CORAZON MINING LIMITED — Capital/Financing Update 2017

Jan 22, 2017

Announcement

23 January 2017

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The Manager - Company’s Announcements Australian Securities Exchange

NICKEL-COPPER SULPHIDES IN DRILLING AT LYNN LAKE PROJECT Sulphide mineralisation intersected at priority geophysical anomalies

• Corazon has intersected nickel-copper sulphides in the first two drill holes at its Lynn Lake Project in Canada

• Drilling is testing nickel-copper-cobalt geophysical targets at the Fraser Lake Complex (FLC) within the Lynn Lake Project area

• Hole #2: Chargeable IP Anomaly – Main Target – Drilling Underway

• Sulphide content increasing towards target, including disseminated and blebby pyrrhotite, pentlandite and chalcopyrite

• Lithologies becoming more complex and ultramafic in character

• Hole #1: VTEM Conductor – Drilling Completed

• Anomaly attributed to volcanogenic massive sulphide (VMS - sediment) xenolith within the FLC mafic intrusion

• Extensive disseminated visual copper mineralisation and anomalous nickel identified with hand-held XRF

• Assimilated VMS has caused sulphide saturation within magma – positive sign for Ni-Cu sulphide development

• Targets predominantly under shallow cover - include strong, chargeable IP anomalies coincident with magnetic highs

• Drilling is ongoing – Initial 1500m drilling program expected to take one month to complete

• FLC located just 5km south of the historic Lynn Lake Nickel-Copper-Cobalt Mining Centre

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce that it has intersected Nickel-Copper Sulphides in its maiden drill program at the Fraser Lake intrusive complex (FLC) within the Lynn Lake Nickel-Copper-Cobalt Project in the Manitoba province of Canada.

CAPITAL STRUCTURE		BOARD OF DIRECTORS	BOARD OF DIRECTORS		CONTACT US
Market cap. @ A$0.019	A$15.45M	Clive Jones	Non-executive Chairman		P: +61 (8) 6142 6366
- Ordinary shares	813M	Brett Smith		Managing Director	M: PO Box 8187, Subiaco East WA 6008
Options	20M	Jonathan Downes		Director	E: info@corazon.com.au
ASX: CZN		Adrian Byass		Director	W: www.corazon.com.au

Announcement

23 January 2017

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Corazon’s drill program of approximately 1,500 metres of core drilling is targeting the four (4) highest priority geophysical anomalies within the FLC. The initial results are positive and encouraging, with the intersection of sulphides in the first two holes of the program validating Corazon’s exploration and targeting model and further confirming FLC’s potential to host significant nickel-copper sulphide deposits.

The Company is pleased to provide initial finding from the program’s first two drill holes – Holes #1 and #2.

Initial Results

Hole #1 (FLC-2017-001 ) was drilled to its planned depth of 75 metres and has been completed. It was designed to test the near-surface expression of a VTEM conductive anomaly within the FLC intrusion. The hole was successful in intersecting extensive sulphide mineralisation from surface, including two volcanogenic massive sulphide lodes (VMS) between two (2) and three (3) metres thick that have been caught up in the mafic intrusion. It is believed these sulphidic bodies are the cause of the VTEM anomaly.

Extensive copper sulphides (chalcopyrite) were observed as both disseminated throughout the mafic intrusive and as veinlets within the VMS lodes. Disseminated sulphides within the mafic rocks average about 2% of total volume. Hand-held XRF testing of the core indicated the VMS material has background grades (away from visible copper sulphide zones) of between 0.5% and 0.8% copper and up to approximately 0.3% nickel. This testing is by no means exhaustive and, as such, the grades provided are solely for defining levels of anomalism.

The anomalous amount of interstitial sulphide in the mafic rocks enclosing the VMS xenoliths is very positive. It clearly demonstrates that the assimilation of sulphide-rich VMS xenoliths is causing sulphide saturation to be achieved within the FLC magma. This sulphide saturation enhances the potential for Ni-Cu sulphide concentrations proximal to the xenoliths and as such the area around this target is ear-marked for future target generation, in particular Induced Polarization (IP) geophysical survey.

