CORAZON MINING LIMITED — Capital/Financing Update 2011

Jan 16, 2011

ASX ANNOUNCEMENT

17 January 2011

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The Manager Company’s Announcements Australian Securities Exchange

Corazon launches 2011 exploration program at Lynn Lake Project, in Canada

Highlights

• Corazon accelerates its exploration effort at Lynn Lake with proposed work programs to include:-

• 5,000 metres of drill core and down-hole EM geophysics

Corazon Mining Limited ASX : CZN

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

Capital Structure

78.52 M ordinary shares 58.07 M options

MCap ~A$7.85 M (@ 10 cps)

• 420 line km of aerial VTEM and magnetic geophysics

• 40 line km of ground IP geophysics

• Project coverage with detailed ground gravity geophysics

• Preliminary mining studies on the EL Nickel Sulphide Deposit.

• The EL Nickel Sulphide Deposit will be a major focus for this exploration:-

• Resource up-grade drilling at shallow depths

• Drilling and down-hole EM surveys of extensions to the mineralisation

• Mining/engineering studies of resource.

• Exploration will also test other nickel sulphide and zinc-copper-sliver VMS targets within the project.

• Corazon is the largest landholder in the Lynn Lake region.

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

• Project includes:-

• Flagship EL nickel/copper sulphide deposit (initial inferred resource of 1.8Mt @ 0.8 %Ni, 0.4 %Cu and 0.023 %Co for 14,000 tNi, 7,000 tCu, 400 tCo); and

Brett Smith Ph: +61 (8) 6364 0518

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

• Six drill defined VMS deposits.

• This phase of exploration is expected to be completed by the end of April 2011. Results will be released to the market as they become available.

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Drilling at Lynn Lake

Australian exploration company Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”) is pleased to announce the commencement of its 2011 exploration campaign at its Lynn Lake Nickel Sulphide Project in Canada.

Corazon has been exploring the Lynn Lake Nickel Sulphide Project since July 2010 and has recently established an initial inferred resource at the EL Mine of 1.8Mt at 1.0% Ni Equiv[(1)] . The resource is part of a much larger system for which the Company has defined an Exploration Target [(2)] of between 3.5Mt and 4.6Mt. This Exploration Target[(2)] is conceptual in nature as 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 EL Mine 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 ranges of 28,100t-66,000t nickel, 14,000t-31,400t copper and 770t-1,730t cobalt.

The Company is the largest land holder at Lynn Lake and in addition to the flagship EL nickel sulphide deposit, it controls six (6) drill defined VMS (volcanogenic massive sulphide) deposits.

Corazon is accelerating exploration at Lynn Lake. Work has commenced and will include:-

• 5,000 metres of drill core and down-hole EM geophysics

• 420 line km of aerial VTEM and magnetic geophysics

• 40 line km of ground IP geophysics

• Project coverage with detailed ground gravity geophysics

• Preliminary mining studies on the EL Nickel Sulphide Deposit.

IP geophysics has commenced, with the VTEM and gravity surveys expected to start later this month. Drilling will commence in the first week of February and continue though until the end of April.

The EL nickel sulphide deposit will be a major focus for this exploration, with the Company employing a three pronged strategy to progress the development of the resource. In summary:-

1. The initial inferred resource is constrained by drill density. As such, targeted drilling into areas of little information is expected to add value.

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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1. High-level/early-stage mining studies will be completed on the EL Mine resource. This work will influence the focus of future drilling at this deposit.

2. Drilling of extensions to the mineralisation is expected to add to the EL Mine resource. The EL Deposit has been mined to 210 metres below surface and has a resource defined to 600 metres below surface. Past mining in the Lynn Lake region has been conducted to depth of more than 1,100 metres. The target below 600 metres is another high-grade massive sulphide breccia zone, similar to that mined from surface at the EL Mine.

Exploration will also test other nickel sulphide and zinc-copper-sliver volcanogenic massive sulphide (VMS) targets within the project. Geophysics to be completed over the next two months will better define these drill targets. However, it is expected targets will include deposits such as those shown in Figure 1:-

• The 150 nickel sulphide prospect – plus 1% nickel and 1% copper intersected in shallow historical drilling; and the

• The Frances Lake VMS Deposit. Historical drill results including:-

• 6.5m @ 13.8% Zn, 0.7% Cu, 0.9% Pb, 22.2g/t Ag & 3.7g/t Au

• 1.2m @ 10.6% Zn, 0.2% Cu, 6.1% Pb, 135.1g/t Ag & 8.7g/t Au

• 1.3m @ 9.6% Zn, 0.7% Cu, 1.4% Pb, 59.5g/t Ag & 0.9g/t Au

• 13.7m @ 4.0% Zn, 0.2% Cu, 0.6% Pb, 23.7g/t Ag & 0.4g/t Au

• 5.8m @ 5.5% Zn, 0.6% Cu, 3.3g/t Ag & 0.9g/t Au.

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Figure 1:- Lynn Lake Nickel Sulphide Project – showing new Mineral Claims and 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

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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. 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.

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.

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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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.

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