CORAZON MINING LIMITED — Interim / Quarterly Report 2015

Oct 28, 2015

ASX ANNOUNCEMENT

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29 October 2015

The Manager - Company’s Announcements Australian Securities Exchange

QUARTERLY ACTIVITIES REPORT

PERIOD ENDING 30 SEPTMEBER 2015

• Corazon has secured new, more favourable terms for its acquisition of 100% of the Lynn Lake Nickel Copper Project in Canada.

• Significant financial advantage in new agreement, facilitating on-going exploration and development activities.

• Corazon controls entire Lynn Lake nickel district - one of Canada’s most prolific historical nickel producing areas, with existing resources and exciting exploration upside.

• Combined project area creates a major nickel-copper asset, with benefits in scale and mine-life for potential future mining operation.

• Mining and processing studies underway, preparing the project for possible recommencement of mining subject to improved metal prices.

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to present its Quarterly Activities Report for the period ending 30 September 2015. Corazon’s sole focus during this quarter was on developing its Lynn Lake Nickel-Copper Sulphide Project (“Project”) in the Manitoba region of Canada. The Lynn Lake district has an enormous metal endowment localised in a very confined area, and Corazon’s consolidated project area has excellent prospectivity.

So far in 2015, Corazon has acquired the Victory Nickel Project (“Victory”, “Victory Agreement”) and consolidated the Lynn Lake Nickel Field for the first time since the Lynn Lake Mine closed in 1976, following 24 years of operation as a large tonnage-low cost mine. Subsequent to the Victory acquisition, Corazon completed a JORC 2012 compliant Resource Estimate (“Resource”) for part of the Lynn Lake Mining Centre, which combines and upgrades resources previously reported in both JORC 2004 and NI43-101 (Canadian) reporting standards, as well as incorporating some new areas of mineralisation defined by the previous mining operation.

This quarter, Corazon was successful in renegotiating the acquisition terms for the Lynn Lake NickelCopper Project (“Dunlop Agreement”), removing a significant payment hurdle and ensuring the Company’s development and exploration work on the highly prospective Lynn Lake project area progresses.

Regarding the new acquisition terms, Managing Director Mr Brett Smith stated: “ This new deal helps with advancement of the Project and we’re fortunate that all parties have the common goal of developing Lynn Lake. We’ve recently consolidated the land package and having all the prospective nickel ground under the control of one company provides an enormous benefit to focus investment and optimise our resources. ”

CAPITAL STRUCTURE		BOARD OF DIRECTORS	BOARD OF DIRECTORS		CONTACT US
Market cap. @ A$0.005	$2.20M	Clive Jones	Non-executive Chairman		P: +61 (8) 6142 6366
Ordinary shares	441.6M	Brett Smith		Managing Director	M: PO Box 8187, Subiaco East WA 6008
Unlisted Options	30M	Jonathan Downes		Director	E: info@corazon.com.au
ASX: CZN		Adrian Byass		Director	W: www.corazon.com.au

ASX ANNOUNCEMENT

29 October 2015

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“ The work Corazon is currently undertaking at Lynn Lake is extremely exciting. We have access to an enormous amount of mining and exploration data across the entire project area which is yet to be consolidated and analysed using modern exploration understanding and techniques. ”

Corazon strongly believes that bringing the Lynn Lake and Victory nickel projects together creates a significant nickel-copper asset, improves the economics of any potential mining operation and provides benefits in scale and possible mine life. Lynn Lake provides an excellent development opportunity leveraged to improvements in the nickel metal price.

FAVOURABLE NEW TERMS FOR LYNN LAKE NICKEL PROJECT, CANADA

Corazon controls the entire historical Lynn Lake nickel sulphide mining area (Figure 1), including ground 100% owned by Corazon following its acquisition of the Victory Nickel-Copper Project (ASX announcement 1 April 2015; “Victory Agreement”) and ground on which Corazon has the rights to acquire 100% (ASX announcement 9 August 2012; “Dunlop Agreement”).

Under the terms of the original Option Agreement, Corazon was required to make cash payment of C$1 million by 20 October 2015 to acquire 100% equity in the Project. Given the current market, this payment and other related deferred payments were to be an impediment to the advancement of the Project and as such all parties have agreed to a new structure for the acquisition of the Project

The new terms remove the requirement for the C$1,000,000 lump sum payment and are replaced by halfyearly payments of C$100,000 until payments totalling C$1 million are made (which would be 20 April, 2019).

