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1 About Legacy Iron Ore ( Legacy or the Company ) is a Western Australian based Exploration Company, focused on iron ore and gold exploration and discovery. Legacy s mission is to increase shareholder wealth through capital growth, created via the discovery, development and operation of profitable mining assets. The Company was listed on the Australian Securities Exchange on 8 July Since then, Legacy has had a number of iron ore, manganese and gold discoveries which are now undergoing drilling and resource definition. Board Narendra Kumar Nanda, Non-Executive Chairman Sharon Heng, Executive Director & Managing Director Swaminathan Thiagarajan, Non- Executive Director Subimal Bose, Non-Executive Director Timothy Turner, Non-Executive Director Ben Donovan, Company Secretary Key Projects Mt Bevan Iron Ore Project Hamersley Iron Ore Project Robertson Range Iron Ore and Manganese Project South Laverton Gold Project East Kimberley Gold, Base Metals and REE Project Enquiries Sharon Heng Managing Director Phone: ASX Market Announcements ASX Limited Via E Lodgement ACQUISITION OF SIX QUEENSLAND COAL PROJECTS Highlights of announcement Six highly prospective tenements for quality Coking and Thermal Coal in established Surat, Maryborough and Mulgildie Coal Basins in Regards Queensland Opening foray into coal and an initial part of a continuing acquisition strategy The coal projects augment Legacy s existing focus on steel making materials, including iron ore and manganese Opportunity to add considerable value to these projects by defining JORC resources Close to existing and planned infrastructure Staged acquisition payments are based on defining an inferred JORC resource of at least 100 Mt of thermal coal with significant calorific value ASX Codes: LCY, LCYOA, LCYOB LEVEL 5, CITIBANK HOUSE 37 ST GEORGES TERRACE PERTH WA 6000 PO BOX 5768 ST GEORGES TERRACE WA 6831 Phone: Fax: info@legacyiron.com.au Web: Tenements cover approximately 3,200 km 2 with coal intersections outlined during historical drilling Legacy s new drilling program will target the rapid development of JORC resources Future Legacy acquisitions will focus on advanced and larger scale projects and operations.

2 (ASX: LCY) (Legacy) has entered into a binding term sheet with three vendors to acquire six highly prospective coal tenements located in key Queensland coal basins. The coal projects are the first corporate transaction to be undertaken by Legacy since India s largest iron ore producer and rapidly developing steel maker, NMDC Ltd, acquired a 50% shareholding in the company in December This shareholding also facilitated access to significant funding sources to enable Legacy to undertake this initial acquisition and to pursue additional diversification opportunities in the Australian mining sector. The coal tenements being acquired by Legacy are located in the productive Surat, Mulgildie and Maryborough coal basins and are close to major roads and the rail network. Substantial coal investments have been made nearby by BHP, Xstrata and, more recently, a number of major Indian corporations. A total of A$6.00 million will be paid to Subiaco Capital Pty Ltd, Velarium Holdings Pty Ltd and Sara Bella Energy Pty Ltd via staged payments comprising a refundable deposit, initial cash payment and a deferred cash payment upon the delineation of an inferred JORC standard resource of no less than 100Mt of thermal coal with a Calorific Value greater than 5,000 Kcal/kg calorific value. Two of the tenements EPCA 2303 and 2304, near the townships of Mundubbera and Eidsvold, have in situ Exploration Target ranges of 130Mt 580 Mt of thermal coal as well as having perceived semi soft coking coal potential. 3 The tenements also have excellent infrastructure with a railway line to the port of Gladstone being only 21 km east of the project area. The other tenements are EPCA 2580 in the Surat Basin and EPCA 2556, 2566 and 2941 in the Maryborough Basin. Managing Director Sharon Heng said that acquiring coal interests in Queensland s rapidly developing coal basins represents a major strategic step forward in the diversification of Legacy into a multi commodity company with a focus on steel making products. The tenements provide excellent targets for exploration and the delineation of large scale coking and thermal coal deposits which are surrounded by several operating mines and well established infrastructure that will support development and exports. This initial project acquisition is the opening foray into coal by Legacy and is only part of a continuing period of investigation of various opportunities within the Australian mining industry. Looking forward, Legacy s ability to access significant funding sources means that the Company s future acquisitions are likely to involve larger scale developed or producing assets. Commenting on the development, Mr NK Nanda, Chairman, Legacy and CMD In charge, NMDC Limited said the proposed acquisition of these prospective coal tenements in Queensland is in accordance with the re aligned strategy of Legacy to broaden its product portfolio post NMDC s acquisition of a 50% shareholding in Legacy. Whilst these tenements will provide the initial entry into Queensland coal, Legacy is continuing current negotiations for additional investment in potential coking coal assets in Australia. The details of the vendors, tenements, resources, terms and payments are outlined below. Yours faithfully LEGACY IRON ORE LIMITED Sharon Heng Managing Director

