                                                                                                                                                  |
| 10.12       | Service Agreement with AXIS Consultants Pty Ltd dated February 25, 2005 (11)                                                                          |
|        |                                                                                                                                                  |
| 21.1        | Subsidiaries of the Registrant (5)                                                                                                                    |
|        |                                                                                                                                                  |
| 31.1        | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Joseph Isaac Gutnick (5)    |
|        |                                                                                                                                                  |
| 31.2        | Certification of Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Peter James Lee (5)      |
|        |                                                                                                                                                  |
| 32.1        | Certification of Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Joseph Isaac Gutnick (5) |
|        |                                                                                                                                                  |
| 32.2        | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Peter James Lee (5)         |

| (1)    | Incorporated herein by reference to the Company’s Registration Statement on Form SB-2, filed on February 2, 2001, File No. 333-55116, and the amendments thereto. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                    |
| (2)    | Incorporated herein by reference to the Company’s current report on Form 8-K filed on March 21, 2003.                                                             |
|   |                                                                                                                                                                    |
| (3)    | Incorporated herein by reference to the Appendix to the Company’s Proxy Statement filed on October 19, 2006.                                                      |

----

|   |                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)    | Incorporated by reference to the Company’s current report on Form 8-K filed on March 10, 2006.                                                                       |
|   |                                                                                                                                                                       |
| (5)    | Filed herewith                                                                                                                                                             |
|   |                                                                                                                                                                       |
| (6)    | Incorporated herein by reference to the Company’s Form 10-K filed on March 17, 2008                                                                                  |
|   |                                                                                                                                                                       |
| (7)    | Incorporated herein by reference to the Company’s Current Report on Form 8-K filed on December 28, 2007.                                                             |
|   |                                                                                                                                                                       |
| (8)    | Incorporated herein by reference to the Company’s Current Report on Form 8-K filed on December 28, 2007.                                                             |
|   |                                                                                                                                                                       |
| (9)    | Incorporated herein by reference to the Company’s Post Effective Amendment No 1 Registration Statement on Form S-1 filed on July 18, 2008 (SEC File No. 333-145082). |
|   |                                                                                                                                                                       |
| (10)   | Incorporated herein by reference to the Company’s current Report on Form 8-K filed on July 16, 2008.                                                                 |
|   |                                                                                                                                                                       |
| (11)   | Incorporated herein by reference to the Company’s Current Report on Form 8-K filed on March 8, 2005.                                                                 |

----

----

|                                                            | Page            |
|-----------------------------------------------------------------|-----------------|
|                                                            |            |
| Report of Independent Registered Public Accounting Firm         | F-1             |
|                                                            |            |
| Consolidated Balance Sheet                                      | F-2             |
|                                                            |            |
| Consolidated Statements of Operations                           | F-3             |
|                                                            |            |
| Consolidated Statements of Stockholders’ Equity (Deficit) | F-4             |
|                                                            |            |
| Consolidated Statements of Cash Flows                           | F-7             |
|                                                            |            |
| Notes to Consolidated Financial Statements                      | F-8– F-24 |

----

----

|                                                           |   |   | 2010A$       |   |   |   | 2009A$      |   |   | ConvenienceTranslation2010US$ |         |
|----------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|-------------|--------|--------|-------------------------------|--------------|
| ASSETS                                                         |   |   |         |   |   |   |        |   |   |                          |         |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |
| Current Assets:                                                |   |   |         |   |   |   |        |   |   |                          |         |
| Cash                                                           |   |   | 25,165,910   |   |   |   | 72,666,088  |   |   |                          | 25,576,114   |   |
| Receivables                                                    |   |   | 1,164,854    |   |   |   | 1,148,567   |   |   |                          | 1,183,841    |   |
| Prepayments                                                    |   |   | 913,035      |   |   |   | 644,033     |   |   |                          | 927,917      |   |
| Inventories                                                    |   |   | 109,978      |   |   |   | 254,544     |   |   |                          | 111,771      |   |
| Other investments (note 10)                                    |   |   | 2,784,477    |   |   |   | -           |   |   |                          | 2,829,865    |   |
| Marketable securities (note 10)                                |   |   | 263,741      |   |   |   | -           |   |   |                          | 268,040      |   |
| Total Current Assets                                           |   |   | 30,401,995   |   |   |   | 74,713,232  |   |   |                          | 30,897,548   |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Non-Current Assets:                                            |   |   |         |   |   |   |        |   |   |                          |         |   |
| Property and equipment, net (note 3)                           |   |   | 13,832,017   |   |   |   | 8,473,654   |   |   |                          | 14,057,479   |   |
| Investment in unconsolidated entities (note 6)                 |   |   | 13,569,731   |   |   |   | 10,409,693  |   |   |                          | 13,790,918   |   |
| Other investments                                              |   |   | 200,000      |   |   |   | 2,928,294   |   |   |                          | 203,260      |   |
| Deposits (note 5)                                              |   |   | 1,176,468    |   |   |   | 2,659,494   |   |   |                          | 1,195,644    |   |
| Advances to affiliates (note 11)                               |   |   | 3,039,486    |   |   |   | 1,243,172   |   |   |                          | 3,089,030    |   |
| Prepayments                                                    |   |   | 36,850       |   |   |   | 622,272     |   |   |                          | 37,450       |   |
| Mineral Rights (note 13)                                       |   |   | 16,891,787   |   |   |   | 18,290,290  |   |   |                          | 17,167,123   |   |
| Goodwill (note 12)                                             |   |   | 1,092,950    |   |   |   | 1,092,950   |   |   |                          | 1,110,765    |   |
| Total Non-Current Assets                                       |   |   | 49,839,289   |   |   |   | 45,719,819  |   |   |                          | 50,651,669   |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Total Assets                                                   |   |   | 80,241,284   |   |   |   | 120,433,051 |   |   |                          | 81,549,217   |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| LIABILITIES                                                    |   |   |         |   |   |   |        |   |   |                          |         |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Current Liabilities:                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Accounts payable and accrued expenses                          |   |   | 2,133,651    |   |   |   | 4,086,609   |   |   |                          | 2,168,430    |   |
| Current portion of long-term debt (note 14)                    |   |   | 224,078      |   |   |   | -           |   |   |                          | 227,730      |   |
| Lease liability (note 9)                                       |   |   | 455,012      |   |   |   | 213,550     |   |   |                          | 462,429      |   |
| Total Current Liabilities                                      |   |   | 2,812,741    |   |   |   | 4,300,159   |   |   |                          | 2,858,589    |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Non Current Liabilities:                                       |   |   |         |   |   |   |        |   |   |                          |         |   |
| Reclamation and remediation provision (note 8)                 |   |   | 926,127      |   |   |   | 935,558     |   |   |                          | 941,223      |   |
| Long-term debt (note 14)                                       |   |   | 2,611,404    |   |   |   | -           |   |   |                          | 2,653,970    |   |
| Lease liability (note 9)                                       |   |   | 254,138      |   |   |   | 297,914     |   |   |                          | 258,280      |   |
| Total Non Current Liabilities                                  |   |   | 3,791,669    |   |   |   | 1,233,472   |   |   |                          | 3,853,473    |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Total Liabilities                                              |   |   | 6,604,410    |   |   |   | 5,533,631   |   |   |                          | 6,712,062    |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Commitments and Contingencies (Note 16)                        |   |   |         |   |   |   |        |   |   |                          |         |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Stockholders’ Equity                                     |   |   |         |   |   |   |        |   |   |                          |         |   |
| Common stock: US$.001 par value, 300,000,000 shares authorised |   |   |         |   |   |   |        |   |   |                          |         |   |
| 226,399,674 and 226,333,392 shares issued and outstanding      |   |   | 275,178      |   |   |   | 275,101     |   |   |                          | 279,663      |   |
| Additional paid-in-capital                                     |   |   | 163,808,290  |   |   |   | 163,765,820 |   |   |                          | 166,478,365  |   |
| Accumulated other comprehensive loss                           |   |   | (1,925,922   | )      |   |   | (388,529    | )      |   |                          | (1,957,314   | ) |
| Retained deficit prior to exploration activities               |   |   | (839,463     | )      |   |   | (839,463    | )      |   |                          | (853,146     | ) |
| Retained deficit during exploration period                     |   |   | (101,591,085 | )      |   |   | (65,262,031 | )      |   |                          | (103,247,020 | ) |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Legend Stockholders’ Equity                              |   |   | 59,726,998   |   |   |   | 97,550,898  |   |   |                          | 60,700,548   |   |
| Non-controlling interests                                      |   |   | 13,909,876   |   |   |   | 17,348,522  |   |   |                          | 14,136,607   |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Total Equity                                                   |   |   | 73,636,874   |   |   |   | 114,899,420 |   |   |                          | 74,837,155   |   |
|                                                           |   |   |         |   |   |   |        |   |   |                          |         |   |
| Total Liabilities and Equity                                   |   |   | 80,241,284   |   |   |   | 120,433,051 |   |   |                          | 81,549,217   |   |

