CORAZON MINING LIMITED — Interim / Quarterly Report 2009

Oct 28, 2009

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Graynic Quarterly Report

For the three months ending 30 September 2009

Key Points

• 1 Joint Venture Farm‐out Agreement signed with Great Western Metals Limited over Wertago Project in New South Wales.

• 2 Changes to management and re‐evaluation of company acquisition focus. As part of this strategic review a significant reduction in administration expenses has been implemented.

• 3 Guatemalan nickel projects maintained in accordance with the agreement.

  • 1 Wertago Joint Venture with Great Western Minerals Limited

Graynic completed a Joint Venture Agreement with Great Western Minerals Limited (GWM) on Graynic’s Wertago Project (EL6424) in New South Wales. The project is 100% owned by Graynic and GWM have the ability to earn up to 75% through the expenditure of $1,000,000 on exploration. Graynic can elect to reduce to a Net Smelter Royalty or continue to match expenditure on a pro‐rata basis going forward past this point.

The Wertago Project hosts historic copper, lead and silver mines and is prospective for further expressions of these metals as well as zinc mineralization under cover in the central portion under alluvial cover (Figure 1).

GWM will earn an interest in the Project tenure from Graynic by exploring and completing the following expenditures as summarized below:‐

• (a) The agreement provides that GWM has the right to earn a 51% interest in the tenement by an expenditure of $500,000 on it over a two year period.

• (b) Thereafter GWM may elect to increase its interest therein to75% by further expenditure of $500,000 over a further two year period

• (c) GWM will be the tenement manager for the first two years and thereafter an operating committee with voting rights based on the then proportionate interests in the tenement will be formed.

• (d) The agreement also contains the usual provisions regarding failure to meet obligations and the usual warranties regarding the tenement, keeping it in good standing and dilution of Graynic to a net smelter royalty after GWM has earned a 90% interest.

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Figure 1: EL6424 (Wertago) tenure over Total Magnetic Intensity image. Mineral prospects (copper, lead, silver) within the tenure are shown.

2 Management changes and assessment of company strategy

There has been a change in the management of the company during the Quarter, with Bronwyn Barnes and Mark Fletcher resigning as executive Directors and Adrian Byass being appointed as Managing Director on an interim basis. Clive Jones (non executive Chairman) and Jonathan Downes (non‐ executive Director) remain with the company.

The company progresses on its strategic review and has made significant reductions in administration costs. As part of a strategic review of the company, further efforts continue to acquire additional mineral project opportunities in a range of commodities throughout the world in order to increase shareholder value. Partly due to the significant curtailment of administration expenses that has been initiated as part of recent changes, Graynic will remain in a secure financial position for considerable time without compromising interests and Joint Ventures already under way.

3 Central America

Graynic holds a right to earn a controlling stake in a large and prospective tenement package in Guatemala hosting nickel laterite mineralization. This agreement is with the Canadian‐based company Nichromet. Work has continued in Guatemala, with Graynic progressing in the Nichromet JV.

The company is also examining additional projects throughout Central America.

For further information contact; Adrian Byass Managing Director Graynic Metals Limited T +61 (8) 6364 0518 F +61 (8) 6210 1872 www.graynicmetals.com.au