CORAZON MINING LIMITED — Capital/Financing Update 2009

Jul 9, 2009

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ASX Release

10 July 2009

Graynic Completes Joint Venture for Central American Nickel Assets

Key Points

• Joint Venture Agreement completed for Nichromet’s Nickel Assets in Guatemala

• Provides Graynic with the largest Ni laterite tenure in Guatemala (~2,200km[2 ] )

• Portfolio comprises suite of potential major nickel assets

• Advanced exploration targets ‐ potential for resource definition within 12 months

• Exploration Targets of 70‐140Mt @ 1.2‐1.5% Ni and 15‐40Mt @ 1.2‐1.7% Ni established for two main project areas

• Strong pipeline of additional exploration and development opportunities

• Agreement provides access to Nichromet’s innovative processing technology

Australian exploration company Graynic Metals Limited (ASX: GYN ) (Graynic) is pleased to announce that it has completed the Joint Venture Agreement with the private Canadian company, Nichromet Extraction Inc. (Nichromet), for an extensive portfolio of advanced nickel laterite exploration projects located in Guatemala, Central America .

Graynic can earn up to a 75% interest in the project portfolio through staged exploration expenditure – thereby securing a significant strategic position within a Tier One[1] terrain. The Joint Venture, which has been executed as per the binding term sheet executed between the parties on 3 March 2009, provides Graynic with the largest nickel laterite tenure in Guatemala (2,200km[2] ).

The Joint Venture covers Nichromet’s Guatemalan assets in the Izabal and Baja Verapaz regions which comprise a number of granted tenements and tenements in application. Both regions are highly prospective and include the advanced Rio Negro and Santa Anita exploration projects.

The two main project areas, Izabal and Baja Verapaz, have excellent potential to define a resource within a 12 month period. An Exploration Target of approximately 70 to 140 million tonnes @ 1.2 to 1.5% Ni is expected for the Izabal region, whilst the Rio Negro project has a target of 15 to 40 million tonnes at 1.2 to 1.7 % Ni in the Baja Verapaz region ( see note[2] below in relation to Exploration Targets ).

1 Tier One is defined as greater than 100Mt @ 1.2% Ni

2 Exploration Target Note: In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. The current interpretation remains preliminary and is based on surface indicators, geological modeling and available drilling information.

Level 1 PO Box 935 350 Hay Street West Perth WA 6872 Subiaco 6008 T: +61 8 6364 0518 Perth, Western Australia F: + 61 8 6210 1872 admin@graynicmetals.com.au www.graynicmetals.com.au

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Prior to December 2008 Nichromet was in joint venture with the global mining major Vale on these projects, where Vale had spent US$6.4M over 2.5 years in exploration activity, including field reconnaissance, hand auger testing of various prospects and drilling. Vale has now withdrawn from the project and has no residual ownership of these projects.

As part of the transaction Graynic will assume management responsibility for the projects, and will retain access to the staff that had been employed by both Vale and Nichromet in country to handle technical, administrative, government and community matters.

“Collectively these projects represent a suite of major nickel assets that deliver numerous exploration and development opportunities within a Tier 1 terrain,” said Graynic’s Managing Director, Bronwyn Barnes.

“We are very pleased to have finalised this Joint Venture Agreement, which provides the Company with a significant strategic position in Central America and secures an opportunity which is consistent with the Company’s strategic plan to target Tier 1 nickel laterite projects at a mid‐to‐advanced stage of exploration in regions that have had historical barriers to entry,” she said.

“We are continuing to assess other potential project opportunities in the region in line with our strategy and we look forward to providing further information in the months ahead,” she added. “

Graynic is continuing to work with Nichromet on a joint venture agreement for the Cajalbana Nickel Project in Cuba that Nichromet holds in joint venture with the Cuban Government and will provide further information on this in due course.

Further information on Graynic’s nickel strategy can be found in the company’s corporate presentation on Graynic’s website www.graynicmetals.com.au

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Joint Venture Agreement Details

The Joint Venture Agreement provides for Graynic to earn a 50% interest in Nichromet’s projects in Guatemala through exploration expenditure of up to US$2.4 million within 36 months. This will include a one off payment on signing of the Joint Venture Agreement to Nichromet of US$150,000. Graynic can then elect to spend up to a further US$4 million within a 36 month period to earn an additional 25% interest in Nichromet‘s Guatemala projects, bringing Graynic’s ownership level to 75%. It is envisaged that this stage would include the completion of a pre‐feasibility study for one of the projects.

Once Graynic achieves 75% ownership, Nichromet will be responsible for funding its respective ownership position of 25%. If Graynic elects not to move to a 75% ownership position then Nichromet and Graynic will remain joint 50% owners of the projects and each party will be responsible for funding their respective ownership positions.

In addition, Nichromet has granted Graynic an option for a licence for its Oxide Process Technology for the project areas the subject of the agreement. The Nichromet Oxide Process Technology has been successfully applied to Nichromet’s pilot plant in Canada, with testing of nickel laterite ores from Cuba, Dominican Republic, Guatemala, and the Philippines producing nickel and cobalt recoveries generally in excess of 90%. Further information on the Nichromet Oxide Process Technology can be found at www.nichromet.com

Further information on the projects can be found in the Background Section attached.

