CORAZON MINING LIMITED — Capital/Financing Update 2011

Jun 7, 2011

ASX ANNOUNCEMENT

8 June 2011

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The Manager Company’s Announcements Australian Securities Exchange

High-Grade Nickel/Copper Discovery

Highlights

• Assays results have confirmed a high-grade Nickel/Copper sulphide discovery beneath the EL Mine at the Lynn Lake Project in Canada

• Better results include:-

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

Including

• 13m @ 4.27% Ni, 0.89% Cu & 0.099% Co from 732 m

• 70 metres of additional stringer/matrix sulphide mineralisation marginal to the sulphide breccia

• True width yet to be defined - previously mined breccia (near surface) has a diameter of 80-120 metres

• Drilling continuing to a planned to depth of 1,250m

• Additional results from stringer/matrix and disseminated mineralisation due this month

• Downhole geophysics planned for mid July, with additional drilling to continue subsequent to results.

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Figure 1 – XND001W1 drill core photo - semi-massive sulphide breccia mineralisation 731.25m – 742.69m

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

ASX ANNOUNCEMENT

8 June 2011

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Australian exploration company Corazon Mining Limited (ASX: CZN ) (“Corazon” or “the Company”) is pleased to announce initial assay results from hole XND001W1 currently being drilled at the EL Deposit, within the Lynn Lake nickel sulphide project in Canada.

The Company announced in May (see ASX announcement 24 May) that hole XND001W1 had intersected approximately 23 metres of semi-massive sulphide breccia from 731.25 metres downhole. The assay results confirm the existence of a high-grade nickel/copper sulphide discovery at the Lynn Lake Project. Full assay results are presented in the table attached and are summarized as:-

Corazon Mining Limited ASX : CZN

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

Capital Structure

101.86 M ordinary shares 66.57 M options

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

MCap ~A$20.4 M (@ 20 cps)

Including

Board of Directors

• 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

This is a significant discovery and may represent a breccia body similar to the high grade nickel/copper/cobalt sulphide mineralisation mined at surface within the EL mafic/ultramafic pipe (Figure 1). The EL Mine was the highest grade deposit in the Lynn Lake district, producing 1.9Mt @ 2.5% nickel and 1.15% copper until it closed in 1976.

The reported intercept does not represent a true width for the mineralisation . At this stage the orientation of the mineralisation is uncertain, although the drilling is interpreted to have ‘glanced’ the margin of the breccia. Analogous mineralisation outcropped at surface and was mined to 210 metres depth at a consistent diameter of between 80 and 120 metres, pertaining to the ultramafic core of the intrusion.

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

The drill hole intersected the fault-bounded top of the breccia, and with depth is trending away from the ultramafic core of the intrusion. As expected the mineralisation has changed from massive/semi-massive to matrix/stringer and then disseminated sulphides. Approximately 70 metres of matrix/stringer sulphide mineralisation and 30 metres of disseminated sulphide mineralisation has been intersected. The average assay results for the first 12 metres of the matrix/stinger mineralisation is stated below with individual grades provided in the table attached.

Brett Smith Ph: +61 (8) 6364 0518

James Moses Media & Investor Relations Ph: +61 (0) 420 991 574

o 12m @ 0.52% Ni, 0.28% Cu & 0.017% Co from 755 m

Several zones of plus 0.6% nickel are evident and expected in the core yet to be assayed.

ASX ANNOUNCEMENT

8 June 2011

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Drilling is currently at a depth of approximately 1,000 metres and will continue to 1,250 metres to test for further mineralisation and to provide a platform for downhole electromagnetic (EM) geophysics. This is scheduled to begin in July. EM is proposed to identify potential massive sulphide zones not intersected by the drilling but within the ultramafic pipe.

Hole XND001W1 is a wedge off hole XND001 at approximately 500 metres. XND001 was abandoned at 767 metres following equipment failure. The precise location of the intercepts in these holes will be determined once downhole surveys have been received.

XND001 intersected several small zones of semi massive sulphide, now interpreted to be the edge of the zone hit in XND001W1. Results are summarized as:-

o 23.53m @ 1.46% Ni, 0.54% Cu & 0.036% Co from 718.47 m

Including

• 3.53m @ 2.61% Ni, 0.41% Cu & 0.066% Co from 718.47 m

• 4.00m @ 3.51% Ni, 0.74% Cu & 0.080% Co from 728.00 m

Going Forward

The Company is progressing exploration of the EL Deposit as a priority. Immediate proposed activities include:-

• Continue drilling XND001W1 to 1,250 metres (June);

• Conduct downhole EM (geophysics) to target additional massive sulphide mineralisation within the EL Pipe (July);

• Drill test generated targets (July onwards); and

• Define orientation and limits of mineralised zone for ongoing exploration and resource definition.

