CORAZON MINING LIMITED — Interim / Quarterly Report 2011

Apr 27, 2011

QUARTERLY ACTIVITIES REPORT

For period ending 31 March 2011

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Australian exploration company Corazon Mining Limited (ASX:CZN) (“Corazon” or “the Company”) presents activities and exploration results for the quarter ending 31 March, 2011.

Highlights

Date:- 28 April, 2011

Corazon Mining Limited ASX : CZN

Corporate

• Corazon completes a Share Purchase Plan and Placement of shortfall raising as part of a strategy to raise $3.2M for exploration at the Lynn Lake Nickel Sulphide Project in Canada

• The Company divests the Quartz Circle Project, a non-core gold and base-metal exploration project in Western Australia

Exploration

“Nickel sulphides in Canada.”

• Capital Structure 101.86 M CZN Shares 48.07 M CZNO Options 18.50 M Unlisted Options MCap A$10.2M (@ 0.10 cps)

• Corazon launches 2011 exploration program at Lynn Lake

• Work includes drilling of known prospects, as well as geophysics to define additional exploration targets within the metal rich Lynn Lake region

• Geophysics includes IP, gravity and VTEM. Initial IP geophysical survey identifies the 150 Prospect as a priority drill target.

• Drilling has identified new sulphide mineralisation at all targets including; the 150 Nickel Sulphide Prospect, extensions to the Francis Lake VMS Deposit and the EL Nickel Sulphide Deposit.

• Drilling to date has included nine (9) holes and one (1) hole extension for 2,877.98 metres

• Drilling is continuing at the EL Nickel Sulphide Deposit, with the current phase of exploration expected to be completed in May 2011. Results will be released to the market as they become available.

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

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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 being used) 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. 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[(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.

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 2).

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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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

As part of the strategy to fund exploration at the Lynn Lake Project in Canada, the company completed placements (December 2010 and March 2011) to sophisticated investors and a share purchase plan (February 2011) for existing shareholders, raising approximately $3.2M in funds (after costs) from the issue of 33.57M ordinary shares at a price of $0.10 per share.

Share Placement

On 15 December 2010 the Company announced that it has successfully completed a $923,400 Share Placement (before costs), via the placement to sophisticated investors of 9,234,000 ordinary shares at an issue price of $0.10 per share.

Share Purchase Plan and Placement of Shortfall

On 25 January 2011, Corazon announced to eligible shareholders the opportunity to participate in a Shareholder Share Purchase Plan ( Plan ) to acquire additional Shares at $0.10 per share.

On 22 February 2011 the Company announced the Plan had closed with acceptances totaling $734,000.

The Plan was fully underwritten by Barclay Wells Limited to raise a total of $2.3M for the exploration of the Lynn Lake Nickel Sulphide Project.

The placement of the Plan shortfall was subject to Shareholder approval. On 4 March 2011 Corazon announced Shareholders had unanimously approved the placement.

Divestment of Quartz Circle Project

Corazon has provided Blenheim Resources Limited (Blenheim) with an option to acquire its interest (80%) in the Quartz Circle Project in Western Australia.

In consideration for the option and sale of interest in the project, Blenheim agrees to pay Corazon:-

• $15,000 on execution of the letter agreement

• $100,000 on completion of the sale

• 3.5M fully paid ordinary shares in Blenheim on listing on the ASX

• 1.75M options in Blenheim at an exercise price of $0.20 (subject to escrow) expiring two years after the date of issue.

Blenheim has until 29 July 2011 to complete the sale process.

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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Quarterly Exploration Activities

Corazon has accelerated exploration at Lynn Lake. 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.

All geophysical surveys (excluding down-hole EM) have been completed and the Company is awaiting the final products of this work before analysis and further target definition.

The current phase of drilling remains on schedule to be completed this month (or possibly early May). Drilling at the 150 nickel sulphide prospect and the Francis Lake VMS deposit has been completed; with drilling at the EL nickel sulphide deposit continuing.

EL Nickel Sulphide deposit

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

2. High-level/early-stage mining studies will be completed on the EL Mine resource. This work will influence the focus of future drilling at this deposit, as well as the strategy for development.

3. 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.

Drilling at the EL nickel sulphide deposit has included a shallow hole (CRZ001) targeting near surface gaps in the existing resource, and a deeper exploratory hole (XND001 – extension) planned to test for additional massive sulphide (high-grade) mineralisation within the EL Deposit.

Results from the shallow drill hole (CRZ001) defined two main zones and highlights the potential of nearsurface mineralisation to facilitate opencut mining as part of the project’s development strategy. This hole targeted a large gap in the drilling at the EL deposit, and is expected to contribute to an increase in the JORC resource for the EL deposit. Assay results included:

o 29m @ 1.25% Ni, 0.40% Cu & 0.04% Co from 158m (including a 3.05m void)

Including:

 5m @ 1.67% Ni, 0.43% Cu & 0.05% Co from 160m  2m @ 1.80% Ni, 0.34% Cu & 0.06% Co from 165m  3m @ 2.14% Ni, 0.45% Cu & 0.06% Co from 169m

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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• 4m @ 1.57% Ni, 0.32% Cu & 0.05% Co from 179m

o 18.14m @ 1.30% Ni, 0.65% Cu & 0.04% Co from 251m (ending in a 10.86m void)

Including:

• 2.95m @ 2.54% Ni, 0.72% Cu & 0.07% Co from 252.05m

• 3.00m @ 1.30% Ni, 0.76% Cu & 0.04% Co from 258m

• 4.12m @ 1.72% Ni, 1.09% Cu & 0.05% Co from 262m

The drilling of XND001 to approximately 1,200m within the EL Deposit (Figure 1) is designed to test extensions to nickel-copper-cobalt mineralisation that has only been mined to 210m below surface. This hole will be used as a platform for down-hole electro-magnetic (EM) geophysics; enabling the target definition of massive sulphide within the greater EL Deposit mineralised system.

This drill hole has already intersected semi-massive sulphide mineralisation. These sulphides are within 50m of mineralisation intersected by the deepest historically drilled hole within the EL (ELU227 - approximately 600m below surface - Figure 1). Due diligence sampling of ELU227 by Corazon has previously been reported as:-

o 35.81m @ 1.50% Ni & 0.47% Cu

Including:

• 2.29m @ 3.50% Ni & 0.53% Cu

• 3.04m @ 2.66% Ni & 0.63% Cu

• 2.74m @ 3.48% Ni & 0.34% Cu

The current drill hole is stalled at a depth at 767m with the drilling contractors having encountered problems with equipment. Whilst these issues have caused a delay, they are not expected to jeopardise the completion of the hole, expected this month or early in May.

150 Nickel Sulphide Prospect

IP geophysical surveys identified the 150 Prospect as a priority drill target. Drilling at the 150 Prospect has included 6 holes for 1,210m. Nickel sulphide mineralisation has been identified in this drilling and samples have been submitted for analysis. The style of mineralisation looks similar to that of the disseminated mineralisation which surrounds the massive sulphide (high-grade) mineralisation at the EL Deposit, located 1.2 km to the northeast.

The sulphide mineralisation has been traced over a strike of approximately 250m. Results are expected late April/early May.

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 1 – Schematic of the EL Deposit infrastructure, drilling and mineralisation

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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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. Samples have been submitted for analysis, with results expected late April/early May.

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

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Figure 2:- Lynn Lake Nickel Sulphide Project – showing new Mineral Claims and prospect locations over a Google Earth Image.

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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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

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.

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.

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