CORAZON MINING LIMITED — Capital/Financing Update 2011

Feb 24, 2011

ASX ANNOUNCEMENT

25 February 2011

==> picture [190 x 82] intentionally omitted <==

The Manager Company’s Announcements Australian Securities Exchange

Significant new anomaly discovered at Lynn Lake, Canada

Corazon Mining Limited ASX : CZN

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

Capital Structure

• Ground geophysical survey defines new drill target at the 150 Prospect

• Anomaly is a priority drill target, located just 1km southwest from the Company’s historic EL Nickel-Copper Sulphide Mine

• Anomaly never been tested by drilling. Historic drilling nearby intersected up to 1% nickel and 1% copper in rocks very similar to the EL Mine ore

• Top of anomaly just 60-100 metres below surface

• Drilling of the anomaly to commence within the week

• Additional sulphide mineralisation intersected in first hole into the EL Resource

Australian exploration company Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”) is pleased to announce that it has discovered a significant new geophysical anomaly at the Lynn Lake Nickel Sulphide Project in Canada.

85.86 M ordinary shares 58.07 M options

MCap ~A$7.85 M (@ 10 cps)

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

The new conductive/chargeable Induce Polarisation {IP} anomaly has been discovered at the 150 Prospect. IP is a geophysical method commonly used in the delineation of disseminated sulphide styles of mineralisation, typical of the Lynn Lake Mining Camp.

The 150 Prospect is situated approximately 1km southwest from the high-grade EL Mine, which historically has produced 1.9Mt @ 2.5% nickel and 1.15% copper (to a depth of 200 metres, see Figure 1.

www.corazon.com.au

Brett Smith Ph: +61 (8) 6364 0518

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

The top of the new anomaly comes in at about 60-100 metres below surface (Figure 2). At this depth, geophysical equipment (including IP tools) utilised in the 1950’s1970’s would have had difficulty in identifying an anomaly. Historical drilling at the 150 Prospect on shallow targets returned encouraging nickel and copper results of up to 1%, in variable rock types. The closest drill hole to this new anomaly reported lithologies similar to the ore zone host rocks at the EL Mine. Immediately to the west of this anomaly, VMS (volcanogenic massive sulphide) style of mineralisation (zinc and copper) has also been identified in drilling.

==> picture [568 x 89] intentionally omitted <==

The Company is delighted with the early positive results from it its recently commenced 2011 exploration program at the Lynn Lake project, and plans to commence drilling at the 150 Prospect within the next week.

==> picture [494 x 349] intentionally omitted <==

Figure 1:- Lynn Lake Nickel Sulphide Project – Prospect locations over a Google Earth Image.

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

==> picture [568 x 89] intentionally omitted <==

==> picture [493 x 346] intentionally omitted <==

Figure 2:- 150 Prospect IP Geophysical Anomaly - Profiles and Plan

Exploration Update

The Company commenced its 2011 exploration program at Lynn Lake in January. Drilling is underway, with the first hole completed. This hole targeted the EL Resource where a lack of previous drilling had constrained resource models. Strong sulphide mineralisation was intersected and it is expected the EL Resource will be up-graded subsequent to the return of results (in three or four weeks time).

The Company proposes to drill 5,000 metres of core drilling, targeting the EL Plug and other nickel-copper sulphide and VMS targets. The delineation of the geophysical anomaly at the 150 Prospect has elevated the ranking priority of this target. Drilling at Lynn Lake is expected to continue through until April this year.

Geophysical surveys have commenced. The IP crews have moved from the 150 Prospect to other areas within the project.

An aerial EM (VTEM) survey has been completed and is expected to be processed over the next two weeks. This survey will provide the Company with complete VTEM coverage over the project area. VTEM is a geophysical tool useful in the delineation of massive sulphide mineralisation, typical of the high-grade nickel-copper sulphide or VMS (zinc-copper-silver) mineralisation.

A project scale gravity survey is expected to commence in the next two weeks.

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

==> picture [135 x 59] intentionally omitted <==

Up-date on Capital Raising

On 25 January 2011, Corazon announced to eligible shareholders the opportunity to participate in a Shareholder Share Purchase Plan ( Plan ) to acquire additional Shares at 10 cents per Share.

The Plan closed with acceptances totaling $734,000.

The Plan shortfall is fully underwritten by Barclay Wells Limited and will raise $2.3M in total (subject to shareholder approval) for the exploration of the Lynn Lake Nickel Sulphide Project in Canada. Exploration programs including drilling and geophysics are currently underway.

A General Meeting to approve the placement of the shortfall to sophisticated investors is proposed for the 4 March 2011.

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 road. 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.

Corazon has defined an Exploration Target[(2)] for the EL Mine of between 3.5Mt and 4.6Mt, which includes the existing 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

==> picture [568 x 89] intentionally omitted <==

The nickel sulphide deposits at Lynn Lake are polymetallic with metals such as copper and cobalt easily recovered and providing extremely valuable production credits. The entire Lynn Lake Nickel Camp operated for 23 years and produced 22.2Mt at 1% Ni and 0.5% Copper. These deposits are largetonnage/low-grade in nature and at such grades can provide a very robust mining project.

Lynn Lake VMS Deposits

The VMS deposits within Corazon’s project area include Francis Lake, Eldon Lake East, Nicoba, Y Deposit, Z Deposit and Gods Lake (FL) (Figure 1).

These deposits were mostly discovered in the 1940’s and since then have only had intermittent exploration in the 1970’s and 1990’s. They are predominantly zinc/copper mineralisation with variable amounts of lead, silver and gold. Not all metals have been historically reported.

Further details regarding these deposits can be found in the Company announcement made on the 26 November, 2010

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

==> picture [568 x 89] intentionally omitted <==

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