CORAZON MINING LIMITED — Capital/Financing Update 2020

Jan 20, 2020

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ASX ANNOUNCEMENT 21 JANUARY 2020
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ADDITIONAL HIGH-GRADE NICKEL DRILLING RESULTS AT LYNN LAKE FURTHER ENHANCES RESOURCE EXPANSION POTENTIAL

• Further excellent assay results have been returned from the recently completed drill program at the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Canada

• Mineralised high-grade nickel intervals include:

• “A Orebody”

• 37.8 m @ 1.68%Ni, 0.67%Cu, 0.050%Co from 10 metres; including

  • 22.6m @ 2.30%Ni, 0.82%Cu, 0.068%Co from 24.4 metres

• “E Orebody”

• 4.5 metres @ 1.17%Ni, 0.22%Cu, 0.029%Co from 25 metres

• 4.1 metres @ 2.09%Ni, 0.57%Cu, 0.073%Co from 26.9 metres

• These near-surface high-grade intersections strengthen the potential to add to Lynn Lake’s significant nickel-sulphide resource base

• Higher-grade intervals are typically supported by broad, anomalous zones of mineralisation

• All priority assays have been returned – plans for further drilling at the A Orebody and E Orebody and other targets are underway, as are development/ metallurgical studies

Corazon Mining Limited (ASX: CZN) (Corazon or Company) is pleased to announce additional assay results from its latest phase of drilling at its 100% owned Lynn Lake Nickel-Copper-Cobalt Sulphide Project (Lynn Lake or Project) in Manitoba, Canada.

Assay results have now been returned for all priority samples from the Company’s drilling program completed in December 2019. Multiple zones of broad, near-surface high-grade mineralisation were intersected in areas surrounding previously mined deposits within the Lynn Lake Mining Centre (Mining Centre), significantly increasing the potential to expand the Project’s already substantial existing resource base.

Drilling targeted two historical deposits - the A Orebody and E Orebody (Figure 1) – with seven holes for approximately 1,122 metres of diamond core drilling completed (Tables 2 and 3). Both the A Orebody and E Orebody areas have potential extensions to known mineralisation that have not been historically tested with drilling. These areas provide significant resource expansion potential and will be the subject of ongoing targeted exploration and drilling.

Additionally, there are multiple other areas within the Mining Centre, also yet to be drill tested, that may also have the potential for near surface mineralisation surrounding historical underground mining operations.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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Managing Director, Mr Brett Smith stated, “Historical mining at Lynn Lake focused largely on underground operations and the lack of near-surface exploration around the previously mined deposits has provided a substantial opportunity for Corazon to expand what is already a significant nickel sulphide resource base.

Our targeted drilling was designed to identify haloes of disseminated mineralisation around the mined deposits, and the results have been highly successful with the exceptional grades returned significantly exceeding expectations. In addition, the results have validated our targeting processes and paves the way for our ongoing, targeted exploration and drilling at Lynn Lake. “

Prospect	Hole	From (m)	Interval (m)	Ni%	Cu%	Co%
A Orebody	LL2019-01	16.4	7.0	0.62	0.37	0.022
	LL2019-02 Incl	10.0	37.8	1.68	0.67	0.050
		24.4	22.6	2.30	0.82	0.068
		95.8	7.3	0.75	0.37	0.020
	LL2019-03	15.0	8.8	0.65	0.85	0.017
		34.0	5.0	0.65	0.59	0.016
		41.0	4.0	0.52	0.43	0.015
E Orebody	LL2019-04 Incl	20.0	9.0	0.93	0.25	0.024
		25.0	4.5	1.17	0.22	0.029
		46.0	7.0	0.93	0.42	0.026
	LL2019-05	26.9	4.1	2.09	0.57	0.073
Farley East	LL2019-06 + 6A	No Significant Result Expected

Table 1 – Significant Intervals at +2 metres and greater than 0.50% Ni.

Detailed below is a summary of the drilling program and additional work being considered by the Company at Lynn Lake. Full details of the drilling and sampling program are presented in Table 3.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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Figure 1 – Drill hole location plan, with mined deposits (“Orebodies”) and target areas in the northern part of the Mining Centre (refer to Figure 5 for location)

DRILL PROGRAM SUMMARY

The Company’s recent exploration at Lynn Lake focused on defining additional areas of mineralisation with the potential to add to the Project’s significant existing resource base. Priority targets for the drilling program at Lynn Lake included:

• near-surface mineralisation;

• areas on-trend from historical mines; and

• areas adjacent to existing resources.