Agreement Variation:

Previous terms for the acquisition of 100% of the project included:

• Option period ends 20 October 2015.

• Payment of C$100,000 per annum for each annual extension period.

• Payment of C$1M to acquire 100% equity in the project at any time during the option period; plus

• A deferred consideration of C$750,000 on the earliest of either:

• Defining a JORC compliant resource greater than 30,000 tonnes of nickel metal;

• Completion of a positive feasibility study; or

• The commencement of commercial mining.

• Should Corazon proceed to earn a 100% interest in the project, a residual royalty of 2.5% NSR will remain with the owner. Corazon will have the ability to purchase half of this royalty, reducing it to 1.25% for C$1.25 million.

New terms for the acquisition of 100% of the project include:

• Option Payments of C$100,000 half-yearly until Project is acquired or payments total C$1M (cumulative – 20[th] April, 2019).

• Project Acquisition for CAD$1M at any time, less completed Option Payments; plus

• A deferred consideration of CAD$750,000 on the commencement of commercial mining.

• Should Corazon proceed to earn a 100% interest in the project, a residual royalty of 2.5% NSR will remain with the owner. Corazon will have the ability to purchase half of this royalty, reducing it to 1.25% for C$1.25 million.

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ASX ANNOUNCEMENT

29 October 2015

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Figure 1 – Corazon’s wider Lynn Lake project area showing mafic plug outlines and infrastructure over (Milligan 1957) interpreted geology.

CURRENT ACTIVITIES

Corazon’s upgrade of the JORC 2004 resource for the EL Deposit, the NI 43-101 resource for the Victory Project to JORC 2012 resource status will form the basis of future mining and processing work. The Company’s focus at Lynn Lake is on determining exploitable resources rather than seeking to identify the total metal content within the project area.

Corazon has inherited a large amount of legacy data with the recent acquisition. Collating and standardising this data for interrogation using modern exploration techniques are expected to identify additional area for exploration and resource definition.

Exploration: Canadian geologist Dr Larry Hulbert has been engaged by Corazon to assist in the collation of past exploration information and the definition of new targets at Lynn Lake. Dr Hulbert has extensive knowledge of the Lynn Lake district and over 40 years' experience in Ni-Cu-PGM exploration and research and is one of North America's foremost experts on magmatic sulphide deposit exploration and discovery.

Dr. Hulbert has been actively running exploration programs in Canada for over 20 years and has been working as a Cu-Ni-PGM specialist consulting to companies engaged in exploration in Canada, USA and

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ASX ANNOUNCEMENT

29 October 2015

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Mexico. Dr. Hulbert has authored numerous professional papers, was the recipient of the Barlow Medal from CIM in 1993, a Robinson Distinguished Lecturer for the Geological and Mineralogical Association of Canada for 2001-2002, and in 2003 received the Earth Sciences Sector Merit Award from Natural Resources Canada.

Mining Studies : Canadian based Australian senior mining engineer Mr George Smith has been engaged by the Company as an independent consultant to manage the development of a Scoping Study for the Lynn Lake Nickel-Copper Project. Mr Smith has more than 20 years of underground and open-cut mining experience in Australia and Canada and was most recently the Manager of Evaluations for Barrick Gold Corporation (based in Toronto). His extensive experience in the management and mining of a large variety of mineral deposit types will be of enormous benefit to developing mining strategies at Lynn Lake.

Mineral Processing Analysis : Australian project services company Midas Mets Engineering has been contracted to provide mineral processing technical due diligence and concentrate treatment options. Processing methods have changed considerably since previous mining was undertaken at Lynn Lake in the 1970's, with modern options providing a much broader range of choices regarding the extraction and treatment of nickel and copper concentrate.

CASH POSITION

Corazon is in a solid financial position, closing the September 2015 quarter with approximately $1.51 million in cash. The Company’s current activities are predominantly desk-top studies and are relatively low cost.

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

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 is an employee of Corazon Mining Limited and has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves (JORC Code 2012). 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

Forward Looking Statements: This announcement contains certain statements that may constitute “forward looking statement”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements.

