CORAZON MINING LIMITED — Interim / Quarterly Report 2012

Apr 29, 2012

ASX ANNOUNCEMENT

30 April 2012

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The Manager Company’s Announcements Australian Securities Exchange Quarterly Activities Report Quarter Ended 31 March 2012 Highlights  Drilling beneath the EL Mine at Lynn Lake Project in Canada continued to identify strong nickel-copper-cobalt sulphide mineralisation, including:  CRZ012W7  73.46m @ 0.81% Ni, 0.50% Cu & 0.022% Co from 727.54m; Including  32.46m @ 1.26% Ni, 0.72% Cu & 0.032% Co from 727.54m  Down-hole EM surveys defined several conductors that will direct exploration drilling of extensions to EL Deposit between 700m-1,200m below surface  Drilling of priority target area identified a new zone of nickel-copper sulphide mineralisation. Drill hole CRZ017 intersected ~51m of disseminated to massive sulphide mineralisation (~50m east of previously discovered sulphide breccia)  Drilling of these targets is continuing  Mining studies for Lynn Lake Project commenced. Early results indicated: o Brown-fields project, well serviced with mining infrastructure and support, offering rapid development potential o Review of historical data for Lynn Lake deposits indicates copper and cobalt may provide a valuable credit, in excess of CAD$2.00/lb of nickel benefit o First pass review of Canadian underground mining costs indicate approx 30% reduction in comparison to Australian costs  Cash at the end of the quarter was approximately $2.18 million

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$10 (@ 7.4cps) 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 Contact Us www.corazon.com.au 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 WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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Australian exploration company Corazon Mining Limited (ASX: CZN) (“Corazon” or the “Company”) presents its activities and exploration results for the quarter ending 31 March 2012.

Corazon commenced its 2012 Exploration Season at the Lynn Lake nickel sulphide project, in Canada, in January 2012. A new phase of drilling began with the Lower Zone at the EL Deposit as the primary testing focus, comprising a high-grade nickel-copper sulphide breccia (which was discovered in May 2011).

Drilling to date has successfully intersected sulphide mineralisation to a depth of approximately 800 metres below surface. The defined mineralisation is below the current resource and constitutes a new zone of massive sulphide breccia zone, similar in style to that mined at the historic EL Mine.

Corazon’s strategy is to initially determine the size and extent of the high-grade nickel-copper sulphide breccia, with a view to rapidly progressing the project towards development and production. The current drilling results will be used in the estimation of a new resource for the EL Deposit.

Exploration during the March 2012 quarter focused on drill testing the down-dip extensions to the EL Deposit and using down-hole geophysics to define potential massive sulphide targets for additional drilling. Drilling during this quarter included 4,489 metres of core (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

Table 1: Drilling completed since December 2011 quarterly report (Hole CRZ017 completed in April, 2012).

Drilling Results – Breccia Zone

Much of the drilling during the quarter focused on the completion of holes to be used as platforms for electromagnetic (EM) geophysics. Assay results returned during the quarter included hole CRZ012W7 (Table 2) which tested the main Breccia Zone (initially discovered in 2011), between the discovery hole XND001W1 and hole CRZ012 (Figure 1).

		Interval (m)
Hole ID	From (m)		Ni%	Cu%	Co%
CRZ012W7	727.54	73.46	0.81	0.50	0.022
Including	727.54	32.46	1.26	0.72	0.032

Table 2: Mineralised drill hole intersections

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: EL Deposit – Drill hole cross-section

– Electromagnetic Geophysics New Sulphide Zone Discovered

EM is effective in identifying massive sulphide, typical of the high-grade mineralisation at Lynn Lake. Within these deposits, massive high-grade nickel-copper mineralisation produces a stronger conductive anomaly than lower-grade semi-massive to disseminated mineralisation.

Exploration by Corazon during the quarter identified several conductors. The priority target is a strong “offhole conductor” to the east of the Breccia Zone discovered by drilling last year. The identified conductor is significantly stronger than any off-hole conductor defined to date within the EL Deposit.

Determining the exact location and dimensions of this conductor will require additional work; modelling suggests the conductor lies east of and at a similar level to mineralisation defined by Corazon’s drilling, and is possibly a parallel feature between 700 and 850 metres below surface.

Drill hole CRZ017 was designed to test the intrusive contact of the EL Plug between the Breccia Zone and the defined EM anomaly. This hole returned approximately 51 metres of disseminated nickel-copper sulphides, including zones of up to 4 metres of higher-grade semi-massive to massive sulphide.

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

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Mineralisation was intersected at 670 metres down-hole, located at a shallower level and approximately 50 metres to the east of the Breccia Zone which has been the target of drilling since its discovery in 2011 (refer to previous announcements and Figure 2 attached).

Drill hole CRZ017 was the first drill hole into the eastern margin of the EL Plug; it is extremely encouraging that this hole has intersected such a broad zone of mineralisation within close proximity to a strong geophysical anomaly.

Drilling of this geophysical target is continuing.

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

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Preliminary Mining and Processing Studies

High-level mining and processing studies have commenced as a pre-cursor to scoping mining and processing options at Lynn Lake. Preliminary results from this work have shown:

• Canadian mining costs are generally substantially lower than in Australia. Early indicators show a 30% cost-benefit from operating in Canada; this benefit may increase as more detailed work is completed and costs/processes are refined.

• The size and shape of the EL Deposit is conducive to modern mining methods that can support a mining operation of between 600kt and 1.7Mt pa.

• Although the EL Deposit is primarily a nickel deposit, both copper and cobalt provide valuable credits. A 2007 pre-feasibility study on the nearby low-grade A Plug deposits (average grade; 0.66%Ni, 0.35%Cu, 0.02%Co) put this credit at CAD$2.16/lbNi, for metal prices of US$9.01/lbNi, US$2.13/lbCu and US$18.59/lbCo. In this study the cost per pound of nickel (CAD$7.06/lb) was reduced to CAD$4.90/lb net of copper and cobalt credits.

The Company will refine and build on its mining and processing models as part of an on-going assessment of the development potential of the EL Deposit.

Corporate Activities

Cash available to the Company at the end of the March 2012 Quarter was approximately $2.18 million.

- 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 WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au

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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 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 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.

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.

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
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.

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

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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.

Nickel Equivalent [2]

Ni% Equivalent = Nickel equivalent has been estimated within the Resource Block Model (2010) and in other instances using the formula:-

Ni% Equivalent = 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.

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 WA 6008. PO BOX 8187, Subiaco East WA 6008. www.corazon.com.au