Corazon’s recent mining studies at Lynn Lake predominantly centred on nickel deposits at depths of more than 400 metres below surface. This work has highlighted the potential to define additional resources closer to the surface and adjacent to Lynn Lake’s historically mined areas. The initial testing of these areas was the focus for the recent drilling program.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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A total of seven holes were completed for approximately 1,122 metres of diamond core drilling (Table 2 and 3), mainly targeting the A Orebody and E Orebody areas (Figure 1 and 5). Several other near surface deposits within the large Mining Centre are yet to be considered for drill testing.

The Lynn Lake style of mineralisation is typical of mafic/ ultramafic intrusive (igneous) magmatic sulphide systems, hosting sulphides varying in concentrations from massive to weakly disseminated, commonly decreasing in content away from the intrusive centre or structural control.

This latest phase of drilling tested near surface expressions of mined areas that operated continuously for 24 years at an average grade of 1.02% nickel and 0.54% copper.

Highlight Results

“A Orebody”

• 37.8 metres @ 1.68%Ni, 0.67%Cu, 0.050%Co from 10 metres; including

  • 22.6 metres @ 2.30%Ni, 0.82%Cu, 0.068%Co from 24.4 metres

• “E Orebody”

• 4.5 metres @ 1.17%Ni, 0.22%Cu, 0.029%Co from 25 metres

• 4.1 metres @ 2.09%Ni, 0.57%Cu, 0.073%Co from 26.9 metres

A Orebody

Holes LL2019-01, LL2019-02 and LL2019-03 tested areas around the A Orebody, historically covered with infrastructure from the “A-Shaft” and processing plant area within the Lynn Lake Mining Centre (Figures 1, 2 and 5)). The A Orebody was mined underground between 1953 and 1965, producing 4.8 million tonnes at 1.07% nickel and 0.55% copper (cobalt not reported). While the massive suphide crown-pillar was mined to surface, it was expected that good mineralisation existed where historical infrastructure restricted surface mining.

The A Orebody is described as sulphide lenses within a subcircular, subvertical, mafic to ultramafic igneous intrusive pipe. The area being targeted with drilling at the A Orebody is approximately 80 metres by 220 metres, surrounding previously mined high-grade massive sulphide (stoped to surface and backfilled). The mined massive sulphide mineralisation at the A Orebody is described as “pipelike” with dimensions of approximately 40 metres by 120 metres.

Hole LL2019-02 intersected a high-grade interval of 22.6 metres @ 2.30%Ni, 0.82%Cu, 0.07%Co. This interval was within a broader zone of mineralisation including 37.8 metres @ 1.68%Ni, 0.67%Cu, 0.05%Co, from just 10 metres down hole. The area being tested is open to the south towards where the A Shaft and the “Discovery Outcrop” (outcropping nickel and copper sulphide mineralisation) is situated (Figure 2).

Hole LL2019-01 returned good marginal-grade material with 7 metres @ 0.62%Ni, 0.37%Cu, 0.02%Co, west of the main zone being targeted by LL2019-02. This hole was terminated on hitting the backfilled crown-pillar stope at 34.1 metres.

Hole LL2019-03 intersected good zones of marginal-grade material to the north of the crown-pillar stope, including three zones with intervals of four to nine metres downhole and grades of between 0.50% and 0.65% nickel. Mineralisation is this area is expected to be patchy in character, with grades increasing closer to the stopped area.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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Figure 2 – A Orebody drill hole location plan and cross section

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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E Orebody

Holes LL2019-04 and LL2019-05 tested areas around the E Orebody (Figure 3).

The E Orebody is described as structurally controlled late intrusive sulphide lenses within a gabbro host. The E Orebody was mined underground between 1957 and 1963, with production estimates of about 930,000 tonnes at 1.06% nickel and 0.48% copper (cobalt not reported). The footprint of the underground stope is interpreted to cover an area of approximately 15 metres by 100 metres. This stope does not come to surface.

