CORAZON MINING LIMITED — Capital/Financing Update 2012

Jan 18, 2012

ASX ANNOUNCEMENT

19 January 2012

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The Manager Company’s Announcements Australian Securities Exchange

Corazon Commences 2012 Exploration Program

Highlights

ASX : CZN

“A new high grade nickelcopper sulphide discovery ... in a major Canadian mining camp.”

• Drilling commences at the nickel-copper sulphide EL Deposit, Lynn Lake Project, Canada

• Work will focus on the high-grade Lower Zone, where recent drill intersections include 23.75m @ 3.34% Ni, 1.54% Cu & 0.079% Co and 11.03m @ 2.31% Ni, 1.01% Cu & 0.062% Co

• The EL Deposit remains open at depth and to the south

Capital Structure

137.89 M ordinary shares 71.54 M options

MCap ~A$13.8 M (@ 10cps)

• Potential for large tonnage/ low cost mining operation confirmed by significant widths of recent drill intersections

• 4,500m of drilling proposed to be completed by end of May

• Resource upgrade planned for mid-2012, forming the basis for mining studies

• ---

Nickel sulphide exploration company, Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”), is pleased to announce it has commenced its 2012 exploration season at its Lynn Lake Nickel Sulphide Project in Canada.

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

Corazon’s new phase of drilling will focus on testing the Lower Zone at the EL Deposit, comprising the high-grade nickel-copper sulphide breccia discovered in May 2011. The work program proposes an additional 4,500 metres of core drilling, to be completed by the end of May 2012.

The Lower Zone underpins the Company’s Exploration Target[1] of 5.2Mt - 7.4Mt, and contained metal of 52,000t - 139,000t nickel, 23,000t - 55,000t copper and 1,200t - 3,200t cobalt (announced 8 December, 2011).

Contact Us

The EL Deposit is a significant and attractive exploration target. Historically the Lynn Lake mines were large-tonnage/low-cost operations that produced for 23 years at an average grade of 1% nickel and 0.5% copper. Some of these mines were developed to 1,200 metres below surface. Bulk mining of these wide zones of mineralisation resulted in low operating costs and attractive operating margins.

1 The Exploration Target is conceptual in nature and, to date, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. See the disclosure statement appended to this release for further details

www.corazon.com.au

Brett Smith Ph: +61 (8) 6364 0518

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

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

ASX ANNOUNCEMENT

19 January 2012

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The high-grade potential of the EL Deposit is supported by the massive and semi-massive sulphide breccia intersected in drill holes including XND001W1 (23.75m @ 3.34% Ni, 1.54% Cu & 0.079% Co) and CRZ012 (44.75m @ 1.55% Ni, 0.65% Cu & 0.044% Co; including 11.03m @ 2.31% Ni, 1.01% Cu & 0.062% Co).

“The commencement of this phase of exploration is very exciting. We are about to test the grade potential of the Lower Zone, where we are seeing very good geological indicators of a strongly mineralised system”, said Corazon’s Managing Director, Brett Smith.

Additional assay results have been returned from drilling completed in 2011, which tested the down-dip extensions to the EL Deposit. This drilling intersected mineralised mafic host rock, interpreted to be east of, and marginal to, the more favoured ultramafic units. Broad zones of what can be considered historic ‘run of mine grade mineralisation’ for the Lynn Lake district (within the mafic units) is extremely encouraging and provides additional evidence of the strength of the mineralising system at depth.

A summary of these results are presented below, with individual results appended to this report.

• CRZ012W4 32.51m @ 0.94%Ni, 0.47%Cu & 0.024%Co from 717.19m

• CRZ012W5 34.00m @ 0.85%Ni, 0.50%Cu & 0.023%Co from 738.00m

• 10.75m @ 2.10%Ni, 1.03%Cu & 0.066%Co from 807.72m

• Including 4.26m @ 3.49%Ni, 1.75%Cu & 0.109%Co from 810.09m

• CRZ012W6 9.55m @ 1.03%Ni, 0.50%Cu & 0.030%Co from 802.45m

Corazon’s strategy is to initially determine the size and extent of the high-grade nickel-copper sulphide breccia, with a view to quickly progressing the project towards development and production. This drilling will be used in the estimation of a new resource for the EL Deposit, expected to be completed around mid2012.

