CORAZON MINING LIMITED — Interim / Quarterly Report 2012

Jan 30, 2012

ASX ANNOUNCEMENT

31 January 2012

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The Manager Company’s Announcements Australian Securities Exchange

Quarterly Activities Report Quarter Ended 31 December 2011

Highlights

• Drilling beneath the EL Mine at the Lynn Lake Project in Canada, continued to identify strong nickel-copper-cobalt sulphide mineralisation, including

• XND001W2

o 23.91m @ 2.27% Ni, 0.80% Cu & 0.055% Co from 715.09 m; Including

• 4.53m @ 3.34% Ni, 1.05% Cu & 0.081% Co from 715.09 m and

• o 1.82m @ 4.38% Ni, 0.37% Cu & 0.101% Co from 726.18 m

 CRZ012

o 44.75m @ 1.55%Ni, 0.65%Cu & 0.044%Co from 773.93m

Including

• 3.85m @ 2.83%Ni, 0.24%Cu & 0.073%Co from 773.93m

• o 11.03m @ 2.31%Ni, 1.01%Cu & 0.062%Co from 784.90m o 11.51m @ 2.37%Ni, 0.78%Cu & 0.062%Co from 807.17m

Date: 31 January 2012 Corazon Mining Limited ASX : CZN “Nickel sulphides in Canada.” Capital Structure 137.89 M CZN Shares 48.07 M CZNO Options 23.47 M Unlisted Options MCap A$13.8 (@ 0.10 cps) 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

 CRZ012W4

o 32.51m @ 0.94%Ni, 0.47%Cu & 0.024%Co from 717.19m

 CRZ012W5

o 34.00m @ 0.85%Ni, 0.50%Cu & 0.023%Co from 738.00m and o 10.75m @ 2.10%Ni, 1.03%Cu & 0.066%Co from 807.72m Including

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

• 4.26m @ 3.49%Ni, 1.75%Cu & 0.109%Co from 810.09m

• Drilling defined mineralisation below the current resource and may constitute a new zone of massive sulphide breccia zone similar to that mined at the historic EL Mine

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

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• Exploration Target[1] of between 5.2Mt and 7.4Mt is defined, with contained metal ranges of:

Nickel Copper Cobalt

52,000t - 139,000t 23,000t - 55,000t 1,200t - 3,900t

• This Exploration Target[1] includes the newly discovered high-grade breccia zone at depth, of 0.9Mt to 2.8Mt and grade ranges of:

Nickel Copper Cobalt 2.4% - 3.8% 0.9% - 1.4% 0.06% - 0.11%

• 4,500m of drilling proposed to be completed by end of May 2012, with a resource upgrade planned for mid-2012

• Cash at the end of the quarter was approximately $3.6 million

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Australian exploration company Corazon Mining Limited (ASX:CZN) (“Corazon” or the “Company”) is pleased to announce its activities and exploration results for the quarter ending 31 December 2011.

Exploration during the December quarter focussed on drill testing the down-dip extensions to the EL Deposit. Drilling during the December 2011 Quarter included 3,778 metres of core (Table 1).

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

In January, Corazon commenced a new phase of drilling which has a main focus of testing the Lower Zone at the EL Deposit, comprising high-grade nickel-copper sulphide breccia, which was discovered in May 2011. The work program proposes an additional 4,500 metres of core drilling, to be completed by the end of May 2012. Newsflow from this drilling is anticipated to be regular during the quarter.

Corazon’s strategy is to initially determine the size and extent of the high-grade nickel-copper sulphide breccia, with a view to rapid progression of the project towards development and production. This drilling will be used in the estimation of a new resource for the EL Deposit, expected to be completed in mid-2012.

1 The Exploration Target is conceptual in nature and, to date, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. See the disclosure statement appended to this release for further details.

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

				Metres	Total
	Hole ID	From (m)	To (m)	Drilled	Depth(m)	Dip	NAD Azim	NAD83_E	NAD83_N
	XND001W2	506	850	344	857	‐78.6	32.7	375829	6299131
	XND001W1	305	858	508	858	‐78.6	32.7	375829	6299131
	CRZ012	0	984	984	984	‐80.5	32.7	375829	6299131
	CRZ012W1	600	848	248	848	‐80.5	32.7	375829	6299131
	CRZ012W2	565	930	365	930	‐80.5	32.7	375829	6299131
	CRZ012W3	505	530	25	530	‐80.5	32.7	375829	6299131
	CRZ012W4	492	933	441	933	‐80.5	32.7	375829	6299131
	CRZ012W5	485	950	465	950	‐80.5	32.7	375829	6299131
	CRZ012W6	550	948	398	948	‐80.5	32.7	375829	6299131
	CRZ012W7	458	966	508	966	‐80.5	32.7	375829	6299131

Table 1: Quarterly Report December 2011 - Drilling (Hole CRZ012W7 commenced in January,2012).