3 KEY DETAILS OF ACQUISITION EPCA 2303 and EPCA 2304 Subiaco Capital Pty Ltd Consisting of approximately 930 km 2 each, tenements EPCA2303 and EPCA2304 are located in Queensland, Australia, near the townships of Mundubbera and Eidsvold, and situated 133 km southwest from Bundaberg. The main coal bearing sequences within the Surat Basin at this location are the Evergreen Formation and similarly the Mulgildie Coal Measures of the Mulgildie Basin (Northern extension of the Surat Basin). Although no defined drilling has been conducted for coal, historical drilling for base metals and gold has intersected coal seams within the Evergreen Formation and within the area covered by EPCA s 2303 and 2304 as ranging from 0.3 to 3.0m in thickness. The thickest of which was a 3m seam, 29m down, with other intersected coal including a 1m thick seam less than 130m deep, as well as a 0.12m coal seam at 32m. In a report prepared for Subiaco Capital Pty Ltd, Moultrie Group concluded that based on the historical data collected, EPCA 2303 and EPCA 2304 was likely to have an exploration target ranging between 130 Mt 580 Mt with a raw ash ranging from 12 to 26% (adb) and a Gross Calorific Value between 5500 to 6,500 kcal/kg (adb). Few washed composites are known from the literature, but available geophysical logs identify the coals as relatively clean with few partings. Tenement Formation Area (Km 2 ) Average Cum. Thickness (m) Gross Tonnage Mt 1 Unexpected Geol. Loss % 2 Exploration Target 3 Mt EPCA2303 Evergreen EPCA2304 Evergreen The Evergreen Formation has been given an average density of 1.5 g/cc; total in situ tonnes with no constraints. A detailed assessment of vitrinite reflectance data from the QPED database suggests that coal seams from the Evergreen Formation may hold some coking properties. 2 Unexpected geological loss mainly due to seam splitting and thinning over large distances between boreholes. 3 It should be noted that the tonnages and grades quoted above are conceptual in nature and there has been insufficient exploration to define a coal resource. No coal quality data within the project area was uncovered in previous reports. Although a preliminary analysis was undertaken, there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource. Insufficient data exists to confidently correlate coal seams and generate a grid mesh model. There is some evidence to support the current exploration tonnage calculations, and the sufficient coal thicknesses interpreted from historic drilling to warrant further investigation in some areas. The estimates of Exploration Targets presented in this document are considered to be a true reflection as at 1 st May 2012 and have been carried out in accordance with the principles and guidelines of the Australian Code for Reporting of Coal Resources and Coal Reserves published in September 2004 (JORC Code). To the north lies the EPCA613 and EPCA689 currently held by Monto Coal 2 Pty Ltd and EPCA1175 held by Mr T. Byrt but assigned to Carabella Resources (ASX:CLR). To the south lies EPCA1170 and EPCA796 currently held by SE QLD Coal Pty Ltd as well as EPCA760 and EPCA918 held by the New Hope Group (ASX:NHC). These EPCA s are investigating sediments of The Walloon Coal Measures found in the area of the western edge of the Surat Basin. To the west lie EPCA995 and EPCA965 held by Argos (QLD) Pty Ltd; EPCA1412 leased by Aquila Coal Pty Ltd (ASX:AQA); EPCA1735 held by Holloman Minerals Pty Ltd and EPCA2337 Blackwood Resources Pty Ltd. These EPCA s lie within the north western flank of the Surat Basin, containing the Evergreen Formation, Hutton Sandstone, and Walloon Coal Measures, all of which are coal bearing sequences. The tenements are highly prospective for thermal and potentially, a semi soft coking coal, and Legacy intends to immediately commence drilling on these tenements once granted.

