Legacy Iron Ore : Quarterly Activity Report

About Legacy Iron Ore

Legacy Iron Ore Limited ("Legacy Iron" or the "Company") is a Western Australian based Company, focused on iron ore, base metals, tungsten and gold development and mineral discovery.

Legacy Iron'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 2008. Since then, Legacy Iron has had a number of iron ore, manganese and gold discoveries which are now undergoing drilling and resource definition.

Board

1. Baijendra Kumar, Non-ExecutiveChairman
   Amitava Mukherjee, Non-Executive Director Alok Kumar Mehta, Non-Executive Director Devanathan Ramachandran, Non-Executive Director
   Rakesh Gupta, Director and Chief Executive Officer

Ben Donovan, Company Secretary

Key Projects

Mt Bevan Iron Ore Project

South Laverton Gold Project

East Kimberley Gold, Base Metals and REE

Project

Enquiries

Rakesh Gupta

Chief Executive Officer

Phone: [phone]

Quarterly Report

Period ended 30th June 2020

31 July 2020

The Company Announcements Office

ASX Limited

Via E Lodgement

REPORT FOR THE QUARTER ENDED

30th June 2020

Please find attached the Company's Quarterly Activities Report for the

quarter ended 30th June 2020.

Yours faithfully

LEGACY IRON ORE LIMITED

ASX Codes: LCY

LEVEL 6

200 ADELAIDE TERRACE PERTH WA 6000

PO BOX 5768

ST GEORGES TERRACE WA 6831

Rakesh Gupta

Chief Executive Officer

Phone: [phone]

Fax: [phone]

Email: [e-mail]

Web: www.legacyiron.com.au

HIGHLIGHTS

EXPLORATION AND DEVELOPMENT

South Laverton:

Mt Celia:

• A total of 2798 m RC drilling in 29 drill holes completed in the Kangaroo Bore and Blue Peter gold deposit
• The construction of two water bores completed to support diamond drilling programme
• First phase Environmental (flora) survey completed
• PQ size core drilling commenced to generate samples for metallurgical test works

Yilgangi:

• Drill plan finalized to further assess the QAQC and the extensions of golden rainbow prospects, and test the anomalous trends identified from the previous rounds of MMI sampling.
• Initial site preparation work has been completed in project area to commence the drilling

EXPLORATION

Legacy Iron is an active exploration company with a diverse portfolio of assets spanning iron ore, gold, base metals and tungsten (Figure 1).

The Company has a significant landholding in the Eastern Goldfields (Yillgarn) and East Kimberley districts of WA. In the Eastern Goldfields, the company holds tenements with several gold prospects/resources, whilst the East Kimberley Project has excellent potential to host base metal

• gold, tungsten and rare earth elements (REE) mineralisation.

The Company is also in a Joint Venture with Hawthorn Resources Limited (Hawthorn) on the Mt Bevan Project, north of Kalgoorlie in Western Australia, where the Company aims to progress a potentially world class magnetite project and exploring for nickel-copper mineralisation at an early stage.

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Figure 1 Legacy Iron - Project Locations

Major focus of the Company's activity in the present is delivering a resource upgrade at Mt Celia and carryout the project feasibility evaluation with an aim to develop Mt Celia gold project.

GOLD

South Laverton Gold Project

The South Laverton Project includes Mt Celia, Yerilla, Yilgangi, Sunrise Bore and Patricia North tenements of Legacy Iron Ore Limited (Figure 2). The Mt Celia, Yerilla and Yilgangi tenements contain a number of gold occurrences with known gold resource estimates from years prior to the change in JORC code reporting in 2012. The Company upgraded the resource estimates for Mt Celia (Kangaroo Bore and Blue Peter orebodies), with the remaining tenements to occur.

The company is progressing the Mt Celia project with a view to develop a mine. The initial scoping/pit optimisation study completed in 2018 (ASX announcement 15 Oct 2018) showed a positive result towards that objective.

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Figure 2 Legacy Iron's South Laverton Gold Projects on regional geology

Mt Celia Project

The Mt Celia Project lies within the Laverton Tectonic Zone, some 40km south of the Sunrise Dam gold mine (approximately 8Moz gold resource), as shown in Figure 2.The Project currently contains several known gold occurrences including Kangaroo Bore and Blue Peter prospects (Figure 3).

Total resource at Mt Celia stands as below as of March 2018 (Table 1) -

Deposit	Classification	Cut-off (g/t)	Tonnage (t)	Grade (g/t)	Metal (OZ)
Kangaroo Bore	Inferred	0.7	2,800,000	1.48	133,000
Blue peter	Inferred	1	607200	2.62	51,100
Total (Mt Celia)	Inferred		3,407,200	1.68	184,100

Table 1 Mt Celia Project - Mineral Resource estimate as at March 2018

(Note: Please refer to ASX announcement made on 17 Nov 2017 and 22 Mar 2018 for the complete statement about the above Kangaroo bore and Blue Peter resource estimates. Additional rounds of RC drilling been completed at Kangaroo Bore after these estimates and announced on 31 July 2019 and 22nd July 2020; however, these are mainly aimed to test the continuity and depth extensions of the ore body and will be considered in the next round of the resource upgrade for the project)

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Figure 3 Mt Celia Project - Aerial image showing various prospect locations

As mentioned previously, an Initial Scoping Study/pit optimisation study completed in 2018 confirms that the Mt Celia project has the potential to be a technically and economically viable

project (ASX announcement 15 Oct 2018).