----

|                                                                       |   |  For the years EndedDecember 31, 2010 |        |   |   | ConvenienceTranslation |        |   | January 5, 2001 (Inception) to December 31, |   |
|----------------------------------------------------------------------------|--------|--------------------------------------------|-------------|--------|--------|------------------------|-------------|--------|---------------------------------------------|--------|
|                                                                       |   |                                       | 2008A$      |   |   |                   | 2009A$      |   |                                        |   | 2010A$ |   |   | 2010US$ |   |   |   | 2010A$ |   |
| Revenues:                                                                  |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Sales                                                                      |   |                                       | -           |   |   |                   | -           |   |                                        |   | - |   |   |   | - |   |   |   | 6,353 |   |
| less cost of sales                                                         |   |                                       | -           |   |   |                   | -           |   |                                        |   | - |   |   |   | - |   |   |   | (1,362 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                               |   |                                       | -           |   |   |                   | -           |   |                                        |   | - |   |   |   | - |   |   |   | 4,991 |   |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Other income                                                               |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Interest income – related entity                                     |   |                                       | 49,931      |   |   |                   | 81,503      |   |                                        |   | 174,011 |   |   |   | 176,847 |   |   |   | 305,445 |   |
| Interest income – other                                              |   |                                       | 3,669,440   |   |   |                   | 3,338,315   |   |                                        |   | 2,081,829 |   |   |   | 2,115,763 |   |   |   | 9,115,642 |   |
| Other                                                                      |   |                                       | 6,534       |   |   |                   | 403,266     |   |                                        |   | 682,048 |   |   |   | 693,165 |   |   |   | 1,091,848 |   |
| Total Other income                                                         |   |                                       | 3,725,905   |   |   |                   | 3,823,084   |   |                                        |   | 2,937,888 |   |   |   | 2,985,775 |   |   |   | 10,512,935 |   |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                        |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Legal, professional and accounting                                         |   |                                       | 707,444     |   |   |                   | 880,851     |   |                                        |   | 898,437 |   |   |   | 913,082 |   |   |   | 2,835,192 |   |
| Exploration expenditure                                                    |   |                                       | 8,780,037   |   |   |                   | 25,608,743  |   |                                        |   | 25,705,125 |   |   |   | 26,124,119 |   |   |   | 69,037,290 |   |
| Aircraft maintenance                                                       |   |                                       | 278,826     |   |   |                   | 1,014,986   |   |                                        |   | 587,163 |   |   |   | 596,734 |   |   |   | 1,880,975 |   |
| Stock based compensation                                                   |   |                                       | 5,185,743   |   |   |                   | 4,259,903   |   |                                        |   | 1,727,922 |   |   |   | 1,756,087 |   |   |   | 12,320,465 |   |
| Interest expense                                                           |   |                                       | 32,715      |   |   |                   | 64,831      |   |                                        |   | 61,326 |   |   |   | 62,325 |   |   |   | 271,003 |   |
| Impairment of investment                                                   |   |                                       | 326,526     |   |   |                   | -           |   |                                        |   | - |   |   |   | - |   |   |   | 326,526 |   |
| Amortization of mineral rights                                             |   |                                       | -           |   |   |                   | 582,710     |   |                                        |   | 1,398,502 |   |   |   | 1,421,297 |   |   |   | 1,981,212 |   |
| Administration expenses                                                    |   |                                       | 8,096,798   |   |   |                   | 8,217,286   |   |                                        |   | 10,398,897 |   |   |   | 10,568,399 |   |   |   | 30,026,625 |   |
| Total costs and expenses                                                   |   |                                       | (23,408,089 | )      |   |                   | (40,629,310 | )      |                                        |   | (40,777,372 | ) |   |   | (41,442,043 | ) |   |   | (118,679,288 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) from operations                                                     |   |                                       | (19,682,184 | )      |   |                   | (36,806,226 | )      |                                        |   | (37,839,484 | ) |   |   | (38,456,268 | ) |   |   | (108,161,362 | ) |
| Adjustment to fair value on stepped acquisition                            |   |                                       | -           |   |   |                   | 2,200,620   |   |                                        |   | - |   |   |   | - |   |   |   | 2,200,620 |   |
| Writeoff/writedown of assets                                               |   |                                       | -           |   |   |                   | -           |   |                                        |   | (244,924 | ) |   |   | (248,916 | ) |   |   | (244,924 | ) |
| Unrealised gain on marketable securities                                   |   |                                       | 70,874      |   |   |                   | 113,739     |   |                                        |   | 66,891 |   |   |   | 67,981 |   |   |   | 251,504 |   |
| Foreign currency exchange gain/(loss)                                      |   |                                       | 5,389,750   |   |   |                   | (4,661,096  | )      |                                        |   | (674,496 | ) |   |   | (685,490 | ) |   |   | (106,237 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) before income taxes and equity in losses of unconsolidated entities |   |                                       | (14,221,560 | )      |   |                   | (39,152,963 | )      |                                        |   | (38,692,013 | ) |   |   | (39,322,693 | ) |   |   | (106,060,399 | ) |
| Provision for income taxes                                                 |   |                                       | -           |   |   |                   | -           |   |                                        |   | - |   |   |   | - |   |   |   | - |   |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) before equity in losses of unconsolidated entities                  |   |                                       | (14,221,560 | )      |   |                   | (39,152,963 | )      |                                        |   | (38,692,013 | ) |   |   | (39,322,693 | ) |   |   | (106,060,399 | ) |
| Equity in losses of unconsolidated entities (note 6)                       |   |                                       | -           |   |   |                   | (345,707    | )      |                                        |   | (1,440,407 | ) |   |   | (1,463,885 | ) |   |   | (1,786,114 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss)                                                                 |   |                                       | (14,221,560 | )      |   |                   | (39,498,670 | )      |                                        |   | (40,132,420 | ) |   |   | (40,786,578 | ) |   |   | (107,846,513 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) attributable to non-controlling interests                       |   |                                       | -           |   |   |                   | 1,612,599   |   |                                        |   | 3,803,366 |   |   |   | 3,865,361 |   |   |   | 5,415,965 |   |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) attributable to Legend stockholders                             |   |                                       | (14,221,560 | )      |   |                   | (37,886,071 | )      |                                        |   | (36,329,054 | ) |   |   | (36,921,217 | ) |   |   | (102,430,548 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per common shares                                   |   |                                       | (0.07       | )      |   |                   | (0.17       | )      |                                        |   | (0.16 | ) |   |   | (0.16 | ) |   |   | (1.06 | ) |
|                                                                       |   |                                       |        |   |   |                   |        |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares used in per share calculations    |   |                                       | 204,500,520 |   |   |                   | 226,327,933 |   |                                        |   | 226,379,880 |   |   |   | 226,379,880 |   |   |   | 96,881,995 |   |

