Legend International Holdings Inc Announces Grant of Mining Lease and Project Update

Legend International Holdings, Inc (OTCBB:LGDI) is pleased to
announce that the State Government of Queensland, Australia has approved
the grant of Legend′s D-Tree North mining lease ML90190 north west of
Mt. Isa, Queensland, Australia. D-Tree North was the first Mining Lease
(ML) applied for in Queensland for the Legend Phosphate Project.

The Paradise North Mining Lease application (ML90191) which is the
initial focus of the recently completed Paradise Phosphate Project
Feasibility Study is expected to also receive government approval and
grant early in Quarter 4, 2010.

The grant of the D-Tree North ML is a significant milestone and
highlights the confidence and support that the Queensland State
Government has for the Legend Phosphate project. The grant of this ML is
a good indicator that current applications will also be granted in the
same smooth and efficient manner that has been displayed to date by the
Queensland Government for Legend′s Phosphate Project.

PROJECT UPDATE

Legend recently announced the positive and robust results of its
Feasibility Study for the Paradise Phosphate Project (see announcement
dated July 23, 2010). Legend wishes to clarify a number of the key
points associated with the capital costs and cash operating margins for
MAP/DAP production previously reported for the project.

• CAPEX? US$688 in first 3 years.

The total capital cost of the project has been previously reported as a
total of US$808.16 million. The previous announcements however did not
clearly outline the timing of these capital needs. Table 1 below shows
the estimated timing of capital requirements for the base case scenario
as considered by the Paradise Phosphate Project Feasibility Study:

As shown in Table 1 the capital required in the first 3 years from 2011
? 2013 is US$688 million and relates directly to mining and
transport infrastructure, with associated working capital, and the
construction of the Mt. Isa Phosphate Fertilizer Complex. The
beneficiation plant CAPEX of US$120 million is required in years
2016-2017 as the first feed for the fertilizer complex is from high
grade material from Paradise North, and does not need to be
beneficiated, therefore delaying the need for those capital funds until
after 5 years of operation.

The raising of the necessary capital will be conducted in a staged and
methodical manner which Legend strongly believes is achievable in the
timeline presented. Legend continues to have positive and productive
discussions with both Wengfu and other major industry corporations in
relation to obtaining the funds needed to meet the project schedule.

• CASH OPERATING MARGIN

Legend has previously reported DAP/MAP cash operating costs of US$321.3
per tonne of DAP production. Using the long term estimated DAP price of
US$531/t (fob Townsville using import parity pricing structure which
equates to US$445 fob Tampa, FL. Current price as of August 13, 2010 is
reported by FMB Group at US$490-500/t fob Tampa) gives a cash operating
margin of US$209.7 per tonne of DAP production. This margin however has
not included the cash credits which will be achieved from the sale of
15,000 tonnes per year of the value added by-product aluminum fluoride
(AlF₃). An estimated US$28.55 million per year in revenue
from the sale of AlF₃ can be added as AlF₃ credits
to the DAP cash operating margin. This equates to an extra US$47.6/t of
DAP production that can be subtracted from the operating costs or added
to the cash operating margin which gives a total estimated cash
operating margin of US$257.3/t of DAP produced and an effective
operating cost of US$273.7/t DAP production.

A US$257.3/t cash margin or US$273.7/t operating cost is significant and
puts Legend amongst the lower cost producers. This margin will see
Legend achieving US$113 million in after tax profits per year.

Forward-Looking Statements

Forward-looking statements in this press release are made pursuant to
the 'safe harbour? provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties including, without
limitation, the risks of exploration and development stage projects,
risks associated with environmental and other regulatory matters, mining
risks and competition and the volatility of mineral prices. Actual
results and timetables could vary significantly. Additional information
about these and other factors that could affect the Company′s business
is set forth in the Company′s fiscal 2009 Annual Report on Form 10-K and
other filings with the Securities and Exchange Commission.

Legend International Holdings, Inc.

Mr. Joseph Gutnick

Chief
Executive Officer

Tel: +011 613 8532 2866

Fax: +011 613 8532
2805

josephg@axisc.com.au

or

Legend
International Holdings, Inc.

General Manager Business

New
York Office

Tel: 212-223-0018

Fax: 212-223-1169

legendinfo@axisc.com.au