Drilling Results

To date only one hole of the sixteen completed to target depth has failed to intersect nickel-copper sulphides. Assay results returned during the Quarter include the following highlights:

Hole ID	From (m)	Interval (m)	Ni%	Cu%	Co%
XND001W2	715.09	23.91	2.27	0.80	0.055
Including	715.09	4.53	3.34	1.05	0.081
Including	726.18	1.82	4.38	0.37	0.101
XND001W3	715.04	5.06	2.26	1.67	0.057
CRZ012	773.93	44.75	1.55	0.65	0.044
Including	773.93	3.85	2.83	0.24	0.073
Including	784.90	11.03	2.31	1.01	0.062
Including	807.17	11.51	2.37	0.78	0.062
CRZ012W1	814.32	2.82	1.53	2.49	0.050
CRZ012W2	820.40	6.60	1.05	0.80	0.033
CRZ012W4	717.19	32.51	0.94	0.47	0.024
CRZ012W5	738.00	34.00	0.85	0.50	0.023
and	807.72	10.75	2.10	1.03	0.066
Including	810.09	4.26	3.49	1.75	0.109
CRZ012W6	802.45	9.55	1.03	0.50	0.030

Table 2 :- Mineralised drill hole intersections

Drilling has focused on testing the Lower Zone at the EL Deposit, comprising the high-grade nickel-copper sulphide breccia discovered in May 2011. Within ultramafic rocks, the historically mined breccia had an average grade of approximately 2.5% nickel, with a high-grade core of approximately 4% nickel. Drill holes XND001W2 and CRZ012 are indicative of this style of mineralisation.

In the mafic rocks surrounding the ultramafic core of the host intrusion, broad zones of what can be considered historic ‘run of mine grade mineralisation’ (for the Lynn Lake district) within holes CRZ012W4 are CRZ012W5 is extremely encouraging and provide additional evidence of the strength of the mineralising system at depth.

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

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Revised Exploration Target

The new Exploration Target[1] is the culmination of Corazon’s 2011 exploration at Lynn Lake, where drilling has validated the Company’s geological/ mineralisation model for the EL Deposit and confirmed the down-dip potential of the EL Deposit.

The Exploration target[1] is supported by 72,300 metres of historical surface and underground drilling, as well as approximately 10,700 metres of surface core drilling by Corazon. The deepest drilling has been completed by Corazon at depths in excess of 1,000 metres. Mining and underground development was conducted to 270 metres below surface and an exploration drive (from an adjacent mine) was developed at 600 metres (beneath the mine).

The Exploration Target[1] has a tonnage range of 5.2Mt to 7.4Mt, with contained metal of 52,000t to 139,000t nickel, 23,000t to 55,000t copper and 1,200t to 3,200t cobalt . Full details of the new Exploration Target[1] are provided in the tables presented in the disclosure statements.

This represents a significant increase on the previously stated Exploration Target[1] (announced 18 November 2010), predominantly due to the discovery of a high-grade nickel sulphide breccia at depth below the historic EL Mine (‘Lower Zone’), as well as the recognition in historical drilling of a substantial amount of near surface low-grade mineralisation (‘Upper Zone’).

The newly discovered high-grade component of the EL Deposit is the primary exploration target for Corazon. The Exploration Target[1] for the Lower Zone is defined as:

0.9Mt to 2.8Mt at 2.4% to 3.8 % nickel, 0.9% to 1.4% copper and 0.06% to 0.11% cobalt

The base case range defines the minimum size and tenor of mineralisation as defined by drilling to date, extrapolated between depths of 800 to 1,200 metres below surface. The top range assumes Corazon will outline another high-grade nickel-copper sulphide breccia (similar to that mined at surface), at depths between 800 and 1,200 metres below surface. The style of mineralisation intersected in drilling at depth supports this potential.

The Lower Zone is a significant and attractive exploration play. The Lynn Lake mines were largetonnage/low-cost operations that produced for 23 years at an average grade of 1% nickel and 0.5% copper. Some of these mines were developed to 1,200 metres below surface. Bulk mining methods of these wide zones of mineralisation resulted in low operating costs and attractive operating margins.

Corporate Activities

Cash available to the Company at the end of the December 2011 Quarter was approximately $3.6 million. Corazon successfully raised 4.32 million in equity during the Quarter, through the placement of 36 million ordinary Corazon shares to sophisticated and professional investors at $0.12 per share.

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1 The Exploration Target is conceptual in nature and, to date, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. See the disclosure statement appended to this release for further details.

Level 1, 350 Hay Street, SUBIACO WA 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

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.

1

Exploration Target

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

								Contained Metal
	B C	Tonnes		Grade						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 2 – 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.

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