This recent drilling has targeted the margins of the stope area, with the northern and southern extensions of the mineralisation previously mined, yet to be tested.

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Figure 3 – E Orebody drill hole location plan and cross section

Hole LL2019-04 tested the hangingwall mineralisation east of the stope and returned two good zones of mineralisation, 9m @ 0.93%Ni, 0.25%Cu, 0.02%Co (including 4.5m @ 1.17%Ni, 0.22%Cu,

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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0.03%Co) and 7m @ 0.93%Ni, 0.42%Cu, 0.03%Co. This hole intersected stope-fill at 64 metres and was terminated at 69 metres.

Hole LL2019-05 tested the footwall mineralisation west of the stope, returning 4.1m @ 2.09%Ni, 0.57%Cu, 0.07%Co. This hole was terminated when it intersected stope fill at 36 metres.

Drilling supports the drilling target area for the E Orebody of approximately 30 metres by 300 metres. When this mine was in operation, the northern extensions of the E Orebody trended beneath the mine camp, and as such, has not been drilled.

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Figure 4 – Lynn Lake drill core photos with hole Prop ID numbers (refer to Table 2)

Farley East

Holes LL2019-06 and LL2019-06A targeted an atypical geophysical feature east of the Farley Shaft in the central area of the A Plug (Figure 5). The geophysical feature is located in a similar setting to the D, G and Golf deposits, east of the main mine trend.

Hole LL2019-06 was abandoned due to poor drilling conditions. Hole LL2019-06A was the re-drill of hole LL2019-06. Selected samples from these holes have been submitted for analysis.

The geophysical anomaly has been attributed to glacial sands occupying a fault zone within the gabbro intrusion. Drilling intersected sands at approximately 280m metres downhole (in LL2019-06). It is possible that hydrostatic pressure from pre-existing glaciers forced fluidised sand material down the fault zone.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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HoleID	PropID	Easting	Northing	RL (m)	Depth (m)	AZI (degrees)	DIP (degrees)
LL2019-01	#5	375988	6303014	350	34.1	93	-53
LL2019-02	#7	376006.7	6302941	350	167	25	-45
LL2019-03	#6	376035.1	6303087	350	155	169	-45
LL2019-04	#11	375772.5	6302950	350	69	233	-46
LL2019-05	#10	375664.5	6302868	350	36	80	-45
LL2019-06	#4	375801	6301802	350	280	123	-55
LL2019-06A	#4	375801	6301802	350	381	123	-57

Table 2 – Drill hole collar data. Co-ordinate system NAD 83 Zone 14.

NEXT STEPS FOR LYNN LAKE

Near Mine Exploration - Resource Definition

The recent drilling program established the potential for the areas surrounding previously mined deposits to deliver near-surface tonnages. The Project currently hosts a significant resource and the potential for additional “easy start-up” tonnages would be enormously beneficial for any new mining operation at Lynn Lake. Accordingly, defining such tonnages is a key priority for the Company as it moves towards feasibility work.

There are also several other areas in the Mining Centre with the potential for near surface mineralisation surrounding historical underground mining operations. The Company is currently working on new drilling programs to test these areas, in addition to further work at the A Orebody and E Orebody prospects. Considering the amount of historical cultural features in the old mine area, drilling of these targets is best suited to times when there is no snow cover.

Regional Exploration

The recent targeting work within the Mining Centre has refined targeting methodologies, particularly with respect to the processing and interpretation of geophysical datasets. These new processes can easily and quickly be applied regionally in the exploration for new deposits.

A priority target area is the Fraser Lake Complex (FLC) (Figure 5) where drilling by Corazon has discovered a large magmatic sulphide system that is an analogy to the Lynn Lake deposits. The recent drilling in the Mining Centre, adjacent to mined massive sulphide deposits, reinforces the belief that the style and intensity of mineralisation intersected is no different to what we have drilled at FLC. The best results returned to date from FLC drilling include:

• 22.6 metres @ 0.70% Ni & 0.35% Cu from 258m (hole #14)

• 27 metres @ 0.37% Ni & 0.16% Cu from 30m (hole #16)

Exploration work at FLC is well underway and is expected to identify priority drill targets for consideration in the near term.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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Figure 5 – Lynn Lake Project outline, mafic intrusions and interpreted geology

Mining and Mineral Processing Studies

Studies currently in progress for Lynn Lake have identified areas where it is believed processes can be improved and costs reduced.

