CORAZON MINING LIMITED — Interim / Quarterly Report 2013

Oct 30, 2013

ASX ANNOUNCEMENT

31 October 2013

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The Manager - Company’s Announcements

Australian Securities Exchange

QUARTERLY ACTIVITIES REPORT – PERIOD ENDING 30 SEPTEMBER 2013

Highlights:

• Phase 1 exploration programme completed at Top Up Rise (TUR)

• Drilling intersected extensive sulphide mineralisation, including massive sulphides

• Low tenors of sulphide mineralisation intersected in all holes –copper, lead and zinc sulphides identified

• Precious and base metal association between copper, lead, zinc, silver, cadmium and gold

• More than one style of mineralisation is apparent at TUR

• Intersection of mineralised gabbro has opened up the possibility of nickelcopper sulphide deposits

• Gabbro identified as a Troctolite, prospective for magmatic nickel-copper mineralisation

• Nickel sulphide (pentlandite) identified in petrology, suggest fertile Troctolite

• $3 million raised to further advance exploration at TUR

• Phase 2 Drilling commenced at TUR (post quarter)

• Multiple targets identified

• First assay results expected in November

• VTEM survey commissioned to cover gravity anomaly commenced (post quarter) to test for conductive units, including massive sulphides.

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to present its Quarterly Activities Report for the period ending 30 September 2013. The quarter’s highlights were dominated by the results of the inaugural drilling programme at the Company’s Top Up Rise (“TUR”) Project in Western Australia, and the capital raising of $3 million to predominantly continue exploration at TUR.

The TUR Project is one of the largest untested residual gravity anomalies in Australia, measuring 10km by 6km and located in a region prospective for iron-oxide copper-gold (IOCG) mineralisation. Highlights of the quarter were the intersection of sulphide mineralisation including

CAPITAL STRUCTURE		BOARD OF DIRECTORS	BOARD OF DIRECTORS		CONTACT US
Market cap. @ 2.5cps	$10M	Clive Jones	Non-executive Chairman		P: +61 (8) 6142 6366
Ordinary shares	401.5M	Brett Smith		Managing Director	M: PO Box 8187, Subiaco East WA 6008
Options	38M	Jonathan Downes		Director	E: info@corazon.com.au
ASX: CZN		Adrian Byass		Director	W: www.corazon.com.au

ASX ANNOUNCEMENT

31 October 2013

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chalcopyrite (copper-sulphide) in all holes drilled, and the definition of base and precious metal association over a large area.

The Company’s Phase 1 drilling programme intersected small zones of massive sulphide (predominantly pyrrhotite with up to approximately 1% copper sulphide and a general basemetal anomalism). In addition to this, the identification of troctolite (a form of gabbro) hosting traces of pentlandite (nickel sulphide) and chalcopyrite (copper sulphide) highlighted the TUR Project’s potential to host magmatic nickel-copper massive sulphide mineralisation.

The Company was extremely encouraged by the results from the inaugural drilling programme, which confirmed the TUR Project as a fertile environment for mineral deposits. Following the successful completion of Phase 1 drilling at TUR, the Company raised $3 million to further advance exploration activities at the Top Up Rise project.

Throughout the quarter, Corazon also continued to progress its Canadian projects, with mining/development studies on-going for the Lynn Lake Nickel-Copper Sulphide Project.

EXPLORATION ACTIVITIES

TOP UP RISE PROJECT, AUSTRALIA

Drilling intersects massive sulphides

The first core drill hole undertaken identified copper sulphide mineralisation at the TUR Project; the intersection of a broad zone of sulphide mineralisation included copper sulphide. Copper mineralisation within drill hole DD001 (Figure 1) existed as chalcopyrite (copper-sulphide) in disseminated ‘blebs’ up to 3mm in diameter and less commonly as coarser crystals on the margins of quartz veins or faults. On average the chalcopyrite mineralisation is low tenor and accounts for approximately less than 1% of the rock mass.

Drill hole DD003 (Figure 1) intersected a similar broad zone of sulphide mineralisation (193m), including predominantly disseminated pyrrhotite, pyrite and chalcopyrite (copper-sulphide). The sulphides are hosted in altered amphibolites and quartz-biotite schists, between 288m and 481m down-hole.

Within this zone, two intervals (between 326.6 to 329.05 metres and 367.3 to 369.3 metres) exhibit particularly strong sulphide mineralisation, including massive pyrrhotite, pyrite and chalcopyrite (Figure 2). Drill hole DD003 intersected significantly more sulphide mineralisation, including chalcopyrite, than previous drill holes of the programme. Within this hole, copper mineralisation is pervasive within most rock types, becoming more intense when associated with or proximal to quartz veins and faults.