- 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.au

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

ASX ANNOUNCEMENT

19 January 2012

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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 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 equivalent2). 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.

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. 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.

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.

Exploration Target[1]

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

The Exploration Target has been estimated to a depth of 1,200 metres below surface. It follows the discovery of a high-grade nickel sulphide breccia at depth below the historic EL Mine, as well as the recognition in historical drilling of a substantial amount of near surface low-grade mineralisation.

	Tonnes		Grade			Contained Metal
Base Case
		Ni%	Cu%	Co%	Tonnes Ni	Tonnes Cu	Tonnes Co
Upper Zone (0‐200m)	2,200,000	0.7	0.3	0.01	15,000	6,000	200
Mid Zone (200‐800m)	2,100,000	0.8	0.4	0.02	16,000	8,000	500
Lower Zone (800‐1200m)	900,000	2.4	0.9	0.06	21,000	8,000	500
Total	5,200,000	1.0	0.4	0.02	52,000	23,000	1,200

	Tonnes		Grade			Contained Metal
Upper Case
		Ni%	Cu%	Co%	Tonnes Ni	Tonnes Cu	Tonnes Co
Upper Zone (0‐200m)	2,600,000	0.7	0.3	0.01	17,000	7,000	300
Mid Zone (200‐800m)	2,100,000	0.8	0.4	0.02	16,000	8,000	500
Lower Zone (800‐1200m)	2,800,000	3.8	1.4	0.11	106,000	40,000	3,200
Total	7,400,000	1.9	0.7	0.05	139,000	55,000	3,900

Table 1 – Exploration Target ranges for the EL Deposit, Lynn Lake Nickel-Copper Sulphide Project. The numbers within the table have been rounded. Some rounding errors may occur.

The basis for this target for the EL Deposit includes:-

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

• Historical mine development to at least 270 metres below surface

• Underground exploration drilling, sampling and mapping to a depth of approximately 600 metres below surface

• The regional mining and development depth for the Lynn Lake camp is approximately 1,200 metres

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

ASX ANNOUNCEMENT

19 January 2012

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• There has been approximately 72,300 metres of historical surface and underground drilling complete

• At the date of definition of the Exploration Target, Corazon Mining Limited had completed in excess of 10,700 metres of surface core drilling

• 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.

The Lynn Lake mines were large-tonnage/low-cost operations that produced for 23 years at an average grade of 1% nickel and 0.5% copper. Some of these mines were developed to 1,200 metres below surface.

The zones defined in the Exploration Target include the Upper, Mid and Lower Zones. The Upper Zone includes lower grade material that has the potential to be exploited from lower cost mining methods such as open pit mining. This zone extends to 200 metres below surface. The Mid Zone is the area between 200 and 800 metres below surface, and covers an area defined predominantly by the current Inferred Resource (reported at a 0.6% Ni equivalent[2] bottom cut-off grade). The Lower Zone extends from 800 metres to 1,200 metres below surface, the latter being the maximum depth at which historical underground development was conducted.

Nickel Equivalent [2]

Ni% Equivalent = Nickel equivalent has been estimated within the Resource Block Model (2010) and in other instances using the formula:-

Ni% Equivalent = 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.

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.

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

ASX ANNOUNCEMENT

19 January 2012

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Table of Significant Results

