MELBOURNE, Australia, May 14, 2009 (BUSINESS WIRE) -- Legend International Holdings, Inc (Legend) (OTCBB:LGDI) today announced that 3.5Mtpa capacity will be available on the Mt Isa to Townsville rail corridor, which is the chosen route for transporting phosphate rock from its projects in the Georgina Basin of north west Queensland to the Port of Townsville.

The rail network provider, QR Network Ltd (QR), released the Mt Isa System Rail Infrastructure Master Plan in July 2008. This plan clearly outlines the step increases in rail capacity achievable with certain levels of capital investment. To increase from the current capacity of 5Mtpa to 7.5Mtpa, QR has stated that A$28 million will allow this to occur. This 2.5Mtpa step increase in capacity is being fully funded by QR and the work is already underway with completion due next year.

This increase, combined with the currently available capacity of 1Mtpa, gives a total of 3.5Mtpa of capacity available in the short term for the Legend Phosphate Project. QR stated that pending the signing of an Access Agreement, this capacity is entirely available for Legend's project.

To increase the rail capacity above 7.5Mtpa further investment is required on the main line and the Eastern Access rail corridor at the Port of Townsville area.

Although the current federal government budget has not announced funding for the Mt Isa to Townsville rail line, an Australian newspaper 'The Courier Mail' yesterday reported that:

"Several Queensland projects with "real potential" will be further considered for funding at a later stage including the Eastern Busway, Lord Mayor Campbell Newman's Northern Link tunnel, the Abbot Point multi-cargo facility, the Port of Brisbane Motorway upgrade and the Mount Isa-Townsville Rail Corridor."

Legend has had a number of positive discussions with Federal and State Ministers in regard to securing funding for the necessary improvements to the Mt Isa - Townsville rail network. Legend is confident that, in line with the Australian Government's desire to development Queensland's North West Minerals Province, the Australian Government will aid the improvement of the Mt Isa - Townsville Rail line, and that the necessary improvements will coincide with Legend's timeline for exporting up to 5Mtpa of phosphate rock.