Historically, Lynn Lake was a large-tonnage low-cost mining operation. The current mining studies are looking to reduce mining and capital development costs for a potential underground operation via the implication of modern mining practices and new technology.

Recent metallurgical testwork has delivered exceptional results and there is a strong belief that further improvements can be made. Priority focus for this work will include the scoping and testwork for:

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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• Pre-flotation “sorting” of low-grade disseminated mineralisation to feed grade; and

• Onsite downstream processing options.

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Figure 6 – Lynn Lake Project Location

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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ABOUT CORAZON

Corazon Mining Limited is an Australian resource company with projects in Australia and Canada.

In Canada, Corazon has consolidated the entire historical Lynn Lake Nickel Copper Cobalt Mining Centre in the province of Manitoba. It is the first time Lynn Lake has been under the control of one company since mine closure in 1976.

Lynn Lake presents Corazon with a major development opportunity - one which is becoming increasingly prospective as a result of recent increases in the value of both nickel and cobalt metals, and their expected strong demand outlooks associated with their core use in the emerging global electric vehicle (EV) industry.

In Australia, Corazon has recently increased its interest in the Mt Gilmore Cobalt Copper Gold Sulphide Project located in New South Wales, which hosts the Cobalt Ridge Deposit, a unique highgrade cobalt-dominant sulphide deposit.

Mt Gilmore is a recently recognised, regionally substantive hydrothermal system with extensive cobalt, copper and gold anomalism. The Company has recently completed definition drilling at the Cobalt Ridge Deposit and is currently identifying new areas prospective for additional Cobalt Ridge lookalike deposits.

Both Lynn Lake and Mt Gilmore place Corazon in a strong position to take advantage of the growing demand for commodities critically required for the booming rechargeable battery sector.

ENDS

The announcement has been authorised by Brett Smith on behalf of Corazon Mining Limited.

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

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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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 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. Smith 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.

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.

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Level 3, 33 Ord St, West Perth, W.A. 6005 | PO Box 8187, Subiaco East, W.A. 6008 Ph: +61 (8) 6142 6366 | info@corazon.com.au | www.corazon.com.au | ASX: CZN

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (eg cut channels, random	Half core is sampled on the basis of geology. Minimum sample interval of down
techniques	chips, or specific specialised industry standard	to 6cm has been completed, based on geological criteria. Generally sampling
	measurement tools appropriate to the minerals under	completed is 1.0m through mineralised zones and a maximum of 1.5m
	investigation, such as down hole gamma sondes, or	elsewhere. Not all core is sampled.
	handheld XRF instruments, etc). These examples should
	not be taken as limiting the broad meaning of sampling.	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.
	Include reference to measures taken to ensure sample	Downhole depths are identified and labelled by the drilling company on core-
	representivity and the appropriate calibration of any	blocks inserted in the core trays and reconciled by the Geologist in charge of
	measurement tools or systems used.	the program.
		Sampling has been carried out using industry standard practices that are
		appropriate for the style of mineralisation being tested.
	Aspects of the determination of mineralisation that are	Sampling has been undertaken with regards to defining the statistically
	Material to the Public Report.	anomalous lower bounds of mineralisation for the style of mineralisation being
		tested. The criteria used to define mineralisation and anomalous or significant
	In cases where ‘industry standard’ work has been done this	mineralisation within the report is specified.
	would be relatively simple (eg ‘reverse circulation drilling
	was used to obtain 1 m samples from which 3 kg was	Lynn Lake includes nickel, copper and cobalt sulphide mineralisation that has
	pulverised to produce a 30 g charge for fire assay’). In other	historically been mined and processed to metal concentrates. The
	cases more explanation may be required, such as where	determination of mineralisation utilizes industry standard exploration techniques
	there is coarse gold that has inherent sampling problems.	and are defined within this table.
	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 from Ontario,
techniques	rotary air blast, auger, Bangka, sonic, etc) and details (eg	utilizing a skid mounted Boyles BBS 37. Rod lengths are 3m, 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 900 metres