During the quarter, a total of 29 RC inclined holes were drilled at the project during the month of May 2020. These holes were mostly infill drilling to support resource upgrade and test the depth continuity of the mineralized quartz vein.

A total of 2798 metres of RC drilling was carried out in the quarter. Two water bores have also been constructed in the project to assist in diamond drilling. The first phase of Flora survey to assist in the environmental survey report was also carried out in the month of June 2020. Diamond drilling for metallurgical test works has commenced in this month.

A preliminary evaluation of the RC assays shows outstanding results. Almost every drill hole (27 out of 29 holes) have revealed significant intersections (>1.8ppm). The highest assay value received is 2m at 12.21g/t Au from the programme. (Figure-4)

The map showing location of the drilled RC holes is as below:

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Figure 4 RC drill hole locations May 2020

An initial review shows that these results largely support the existing interpretation for the deposit as well as confirms down-dip continuity of the mineralisation beyond the preliminary designed pit. (Please refer for the drilling results ASX announcement dated 22nd July 2020)

The drilling result confirms significant potential to define additional mineralisation at Kangaroo Bore and Blue Peter deposit. The results to be used for additional resource definition and resource upgrade.

The company plans to achieve the following key outcomes in the next 6 months -

• Convert the Kangaroo Bore and Blue Peter resources into an indicated resource to carry out an updated feasibility study (PFS).
• Understanding of geotechnical, geometallurgical and Hydrological characteristics of the ore body (reduce uncertainty around resource quality and pit).
• Increase overall resource for the Mt Celia project -

• 1. There are numerous areas present within close proximity of Kangaroo Bore ore body requiring a small amount of additional drilling to verify its continuity and become part of inferred resource.
• Define any environmental and Heritage issues associated with the project development.
• Obtain the regulatory approvals for the mining.

Next steps:

To completer approx. 600 m of Diamond drilling to assist in metallurgical test works. The metallurgical test works will commence from the 2nd week of August to ascertain the

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metallurgical characteristic of the deposit and also to design flow sheet for the ore processing.

• The Company will commence approx. 4000m RC drilling to test numerous early-stage targets with potential for subparallel mineralisation within 100 m of the Kangaroo Bore resource, and an extension of Blue Peter resource along the strike.
• Approx.1000 m of core drilling is planned in the month of September and October to support geotechnical studies in the project.
• Resource modelling and pit optimization work will be undertaken once the drilling results of the above programmes are available.
• Finalise the plans and commence environmental, heritage and hydrogeological assessments to assist the project with the permitting requirements.
• Finalise plan the follow-up on other targets present in the Mt Celia Project tenement.

Yilgangi Project

The Yilgangi project forms part of Legacy Iron's South Laverton Gold Project which includes Mt Celia, Yilgangi, Yerilla, Patricia North and Sunrise Bore tenements (Figure 2).

The Yilgangi Project includes two exploration tenements (E31/1019 and E31/1020) and two mining leases (M31/426 and M31/427) and contains numerous gold occurrence/anomalies including the Golden Rainbow prospect where a number of drill holes have been completed and the gold mineralisation has been tested up to a shallow depth only.

In 2019 a comprehensive soil sampling campaign was completed on the tenements E31/1019 and E31/1020 to explore for potential strike extensions to mineralisation at Golden Rainbow deposit . The soil sampling results (by MMI analysis) have delineated several northwest-striking anomalies parallel to regional geological strike and structures (Figure 4 and ASX announcement 30 April 2019).

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Figure 5: Priority areas for follow-up exploration based on soil sampling results (MMI analysis)

These anomalies have not been adequately drill-tested by previous explorers and are a high priority for RC drill-testing by Legacy Iron Ore Ltd.

The company had plans to commence the RC drilling of 10-12 drill holes (for 1000-1200m) from March 26th but has been postponed due to the COVID-19. The program will be carried out later in the year.

Mt Bevan Project

Mt Bevan Project is a joint venture between Legacy Iron (60% interest) and Hawthorn. The project is a large tenement which hosts 1,170 Mt of magnetite resource @ 34.9% Fe (refer Table 2 below) as well as a potential for discovery of nickel-copper mineralisation in northern most part of the tenement.

Mt Bevan Iron Ore:

Mt Bevan is considered to hold excellent potential for the definition of major magnetite resources located relatively close to existing road, rail and port facilities. The project also has potential for DSO hematite discoveries.

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Successful exploration and resource definition program carried out now underpins the potential for a large-scale development at Mt Bevan (referTable 2 below for the current resource estimate and Figure 5 for a representative cross section). Legacy Iron continues to work with its 40% JV partner, Hawthorn, regarding the scope, timing and funding of further phases for the project.