Hole #2 (FLC-2017-002) represents the main IP anomaly target within the FLC and drilling is currently underway. It is a very strong IP chargeability anomaly, coincident with a magnetic high, within a plus600 metres sub-vertical anomalous IP trend. The anomaly starts near-surface with the strongest part commencing at about 175 metres and improving with depth, past the effective range of the IP survey (+700 metres below surface).

The chargeability anomaly of +36 m/s and magnetic anomaly of 59,616 nt (VTEM mag total field) is significant and on-par or better than the best mineralised zones within the Lynn Lake historical mining centre.

Hole #2 is being drilled at a steep dip and will come in from the side of the near vertical IP feature to test the core of the anomaly at about 500 to 600 metres below surface. Disseminated (Figure 1) to blebby magmatic sulphide mineralisation has been intersected and appears to be increasing in intensity closer to the target. At the current depth of approximately 400 metres, sulphide blebs have grown to about thumb nail size, with visible pentlandite and chalcopyrite accompanying the pyrrhotite.

The composition of the mafic unit is also varying and appears to be becoming more ultramafic as the hole progresses. The “indicative host” of the Lynn Lake nickel-copper-cobalt deposits (Lynn Lake Amphibolite) has been identified within the core.

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Announcement 23 January 2017

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Figure 1 – Photo of FLC Drill Core - Disseminated Sulphide Mineralisation – Hole FLC-2017-002

Outline of Drill Program

The Company’s current program plans to undertake approximately 1,500 metres of core drilling over its highest priority geophysical anomalies within the FLC. The FLC is located only five kilometres south of the historic Lynn Lake Mining Centre (Figure 2).

Drilling is underway and the program is expected to take one month to complete.

Drilling will initially test four priority targets, generated from Corazon’s IP geophysics and surface geochemistry programs conducted in 2016, in conjunction with the collation of historical exploration data stretching back to the 1940’s. This body of work has identified multiple compelling drill targets within the FLC, indicative of the style of mineralisation previously mined at Lynn Lake.

The initial target (#1 Target, Figure 3) is an EM conductor (VTEM anomaly) situated outside the area tested by the IP survey, but within the interpreted neck of the intrusion. The interpreted “plate” generated from the VTEM anomaly has an extremely high conductance of CT=4,086 S, with dimensions of 60m wide by 15m thick and 482m down-plunge towards the south-west. The plate is interpreted to start at surface (below shallow cover) and is coincident with a magnetic high of 140m by 120m in area (generated from detailed low-level aeromagnetics). The high conductance of this anomaly sets it apart from any other anomaly in the Lynn Lake region.

Targets #2 and #3 (Figure 3) are within the main IP chargeable anomaly trend and exhibit strong chargeability of between 20 and 45 m/s. Both targets originate not far from surface and extend down to depths in excess of 700m. Target #2’s strongest chargeable IP signature is interpreted to start at about 175m below surface, and Target #3 at about 350m below surface. Both drill targets are coincident with high magnetic anomalies.

These new anomalies identified by Corazon (ASX 27 July, 2016) are more typical of those within the main Lynn Lake mine area, with IP geophysics being a good test of the larger, disseminated style of mineralisation. The depth of the better IP anomalism is beyond the effective testing depth for VTEM and, as such, any massive sulphide mineralisation would not be detected.

Target #4 (Figure 3) is a coincident IP/magnetic anomaly close to an historical rock chip result of 0.39% nickel and is within what is interpreted to be the feeder to the Eastern Magnetic Domain Ultramafic.

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Announcement

23 January 2017

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Past surface sampling and drilling at FLC has also identified magmatic nickel-copper sulphides associated with lithologies identical to the Lynn Lake host units.

The main target area is a trend that has been defined by IP geophysics (ASX announcement 27[th] July 2016) and surface geochemistry (ASX announcement 26[th] October 2016). The chargeable IP anomaly is open to the south-west (away from the IP survey area) and is aligned with what is interpreted to be the magmatic feeder to the FLC (Figure 3).

Other quality targets have been shortlisted for drilling, proposed for completion subsequent to receipt of the results of the initial drilling program.

Lynn Lake Project Summary

On 1[st] April 2015, Corazon announced it had consolidated the Lynn Lake Nickel-Copper Field under the ownership of one company for the first time since mine closure in 1976. In doing so, Corazon created a significant nickel-copper sulphide asset.

