CORAZON MINING LIMITED — Capital/Financing Update 2020

Jul 2, 2020

Proposed issue of securities

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Update Summary

Entity name

CORAZON MINING LIMITED

Announcement Type

Update to previous announcement

Date of this announcement

Friday July 3, 2020

Reason for update to a previous announcement

Appendix 3B is being updated for the purposes of applying for admission of the securities the subject of the Companys entitlement issue prospectus dated 3 July 2020 pursuant to section 723(3) of the Corporations Act 2001 (Cth)

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

CORAZON MINING LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ABN

Registration Number

87112898825

1.3 ASX issuer code

CZN

1.4 The announcement is

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Update/amendment to previous announcement

1.4a Reason for update to a previous announcement

Appendix 3B is being updated for the purposes of applying for admission of the securities the subject of the Companys entitlement issue prospectus dated 3 July 2020 pursuant to section 723(3) of the Corporations Act 2001 (Cth)

1.4b Date of previous announcement(s) to this update

Tuesday June 30, 2020

1.5 Date of this announcement

Friday July 3, 2020

1.6 The Proposed issue is:

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A standard +pro rata issue (non-renounceable or renounceable) A placement or other type of issue

1.6a The proposed standard +pro rata issue is:

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• Non-renounceable

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Part 3 - Details of proposed entitlement offer issue

Part 3A - Conditions

3A.1 - Are any of the following approvals required for the entitlement offer to be unconditional? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 3B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +Security Code and Description

CZN : ORDINARY FULLY PAID

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? Yes

If the entity has quoted company options, do the terms entitle option holders to participate on exercise? No

Details of +securities proposed to be issued

ASX +Security Code and Description

CZN : ORDINARY FULLY PAID

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Offer ratio (ratio to existing holdings at which the proposed +securities will be issued)

The quantity of additional +securities For a given quantity of +securities to be issued held 1 5

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What will be done with fractional Maximum Number of +securities entitlements? proposed to be issued Fractions rounded up to the next 481,979,191 whole number

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Purpose of the issue

Funds raised will be applied towards exploration activities at Lynn Lake Nickel-Copper-Cobalt Sulphide Project and the Mt Gilmore Project, general working capital and costs of the entitlements offer.

Offer price details for retail security holders

Issue Currency Offer Price per +security Estimated or Actual? Actual AUD - Australian Dollar AUD 0.00200 Oversubscription & Scale back details Are +security holders allowed to oversubscribe? Yes

Provide the oversubscription details

Security holders who wish to subscribe for securities in excess of their entitlements are invited to apply for securities under the shortfall offer

May a scale back be applied to this event? Yes

Provide the scale back details

If the number of shortfall securities applied for by the eligible shareholders exceeds the total shortfall, the shortfall will be allocated among applicants proportionate to their existing shareholdings.

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

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ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms	Will the entity be seeking quotation of the 'new' class of
of the proposed +securities are appropriate and	+securities on ASX?
equitable under listing rule 6.1?
No	No
ASX +Security Code	+Security Description
New class-code to be confirmed	Unlisted Options exercisable at $0.0035 each on or before
	30 June 2021

+Security Type Options

Offer ratio (ratio of attaching securities at which the new +securities will be issued)	Offer ratio (ratio of attaching securities at which the new +securities will be issued)
The quantity of attaching +securities to be issued	For a given quantity of the new +securities issued
1
	1
What will be done with fractional entitlements?	Maximum Number of +securities proposed to be issued
	481,979,191
Not applicable

Reason for the update of 'Maximum Number of +securities proposed to be issued'

Offer price details for retail security holders

Issue Currency	Offer Price per +security
AUD - Australian Dollar	AUD 0.00000
Estimated or Actual?
Actual

Oversubscription & Scale back details

Are +security holders allowed to oversubscribe? No

May a scale back be applied to this event? No

Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

Options details

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+Security Currency

AUD - Australian Dollar

Exercise Price

AUD 0.0035

Expiry date

Wednesday June 30, 2021

Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option

CZN : ORDINARY FULLY PAID

Please provide any further information relating to the principal terms of the +securities

Part 3C - Timetable

3C.1 +Record date

Thursday July 9, 2020

3C.2 Ex date

Wednesday July 8, 2020

3C.4 Record date

Thursday July 9, 2020

3C.5 Date on which offer documents will be sent to +security holders entitled to participate in the +pro rata issue

Tuesday July 14, 2020

3C.6 Offer closing date

Thursday July 23, 2020

3C.7 Last day to extend the offer closing date

Monday July 20, 2020

3C.9 Trading in new +securities commences on a deferred settlement basis Friday July 24, 2020

3C.10 Last day for entity to announce the results of the offer to ASX, including the number and percentage of +securities taken up by existing +security holders and any shortfall taken up by underwriters or other investors