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
Drill sample	Method of recording and assessing core and chip sample	Recovery of the core drilling is typically excellent (+99%). Ground conditions
recovery	recoveries and results assessed.	and core recovery at Lynn Lake are very good.
	Measures taken to maximise sample recovery and ensure	The drilling company takes responsibility for core recoveries, with instances of
	representative nature of the samples.	core loss (poor recovery) being immediately reported to the supervising
		geologist. Instances of poor core recovery are documented by the drilling
		company and by the geologists/technicians during logging of the core.
	Whether a relationship exists between sample recovery and	No sample bias has been observed. Areas adjected to historical mining
	grade and whether sample bias may have occurred due to	operations may be broken and core loss may occur drilling close to old stopes.
	preferential loss/gain of fine/coarse material.
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.	Logging is conducted by a qualified geologist and to ensure consistency, is overseen by the Company’s Chief Geologist.
		Logging is of a standard that supports appropriate Mineral Resource
		estimations, mining studies and metallurgical studies to be undertaken.
	Whether logging is qualitative or quantitative in nature. Core	Core logging records both the qualitative and quantitative aspects of the
	(or costean, channel, etc) photography.	geology and mineralisation. Information recorded from logging are both
		measurable and descriptive. This includes (but is not restricted to) recording of
		lithology, alteration, mineralogy, weathering characteristics, geotechnical and
		structural features, textural and interpretive information.
	The total length and percentage of the relevant intersections	All drill holes are logged in full.
	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	core taken.
techniques
and sample
preparation
	If non-core, whether riffled, tube sampled, rotary split, etc	Not applicable for core drilling.

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Table 3: Checklist of Assessment and Reporting Criteria

21[st] January 2020

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
	and whether sampled wet or dry.
	For all sample types, the nature, quality and	Samples are transported to TSL Laboratories in Saskatoon for sample
	appropriateness of the sample preparation technique.	preparation, including total sample crushing and pulverising to 80% passing 75
		microns. TSL complete an initial analysis for nickel, copper and cobalt using
		multielement analysis using ICP-MS with a 4 acid digest (30 gram samples).
		Based on the initial assay results from TSL, it is expected selected samples will
		be forwarded to ACME Laboratories in Vancouver for additional multielement
		analysis using ICP-MS with a 4 acid digest (30 gram samples). A total of 37
		elements are tested for (ACME method code AQ525).
		Both TSL and ACME are accredited Canadian laboratories.
	Quality control procedures adopted for all sub-sampling	Quality control measures include sample duplicates (taken as an additional split
	stages to maximise representivity of samples.	in the Lab from the coarse reject sample), CANMET certified reference
		materials (standards) and silica blanks. Duplicates and silica blanks are
		taken/inserted at a minimum of one in 30 samples. Standards are inserted at a
		minimum rate of one in 30 samples, or at a greater frequency through
		mineralised zones.
		Assay results at plus 1% nickel are repeated as “check assays” with the
		inclusion of higher grade CANMET standards.
		The laboratory (TSL and ACME) also have their own duplicate, repeat and
		standard testing protocols, with the results reported to the Company.
		Sample security, shipment and transport is overseen by the senior geologist in
		charge of the drilling program.
	Measures taken to ensure that the sampling is	Quality control measures include core duplicates (1/4 core),
	representative of the in situ material collected, including for
	instance results for field duplicate/second-half sampling.

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
	Whether sample sizes are appropriate to the grain size of	Sample sizes are considered appropriate for the rock type and style of
	the material being sampled.	mineralisation at Lynn Lake.
Quality of	The nature, quality and appropriateness of the assaying and	The analytical techniques used for Lynn Lake are considered appropriate for
assay data	laboratory procedures used and whether the technique is	the mineralisation type.
and laboratory tests	considered partial or total.	Initial assaying for nickel, copper and cobalt is completed by TSL Laboratories in Saskatoon multielement analysis using ICP-MS with a 4 acid digest (30 gram samples).
		Additional selected samples may be transported to ACME Laboratories in
		Vancouver for analysis. Analysis includes a multi-element analysis using ICP-
		MS with a 4 acid digest (30 gram samples). A total of 37 elements are tested
		for (ACME method code AQ525).
		Both TSL and ACME are accredited Canadian laboratories.
	For geophysical tools, spectrometers, handheld XRF	A hand-held XRF (Niton) may used for the purposes of assisting with mineral
	instruments, etc, the parameters used in determining the	identification. Such results are not reported.
	analysis including instrument make and model, reading
	times, calibrations factors applied and their derivation, etc.
	Nature of quality control procedures adopted (eg standards,	Quality control measures include sample duplicates (taken as an additional split
	blanks, duplicates, external laboratory checks) and whether	in the Lab from the coarse reject sample), CANMET certified reference
	acceptable levels of accuracy (ie lack of bias) and precision	materials (standards) and silica blanks. Duplicates and silica blanks are
	have been established.	taken/inserted at a minimum of one in 30 samples. Standards are inserted at a
		minimum rate of one in 30 samples, or at a greater frequency through
		mineralised zones.
		The laboratory (TSL and ACME) also have their own duplicate, repeat and
		standard testing protocols, with the results reported to the Company.
		Sample security, shipment and transport is overseen by the senior geologist in
		charge of the drilling program.

