CORAZON MINING LIMITED — Interim / Quarterly Report 2012

Jul 29, 2012

ASX ANNOUNCEMENT

30 July 2012

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The Manager Company’s Announcements Australian Securities Exchange

Quarterly Activities Report for the period ending 30 June 2012

Highlights

• Current phase of exploration drilling at EL Deposit completed and all assays received

• Nickel-copper sulphide breccia defined over 220 vertical metres , from 720m below surface, open at depth with the deepest intercept returning higher grade intercepts of:

Nickel Discover Explore Develop

ASX: CZN

Capital Structure

137.89 M CZN Shares 48.07 M CZNO Options 23.47 M Unlisted Options MCap A$4.4M (@3.2 cps)

• 3.9m @ 2.8%Ni, 0.2%Cu & 0.07%Co from 773.9m 11.0m @ 2.3%Ni, 1.0%Cu & 0.06%Co from 784.9m

11.5m @ 2.4%Ni, 0.8%Cu & 0.06%Co from 807.2m

• New zone of nickel-copper sulphide mineralisation discovered ~50 metres east of the sulphide breccia provides additional target. Results include:

51m @ 0.8% Ni, 0.5% Cu and 0.02% Co from 670m

• Discovery identifies the southeastern margin of the intrusion as an additional priority target

• C$3M exploration earn-in commitment achieved for Lynn Lake Project

Board of Directors

Clive Jones Non-Executive Chairman

Brett Smith Managing Director

Jonathan Downes Non-Executive Director

Adrian Byass Non-Executive Director

Officers

___________

Rob Orr Company Secretary

Australian exploration company Corazon Mining Limited (ASX: CZN) (“Corazon” or the “Company”) is pleased to present its exploration activities and results for the quarter ending 30 June 2012.

Contact Us

www.corazon.com.au

Corazon’s strategy throughout the June Quarter, in light of the weak financial markets, was to progress exploration at Lynn Lake in a cost effective manner, maintain and consolidate its position in the Lynn Lake Mining Camp, whilst implementing measures to preserve cash.

Drilling Program

Corazon’s 2012 exploration season commenced in January with drilling at the EL Deposit located within the Lynn Lake nickel sulphide project. This drilling focused on testing the extents of a high-grade nickel-copper sulphide breccia zone (the Lower Zone) discovered by the Company in May 2011 (Figure 1).

Brett Smith Managing Director Ph: +61 (8) 6364 0518

James Moses Media & Investor Relations Ph: +61 (0) 420 991 574

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU

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Corazon believes the EL Deposit has the potential to host a high-grade sulphide breccia, similar to that mined in the 1950’s and 1960’s. The historic EL Mine produced 1.9Mt @ 2.5% nickel and 1.15% copper from surface to 210 metres below surface.

Significant results from recent drilling are presented in Figure 1.

Since January 2012, five drill holes and two daughter holes (wedges) have been completed, totalling 5,392.5 metres (Table 1).

				Total Depth (m)
	From (m)	To (m)	Metres Drilled			NAD Azim
HOLE_ID					Dip		NAD83_E	NAD83_N
CRZ012W7	458	966	508	966	-80.5	32.7	375829	6299131
CRZ014	0	1008	1008	1008	-79.4	34	375829	6299131
CRZ014W1	376	966	590	966	-79.4	34	375829	6299131
CRZ015	0	290	290	290	-81.1	34	375829	6299131
CRZ016	0	1202	1202	1202	-82.6	34	375829	6299131
CRZ017	0	891	891	891	-78	52	375829	6299131
CRZ018	0	900	900	900	-77.6	63	375803	6299100

Table 1: Drilling completed since January 2012.

Much of this drilling has been used as platforms for on-going down-hole geophysics (EM) and target generation. Geophysical consultants are currently reviewing data collected by Corazon and are expected to define appropriate/ refined methods for further geophysical target generation and drilling within the EL Deposit.

