CORAZON MINING LIMITED — Audit Report / Information 2005

Jun 27, 2005

21 June 2005

The Directors Gravnic Metals Limited Level 2, 22 Oxford Close LEEDERVILLE WA 6007

Dear Sirs

INVESTIGATING ACCOUNTANT'S REPORT

Introduction

This report has been updated at the request of the Directors of Graynic Metals Limited ("Gravnic Metals" or "the Company"). The report was originally included in a prospectus dated 13 April 2005 and was prepared under Australian Accounting Standards in operation under Australian Generally Accepted Accounting Practices (AGAAP). The report has been redrafted so as to be compliant with the equivalent to Australian International Accounting Standards (AIFRS). The prospectus was lodged with the Australian Securities and Investment Commission ("ASIC") on or around 13 April 2005 ("Prospectus") and relates to the proposed issue of up to 6,250,000 ordinary shares at an issue price of 20 cents each to raise a total of \$1,250,000.

Basis of Preparation

The report has been prepared to provide investors with information on historical results and the financial position of Graynic Metals, and to provide investors with a pro forma statement of financial position of Graynic Metals as at 31 March 2005 adjusted to include funds raised by this Prospectus and the completion of exploration interest acquisitions and other transactions as referred to in Note 2 of Appendix 2.

This Report does not address the rights attaching to the Shares to be issued in accordance with the Prospectus, the risks associated with the investment, nor form the basis of an Expert's opinion with respect to a valuation of the Company or a valuation of the Share issue price of 20 cents per share.

Ord Corporate Pty Ltd ("Ord Corporate") has not been requested to consider the prospects for Graynic Metals nor the merits and risks associated with becoming a shareholder and accordingly, has not done so, nor purports to do so. Ord Corporate accordingly takes no responsibility for those matters nor for any matter or omission in the Prospectus, other than responsibility for this report.

Background

Graynic Metals was incorporated on 10 February 2005 with the intention to seek official quotation on the Australian Stock Exchange Limited ("ASX") in April 2005 as a base metals exploration company.

Since incorporation, the only activities undertaken by the Company have been to secure interests in a number of exploration tenements, and preparation for the proposed listing of Graynic Metals.

From the date of incorporation to 31 March 2005, 2,000,003 ordinary fully paid shares have been issued as follows:

• 3 subscriber shares were issued to the founding members at \$1.00 per share;
• 500,000 shares were issued to promoters at 0.1 cents per share; and
• 1,500,000 shares were issued to seed capitalists at 10 cents per share. $\blacksquare$

Ord Business Advisor Services Pty Ltd ABN: 30 097 209 649

Ord Corporate Pty Li ABN: 26 097 209 589

Ord Computer Consulting Pty Ltd ABN: 97 010 705 447

Ord Financial Service Prv Ltd ABN: 50 086 \$16 \$14

Level 2, 47 Colin Stree West Perth WA 600

PO Box 359 West Perth WA 6872

$2 + 61893213514$ $\equiv$ +61893213523

ord@ordgroup.com.a www.ordgroup.com.a

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Scope of Report

Ord Corporate has been requested to:

• (a) report whether anything has come to our attention which would cause us to believe that the historical financial information disclosed in the appendices to this report is not fairly presented in accordance with generally accepted accounting principles as applied in Australia for reporting on financial information in a public offer document, including Australian equivalents to International Financial Reporting Standards (AIFRS); and
• (b) report whether anything has come to our attention which would cause us to believe that the pro-forma financial information disclosed in the appendices to this report is not properly drawn up in accordance with the basis of preparation and assumptions set out therein and with generally accepted practice, including AIFRS, as applied in Australia for presenting pro-forma financial information in a public offer document.

Graynic Metals has prepared, and is responsible for, the historical and pro-forma financial information included in the appendices to this report.

Scope of Review

Ord Corporate has not audited the financial statements of Graynic Metals as at 31 March 2005. We have conducted our review of the historical financial information in accordance with Auditing Standard AUS 902 "Review of Financial Reports". We made such enquiries and performed such procedures as we, in our professional judgement, considered reasonable in the circumstances, including:

• (i) enquiry of directors, management and others;
• (ii) review of contractual arrangements; and
• (iii) a review of work papers, accounting records and other documents.

The review procedures were substantially less in scope than an audit examination conducted in accordance with generally accepted auditing standards.

Having regard to the nature of the review, which provides less assurance than an audit, and to the nature of the historical and pro-forma financial information, this report does not express an audit opinion on the historical and pro-forma financial information included in the appendices to this report.

Valuation of Exploration Interests

The principal assets of Graynic Metals will be its exploration interests.

The exploration interests have been included at cost in the pro-forma statement of financial position. We have not performed our own valuation of the exploration interests. We are unable to form a view on whether the carrying values of the exploration interests are fairly stated.

Opinions

Historical Financial Information $(a)$

Based on our review, which is not an audit, nothing has come to our attention which causes us to believe that the historical financial information, as set out in Appendix 1 and 2 of this report is not presented fairly in accordance with generally accepted accounting principles as applied in Australia, including AIFRS, for reporting on financial information in a public offer document.

Pro-forma Financial Information ΦЭ

Based on our review, which is not an audit, nothing has come to our attention which causes us to believe that the pro-forma financial information, as set out in Appendix 1 and 2 of this report, is not properly drawn up in accordance with basis of preparation in Appendix 1 and 2 and assumptions set out to this report and with generally accepted practice as applied in Australia, including AIFRS, for presenting pro-forma financial information in a public offer document.

Subsequent Events

To the best of Ord Corporate's knowledge and belief, there have been no material items, transactions or events subsequent to 31 March 2005 not otherwise disclosed in this report, that have come to our attention during the course of our review which would cause the information included in this report to be misleading.

Independence

Ord Corporate does not have any interest in the outcome of the listing of the shares, other than in connection with the preparation of this report for which normal professional fees will be received. Ord Corporate does not hold nor have any interest in the ordinary shares of the Company.

Ord Corporate were not involved in the preparation of any part of the Prospectus, and accordingly, make no representations or warranties as to the completeness and accuracy of any information contained in any other part of the Prospectus

Ord Corporate consents to the inclusion of this report in the Prospectus in the form and content in which it is included. At the date of this report, this consent has not been withdrawn.

Yours faithfully ORD CORPORATE PTY LTD

Lloyd Flint Director