CORAZON MINING LIMITED — Capital/Financing Update 2016

Oct 17, 2016

Announcement

18 October 2016

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The Manager - Company’s Announcements Australian Securities Exchange

Drilling Commences at Mt Gilmore Cobalt Project

• Drilling has commenced at the Mt Gilmore Cobalt-Copper-Gold Project

• Drill program will target the high-grade Cobalt Ridge prospect - previous drill results up to 3.38% cobalt, 3.18% copper and 4.92 g/t gold

• 2000m RC drilling program to test continuity and extents of high-grade mineralisation

• Drilling is expected to be completed over the next three weeks, with lab results possibly by late-November/early-December

• Fieldwork in the wider Mt Gilmore project area is ongoing, investigating new areas for further cobalt-copper-gold mineralisation

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce the commencement of its maiden drill program at the Mt Gilmore Cobalt-Copper-Gold Project (“Project”) in north-eastern New South Wales.

Drilling will focus predominantly on the advanced, high cobalt grade Cobalt Ridge prospect. The drill program will comprise approximately 2,000 metres of Reverse Circulation (RC) drilling to depths of about 150 metres.

The program is designed to confirm the continuity and extents of high-grade mineralisation within the prospect area, identified from previous drilling.

Previous drilling depths at Cobalt Ridge average less than 100 metres and identified multiple parallel sub-vertical Co-Cu-Au sulphide lodes over a strike length of 300 metres, with overall widths of between 50 metres and 120 metres.

The cobalt mineralisation is considered high-grade; with previous individual 1 metre drill results including grades up to 3.38% cobalt, 3.18% copper and 4.92 g/t gold. Mineralisation at Cobalt Ridge remains open along strike and at depth. (ASX announcement dated 16 June 2016)

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Figure 1 – Drilling underway at Cobalt Ridge

CAPITAL STRUCTURE BOARD OF DIRECTORS Market cap. @ A$0.018 A$11.67M Clive Jones Non-executive Chairman Ordinary shares - 648.4M Brett Smith Managing Director Options 20M Jonathan Downes Director ASX: CZN Adrian Byass Director

CONTACT US P: +61 (8) 6142 6366 M: PO Box 8187, Subiaco East WA 6008 E: info@corazon.com.au W: www.corazon.com.au

Announcement

18 October 2016

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In addition to the Cobalt Ridge prospect, the Project includes multiple promising, newly defined cobalt targets over a strike of approximately 11 kilometres. Fieldwork to test new areas for cobalt-coppergold mineralisation within the wider Mt Gilmore project area is ongoing.

The Iron Mountain and Hassan’s Creek prospects have both returned positive cobalt results from recent rock-chip and soil sampling programs. These are priority targets for follow-up work and as such three drill holes are proposed for the Iron Mountain prospect, following the completion of drilling at Cobalt Ridge.

Drilling at Cobalt Ridge is expected to be completed over the next three weeks. As with previous work, this drilling will undoubtedly intersect visible signs of mineralisation. The tenor of the cobalt mineralisation cannot be determined without Laboratory testing, which typically takes three to four weeks.

Mt Gilmore Project Overview

The Mt Gilmore Project is located only 35 km from the major centre of Grafton in north-eastern New South Wales. Corazon has an exclusive right to earn up to an 80% interest in the Project through payment of cash and shares, plus the expenditure of $2.2 million in-ground (ASX announcements 16 June 2016 and 4 July 2016).

The Project is located in the New England Orogen, a significant mineral province in Eastern Australia with a gold endowment of more the 35M ounces and the potential to host large copper-gold systems.

This region hosts deposits such as the Mount Morgan Cu-Au Mine (+50Mt @ 5.9 g/t Au and 0.7% Cu) and Mt Rawdon Gold Mine (50Mt @ 0.71 g/t Au).

