CORAZON MINING LIMITED — Capital/Financing Update 2011

Oct 12, 2011

ASX ANNOUNCEMENT

13 October 2011

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The Manager - Company’s Announcements Australian Securities Exchange

Further high-grade sulphides intersected at Lynn Lake

Corazon Mining Limited ASX : CZN

“An Australian company ... developing nickel sulphides in Canada.”

Highlights

Capital Structure

• Drilling at Lynn Lake continues to define strong nickel-copper-cobalt sulphides

• Current hole has intersected approximately 26 metres of matrix to semimassive sulphide mineralisation

101.89 M ordinary shares 66.54 M options

MCap ~A$14.3M (@ 14 cps)

Board of Directors

• First assay results expected early November

• Hole lies parallel to, and follows up on, discovery intercept of 23.75m @ 3.34% Ni, 1.54% Cu & 0.079%

• Drilling to date has only tested close to the northern fault-bounded top of the mineralised system and defines only a small portion of the targeted EM conductor

• An additional hole testing of the conductor has commenced, targeting areas further away from the contact fault, within the host ultramafic rock

• Holes drilled last month on the margin of the EM conductor have returned high grade results related to the upper contact fault:-

• CRZ011A 2.23m @ 3.84% Ni, 0.41% Cu & 0.092% Co from 715.25m

• CRZ011AW1 1.42m @ 3.99% Ni, 0.36% Cu & 0.027% Co from 724m

Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”) is pleased to announce that further strong nickel/copper sulphide mineralisation has been intersected in the ongoing drilling of geophysical (EM) conductors at its EL Deposit within the Lynn Lake nickel sulphide project in Canada.

Clive Jones Non-Executive Chairman

Brett Smith Managing Director

Jonathan Downes Non-Executive Director

Adrian Byass Non-Executive Director

Rob Orr Company Secretary

Contact Us

www.corazon.com.au

Brett Smith Ph: +61 (8) 6364 0518 James Moses Media & Investor Relations Ph: +61 (0) 420 991 574

Wedge hole XND001W2 has intersected approximately 26 metres of strong matrix to semi-massive sulphide style mineralisation from approximately 715 metres down hole, before grading into strongly disseminated sulphide mineralisation (lower grade material).

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There is good visual evidence of nickel and copper mineralisation, supported by the results of a hand-held XRF tool. Hole XND001W2 has paralleled the original wedge hole (XND001W1) which returned 23.75m @ 3.34% Ni, 1.54% Cu & 0.079% Co (announced 8 June, 2011) and helps define the northern extents of the conductor target.

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Figure 1 : Drill Core – Hole XND001W2 – depth in metres shown

The location of XND001W2 has yet to be accurately defined by survey, although it is expected to lie within 25 metres of XND001W1 (Figure 2) and provides sufficient support for the Company to plan an additional wedge hole, targeting deeper within the mineralised system (as defined by the EM conductors).

The mineralised zoned is currently being sampled and results are expected to be returned in early November.

To date five holes have been drilled into an EM conductor below the EL Mine. Whilst these holes have tested only a small portion of the target, all holes have intersected high-grade nickel-copper mineralisation.

Drilling supports the interpretation that the EM conductors recently defined are likely to represent substantial zones of high-grade nickel/copper sulphide. Two strong EM conductors have been identified, possibly defining the same mineralised zone and extending for at least 50-100 metres to the south and at depth, into un-tested areas.

Latest Drill Assay

Assay results for holes completed last month have now been returned. Massive sulphide intercepted in hole CRZ011A (announced 30 August, 2011) returned 2.23m @ 3.84% Ni, 0.41% Cu & 0.092% Co from 715.25m (additional results in Table 1). This intersection was immediately below the upper bounding fault to the mineralised breccia. High grade mineralisation on this fault appears a common feature, with hole CRZ011AW1 returning 1.42m @ 3.99% Ni, 0.36% Cu & 0.027% Co from 724m.

Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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----- Start of picture text -----

North
Mined Conceptual Geology
Exploration Drive 2,000 ft Level
X-section looking West
Fault 1.9 Mt @ 2.5 % Ni & 1.15 % Cu
Fault
Fault
Truncated Mineralisation
Surface Core
Sulphide Breccia Mafic Ultramafic
Intrusion
XND001W1
South
High-grade discovery nickel/copper breccia
North
Plan
awaiting assays
EM Conductor Plate Next Target approx location
XND001W2 approx location
EM geophysics
Effective range of
23.5m @ 1.50% Ni & 0.50% Cu 23.75 m @ 3.34% Ni & 1.54% Cu incl 13 m @ 4.27% Ni & 0.89% Cu 2.3m @ 3.84% Ni & 0.41% Cu 1.42m @ 3.99% Ni & 0.36% Cu 6.0m @ 1.89% Ni & 1.17% Cu 26m of strong sulphide–
Figure 2 - EL Deposit Interpreted Geology – Sulphide Breccia Target
High-Grade Discovery - Recent Drilling Results
CRZ011A
CRZ011AW1 XND001W1 XND001
XND001 XND001W1 CRZ011A CRZ011AW1 XND001W2
Historical drill holes X-section looking East
----- End of picture text -----

Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Hole Id	From (m)	Interval (m)	Ni %	Cu %	Co %
CRZ011A	470.00	8.00	0.70	0.44	0.020
Including	476.00	2.00	1.20	0.97	0.032
	663.00	6.00	1.02	0.61	0.029
Including	663.00	3.00	1.39	0.98	0.038
	709.00	10.00	1.16	0.31	0.029
Including	715.25	2.23	3.84	0.41	0.092
CRZ011AW1	654.51	5.49	0.76	0.41	0.023
Including	656.00	2.00	1.03	0.47	0.031
	724.00	1.42	3.99	0.36	0.027
	735.00	21.00	1.05	0.82	0.029
Including	739.00	6.00	1.89	1.17	0.048

Table 1 – Drill assays – intervals at plus 0.3% Ni inclusive of greater than 1m at plus 1%Ni

CRZ011A is interpreted to have intersected the fault bounded upper eastern edge of the EM conductor target. Hole CRZ011AW1 targeted between XND001W1 and CRZ011A in an area slightly away from the edge of the EM anomaly. This hole intersected the upper bounding fault at 724 metres and semi-massive to disseminated nickel and copper sulphides for the next 32.72 metres. Within this, two zones with strong sulphide exists, including 1.44 metres of semi-massive sulphide immediately below the bounding fault, and 6.00m of semi-massive and sulphide breccia from 739 metres.

Another hole completed (CRZ011AW2-W3) went off target due to driller error and malfunctioning survey equipment. It was decided to continue the hole as it would intersect an area untested by drilling, north of defined conductors. This strategy has been beneficial as the hole intersected approximately 80 metres of strong Type 1 (disseminated) mineralisation (refer to Company announcement dated 28 July 2011) from 820 metres to 906 metres (end of hole) and can be used as a platform for additional down-hole geophysical surveys.

It is significant that the results of Corazon’s drilling have returned some of the highest recorded nickel grades in the Lynn Lake mining camp . The predictability of the location of the mineralisation, coincident with the EM conductors, provides conclusive support that the EM anomalies recently defined represent semi-massive to massive sulphides, and hence high nickel and copper mineralisation.

Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Drilling of the conductor is continuing, with the commencement today of a hole that will test the conductor deeper and further to the south of drill holes XND001W1 and XND001W2.

Background

Corazon has an option to acquire 100% equity in the Lynn Lake Nickel Sulphide Project in the central Canadian province of Manitoba, which hosts the historic EL Nickel Mine. The Lynn Lake nickel camp is Canada’s third largest nickel mining region, which produced 22Mt of nickel/copper/cobalt ore between 1953 and 1976. There has been minimal exploration in the region since this time. The EL Mine was the highest grade mine in the district and produced 1.9Mt @ 2.5% nickel and 1.15% copper between 1954 and 1962. The deposit was mined to a depth of 210 metres whilst mining at adjacent deposits has shown that mineralisation extends to more than 1,100 metres below surface.

The Company announced the discovery of high-grade, semi-massive nickel/copper mineralisation below the EL Mine in June this year. Corazon’s’ current exploration is focused on better defining the size and potential of the sulphide breccia mineralisation at the new discovery. This strategy has involved the use of electromagnetic geophysics (EM) within drill holes recently completed at the EL Deposit. EM has historically been effective in defining the strong nickel-copper-cobalt sulphide mineralisation typical of the Lynn Lake deposits.

Corazon is the largest land holder in the Lynn Lake Camp, and in addition to the EL Mine, the project area contains several drill defined base metal deposits and numerous un-tested geophysical anomalies. The region is well serviced with mining infrastructure and support, offering rapid development potential. The Thompson Nickel Refinery is located only 320km from the project and is accessible by all weather roads. In addition there is rail access (currently under care and maintenance) to the Flin Flon zinc-copper concentrators approximately 250km to the south.

Ends

For further information visit www.corazon.com.au or contact:

Brett Smith James Moses Managing Director Media and Investor Relations Corazon Mining Limited Mandate Corporate Ph: +61 (8) 6461 6350 Mob: +61 420 991 574 E: james@mandatecorporate.com.au

Disclosure Statements and Important Information

Competent Person

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew John Thompson, B.Sc Hons(Geol), Member AusIMM an employee of Corazon Mining Limited. Mr Thompson has sufficient experience that 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

Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Thompson consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Assay results are obtained from ALS Mineral Services in Thunder Bay, Ontario, Canada. Samples are prepared using single stage pulverization of the entire sample. Base metal assays are obtained by 4 Acid digestion using ICP with either Atomic emission spectrometry (AES) or atomic absorption spectrometry (AAS) analysis techniques.

Full analytical quality assurance - quality control (QAQC) is achieved using a suite of certified standards, laboratory standards, laboratory duplicates, blanks and grind size analysis. Assays quoted in announcements may be of a preliminary nature.

Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au