Consolidating the nickel field improves the economics of any potential mining operation and provides benefits in scale and possible mine life, enhancing the opportunity to take advantage of an appreciating nickel metal price.

• Despite mine closure in 1976, Lynn Lake remains Canada’s fourth largest nickel producing district approximately 22.2 Mtons at 1% nickel and 0.5% copper (cobalt not reported) were mined between 1953 and 1976. The Lynn Lake deposits are favourable for large-scale, low-cost mining methods and in places have been exploited down to depths of more than one (1) kilometer.

On 16[th] April 2015, Corazon published an initial JORC Indicated and Inferred Mineral Resource Estimate for the consolidated Lynn Lake Project of 9.4Mt @ 0.88% nickel and 0.40% copper, for 83,000 tonnes of contained nickel and 37,800 tonnes of contained copper (Table 1).

The Resource grade is consistent with historical grades from the Lynn Lake Mine, which operated for 24 years as a large tonnage, low cost mine. Corazon is of the view that there are obvious areas where the existing Resource may be increased. In recent years, three (3) new discoveries have been made at Lynn Lake, in the “shadow of the headframe”. These discoveries are not included in the current Resource and have the potential to add to the existing Resource inventory.

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Announcement

23 January 2017

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Figure 2 – 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 fourth largest nickel producing districts 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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Announcement

23 January 2017

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Figure 3 – Geophysical Features and Targets . Aeromagnetic Total Field image, interpreted features with VTEM conductive high anomalies, the main IP anomaly, IP Survey outline, historical drilling and anomalous nickel locations. A gravity high anomaly to the south of the FLC intrusion is believed to be the source of mantle material that feed the intrusion. The main IP anomaly (#2 & #3 Targets) trends off the IP surveyed area and is in alignment with the interpreted neck/feeder zone of the intrusion. An extremely high conductive VTEM anomaly (#1 Target) is also situated on this trend.

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Announcement

23 January 2017

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Zone	Bottom Cut Grade	Bottom Cut Grade	Tonnes	Grade	Grade	Contained Metal	Contained Metal
	NIEQ %	Ni %		Ni %	Cu %	Ni Tonnes	Cu Tonnes
Indicated Resource Category
EL Upper		0.4	1,121,136	0.77	0.34	8,587	3,828
EL Lower		0.6	676,230	0.83	0.40	5,599	2,700
N	0.8		2,990,000	0.86	0.41	25,714	12,259
O	0.8		2,630,000	0.82	0.37	21,566	9,731
Indicated Sub-Total			7,417,366	0.83	0.38	61,465	28,518
Inferred Resource Category
EL Upper		0.4	644,988	1.55	0.61	9,992	3,909
EL Lower		0.6	291,726	1.01	0.44	2,959	1,288
N	0.8		710,000	0.79	0.39	5,609	2,769
O	0.8		100,000	0.75	0.36	750	360
G	0.8		240,000	0.94	0.39	2,256	936
Inferred Sub-Total			1,986,714	1.09	0.47	21,566	9,263
Total			9,404,080	0.88	0.40	83,032	37,780

Table 1: Mineral resource for the EL, N, O and G deposits at Lynn Lake

Table 1 Notes:

Cobalt mineralisation not reported within resource due to incomplete historical analysis for the metal. Nickel equivalent grades (NIEQ%) 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. Past mining of these deposits has reported minimum recoveries above 85% for all metals, typically greater than 90% for Ni, Cu, Co. NIEQ% = (((Cu%222.04622)+(Ni%7.2222.04622))/7.22)/22.04622 where Ni = US$7.22 /lb Cu = US$2.00 /lb.

Since consolidating the Project in 2015, Corazon has completed extensive works, locating and acquiring all historical exploration and mining data for Lynn Lake. This was an enormous task - project information was scattered across Canada, held by multiple parties and was found in predominantly paper format. The Company reasonably estimates three (3) million dollars’ worth of geophysical data has been accumulated.

In addition to the geophysical data, the digital drill-hole database has increased from 3,800 drill-holes to almost 9,000 drill-holes, and the surface geochemical dataset has developed from zero to 2,783 samples of predominantly research-quality element analysis.

