Legacy Iron Ore Limited notes the announcement made this morning by Hawthorn Resources Limited (“Hawthorn”) regarding the term sheet announced on December 21st 2011, whereby Legacy proposed to invest AUD 5 million to acquire up to 60% of the issued capital in Hawthorn in return for the cancellation of the Joint Venture Agreement on the Mount Bevan iron ore project.

Legacy wishes to confirm that they are in discussions with Hawthorn on alternative transaction methods with a view to establishing a new term sheet with renegotiated terms.

Legacy advises that it has terminated the current Term Sheet announced on December 21st 2011 and that Legacy will continue under the Joint Venture Agreement whereby Legacy will earn a 60% interest in the Mount Bevan iron ore project via spending AUD 3.5 million.

The Joint Venture will continue unaffected.

Legacy will provide an update to the market in due course.