CORAZON MINING LIMITED — Investor Presentation 2012

Mar 1, 2012

March 2012

COMPANY PRESENTATION

“Nickel Sulphide Discovery in Canada”

New high-grade nickel-copper sulphide discovery at an old mining district in Canada Junior explorer ASX : CZN Market cap $13.8M Discovery hole 23.75 m @ 3.34% Ni, 1.54% Cu, 0.08% Co Analogies with historical mined high-grade 1.9Mt @ 2.5%Ni, 1.15%Cu + Co

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	Unit	Value
Current Price	A$	$0.10
Ordinary shares	#	137,891,415
Options1	#	71,357,710
Market Capitalisation	A$m	$13.8
Cash	A$m	$3.6
Debt	A$m	Nil
Enterprise Value	A$m	$10

1. Volume weighted exercise price of $0.185

Director / KMP	Role
Clive Jones	Non-Executive Chairman
Brett Smith	Managing Director
Jonathan Downes	Non-Executive Director
Adrian Byass	Non-Executive Director
Rob Orr	Company Secretary
Andy Thompson	Chief Geologist

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0.25 9.0
Daily Volum e Traded O n-M arket Daily C lose Price
8.0
0.20
7.0
6.0
0.15
5.0
4.0
0.10
3.0
2.0
0.05
1.0
- 0.0
M ar-11 Apr-11 M ay-11 Jun-11 Jul-11 Aug-11 Sep-11 O ct-11 Nov-11 Dec-11 Jan-12 Feb-12
C losing Price (A$) M illion Shares
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Macquarie Bank Limited
UBS Wealth Management
Directors
Other CZN Share Holders
Factors the issue of 21 million
shares, which are pending
shareholder approval on 14
December 2011
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Obvious Exploration Upside

• Highest grade deposit at Lynn Lake

• Relatively shallow - only mined to 210m in a district with mining depths up to +1,100 metres

Near Surface Mineralisation

• Relatively un-drilled

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North
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South
Truncated Mineralisation
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Mined
1.9 Mt @ 2.5% Ni,
1.15% Cu
Mined Depth
210 m
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• High-grade marginal to workings

• Large amount of low-grade marginal mineralisation

Interim Inferred Resource – 0 to 600m depth

• Constrained by drilling to date

14,400t Ni, 7,200t Cu & 396t Co

Current Exploration Target* – to 1,200m depth

Global Exploration Target 0m ‐ 1200m below surface	Global Exploration Target 0m ‐ 1200m below surface	Global Exploration Target 0m ‐ 1200m below surface	Tonnage Range	Tonnage Range
			From	To
			5,200,000	7,400,000
Metal	Grade Range		Contained Metal Range
	From	To	From	To
Nickel	1.0	1.9	52,000	139,000
Copper	0.4	0.7	23,000	55,000
Cobalt	0.02	0.05	1,200	3,900

* This Exploration Target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

Interim Inferred Resource 1.8 Mt @ 0.8% Ni, 0.4% Cu, 0.02% Co Exploration Drive & Drilling 600 m

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Exploration Target [(] * [)]
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Historically
Untested
XND001W1
Conceptual
23.75 m @ 3.34% Ni, 1.54% Cu & Geology
0.08% Co
incl 13 m @ 4.27% Ni & 0.89% Cu
Mined Depth Adjacent Deposits
1,100 m
X-section looking West
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Upcoming Milestones:

• How big is it?

• Drilling underway, multiple holes

• Drilling to continue during 2012

• Recent drilling results have reshaped the deposit’s prospectivity

• Priority target – high-grade potential at depth

• Already underway

• Analysis of the prospective economics of the project

• Ongoing drilling program to define the new resource.

• Expected by mid 2012

Other key timing considerations:

Exercise of option for 100% equity in Lynn Lake Project to be conducted by October 2012

Corazon is well funded to delineate the resource

Despite the cold conditions at Lynn Lake, drilling is conducted all year round

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Project Highlights

Canada’s 3rd largest nickel producing area CZN – largest land holder in region Excellent infrastructure – regional hub

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• Township

• Abundant hydro-electricity and water

• Sealed airstrip

• Road or rail access to smelters

No environmental or Native Title issue

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A Plug
Mines
EL Mine
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Historical Production

Sheritt Gordon operation – 1953 to 1976 – 23 years Production - 22.2 Mt @ 1% Ni & 0.5% Cu Historical nickel price at <US$2/lb

Maximum mining depth to 1,100m below surface

Current Resources

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The “A Plug” Deposits

Prophecy Platinum Resource TSX-V: NKL (Measured+Indicated+Inferred @ 0.4%NiEq cut-off)

31Mt @ 0.55%Ni & 0.30%Cu

The EL Mine

Corazon Mining Interim Resource (Inferred @ 0.6%NiEq cut-off)

• 1.8Mt @ 0.8%Ni, 0.4%Cu & 0.02% Co

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A Plug
Mines
EL Mine
Ni-Cu sulphide deposits A Plug
Zn-Cu VMS deposits
EL Plug
Regional Geology Interpretation
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Historical Production