4

Table 3: Checklist of Assessment and Reporting Criteria

21[st] January 2020

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
Verification	The verification of significant intersections by either	Drilling is being managed by a senior geologist with experience in deposits
of sampling	independent or alternative company personnel.	consistent with the style of mineralisation at Lynn Lake. All work is overseen
and		by Corazon’s consultant and nickel sulphide expert Dr Larry Hulbert.
assaying
		The assay results are consistent with expectations from the geological logging.
	The use of twinned holes.	The reported drill holes have not been twinned.
	Documentation of primary data, data entry procedures, data	All data is captured electronically on site and transferred to backup facilities.
	verification, data storage (physical and electronic) protocols.	All paper information is captured electronically and stored digitally and in paper
		format.
	Discuss any adjustment to assay data.	No adjustment to primary assaying has been undertaken. For reporting
		significant intersections, all averaging over intervals is calculated on an
		individual interval weighted average basis.
Location of	Accuracy and quality of surveys used to locate drill holes	Drill holes were positioned using a hand-held Garmin GPS with an assumed
data points	(collar and down-hole surveys), trenches, mine workings	accuracy of +5 metres and a Reflex Northfinder APS, with sub-metre.
	and other locations used in Mineral Resource estimation.	Down-hole surveys were completed with a Gyro supplied and operated by the
		Vital Drilling.
	Specification of the grid system used.	The survey data is recorded in real-world co-ordinate system NAD 83 Zone 14.
	Quality and adequacy of topographic control.	Lynn Lake is an historical mining centre. All past drilling has been recorded by
		surveyors on a Local Mine Grid. All drilling has been transformed to real-world
		coordinate system NAD 83 Zone 14. The “Z-Values” for surface drilling have
		been adjusted and pegged to the surface DTM provided by a 2008 VTEM
		geophysical survey. All underground drilling has been corrected such that drill
		holes have elevations defined by underground plans and sections, and
		subsequently transformed to elevations defined by real-world coordinate
		system NAD 83 Zone 14.

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Table 3: Checklist of Assessment and Reporting Criteria

21[st] January 2020

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
		The Company considers the accuracy of the x, y and z coordinates of the
		underground drilling to be very good. While the x and y coordinates for the
		surface drilling are very good, a more accurate and up to date DTM is required
		to define the z values.
Data spacing	Data spacing for reporting of Exploration Results.	Drill holes are widely space and targeting areas of interest defined from
and		historical drilling, past mining and geophysical trends defined by Corazon
distribution		Mining Limited.
		This drilling is intended to identify areas of interest for future resource definition
		drilling.
	Whether the data spacing and distribution is sufficient to	This exploration is reconnaissance in nature and as such will not result in the
	establish the degree of geological and grade continuity	immediate definition of a mineral resource estimation.
	appropriate for the Mineral Resource and Ore Reserve
	estimation procedure(s) and classifications applied.
	Whether sample compositing has been applied.	No compositing was applied.
Orientation	Whether the orientation of sampling achieves unbiased	Drill holes are widely space and targeted at individual areas of interest and
of data in	sampling of possible structures and the extent to which this	geophysical anomalies.
relation to geological structure	is known, considering the deposit type.	Azimuths and dips are variable, dependent on the targets being tested. Drilling attempts to intersect the targets normal to the assumed dominant trend. Positioning and targeting of drilling around historical workings also needs to
		consider access complexities and the targeting of drill holes such that voids are
		avoided.
		The Lynn Lake deposit are described as “pipe-like bodies” that can be
		influenced by controlling structures.
		There is no data that supports a bias for the sampling has been established.
	If the relationship between the drilling orientation and the	The is widely spaced and the orientation of drilling and key mineralised
	orientation of key mineralised structures is considered to	structures is not considered to have introduced a sampling bias.
	have introduced a sampling bias, this should be assessed and reported if material.	The Lynn Lake deposit are described as “pipe-like bodies” that can be influenced by controlling structures. Drilling for the reported program attempts
		to test areas adjacent to historical infrastructure and mining. Reported

