CORAZON MINING LIMITED — Governance Information 2005

Jun 27, 2005

28.JUN.2005 11:11

ASX PERTH

NO.128

GRAYNIC METALS LIMITED SHARE TRADING POLICY

Background,

This share trading policy sets out the Company's policy regarding the trading in Company securities, which includes shares, options and any other security on issue from time to time. This policy is separate from and additional to the legal constraints imposed by the common law, the Corporations Act and ASX Listing Rules.

This policy applies to all Directors and employees of the Company and their associates (including spouses, children, family trusts and family companies) as well as contractors, consultants, advisers and auditors of the Company ("designated officers").

It is illegal to trade in the Company's securities while in possession of unpublished price sensitive information concerning the Company. Under the Corporations Act a person with inside information must not, and must not procure another person, to deal in the securities of a body corporate or enter into an agreement to deal in the securities of a body corporate. Inside information is defined in the Corporations Act as information that:

• is not generally available; and $\bullet$
• if generally available, a reasonable person would expect it to have a $\bullet$ material effect on the price or value of the securities of the body corporate.

General Prohibition on Insider Trading

All designated officers are prohibited from trading in the Company's securities while in the possession of unpublished price sensitive information concerning the In addition, while in possession of unpublished price sensitive company. information designated officers must not advise others to trade in the Company's securities or communicate the information to another person knowing that the person may use the information to trade in, or procure someone else to trade in, the Company's securities.

Unpublished price sensitive information is information regarding the Company, of which the market is not aware and that a reasonable person would expect to have a material effect on the price or value of the Company's securities, and mcludes.

• a proposed major acquisition or disposition; $\bullet$ .
• a significant business development or a proposed change in the nature of $\bullet$ the Company's business. $\bullet$
• details of material contracts that are being negotiated by the Company;
• potential litigation that would have a substantial effect on the Company; a proposed change in the share capital structure of the Company;
• a proposed change in the Company's dividend policy; and

a major change to the Board or senior management.

Notification of Proposed Trade in Company Securities Chairman

Prior to trading in (either buying or selling) the Company's securities, the Chairman must notify a non-executive Director of his/her intention to trade and confirm that he/she is not in possession of any unpublished price sensitive information.

Directors

Prior to trading in (either buying or selling) the Company's securities, Directors must notify the Chairman of their intention to trade and confirm that they are not in possession of any unpublished price sensitive information.

Employees

Employees other than senior management may freely trade in Graynic Metals shares, however they are reminded that the law applying to insider trading applies equally to them, as to the directors and senior management.

Any employees who have queries concerning the application of this policy should approach the Company Secretary.

Notification of Trade in Company Securities

Directors must also notify the Company Secretary of any trade in the Company's securities within 2 days of such trade occurring so that the Company Secretary can comply with the ASX Listing Rule 3.19A requirement to notify the ASX of any change in a notifiable interest held by a Director.

The Company Secretary will maintain a register of all trades and holdings in Company securities by Directors and senior management.