CORAZON MINING LIMITED — Capital/Financing Update 2012

Sep 3, 2012

4 September 2012

ASX ANNOUNCEMENT

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The Manager Company’s Announcements Australian Securities Exchange

ASX : CZN

Corazon Acquires Canadian Gold Project

• Corazon secures option over Beaucage Lake gold project near its Lynn Lake nickel-copper project in Canada

• “A new high grade nickel-

• copper sulphide discovery ... in a major Canadian mining camp.”

• Past exploration defines extensive high-tenor gold mineralisation over 8km strike, with multiple geochemical and geophysical targets yet to be drill tested

• Surface samples up to 1,811g/t gold & 3,805ppm molybdenum, with a best drill intersection of 2m @ 11.9g/t gold

Capital Structure

Ordinary shares 137.89M Options 71.54M M.Cap (@ $0.02) ~ $3.0M

• Limited exploration completed in region since the early 1990’s

• Company to commence immediate collation of old exploration data and work on defining modern exploration techniques suitable for target generation

Board of Directors

Clive Jones Non-Executive Chairman

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Australian mineral exploration company, Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”), is pleased to announce it has secured an option to acquire the Beaucage Lake Gold Project (“Beaucage” or “the Project”), in the Lynn Lake mining district of central Canada.

The Project is located in close proximity to Corazon’s core asset, the Lynn Lake nickel-copper sulphide project, and the acquisition further expands the Company’s strategic exploration ground holding in the Lynn Lake district.

Corazon Managing Director Brett Smith said; “ This exciting new exploration opportunity offers immediate high priority drill targets within a mining friendly district supported by excellent infrastructure and a region of significant mines gold deposits, such as the 2 million ounce Maclellan Gold Mine currently looking to be developed. This is an exciting exploration play for Corazon and will receive priority attention .”

The Beaucage Project is situated approximately 45 kilometres southeast of Lynn Lake, providing the Company with an additional exploration focus and complementing Corazon’s Lynn Lake nickel-copper project and the Barrington Lake copper deposit (Figure 1).

Corazon believes the high tenor of gold mineralisation, over a large area near Beaucage Lake, may be indicative of a large scale mineralised system.

Brett Smith Managing Director

Jonathan Downes Non-Executive Director

Adrian Byass Non-Executive Director

Rob Orr Company Secretary

Contact Us

Brett Smith Managing Director Ph: +61 (8) 6364 0518

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

info@corazon.com.au

P: (08) 6142 6366 - Level 1, 350 Hay Street Subiaco W.A. 6008 - PO Box 8187 Subiaco East W.A. 6008 - www.corazon.com.au

ASX ANNOUNCEMENT

4 September 2012

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Acquisition Terms

The Company has negotiated terms which minimise the up-front cash impact of the acquisition. The Company has the right to acquire 100% equity in the Beaucage Lake Gold Project by:

• Payment of C$300,000 to the vendor in staged payments, including C$25,000 payable at the commencement of year 2, C$75,000 to be paid in year 3, C$100,000 to be paid in year 4 with an additional C$100,000 payable before the completion date at the end of year 4;

• issuing 250,000 new CZN shares to the vendor; and

• paying a sum of C$40,243 in-lieu of exploration on the mineral claims.

The C$40,243 payment will be reimbursed to Corazon by the provincial government of Manitoba, subsequent to exploration on the project. The owner will retain a royalty on the project of 2.5%, reducing to 1.5% following the payment of C$1,000,000.

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Figure 1: Corazon Project Locations – Lynn Lake District, Canada.

About the Beaucage Lake Gold Project

The Beaucage Lake Gold Project is underlain by Proterozoic volcanic island arc and oceanic deposits which form the south-eastern portion of the Churchill Structural Province. Host rock types for gold mineralisation include diorite, amphibolite (metabasalts]), chemical sediments (iron formations), arkosic and volcanic metasediments. While much of the gold mineralisation is associated with quartz veining and silica alteration, the chemical sediments are typically anomalous in gold and base metal mineralisation.

P: (08) 6142 6366 - Level 1, 350 Hay Street Subiaco W.A. 6008 - PO Box 8187 Subiaco East W.A. 6008 - www.corazon.com.au

ASX ANNOUNCEMENT

4 September 2012

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High-grade gold mineralisation at Beaucage has been defined over an extensive area. Little physical exploration has been completed since the early 1990’s, with most of the historical work completed by Homestake Mineral Development Company in the mid-1980’s.

The most recent surface sampling results greater than 2 g/t gold (Au), or greater than 200 ppm molybdenum (Mo), are summarised in Figure 2 (in 1990-1991 for Beaucage Lake and the western area; and in 1996 and 2010 for Stag Lake).

These results highlight the prospectivity of the Beaucage area and identify a new target at Stag Lake, approximately 9 kilometres to the east.

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Figure 2 : Beaucage Gold Project - most recent surface rock-chip sampling, significant results +2g/tAu or +200ppmMo, over Google Earth imagery

Drilling at the project has been limited, predominantly focusing on the Sky-Beatty (eastern) trend (see Figure 3) and on outcropping areas highlighted by surface sampling exploration in the early 1980’s. Much of this drilling was completed in two campaigns, first in 1985 by Homestake Mineral Development Company and then in 1990-1991 by Manitoba Mineral Resources Ltd. Historical documentation since discovery in the 1940’s indicates that only 27 drill holes have been completed at the project, for a total of 3,456 metres.

