CORAZON MINING LIMITED — Capital/Financing Update 2010

Jan 28, 2010

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29 January 2010

Dear Shareholder,

NOTICE TO SHAREHOLDERS OF NON-RENOUNCEABLE RIGHTS ISSUE

We are writing to you in relation to your shareholding in Graynic Metals Limited ( Company ).

On 27 January 2010, the Company announced to ASX a pro-rata non-renounceable rights issue of approximately 27,742,708 options to acquire fully paid ordinary shares in the Company ( Options ) on the basis of one (1) new Option for every two (2) shares held by shareholders on the record date at an issue price of $0.005 per Option, to raise approximately $138,714 ( Rights Issue ). The Options are exercisable at $0.20 each on or before 30 April 2013.

In conjunction with the Rights Issue, the Company will, subject to shareholder approval at an upcoming general meeting, undertake a placement of up to 20,000,000 Options at $0.005 each to sophisticated and institutional investors ( Placement ). The Options to be issued under the Placement will be equivalent in all respects with those offered to shareholders under the Rights Issue.

The Company will apply for official quotation of the Options issued under the Rights Issue and the Placement on ASX.

The Company has lodged a Prospectus in relation to the Rights Issue with the ASX and this document will be dispatched to shareholders of the Company on 9 February 2010. The Prospectus will outline the terms of the Rights Issue in detail and is currently available for viewing on the announcements page of the ASX website (www.asx.com.au).

The Rights Issue will proceed in accordance with the following timetable:

Event	Date
Lodgement of Prospectus with the ASIC	27 January 2010
Announcement of Rights Issue and lodgement of Appendix 3B	27 January 2010
Notice sent to shareholders	29 January 2010
Ex date	1 February 2010
Record date for determining shareholder entitlements	5 February 2010
Prospectus despatched to shareholders and opening date of Rights Issue	9 February 2010
Closing date of Rights Issue*	26 February 2010
Securities quoted on a deferred settlement basis**	1 March 2010
Notify ASX of under-subscriptions**	3 March 2010
Despatch of holding statements and Options entered into shareholders’ security holdings**	9 March 2010

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

• Subject to the ASX Listing Rules, the directors reserve the right to extend the closing date for the Rights Issue at their discretion. Should this occur, the extension will have a consequential effect on the anticipated date of issue of the new Options.

** These dates are indicative only.

The capital structure of the Company on completion of the Rights Issue shall be as follows:

Shares	Number
Shares on issue at date of Prospectus	55,485,415
Total Shares on issue after completion of the Rights Issue	55,485,415
Options	Number
Options on issue at date of Prospectus	Nil
Options offered pursuant to the Rights Issue	27,742,708
Options offered pursuant to the Placement	20,000,000
Total Options on issue after completion of the Rights Issue and the Placement	47,742,708

The Company has engaged Indian Ocean Capital to act as lead manager in relation to the Rights Issue and the Placement.

The Rights Issue will raise approximately $138,714 before costs (assuming the Rights Issue is fully subscribed or that any shortfall is placed). It is intended that these funds will be used for general working capital purposes.

Should you have any queries in relation to the Rights Issue, please do not hesitate to contact the Company on (08) 6364 0518.

Yours sincerely

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Adrian Byass Managing Director Graynic Metals Limited

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