CORAZON MINING LIMITED — Capital/Financing Update 2018

Jan 31, 2018

==> picture [594 x 96] intentionally omitted <==

----- Start of picture text -----

ASX ANNOUNCEMENT 1 [st] February 2018
----- End of picture text -----

DRILLING TO COMMENCE AT FRASER LAKE

• New priority drill targets confirmed at the Fraser Lake Complex in Lynn Lake, Canada

• High-impact drilling to commence shortly

• –

• Access tracks and drill pads completed and drill rig is on site additional personnel currently being mobilised to site

• Exciting new drill targets generated from Corazon’s 2017 exploration season

• Recently completed $3.4M Placement fully funds the Company’s planned fieldwork at the FLC and also at the Mt Gilmore Cobalt-Copper-Gold Project in NSW

• Ongoing exploration results to be released as they become available

Corazon Mining Limited (ASX: CZN) ( Corazon or Company ) is pleased to announce that the next phase of drilling at the Fraser Lake Complex (“FLC”), located just five kilometers south of its 100% owned Lynn Lake Nickel-Copper-Cobalt Mining Centre in Canada, is scheduled to commence this month.

The Company advises that preparation for drilling at the FLC is nearing completion and that drilling is expected to begin the week commencing Monday, 12 February. Access tracks and drill pads have been completed in preparation for drilling, and the drill rig is on site with personnel currently being mobilised.

Corazon has systematically explored the FLC since December 2016; with activities including drilling, ground geophysics, downhole geophysics and geochemistry. The large amount of data generated from this targeted exploration has produced geophysical and geochemical models supporting the Company’s view that the FLC has the potential to host significant nickel-copper-cobalt sulphide deposits.

New priority drill targets have been confirmed from the Company’s 2017 fieldwork programs and will be drilled in this phase of drilling.

The initial drill target is a deeply rooted, funnel-shaped, strongly magnetic feature (Figure 1), with similar characteristics to the nearby EL Mine Deposit (a high-grade sulphide breccia pipe within the nearby historic Mining Centre).

Capital Raise complete

Corazon’s Placement, announced 24 January 2018, has now been successfully completed with settlement having occurred and Placement shares allocated. The funds raised fully fund the Company’s next phase of exploration at its two flagship projects, the Cobalt Ridge deposit within Mt Gilmore Cobalt-Copper-Gold Project ( Mt Gilmore ) in New South Wales and the Fraser Lake Complex ( FLC ) within the Lynn Lake Nickel-Copper-Cobalt Project ( Lynn Lake ) in Canada.

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

1

==> picture [594 x 96] intentionally omitted <==

==> picture [337 x 635] intentionally omitted <==

Figure 1 – Top – Inverted ground magnetic image cross-section, with 2017 drill holes and 2018 proposed drilling. Bottom – IP Chargeability Image defining the Matrix Trend high chargeability anomaly and cross-section location.

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

2

==> picture [594 x 96] intentionally omitted <==

==> picture [368 x 418] intentionally omitted <==

Figure 2 – Access tracks and drill pads for Fraser Lake drilling completed

END .

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

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

3

==> picture [594 x 96] intentionally omitted <==

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 that 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.

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.

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

The Company believes that it has a reasonable basis for making the forward-looking Statements in the announcement based on the information contained in this and previous ASX announcements.

The Company is not aware of any new information or data that materially affects the information included in this ASX release, and the Company confirms that, to the best of its knowledge, all material assumptions and technical parameters underpinning the exploration results in this release continue to apply and have not materially changed.

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

4