CORAZON MINING LIMITED — Capital/Financing Update 2017

May 3, 2017

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----- Start of picture text ----- ASX ANNOUNCEMENT 4 [th] May 2017----- End of picture text -----

NEXT PHASE OF DRILLING COMMENCING AT FRASER LAKE COMPLEX – NEW WORK PERMITS GRANTED

• Work Permits granted for drilling new priority targets at the Fraser Lake Complex (FLC)

• Drilling to commence next week

• New target area located southwest of Company’s previous drilling, within the feeder zone and closer to the FLC’s interpreted deep mantle source

• New targets represent highest priority drill targets to date

• Program to be completed over the next 4 to 6 weeks

• Corazon’s discovery of nickel-copper sulphides at the FLC validates its potential to host significant nickel-copper sulphide deposits

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce that Work Permits for the drilling of new priority targets have been granted, and that the next phase of work at the Fraser Lake Complex (“FLC”) in Manitoba Province, Canada, is scheduled to commence the week beginning Monday 8[th] May 2017.

The FLC is located five kilometers south of Corazon’s 100% owned Lynn Lake Nickel-Copper-Cobalt Mining Centre (Figure 1). The Company’s discovery this year of magmatic nickel-copper sulphides within the FLC validates its exploration and targeting model, and confirms the FLC’s potential to host significant nickel-copper sulphide deposits.

Corazon recently completed an Induced Polarisation (IP) geophysical survey over the entire length of the interpreted feeder zone at the FLC (ASX announcement 29[th] March 2017). This extended coverage southwest from where drilling has been completed and generated significant new geophysical anomalies and new priority drill targets.

The new targets are located between 300m and 800m southwest of the Company’s completed 2017 drilling and are outside the area previously approved for drilling at the FLC. Work Permit applications to drill these new targets were submitted and have now been granted.

The Company plans to complete this drill program over the next 4 to 6 weeks. The number of holes and priority of targets is dependent on results as the program progresses.

New Drill Targets

Corazon has completed two phases of core drilling within the FLC since the start of 2017, each targeting high chargeability induced polarisation (IP) geophysical anomalies generated from work completed in the Canadian winter of 2016. This drilling intersected extensive magmatic nickelcopper sulphide mineralisation and there is little doubt the IP anomalies are caused by sulphide mineralisation.

Additional IP geophysics was completed this winter (2017) and indicated the main target - the Matrix Trend - extends to the southwest, increasing in intensity closer to the margin of the intrusion. The Matrix Trend is more than 1.7km in strike, extending northeast from what is interpreted to be a deep mantle source on the margin of the FLC (Figure 2). This anomaly represents a classic “feeder zone” environment and, accordingly, is a priority target for magmatic sulphide deposits.

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All holes drilled to date within the Matrix Trend reported significant sulphide mineralisation in an area that the Company now believes is peripheral to the main targets (which are closer to the margin of the FLC and deep mantle source from which the feeder zone originates) (Figure 2).

Sulphide mineralisation in drill holes within the Matrix Trend is pervasive, although variable in intensity. Textures and geochemistry suggest that multiple pulses of sulphide rich melt have intruded the FLC. Thin zones of massive sulphide intersected (typically less than 0.5m) appear to be predominantly flat lying and are characteristically different to the vertical pipe-like sulphide bodies within the Lynn Lake Mining Centre. The new targets are interpreted to have a strong vertical component, with gravity data identifying deep roots to the anomalies (Figures 2 and 3).

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Figure 1: Project Location and Geology . Interpreted Geology – Emslie, R.R. and Moore, J.M. 1961. Manitoba Mines Branch, Publication 57-4. Datum UTM Zone 14 (NAD83). Lynn Lake is considered an historically significant nickel mine and remains the fifth largest nickel producing district in Canada, despite the mine closing in 1976. The Fraser Lake Complex is twice as large as Lynn Lake and in many facets is geologically identical to Lynn Lake.

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Figure 2 – Fraser Lake Complex Geophysical Images – Refer to Figure 3 for location.

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Figure 3 – Fraser Lake Complex – Interpretive Cross-Sections from IP Geophysical Surveys.

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For further information visit www.corazon.com.au or contact:

Brett Smith	James Moses
Managing Director	Media & Investor Relations
Corazon Mining Limited	Mandate Corporate
P: +61 (8) 6142 6366	M: +61 (0) 420 991 574
E: info@corazonmining.com.au	E: james@mandatecorporate.com.au

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.

Canadian geologist Dr Larry Hulbert has been engaged by Corazon to manage the collation of past exploration information and the definition of new targets at Lynn Lake. Dr Hulbert has extensive knowledge of the Lynn Lake district and over 40 years’ experience in Ni-Cu-PGM exploration and research. Dr Hulbert is one of North America's foremost experts on magmatic sulphide deposits and would 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”.

Dr. Hulbert has authored numerous professional papers, was the recipient of the Barlow Medal from CIM in 1993, a Robinson Distinguished Lecturer for the Geological and Mineralogical Association of Canada for 20012002, and in 2003 received the Earth Sciences Sector Merit Award from Natural Resources Canada.

Matrix GeoTechnologies Ltd (Matrix) has been engaged by Corazon to design, complete and analyse an Induced Polarization (IP) ground geophysical survey within the Fraser Lake Complex at Lynn Lake. Matrix is a Canadian based geophysical consultancy, leading the field in multi-disciplinary geoscientific surveying, interpretation and presentation. Matrix is active worldwide and has considerable experience in the Lynn Lake region and in particular within the mining centre.

Matrix senior geophysicists engaged by Corazon for the current IP survey include Dr Kapllani and Mr Genc Kallfa. Dr. Kapllani (PhD AIPG) is the co-founder and President of Matrix with over 35 years’ experience in geophysical methodology and research gained over countless assignments spreading across North America, Europe, Africa, Asia, and South America. Mr. Kallfa (BSc PGeo) has more than 29 years’ experience and is co-founder and CEO of Matrix as well as a member of Association of Professional Geoscientists of Ontario. Both Dr Kapllani and Mr Kallfa would qualify as Competent Persons as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

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