Figure 6: Drilling Cross Section - Lines 3

				Mt Bevan Fresh BIF Resource
Class	Material	Tonnes	Fe	SiO2	Al2O3	CaO	P	S	LOI	MgO	Mn
x 106	%	%	%	%	%	%	%	%	%
	In situ Total	322	34.7	46.2	0.57	1.35	0.054	0.131	-1.05	1.91	0.31
Indicated	In situ	44.18%	30.0	2.4	0.01	0.08	0.005	0.053	-1.38	0.05	0.01
Magnetic*
	Concentrate	142	68.0	5.5	0.02	0.18	0.012	0.130	-3.12	0.12	0.03
	In situ Total	847	35.0	45.6	0.77	2.00	0.063	0.39	-1.15	1.77	0.04
Inferred	In situ	45.70%	30.8	2.8	0.01	0.06	0.004	0.042	-1.37	0.03	0.01
Magnetic*
	Concentrate	387	67.5	5.9	0.03	0.14	0.009	0.096	-3.00	0.06	0.02
	In situ Total	1,170	34.9	45.8	0.71	1.82	0.060	0.137	-1.12	1.81	0.11
Total	In situ	45.28%	30.6	2.7	0.01	0.07	0.004	0.045	-1.37	0.03	0.01
Magnetic*
	Concentrate	530	67.7	5.80	0.03	0.15	0.010	0.105	-3.03	0.07	0.02

Table 2 Mt Bevan Resource Estimate

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*In situ Magnetic is the material that is expected to report to the magnetic fraction. The in situ Magnetic quantities in the Tonnes column are expressed as the percentage of the in situ Total tonnes (as estimated from Davis Tube Mass recovery) Also, no

additional work has been done on these deposits which warrants revision of the above estimates at this stage. - See

Announcements from 2014 and 2015

(Full details of the project are available at the Company website www.legacyiron.com.au)

Mt Bevan Nickel - Copper:

The Mt Bevan Project is located immediately south of St George Mining Limited's (ASX: SGQ) Mt Alexander Project (Figure 6). St George Mining has had significant success identifying nickel- copper sulphide mineralisation at Cathedrals, Stricklands and Investigators along the Cathedrals Shear zone (refer to St George Mining Limited ASX announcements).

Figure 7: Mt Bevan Project - airborne magnetics data (TMI) showing area of interest for nickel sulphide mineralisation

No major field activities were carried out at the project during the quarter however the results of the mineragraphic and petrological studies on the RC drill chips has been reviewed to co-relate drill

results. (Refer ASX announcement 15 Oct 2019 which discuss full details of the drilling program initial geochemical

and downhole geophysics results.) The target evaluation for Nickel sulphide mineralization has been continuing and company still believes in the geology of the Northern part of the tenement, that can host Ni sulphide mineralization.

Location of the drill holes have been shown on the figure 7and 8 below -

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Drill hole MBC 1114

Figure 8: 2019 drill hole locations on Merged ground and regional TMI magnetics with structural interpretations and auger geochemistry Ni ppm

Figure 9: 2019 Drill hole locations on MLEM Slingram CH25 with structural interpretation lines and auger geochemistry (Ni ppm)

This area is almost completely concealed by Quaternary alluvium and colluvium cover.

COVID-19

During the quarter, the State Government imposed inter-regional travel restrictions within Western Australia to combat the spread of COVID-19, which limited the amount of travel to site.

As a result, the company delayed Yilgangi, Mt Bevan and Sunrise Bore project's drilling programs and focussed primarily on reviewing existing geological information and material generated from its exploration and sampling programmes for these projects.

The planned exploration work at East Kimberley tenements was also impacted by the travel restrictions.

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However, the activities planned for Mt Celia being the highest priority commenced as soon as the travel restrictions were eased out.

PLANNED ACTIVITIES - SEPTEMBER 2020 QUARTER

Main activities planned for the September 2020 quarter likely to comprise:

South Laverton:	Mt Celia project -
	• Commence the Metallurgical test works over the samples obtained from
	ongoing diamond drilling.
	• Update the geology model to assist with upgrading the resource
	classification for both the ore bodies in the Mt Celia project. Kangaroo
	Bore orebody is likely to be the first project to upgrade given that a
	significant amount of RC and diamond drilling has already been done and
	been considered in the current estimates.
	• Environmental, heritage and hydrogeological assessments to assist the
	project with the permitting requirements.
	• Commencing process of mining Lease and other statutory approvals in.
	• Follow-up on other targets present in the Mt Celia Project tenement.

Yilgangi -

• Drill test the potential extensions of the positive results seen in the soil and surface rock geochemistry.

For the purpose of Section 6 of the Appendix 5B, all payments made to related parties have been paid in relation to director fees.

Competent Person's Statement:

The information in this report that relates to Exploration Results is based on information compiled by Vivek Sharma who is a member of AusIMM and employee of Legacy Iron Ore Limited. Mr.Sharma has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Sharma consents to the inclusion in this report of the matters based on his information in the form and the context in which it appears.

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