CORAZON MINING LIMITED — Capital/Financing Update 2005

Aug 16, 2005

Level 3, 22 Oxford Close WEST LEEDERVILLS WA 6872 T: +61 8 9381 1436 F: +61 8 9381 1068 PO Bos 1681 WEST PERTH WA 6872 www.graysicmerals.com.au

17 August 2005

ASX Announcement

NON-RENOUNCEABLE PRO RATA OFFER OF OPTIONS

As disclosed in the Company's Prospectus dated 13 April 2005, the Directors of Graynic Metals Limited have resolved that the Company will make a pro rata non-renounceable offer of up to 12,250,002 options at an issue price of one cent per option (Options) to acquire fully paid ordinary shares (Shares) in the Company.

The Offer will be made to Graynic Metals shareholders on a basis of one (1) Option for every two (2) Shares held at 5.00pm WST on 29 August 2005 (Record Date). The Company intends to lodge a Prospectus for the Offer at the Australian Securities & Investment Commission on 18 August 2005. The Prospectus will be mailed to each shareholder registered in the share register on the Record Date. Each shareholder's entitlement under the Offer will be set out in the Entitlement and Acceptance Form that will accompany the Prospectus.

The Options will be exercisable at 20 cents each on or before 31 October 2007. The Company will apply for official quotation of the Options issued under the Prospectus.

The Company is pleased to announce the important dates for the offer are as follows:

Lodgement of Prospectus	18 August 2005
'Ex' Date	23 August 2005
Record Date	29 August 2005
Acceptance closes at 5pm WST	16 September 2005

Applicants should consult their brokers or professional advisors in regards to the definition of 'Ex' Date and Record Date to ensure that their entitlement to participate in the offer is assured.

Yours faithfully

Nathan McMahon Director