Table of Significant Results	Table of Significant Results	Table of Significant Results	Table of Significant Results	Table of Significant Results	Table of Significant Results	Table of Significant Results
Hole	From	To	Interval	Ni%	Cu%	Co%
Number	(m)	(m)	(m)
CRZ012W4	715.00	716.00	1.00	0.34	0.32	0.009
CRZ012W4	716.00	717.19	1.19	0.41	0.35	0.010
CRZ012W4	717.19	717.85	0.66	2.91	1.52	0.069
CRZ012W4	717.85	718.70	0.85	0.93	0.52	0.024
CRZ012W4	718.70	719.40	0.70	1.29	0.23	0.031
CRZ012W4	719.40	720.40	1.00	0.33	0.05	0.009
CRZ012W4	720.40	721.00	0.60	0.57	0.20	0.014
CRZ012W4	721.00	722.04	1.04	1.48	0.43	0.035
CRZ012W4	722.04	723.00	0.96	0.55	0.25	0.015
CRZ012W4	723.00	724.00	1.00	1.18	0.38	0.028
CRZ012W4	724.00	725.00	1.00	0.77	0.49	0.020
CRZ012W4	725.00	726.00	1.00	1.23	0.61	0.031
CRZ012W4	726.00	727.21	1.21	1.32	0.54	0.032
CRZ012W4	727.21	728.00	0.79	0.80	0.38	0.020
CRZ012W4	728.00	729.00	1.00	1.05	0.44	0.025
CRZ012W4	729.00	730.17	1.17	0.55	0.77	0.015
CRZ012W4	730.17	730.92	0.75	1.79	1.38	0.043
CRZ012W4	730.92	732.00	1.08	0.64	0.20	0.016
CRZ012W4	732.00	733.65	1.65	0.48	0.40	0.013
CRZ012W4	733.65	734.32	0.67	0.95	1.39	0.026
CRZ012W4	734.32	735.00	0.68	0.56	0.84	0.015
CRZ012W4	735.00	736.00	1.00	0.65	0.68	0.017
CRZ012W4	736.00	737.00	1.00	0.82	0.50	0.021
CRZ012W4	737.00	738.00	1.00	0.88	0.72	0.022
CRZ012W4	738.00	739.00	1.00	0.70	0.49	0.018
CRZ012W4	739.00	740.00	1.00	0.32	0.12	0.010
CRZ012W4	740.00	741.00	1.00	0.56	0.14	0.016
CRZ012W4	741.00	742.25	1.25	0.61	0.35	0.019
CRZ012W4	742.25	742.88	0.63	1.35	1.04	0.038
CRZ012W4	742.88	744.00	1.12	0.39	0.14	0.012
CRZ012W4	744.00	745.15	1.15	0.63	0.20	0.018
CRZ012W4	745.15	745.78	0.63	2.39	0.32	0.062
CRZ012W4	745.78	747.00	1.22	0.73	0.13	0.020
CRZ012W4	747.00	748.00	1.00	0.84	0.23	0.022
CRZ012W4	748.00	749.00	1.00	0.34	0.35	0.011
CRZ012W4	749.00	749.70	0.70	4.28	0.58	0.111
CRZ012W4	749.70	751.00	1.30	0.28	0.15	0.010

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

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ASX ANNOUNCEMENT

19 January 2012

Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued
Hole	From	To	Interval	Ni%	Cu%		Co%
Number	(m)	(m)	(m)
CRZ012W5	736.00	737.00	1.00	0.30	0.19		0.008
CRZ012W5	737.00	738.00	1.00	0.24	0.29		0.007
CRZ012W5	738.00	739.00	1.00	1.53	0.33		0.035
CRZ012W5	739.00	740.00	1.00	0.40	0.29		0.011
CRZ012W5	740.00	740.78	0.78	0.52	0.36		0.014
CRZ012W5	740.78	741.67	0.89	3.07	1.27		0.075
CRZ012W5	741.67	743.00	1.33	1.15	0.39		0.031
CRZ012W5	743.00	744.22	1.22	0.88	1.22		0.024
CRZ012W5	744.22	745.00	0.78	0.53	0.38		0.016
CRZ012W5	745.00	745.78	0.78	0.30	0.20		0.008
CRZ012W5	745.78	746.81	1.03	3.86	0.41		0.099
CRZ012W5	746.81	748.00	1.19	0.48	0.83		0.014
CRZ012W5	748.00	749.00	1.00	0.38	0.37		0.011
CRZ012W5	749.00	750.00	1.00	0.37	0.30		0.010
CRZ012W5	750.00	751.00	1.00	0.57	0.37		0.015
CRZ012W5	751.00	752.00	1.00	0.35	0.22		0.011
CRZ012W5	752.00	753.00	1.00	0.33	0.16		0.010
CRZ012W5	753.00	753.39	0.39	0.53	0.26		0.015
CRZ012W5	753.39	754.00	0.61	1.31	0.46		0.034
CRZ012W5	754.00	754.60	0.60	0.81	0.26		0.022
CRZ012W5	754.60	755.00	0.40	0.37	0.30		0.012
CRZ012W5	755.00	756.00	1.00	0.63	0.39		0.019
CRZ012W5	756.00	757.00	1.00	0.40	0.31		0.012
CRZ012W5	757.00	758.00	1.00	0.85	0.51		0.024
CRZ012W5	758.00	758.72	0.72	0.10	0.14		0.006
CRZ012W5	758.72	760.00	1.28	0.86	0.65		0.023
CRZ012W5	760.00	761.00	1.00	1.15	0.28		0.029
CRZ012W5	761.00	762.00	1.00	0.75	0.31		0.020
CRZ012W5	762.00	763.00	1.00	0.78	0.45		0.021
CRZ012W5	763.00	764.00	1.00	1.11	0.63		0.030
CRZ012W5	764.00	764.58	0.58	0.60	0.62		0.018
CRZ012W5	764.58	765.00	0.42	0.86	3.85		0.026
CRZ012W5	765.00	766.00	1.00	0.84	0.74		0.023
CRZ012W5	766.00	767.00	1.00	0.51	0.29		0.014
CRZ012W5	767.00	768.00	1.00	0.50	0.39		0.014
CRZ012W5	768.00	769.00	1.00	0.73	0.40		0.020
CRZ012W5	769.00	770.00	1.00	0.69	0.42		0.018
CRZ012W5	770.00	771.00	1.00	0.92	0.74		0.023
CRZ012W5	771.00	772.00	1.00	0.72	0.39		0.018
CRZ012W5	772.00	773.00	1.00	0.40	0.28		0.010

