CORAZON MINING LIMITED — Capital/Financing Update 2011

Jul 25, 2011

26 July 2011

ASX ANNOUNCEMENT

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The Manager Company’s Announcements Australian Securities Exchange

Corazon Mining Limited ASX : CZN

Geophysics commences at Lynn Lake Nickel Sulphide Project

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

Highlights

• Two deep drill holes have been completed as platforms for down-hole geophysics and wedge drilling:-

Capital Structure

101.86 M ordinary shares 66.57 M options

MCap ~A$16.3 M (@ 16 cps)

• Hole XND001W1 drilled to 1,205m; and

• Hole CRZ010 to a depth of 850m.

• Geophysical contractors are on site and have commenced down-hole EM.

• Down-hole geophysics is expected to be completed within a week, with targeted follow-up drilling proposed to commence immediately following.

• Shallower drill holes at the EL deposit may also be tested to identify additional sulphide exploration targets within the current inferred resource at the deposit.

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Corazon Mining Limited (ASX: CZN ) (“Corazon” or “the Company”) wishes to provide the following up-date on exploration activities at its high-grade nickel/copper discovery at the Lynn Lake nickel sulphide project in Canada.

The Company recently announced the discovery of high-grade, semi-massive nickel/copper mineralisation below the EL Mine at Lynn Lake (refer to announcements dated 8[th] and 28[th] June, 2011).

Corazons’ current exploration is focused on better defining the size and potential of the sulphide breccia mineralisation at this new discovery. This strategy involves the use of electromagnetic geophysics (EM) within deep drill holes recently completed at the EL Deposit. EM has historically been effective in defining the strong nickelcopper-cobalt sulphide mineralisation typical of the Lynn Lake deposits.

Board of Directors

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

Two holes have been drilled down-dip, parallel to the mineralised mafic/ultramafic intrusive plug. The EM program is proposed to identify zones of massive sulphide, not intersected by the drill program, within the favourable ultramafic component of the intrusive plug.

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The drill holes to be utilised to test depth extensions to high-grade sulphide mineralisation, include;

• XND001W1, completed to 1,205 metres, ending outside the mafic/ultramafic plug, within surrounding sediments. This hole intersected part of the target breccia and returned:-

o 23.75m @ 3.34% Ni, 1.54% Cu & 0.079% Co from 731.25 m

Including

 13.0m @ 4.27% Ni, 0.89% Cu & 0.099% Co from 732 m  2.46m @ 3.80% Ni, 0.34% Cu & 0.089% Co from 751.94 m

• CRZ010 , completed to a depth of 850 metres within the mafic/ultramafic host rock. The possible extension of this hole is dependent on the results of the down-hole EM survey.

These two drill holes are within 50 metres of each other and should provide a very detailed geophysical image of the sulphide mineralisation.

The geophysical EM survey has commenced, and is expected that it will be completed in by the end of July. Drilling of targets defined by the EM will commence within a week of completing the EM.

Corazon also proposes to test shallower drill holes beneath the historical workings (approximately 200m deep) within the EL deposit at Lynn Lake. This work may highlight additional sulphide exploration targets within the zone encompassing the current inferred resource.

About the Lynn Lake Project

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.

Corazon is the largest land holder in the Lynn Lake Camp, and in addition to the EL Mine, the project area containing several drill defined base metal deposits and numerous un-tested geophysical anomalies.

The area 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 refineries approximately 250km to the south.

The EL Nickel-Copper Sulphide Mine

The EL Mine was the highest grade deposit at Lynn Lake and produced 1.9Mt @ 2.5% nickel and 1.15% copper (combined metal of approximately 3% nickel equivalent [(1)] ). The EL Mine mineralised host rocks are a defined geological unit with good predictability down plunge. Mining was conducted to a depth of 210

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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metres below surface, with development to 270 metres and drilling defined mineralisation to a depth of at least 900 metres (from recent drilling by CZN). Mining at adjacent deposits has shown that mineralisation extended to more than 1,100 metres below surface.

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 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.

Nickel Equivalent [(1)]

Ni% Equiv (1) = Nickel equivalent has been estimated within the Resource Block Model and in other instances using the formula:-

Ni% Equiv = Ni%+(Cu% x (3/8.75))+(Co% x (18/8.75)) where Ni = 8.75$ US/lb Cu = 3.00 $US/lb Co = 18.00 $US/lb

Nickel equivalent grades are provided as an indicator of value in a multi-metallic deposit. Lynn Lake has a long history as a nickel, copper and cobalt mining camp. It is the Company’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au