CORAZON MINING LIMITED — Capital/Financing Update 2010

Mar 9, 2010

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10[th] March 2010

Australian Securities Exchange Limited Exchange Plaza 2 The Esplanade PERTH WA 6000

- Graynic Secures Lynn Lake Nickel Copper Sulphide Project

Graynic Metals Limited (ASX:GYN), which is to be renamed Xanadu Resources Limited (“the Company” “Xanadu”) in late March 2010 is pleased to announce that it has entered into an option agreement to acquire a 100% interest in the Lynn Lake nickel-copper sulphide project (Project) in Manitoba Canada, held by Manitoba Nickel Pty Ltd (Manitoba).

The Project consists of over 4,000 hectares of mineral licenses which contain a historic nickelcopper mine with mineralisation open at depth as well as advanced exploration prospects. Several small zinc-copper-lead and gold VMS style mineralized systems are also present on the property.

Key points

• The Lynn Lake district is historically Canada’s third largest nickel producing region.

• Over 22 million tonnes (Mt) of ore was mined grading 1.0% nickel and 0.5% copper within a 3km radius of the Project between 1953 and 1976,and 1.9Mt of ore grading 2.5% nickel and 1.15% copper was mined from within the Project at the EL Mine.

• The remaining mineralisation at the EL Mine is not JORC compliant, although an initial target resource based on underground and surface drilling of 1.8 – 2.0Mt grading 1.2% ‐ 1.4% nickel and 0.6%‐0.8% copper using a 0.5% nickel cutoff is estimated between the base of historic mining at 270m to 600m below surface. (Note: the target mineral inventory tonnage and grade is conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if future exploration will result in the determination of a Mineral Resource).

• Mineralisation extends several hundred metres below the base of historical mining at the EL Mine with mineralisation intersected below the 600m (depth below surface) that is +350m below the depth of historical mining. Intercepts include 34.7m @ 1.6% nickel and 0.4% copper .

• Mineralisation at the EL Mine is interpreted to extend up to 900m below surface based on current drilling and thought to be open at depth.

• Numerous immediately testable geophysical drill targets based on VTEM and IP surveys exist.

• The area is well serviced with mining infrastructure and support with the major Thomson nickel refinery located 320km away by sealed road.

• The Option Agreement is subject to due diligence and shareholder approval for Xanadu to acquire 100% interest in the Project for C$3 million in expenditure on exploration and development over 3 years followed by C$2million vendor payment, A$150,000 immediate payment and issue of 9 million shares and 8 million options with various hurdles over time in Xanadu.

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

Exploration and development plans

Subject to the option being exercised, Xanadu plans to evaluate the potential to develop and produce nickel from defined mineralisation at the EL Mine (Figure 1) and will also begin a multi stage programme of continued EM geophysics and drilling to test the numerous other nickel sulphide targets that exist in the project.

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Figure 1: EL Mine with interpreted mined area and target resource area shown.

The target resource has been identified using historical mine records and production figures from the 0 - 270m below surface level, drilling and geological modeling and is based on the immediate EL Mine project area to a depth of 600m below surface. Mineralisation is present below this level. There is no quoted JORC resource for the project and there is no certainty that one will be defined.

The target resource estimate is calculated using polygonal methods, a 0.5% nickel cutoff and incorporates historical resource estimated produced by Sherrit Gordon International (the mining company which mined the EL mine) in 1980 subsequent to mine closure.

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Terms of the agreement

Manitoba has an existing agreement with Mr P. Dunlop over the Project tenure at Lynn Lake (Dunlop Agreement) and Xanadu has agreed, subject to due diligence and shareholder approval, to assume Manitoba’s interest, acquiring the full rights and obligations of Manitoba through a second agreement between Manitoba and Xanadu (Manitoba Agreement). Should Xanadu proceed to earn a 100% interest in the project, a residual royalty of 2.5% NSR will remain with Mr Dunlop. Xanadu would have the ability to purchase half of this royalty, reducing it to 1.25% for C$ 1.25 million.

The existing agreement between Mr Dunlop and Manitoba allows Manitoba to earn a 100% interest in the project by;

• Spending C$ 3 million in exploration and development over 3 years,

• Maintaining a C$ 100,000 per annum option payment

• Paying the vendor a C$ 2 million payment upon completion of the C$ 3 million expenditure.

Xanadu is, subject to due diligence and shareholder approval, earning Manitoba’s rights in the project through assuming Manitoba’s obligations in respect to the Dunlop Agreement and the following payments are to be paid to Manitoba in three tranches; Tranche 1

• A$ 150,000 cash payment upon election to proceed past due diligence

• 4.5 million ordinary shares in Xanadu

• 3 million options over ordinary shares exercisable at A$ 0.07 with a 36 month duration,

Tranche 2 should Xanadu elect to continue after the second annual anniversary of Dunlop Agreement

• 5 million options over ordinary shares in Xanadu exercisable the lower of A$0.20 or the 30 day VWAP prior to 21 October 2011.

Tranche 3 (should Xanadu reach 100% ownership in the project)

• 4.5 million ordinary shares in Xanadu.

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Opportunity

Xanadu believes that this project offers excellent opportunity for the company to acquire an interest in a prolific and highly prospective nickel sulphide area. The company will target both the potential to resume production as well as exploration for further mineralisation amongst the numerous geophysical targets within the Project.

For further information contact Adrian Byass

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Managing Director T +618 6364 0518 abyass@graynicmetals.com.au

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr A Byass, B.Sc Hons(Geol), B.Econ, FSEG, MAIG an employee of Graynic Metals Limited. Mr Byass has sufficient experience that is relevant to the style of mineralisation 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 Byass consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Foreign Currency and metal prices as at 8[th] March 2010 A$ = Australian dollar (unless otherwise stated all figures in A$) C$ = Canadian dollar (FX approximately A$1.00 = C$0.94) US$ = United States of America dollar (FX approximately A$1.00 = US$0.90)

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