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ASX ANNOUNCEMENT

29 October 2015

Schedule of Tenements

CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS

(as required by ASX Listing Rule 5.3.3)

CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) **	CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) **	CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) **	CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) **	CORAZON MINING LIMITED CONSOLIDATED BASIS SCHEDULE OF INTERESTS IN MINING TENEMENTS **(as required by ASX Listing Rule 5.3.3) **
Project	Mining tenements held	Location of tenements	Beneficial % interest at the end of the quarter	Change in the quarter
LYNN LAKE	P7700E	Canada	100%1
LYNN LAKE	P7698E	Canada	100%1
LYNN LAKE	P8370E	Canada	100%1
LYNN LAKE	P7699E	Canada	100%1
LYNN LAKE	P7702E	Canada	100%1
LYNN LAKE	P3163F	Canada	100%1
LYNN LAKE	P3164F	Canada	100%1
LYNN LAKE	P3165F	Canada	100%1
LYNN LAKE	P2291F	Canada	100%1
LYNN LAKE	P3534F	Canada	100%1
LYNN LAKE	MB2482	Canada	100%1
LYNN LAKE	MB3566	Canada	100%1
LYNN LAKE	MB3567	Canada	100%1
LYNN LAKE	P1045F	Canada	100%1
LYNN LAKE	MB3580	Canada	100%1
LYNN LAKE	MB3581	Canada	100%1
LYNN LAKE	MB7346	Canada	100%1
LYNN LAKE	MB7349	Canada	100%1
LYNN LAKE	MB7350	Canada	100%1
LYNN LAKE	MB7025	Canada	100%1
LYNN LAKE	MB7361	Canada	100%1
LYNN LAKE	MB7362	Canada	100%1

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ASX ANNOUNCEMENT

29 October 2015

LYNN LAKE	MB6364	Canada	100%1
LYNN LAKE	MB5175	Canada
			100%1
LYNN LAKE	MB5701	Canada	100%1
LYNN LAKE	MB8734	Canada	100%1
LYNN LAKE	MB8735	Canada	100%1
LYNN LAKE	MB9218	Canada	100%1
LYNN LAKE	MB5399	Canada	100%1
LYNN LAKE	MB6360	Canada	100%1
LYNN LAKE	MB6361	Canada	100%1
LYNN LAKE	MB6362	Canada	100%1
LYNN LAKE	MB6363	Canada	100%1
LYNN LAKE	MB9453	Canada	100%1
LYNN LAKE	MB5672	Canada	100%1
LYNN LAKE	MB5669	Canada	100%1
LYNN LAKE	MB10070	Canada	100%1
LYNN LAKE	MB10071	Canada	100%1
LYNN LAKE	MB10085	Canada	100%1
LYNN LAKE	MB10086	Canada	100%1
LYNN LAKE	MB10382	Canada	100%1
LYNN LAKE	MB10383	Canada	100%1
LYNN LAKE	MB10384	Canada	100%1
LYNN LAKE	MB10387	Canada	100%1
LYNN LAKE	MB10388	Canada	100%1
VICTORY PROJECT	MB11328	Canada	100%2
VICTORY PROJECT	MB11388	Canada	100%2
VICTORY PROJECT	MB11389	Canada	100%2
VICTORY PROJECT	MB11390	Canada	100%2
VICTORY PROJECT	M2228	Canada	100%2

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ASX ANNOUNCEMENT

29 October 2015

VICTORY PROJECT	M2229	Canada	100%2
VICTORY PROJECT	M2230	Canada	100%2
VICTORY PROJECT	M2232	Canada	100%2
VICTORY PROJECT	M2233	Canada	100%2
VICTORY PROJECT	M2234	Canada	100%2
VICTORY PROJECT	M2248	Canada	100%2
VICTORY PROJECT	M2249	Canada	100%2
VICTORY PROJECT	M2251	Canada	100%2
VICTORY PROJECT	M2252	Canada	100%2
VICTORY PROJECT	M2253	Canada	100%2
VICTORY PROJECT	M2254	Canada	100%2
VICTORY PROJECT	M2255	Canada	100%2
VICTORY PROJECT	M2256	Canada	100%2
VICTORY PROJECT	ML77	Canada	100%2
VICTORY PROJECT	ML90	Canada	100%2
BARRINGTON LAKE	MB9634	Canada	100%1

NOTES:

1. Option to acquire up to 100% of Lynn Lake and Barrington Lake Projects; for terms of the agreement, refer to prior announcement dated 09/08/12.

2. Acquired up to 100% of the Victory Project; for terms of the agreement, refer to prior announcement dated 01/04/15.

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