CORAZON MINING LIMITED — Interim / Quarterly Report 2008

Apr 28, 2008

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QUARTERLY REPORT FOR THE PERIOD ENDING 31 MARCH 2008

Highlights

• Field programme at Quartz Circle Project supports planned drilling programme

• High potential drill targets identified and all approvals granted to proceed with drill programme at Gulf Creek Project

• Drill programme at Wertago Project (joint venture with Proto Resources and Investments, ASX: PRW) completed

• Continued review of new project opportunities that present appropriate opportunities to increase shareholder value

WA PROJECTS

Quartz Circle, Nullagine WA (Graynic 80%)

Following the update provided in the December 2007 Quarterly Report, work continued during this quarter on data compilation and interpretation for Graynic’s Quartz Circle Project. As part of the review a field trip was completed in March 2008 which included detailed surface sample analysis using a Niton® portable XRF analyser over the Emperor zinc Prospect and re-logging of diamond drill core from Emperor and Igloo copper Prospect.

The results of this work are currently under review prior to a release to the market.

Progress has been made with regards to securing a drill rig for the drill programme at Quartz Circle and Graynic expects to announce the commencement of a drilling programme shortly. The drill programme will enable the next phase of testing, with some prospective zinc targets at the Emperor Prospect and gold targets at the Imperial and Igloo Prospects.

NSW PROJECTS

Gulf Creek (Graynic 100%)

During the quarter Graynic defined high potential drill targets at its Gulf Creek Project in New South Wales after an induced polarization (“IP”) geophysical survey produced encouraging chargeable anomalism associated with the known mineralized horizon.

Development of both two and three dimensional inversion models has shown the known mineralized horizon to be associated with a chargeable response. The models have highlighted a zone of higher chargeability with a northwesterly plunge beyond the area previously mined, while a moderately chargeable zone appears to have been fault-offset to the southeast.

Graynic Metals Limited ACN : 112 898 825 ASX:GYN

Suite 5, Level 1, 350 Hay St, Subiaco, Western Australia, 6008. PO Box 935, West Perth, WA, 6872 Phone: 08 6364 0518 Fax: 08 6210 1872

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The IP has also identified chargeable anomalies associated with minor surface workings on another stratigraphic horizon 200m to the northeast of the historic Gulf Creek workings.

In addition to the above exploration activities, Graynic has now received the completed Section 31 Deed from the NSW Department of Primary Industries. Combined with the Exploration Access Agreement finalised with the claimants in December 2007, Graynic now has all approvals necessary to proceed with a drilling programme for the Gulf Creek Project.

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Wertago (Joint Venture with Proto Resources and Investments (ASX: PRW; “Proto”)

The Wertago Project is a joint venture between Proto and Graynic, where Proto can earn 60% of the project by spending $500,000 over 18 months. Proto also has an option to earn an additional 30% of the project by spending an additional $500,000 on exploration and the issue of 500,000 shares in Proto to Graynic. Proto can elect to leave the joint venture after drilling is completed.

During the quarter Proto provided an update to the ASX that outlined activities Proto had completed for Wertago. Proto has re-logged and assayed the historical drill holes for Wertago, which revealed the presence of interesting alteration, along with traces of economic minerals including copper and silver.

Independent assessment of these results concluded mineralisation is likely of an Epithermal or Volcanic Massive Sulphide (VMS) style. In early 2008 Proto contracted Quantec Geoscience to collect a 20 km moving loop electromagnetic survey (SMARTEM B field) centered over anomalies defined from an earlier VTEM electromagnet survey contracted by Graynic in late 2006.

Graynic Metals Limited ACN : 112 898 825 ASX:GYN

Suite 5, Level 1, 350 Hay St, Subiaco, Western Australia, 6008. PO Box 935, West Perth, WA, 6872 Phone: 08 6364 0518 Fax: 08 6210 1872

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The SMARTEM survey confirmed a number of the airborne electromagnetic anomalies associated with historic workings along with a number of new anomalies associated with a large magnetic anomaly located just north of the Wertago copper field.

Interpretation defined 12 targets from the SMARTEM survey however only seven were selected for follow up, based predominantly on location and response strength. Proto completed a seven hole Reverse Circulation (“RC”) drill programme during the quarter and is awaiting the results of geochemical analysis.

[Note: The information for the Wertago Project that relates to Exploration Results is based on information compiled by Andrew Johnstone who is a Fellow of the Financial Services Institute of Australasia, members of both the Australian and American Societies of Exploration Geophysicists, and member of the Australasian Institute of Geoscientists (AIG). Mr Johnstone provides exploration management services to Proto Resources & Investments Ltd. Mr Johnstone has extensive qualifications and experience in 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Johnstone consents to the inclusion in the report of the matters based on information provided by him and in the form and context in which it appears.]

CORPORATE

Strategic Direction

As outlined to shareholders in late 2007, Graynic’s focus over the past 6 months has been the implementation of a data review and exploration programmes for its existing projects to fully understand the value of the assets held by the Company. With programmes now well underway for Graynic’s projects at Quartz Circle, Gulf Creek and Yanco Glen, the Company is now actively seeking exposure to further projects that present appropriate opportunities to increase shareholder value.

Graynic continues to review opportunities presented to the Company and has also recently implemented a project generation strategy targeting particular commodity type, exploration pipeline stage and region. During the quarter Graynic assessed a number of projects in Australia and overseas as part of the Company’s strategy of identifying undervalued projects that fit within its strategy framework.

Corporate Matters

During the quarter Graynic had a limited exposure to failed stock broking house Opes Prime. This was not as a result of any holdings held by Graynic directors. Of the 1,207,434 shares (representing less than 2.2% of the company’s issued shares) that had been held through Opes Prime, the majority have been sold on market.

Graynic have been advised by Goldman Sachs that only 240,000 shares remain to be sold and that the remaining parcel of shares is currently unavailable for sale as they have been lent to a third party and “short sold”.

Graynic Metals Limited ACN : 112 898 825 ASX:GYN

Suite 5, Level 1, 350 Hay St, Subiaco, Western Australia, 6008. PO Box 935, West Perth, WA, 6872 Phone: 08 6364 0518 Fax: 08 6210 1872

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Graynic awaits clarification as to the future of this small parcel of shares. Graynic considers that any potential exposure of its issued shares through Opes Prime has been resolved. Graynic confirms that none of its securities were involved in Lift Capital Partners Pty Limited and LIFT Capital Nominees No.1 Pty Limited.

Graynic would like to thank all of its existing shareholders for their support during the current market turbulence.

Enquiries: Bronwyn Barnes James Moses Managing Director Fortbridge Consulting 08 6364 0518 0420 991 574 0417 093 256 James.moses@fortbridge.com bronwyn@graynicmetals.com.au www.graynicmetals.com.au

About Graynic Metals Limited

Graynic Metals Ltd is committed to increasing shareholder wealth through the acquisition, exploration and development of base metal mineral resources throughout Australia. The Company has key project areas in Western Australia and New South Wales within mineral provinces that have demonstrated copper, lead, zinc, nickel and gold mineralisation.

Current exploration targets include locating additional high grade resources adjacent to existing resources, testing of historic workings, drill testing of significant surface geochemical anomalies and the drilling of obvious strike and depth extensions of existing anomalous drilling intersections. Each project area has a significant land position which allows for further growth opportunities should exploration be successful.

Graynic Metals Limited ACN : 112 898 825 ASX:GYN Suite 5, Level 1, 350 Hay St, Subiaco, Western Australia, 6008. PO Box 935, West Perth, WA, 6872 Phone: 08 6364 0518 Fax: 08 6210 1872