Drilling to date has successfully intersected sulphide mineralisation to a depth of approximately 820 metres below surface, over a vertical extent of 120 metres from about 700 metres below surface (Figure1). The deepest intercept to date is from hole CRZ012, which returned:

44.8m @ 1.6%Ni, 0.7%Cu & 0.04%Co from 773.9m

This mineralisation displays some of the strongest sulphide breccia textures drilled to date by Corazon, with higher grade zones including:

3.9m @ 2.8%Ni, 0.2%Cu & 0.07%Co from 773.9m 11.0m @ 2.3%Ni, 1.0%Cu & 0.06%Co from 784.9m 11.5m @ 2.4%Ni, 0.8%Cu & 0.06%Co from 807.2m

Results reported during the June 2012 Quarter include drill-hole CRZ017 (announced 17 April, 2012) which returned:

51m @ 0.8%Ni, 0.5% Cu & 0.02% Co

These results confirmed a new zone of nickel-copper sulphide mineralisation at the EL Deposit. Mineralisation was intersected at 670 metres down-hole, located at a shallower level and approximately 50 metres to the east of the strong sulphide mineralisation which has been the target of drilling since its discovery in 2011 (refer to previous announcements and Figure 2).

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU

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Figure 1 : Recent drilling results and geological cross-section with drill hole traces (+1%Ni highlighted) from the EL Deposit

The mineralisation is fault bounded and has opened up the southeast margin of the intrusion as a prospective exploration target, with individual results ranging up to 3.5% (1m) nickel and 6.3% (0.6m) copper.

Higher grade zones of both primary and remobilized massive sulphide included:

4.0m @ 1.8%Ni, 0.7% Cu & 0.05% Co from 679m 2.8m @ 1.7%Ni, 2.0% Cu & 0.05% Co from 687m 2.0m @ 2.5%Ni, 1.1% Cu & 0.06% Co from 728m

These zones maybe coincident with a strong EM (geophysical) anomaly, detailed in previous announcements (28 March, 2012) and were the primary targets for this drilling.

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU

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CRZ017 is the first drill hole into the eastern margin of the EL Plug, an area recently highlighted as prospective by electromagnetic (EM) geophysics. It is extremely encouraging that this hole intersected such a broad zone of mineralisation proximal to a strong geophysical anomaly.

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Corporate Activities

Cash available to the Company at the end of the June 2012 Quarter was approximately $846,000. In addition to this, Corazon is expecting a GST refund from Canada of approximately $200,000 and is looking to dispose of non-core assets and investments.

Having completed the required C$3 million exploration earn-in commitment at Lynn Lake, Corazon will continue to take measures to preserve cash. Under the current agreement, Corazon has until 20 October 2012 to exercise an option to purchase the Lynn Lake Project for C$2 million.

Corazon remains committed to the Lynn Lake nickel-copper project and believes there is good potential to re-establish mining at Lynn Lake with improved metal prices. The Company has one of the largest land holdings in the Lynn Lake district, an area that displays a rich metal endowment and is prospective for both base and precious metal deposits. Additional mineral properties are currently under review in the district and include base and precious metal deposits that could add incremental value to the Lynn Lake Project.

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU

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- ENDS -

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

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU

ABOUT CORAZON MINING LIMITED

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 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[(2)] ). 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.

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, at an average grade of 1% nickel and 0.5% copper. There has been minimal exploration in the region since this time. Mining at adjacent deposits has shown that mineralisation extended to more than 1,100 metres below surface. Metal recoveries for nickel, copper and cobalt are historically very good, averaging above 85-90%.

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 roads. In addition there is rail access (currently under care and maintenance) to the Flin Flon zinc-copper refineries approximately 250km to the south.

Disclosure Statements and Important Information

Competent Person

The information in this report that relates to mineral Resources or Reserves is based on information compiled by Mr Andrew John Thompson, B.Sc Hons (Geol), Member AusIMM and a consultant to 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.