This data has generated the targets currently being tested at the Fraser Lake Complex, and will also be used to target additional resource opportunities in the Lynn Lake Mining Centre.

The Lynn Lake project area is situated immediately adjacent to the Lynn Lake Township , which was established in the 1950s to support the Lynn Lake mining operation; as such, the area boasts excellent infrastructure and the capacity to support the recommencement of mining.

The Thompson Nickel Refinery (owned by Vale) is located only 320km from the Lynn Lake Project and is accessible by a major road. In addition to road, a rail line links Lynn Lake with the mining town of Flin Flon, approximately 270km to the south (northern 100km of railway line not currently in use).

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Announcement 23 January 2017

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The Manitoba Provincial Government is supportive and is actively encouraging mineral exploration and mining. The Lynn Lake project area carries no historical environmental liability from previous mining activities.

– Company Overview Corazon Mining Limited

Corazon Mining Limited (ASX:CZN) 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 acquisition of the Mt Gilmore Cobalt-Copper-Gold Project (ASX announcement, 16 June 2016) in New South Wales (Australia) has provided the Company with an exciting dual 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. Cobalt is a metal of growing strategic importance due to its requirement for use in Lithium-Ion batteries and the emerging rechargeable battery sector. 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

23 January 2017

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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 2001-2002, and in 2003 received the Earth Sciences Sector Merit Award from Natural Resources Canada.

The information in this report that relates to Exploration Results and Mineral Resources for the A Plug deposits at the Lynn Lake project is based on information compiled by Mr Neal Leggo who is a Member of the Australian Institute of Geoscientists. At the time of completing the resource Mr Leggo was a full time employee of Ravensgate and has sufficient experience that is relevant to the style of mineralisation 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 Leggo 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 Mineral Resources for the EL Plug deposits at the Lynn Lake project is based on information compiled by Mr Stephen Hyland who is a Fellow of the Australasian Institute of Mining and Metallurgy. At the time of completing the resource Mr Hyland was a full time employee of Ravensgate and has sufficient experience that is relevant to the style of mineralisation 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 Hyland consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Forward Looking Statements

This announcement contains certain statements that may constitute “forward looking statement”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements.

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Table 2: Checklist of Assessment and Reporting Criteria

23[rd] January, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random	Drill Core Sampling
techniques		chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or	Half core is sampled on the basis of geology. Minimum interval 200mm, maximum interval sampled is 1.5m.
		handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any	The drill core is cut using an industry standard core saw. Individual samples are collected in labelled calico bags. Sample weights are typically between 2kg and 5kg.
		measurement tools or systems used. Aspects of the determination of mineralisation that are	To date, no assay results have been received.
		Material to the Public Report.
		In cases where ‘industry standard’ work has been done this
		would be relatively simple (eg ‘reverse circulation drilling
		was used to obtain 1 m samples from which 3 kg was
		pulverised to produce a 30 g charge for fire assay’). In other
		cases more explanation may be required, such as where
		there is coarse gold that has inherent sampling problems.
		Unusual commodities or mineralisation types (eg submarine
		nodules) may warrant disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer,	NQ drill core is being undertaken by Vital Drilling Services using an Atlas
techniques		rotary air blast, auger, Bangka, sonic, etc) and details (eg	Capco CS 1000. Rod lengths are 3m (NM – Atlas Capco), with core run
		core diameter, triple or standard tube, depth of diamond	lengths also of 3m.
		tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Depth capacity of this drill rig is approximately 700 metres.
Drill sample		Method of recording and assessing core and chip sample	Recovery of the core drilling is excellent (+99%).
recovery		recoveries and results assessed.
		Measures taken to maximise sample recovery and ensure
		representative nature of the samples.
		Whether a relationship exists between sample recovery and
		grade and whether sample bias may have occurred due to
		preferential loss/gain of fine/coarse material.

