CORAZON MINING LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

For period ending 30 June 2011

QUARTERLY ACTIVITIES REPORT

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Australian exploration company Corazon Mining Limited (ASX:CZN) (“Corazon”) presents activities and exploration results for the quarter ending 30 June, 2011.

Highlights

Exploration

Date:- 29 July, 2011 Corazon Mining Limited ASX : CZN

The EL Deposit

• Two platform/parent drill holes have been completed and will be used for deep geophysics and off-shoot (wedge) drilling, targeting massive sulphide mineralisation beneath the EL Mine within the Lynn Lake Project, Canada

• The first wedge hole has been successful in intersecting a high-grade nickel/copper sulphide breccia, returning:-

“Nickel sulphides in Canada.”

Capital Structure

• 101.89 M CZN Shares 48.07 M CZNO Options 18.47 M Unlisted Options

o 23.75m @ 3.34% Ni, 1.54% Cu & 0.079% Co from 731.25 m

MCap A$15.28 (@ 0.15 cps)

Including

• 13m @ 4.27% Ni, 0.89% Cu & 0.099% Co from 732 m

• Mineralisation lies below the current resource and may constitute a new zone of massive breccia as mined at the historic EL Mine, which was the highest grade deposit in the Lynn Lake nickel camp

• This sulphide breccia is surrounded by lower grade stringer/matrix sulphide mineralisation , intersected in hole down to a depth of 900m

• The scale of the high-grade breccia discovery has yet to be defined – the previously mined breccia (near surface) has a diameter of 80-120 metres and was mined to a depth of 210m.

Regional Targets

• Drilling has identified new sulphide mineralisation at the 150 Nickel Sulphide Prospect, as well as extensions to the Francis Lake VMS Deposit

Board of Directors

Clive Jones Non-Executive Chairman Brett Smith Managing Director Jonathan Downes Non-Executive Director Adrian Byass Non-Executive Director Rob Orr Company Secretary

Contact Us www.corazon.com.au Brett Smith Ph: +61 (8) 6364 0518 James Moses Media & Investor Relations Ph: +61 (0) 420 991 574

Corporate

• 30,000 unlisted options were exercised during the Quarter. This has resulted in an increase in the number of fully paid ordinary CZN shares to 101,891,415.

• Cash available to the Company at the end of the June 2011 Quarter was approximately $1.5M.

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About Corazon Mining Limited

Corazon is Perth based Australian exploration company that has an option to acquire 100% ownership of the high-grade nickel sulphide “EL Mine” and surrounding exploration ground in the Lynn Lake nickel camp of Canada. The Company is listed on the Australian Securities Exchange under the ASX Code of CZN.

About the Lynn Lake Project

Corazon has an option to acquire 100% equity in the Lynn Lake Nickel Sulphide Project in the central Canadian province of Manitoba, which hosts the historic EL Nickel Mine.

The Lynn Lake nickel camp is Canada’s third largest nickel mining region, which produced 22Mt of nickel/copper/cobalt ore between 1953 and 1976. There has been minimal exploration in the region since this time.

Corazon is the largest land holder in the Lynn Lake Camp, and in addition to the EL Mine, the project area containing several drill defined base metal deposits and numerous un-tested geophysical anomalies.

The area is well serviced with mining infrastructure and support, offering rapid development potential. The Thompson Nickel Refinery is located only 320km from the project and is accessible by all weather road. In addition there is rail access (currently not in use) to the Flin Flon zinc-copper refineries approximately 250km to the south.

The EL Nickel-Copper Sulphide Mine

The EL Mine was the highest grade deposit at Lynn Lake and produced 1.9Mt @ 2.5% nickel and 1.15% copper (combined metal of approximately 3% nickel equivalent [(1)] ). The EL Mine mineralised host rocks are a defined geological unit with good predictability down plunge. Mining was conducted to a depth of 210 metres below surface, with development to 270 metres and drilling defined mineralisation to a depth of at least 600 metres (Figure 1). Mining at adjacent deposits has shown that mineralisation extended to more than 1,100 metres below surface.

Corazon has defined an Exploration Target[(2)] for the EL Mine of between 3.5Mt and 4.6Mt, which includes the existing Inferred Resource. The target has grade ranges of between 0.8% and 1.45% nickel, 0.4 and 0.7% copper, along with 0.01% and 0.03% cobalt. At these grade ranges, the contained metal for this Exploration Target[(2)] equates to between 28,100t & 66,000t nickel, 14,000t & 31,400t copper and 770t to 1,730t cobalt. This Exploration Target has yet to be re-assessed following the discovery of high-grade mineralisation at depth within the EL Deposit.