----

|                                                                              |   | Common Stock |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |
|-----------------------------------------------------------------------------------|--------|--------------|-------------|--------|-------------|--------|---------|-----------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------------|------------|--------|-----------------------------------------------|--------|----------|-----------------------------|--------|
|                                                                              |   | Shares       |        |   | Par ValueA$ |   |    | AdditionalPaid-In CapitalA$ |   |   | Retained (Deficit) During the Exploration PeriodA$ |   |   | Retained (Deficit) Prior to Exploration ActivitiesA$ |       |   | AccumulatedOtherComprehensive Income (Loss)A$ |   |     | Non-Controlling InterestsA$ |   |   | Stockholders’Equity (Deficit)A$ |   |
| Balance, January 5, 2001                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to founder for organisation cost and services at US$0.05 per shares |   |         | 4,297,500   |   |        |   | 5,550   |                        |   |   | 118,896                                            |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 124,446 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services rendered at US$0.05 per share                          |   |         | 146,250     |   |        |   | 189     |                        |   |   | 4,046                                              |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 4,235 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                                            |   |         | 616,500     |   |        |   | 796     |                        |   |   | 17,056                                             |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 17,852 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | (131,421 | )                           |   |   | - |   |   |   | - |   |   |   | (131,421 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2001                                                        |   |         | 5,060,250   |   |        |   | 6,535   |                        |   |   | 139,998                                            |   |   |                                                 | -          |   |                                          |   | (131,421 | )                           |   |   | - |   |   |   | - |   |   |   | 15,112 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                                            |   |         | 225,000     |   |        |   | 291     |                        |   |   | 6,225                                              |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 6,516 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for officer’s compensation                                    |   |         | 11,250,000  |   |        |   | 14,529  |                        |   |   | 148,359                                            |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 162,888 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | (182,635 | )                           |   |   | - |   |   |   | - |   |   |   | (182,635 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2002                                                        |   |         | 16,535,250  |   |        |   | 21,355  |                        |   |   | 294,582                                            |   |   |                                                 | -          |   |                                          |   | (314,056 | )                           |   |   | - |   |   |   | - |   |   |   | 1,881 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services rendered at US$0.022 per share                         |   |         | 5,026,500   |   |        |   | 6,491   |                        |   |   | 139,065                                            |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 145,556 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | (156,965 | )                           |   |   | - |   |   |   | - |   |   |   | (156,965 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2003                                                        |   |         | 21,561,750  |   |        |   | 27,846  |                        |   |   | 433,647                                            |   |   |                                                 | -          |   |                                          |   | (471,021 | )                           |   |   | - |   |   |   | - |   |   |   | (9,528 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services rendered at US$0.022 per share                         |   |         | 2,004,750   |   |        |   | 2,589   |                        |   |   | 55,464                                             |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 58,053 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Options issued for services                                                       |   |         | -           |   |        |   | -       |                        |   |   | 160,672                                            |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 160,672 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan forgiveness-former major shareholder                                         |   |         | -           |   |        |   | -       |                        |   |   | 12,144                                             |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 12,144 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | (234,611 | )                           |   |   | - |   |   |   | - |   |   |   | (234,611 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2004                                                        |   |         | 23,566,500  |   |        |   | 30,435  |                        |   |   | 661,927                                            |   |   |                                                 | -          |   |                                          |   | (705,632 | )                           |   |   | - |   |   |   | - |   |   |   | (13,270 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued on cashless exercise of options                                     |   |         | 17,085,938  |   |        |   | 22,066  |                        |   |   | (22,066                                            | )      |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | (75,508  | )                           |   |   | - |   |   |   | - |   |   |   | (75,508 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2005                                                        |   |         | 40,652,438  |   |        |   | 52,501  |                        |   |   | 639,861                                            |   |   |                                                 | -          |   |                                          |   | (781,140 | )                           |   |   | - |   |   |   | - |   |   |   | (88,778 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Share issued on cashless exercise of options                                      |   |         | 72,281,329  |   |        |   | 93,336  |                        |   |   | (93,336                                            | )      |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares and options issued under settlement agreement                              |   |         | 112,500     |   |        |   | 144     |                        |   |   | 35,272                                             |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 35,416 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                                            |   |         | 12,756,734  |   |        |   | 16,524  |                        |   |   | 3,854,843                                          |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 3,871,367 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of share issues                                                              |   |         | -           |   |        |   | -       |                        |   |   | (128,376                                           | )      |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (128,376 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortisation of options under stock option plan                                   |   |         | -           |   |        |   | -       |                        |   |   | 115,307                                            |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 115,307 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized gain on foreign exchange translation                               |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -          |   |                                          |   | -        |                        |   |   | 38,490 |   |   |   | - |   |   |   | 38,490 |   |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                          |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | (4,516,271 | )      |                                          |   | (58,323  | )                           |   |   | - |   |   |   | - |   |   |   | (4,574,594 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                                        |   |         | 125,803,001 |   |        |   | 162,505 |                        |   |   | 4,423,571                                          |   |   |                                                 | (4,516,271 | )      |                                          |   | (839,463 | )                           |   |   | 38,490 |   |   |   | - |   |   |   | (731,168 | ) |
|                                                                              |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |       |   |                                          |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                   |   | Common Stock |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|-------------|--------|---------|-----------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------------|-------------|--------|-------------------------------------------------|--------|----------|-----------------------------|--------|
|                                                                                                   |   | Shares       |        |   | Par ValueA$ |   |    | AdditionalPaid-In CapitalA$ |   |   | Retained (Deficit) During the Exploration PeriodA$ |   |   | Retained (Deficit) Prior to Exploration ActivitiesA$ |        |   | Accumulated Other Comprehensive Income (Loss)A$ |   |     | Non-Controlling InterestsA$ |   |   | Stockholders’Equity (Deficit)A$ |   |
| Shares issued for cash                                                                                 |   |         | 47,686,624  |   |        |   | 56,438  |                        |   |   | 25,684,666                                         |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 25,741,104 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of share issues                                                                                   |   |         | -           |   |        |   | -       |                        |   |   | (1,675,111                                         | )      |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (1,675,111 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for consulting fees                                                                      |   |         | 2,604,200   |   |        |   | 2,984   |                        |   |   | 1,001,122                                          |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 1,004,106 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued on cashless exercise of options                                                          |   |         | 75,000      |   |        |   | 85      |                        |   |   | (85                                                | )      |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued as a result of delay in lodgement of registration statement                              |   |         | 200,000     |   |        |   | 230     |                        |   |   | 364,575                                            |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 364,805 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for part-settlement of the acquisition of rights to exploration licences under agreement |   |         | 500,000     |   |        |   | 545     |                        |   |   | 517,455                                            |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 518,000 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of options under stock option plan                                                        |   |         | -           |   |        |   | -       |                        |   |   | 375,740                                            |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 375,740 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                               |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | (8,638,129  | )      |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (8,638,129 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                                                             |   |         | 176,868,825 |   |        |   | 222,787 |                        |   |   | 30,691,933                                         |   |   |                                                 | (13,154,400 | )      |                                            |   | (839,463 | )                           |   |   | 38,490 |   |   |   | - |   |   |   | 16,959,347 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash                                                                                 |   |         | 42,000,000  |   |        |   | 44,011  |                        |   |   | 109,984,282                                        |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 110,028,293 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of share issues                                                                                   |   |         |        |   |        |   | -       |                        |   |   | (5,964,346                                         | )      |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (5,964,346 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued on cashless exercise of options                                                          |   |         | 1,522,358   |   |        |   | 1,701   |                        |   |   | (1,701                                             | )      |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued on exercise of options                                                                   |   |         | 5,435,600   |   |        |   | 5,999   |                        |   |   | 13,717,586                                         |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 13,723,585 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for consulting fees                                                                      |   |         | 30,800      |   |        |   | 33      |                        |   |   | 147,555                                            |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 147,588 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued under registration rights agreement                                                      |   |         | 457,809     |   |        |   | 545     |                        |   |   | 899,950                                            |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 900,495 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of options under stock option plan                                                        |   |         | -           |   |        |   | -       |                        |   |   | 5,185,743                                          |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 5,185,743 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                               |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | (14,221,560 | )      |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (14,221,560 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                             |   |         | 226,315,392 |   |        |   | 275,076 |                        |   |   | 154,661,002                                        |   |   |                                                 | (27,375,960 | )      |                                            |   | (839,463 | )                           |   |   | 38,490 |   |   |   | - |   |   |   | 126,759,145 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued on exercise of options                                                                   |   |         | 18,000      |   |        |   | 25      |                        |   |   | 2,738                                              |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 2,763 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of options under stock option plan                                                        |   |         | -           |   |        |   | -       |                        |   |   | 4,259,903                                          |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 4,259,903 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized loss on foreign exchange translation                                                    |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | (427,019 | ) |   |   | - |   |   |   | (427,019 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss attributable to Legend stockholders                                                           |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | (37,886,071 | )      |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (37,886,071 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of non-controlling interest                                                                 |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | 10,261,290 |   |   |   | 10,261,290 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net change in controlling/non-controlling interest                                                     |   |         | -           |   |        |   | -       |                        |   |   | 4,842,177                                          |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | 8,699,831 |   |   |   | 13,542,008 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to non-controlling stockholders                                                  |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -           |   |                                            |   | -        |                        |   |   | - |   |   |   | (1,612,599 | ) |   |   | (1,612,599 | ) |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December  31, 2009                                                                  |   |         | 226,333,392 |   |        |   | 275,101 |                        |   |   | 163,765,820                                        |   |   |                                                 | (65,262,031 | )      |                                            |   | (839,463 | )                           |   |   | (388,529 | ) |   |   | 17,348,522 |   |   |   | 114,899,420 |   |
|                                                                                                   |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |        |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                          |   | Common Stock |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |
|---------------------------------------------------------------|--------|--------------|-------------|--------|-------------|--------|---------|-----------------------------|--------|--------|----------------------------------------------------|--------|--------|------------------------------------------------------|--------------|--------|-------------------------------------------------|--------|----------|-----------------------------|--------|
|                                                          |   | Shares       |        |   | Par ValueA$ |   |    | AdditionalPaid-In CapitalA$ |   |   | Retained (Deficit) During the Exploration PeriodA$ |   |   | Retained (Deficit) Prior to Exploration ActivitiesA$ |         |   | Accumulated Other Comprehensive Income (Loss)A$ |   |     | Non-Controlling InterestsA$ |   |   | Stockholders’ Equity (Deficit)A$ |   |
| Shares issued on cashless exercise of options                 |   |         | 66,282      |   |        |   | 77      |                        |   |   | (77                                                | )      |   |                                                 | -            |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of options under stock option plan               |   |         | -           |   |        |   | -       |                        |   |   | 1,727,922                                          |   |   |                                                 | -            |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 1,727,922 |   |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Options issued for consulting fees                            |   |         | -           |   |        |   | -       |                        |   |   | 247,163                                            |   |   |                                                 | -            |   |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | 247,163 |   |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized loss on foreign exchange translation           |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -            |   |                                            |   | -        |                        |   |   | (1,537,393 | ) |   |   | - |   |   |   | (1,537,393 | ) |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Legend stockholders                  |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | (36,329,054  | )      |                                            |   | -        |                        |   |   | - |   |   |   | - |   |   |   | (36,329,054 | ) |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment due to purchase of additional shares in subsidiary |   |         | -           |   |        |   | -       |                        |   |   | (2,705,136                                         | )      |   |                                                 | -            |   |                                            |   | -        |                        |   |   | - |   |   |   | (1,327,558 | ) |   |   | (4,032,694 | ) |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment due to issue of shares by subsidiary               |   |         | -           |   |        |   | -       |                        |   |   | 772,598                                            |   |   |                                                 | -            |   |                                            |   | -        |                        |   |   | - |   |   |   | 1,692,278 |   |   |   | 2,464,876 |   |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to non-controlling stockholders         |   |         | -           |   |        |   | -       |                        |   |   | -                                                  |   |   |                                                 | -            |   |                                            |   | -        |                        |   |   | - |   |   |   | (3,803,366 | ) |   |   | (3,803,366 | ) |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                    |   |         | 226,399,674 |   |        |   | 275,178 |                        |   |   | 163,808,290                                        |   |   |                                                 | (101,591,085 | )      |                                            |   | (839,463 | )                           |   |   | (1,925,922 | ) |   |   | 13,909,876 |   |   |   | 73,636,874 |   |
|                                                          |   |         |        |   |        |   |    |                        |   |   |                                               |   |   |                                                 |         |   |                                            |   |     |                        |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                      |   | For the years EndedDecember 31 |        |   |   |   |        | Convenience Translation |   |   | January 5, 2001 (Inception) to December 31, |   |
|---------------------------------------------------------------------------|--------|--------------------------------|-------------|--------|--------|--------|-------------|-------------------------|--------|--------|---------------------------------------------|--------|
|                                                                      |   |                           | $2008A      |   |   |   | $2009A      |                    |   |   | $2010A                                      |   |   | 2010US$ |   |   |   | $2010A |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                     |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |
| Net (Loss)                                                                |   |                           | (14,221,560 | )      |   |   | (39,498,670 | )                       |   |   | (40,132,420                                 | )      |   |   | (40,786,578 | ) |   |   | (107,846,513 | ) |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash(used) operating activities: |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Foreign currency exchange loss                                            |   |                           | (5,389,750  | )      |   |   | 4,661,096   |                    |   |   | 674,496                                     |   |   |   | 685,490 |   |   |   | 104,894 |   |
| Unrealised gain on marketable securities                                  |   |                           | (70,874     | )      |   |   | (29,602     | )                       |   |   | (66,891                                     | )      |   |   | (67,981 | ) |   |   | (251,504 | ) |
| Gain on sale of marketable securities                                     |   |                           | -           |   |   |   | (84,137     | )                       |   |   | -                                           |   |   |   | - |   |   |   |   |   |
| Shares and Options issued for Stock Based Compensation                    |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| - Employees                                                               |   |                           | 5,185,743   |   |   |   | 4,259,903   |                    |   |   | 1,727,922                                   |   |   |   | 1,756,087 |   |   |   | 12,320,466 |   |
| - Consultants                                                             |   |                           | 147,588     |   |   |   | -           |                    |   |   | 247,163                                     |   |   |   | 251,192 |   |   |   | 778,584 |   |
| - Exploration agreement                                                   |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 518,000 |   |
| - Registration payment arrangements                                       |   |                           | 900,494     |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 1,265,299 |   |
| Provision for reclamation and remediation                                 |   |                           | 116,192     |   |   |   | 91,722      |                    |   |   | 628,213                                     |   |   |   | 638,453 |   |   |   | 926,127 |   |
| Gain on sale of property and equipment                                    |   |                           | -           |   |   |   | (16,761     | )                       |   |   | -                                           |   |   |   | - |   |   |   | (16,761 | ) |
| Writedown/writeoff of assets                                              |   |                           | -           |   |   |   | -           |                    |   |   | 244,924                                     |   |   |   | 248,916 |   |   |   | 244,924 |   |
| Depreciation and amortisation                                             |   |                           | 529,469     |   |   |   | 847,006     |                    |   |   | 2,945,887                                   |   |   |   | 2,993,905 |   |   |   | 4,343,332 |   |
| Adjustment to fair value on stepped acquisition                           |   |                           | -           |   |   |   | (2,200,620  | )                       |   |   | -                                           |   |   |   | - |   |   |   | (2,200,620 | ) |
| Equity accounting loss                                                    |   |                           | -           |   |   |   | 345,707     |                    |   |   | 1,440,407                                   |   |   |   | 1,463,886 |   |   |   | 1,786,114 |   |
| Interest receivable                                                       |   |                           | (49,931     | )      |   |   | (81,503     | )                       |   |   | (138,841                                    | )      |   |   | (141,104 | ) |   |   | (270,275 | ) |
| Accrued interest added to principal                                       |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 37,282 |   |
| Net Change in:                                                            |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Receivables                                                               |   |                           | (2,891,735  | )      |   |   | 881,056     |                    |   |   | 1,124,863                                   |   |   |   | 1,143,198 |   |   |   | 168,878 |   |
| Prepayments and deposits                                                  |   |                           | (964,563    | )      |   |   | (1,130,078  | )                       |   |   | (99,588                                     | )      |   |   | (101,211 | ) |   |   | (4,047,668 | ) |
| Inventories                                                               |   |                           | (92,194     | )      |   |   | (162,350    | )                       |   |   | 144,567                                     |   |   |   | 146,923 |   |   |   | (109,977 | ) |
| Accounts payable and accrued expenses                                     |   |                           | 1,441,270   |   |   |   | 1,608,312   |                    |   |   | (2,252,843                                  | )      |   |   | (2,289,564 | ) |   |   | 1,606,722 |   |
| Net Cash (Used) In Operating Activities                                   |   |                           | (15,359,851 | )      |   |   | (30,508,919 | )                       |   |   | (33,512,141                                 | )      |   |   | (34,058,388 | ) |   |   | (90,642,696 | ) |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                     |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Proceeds from sale of trading securities                                  |   |                           | -           |   |   |   | 1,272,343   |                    |   |   | -                                           |   |   |   | - |   |   |   | 1,272,343 |   |
| Investment in trading securities                                          |   |                           | (710,072    | )      |   |   | (377,658    | )                       |   |   | (196,772                                    | )      |   |   | (199,979 | ) |   |   | (574,430 | ) |
| Investment in equity accounted investments                                |   |                           | -           |   |   |   | (13,082,295 | )                       |   |   | (6,194,022                                  | )      |   |   | (6,294,985 | ) |   |   | (19,986,389 | ) |
| Acquisition of subsidiary                                                 |   |                           | (326,526    | )      |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | (326,526 | ) |
| Investment in consolidated entity                                         |   |                           | -           |   |   |   | (9,198,412  | )                       |   |   | (4,032,694                                  | )      |   |   | (4,098,427 | ) |   |   | (13,231,106 | ) |
| Purchase of property and equipment                                        |   |                           | (4,640,717  | )      |   |   | (3,356,338  | )                       |   |   | (6,426,532                                  | )      |   |   | (6,531,284 | ) |   |   | (14,578,152 | ) |
| Proceeds from sale of property and equipment                              |   |                           | -           |   |   |   | 110,100     |                    |   |   | -                                           |   |   |   | - |   |   |   | 110,100 |   |
| Net Cash (Used) In Investing Activities                                   |   |                           | (5,677,315  | )      |   |   | (24,632,260 | )                       |   |   | (16,850,020                                 | )      |   |   | (17,124,675 | ) |   |   | (47,314,160 | ) |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                     |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Advances payable - affiliates                                             |   |                           | -           |   |   |   | -           |                    |   |   | (2,936,845                                  | )      |   |   | (2,984,715 | ) |   |   | (2,912,998 | ) |
| Repayment of convertible debenture                                        |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | (130,310 | ) |
| Repayment of shareholder advance                                          |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | (641 | ) |
| Repayment under finance leases                                            |   |                           | -           |   |   |   | (353,944    | )                       |   |   | (402,801                                    | )      |   |   | (409,367 | ) |   |   | (756,745 | ) |
| Proceeds from convertible debenture payable                               |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 130,310 |   |
| Proceeds from capital/finance loans                                       |   |                           | -           |   |   |   | -           |                    |   |   | 2,938,792                                   |   |   |   | 2,986,694 |   |   |   | 2,938,792 |   |
| Shareholder advance                                                       |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 6,621 |   |
| Proceeds from issuance of stock                                           |   |                           | 123,751,878 |   |   |   | 2,763       |                    |   |   | -                                           |   |   |   | - |   |   |   | 153,391,479 |   |
| Proceeds from issuance of stock by controlled entity                      |   |                           | -           |   |   |   | 13,542,008  |                    |   |   | 2,607,283                                   |   |   |   | 2,649,782 |   |   |   | 16,149,291 |   |
| Cost of share issues                                                      |   |                           | (5,964,347  | )      |   |   | -           |                    |   |   | (142,407                                    | )      |   |   | (144,728 | ) |   |   | (7,268,879 | ) |
| Net Cash Provided by Financing Activities                                 |   |                           | 117,787,531 |   |   |   | 13,190,827  |                    |   |   | 2,064,022                                   |   |   |   | 2,097,666 |   |   |   | 161,546,920 |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes on cash                                   |   |                           | 5,438,981   |   |   |   | (4,661,096  | )                       |   |   | 797,961                                     |   |   |   | 810,968 |   |   |   | 1,575,846 |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash                                           |   |                           | 102,189,346 |   |   |   | (46,611,448 | )                       |   |   | (47,500,178                                 | )      |   |   | (48,274,429 | ) |   |   | 25,165,910 |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Cash at beginning of period                                               |   |                           | 17,088,190  |   |   |   | 119,277,536 |                    |   |   | 72,666,088                                  |   |   |   | 73,850,595 |   |   |   | - |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Cash at end of period                                                     |   |                           | 119,277,536 |   |   |   | 72,666,088  |                    |   |   | 25,165,910                                  |   |   |   | 25,576,114 |   |   |   | 25,165,910 |   |
|                                                                      |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Supplemental Disclosures:                                                 |   |                           |        |   |   |   |        |                    |   |   |                                        |   |   |   |   |   |   |   |   |   |
| Cash paid for interest                                                    |   |                           | 32,715      |   |   |   | 63,600      |                    |   |   | 47,852                                      |   |   |   | 47,086 |   |   |   | 205,963 |   |
| Cash paid for income taxes                                                |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | - |   |
| Stock  and options issued for services                          |   |                           | 147,588     |   |   |   | -           |                    |   |   | 247,163                                     |   |   |   | 243,199 |   |   |   | 1,842,686 |   |
| Accrued interest and stockholder advances charged to paid in capital      |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 12,744 |   |
| Stock issued for exploration agreement                                    |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 518,000 |   |
| Stock issued for registration payment arrangement                         |   |                           | 900,494     |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 1,265,299 |   |
| Equipment obtained through a capital lease                                |   |                           | 705,841     |   |   |   | -           |                    |   |   | 472,357                                     |   |   |   | 464,781 |   |   |   | 1,202,779 |   |
| Capital lease obligation for exploration costs                            |   |                           | -           |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 4,188,792 |   |
| Interest in relation to capital lease for exploration costs               |   |                           | -           |   |   |   | -           |                    |   |   |                                        |   |   |   |   |   |   |   | 42,313 |   |
| Fair value of warrants in connection with issuance of capital stock       |   |                           | 1,330,852   |   |   |   | -           |                    |   |   | -                                           |   |   |   | - |   |   |   | 1,330,852 |   |