P: (08) 6142 6366 - Level 1, 350 Hay Street Subiaco W.A. 6008 - PO Box 8187 Subiaco East W.A. 6008 - www.corazon.com.au

ASX ANNOUNCEMENT

4 September 2012

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Figure 3: Beaucage Gold Project – geophysical trends and drilling, over Google Earth imagery

On-going Exploration

Corazon’s strategy, in light of the weak financial markets, is to progress exploration at its Lynn Lake projects in a cost effective manner, and maintain and consolidate its position in the region whilst implementing measures to preserve cash. The Company remains committed to the Lynn Lake nickelcopper project, where it has spent more than CAD$3 million on exploration and in 2011 delineated a new nickel sulphide discovery. The Board believes that with improved metal prices there is good potential to re-establish mining at Lynn Lake.

The proximity of the Beaucage Gold Project to the Lynn Lake Nickel-Copper Sulphide Project allows the Company to optimise its field activities in the region, providing cost reducing benefits for any future exploration work.

Initial work on the Beaucage project will involve the digital capture and interpretation of all historical exploration activity. Much of this work has been summarised in historical reports.

P: (08) 6142 6366 - Level 1, 350 Hay Street Subiaco W.A. 6008 - PO Box 8187 Subiaco East W.A. 6008 - www.corazon.com.au

ASX ANNOUNCEMENT

4 September 2012

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Information acquired to date suggests exploration has focused on small areas of outcrop scattered throughout the project. Geophysics has been useful in identifying favourable trends, with numerous targets identified, many of which have yet to be followed up with drilling. Corazon is of the view that modern geophysical techniques will be beneficial in additional target generation at Beaucage.

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 P: +61 (8) 6461 6350 M: +61 420 991 574 E: james@mandatecorporate.com.

Disclosure Statements and Important Information

Competent Persons

The information in this report that relates to mineral Resources or Reserves at Corazon’s Lynn Lake Project is based on information compiled by Mr Andrew John Thompson, B.Sc Hons (Geol), Member AusIMM and a consultant to 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.

The information in this report that relates to Exploration Results and Targets is based on information compiled by Mr Brett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Corazon Mining Limited. Mr Smith 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 Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

P: (08) 6142 6366 - Level 1, 350 Hay Street Subiaco W.A. 6008 - PO Box 8187 Subiaco East W.A. 6008 - www.corazon.com.au

ASX ANNOUNCEMENT

4 September 2012

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Lynn Lake District - Project Summary

Corazon has secured a large strategic land holding in the Lynn Lake district, an area displaying rich metal endowment, prospective for both base and precious metal deposits. The Company will continue to review additional mineral properties in the district that may add incremental value to the Project.

- Lynn Lake Nickel Copper 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 EL Mine was the highest grade deposit at Lynn Lake and produced 1.9Mt @ 2.5% nickel and 1.15% copper. Mining was conducted to a depth of 210 metres below surface, with development to 270 metres.

In May 2011 Corazon discovered a high-grade nickel-copper sulphide breccia in drilling below the EL Mine. The discovery hole (XND001W2) returned:

23.91m @ 2.27% Ni, 0.80% Cu & 0.055% Co from 715.09 m;

Including

4.53m @ 3.34% Ni, 1.05% Cu & 0.081% Co from 715.09 m and

1.82m @ 4.38% Ni, 0.37% Cu & 0.101% Co from 726.18 m

Recent drilling has defined this sulphide zone between approximately 700m and 820m below surface. Mineralisation remains open at depth, with the deepest mineralised intercept returning:-

44.8m @ 1.6%Ni, 0.7%Cu & 0.04%Co from 773.9m

This mineralisation displays some of the strongest sulphide breccia textures drilled to date by Corazon, with higher grade zones including:-

3.9m @ 2.8%Ni, 0.2%Cu & 0.07%Co from 773.9m

11.0m @ 2.3%Ni, 1.0%Cu & 0.06%Co from 784.9m

11.5m @ 2.4%Ni, 0.8%Cu & 0.06%Co from 807.2m

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. The size and continuity of the Lynn Lake deposits provide large tonnage – low cost mining opportunities.

There has been minimal exploration in the region since this time. 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, averaging above 85-90%.

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.

Barrington Lake Copper Deposit

The Barrington Lake copper deposit is located 43 kilometres east-northeast of Lynn Lake and is included in the Lynn Lake Option Agreement (to acquire 100% equity in the claim). Exploration activities, including drilling, in the early 1990’s defined copper mineralisation in structures, plus numerous geophysical anomalies which are yet to be followed up with drilling. The main focus of past work is an outcropping zone of approximately 107 metres in strike and 4.6 metres in width, with an average grade of 2.63% copper. There is also another copper showing, believed to be the same zone, outcropping approximately 900 metres to the west.

P: (08) 6142 6366 - Level 1, 350 Hay Street Subiaco W.A. 6008 - PO Box 8187 Subiaco East W.A. 6008 - www.corazon.com.au