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
		mineralised intervals may not be defined as “true widths”. Where possible,
		information regarding true widths is provided.
Sample	The measures taken to ensure sample security.	Sample security on site is overseen by the senior geologist in charge of the
security		drilling program.
		Individual samples are collected in plastic bags, before being bundled together
		into sealed in large PVC bags and sealed with security tags for transport to the
		laboratory via a recognised freight service.
Audits or	The results of any audits or reviews of sampling techniques	Industry standard duplicate sampling and submission of certified blank and
reviews	and data.	standard samples have been undertaken.
		At this stage, no audits or reviews have been conducted.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	Type, reference name/number, location and ownership	The areas drilled are predominantly covered in an agreement between Victory
tenement	including agreements or material issues with third parties	Nickel Inc and Corazon Mining Limited whereby Corazon has acquired 100%
and land	such as joint ventures, partnerships, overriding royalties,	of the project and maintains a trailing expenditure commitment. 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 5 November 2014, with the transaction completed and announced on the
		ASX at 1 April 2015. Victory Nickel Inc maintains a production royalty over this
		tenure.
		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 land-based drilling.

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Criteria JORC Code explanation	Commentary
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The tenure includes multiple Mineral Claims, within the historical mining centre, as defined by the Provincial Government of Manitoba. All claims are currently in good standing. Work Permits are in place for the work being completed. There are no impediments in maintaining Corazon’s rights over this project.
Exploration done by other parties Acknowledgment and appraisal of exploration by other parties.	Where exploration has been completed by other parties, those parties have been referenced in this document or within previous ASX announcements by the Company. In particular refer to CZN ASX announcement dated 11 April 2016. Lynn Lake is an historical mining centre, discovered in the late 1940’s, explored and operated as a mine by the company Sherritt Gordon up until 1976. Subsequent to mine closure, the tenure has been in part owned by multiple parties. Corazon has consolidated the mining centre and all prospective exploration ground, for the first time since mine closure in 1976.
Geology Deposit type, geological setting and style of mineralisation.	Greenstone hosted magmatic nickel-copper-cobalt sulphide deposits associated within mafic/ultramafic intrusives (gabbro related). Volcanogenic massive sulphide (VMS) deposits also exist in the project area. These are zinc dominant, with lesser amounts of lead, copper, silver and gold.
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.	Drill Hole CollarSurveyData HoleID PropID Easting Northing RL (m) Depth (m) AZI (degrees) DIP (degrees) LL2019-01 #5 375988 6303014 350 34.1 93 -53 LL2019-02 #7 376006.7 6302941 350 167 25 -45 LL2019-03 #6 376035.1 6303087 350 155 169 -45 LL2019-04 #11 375772.5 6302950 350 69 233 -46 LL2019-05 #10 375664.5 6302868 350 36 80 -45 LL2019-06 #4 375801 6301802 350 280 123 -55 LL2019-06A #4 375801 6301802 350 381 123 -57