Drill hole DD002 was abandoned prior to target depth due to equipment failure down-hole. Logging of this hole suggests mineralisation was improving down-hole, displaying similarities to the mineralisation intersected within DD003.

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ASX ANNOUNCEMENT

31 October 2013

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Drilling identified a spatial and timing association between sulphide (particularly chalcopyrite) and magnetite mineralisation (Figure 2). This is viewed as being very positive as the relationship is typical of distal mineralisation assemblages within many IOCG deposits.

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Figure 1: Drill hole location plan – Residual gravity image (colour) over aeromagnetic image (grey-scale shadow)

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Chalcopyrite
Magnetite
Massive Sulphide
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Figure 2: Core photos from TUR drilling: LEFT – core showing chalcopyrite and magnetite; RIGHT : core showing massive sulphides including pyrrhotite, pyrite and chalcopyrite.

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ASX ANNOUNCEMENT

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Assays returned include 114 selected samples from core holes DD001 and DD003. Preliminary analysis of the results indicates a robust copper, lead, zinc, silver, cadmium and gold metal association.

Although at an early stage of exploration and with only a small assay data set available, it is evident the silver, copper, silver and gold appear to be associated with quartz veining (hydrothermal), while the lead and zinc appear to be more host-dependent.

Peak results are presented in the table below.

Metal	Peak Result	Lower Detection Limit
Gold	176 ppb	1 ppb
Silver	1.96 ppm	0.05 ppm
Copper	0.16 %	0.0001 %
Lead	773 ppm	0.5 ppm
Zinc	712 ppm	1.0 ppm
Bismuth	9.73 ppm	0.05 ppm

Table 1 :- Assay ranges (Job ID TUR13ASSAY02). Sample widths are a maximum of 1m and minimum of 0.5m. Anomalous intervals yet to be determined due to incomplete analysis. Geology suggests multiple zones of anomalism less than 10m down-hole.

	Drill Method	North (MGA52)	East (MGA52)
Hole #				Av Dip	Azimuth	Total Depth
RC001	Aircore/RC	7,499,773	337,335	-90	090	196
DD001	RC/Core	7,499,769	337,513	-70	090	279.7
DD002	RC/Core	7,497,800	339,400	-60	090	328.4
DD003	RC/Core	7,497,798	339,159	-60	090	631.9
DD004	RC/Core	7,503,072	338,397	-90	000	669.8
DD005	RC/Core	7,499,179	340,064	-60	090	369.7

Table 2: Top Up Rise - Drill Hole Collar Details (Hole Prefix = TUR13)

Results to date

Corazon’s exploration at TUR has identified a geochemical anomaly coincident with the geophysical anomaly . Importantly, results to date indicate a robust base and precious metal association exists between copper, lead, zinc, cadmium, silver and gold .

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ASX ANNOUNCEMENT

31 October 2013

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The source of the TUR gravity anomaly remains unexplained and cannot be accounted for purely from the type of rocks intersected in the drilling completed to date. Although it is accepted that the density of these materials may be increased via significant and substantial alteration and/or mineralisation, the Company is yet to intersect such rock in a scale substantial enough to explain the TUR anomaly.

Initial interrogation of assay results received has identified the possibility of both a mafic and granite (porphyry) source for the mineralising fluids.

Mafic host units intersected in the drilling conducted to date have included amphibolite, gabbro and late dolerite dykes. All are variably mineralised, altered and deformed. The discovery of an intrusive mafic lithology identified as a Troctolite presents the possibility of nickel-copper sulphide deposits as a target, as separate to the mineralisation observed to date.

Troctolite is a rare differentiated gabbroic rock which is considered an important host unit at the large Voisey’s Bay nickel deposit in Canada and is found in other large layered mafic terrains such as the metal rich Bushveld Igneous Province in South Africa.

Petrological analysis of sulphides within the Troctolite at TUR has identified lamellae of pentlandite (nickel sulphide) within pyrrhotite. The identification of the Troctolite and pentlandite is significant in that it identifies a fertile environment for formation of nickel-copper sulphide deposits.

The granitic rocks intersected to date are extremely altered and deformed and as such are difficult to identify. These units appear to host lesser quantities of sulphide mineralisation than the altered metasediments, however it is common for quartz veining (within or marginal to these units) to be mineralised.

Drilling recommenced at Top Up Rise

Post quarter, the Company was pleased to announce the commencement of the second phase of exploration drilling at Top Up Rise. A reverse circulation (RC) and diamond core (core) drilling programme is underway to test lithological and geophysical targets within the TUR gravity anomaly. Initial assay results from the drilling are expected early in November, with drilling continuing until mid-November (2013).