4 On 29 February 2012, Subiaco Capital received confirmation that EPCA 2303 and EPCA 2304 could proceed to grant. EPCA 2580 Velarium Holdings Pty Ltd Based in the Surat basin, the tenement covers approximately 840 km 2 and has the advantage of being close to infrastructure with major roads nearby and rail intersecting the tenements. Whilst no exploration has been carried out on the tenement, there is a high probability of thermal coal targets and possible coking coal targets at depth. EPCA 2556, 2566 and 2941 Sara Bella Energy Pty Ltd These tenements have been acquired targeting coking and thermal coal. EPCA 2556 is 136 km West of Brisbane it is within the Maryborough basin domain, and covers 1,500km 2.Historic water bore holes show presence of coal. EPCA 2566 is 128km North West of Brisbane. The main targets on this tenement will be Triassic Tarong bed coal. EPCA 2941 is located 200 km west of Mackay and is located 24km to the East of Mt Coolan. Xstrata's Newlands mine is 86km to the East. Location All EPCA s are close to major roads and rail, with major investments by BHP, Xstrata and large Indian groups recently announced.

5 Terms of the Acquisition Legacy has entered into a binding term sheet with the vendors of the tenements to acquire the projects by way of a staged consideration. The key terms of the agreement are as follows: A refundable deposit of: $100,000 to Subiaco Capital Pty Ltd (EPCA 2303 and EPCA 2304) $50,000 to Velarium Holdings Pty Ltd (EPCA 2580) $50,000 to Sara Bella Energy Pty Ltd (EPCA 2556, EPCA 2566 and EPCA 2941) The deposit is refundable if the EPCA s are not granted within 6 months from execution of the binding term sheet, or no later than 30 calendar days from execution of the term sheet if Legacy provides written notice that due diligence is not satisfactory. An initial cash payment (less any deposit), upon granting of the EPCA s and completion of due diligence, of: $1,650,000 to Subiaco Capital Pty Ltd $825,000 to Velarium Holdings Pty Ltd $825,000 to Sara Bella Energy Pty Ltd The payment to be made upon normal commercial terms within 7 calendar days of completion subject to any regulatory and shareholder approvals. Deferred performance based cash payment of: $2,500,000 to Subiaco Capital Pty Ltd upon the delineation of an inferred JORC standard resource of no less than 100Mt of thermal coal with a Calorific Value greater than 5,000 Kcal/kg calorific value on tenements EPCA 2303 and Completion of the Acquisition must occur within 6 months from execution of the binding term sheet and includes re imbursement of the first year tenement rents. Competent Person Statement The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources or Ore Reserves is based on information compiled by Mr M. Biggs who is a member of The Australasian Institute of Geoscientists and the Principal Geologist for Moutlrie Group. Mr Biggs has sufficient experience relevant to the style and type of coal deposit under consideration and to the activity, which is being undertaken to qualify as a Competent Person (or Recognised Mining Professional) as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The undersigned consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Name Job Title Registration Experience (Years) Signed M Biggs Principal Geologist (Moultrie) AusIMM

6 Appendix EPC 2580 VELARIUM HOLDINGS PTY LTD 300 Sub blocks

7 For personal use only EPC 2556 SARA BELLA ENERGY LIMITED 197 sub blocks

8 For personal use only EPC 2566 SARA BELLA ENERGY LIMITED 60 sub blocks

9 For personal use only EPC 2941 SARA BELLA ENERGY LIMIT 297 sub blocks

10 For personal use only EPC 2303 SUBIACO CAPITAL PTY LTD 300 sub blocks

11 EPC 2304 SUBIACO CAPITAL PTY LTD 300 SUB BLOCKS