CORAZON MINING LIMITED — Interim / Quarterly Report 2013

Jul 29, 2013

ASX ANNOUNCEMENT

30 July 2013

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The Manager - Company’s Announcements

Australian Securities Exchange

QUARTERLY ACTIVITIES REPORT – PERIOD ENDING 30 JUNE 2013

Highlights:

• Ground exploration commenced at Top Up Rise (TUR)

• Gravity survey expanded the size and amplitude of TUR anomaly

• Multiple drill targets confirmed

• Gravity range variation of up to 18mGals

• Large peak residual gravity anomaly of 8mGals

• Target expanded to 10km x 6km in area (at +4mGals residual)

• Drilling intersected massive sulphides, including copper

• All core drill holes to date have intersected copper sulphides

• Drill hole samples submitted for analysis, results expected in August

• Assays returned to date have identified a robust base metal signature (Cu-PbZn-Cd-Ag)

• Drilling continuing, targeting highest gravity response within project area

• IP/EM geophysics are underway to determine the extent of defined sulphide mineralisation

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to present its Quarterly Activities Report for the period ending 30 June 2013. The quarter’s highlights were dominated by the commencement of and subsequent results from the Company’s inaugural drilling programme at its Top Up Rise (“TUR”) Project in Western Australia.

The TUR Project is one of the largest untested residual gravity anomalies in Australia and is located in a region prospective for iron-oxide copper-gold (IOCG) mineralisation. A highlight of the quarter was the completion of a highly successful ground gravity survey, which confirmed the TUR gravity feature as a significant geophysical anomaly.

The Company is currently completing the inaugural drilling programme at the TUR Project. All core drill-holes drilled to date have intersected sulphide mineralisation including chalcopyrite (copper-sulphide). The Company is extremely encouraged by these early results which have confirmed the TUR Project as a fertile environment for mineral deposits.

CAPITAL STRUCTURE		BOARD OF DIRECTORS	BOARD OF DIRECTORS		CONTACT US
Market cap. @ 6.6cps	$19.14M	Clive Jones	Non-executive Chairman		P: +61 (8) 6142 6366
Ordinary shares	290M	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

30 July 2013

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Throughout the quarter, Corazon also continued to progress its Canadian projects, with mining/development studies underway for the Lynn Lake Nickel-Copper Sulphide Project, and the continued collation of historical exploration data for the Beaucage Lake Gold Project which has been identified as an exciting high-grade gold exploration play.

EXPLORATION ACTIVITIES

TOP UP RISE COPPER-GOLD PROJECT, AUSTRALIA

Gravity survey expands size and amplitude of the TUR anomaly

During the quarter, Corazon successfully completed a high-resolution ground gravity survey over the TUR gravity anomaly which increased the size of the anomaly to 10km x 6km (Figure 1). The results of this work confirmed the TUR gravity feature as a significant geophysical anomaly, consisting of numerous sharply defined dense bodies on a regionally significant dense geophysical feature.

The overall target has a background residual gravity value of approximately 4mGals, peaking in several locations at up to 8mGals. There are extreme variations in readings over small distances, with the overall range for all readings reaching 18mGals.

Interpretation of geophysical data suggests:

• The gravity anomaly appears fault bounded and structurally controlled.

• There is no correlation between gravity highs and magnetic trends; gravity highs may both conform to or cross-cut geological features interpreted from the magnetics.

• The gravity anomaly extends to the west and overlaps a major magnetic feature.

• The highest residual gravity anomalies are located in magnetic lows and/or interpreted faults.

Drilling commenced at TUR Project

Following the acquisition of heritage clearances for a detailed ground gravity survey over the TUR anomaly, Corazon was pleased to announce in May the commencement of its inaugural, fully-funded exploration drilling programme at TUR.

Intersection of massive sulphides in drilling

The first core drill hole undertaken identified copper sulphide mineralisation at the TUR Project. Corazon announced post-quarter the intersection of a broad zone of sulphide mineralisation, including copper sulphide. Copper mineralisation within drill hole TUR13DD001 (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.

ASX ANNOUNCEMENT

30 July 2013

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Drill hole TUR13DD003 (Figure 1) intersected a 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).

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

Drill hole TUR13DD003 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 TUR13DD002 was abandoned prior to target depth due to equipment failure downhole. Logging of this hole suggests mineralisation was improving down-hole, displaying similarities to the mineralisation intersected within TUR13DD003.

ASX ANNOUNCEMENT

30 July 2013

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Drilling to date has 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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----- Start of picture text -----

Chalcopyrit
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.

Details of the location of each drill hole undertaken to date are shown in Table 1 below. Samples from all drilling completed to date have been submitted for laboratory analysis.