The information in this report that relates to Exploration Results is based on information compiled by Mr Brett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Corazon Mining Limited. Mr Smith 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 Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Exploration Target[1 ]

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

The Exploration Target has been estimated to a depth of 1,200 metres below surface. It follows the discovery of a high-grade nickel sulphide breccia at depth below the historic EL Mine, as well as the recognition in historical drilling of a substantial amount of near surface low-grade mineralisation.

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU

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B C	Tonnes	Grade	Grade	Grade	Contained Metal	Contained Metal	Contained Metal
ase ase		Ni%	Cu%	Co%	Tonnes Ni	Tonnes Cu		Tonnes Co
Upper Zone (0-200m)	2,200,000	0.7	0.3	0.01	15,000	6,000		200
Mid Zone (200-800m)	2,100,000	0.8	0.4	0.02	16,000	8,000		500
Lower Zone (800-1200m)	900,000	2.4	0.9	0.06	21,000	8,000		500
Total	5,200,000	1.0	0.4	0.02	52,000	23,000		1,200
	Tonnes		Grade		Contained Metal
Upper Case		Ni%	Cu%	Co%	Tonnes Ni	Tonnes Cu		Tonnes Co
Upper Zone (0-200m)	2,600,000	0.7	0.3	0.01	17,000	7,000		300
Mid Zone (200-800m)	2,100,000	0.8	0.4	0.02	16,000	8,000		500
Lower Zone (800-1200m)	2,800,000	3.8	1.4	0.11	106,000	40,000		3,200
Total	7,400,000	1.9	0.7	0.05	139,000	55,000		3,900

	Tonnes		Grade			Contained Metal	Contained Metal
Upper Case
		Ni%	Cu%	Co%	Tonnes Ni		Tonnes Cu	Tonnes Co
Upper Zone (0-200m)	2,600,000	0.7	0.3	0.01	17,000		7,000	300
Mid Zone (200-800m)	2,100,000	0.8	0.4	0.02	16,000		8,000	500
Lower Zone (800-1200m)	2,800,000	3.8	1.4	0.11	106,000		40,000	3,200
Total	7,400,000	1.9	0.7	0.05	139,000		55,000	3,900

Table 3: Exploration Target ranges for the EL Deposit, Lynn Lake Nickel-Copper Sulphide Project. The numbers within the table have been rounded. Some rounding errors may occur.

The basis for this target for the EL Deposit includes:-

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

• Historical mine development to at least 270 metres below surface

• Underground exploration drilling, sampling and mapping to a depth of approximately 600 metres below surface

• The regional mining and development depth for the Lynn Lake camp is approximately 1,200 metres

• There has been approximately 72,300 metres of historical surface and underground drilling complete

• At the date of definition of the Exploration Target, Corazon Mining Limited had completed in excess of 10,700 metres of surface core drilling

• 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. Mining and processing was conducted at Lynn Lake for approximately 23 years.

The zones defined in the Exploration Target include the Upper, Mid and Lower Zones. The Upper Zone includes lower grade material that has the potential to be exploited from lower cost mining methods such as open pit mining. This zone extends to 200 metres below surface. The Mid Zone covers an area defined predominantly by the current Inferred Resource (reported at a 0.6% Ni equivalent[2] bottom cut-off grade), between 200 and 800 metres below surface. The Lower Zone extends from 800 metres to 1,200 metres below surface, the latter being the maximum depth at which historical underground development was conducted.

Analytical Method

Assay results are obtained from ALS Mineral Services in Thunder Bay, Ontario, Canada. Samples are prepared using single stage pulverization of the entire sample. Base metals are obtained by 4 Acid digestion using ICP with either Atomic emission spectrometry (AES) or atomic absorption spectrometry (AAS) analysis techniques. Full analytical quality assurance - quality control (QAQC) is achieved using a suite of certified standards, laboratory standards, laboratory duplicates, blanks and grind size analysis. Assays quoted in announcements may be of a preliminary nature.

LEVEL 1, 350 HAY STREET, SUBIACO, W.A. 6008 - PO BOX 8187, SUBIACO EAST WA 6008 - WWW.CORAZON.COM.AU