Enquiries: Bronwyn Barnes Managing Director 08 6364 0518 0417 093 256 bronwyn@graynicmetals.com.au www.graynicmetals.com.au

Nicholas Read Read Corporate 08 9388 1474

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Background Section

1. Izabal 2. Baja Verapaz 3. Guatemala ‐ Country Background

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Izabal Region

The Izabal region is the main nickel laterite province in Guatemala and has a history of hosting production from nickel laterites, with the Eximbal plant operating from 1977 – 1981 with annual production of 20,000 tonnes of nickel.

HudBay Minerals Inc is the current owner of the Eximbal plant and the Fenix Nickel Project (228Mt @ 1.38% Ni) and has recently completed a feasibility study to re‐start operations at Fenix. BHP Billiton has until recently also held the Sechol project (22.5Mt @ 1.6% Ni), with Anfield Ventures Inc acquiring Sechol from BHP Billiton in April 2009.

Graynic’s Izabal projects have over 100 sq km of highly prospective surface area with the potential for a second Tier 1 deposit in Guatemala. Some tenements within this area are currently under application pending resolution of environmental classification of the tenements involved. The Izabal region has multiple target opportunities and Graynic is exploring for a world class (>100 million tonnes) target.

Santa Anita

In the east of the Izabal region the Santa Anita project is on a gentle to moderate slope off the plateau edge. Inco drilled the prospect in the 1960s with 250m to 500m, and in some places 250m by 250m spaced holes. Thirty percent of the holes drilled have not penetrated the entire profile, leaving the mineralisation open at depth over a significant area. Graynic estimates an exploration target of 10 to 20 Mt @ 1.2‐1.5%Ni, which forms part of the greater project target of 70 – 140Mt @ 1.2‐1.5% Ni.

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Izabal
Baja Verapaz
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Other Projects

A number of other tenements hold potential within the Izabal region. Mineralisation has been identified at El Bongo, Finca Santa Cruz and Secocco prospects. Further work will be conducted in these areas to establish the potential for mineral resources.

Baja Verapaz Region

Rio Negro

The Rio Negro project in Baja Verapaz has sample pits at 200 to 300m spacing which have defined a relatively thick mineralised zone. The mineralisation is situated on a topographic high along moderately sloping ridges. There appears excellent potential to define a reportable Mineral Resource during the first 12 months of exploration.

Extension of the lateritized terrain away from the main project area offers some opportunity for additional mineralisation, although only reconnaissance has been completed to date. Until the required drilling has been completed the potential size remains conceptual and uncertain however Rio Negro has an exploration potential of 15‐40Mt @ 1.2‐1.7% Ni. Rio Negro is currently under application. Graynic has received confirmation from the Guatemalan Mining General Director that the tenement has completed all administrative requirements and is in the final stages of the review process in order to be granted.

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Cerro El Canero

Forty kilometers to the east of Rio Negro, lateritized ultramafics (nickel laterite host rocks) are coincident with a similar topographic high. Although this area has yet to be drilled, mapping of the plateau show lateritized ultramafics rocks analogous to Rio Negro.

The potential quantity and grade of these targets is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

– Nichromet Oxide Process Technology Background

Nichromet has built a pilot plant located in Thetford Mines, Canada which has tested laterite ores from Cuba, the Dominican Republic, Guatemala and the Philippines. Results of the pilot testing on these ores have been independently verified by external engineering firms. Recoveries of nickel and cobalt generally exceed 90%.

The Nichromet process produces fertilizers as a by‐product of the nickel being extracted resulting in a high value by‐product which significantly reduces the cost of production per pound of nickel. Under the terms of the Joint Venture Agreement with Graynic, Nichromet Extractions Inc. has granted the Joint Venture an option for a license for its metallurgical process for the existing project areas the subject of the agreement.

Guatemala ‐ Background

Guatemala has a limited history of mining, but it does have significant nickel laterite deposits in the Lake Izabal region. In 2004, Skye Resources Inc. acquired Inco Ltd.’s (Canada) 70% share of Exmibal and renamed the property the Fenix Nickel Project. In 2005, Skye increased its share in Compañía Guatemalteca de Níquel S.A. (formerly Exmibal) to 90.9%. In June 2008 HudBay Minerals agreed to buy Skye Resources Inc. to gain control of the smaller company's Fenix Nickel Project.

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Anfield Ventures Inc (Canada) has recently purchased the Sechol Project from BHP Billiton. Reports of any exploration or development efforts on the Sechol project are not available after BHP Billiton completed its acquisition of the Sechol project through its acquisition of Jaguar Nickel Inc in January 2006. Historically reported information on the Sechol project indicated approximately 22.5 million tonnes @ 1.2% Ni. Both the Sechol and Fenix projects are located in the same region as the Nichromet’s Guatemalan projects.

Competent Persons Statement

The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves was compiled by Mr. Mark Fletcher, who is a member of the Australian Institute of Geoscientists. Mr. Fletcher has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Mark Fletcher, who is a full‐time employee of Graynic Metals Ltd, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration Targets ‐ Graynic has defined exploration targets at various stages of exploration in both the Baja Verapaz and Izabal regions, including a range of potential tonnes and grade of the nickel bearing material. In relation to all references to exploration targets in this announcement the potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Publicly available information on the quantity and grade from the Fenix (HudBay Resources; ) and Sechol (Anfield Ventures) Guatemalan projects have been used to assist in determining these target estimates as they are similar in nature and proximal in location. Specific information used to determine the target ranges include the areas geologically mapped, and supported by aeromagnetic data, as lateritized ultramafic rocks and are situated on elevated plateaus with optimal slopes of between 3 and 20 degrees. Drilling information, including the grade and thickness and surface aerial extent of mineralised intersections, provided greater detail.

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