----

----

| ●   | in early December 2009, NADL issued shares, which diluted the Company’s interest to 47.83% and the Company consolidated NADL at that rate for December 2009. During 2010, the Company acquired additional shares in NADL increasing its holding to 50.40%; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | during 2010, the Company took additional private placements in Northern Capital Resources Corp (“NCRC”), increasing its holding to a 31.46% interest, and continued to account for NCRC as an unconsolidated entity. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | RECENT ACCOUNTING PRONOUNCEMENTS |
|----------------|----------------------------------|

----

| 3.   | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----------------|--------------------------------------------|

----

|                     |   |                      |   |   | At December 31, 2010 |      |       | At December 31, 2009       |   |
|--------------------------|--------|---------------------------|--------|--------|----------------------|-----------|------------|----------------------------|--------|
|                     |   | DepreciableLife(in years) |   |   | CostA$               |      |       | Accumulated DepreciationA$ |   |   | Net Book ValueA$ |   |   | CostA$ |   |   | Accumulated DepreciationA$ |   |   | Net Book ValueA$ |   |
| Land                     |   |                      |   |   |                 | 1,101,358 |       |                       |   | - |   |   |   | 1,101,358 |   |   |   | 1,101,358 |   |   |   | - |   |   |   | 1,101,358 |   |
| Buildings                |   |                      | 40     |   |                 |      | 2,978,403  |                       |   |   | (118,876 | ) |   |   | 2,859,527 |   |   |   | 2,968,213 |   |   |   | (43,235 | ) |   |   | 2,924,978 |   |
| Leasehold Improvements   |   |                      | 1-2    |   |                 |      | 324,591    |                       |   |   | (80,925 | ) |   |   | 243,666 |   |   |   | 235,831 |   |   |   | (35,790 | ) |   |   | 200,041 |   |
| Motor Vehicles           |   |                      | 5      |   |                 |      | 1,476,056  |                       |   |   | (491,717 | ) |   |   | 984,339 |   |   |   | 1,001,863 |   |   |   | (234,199 | ) |   |   | 767,664 |   |
| Equipment                |   |                      | 1-10   |   |                 |      | 3,229,250  |                       |   |   | (689,682 | ) |   |   | 2,539,568 |   |   |   | 2,135,498 |   |   |   | (282,626 | ) |   |   | 1,852,872 |   |
| Aircraft                 |   |                      | 5      |   |                 |      | 4,671,142  |                       |   |   | (606,518 | ) |   |   | 4,064,624 |   |   |   | 1,270,869 |   |   |   | (352,345 | ) |   |   | 918,524 |   |
| Construction in Progress |   |                      |   |   |                 |      | 2,038,935  |                       |   |   | - |   |   |   | 2,038,935 |   |   |   | 708,217 |   |   |   | - |   |   |   | 708,217 |   |
|                     |   |                      |   |   |                 |      | 15,819,735 |                       |   |   | (1,987,718 | ) |   |   | 13,832,017 |   |   |   | 9,421,849 |   |   |   | (948,195 | ) |   |   | 8,473,654 |   |

----

----

| 4.   | CONCENTRATIONS OF RISKS |
|----------------|-------------------------|

----

| 5.   | DEPOSITS |
|----------------|----------|

|                                                                                                                                           |   | December 31 |      |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-----------|
|                                                                                                                                           |   |        | $2010A    |   |   |   | $2009A |   |
|                                                                                                                                           |   |        |      |   |   |   |   |   |
| Term Deposit as security for a Banker’s Undertaking                                                                                      |   |        | 257,750   |   |   |   | 2,130,988 |   |
| Other                                                                                                                                          |   |        | 229,754   |   |   |   | 1,604 |   |
| Cash deposits provided to Government Departments for the purpose of guaranteeing the Company’s performance in accordance with mining law |   |        | 688,964   |   |   |   | 526,902 |   |
|                                                                                                                                           |   |        | 1,176,468 |   |   |   | 2,659,494 |   |

| 6.   | INVESTMENTS/SUBSIDIARIES |
|----------------|--------------------------|

----

| ●     | Legend International Holdings Limited |
|----------------------------|---------------------------------------|

| ●     | Legend Diamonds Pty Ltd. |
|----------------------------|--------------------------|

|                             |   | December 2009A$ |       |   | December 2010A$ |   |
|----------------------------------|--------|-----------------|------------|--------|-----------------|--------|
|                             |   |            |       |   |            |   |
| Current assets                   |   |            | 988,354    |   |            |   | 918,991 |   |
| Non- current assets              |   |            | 55,811,214 |   |            |   | 49,854,896 |   |
| Total assets                     |   |            | 56,799,568 |   |            |   | 50,773,887 |   |
| Current liabilities              |   |            | 5,991,806  |   |            |   | 4,599,192 |   |
| Non-current liabilities          |   |            | 5,362,559  |   |            |   | 6,264,878 |   |
| Total liabilities                |   |            | 11,354,365 |   |            |   | 10,864,070 |   |
| Total shareholders’ equity |   |            | 45,445,203 |   |            |   | 39,909,817 |   |
| Net profit/(loss)                |   |            | 14,796,200 |   |            |   | (4,677,824 | ) |