Corazon has two main objectives for this phase of drilling:

1. To continue to test for the source of the TUR gravity anomaly, which remains unexplained based on the types and density of rocks intersected to date; and

2. To test, for the first time, zones of structural weakness and other areas that may be prospective as fluid pathways for the base and precious metals mineralisation identified in the initial drilling at TUR

An aerial Versatile Time Domain Electromagnetic (VTEM) survey commenced post quarter in late October. It is possible that the VTEM survey will identify additional targets for drilling. VTEM has been used extensively worldwide to identify both massive sulphide bodies (base metal deposits) and the conductive geophysical nature of potential host rocks. Given the identification of zones of massive sulphide during the first phase of drilling at TUR, and the potential for the

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ASX ANNOUNCEMENT

31 October 2013

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project to host magmatic nickel-copper sulphide deposits, it is anticipated that VTEM will be an effective exploration tool.

Corazon has acquired heritage clearances and drilling approval for eleven target areas within the TUR anomaly. Four of these areas were tested in the initial drilling programme. Phase 2 drilling will initially focus on the other defined targets. It is possible that the VTEM survey will identify additional targets outside the area currently subject to heritages clearances, and preparation is underway for a further heritage clearance survey.

LYNN LAKE NICKEL-COPPER SULPHIDE PROJECT, CANADA

Project update

The Lynn Lake Project represents a significant development opportunity for Corazon. The key target within the project area is the EL Deposit, which was historically the highest grade deposit at Lynn Lake, producing 1.9Mt at 2.5% nickel and 1.15% copper. In 2010, Corazon discovered a high-grade sulphide breccia at depth below the EL Mine, a discovery which confirmed the prospectivity of the Lynn Lake project area.

September quarter activities by the Company at Lynn Lake focused on continuing the definition of the EL Deposit’s benefits, with the view towards recommencing a mining operation in Lynn Lake. The EL Deposit has significant drill defined mineralisation from surface, surrounding the historical mine. This mineralisation is not included in the current interim Inferred Resource, but is defined by the “Upper-Zone Exploration Target” and may be exploitable by open-pit mining methods (details of Exploration Target provided in ASX announcement dated 9[th] December 2011).

BEAUCAGE LAKE GOLD PROJECT, CANADA

Project update

Corazon’s September quarter activities at the Beaucage Lake project centred on the continued collation and interpretation of historical exploration data to assist in target generation for future drilling. Information acquired to date indicates a number of significant untested high grade gold anomalous zones identified from sampling of limited outcrop that are coincident with favourable geophysical trends that are potential drill targets.

An annual Work Permit granted by the Manitoba conservation authorities will enable the Company to undertake a program of field exploration activities to further consolidate data and define drill target locations.

Corazon believes the high tenor of gold mineralisation, over a large area near Beaucage Lake, may be indicative of a large scale mineralised system and the acquisition of Beaucage Lake provides the Company with an additional exploration focus which complements Corazon’s Lynn Lake nickel-copper project and Barrington Lake copper deposit.

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ASX ANNOUNCEMENT

31 October 2013

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CORPORATE ACTIVITIES

Cash at 30 September 2013

Cash available to the Company at the end of the September 2013 quarter was approximately $2,079,000. Tranche 2 of a two tranche placement was completed on 15 October 2013. As a result, capital available to the Company at that date was approximately $3,200,000.

$3 million capital raised to continue exploration activities

During quarter, the Company was pleased to announce it had raised $3 million at 2.8 cents per share to fund the next phase of exploration at Top Up Rise. Hartleys Limited were the Broker to the Offer.

The proceeds of the Placement are being utilised primarily for exploration and drilling activities at TUR, studies and exploration at its Canadian gold and nickel projects and for general working capital purposes.

The Placement was completed in two tranches, with 61,160,555 million shares issued in Tranche One, pursuant to the Company’s capacity under ASX Listing Rules 7.1 and 7.1A. The balance of 45,982,308 million shares was issued in Tranche Two, subject to shareholder approval at the General Meeting held in October 2013.

Post quarter, the General Meeting was held (10 October 2013) and all resolutions put to the meeting were passed unanimously by a show of hands.

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 P: +61 (8) 6142 6366 M: +61 (0) 420 991 574 E: info@corazon.com.au E: james@mandatecorporate.com.au

Disclosure Statements and Important Information

Competent Persons Statement

The information in this report that relates to Exploration Results and Targets 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.

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