Within the Project, a prospective 18 km trend (the Mt Gilmore Trend) has been identified, including:

• More than 25 historic copper, gold, cobalt and iron workings, including significant shafts, adits and drives with high-grade copper and gold mineralisation (rock chips up to grades of 26.8%Cu and 9.2 g/t Au)

• Five large scale Cu-Au targets defined to date

Although mapping indicates extensive hydrothermal alteration and copper-gold mineralisation at surface, very little modern exploration has been undertaken. Aside from small-scale historic coppergold and iron mines, previous exploration has predominantly been restricted to general prospecting/ mapping, rock-chip/ grab sampling, with drilling completed at only one of the targets (the Pulganbar – Cobalt Ridge area).

The Cobalt Ridge Prospect

The high-grade nature of this cobalt mineralisation is published in historical records from shallow mining (maximum shaft depth 36.5 metres), reporting a maximum of 14.7% cobalt (Co), 14.9% copper (Cu) and up to 1.7 oz/ ton gold (Au). The richer mineralisation seemingly occurs in small lenses or pods within a broader zone of lower-grade mineralisation.

Modern exploration within the Project commenced in the 1980’s; PanContinental completed ground IP and magnetic geophysical surveys, gridded soil geochemistry for Cu, Au and Co, 25 trenches (1,518.5 metres) and 17 RC drill holes (for 1,020.82 metres).

Between 2006 and 2008, Central West Gold N.L. drilled 25 holes for 2,880 metres, including 21 holes for 2,604 metres at Cobalt Ridge. This work defined multiple parallel sub-vertical Co-Cu-Au sulphide

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Announcement 18 October 2016

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lodes over a strike of 300 metres and width of between 50 metres and 120 metres. Maximum individual one (1) metre drill results include 3.38% Co, 3.18% Co and 4.92 g/t Au.

The Cobalt Ridge Prospect represents an advanced cobalt play with shallowly drilled Co-Cu-Au lodes that remain open along strike and at depth.

Numerous undrilled regional cobalt prospects exist, including several defined by soil geochemistry and geophysics close to Cobalt Ridge. This style of mineralisation (Co-Cu-Au sulphides) is typically responsive to geophysics, with the Cobalt Ridge mineralisation being traced for at least an additional 100m to 200m under cover outside of existing drilling.

Company Overview – Corazon Mining Limited

Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”) is a Perth based Australian mineral exploration company with projects in Canada and Australia.

The Company’s flagship project is the Lynn Lake Nickel-Copper-Cobalt Project in the province of Manitoba in Canada. The recent acquisition of the Mt Gilmore Cobalt-Copper-Gold Project (ASX announcement, 16 June 2016) in New South Wales (Australia) provides the Company with an exciting duel focus and opportunity.

Lynn Lake is a significant historic nickel-copper-cobalt mining area that ceased operation in 1976, after 24 years of continuous production. Corazon has been active in the Lynn Lake area since 2010 and has, for the first time since mine closure in 1976, consolidated the Lynn Lake Mining Centre under the ownership of one company.

The Lynn Lake Project is a development opportunity and boasts large remnant nickel-copper-cobalt resources within the historical mining centre, as well as significant drill defined resource potential from historical drilling and modern discoveries proximal to the mines. In addition to the near-mine opportunities, the exploration upside of this project is potentially enormous. Recent work by Corazon has highlighted a very large and compelling exploration target at the nearby Fraser Lake Complex (refer to Corazon’s previous ASX announcements). The Fraser Lake Complex is predominantly under cover, twice as large as Lynn Lake, and has all the geophysical and geochemical characteristics of the Lynn Lake mineralisation.

The Australian Mt Gilmore Project provides the Company with an early-stage exploration play with indicators of large scale copper-gold systems such as porphyry and skarn intrusive related deposits. The most advanced exploration project within Mt Gilmore is the Cobalt Ridge prospect, a high-grade cobalt deposit with accompanying copper and gold mineralisation. The cobalt mineralisation within the Mt Gilmore Project provides an early focus for exploration activities for the Company.

END .

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) 6142 6366	M: +61 (0) 420 991 574
E:info@corazon.com.au	E: james@mandatecorporate.com.au

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Announcement

18 October 2016

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Important Information

Competent Persons Statement :

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 2012 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.

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