----

|                             |   | December 2009A$ |      |   | December 2010A$ |   |
|----------------------------------|--------|----------------------|-----------|--------|-----------------|--------|
|                             |   |                 |      |   |            |   |
| Current assets                   |   |                 | 5,422,226 |   |            |   | 4,727,929 |   |
| Non-current assets               |   |                 | 15,228    |   |            |   | 11,822 |   |
| Total assets                     |   |                 | 5,437,454 |   |            |   | 4,739,751 |   |
| Current liabilities              |   |                 | 94,945    |   |            |   | 128,441 |   |
| Total liabilities                |   |                 | 94,945    |   |            |   | 128,441 |   |
| Total shareholders’ equity |   |                 | 5,342,509 |   |            |   | 4,611,310 |   |
| Net (loss)                       |   |                 | (772,817  | )      |            |   | (731,199 | ) |

| 7.   | STOCKHOLDERS EQUITY |
|----------------|---------------------|

| a.   | 5,000,000 options, at an exercise price of US$2.50 per share and expiring 60 days from July 11, 2008; |
|----------------|-------------------------------------------------------------------------------------------------------|

| b.   | 8,000,000 options, at an exercise price of US$3.00 per share and expiring 12 months from July 11, 2008; |
|----------------|---------------------------------------------------------------------------------------------------------|

| c.   | 8,000,000 options, at an exercise price of US$3.50 per share and expiring 18 months from July 11, 2008; |
|----------------|---------------------------------------------------------------------------------------------------------|

| d.   | 9,000,000 options, at an exercise price of US$4.00 per share and expiring 24 months from July 11, 2008. |
|----------------|---------------------------------------------------------------------------------------------------------|

----

|                        |   | For the year ended December 31, 2010 |            |   | For the year ended December 31, 2009 |   |
|-----------------------------|--------|--------------------------------------|-----------------|--------|--------------------------------------|--------|
| Weighted Average Volatility |   |                                 | 70              | %      |                                 |   | 70 | % |
| Dividend Yield              |   |                                 | -               |   |                                 |   | - |   |
| Expected term (years)       |   |                                 | 5.5 – 6.5 |   |                                 |   | 5.5 – 6.5 |   |
| Risk-free rate              |   |                                 | 1.91            | %      |                                 |   | 2.48% - 3.54 | % |

----

| Options                                  |   | Shares |       |   | Weighted-AverageExercise Price |   |
|------------------------------------------|--------|--------|------------|--------|--------------------------------|--------|
| Balance, December 31, 2006               |   |   | 8,100,000  |   |                           |   | $0.83 |   |
| Granted                                  |   |   | 6,250,000  |   |                           |   | $0.93 |   |
| Exercised                                |   |   | -          |   |                           |   | - |   |
| Forfeited and expired                    |   |   | (1,762,500 | )      |                           |   | $0.72 |   |
| Balance, December 31, 2007               |   |   | 12,587,500 |   |                           |   | $0.79 |   |
| Granted                                  |   |   | 11,000,000 |   |                           |   | $1.79 |   |
| Exercised                                |   |   | -          |   |                           |   | - |   |
| Forfeited and expired                    |   |   | (1,125,000 | )      |                           |   | $0.98 |   |
| Balance, December 31, 2008               |   |   | 22,462,500 |   |                           |   | $1.19 |   |
| Granted                                  |   |   | 1,900,000  |   |                           |   | $1.00 |   |
| Exercised                                |   |   | -          |   |                           |   | - |   |
| Forfeited and expired                    |   |   | (675,000   | )      |                           |   | $1.00 |   |
| Balance, December 31, 2009               |   |   | 23,687,500 |   |                           |   | $1.30 |   |
| Granted                                  |   |   | 500,000    |   |                           |   | $1.00 |   |
| Exercised                                |   |   | (333,334   | )      |                           |   | $0.83 |   |
| Forfeited and expired                    |   |   | (979,166   | )      |                           |   | $0.97 |   |
| Balance, December 31, 2010               |   |   | 22,875,000 |   |                           |   | $1.32 |   |
| Options exercisable at December 31, 2010 |   |   | 18,437,500 |   |                           |   | $1.25 |   |

|               | Options Outstanding |                                                  | Options Exercisable            |
|--------------------|---------------------|-------------------------------------------------------|--------------------------------|
| Exercise PricesUS$ | Number Outstanding  | Weighted Average Remaining Contractual Life(In Years) | Weighted-AverageExercise Price |   | Number Exercisable | Weighted Average Remaining Contractual Life(In Years) | Weighted-AverageExercise Price |
| $0.444             | 1,856,250           | 5.86                                                  |                           |   | 1,856,250 | 5.86 |   |
| $1.000             | 14,118,750          | 6.93                                                  |                           |   | 11,981,250 | 6.70 |   |
| $2.000             | 5,900,000           | 7.18                                                  |                           |   | 3,933,333 | 8.18 |   |
| $3.480             | 1,000,000           | 7.53                                                  |                           |   | 666,667 | 7.53 |   |
|               | 22,875,000          | 6.93                                                  | $1.32                          |   | 18,437,500 | 6.75 | $1.25 |

----

----

| 8.   | RECLAMATION AND REHABILITATION |
|----------------|--------------------------------|

|                                                                                     | December 31, 2010A$ | December 31, 2009A$ |
|------------------------------------------------------------------------------------------|---------------------|---------------------|
| Balance January 1                                                                        | 935,558             | 206,192             |
| Increase as a result of rehabilitation requirement on exploration undertaken during year | 67,492              | 730,332             |
| Increase as a result of acquisition of subsidiary during the year                        | -                   | 291,902             |
| Decrease as a result of rehabilitation performed during the year                         | (76,923)            | (292,868)           |
| Closing balance December 31                                                              | 926,127             | 935,558             |

| 9.   | LEASE LIABILITY |
|----------------|-----------------|

|                                                                                                                                                                                                                                                                                                                                   | A$            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
| The Company entered into capital finance lease agreements for motor vehicles. The leases are non-cancellable and require total monthly repayments of A$41,958 (2009: A$19,962) and expire at various dates from 2011 to 2013. Future minimum payments due for the remaining term of the leases as of December 31, 2010 are as follows: |          |
|                                                                                                                                                                                                                                                                                                                                   |          |
| 2011                                                                                                                                                                                                                                                                                                                                   | 503,493       |
| 2012                                                                                                                                                                                                                                                                                                                                   | 207,705       |
| 2013                                                                                                                                                                                                                                                                                                                                   | 63,566        |
|                                                                                                                                                                                                                                                                                                                                   | 774,764       |
| Less amounts representing interest                                                                                                                                                                                                                                                                                                     | 65,614        |
|                                                                                                                                                                                                                                                                                                                                   | 709,150       |
|                                                                                                                                                                                                                                                                                                                                   |          |
| Current liability                                                                                                                                                                                                                                                                                                                      | 455,012       |
| Non-current liability                                                                                                                                                                                                                                                                                                                  | 254,138       |
|                                                                                                                                                                                                                                                                                                                                   | 709,150       |
| At December 31, 2010, the net book value of the motor vehicles under capital leases amounts to:                                                                                                                                                                                                                                        |  814,327 |

| 10.   | MARKETABLE SECURITIES/OTHER INVESTMENTS |
|-----------------|-----------------------------------------|

----

|                                                    | Fair ValueHierarchy | Fair Value at December 31, 2010 | Fair Value at December 31, 2009 |
|---------------------------------------------------------|---------------------|---------------------------------|---------------------------------|
| Current AssetMarketable Securities - Trading Securities |  Level 1       |  $263,741                  |  -                         |

| 11.   | AFFILIATE TRANSACTIONS |
|-----------------|------------------------|

----

| 12.   | GOODWILL |
|-----------------|----------|

| 13.   | MINERAL RIGHTS |
|-----------------|----------------|

| 14.   | LONG-TERM DEBT |
|-----------------|----------------|

----

| Year   | A$000s | US$000s |
|--------|--------|---------|
|   |   |    |
| 2011   | 224    | 228     |
| 2012   | 239    | 243     |
| 2013   | 256    | 260     |
| 2014   | 274    | 278     |
| 2015   | 1,842  | 1,872   |
|   |   |    |
| Total  | $2,835 | $2,881  |

| 15.   | INCOME TAXES |
|-----------------|--------------|

|                             |   | USA2010A$ |        |   | Australia2010A$ |   |        | Total2010A$ |   |
|----------------------------------|--------|-----------|-------------|--------|-----------------|--------|-------------|-------------|--------|
| Deferred tax assets              |   |      |        |   |            |   |        |        |   |
|                             |   |      |        |   |            |   |        |        |   |
| Net operating loss carry-forward |   |      | 10,361,505  |   |            |   | 20,046,943  |        |   |   | 30,408,448 |   |
| Exploration expenditure          |   |      | 18,134,167  |   |            |   | -           |        |   |   | 18,134,167 |   |
| Less valuation allowance         |   |      | (28,495,672 | )      |            |   | (20,046,943 | )           |   |   | (48,542,615 | ) |
| Net deferred taxes               |   |      | -           |   |            |   | -           |        |   |   | - |   |

