CORAZON MINING LIMITED — Interim / Quarterly Report 2009

Jan 29, 2009

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HALF YEARLY REPORT 31 DECEMBER 2008

Highlights

• Cash reserves of $1.7 million as at 31 December 2008

• Project generation activities identify new project opportunity

• Assay results confirm a new mineralised structure at the Emperor Zinc Prospect

WA PROJECTS

Quartz Circle, Nullagine WA (Graynic 80%, Cazaly Resources 20%))

All assay results were received for the drilling completed at the Emperor and Imperial prospects during the September 2008 quarter.

Emperor Zinc Prospect – Drilling

Assay results ( Table 1) have confirmed the mineralised structures indicated by logging and a portable XRF analyser, as reported in the September 2008 quarterly report. Six intersections of greater than 1% zinc were made along a mineralised structure with a strike of 500m. Two subvertical zones between one and four metres thickness were intersected along the northern boundary of the prospect. Figure 2 shows a long-section from the Emperor Prospect with the new intersections highlighted.

Along with the significant zinc results, three gold intersections were made during the program; 2m @ 2.11g/t Au from 44m and 2m @ 2.05g/t Au from 106m in GMRC69, and 4m @ 1.40g/t Au from 140m in GMRC74.

Further interpretation of the drilling results will allow design of an appropriate forward work program.

Table 1 Quartz Circle - Drill-hole Intersections greater than one percent zinc

Hole_ID	Intersection(m)	Intersection(m)	From	Zn (%)
	True Width	Down hole	(m)
GMRC69	2.5	4	76	1.02
GMRC70	2.5	4	82	1.53
GMRC670	2.5	4	90	1.07
GMRC671	1	2	142	1.45
GMRC671	4	8	174	2.08
GMRC674	1	2	144	1.73

Graynic Metals Limited ACN: 112 898 825

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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----- Start of picture text ----- 7,601,750 mNSeptember 2008Drilling7,601,500 mN Previo us d rill -h ol ecollarsIgloo Prospect Access trackLongsectionTenementboundaries7,601,250 mN7,601,000 mN Emperor Prospect7,600,750 mN0 50 100 200 Scale 1:10,0007,600,500 mN metres500 mE802, 750 mE802, 000 mE902, 250 mE902, 500 mE902, 750 mE902,----- End of picture text -----

Figure 1 Quartz Circle – Drilling Plan

Graynic Metals Limited ACN: 112 898 825 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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Figure 2 Emperor Zinc Prospect – Long Section

NSW PROJECTS

Wertago (Graynic 100%)

During the quarter Graynic received formal advice from Proto Resources and Investments Ltd (“Proto”; ASX: PRW) that Proto were withdrawing from the second phase of the Joint Venture Agreement for the Wertago project in NSW.

Through the joint venture agreement Proto acted as manager of the Project with the potential to earn up to an 80% interest in the project. At the date of their withdrawal Proto had not earned an interest and the project reverts in full to Graynic.

Work completed by Proto during 2008 included a ground TEM survey and nine percussion drill-holes for 1,156m. The drilling targeted weak conductors generated by the TEM survey. Geochemical analysis of drill samples was undertaken by ALS in Brisbane. Elevated copper and zinc values associated with iron oxide alteration, possible skarn alteration and quartz veining confirms the potential prospectivity of the Koonenberry fault in the Wertago region.

Proto have advised that their withdrawal was due to the down turn in commodity prices and their desire to focus their resources on their Barnes Hill nickel laterite project. Graynic retains full ownership of Wertago and is considering options for the Wertago project moving forwards.

Graynic Metals Limited ACN: 112 898 825

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

Cash Position

As at 31 December 2008 Graynic had $1.7 million in cash. During the quarter a review of activities planned for 2009 was undertaken and reductions made to planned expenditure for the year in order to preserve cash. Graynic has sufficient cash reserves to meet all planned expenditure for the 2009 calendar year. The majority of savings were derived from deferring exploration expenditure, reducing personnel numbers and reducing corporate and administrative overheads. Graynic will continue to closely monitor expenditure during the year to ensure value is maximised from the cash reserves the Company has on hand.

Board Changes

Graynic’s Non-Executive Chairman, Mr Ivan Hoffman, resigned on January 28 for personal reasons. Mr Clive Jones has been appointed as Non-Executive Chairman. Mr Jones brings considerable experience to the position of Non-Executive Chairman and has been a board member of Graynic since the Company’s listing in June 2005. Mr Jones is currently joint Managing Director for Cazaly Resources Ltd and is also Chairman of Cortona Resources Limited and a Director of Bannerman Resources Limited all of which are ASX-listed companies.

Project Review and Acquisition

Given the current market volatility Graynic is continuing to review project opportunities in line with long term commodity pricing and supply outlooks. During the quarter Graynic significantly advanced discussions with a private entity for the staged acquisition of an asset in Central America. Further details will be advised to the market when negotiations are at a more advanced stage. Graynic is confident that it has sufficient cash reserves to meet expenditure associated with the proposed acquisition and that the acquisition will be a positive step forward for the Company.

Enquiries: Bronwyn Barnes James Moses Managing Director Media and Investor Relations 08 6364 0518 Mandate Corporate 0417 093 256 0420 991 574 bronwyn@graynicmetals.com.au james@mandatecorporate.com.au www.graynicmetals.com.au

Competent Person Statement: 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.

Graynic Metals Limited ACN: 112 898 825

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