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Table 2: Checklist of Assessment and Reporting Criteria

23[rd] January, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Logging		Whether core and chip samples have been geologically and	Core is geologically logged and tested for magnetic susceptibility &
		geotechnically logged to a level of detail to support	conductivity.
		appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core	A hand-held XRF (Niton) is used for the purposes of assisting with mineral identification and metal content.
		(or costean, channel, etc) photography.	Structural and geotechnical mapping is also undertaken.
		The total length and percentage of the relevant intersections
		logged.
Sub-		If core, whether cut or sawn and whether quarter, half or all	Drill core is cut and typically half core is taken as a sample for analysis.
sampling techniques and sample		core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Quality control measures include core duplicates (1/4 core), CANMET certified reference materials (standards) and silica blanks.
preparation	 	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling	Samples are transported to TSL Laboratories in Saskatoon for sample preparation, including total sample crushing and pulverising to 80% passing 75 microns.
		stages to maximise representivity of samples.
		Measures taken to ensure that the sampling is	Sample analysis is completed by ACME Laboratories in Vancouver.
		representative of the in situ material collected, including for
		instance results for field duplicate/second-half sampling.	Sample security is overseen by Aurora Geosciences personnel until shipment
		Whether sample sizes are appropriate to the grain size of	from site to the Laboratory. Shipment and transport is overseen by Corazon's
		the material being sampled.	Lynn Lake site manager.
Quality of		The nature, quality and appropriateness of the assaying and	Once sample preparation was completed by TSL Laboratories, they are
assay data		laboratory procedures used and whether the technique is	transported to ACME Laboratories in Vancouver for analysis. A multi-element
and		considered partial or total.	analysis is completed using ICP-MS with a 4 acid digest (30 gram samples). A
laboratory		For geophysical tools, spectrometers, handheld XRF	total of 37 elements are tested for (ACME method code AQ525).
tests		instruments, etc, the parameters used in determining the analysis including instrument make and model, reading	Both TSL and ACME are accredited Canadian laboratories.
		times, calibrations factors applied and their derivation, etc.	To date, no assay results have been received.
		Nature of quality control procedures adopted (eg standards,
		blanks, duplicates, external laboratory checks) and whether
		acceptable levels of accuracy (ie lack of bias) and precision
		have been established.

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Table 2: Checklist of Assessment and Reporting Criteria

23[rd] January, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Verification		The verification of significant intersections by either	Drilling is being managed by experienced geological personnel from Aurora
of sampling		independent or alternative company personnel.	Geosciences and overseen by Corazon’s consultant and nickel sulphide expert
and		The use of twinned holes.	Dr Larry Hulbert.
assaying		Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	To date, no assay results have been received.
		Discuss any adjustment to assay data.
Location of		Accuracy and quality of surveys used to locate drill holes	Drill holes were positioned using a hand-held Trimble GEOXH GPS and Reflex
data points		(collar and down-hole surveys), trenches, mine workings	Northfinder APS.
		and other locations used in Mineral Resource estimation. Specification of the grid system used.	The survey data is recorded in real-world grid system NAD 83 Zone 14.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.	Drill holes are widely space and targeted at individual geophysical anomalies.
and distribution		Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve	This exploration is reconnaissance in nature and as such will not result in the immediate definition of a mineral resource estimation.
		estimation procedure(s) and classifications applied.
		Whether sample compositing has been applied.
Orientation		Whether the orientation of sampling achieves unbiased	Drill holes are widely space and targeted at individual geophysical anomalies.
of data in relation to		sampling of possible structures and the extent to which this is known, considering the deposit type.	Azimuths and dips are variable, dependent on the targets being tested.
geological		If the relationship between the drilling orientation and the	No bias for the sampling has been established.
structure		orientation of key mineralised structures is considered to
		have introduced a sampling bias, this should be assessed
		and reported if material.
Sample		The measures taken to ensure sample security.	Sample security is overseen by Aurora Geosciences personnel until shipment to
security			the Laboratory.
			Individual samples are collected in calico bags, before being bundled together
			into sealed in large PVC bags and sealed with security tags for transport to the
			laboratory.
			Shipment and transport of the samples to TSL Laboratories is overseen by

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Table 2: Checklist of Assessment and Reporting Criteria