----

|                             |   | USA2009A$ |        |   | Australia2009A$ |   |        | Total2009A$ |   |
|----------------------------------|--------|-----------|-------------|--------|-----------------|--------|-------------|-------------|--------|
| Deferred tax assets              |   |      |        |   |            |   |        |        |   |
|                             |   |      |        |   |            |   |        |        |   |
| Net operating loss carry-forward |   |      | 7,082,673   |   |            |   | 12,426,769  |        |   |   | 19,509,442 |   |
| Exploration expenditure          |   |      | 11,914,882  |   |            |   | -           |        |   |   | 11,914,882 |   |
| Less valuation allowance         |   |      | (18,997,555 | )      |            |   | (12,426,769 | )           |   |   | (31,424,324 | ) |
| Net deferred taxes               |   |      | -           |   |            |   | -           |        |   |   | - |   |

| 16.   | COMMITMENTS AND CONTINGENCIES |
|-----------------|-------------------------------|

|                                                                                                     | A$      |
|----------------------------------------------------------------------------------------------------------|---------|
| Future minimum lease payments under the Company’s non-cancellable operating leases are as follows: |    |
|                                                                                                     |    |
| 2011                                                                                                     | 276,899 |
| 2012                                                                                                     | 231,790 |
| 2013                                                                                                     | 38,292  |

----

|                                                      |   |   | $2010A    |   |   |   | $2009A     |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|
| Not later than one year                                   |   |   | 1,882,928 |   |   |   | 6,724,027  |   |
| Later than one year but not later than five years         |   |   | 4,273,869 |   |   |   | 6,423,559  |   |
| Later than five years but not later than twenty one years |   |   | 1,601,903 |   |   |   | 1,864,163  |   |
|                                                      |   |   | 7,758,700 |   |   |   | 15,011,749 |   |

| 17.   | SUBSEQUENT EVENTS |
|-----------------|-------------------|

----

| ALUMINUM FLUORIDE | AlF3 an inorganic compound produced by reacting Aluminium Hydroxide Al(OH)3 with Fluorosilicic Acid H2SiF6. It is an important additive for the production of aluminium by electrolysis.                                                                                                                                                            |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                                                                                                                                                                                                                                |
| APATITE           | aA pale green to purple mineral, found in sedimentary rocks, igneous rocks and metamorphosed limestones. It is used in the manufacture of phosphorus, phosphates, and fertilizers. Composition: calcium fluorophosphate or calcium chlorophosphate. General formula: Ca5(PO4,CO3)3(F,OH,Cl). Crystal structure: hexagonal                           |
|              |                                                                                                                                                                                                                                                                                                                                                |
| ASSAY             | To analyze the proportions of metals in a specimen of rock or other geological material. Results of a test of the proportions of metals in a specimen of rock or other geological material.                                                                                                                                                         |
|              |                                                                                                                                                                                                                                                                                                                                                |
| ASSAYING          | Qualitative or quantitative analysis of a metal or ore to determine its chemical components.                                                                                                                                                                                                                                                        |
|              |                                                                                                                                                                                                                                                                                                                                                |
| BACKGROUND        | As pertains to geochemical data; the variation in natural abundance of a particular metal or other constituent within a specific geological setting.                                                                                                                                                                                                |
|              |                                                                                                                                                                                                                                                                                                                                                |
| BENEFICIATION     | Any process that, from an ore feedstock, liberates valuable minerals, in this case phosphates, from most other waste materials.                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                |
| BPL               | the traditional measure known as the Bone Phosphate of Lime, by weight percentage, of calcium phosphate contained in phosphate rock which converts to % P2O5 by dividing by 2.185.                                                                                                                                                                  |
|              |                                                                                                                                                                                                                                                                                                                                                |
| BULK DENSITY      | is aA property of powders, granules and other "divided" solids, especially used in reference to mineral components. It is defined as the mass of many particles of the material divided by the total volume they occupy. The total volume includes particle volume, inter-particle void volume and internal pore volume.                            |
|              |                                                                                                                                                                                                                                                                                                                                                |
| CAMBRIAN          | The Cambrian is the first geological period of the Paleozoic Era, lasting from 542 ± 0.3 million years ago to 488.3 ± 1.7 million years ago.                                                                                                                                                                          |
|              |                                                                                                                                                                                                                                                                                                                                                |
| CaO               | Chemical Symbol for Calcium Oxide                                                                                                                                                                                                                                                                                                                   |
|              |                                                                                                                                                                                                                                                                                                                                                |
| COLLAR            | The start or beginning of a drill hole or the mouth of an underground working entrance.                                                                                                                                                                                                                                                             |
|              |                                                                                                                                                                                                                                                                                                                                                |
| CONE SPLITTER     | Sample splitting device attached to the bottom of the cyclone on a RC (reverse circulation) drill rig. Cuttings are gravity fed over a stainless steel cone and multiple outlets capture the divided sample. This splitting method is considered “best practice” within the industry as it eliminates a grainsize bias between samples. |
|              |                                                                                                                                                                                                                                                                                                                                                |
| CONFIDENCE LEVEL  | statistical likelihood (probability) that a random variable lies within the confidence interval of an estimate.                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                |
| CRATON            | The relatively stable nucleus of a continent.  Cratons are made up of a shield-like core of Precambrian Rock and a buried extension of the shield.                                                                                                                                                                                        |

----

|                |                                                                                                                                                                                                                                                       |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| DAP/MAP             | Diammonium Phosphate (DAP) and Monoammonium Phosphate (MAP) are phosphate salts produced by reacting phosphoric acid with ammonia. They are both used as fertiliser.                                                                                       |
|                |                                                                                                                                                                                                                                                       |
| DEVONIAN            | The fourth geological period of the Paleozoic Era, spanning 408 to 360 million years ago.                                                                                                                                                                  |
|                |                                                                                                                                                                                                                                                       |
| DIAMOND DRILL       | A method of extracting core samples from the earth. A series of rods/ tubes with a diamond encrusted drill bit on the end are rotated under pressure to cut a drill hole into the earth. The internal core sample is then recovered for testing and study. |
|                |                                                                                                                                                                                                                                                       |
| DIRECT ACIDULATION  | reaction of phosphate rock or beneficiated phosphate concentrates with sulfuric acid to produce phosphoric acid feedstocks.                                                                                                                                |
|                |                                                                                                                                                                                                                                                       |
| DISSEMINATED        | Fine grain particles of minerals that occur within the rock                                                                                                                                                                                                |
|                |                                                                                                                                                                                                                                                       |
| FACIES              | A term applied to sedimentary units and the rocks that belong to them                                                                                                                                                                                      |
|                |                                                                                                                                                                                                                                                       |
| FAULT               | A fracture or fracture zone in rock along which there has been displacement of the two sides relative to each other and parallel to the fracture plane.                                                                                                    |
|                |                                                                                                                                                                                                                                                       |
| FE/Fe2O3            | Chemical symbol for iron.                                                                                                                                                                                                                                  |
|                |                                                                                                                                                                                                                                                       |
| FE2O3               | Iron Oxide                                                                                                                                                                                                                                                 |
|                |                                                                                                                                                                                                                                                       |
| FLOTATION           | The process of using chemicals to move fine grain particles in a solution, one process used in beneficiation                                                                                                                                               |
|                |                                                                                                                                                                                                                                                       |
| FOB                 | acronym meaning “free on board” used in conjunction with a port of reference. It is a shipping term outlining which party pays for transportation costs to port, as well as loading costs.                                                     |
|                |                                                                                                                                                                                                                                                       |
| FRACTURE            | A general term for any break in a rock, whether or not it causes displacement.                                                                                                                                                                             |
|                |                                                                                                                                                                                                                                                       |
| GOETHITE            | FeO(OH) is an iron hydroxide mineral often formed through the weathering of other iron compounds. As a result, it is usually unreactive to acid attack.                                                                                                    |
|                |                                                                                                                                                                                                                                                       |
| ICP ACID DIGEST     | Is a technique used for assaying phosphate rock. Commercial laboratories digest the sample in acid and then analyse it using a multi-element inductively coupled plasma atomic emission spectrometer (ICP-AES).                                            |
|                |                                                                                                                                                                                                                                                       |
| INTRACRATONIC BASIN | A depression in the Earths surface caused by subsidence, notable for its lack of significant surrounding highland areas and is usually subsequently filled with sediments..                                                                                |
|                |                                                                                                                                                                                                                                                       |
| KARST               | Topography formed by weathered limestone                                                                                                                                                                                                                   |
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| LATERITE            | Weathered material composed principally of the oxides of iron, aluminum, titanium, and manganese; laterite ranges from soft, earthy, porous soil to hard, dense rock.                                                                                      |
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| LITHOLOGY           | A set of characteristics particular to a rock formation.                                                                                                                                                                                                   |
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| MEAN                | The average value of a set of numbers.                                                                                                                                                                                                                     |
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| MESOZOIC            | The era of geologic time from about 245 to 65 million years ago.                                                                                                                                                                                           |
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| METALLURGICAL TEST  | A general term for a number of mechanical or chemical processes that are employed to test the amenability of separating metals from their ores.                                                                                                            |

