CORAZON MINING LIMITED — Capital/Financing Update 2006

Aug 17, 2006

Level 2, 22 Oxford Close WEST LEEDERVILLE WA 6872 T: +61 8 9381 1436 F: +61 8 9381 1068 PO Bos 1681 WEST PERTH WA 6872 www.graysicmerals.com.au

ASX Release

18 August 2006

Private Placement to Raise \$1.1 million

The directors of Graynic Metals Limited (ASX code: GYN) are pleased to announce that the Company has arranged a private placement to raise gross proceeds of up to A\$1.1 million through the issue of approximately 3,235,294 ordinary fully paid shares in the capital of the Company at a price of A\$0.34.

Argonaut Securities Limited, Patersons Securities Ltd and Melbourne based securities firm Cygnet Capital Limited will act as joint managers to the placement. The new shares will be issued pursuant to the "excluded offer" provisions (Section 708) of the Corporations Act. Settlement of the placement is expected to be on or about 23 August 2006.

Ron Thom Managing Director Graynic Metals Limited