CORAZON MINING LIMITED — Capital/Financing Update 2005

Jun 27, 2005

NO 128

Level 2, 22 Oxford Chase WEST LEEDIESVILLE WA 6872 T: +61 8 9381 1436 F: +61 8 9381 1968 PO Box 1681 WEST PERTH WA 6672 www.graphicmetris.com.zu

22 June 2005

Mr Vickrem Naicker Australian Stock Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

By Facsimile: (08) 9221 2020

Terms and Conditions of Options on Issue

Dear Vickrem.

Please find attached the full terms and conditions of all the options on issue.

• 1) 20 cent options excreisable on or before 28 March 2007;
• 2) 30 cent options exercisable on or before 28 March 2008; and
• 3) 30 cent options exercisable on or before 30 April 2008.

Yours sincer Kent Hunt

⊄ompan∲ Secretary

428.JUN.2005\$)11:13) NATURES PE

Terms and conditions of options on issue

The terms and conditions of the 28 March 2007 options on issue are as follows:

• a. each option entitles the holder, when exercised, to one Share.
• b. the options are exercisable on or before 5pm (WST) on 28 March 2007 by completing an option exercise form and delivering it together with the payment for the number of Shares in respect of which the Options are exercised to the registered office of the
• c. the option exercise price is \$0.20 per Option;
• d. an option does not confer the right to a change in exercise price or a change in the number of underlying securities over which the option can be exercised.
• e. subject to the Corporations Act, the ASX Listing Rules and the Company's Constitution, the options are freely transferable.
• all Shares issued upon exercise of the options will rank pari passu in all respects with $\mathcal{L}$ Graynic Metals's issued Shares. Graynic Metals will apply for official quotation by ASX of all Shares issued upon exercise of the options.
• there are no participating rights or entitlements inherent in the options and the holders g., will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the options. However, the record date for determining entitlements to any such issue will be determined in accordance with the ASX Listing Rules. This will give option holders the opportunity to exercise their options prior to the date for determining entitlements to participate in any such issue.
• h. If at any time the issued capital of the Company is reconstructed, all rights of an option holder are to be changed in a manner consistent with the ASX Listing Rules.

All Arts Cards

• If there is a bonus issue to shareholders, the number of shares over which the Option i. is exercisable may be increased by the number of shares which the holder of the Option would have received if the Option had been exercised before the record date for the bonus issue,
• in the event that a pro rata issue (except a bonus issue) is made to the holders of the underlying securities in the Company, the exercise price of the Options may be reduced in accordance with Listing Rule 6,22.

408.JUN.2005∭11:13) $\mathbf{Y}\mathbf{A}\mathbf{\Lambda}$ as $\times$ PERT

NO. 128

Terms and conditions of options on issue

The terms and conditions of the 28 March 2008 options on issue are as follows:

• a. each option entitles the holder, when exercised, to one Share.
• b. the options are exercisable on or before 5pm (WST) on 28 March 2008 by completing an option exercise form and delivering it together with the payment for the number of Shares in respect of which the Options are exercised to the registered office of the
• c. the option exercise price is \$0.30 per Option;
• d. an option does not confer the right to a change in exercise price or a change in the number of underlying securities over which the option can be exercised.
• e. subject to the Corporations Act, the ASX Listing Rules and the Company's Constitution, the options are freely transferable.
• f. all Shares issued upon exercise of the options will rank pari passu in all respects with Graynic Metals's issued Shares. Graynic Metals will apply for official quotation by ASX of all Shares issued upon exercise of the options.
• g. there are no participating rights or entitlements inherent in the options and the holders will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the options. However, the record date for determining entitlements to any such issue will be determined in accordance with the ASX Listing Rules. This will give option holders the apportunity to exercise their options prior to the date for determining entitlements to participate in any such issue.
• h. if at any time the issued capital of the Company is reconstructed, all rights of an option holder are to be changed in a manner consistent with the ASX Listing Rules.
• If there is a bonus issue to shareholders, the number of shares over which the Option i. is exercisable may be increased by the number of shares which the holder of the Option would have received if the Option had been exercised before the record date for the bonus issue.
• j in the event that a pro rata issue (except a bonus issue) is made to the holders of the underlying securities in the Company, the exercise price of the Options may be reduced in accordance with Listing Rule 6.22.

$428.$ JUN. 2005 $\downarrow$ 11:14 MA ASX PER

NO. 128

Terms and conditions of options on issue

The terms and conditions of the 30 April 2008 options on issue are as follows:

• a. each option entitles the holder, when exercised, to one Share.
• b. the options are exercisable on or before 5pm (WST) on 30 April 2008 by completing an option exercise form and delivering it together with the payment for the number of Shares in respect of which the Options are exercised to the registered office of the
• c. the option exercise price is \$0.30 per Option;
• d. an option does not confer the right to a change in exercise price or a change in the number of underlying securities over which the option can be exercised.
• e. subject to the Corporations Act, the ASX Listing Rules and the Company's Constitution, the options are freely transferable.
• f. all Shares issued upon exercise of the options will rank parl passu in all respects with Graynic Metals's issued Shares. Graynic Metals will apply for official quotation by ASX of all Shares issued upon exercise of the options.
• g. there are no participating rights or entitlements inherent in the options and the holders will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the options. However, the record date for determining entitlements to any such issue will be determined in accordance with the ASX Listing Rules. This will give option holders the opportunity to exercise their options prior to the date for determining entitlements to participate in any such issue.
• h. if at any time the issued capital of the Company is reconstructed, all rights of an option holder are to be changed in a manner consistent with the ASX Listing Rules.
• i. If there is a bonus issue to shareholders, the number of shares over which the Option is exercisable may be increased by the number of shares which the holder of the Option would have received if the Option had been exercised before the record date for the bonus issue.
• j. in the event that a pro rata issue (except a bonus issue) is made to the holders of the underlying securities in the Company, the exercise price of the Options may be reduced in accordance with Listing Rule 6.22.