CORAZON MINING LIMITED — Interim / Quarterly Report 2013

Jan 30, 2013

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 Quarter ended (“current quarter”) 87 112 898 825 31 Dec 2012

Consolidated statement of cash flows

Consolidated statement of cash flows	Consolidated statement of cash flows
Cash flows related to operating activities		Current quarter $A’000	Year to date (6 months) $A’000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration & evaluation (b) development (c) production (d) administration	(51) (227)	(143) (481)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	8	22
1.5	Interest and other costs of financepaid
1.6	Income taxespaid
1.7	Other income–exploration grant	-	73
	NetOperating Cash Flows	(270)	(529)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects (b) equity investments (c)other fixed assets	(103)	(146)
1.9	Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets	4	4
1.10	Loans to other entities
1.11	Loans repaid byother entities
1.12	Loans from relatedparties
	Net investing cash flows	(99)	(142)
1.13	Total operating and investing cash flows (carried forward)	(369)	(671)

1.13	Total operating and investing cash flows (brought forward)	(369)	(671)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares,options,etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividendspaid
1.19	Other – costs to issue
	Net financing cash flows
		-	-
	Net increase (decrease) in cash held	(369)	(671)
1.20	Cashat beginning ofquarter/yearto date	544	846
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end ofquarter
		175	175

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

		Current quarter $A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	33
1.24	Aggregate amount of loans to the parties included in item 1.10
1.25	Explanation necessaryfor an understandingof the transactions
	• 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 reportingentityhas an interest
	-

Financing facilities available

Add notes as necessary for an understanding of the position.

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

Estimated cash outflows for next quarter

		$A’000
4.1	Exploration and evaluation	50
4.2	Development	-
4.3	Production	-
4.4	Administration	100
	Total	150

Reconciliation of cash

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	140	89
5.2	Deposits at call	35	455
5.3	Bank overdraft	-	-
5.4	Other (provide details)	-	-
	Total: cash at end of quarter(item 1.22)	175	544

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased		Top Up Rise Project Option to acquire the project	-	75%

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices 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	139,141,415	139,141,415
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	1,250,000	1,250,000
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)	48,067,710 2,970,000 2,000,000 8,500,000 5,000,000	48,067,710	Exercise price $0.20 Exercise price $0.07 Exercise price $0.12 Exercise price $0.145 Exercise price $0.20	Expiry date 30 April 2013 Expiry date 13 July 2013 Expiry date 30 November 2013 Expiry date 25 February 2014 Expiry date 1 December 2014
7.8	Issued during quarter
7.9	Exercised during quarter

7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes(totals only)

The ASX has granted Corazon a waiver from ASX Listing Rule 10.13.3 to permit the issue to a related party an entitlement to stage 1 consideration securities, stage 2 option shares, stage 2 consideration shares and stage 3 consideration shares (together the “Deferred Consideration Securities”) pursuant to the binding heads of agreement between Corazon and the shareholders of Border Exploration Pty Ltd (Border) (HOA) on the following conditions

1. the Deferred Consideration Securities are issued no later than 3 years after the date of the shareholder meeting (being no later than 25 January 2016) and the Deferred Consideration Securities are issued on the same terms as the securities issued to unrelated parties;

2. the Notice of Meeting (for meeting held 25 January 2013) sets out all the conditions which must be satisfied prior to the issue of the Deferred Consideration Securities;

3. the conditions relating to the issue of the Deferred Consideration Securities are not varied;

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: .31 January 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.