CORAZON MINING LIMITED — Interim / Quarterly Report 2008

Jan 30, 2008

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QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2007

Highlights

• Exploration Agreement finalised with traditional owners at Gulf Creek, NSW

• Joint Venture Concluded for diamond tenements

• Data review for Quartz Circle identifies drill targets for upcoming drill programme

• Further strong copper and gold results from Yanco Glen

  • gold up to 2.37g/t, copper up to 14.2% and silver at 74g/t

• 99% Conversion Rate for Graynic Options and placement finalised

WA PROJECTS

Quartz Circle, Nullagine WA (Graynic 80%)

During the quarter a significant body of work was undertaken for the Quartz Circle project, including data compilation and interpretation. This review had included the integration of geophysical, geochemical and drill-hole datasets and re-processing of existing datasets and has added greatly to Graynic’s understanding of the project. Reprocessing has included three dimensional inversion modeling of ground gravity and magnetics and re-assay of drill sample pulps from holes testing the Emperor Prospect for an extensive suite of elements that will help define prospective alteration halos associated with the base metal mineralization.

A number of encouraging drill intersections from previous reported programmes, including ALCO019 17.74m@16.06% Zn from 46m and GMRC068 12m@5.48% Zn from 76m, show the area to have potential for significant VMS mineralization. By integrating the available datasets in 3D, Graynic believes a number of exciting drill targets remain untested.

Graynic is currently in the process of securing a drill rig to enable the next phase of testing, with some prospective zinc targets at the Emperor Prospect and gold targets at the Imperial and Igloo Prospects.

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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Diamond Tenements WA (Graynic 100%)

In December 2007 Graynic concluded a Joint Venture Agreement with King Leopard Diamonds Ltd covering Graynic’s diamond tenements in Western Australia. Under the terms of the agreement Graynic will receive 1 million shares and 1 million options in the Initial Placement Offering (“IPO”) of King Leopard Diamonds in transferring an 80% interest in tenements Walgidgee Hills E04/1551, Nookanbah E04/1620, Boodallana E45/2788, Napier Downs E04/1557 and E04/1558 that are currently held by Graynic. In addition, on successful listing of King Leopard Diamonds, Graynic will receive a $100,000 payment in recognition of the value of the tenements and Graynic’s expenditure to date.

Terms of the joint venture also include agreed exploration expenditure commitments, with King Leopard Diamonds to spend $200,000 on Walgidgee Hills E04/1551 and $100,000 on Nookanbah E04/1620, Boodallana E45/2788, Napier Downs E04/1557 and E04/1558 in the first 12 months after listing. Graynic will continue to hold a 20% interest in the tenements and have reached agreement with King Leopard Diamonds for a joint management arrangement for ongoing project management.

The joint venture with King Leopard Diamonds allows Graynic to focus on its base metals and bulk commodities experience, whilst retaining exposure to the highly prospective diamond tenements in Australia.

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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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NSW PROJECTS

Gulf Creek (Graynic 100%)

An induced polarization (“IP”) geophysical survey covering the historic mine workings and possible strike extensions to the mineralization at Gulf Creek is currently underway and due for completion in the first week of February. Preliminary data indicates an encouraging chargeable anomaly beneath the known lode position. Once the survey is complete, three dimensional inversion modeling will determine the strength and position of any potential targets. Graynic is currently working to secure a drill rig and implement a drilling programme that will test historically identified mineralization and any high-potential targets defined by the IP survey. Given current poor rig availability this programme should commence in the next three months.

During the quarter the Exploration Access Agreement was completed with the Nucoorilma Native Title claimants for Gulf Creek. A Section 31 Deed has also been executed by all parties and is in the process of being lodged with the NSW Department of Primary Industries for the Minister’s approval. This approval is necessary in advance of the drilling programme.

Yanco Glen (Graynic 100%)

Assay results from further rock chip sampling at Graynic’s Yanco Glen Project in NSW, have confirmed copper-gold mineralization along a strike length of 1.2km.

Sample ID	Easting	Northing	Copper (Cu) %	Gold (Au)g/t	Silver (Ag) g/t
CRSS0674	545806	6545329	0.2	0.04	0.5
CRSS0265	545578	6544852	17.95	0.29	65.3
CRSS0266	545614	6544879	3.77	0.32	12.9
CRSS0267	545684	6544988	14.35	0.11	8.3
CRSS0268	545710	6545092	10.65	0.14	5.1
CRSS0269	545778	6545233	10.25	1.6	8.7
CRSS0270	546179	6545990	7.51	2.87	21.7
CRSS0271	546253	6546249	7.44	3.53	3.1

The results were obtained from the Anaconda workings which are located in the northern portion of the project tenement, where historic near-surface mining of copper-bearing quartz veins has previously occurred. Results from previous rock chip sampling (AN001–AN007) conducted by Graynic were released to the Australian Stock Exchange (“ASX”) on 21 September 2007 and reported gold up to 2.37 g/t, copper up to 14.2% and silver at 74 g/t along a strike length of 20 meters. It is likely these results may have been enhanced by near-surface weathering. Soil sampling completed during the same program showed little surface dispersion away from the outcropping shear-hosted veins. Sample CRSS0674 is a stream sediment sample taken from a creek, upstream from the host structure intersection.

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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CORPORATE

Option Underwriting and Placement

During the quarter Graynic successfully completed its option conversion programme with 12,079,043 options converted out of a total of 12,219,643 options on issue. This was a conversion rate of 99% which delivered $2,416,058 in operating funds to Graynic. Combined with the placement completed in September through Indian Ocean Capital Pty Ltd, these funds will be used to progress Graynic’s current exploration and drilling programmes in WA and NSW. In addition Graynic is actively seeking to expand the number of quality projects in its portfolio.

Wolf Minerals Limited

In February 2007 Graynic transferred its interest in the tin and tungsten potential on the Yanco Glen Project in New South Wales to Wolf Minerals Limited (“Wolf”; ASX: WLF) in exchange for 2 million Wolf shares. During the quarter Wolf announced the acquisition of a world class Tungsten-Tin deposit in Hemerdon, United Kingdom. This major acquisition moves Wolf towards becoming a world class tungsten and tin producer and Graynic’s investment in Wolf offers a substantial investment to the company and its shareholders.

Enquiries: Bronwyn Barnes Managing Director 08 6364 0518 0417 093 256

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