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| METAMORPHOSED        | Rock or mineral that has undergone mineralogical and/or structural change in response to elevated pressures, temperatures or changes in chemical conditions.                                                                                                                                                                                                                                                                                            |
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| MICACEOUS            | Mica’s are a group of platy silicate minerals. A rock described as micaceous is either consisting of or pertaining to mica, or has characteristics resembling a mica, either in lustre or in having the property of being easily split into thin sheets.                                                                                                                                                                                          |
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| MICRONS              | a unit of measurement equal to the micrometer, or one-millionth of a meter (1x10-6m).                                                                                                                                                                                                                                                                                                                                                                   |
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| MICROSPHORITE        | Very fine grained phosphorite (phosphate rich rock)                                                                                                                                                                                                                                                                                                                                                                                                     |
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| MINERALIZATION       | The process or processes by which a mineral or minerals are introduced into a rock, resulting in an enriched deposit; or the result of these processes.                                                                                                                                                                                                                                                                                                 |
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| MINERALIZED          | Rock that has undergone the process of mineralization.                                                                                                                                                                                                                                                                                                                                                                                                  |
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| ORDOVICIAN           | The second period of the Paleozoic Era, from about 505 to 438 million years ago.                                                                                                                                                                                                                                                                                                                                                                        |
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| ORE                  | See RESERVE.                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| OUTLIER              | an outcrop of rocks that is entirely surrounded by older rocks.                                                                                                                                                                                                                                                                                                                                                                                         |
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| OVERTHRUSTING        | a reverse fault in which the rocks on the upper surface of a fault plane have moved over the rocks on the lower surface.                                                                                                                                                                                                                                                                                                                                |
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| P2O5                 | Chemical symbol for phosphorus pentoxide                                                                                                                                                                                                                                                                                                                                                                                                                |
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| P80                  | a measurement of grinding ability, where 80% of the ground ore will pass through mesh of a pre-determined screen. In this case, a P80 of 150 microns is required.                                                                                                                                                                                                                                                                                       |
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| PALAEOZOIC           | The era of geologic time from about 540 to 245 million years ago.                                                                                                                                                                                                                                                                                                                                                                                       |
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| PELLETAL PHOSPHORITE | These particulate rocks vary from pale grey-white to yellowish-brown, are highly porous, with a sandy texture and are friable. Pelletal phosphorites are almost completely comprised of collophane (carbonate fluorapatite) occurring as phosphatic fossil fragments and ovulitic peloids. Grainsize is typically around 0.2 - 1.0 mm with a loose cement of collophane mud.                                                                            |
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| PERMIAN              | The seventh and last period of the Paleozoic Era, from about 286 to 245 million years ago.                                                                                                                                                                                                                                                                                                                                                              |
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| PHOSPHORITE          | A sedimentary rock that contains at least 20 per cent of phosphate minerals.                                                                                                                                                                                                                                                                                                                                                                            |
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| PRECAMBRIAN          | A period of geologic time earlier than 544 million years before present.                                                                                                                                                                                                                                                                                                                                                                                |
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| PROBABLE RESERVES    | Probable (Indicated) Reserves refers to reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced.  The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. |
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| PROTEROZOIC          | The later of the two divisions of the Precambrian Eon, from about 2.5 billion to 540 million years ago.                                                                                                                                                                                                                                                                                                                                                 |

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| PROVEN RESERVES         | Proven (Measured) Reserves refers to reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings, drillholes; grade and/or quality are computed from the results of detailed sampling and (b) the sites of inspection, sampling and measurement are spaced so closely and geologic character is so well defined that size, shape, depth and mineral content of reserves are well-established.                                                             |
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| QA/QC                   | Quality Assurance and Quality Control – refers to the procedures and measures put in place and taken during the drilling and assaying process of the deposit that ensure only repeatable and high quality data is obtained.                                                                                                                                                                                                                                                                  |
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| QUARTZ                  | A glassy silicate and common rock forming mineral (SiO2).                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| RADIOMETRIC SURVEY      | Geophyisical survey looking at the emission of radiation from rocks at very low levels. Used as an exploration tool.                                                                                                                                                                                                                                                                                                                                                                               |
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| RC DRILLING             | Reverse Circulation (RC). Drilling technique used which has a double tube to pass the air down between the inner tube and outer tube, with the sample returned up the inner tube.                                                                                                                                                                                                                                                                                                                  |
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| REPLACEMENT             | Pertaining to a type of mineral deposit that forms by partial or complete replacement of bedrock constituents by new minerals, generally by the action of hydrothermal fluids.                                                                                                                                                                                                                                                                                                                     |
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| REPLACEMENT PHOSPHORITE | BH South geologists recognised a more indurated, porcellanous form of phosphorite which they termed ‘replacement’ phosphorite. Petrographic studies suggested this material originated from the replacement of limestone or dolomite in the sub-stratum by phosphate (Rogers and Keevers, 1976). Replacement phosphorite is white to tan in colour and consists of structureless collophane containing minor silt, chert and clay. Replacement phosphorite is typically of high-grade. |
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| RESERVE                 | That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.                                                                                                                                                                                                                                                                                                                                                             |
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| RESOURCE                | Pertaining to the quantity or bulk of mineralized material without reference to the economic viability of its extraction (see reserve).                                                                                                                                                                                                                                                                                                                                                            |
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| REVERSE CIRCULATION     | The method of drilling that was used to obtain the majority of data that has been used in this resource estimation process. Pressurised air is forced down the outside of a string of drill rods that contain an inner-tube. The air drives a hammer and drill bit that breaks and pulverises the rock, once broken down the reverse air pressure forces the resulting material back up the inner-tube to be sampled at the top of the hole.                                                       |
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| SAMPLE VARIANCE         | A measurement of how spread out a set of numbers/results are from each other.                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| SEDIMENT                | Fragmental material that originates from weathering of rocks and that is transported by air, water, ice or other natural agents, and that forms in layers on the Earth's surface at ordinary temperatures in a loose, unconsolidated form; e.g. silt, sand, gravel, etc.                                                                                                                                                                                                                           |
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| SELECTED SAMPLE         | A specimen of a mineralized zone that is not intended to be representative of the deposit as a whole.                                                                                                                                                                                                                                                                                                                                                                                              |
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| SHAPIRO TEST            | A chemical visual colorimetric test developed in the 1960’s that was used in the field by LIH geologists to allow a quantitive estimate of phosphate content of material at the time of sampling.                                                                                                                                                                                                                                                                                            |

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| SILCRETE           | A hard surface deposit composed of sand and gravel cemented by chert and quartz, it is formed by chemical weathering and water evaporation in semi-arid environments.                                                                                                                    |
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| SILICA/SiO2        | A generic term for silicon dioxide (SiO2), the most common form of which is quartz.                                                                                                                                                                                                      |
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| SILURIAN           | The third period of the Paleozoic Era, from about 438 to 408 million years ago.                                                                                                                                                                                                          |
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| SPLIT              | A portion of a rock or soil sample that is separated from the bulk of the original before the analytical process so as to provide material for re-analysis as a check of the accuracy of the original procedure should it be required.                                                   |
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| STANDARD DEVIATION | A statistic used as a measure of the dispersion or variation in a distribution, equal to the square root of the arithmetic mean of the squares of the deviations from the arithmetic mean.                                                                                               |
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| STANDARD ERROR     | The standard deviations of the sample in a frequency distribution, obtained by dividing the standard deviation by the total number of cases in the frequency distribution.                                                                                                               |
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| STRATA             | Beds or layers of rock.                                                                                                                                                                                                                                                                  |
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| STRATIGRAPHY       | that aspect of the geology of an area that pertains to the character of its stratified rock.                                                                                                                                                                                             |
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| STRIKE             | The course or bearing of the outcrop of an inclined bed, vein or fault plane on a level surface; the direction of a horizontal line perpendicular to the dip.                                                                                                                            |
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| TENEMENT           | An area of land leased by a mining company from the government upon which they carry out exploration activities.                                                                                                                                                                         |
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| TERMS OF REFERENCE | Terms of reference describe the purpose and structure of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal. The terms of reference of a project are often referred to as the project charter. |
| TERTIARY           | The first period of the Cenozoic Era, from about 65 to 2 million years ago.                                                                                                                                                                                                              |
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| VEIN               | An epigenetic mineral filling of a fault or other fracture in a host rock, in tabular or sheetlike form, often as a precipitate from a hydrothermal fluid.                                                                                                                               |
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| WEIGHTED AVERAGE   | Value calculated from a number of samples, each of which has been “weighted” by a factor of the individual sample width.                                                                                                                                                     |
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| WORKING            | A general term for any type of excavation carried out during the course of mining or mining exploration.                                                                                                                                                                                 |
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| XRF                | X-Ray Fluorescence Spectroscopy is a means of identifying elements in a compound by bombarding that compound with x-rays and measuring the unique elemental signature produced.                                                                                                          |
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