Developing phosphate interests in the Georgina Basin, Queensland, Australia
Message: Legend's 18 Month Operating Plan - Time line from now to the real pay off
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OPERATING PLAN
Q2/2008
Complete exploration permitting
Continue mine permitting process
Continue work on Pre-Feasibility study
Begin land procurement for pipeline, drying facility, and port
Q3/2008
Being drilling to establish measured and indicated Joint Ore Reserves Compliant (JORC) technical
report (JORC is the Australian equivalent to National Instrument 43-101)
Begin metallurgical testing and evaluation
Complete Pre-Feasibility study
Begin Definitive Feasibility study
Q4/2008
Complete drilling to measured/indicated JORC
Begin resource, reserves estimates
Q1/2009
Complete metallurgical testing and evaluation
Complete Definitive Feasibility study
Begin procurement of construction materials
Begin 300km slurry pipeline construction
Begin beneficiation plant construction
Begin port facility construction
Q2/2009
Complete reserve and resource estimates
Finalize mine permitting
Complete procurement of construction materials
Q3/2009
Complete land procurement for pipeline
Q4/2009
Complete pipeline construction
Complete beneficiation plant construction
Begin mining and stockpiling
Ship product
eResearch
Legend International Holdings, Inc.
8
May 7, 2008
NOTES
Legend International Holdings, Inc.
Initiating Report
9
May 7, 2008
ANALYST CERTIFICATION
Each Research Analyst who was involved in the preparation of this Research Report hereby certifies that:
(1) the views, opinions, and recommendations expressed in this Research Report reflect accurately
the Research Analyst’s personal views concerning any and all securities and issuers that are discussed
herein and are the subject matter of this Research Report; and (2) the fees, earnings, or compensation,
in any form, payable to the Research Analyst, is not and will not, directly or indirectly, be related
to the specific views, opinions, and recommendations expressed by the Research Analyst in this
Research Report.
eResearch analysts on this report:
Kirsten Marion, B.A., B.Comm., CMA: Kirsten Marion has spent 15 years working in various
capacities for both public and private enterprise. Her duties have included being chief financial
officer and director of financial services for a multi-site acute care facility, and a contract consultant
in assorted accounting roles for various entities. She received her Certified Management Accountant
designation in 1986.
Bob Weir, B. Comm, B.Sc., CFA. Bob Weir has 40 years of investment research and analytical
experience in both the equity and fixed-income sectors, and in the commercial real estate industry.
He was at Dominion Bond Rating Service (DBRS) from 1994 to 2001, latterly as Executive Vice-
President responsible for conducting the day-to-day management affairs of the company. He joined
eResearch in 2004.
e
RESEARCH ANALYST GROUP
Director of Research: Bob Weir
Financial Services
Robin Cornwell
Biotechnology/Health Care
Scott Davidson
Marita Hobman
Transportation & Environmental Services/
Industrial Products
Bill Campbell
Oil & Gas
Eugene Bukoveczky
Achille Desmarais
Dick Fraser
Ross Deep
Mining & Metals
George Cargill
Eric Eng
Nigel Heath
Adrian Manlagnit
Kirsten Marion
Oliver Schatz
Amy Stephenson
Graham Wilson
Michael Wood
Special Situations
Asim Bukhtiar
Bill Campbell
Bob Leshchyshen
Ross Deep
Nigel Heath
Amy Stephenson
For further information:
Independent Equity Research Corp.
130 Adelaide St. West, Suite 2215, Toronto, ON, Canada M5H 3P5
Telephone: 416-643-7650 Toll-free: 1-866-854-0765
www.eresearch.ca
eResearch Disclosure Statement
eResearch accepts fees from the companies it researches (the “Covered Companies”), and from financial institutions or other third
parties. The purpose of this policy is to defray the cost of researching small and medium capitalization stocks which otherwise receive
little or no research coverage.
Legend International Holdings, Inc. paid eResearch a fee of US$20,000+GST to conduct research on the Company on an Annual
Continual Basis.
To ensure complete independence and editorial control over its research, eResearch follows certain business practices and compliance
procedures. For instance, fees from Covered Companies are due and payable prior to the commencement of research, are accepted only
in cash or currency and will not accept payment in shares, warrants, convertible securities or options of Covered Companies.
All Analysts are required to sign a contract with eResearch prior to engagement, and agree to adhere at all times to the CFA Institute
Code of Ethics and Standards of Professional Conduct. eResearch analysts are compensated on a per-report, per-company basis and not
on the basis of his/her recommendations. Analysts are not allowed to accept any fees or other consideration from the companies they
cover for eResearch. Analysts are also not allowed to trade in the shares, warrants, convertible securities or options of companies they
cover for eResearch.