23[rd] January, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
			Corazon’s Lynn Lake site manager.
Audits or		The results of any audits or reviews of sampling techniques	To date, no assay results have been received. As such no audits or reviews
reviews		and data.	have been conducted.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral		Type, reference name/number, location and ownership	The Fraser Lake Complex (FLC) is predominantly covered in an agreement
tenement		including agreements or material issues with third parties	between Mr Peter Dunlop and Corazon Mining Limited whereby Corazon has
and land		such as joint ventures, partnerships, overriding royalties,	the option to acquire 100% of the project by meeting certain conditions. This
tenure status		native title interests, historical sites, wilderness or national	agreement was originally announced within a Company ASX announcement
		park and environmental settings.	dated 18 May 2010, with the most recent amendments to this agreement
		The security of the tenure held at the time of reporting along	presented in a Company ASX announcement dated 29 July 2015.
		with any known impediments to obtaining a licence to operate in the area.	The tenure includes multiple Mineral Claims as defined by the Provincial Government of Manitoba. All claims are currently in good standing.
			Corazon Mining works closely with First Nation groups and several government
			organizations responsible for mining and the environment. Work Permits are
			currently in place for the FLC and covers activities such as ground geophysics
			and land-based drilling.
Exploration		Acknowledgment and appraisal of exploration by other	Where exploration has been completed by other parties, those parties have
done by		parties.	been referenced in this document or within previous ASX announcements by
other parties			the Company. In particular refer to CZN ASX announcement dated 11 April
			2016.
Geology		Deposit type, geological setting and style of mineralisation.	Magmatic nickel-copper-cobalt sulphide deposits associated within
			mafic/ultramafic intrusive rock (gabbro related).
			Volcanogenic massive sulphide (VMS) deposits. Zinc dominant +/- lead,
			copper, silver and gold.

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Table 2: Checklist of Assessment and Reporting Criteria

23[rd] January, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria JORC Code explanation	Commentary
Drill hole Information  A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Drill Hole Survey Data Hole ID East North RL Dip Azim Depth (m) FLC-2017-01 370646 6295799 354 -60 020 75 FLC-2017-02 370915 6296179 359 -86 334 TBD Survey data presented in real-world grid system NAD 83 Zone 14
Data aggregation methods  In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	No data aggregation has been reported in this announcement.
Relationship between mineralisatio n widths and intercept lengths  These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	Typical Lynn Lake Ni-Cu-Co Magmatic Sulphide Deposits Known nickel-copper-cobalt magmatic sulphide deposits in the Lynn Lake Mining Centre are typically “pipe-like” in form, averaging between 80m and 120m in strike, 30m to 60m in width and with vertical extents of 100’s of metres. The historically mined deposits in the Lynn Lake area have been developed to a maximum depth of approximately 1,100 metres. Multiple sulphide pipe-like deposits have been identified and mined in the Lynn Lake area.

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Table 2: Checklist of Assessment and Reporting Criteria

23[rd] January, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Diagrams		Appropriate maps and sections (with scales) and tabulations	Appropriate diagrams have been included in the announcement.
		of intercepts should be included for any significant discovery
		being reported These should include, but not be limited to a
		plan view of drill hole collar locations and appropriate
		sectional views.
Balanced		Where comprehensive reporting of all Exploration Results is	This report tables early findings with respect to core drilling currently being
reporting		not practicable, representative reporting of both low and	undertake within the FLC at Lynn Lake.
		high grades and/or widths should be practiced to avoid
		misleading reporting of Exploration Results.
Other		Other exploration data, if meaningful and material, should be	The announcement contains results of current and past exploration programs
substantive		reported including (but not limited to): geological	including surface sampling, drilling, geophysics and geological mapping.
exploration		observations; geophysical survey results; geochemical
data		survey results; bulk samples – size and method of	Information regarding this work has been referenced in this document or within
		treatment; metallurgical test results; bulk density,	previous ASX announcements by the Company.
		groundwater, geotechnical and rock characteristics;
		potential deleterious or contaminating substances.
Further work		The nature and scale of planned further work (eg tests for	Drilling is currently on-going at Lynn Lake within the FLC prospect.
		lateral extensions or depth extensions or large-scale step-
		out drilling).
		Diagrams clearly highlighting the areas of possible
		extensions, including the main geological interpretations and
		future drilling areas, provided this information is not
		commercially sensitive.

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