This Exploration Target[(2)] is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

The nickel sulphide deposits at Lynn Lake are polymetallic with metals such as copper and cobalt easily recovered and providing extremely valuable production credits. The entire Lynn Lake Nickel Camp operated for 23 years and produced 22.2Mt at 1% Ni and 0.5% Copper. These deposits are largetonnage/low-grade in nature and at such grades can provide a very robust mining project.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Lynn Lake VMS Deposits

The VMS deposits within Corazon’s project area include Francis Lake, Eldon Lake East, Nicoba, Y Deposit, Z Deposit and Gods Lake (FL) (Figure 4).

These deposits were mostly discovered in the 1940’s and since then have only had intermittent exploration in the 1970’s and 1990’s. They are predominantly zinc/copper mineralisation with variable amounts of lead, silver and gold. Not all metals have been historically reported.

Further details regarding these deposits can be found in the Company announcement made on the 26 November, 2010.

Quarterly Corporate Activities

30,000 unlisted options were exercised during the Quarter. This has resulted in an increase in the number of fully paid ordinary CZN shares to 101,891,415. This class of option was exercisable at $0.07 per share, up to 13 July, 2013.

Cash available to the Company at the end of the June 2011 Quarter was approximately $1.5M.

Quarterly Exploration Activities

Corazon commenced the current phase of exploration at Lynn Lake in January this year. Work proposed included:-

• 5,000 metres of drill core and down-hole EM geophysics

• 420 line km of aerial VTEM and magnetic geophysics

• 40 line km of ground IP geophysics

• Project coverage with detailed ground gravity geophysics

• Preliminary mining studies on the EL Nickel Sulphide Deposit.

The aerial geophysics, ground IP and gravity surveys have been completed and the Company is awaiting the final products of this work before analysis and further target definition. Down-hole EM is currently underway at the EL Deposit.

In total 3,729.98 metres of drilling has been completed since the commencement of this program this year. In summary:-

EL Deposit - 3 holes and one wedge hole for 2,203.24m 150 Nickel Sulphide Prospect - 6 holes for 1,210.66m Francis Lake VMS Deposit - 1 holes for 316.08m

Drilling at the 150 nickel sulphide prospect and the Francis Lake VMS deposit has been completed and reported on last quarter. Assay results from this drilling are presented in this June 2011 Quarterly Report.

Drilling is continuing at the EL nickel sulphide deposit. It is envisaged that the down-hole EM survey currently being conducted will provide additional drill targets in the area.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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EL Nickel Sulphide deposit

Drilling of the EL nickel sulphide deposit has continued on from last quarter. Two deep holes have been drilled and will serve as platforms for down-hole geophysics and targeted wedge (daughter) drilling. Both holes trend, parallel to the mineralised mafic/ultramafic intrusive plug. Neither was designed to intersect mineralisation.

The first wedge hole has been completed with XND001W1 (off parent hole XND001) drilled to a depth of 1,205 metres. This hole was successful in intersecting part of a sulphide breccia and returned high-grade results including:-

o 23.75m @ 3.34% Ni, 1.54% Cu & 0.079% Co from 731.25 m

Including

• 13.0m @ 4.27% Ni, 0.89% Cu & 0.099% Co from 732 m

• 2.46m @ 3.80% Ni, 0.34% Cu & 0.089% Co from 751.94 m

Drilling indicates extensive sulphide mineralisation to approximately 900 metres down hole, as the drilling trended away from the mineralised core of the mafic/ultramafic plug (refer to Company announcements dated 23 May, 8 June and 28 June this year). The extensive amount of sulphide mineralisation is indicative of a large, strongly mineralised system, analogous to the previous mined areas within the EL Deposit.

The second deep hole (CRZ010) has been completed to a depth of 850 metres within the mafic/ultramafic host rock. This hole has not been designed to intersect sulphide mineralisation, however it may be extended or used as a platform for off-shoot (wedge) drilling, depending on the results of the down-hole geophysics.

These two deep holes are within 50 metres of each other and as such using them for down-hole geophysics (electromagnetics – EM) should provide a very detailed geophysical image of the sulphide mineralisation.

The EM survey has commenced, and is expected that it will be completed in by the end of July. Drilling of targets defined by the EM will commence within a week of completing the EM.

The EL nickel sulphide deposit is a major focus for Corazon, with the Company employing a three pronged strategy to progress the development of the resource. In summary:-

1. Drilling of extensions to the mineralisation is expected to add to the EL Mine resource. The EL Deposit has been mined to 210 metres below surface and has a resource defined to 600 metres below surface. Past mining in the Lynn Lake region has been conducted to depth of more than 1,100 metres.