In addition, eResearch, its officers and directors, cannot trade in shares, warrants, convertible securities or options of any of the Covered
Companies. eResearch’s sole business is providing independent equity research to its institutional and retail subscribers.
eResearch will not conduct investment banking or other financial advisory, consulting or merchant banking services for the Covered
Companies. eResearch is not a brokerage firm and does not trade in securities of any kind.
eResearch makes all reasonable efforts to provide its research, via e-mail, simultaneously to all subscribers. eResearch posts all of its
research on its own website (www.eresearch.ca), disseminates its research through its extensive electronic distribution network, and
provides notification of its research through newswire agencies.
Additional distribution of our research may be done through agreements with newswire agencies.
eResearch Recommendation System
Strong Buy:
Expected total return within the next 12 months is at least 40%.
Buy:
Expected total return within the next 12 months is between 10% and 40%.
Speculative Buy: Expected total return within the next 12 months is substantial, but Risk is High (see below).
Hold:
Expected total return within the next 12 months is between 0% and 10%.
Sell:
Expected total return within the next 12 months is negative.
eResearch Risk Rating System
A company may have some, but not necessarily all, of the following characteristics of a specific risk rating to qualify for that rating:
High Risk:
Financial - Little or no revenue and earnings, limited financial history, weak balance sheet, negative free cash flows,
poor working capital solvency, no dividends.
Operational - Weak competitive market position, early stage of development, unproven operating plan, high cost
structure, industry consolidating, business model/technology unproven or out-of-date.
Medium Risk:
Financial - Several years of revenue and positive earnings, balance sheet in line with industry average, positive free
cash flow, adequate working capital solvency, may or may not pay a dividend.
Operational - Competitive market position and cost structure, industry stable, business model/technology is well
established and consistent with current state of industry.
Low Risk:
Financial - Strong revenue growth and earnings over several years, stronger than average balance sheet, strong positive
free cash flows, above average working capital solvency, company may pay (and stock may yield) substantial dividends
or company may actively buy back stock.
Operational - Dominant player in its market, below average cost structure, company may be a consolidator, company
may have a leading market/technology position.
OPERATING PLAN
Q2/2008
Complete exploration permitting
Continue mine permitting process
Continue work on Pre-Feasibility study
Begin land procurement for pipeline, drying facility, and port
Q3/2008
Being drilling to establish measured and indicated Joint Ore Reserves Compliant (JORC) technical
report (JORC is the Australian equivalent to National Instrument 43-101)
Begin metallurgical testing and evaluation
Complete Pre-Feasibility study
Begin Definitive Feasibility study
Q4/2008
Complete drilling to measured/indicated JORC
Begin resource, reserves estimates
Q1/2009
Complete metallurgical testing and evaluation
Complete Definitive Feasibility study
Begin procurement of construction materials
Begin 300km slurry pipeline construction
Begin beneficiation plant construction
Begin port facility construction
Q2/2009
Complete reserve and resource estimates
Finalize mine permitting
Complete procurement of construction materials
Q3/2009
Complete land procurement for pipeline
Q4/2009
Complete pipeline construction
Complete beneficiation plant construction
Begin mining and stockpiling
Ship product
eResearch
Legend International Holdings, Inc.
8
May 7, 2008
NOTES
Legend International Holdings, Inc.
Initiating Report
9
May 7, 2008
ANALYST CERTIFICATION
Each Research Analyst who was involved in the preparation of this Research Report hereby certifies that:
(1) the views, opinions, and recommendations expressed in this Research Report reflect accurately
the Research Analyst’s personal views concerning any and all securities and issuers that are discussed
herein and are the subject matter of this Research Report; and (2) the fees, earnings, or compensation,
in any form, payable to the Research Analyst, is not and will not, directly or indirectly, be related
to the specific views, opinions, and recommendations expressed by the Research Analyst in this
Research Report.
eResearch analysts on this report:
Kirsten Marion, B.A., B.Comm., CMA: Kirsten Marion has spent 15 years working in various
capacities for both public and private enterprise. Her duties have included being chief financial
officer and director of financial services for a multi-site acute care facility, and a contract consultant
in assorted accounting roles for various entities. She received her Certified Management Accountant
designation in 1986.