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

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ASX ANNOUNCEMENT

19 January 2012

Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued	Table of Significant Results ‐ Continued
Hole	From	To	Interval	Ni%	Cu%		Co%
Number	(m)	(m)	(m)
CRZ012W5	807.00	807.72	0.72	0.34	0.11		0.010
CRZ012W5	807.72	808.82	1.10	1.36	0.78		0.042
CRZ012W5	808.82	810.09	1.27	1.18	0.38		0.039
CRZ012W5	810.09	811.00	0.91	4.87	1.31		0.144
CRZ012W5	811.00	811.52	0.52	6.28	5.18		0.195
CRZ012W5	811.52	812.00	0.48	1.63	1.28		0.054
CRZ012W5	812.00	813.13	1.13	2.49	0.73		0.077
CRZ012W5	813.13	814.35	1.22	2.92	1.73		0.096
CRZ012W5	814.35	815.00	0.65	1.52	0.47		0.046
CRZ012W5	815.00	815.74	0.74	1.96	1.42		0.067
CRZ012W5	815.74	816.89	1.15	0.48	0.19		0.015
CRZ012W5	816.89	816.97	0.08	7.63	0.11		0.237
CRZ012W5	816.97	818.00	1.03	0.36	0.14		0.012
CRZ012W5	818.00	818.47	0.47	1.59	1.22		0.054
CRZ012W5	818.47	819.00	0.53	0.35	0.74		0.013
CRZ012W5	819.00	820.00	1.00	0.39	0.31		0.013
CRZ012W6	801.00	802.00	1.00	0.19	0.02		0.006
CRZ012W6	802.00	802.45	0.45	0.49	0.20		0.014
CRZ012W6	802.45	803.00	0.55	1.18	1.16		0.036
CRZ012W6	803.00	803.69	0.69	0.41	0.29		0.012
CRZ012W6	803.69	805.00	1.31	0.16	0.15		0.004
CRZ012W6	805.00	806.00	1.00	0.61	0.33		0.017
CRZ012W6	806.00	806.48	0.48	1.05	0.25		0.031
CRZ012W6	806.48	807.00	0.52	3.05	0.23		0.088
CRZ012W6	807.00	808.00	1.00	0.85	0.20		0.026
CRZ012W6	808.00	808.74	0.74	0.97	2.40		0.031
CRZ012W6	808.74	809.45	0.71	3.33	0.48		0.098
CRZ012W6	809.45	810.00	0.55	0.89	0.30		0.027
CRZ012W6	810.00	811.00	1.00	0.36	0.15		0.012
CRZ012W6	811.00	812.00	1.00	1.20	0.55		0.034
CRZ012W6	812.00	813.00	1.00	0.34	0.22		0.012
CRZ012W6	813.00	814.00	1.00	0.33	0.41		0.012

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