The target below 600 metres is another high-grade massive sulphide breccia zone, similar to that mined from surface at the EL Mine. Early results of this work are extremely encouraging and the company will as a priority focus on defining the extents of the high-grade sulphide breccia discovered by drilling during the quarter.

1. The initial inferred resource is an interim resource constrained by drill density. As such, targeted drilling into areas of little information is expected to add value.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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1. High-level/early-stage mining studies are being conducted on the EL Deposit. This work will influence the focus of future drilling at this deposit, as well as the strategy for development.

150 Nickel Sulphide Prospect

IP geophysical surveys identified the 150 Prospect as a priority drill target, with drilling completed last quarter including 6 holes for 1,210m. Nickel sulphide mineralisation intersected in this drilling looks similar to that of the disseminated mineralisation surrounding the massive sulphide (high-grade) mineralisation at the EL Deposit, located 1.2 km to the northeast.

The mineralisation has been traced over a strike of approximately 250m. Better results from this work identifies two near surface zones of sulphides, one with widths of up to 41m down-hold. Results at plus 0.8% Ni equivalent[(1)] grades include:-

• 9.07m @ 0.81% Ni, 0.53% Cu & 0.016% Co from 14m

• 6.00m @ 0.64% Ni, 0.61% Cu & 0.016% Co from 78m

Work at this prospect can only be completed during the winter months. The Company intends to continue exploration in this area later in the year.

Francis Lake VMS deposit

The Francis Lake VMS (zinc-copper-lead-silver-gold) Deposit is located 5 km to the west of the EL Deposit and is described in previous ASX announcements (26 November 2010).

Historical drilling was thought to have defined the extents to the mineralisation at Francis Lake. Corazon has drilled one hole to test the concept of a differing plunge to the mineralisation (than that previously interpreted). This drill hole intersected mineralisation of a similar sulphide content to the main VMS body at Francis Lake. Results returned include:-

o 5.0m @ 2.15% Zn, 0.20% Cu, 0.08% Pb, 18.0g/t Ag & 0.30g/t Au

These results are encouraging and suggest the drill hole intersected the margin of the high-grade Francis Lake mineralisation. Highlights from past drilling within the main zone at the Francis Lake Deposit include:

• 6.5m @ 13.8% Zn, 0.7% Cu, 0.9% Pb, 22.2g/t Ag & 3.7g/t Au

• o 1.2m @ 10.6% Zn, 0.2% Cu, 6.1% Pb, 135.1g/t Ag & 8.7g/t Au

The Company will use these results along with recently completed geophysics to define the potential of the VMS mineralisation in the Francis Lake area. Exploration at Francis Lake will continue next winter.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Figure 4:- Lynn Lake Nickel Sulphide Project – showing new Mineral Claims and prospect locations over a Google Earth Image.

For further information visit www.corazon.com.au or contact:

Brett Smith James Moses Managing Director Media and Investor Relations Corazon Mining Limited Mandate Corporate Ph: +61 (8) 6461 6350 Mob: +61 420 991 574 E: james@mandatecorporate.com.au

Disclosure Statements and Important Information

Competent Person

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Andrew John Thompson, B.Sc Hons(Geol), Member AusIMM an employee of Corazon Mining Limited. Mr Thompson has sufficient experience that 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 Thompson consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Nickel Equivalent [(1)]

Ni% Equiv (1) = Nickel equivalent has been estimated within the Resource Block Model and in other instances using the formula:-

Ni% Equiv = Ni%+(Cu% x (3/8.75))+(Co% x (18/8.75)) where Ni = 8.75$ US/lb Cu = 3.00 $US/lb Co = 18.00 $US/lb

Nickel equivalent grades are provided as an indicator of value in a multi-metallic deposit. Lynn Lake has a long history as a nickel, copper and cobalt mining camp. It is the Company’s opinion that all elements included in the metal equivalent calculation have a reasonable potential to be recovered.

Exploration Target [ (2)]

This exploration target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. The basis for this target includes:-

• Historical mining at the deposit to a depth of 210 metres below surface

• Historical mine development to at least 270 metres below surface

• Exploration drilling to a depth of approximately 600 metres below surface

• An inferred resource has been calculated to approximately 600 metres below surface

• Good continuity and predictability of geology down-plunge

• Geological evidence for a deep-seated, explosive mineralising event.

Past exploration and mining records for the EL Mine are extensive and reflects high standards of work.

Suite 5, Level 1, 350 Hay Street, SUBIACO WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au