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

ASX ANNOUNCEMENT

8 June 2011

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

8 June 2011

ASX ANNOUNCEMENT

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Depth From (m)	Depth To (m)	Interval (m)	Interval (m)	Ni%	Cu%	Co%
729.00	730.00		1.00	0.03	0.04	0.007
730.00	731.25		1.25	0.07	0.08	0.006
731.25	732.00		0.75	2.37	3.36	0.078
732.00	733.00		1.00	3.86	0.95	0.096
733.00	734.09		1.09	5.64	1.13	0.130
734.09	734.50		0.41	0.40	0.28	0.011
734.50	735.00		0.50	6.83	0.30	0.156
735.00	736.00		1.00	2.54	3.87	0.058
736.00	737.00		1.00	2.65	1.07	0.066
737.00	738.00		1.00	5.09	0.46	0.114
738.00	739.00		1.00	4.12	1.37	0.097
739.00	740.00		1.00	5.42	0.65	0.117
740.00	741.00		1.00	5.15	0.41	0.117
741.00	742.00		1.00	3.56	0.47	0.086
742.00	743.00		1.00	4.70	0.08	0.106
743.00	744.00		1.00	3.72	0.41	0.087
744.00	745.00		1.00	4.93	0.32	0.125
745.00	746.00		1.00	1.30	2.77	0.034
746.00	747.00		1.00	1.31	3.08	0.031
747.00	748.00		1.00	0.80	12.40	0.023
748.00	749.00		1.00	2.54	1.75	0.061
749.00	750.00		1.00	1.68	0.77	0.042
750.00	751.00		1.00	2.38	0.49	0.059
751.00	751.64		0.64	1.83	0.37	0.043
751.64	751.94		0.30		Core Loss *
751.94	752.52		0.58	6.12	0.11	0.141
752.52	753.00		0.48	2.20	0.42	0.052
753.00	753.75		0.75	2.18	0.45	0.055
753.75	754.40		0.65	4.78	0.37	0.111
754.40	755.00		0.60	1.12	0.43	0.029
755.00	756.00		1.00	0.63	0.37	0.018
756.00	757.00		1.00	0.34	0.25	0.011
757.00	758.00		1.00	0.66	0.20	0.020
758.00	759.00		1.00	0.67	0.24	0.020
759.00	760.00		1.00	0.61	0.40	0.019
760.00	761.00		1.00	0.73	0.24	0.022
761.00	762.00		1.00	0.77	0.47	0.024
762.00	763.00		1.00	0.19	0.10	0.008
763.00	764.00		1.00	0.44	0.47	0.015
764.00	765.00		1.00	0.42	0.19	0.015
765.00	766.00		1.00	0.29	0.15	0.011
766.00	767.00		1.00	0.47	0.33	0.016

Table 1:- Assay results XND001W1. (* Core loss – Interval not included in weighted average grades)

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

8 June 2011

ASX ANNOUNCEMENT

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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, at an average grade of 1% nickel and 0.5% copper. 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 metres below surface, with development to 270 metres and drilling defined mineralisation to a depth of at least 600 metres.

Mining at adjacent deposits has shown that mineralisation extended to more than 1,100 metres below surface.

Metal recoveries for nickel, copper and cobalt are historically very good and averaging above 85-90%.

Prior to the discovery of this new breccia zone below the EL Mine, Corazon had defined an Exploration Target[(2)] for the EL Mine of between 3.5Mt and 4.6Mt, which includes an interim Inferred Resource. The target has grade ranges of between 0.8% and 1.45% nickel, 0.4 and 0.7% copper, along with 0.01% and 0.03% cobalt. At these grade ranges, the contained metal for this Exploration Target[(2)] equates to between 28,100t & 66,000t nickel, 14,000t & 31,400t copper and 770t to 1,730t cobalt.

This Exploration Target[(2)] is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

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

8 June 2011

ASX ANNOUNCEMENT

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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.

Analytical Method

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 metals 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.

(1)

Nickel Equivalent

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.

Exploration Target [(2)]

This exploration target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The basis for this target includes:-

• Historical mining at the deposit to a depth of 210 metres below surface

• Historical mine development to at least 270 metres below surface

• Exploration drilling to a depth of approximately 600 metres below surface

• An inferred resource has been calculated to approximately 600 metres below surface

• Good continuity and predictability of geology down-plunge

• Geological evidence for a deep-seated, explosive mineralising event.

Past exploration and mining records for the EL Mine are extensive and reflects high standards of work.

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