	Drill Method	North (MGA52)	East (MGA52)			Total Depth
Hole #				Av Dip	Azimuth
TUR13RC001	Aircore/RC	7,499,773	337,335	-90	090	196
TUR13DD001	RC/Core	7,499,769	337,513	-70	090	279.7
TUR13DD002	RC/Core	7,497,800	339,400	-60	090	328.4
TUR13DD003	RC/Core	7,497,798	339,159	-60	090	631.9

Table 1: Top Up Rise - Drill Hole Collar Details

As at the date of this report, drilling is continuing at TUR13DD004 targeting a significant anomaly adjacent to (and slightly crosscutting) the Western Magnetic Feature (Figure 1). Geophysical surveys including IP and EM are also underway, and are expected to be completed in early August.

Results to date

Assays have been returned from the initial RC drill hole (TUR13RC001), which was drilled to test the depth and nature of the basement material, as well as a water bore for subsequent diamond core drilling (Figure 1). Sampled material includes predominantly quartz-biotite schist with minor disseminated pyrite. Analysis has indicated there is a robust base metal signature including an

ASX ANNOUNCEMENT

30 July 2013

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association between copper-lead-zinc-cadmium-silver (Cu-Pb-Zn-Cd-Ag), although, as anticipated, the tenor of metals within these rocks was low.

BEAUCAGE LAKE GOLD PROJECT, CANADA

Project update

Corazon’s June 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 has been applied for and granted by the Manitoba conservation authorities; this 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.

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.

June 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).

ASX ANNOUNCEMENT

30 July 2013

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CORPORATE ACTIVITIES

Cash at 30 June 2013

Cash available to the Company at the end of the June 2013 quarter was approximately $1,800,000.

Expiry of Options

During quarter, the Company notified that 48,067,710 listed options (ASX:CZNO) with an exercise price of 20 cents per option expired on 30 April 2013.

Subsequent to the quarter, the Company notified that 2,970,000 options with an exercise price of 07 cents per option expired on 13 July 2013.

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.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

CORAZON MINING LIMITED

ABN 87 112 898 825	Quarter ended (“current quarter”)
87 112 898 825	30 Jun 2013

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – Exploration grant 1.8 Other – CAD Exploration GST refund	Current quarter $A’000	Year to date (12 months) $A’000
	(472) - - (202) - 16 - - - 1	(810) - - (887) - 42 - - 73 203
NetOperating Cash Flows	(657)	(1,379)
Cash flows related to investing activities 1.9 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.11 Loans to other entities 1.12 Loans repaid by other entities 1.13 Other – Refund for tenement’s bond on completion of field season Net investing cash flows 1.14 Total operating and investing cash flows (carried forward)	(250) - - - 5 - - - -	(396) - - - 9 - - - -
	(245)	(387)
	(902)	(1,765)

• See chapter 19 for defined terms.

Appendix 5B Page 1

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Appendix 5B Mining exploration entity quarterly report

1.14 Total operating and investing cash flows (brought forward)	(902)	(1,765)
Cash flows related to financing activities 1.15 Proceeds from issues of shares, options, etc. 1.16 Proceeds from sale of forfeited shares 1.17 Proceeds from borrowings 1.18 Repayment of borrowings 1.19 1.20 Dividends paid Other – costs to issue 1.21 Other – bank security deposit Net financing cash flows	- - - - - (25) -	3,000 - - - - (242) (35)
	(25)	2,723
Net increase (decrease) in cash held 1.21 Cash at beginning of quarter/year to date 1.22 Exchange rate adjustments to item 1.21 1.23 Cash at end ofquarter	(927) 2,731 (4)	958 846 (4)
	1,800	1,800

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.11	Current quarter $A'000 85 -
1.25	Explanation necessaryfor an understandingof the transactions
	1. Payment of consulting and directors fees to directors.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows -

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	800
	-
	-
	200
Total	1,000

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	1,800	2,731
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,800	2,731

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	-	-	-	-
	E80/4583 E80/4584 E80/4427	Satisfied condition precedent of option agreement.	-	10% 10% 10%

• See chapter 19 for defined terms.

Appendix 5B Page 3

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Issued and quoted securities at end of current quarter	Issued and quoted securities at end of current quarter	Issued and quoted securities at end of current quarter	Issued and quoted securities at end of current quarter	Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together withprices and dates.
	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	290,523,113	290,523,113
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter	2,970,000 2,000,000 8,500,000 5,000,000 15,000,000 7,500,000		Exercise price $0.07 $0.12 $0.145 $0.20 $0.033 $0.06	Expiry date 13 July 2013 30 November 2013 25 February 2014 1 December 2014 30 January 2016 23 April 2016
	7,500,000		$0.06	23 April 2016

• See chapter 19 for defined terms.

Appendix 5B Page 4

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Appendix 5B Mining exploration entity quarterly report

	7.10 Expired during quarter	48,067,710	48,067,710	$0.20	30 April 2013
	7.11 Debentures (totals only)
7.122 Unsecured notes(totals

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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Sign here: ............................................ Date: .....30 July 2013.................

Print name: .. Robert Orr....................................................... (Company secretary)

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• See chapter 19 for defined terms.

Appendix 5B Page 5

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