Bob Weir, B. Comm, B.Sc., CFA. Bob Weir has 40 years of investment research and analytical
experience in both the equity and fixed-income sectors, and in the commercial real estate industry.
He was at Dominion Bond Rating Service (DBRS) from 1994 to 2001, latterly as Executive Vice-
President responsible for conducting the day-to-day management affairs of the company. He joined
eResearch in 2004.
e
RESEARCH ANALYST GROUP
Director of Research: Bob Weir
Financial Services
Robin Cornwell
Biotechnology/Health Care
Scott Davidson
Marita Hobman
Transportation & Environmental Services/
Industrial Products
Bill Campbell
Oil & Gas
Eugene Bukoveczky
Achille Desmarais
Dick Fraser
Ross Deep
Mining & Metals
George Cargill
Eric Eng
Nigel Heath
Adrian Manlagnit
Kirsten Marion
Oliver Schatz
Amy Stephenson
Graham Wilson
Michael Wood
Special Situations
Asim Bukhtiar
Bill Campbell
Bob Leshchyshen
Ross Deep
Nigel Heath
Amy Stephenson
For further information:
Independent Equity Research Corp.
130 Adelaide St. West, Suite 2215, Toronto, ON, Canada M5H 3P5
Telephone: 416-643-7650 Toll-free: 1-866-854-0765
www.eresearch.ca
eResearch Disclosure Statement
eResearch accepts fees from the companies it researches (the “Covered Companies”), and from financial institutions or other third
parties. The purpose of this policy is to defray the cost of researching small and medium capitalization stocks which otherwise receive
little or no research coverage.
Legend International Holdings, Inc. paid eResearch a fee of US$20,000+GST to conduct research on the Company on an Annual
Continual Basis.
To ensure complete independence and editorial control over its research, eResearch follows certain business practices and compliance
procedures. For instance, fees from Covered Companies are due and payable prior to the commencement of research, are accepted only
in cash or currency and will not accept payment in shares, warrants, convertible securities or options of Covered Companies.
All Analysts are required to sign a contract with eResearch prior to engagement, and agree to adhere at all times to the CFA Institute
Code of Ethics and Standards of Professional Conduct. eResearch analysts are compensated on a per-report, per-company basis and not
on the basis of his/her recommendations. Analysts are not allowed to accept any fees or other consideration from the companies they
cover for eResearch. Analysts are also not allowed to trade in the shares, warrants, convertible securities or options of companies they
cover for eResearch.
In addition, eResearch, its officers and directors, cannot trade in shares, warrants, convertible securities or options of any of the Covered
Companies. eResearch’s sole business is providing independent equity research to its institutional and retail subscribers.
eResearch will not conduct investment banking or other financial advisory, consulting or merchant banking services for the Covered
Companies. eResearch is not a brokerage firm and does not trade in securities of any kind.
eResearch makes all reasonable efforts to provide its research, via e-mail, simultaneously to all subscribers. eResearch posts all of its
research on its own website (www.eresearch.ca), disseminates its research through its extensive electronic distribution network, and
provides notification of its research through newswire agencies.
Additional distribution of our research may be done through agreements with newswire agencies.
eResearch Recommendation System
Strong Buy:
Expected total return within the next 12 months is at least 40%.
Buy:
Expected total return within the next 12 months is between 10% and 40%.
Speculative Buy: Expected total return within the next 12 months is substantial, but Risk is High (see below).
Hold:
Expected total return within the next 12 months is between 0% and 10%.
Sell:
Expected total return within the next 12 months is negative.
eResearch Risk Rating System
A company may have some, but not necessarily all, of the following characteristics of a specific risk rating to qualify for that rating:
High Risk:
Financial - Little or no revenue and earnings, limited financial history, weak balance sheet, negative free cash flows,
poor working capital solvency, no dividends.
Operational - Weak competitive market position, early stage of development, unproven operating plan, high cost
structure, industry consolidating, business model/technology unproven or out-of-date.
Medium Risk:
Financial - Several years of revenue and positive earnings, balance sheet in line with industry average, positive free
cash flow, adequate working capital solvency, may or may not pay a dividend.
Operational - Competitive market position and cost structure, industry stable, business model/technology is well
established and consistent with current state of industry.
Low Risk:
Financial - Strong revenue growth and earnings over several years, stronger than average balance sheet, strong positive
free cash flows, above average working capital solvency, company may pay (and stock may yield) substantial dividends
or company may actively buy back stock.
Operational - Dominant player in its market, below average cost structure, company may be a consolidator, company
may have a leading market/technology position.
1 Recommendations
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