Tuesday July 28, 2020

3C.11 Issue date

Thursday July 30, 2020

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3C.12 Date trading starts on a normal T+2 basis Friday July 31, 2020 3C.13 First settlement date of trades conducted on a +deferred settlement basis and on a normal T+2 basis Tuesday August 4, 2020 Part 3E - Fees and expenses 3E.1 Will there be a lead manager or broker to the proposed offer? No 3E.2 Is the proposed offer to be underwritten? No 3E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No 3E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer The Company may pay a commission of up to 6% to brokers who assist with the placement of any shortfall Part 3F - Further Information 3F.1 The purposes for which the entity intends to use the cash raised by the proposed issue Funds raised will be applied towards exploration activities at Lynn Lake Nickel-Copper-Cobalt Sulphide Project and the Mt Gilmore Project, general working capital and the costs of the entitlement offer. 3F.2 Will holdings on different registers or subregisters be aggregated for the purposes of determining entitlements to the issue? No 3F.3 Will the entity be changing its dividend/distribution policy if the proposed issue is successful? No

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3F.4 Countries in which the entity has security holders who will not be eligible to participate in the proposed issue UNITED KINGDOM OF GREAT BRITAIN AND NTH IRELAND CANADA REPUBLIC OF SINGAPORE PEOPLE'S REPUBLIC OF CHINA GERMANY THAILAND UNITED STATES OF AMERICA HONG KONG JAPAN MALAYSIA PEOPLE'S REPUBLIC OF BULGARIA

3F.5 Will the offer be made to eligible beneficiaries on whose behalf eligible nominees or custodians hold existing +securities No

3F.6 URL on the entity's website where investors can download information about the proposed issue

www.corazon.com.au

3F.7 Any other information the entity wishes to provide about the proposed issue

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the	7A.1 - Are any of the following approvals required for the	placement or other type of issue?	placement or other type of issue?
+Security holder approval
Court approval
Lodgement of court order	with +ASIC
ACCC approval
FIRB approval
Another approval/condition external to the entity
Yes
7A.1a Conditions
Approval/Condition	Date for determination	Is the date estimated or	** Approval
+Security holder approval	Thursday August 13, 2020	actual?	received/condition met?
		Estimated

Comments

Security holder approval required to issue the free attaching options to participants in the placement (details of which are set out below)

Part 7B - Issue details

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional Yes securities in a class that is already quoted or recorded by ASX)? Existing class

Details of +securities proposed to be issued

ASX +Security Code and Description

CZN : ORDINARY FULLY PAID

Maximum Number of +securities proposed to be issued

356,984,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

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Purpose of the issue

Funds raised will be applied towards exploration activities at Lynn Lake Nickel-Copper-Cobalt Sulphide Project and the Mt Gilmore Project, general working capital and costs of the placement.

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00200

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Attaching +Security

Is the proposed attaching security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional +securities in a class that is already quoted or recorded by ASX)? New class

Attaching +Security - New class (+securities in a class that is not yet quoted or recorded by ASX)

Details of attaching +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from ASX that the terms Will the entity be seeking quotation of the 'new' class of of the proposed +securities are appropriate and +securities on ASX? equitable under listing rule 6.1? No No ASX +Security Code +Security Description New class-code to be confirmed Unlisted Options exercisable at $0.0035 each on or before 30 June 2021

+Security Type

Options

Maximum Number of +securities proposed to be issued

356,984,000

Reason for the update of 'Maximum Number of +securities proposed to be issued'

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Offer price details for retail security holders In what currency is the cash consideration being paid? What is the issue price per +security? AUD - Australian Dollar AUD 0.00350 Oversubscription & Scale back details May a scale back be applied to this event? No Will all the +securities issued in this class rank equally in all respects from their issue date? Yes Options details +Security Currency AUD - Australian Dollar Exercise Price Expiry date AUD 0.0035 Wednesday June 30, 2021 Details of the existing class of +security that will be issued upon exercise or conversion of this new class of company option CZN : ORDINARY FULLY PAID Please provide any further information relating to the principal terms of the +securities Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? Existing class Details of +securities proposed to be issued ASX +Security Code and Description CZN : ORDINARY FULLY PAID Maximum Number of +securities proposed to be issued 4,500,000

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Reason for the update of 'Maximum Number of +securities proposed to be issued'

Purpose of the issue

Issued to the vendors of the Dunlop project area upon exercise of the Company's option to acquire a 100% interest in the project and transfer of tenements

Offer price details for retail security holders

In what currency is the cash What is the issue price per consideration being paid? +security? AUD - Australian Dollar AUD 0.00200

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Oversubscription & Scale back details

May a scale back be applied to this event? No

Part 7C - Timetable

7C.1 Proposed +issue date

Friday July 10, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

CZN Ordinary Shares 361,484,000

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

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7D.2 Is a party referred to in listing rule 10.11.1 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

7E.1 Will there be a lead manager or broker to the proposed issue? Yes

7E.1a Who is the lead manager/broker? Several brokers

7E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker? 6% commission 7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

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