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
		Survey data presented in real-world grid system NAD 83 Zone 14. Down-hole
		survey information is not considered material and has not been provided.
	If the exclusion of this information is justified on the basis	Material information not included in the table above includes the “down hole
	that the information is not Material and this exclusion does	length and interception depth”. This information has been provided in table
	not detract from the understanding of the report, the	form in the body of the announcement.
	Competent Person should clearly explain why this is the case.	Downhole survey data is not reported within and is not considered material to this report.
		Reported mineralised intervals may not be defined as “true widths”. Where
		possible, information regarding true widths is provided.
Data	In reporting Exploration Results, weighting averaging	No data aggregation has been reported in this announcement and no
aggregation	techniques, maximum and/or minimum grade truncations	adjustment to primary assaying has been undertaken.
methods	(eg cutting of high grades) and cut-off grades are usually Material and should be stated.	For reporting significant intersections, all averaging over intervals is calculated on an individual interval weighted average basis. Parametres and criteria for
		calculating intervals are defined within the notes of tables presented.
		Individual nickel grades are presented on the drill hole section provided within
		the report.
	Where aggregate intercepts incorporate short lengths of	All averaging over intervals is calculated on an individual interval weighted
	high grade results and longer lengths of low grade results,	average basis from the primary (initial) assay data. No bottom-cuts or top-cuts
	the procedure used for such aggregation should be stated	have been applied.
	and some typical examples of such aggregations should be shown in detail.	Parametres and criteria for calculating intervals are defined within the notes of tables presented.
	The assumptions used for any reporting of metal equivalent	Metal equivalent values are not reported.
	values should be clearly stated.
Relationship	These relationships are particularly important in the	Typical Lynn Lake Ni-Cu-Co Magmatic Sulphide Deposits
between mineralisatio	reporting of Exploration Results.	Known nickel-copper-cobalt magmatic sulphide deposits in the Lynn Lake MiningCentre are typically“pipe-like” in form,averagingbetween 80m and

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Table 3: Checklist of Assessment and Reporting Criteria

21[st] January 2020

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
n widths and		120m in strike, 30m to 60m in width and with vertical extents of 100’s of
intercept		metres. The historically mined deposits in the Lynn Lake area have been
lengths		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. The core of these bodies can be massive sulphide bodies or
		sulphide breccia bodies, grading out in sulphide intensity to weakly
		disseminated at the margins.
	If the geometry of the mineralisation with respect to the drill	Azimuths and dips of the drill holes are variable, dependent on the targets
	hole angle is known, its nature should be reported.	being tested.
		The Lynn Lake deposit are described as “pipe-like bodies” that can be
		influenced by controlling structures. Drilling for the reported program attempts
		to test areas adjacent to historical infrastructure and mining. Reported
		mineralised intervals may not be defined as “true widths”. Where possible,
		information regarding true widths is provided.
	If it is not known and only the down hole lengths are	This report identifies the down hole lengths of mineralisation intersected in the
	reported, there should be a clear statement to this effect (eg	drilling. Reference within the body of the report may define interpreted true
	‘down hole length, true width not known’).	widths of mineralisation.
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 results of the interpreted mineralised zone intersected by the
reporting	not practicable, representative reporting of both low and	drilling. Results include the broad lower-grade interval as well as narrow high-
	high grades and/or widths should be practiced to avoid	grade intervals.
	misleading reporting of Exploration Results.	Parametres and criteria for calculating intervals are defined within the notes of
		tables presented.

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21[st] January 2020

Table 3: Checklist of Assessment and Reporting Criteria

Core Drilling - Lynn Lake Project, Canada.

Criteria	JORC Code explanation	Commentary
Other	Other exploration data, if meaningful and material, should be	The Lynn Lake project has been explored for more than 75 years and was
substantive	reported including (but not limited to): geological	mined for more than 24 years. There exists an enormous amount of historical
exploration	observations; geophysical survey results; geochemical	data available to the company.
data	survey results; bulk samples – size and method of
	treatment; metallurgical test results; bulk density,	This announcement only contains results for the current exploration program at
	groundwater, geotechnical and rock characteristics;	Lynn Lake. Historical exploration results and mining data are referenced if
	potential deleterious or contaminating substances.	considered material to this announcement.
Further work	The nature and scale of planned further work (eg tests for	The results presented in this announcement support the potential for the
	lateral extensions or depth extensions or large-scale step-	definition of near surface mineralisation within the mining centre, that could add
	out drilling).	to the resource estimate for the Lynn Lake Project.
		Such mineralisation would be considered beneficial for any future mining
		operation. Resource definition style drilling of these areas will be tabled for
		consideration at a future date.
	Diagrams clearly highlighting the areas of possible	All relevant diagrams have been presented in this report.
	extensions, including the main geological interpretations and
	future drilling areas, provided this information is not
	commercially sensitive.

11