CORAZON MINING LIMITED — Interim / Quarterly Report 2009

Jul 29, 2009

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ASX Release

30 July 2009

Quarterly Activities and Cash Flow Report 30 June 2009

Key points

• Joint Venture Agreement completed for Nickel Assets in Guatemala

• Provides Graynic with the largest Ni laterite tenure in Guatemala (+2,200km[2 ] )

• Portfolio comprises suite of potential major nickel assets

• Advanced exploration targets with potential for resource definition within 12 months

• Cash reserves of $1.2 million

Guatemala

During the quarter the company continued work on the finalization of the Joint Venture Agreement with private Canadian company, Nichromet Extraction Inc. (Nichromet) for nickel projects in Guatemala as per the binding terms sheet executed between the parties on 3 March 2009. The Joint Venture Agreement was executed on 9 July 2009. A presentation outlining the transaction and the projects can be found on the company’s website www.graynicmetals.com.au

The Joint Venture Agreement covers Nichromet’s Guatemalan assets contained within the Izabal and Baja Verapaz regions, both of which have excellent potential to define a resource within a 12 month period. An exploration target of approximately 70 to 140 million tonnes @ 1.2% to 1.5% Ni is expected for the Izabal region, whilst the Rio Negro project has a target of 15 to 40 million tonnes at 1.2 to 1.7 % Ni in the Baja Verapaz region.

As part of the transaction Graynic assumes management responsibility for the projects. Senior management are currently in Guatemala reviewing the projects and operating structure in order to develop a work programme and an appropriate operating model to manage exploration, community and administrative activities.

This transaction has provided the company with a significant strategic position in Central America in line with the company’s strategic plan to target Tier One nickel laterite projects at a mid‐to‐ advanced stage of exploration in regions that have had historical barriers to entry. Graynic is continuing to assess other potential project opportunities in the region in line with the Company’s strategy and will provide further information on these in due course.

Level 1 PO Box 935 350 Hay Street West Perth WA 6872 Subiaco 6008 T: +61 8 6364 0518 Perth, Western Australia F: + 61 8 6210 1872 admin@graynicmetals.com.au www.graynicmetals.com.au

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Izabal Project Area – Tenement Outlines

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– Baja Verapaz Project Area Showing Landsat and Topography

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Joint Venture Agreement Details

The Joint Venture Agreement provides for Graynic to earn a 50% interest in Nichromet’s projects in Guatemala through exploration expenditure of up to US$2.4 million within 36 months. This will include a one off payment on signing of the Joint Venture Agreement to Nichromet of US$150,000. Graynic can then elect to spend up to a further US$4 million within a 36 month period to earn an additional 25% interest in Nichromet‘s Guatemala projects, bringing Graynic’s ownership level to 75%. It is envisaged that this stage would include the completion of a pre‐feasibility study for one of the projects. Once Graynic achieves 75% ownership, Nichromet will be responsible for funding its respective ownership position of 25%. If Graynic elects not to move to a 75% ownership position then Nichromet and Graynic will remain joint 50% owners of the projects and each party will be responsible for funding their respective ownership positions.

In addition, Nichromet has granted Graynic an option for a license for its Oxide Process Technology for the project areas the subject of the agreement. The Nichromet Oxide Process Technology has been successfully applied to Nichromet’s pilot plant in Canada, with testing of nickel laterite ores from Cuba, Dominican Republic, Guatemala, and the Philippines producing nickel and cobalt recoveries generally in excess of 90%. Further information on the Nichromet Oxide Process Technology can be found at www.nichromet.com

Corporate

During the quarter planning activities commenced to assume management control of the assets in Guatemala covered by the Nichromet transaction. This has included a review of existing staff located in Guatemala and appropriate operating structures. Work on these areas will be finalised during the next quarter.

Cash

At the end of the quarter the company had remaining cash reserves of $1.28 million. Whilst the company has reduced exploration expenditure at its remaining assets in Australia, future funding options are now being considered to ensure sufficient cash will be available to undertake work on the Guatemalan projects.

Enquiries: Bronwyn Barnes Nicholas Read Managing Director Read Corporate 08 6364 0518 08 9388 1474 0417 093 256 bronwyn@graynicmetals.com.au www.graynicmetals.com.au

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The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves was compiled by Mr. Mark Fletcher, who is a member of the Australian Institute of Geoscientists. Mr. Fletcher has sufficient experience which is relevant to the style of mineralization 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 Mark Fletcher, who is a full‐time employee of Graynic Metals Ltd, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration Targets ‐ Graynic has defined exploration targets at various stages of exploration in both the Baja Verapaz and Izabal regions, including a range of potential tonnes and grade of the nickel bearing material. In relation to all references to exploration targets in this announcement, the potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Publicly available information on the quantity and grade from the Fenix (HudBay Resources; ) and Sechol (Anfield Ventures) Guatemalan projects have been used to assist in determining these target estimates as they are similar in nature and proximal in location. Specific information used to determine the target ranges include the areas geologically mapped, and supported by aeromagnetic data, as lateritized ultramafic rocks and are situated on elevated plateaus with optimal slopes of between 3 and 20 degrees. Drilling information, including the grade and thickness and surface aerial extent of mineralised intersections, provided greater detail.

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