Sheritt Gordon operation – 1953 to 1976 – 23 years Production - 22.2 Mt @ 1% Ni & 0.5% Cu Historical nickel price at <US$2/lb

Maximum mining depth to 1,100m below surface

Current Resources

The “A Plug” Deposits

Prophecy Platinum Resource TSX-V: NKL (Measured+Indicated+Inferred @ 0.4%NiEq cut-off)

31Mt @ 0.55%Ni & 0.30%Cu

The EL Mine

Corazon Mining Interim Resource (Inferred @ 0.6%NiEq cut-off)

1.8Mt @ 0.8%Ni, 0.4%Cu & 0.02% Co

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Obvious Exploration Upside

• Highest grade deposit at Lynn Lake Relatively shallow - only mined to 210m in a district with mining depths up to +1,100 metres

Near Surface Mineralisation

Relatively un-drilled

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South
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North
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Truncated Mineralisation

Mined 1.9 Mt @ 2.5% Ni, 1.15% Cu Mined Depth 210 m

High-grade marginal to workings

• Large amount of low-grade marginal mineralisation

Interim Inferred Resource – 0 to 600m depth

• Constrained by drilling to date

14,400t Ni, 7,200t Cu & 396t Co

Exploration Strategy

Drill test for high-grade sulphide breccia at depth Target depth within mining depth window for region

Utilize down-hole geophysics

Exploration Target[(] *[)]

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XND001W1
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23.75 m @ 3.34% Ni, 1.54% Cu &
0.08% Co
incl 13 m @ 4.27% Ni & 0.89% Cu
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Interim Inferred Resource 1.8 Mt @ 0.8% Ni, 0.4% Cu, 0.02% Co Exploration Drive & Drilling 600 m

Historically Untested Conceptual Geology

Mined Depth Adjacent Deposits 1,100 m

X-section looking West

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	UPPER ZONE	UPPER ZONE	UPPER ZONE	UPPER ZONE	Tonnage Range	Tonnage Range
0 ‐ 200m below surface					From	To
Low cost opencut miningoption					2,200,000	2,600,000
Metal			Grade Range		Contained Metal Range
			From	To	From	To
Nickel			0.7	0.7	15,000	17,000
Copper			0.3	0.3	6,000	7,000
Cobalt			0.01	0.01	200	300
		MID ZONE			Tonnage Range
0 ‐ 800m below surface					From	To
Inferred Resource area					2,100,000	2,100,000
Metal			Grade Range		Contained Metal Range
			From	To	From	To
Nickel			0.8	0.8	16,000	16,000
Copper			0.4	0.4	8,000	8,000
Cobalt			0.02	0.02	500	500

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South North
Truncated Mineralisation
Surface
Mined
Upper 1.9 Mt @ 2.5% Ni,
Zone 1.15% Cu
Mined Depth
210 m
Interim Inferred Resource
1.8 Mt @ 0.8% Ni, 0.4% Cu,
0.02% Co
Mid
Zone
Exploration Drive & Drilling
600 m
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Mid
Zone
Exploration Drive & Drilling
600 m
Historically
Untested
Conceptual
Lower Geology
Zone
Mined Depth Adjacent Deposits
1,100 m
X-section looking West
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LOWER ZONE Tonnage Range
800m ‐ 1200m below surface From To
New sulphide breccia discovery 900,000 2,800,000
Grade Range Contained Metal Range
Metal
From To From To
Nickel 2.4 3.8 21,000 106,000
Copper 0.9 1.4 8,000 40,000
Cobalt 0.06 0.11 500 3,200
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* This Exploration Target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource.

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Mined
1.9 Mt @ 2.5% Ni, 1.15% Cu
226 Ni t/vm
(mined)
132 Ni t/vm Mined Depth
210 m
(mining + reserves)
Upper Zone
Reserve Interim Inferred Resource
2.2 Mt @ 1.26% Ni * [)] 1.8 Mt @ 0.8% Ni, 0.4% Cu,
Exploration Target [(]
0.02% Co
5.2 to 7.4 Mt @ 1.0 - 1.9%
Ni, 0.4 – 0.7% Cu, 0.02 –
Upper Zone
500m 0.05% Co
Exploration Drive & Drilling
600 m
125 Ni t/vm
(resource)
Drill Hole KUD810 Untested
1.40 m @ 2.50% Ni &
2.90 m @ 3.00% Ni Lower Zone XND001W1
900m 23.75 m @ 3.34% Ni, 1.54% Cu &
0.08% Co
incl 13 m @ 4.27% Ni & 0.89% Cu
Mined Depth Adjacent Deposits
1,100 m
To 1,100 mbs
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[ * From Panoramic Resources Ltd – company presentation – June 2010]

[ * This Exploration Target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. ]

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EL Extensions – High Grade Sulphide Breccia
South North
XND001W1
Truncated Mineralisation
23.75 m @ 3.34% Ni, 1.54% Cu & 0.08% Co Surface
Mined
incl 13 m @ 4.27% Ni & 0.89% Cu 1.9 Mt @ 2.5% Ni,
1.15% Cu
Sulphide Fault
Breccia Fault Mined Depth
210 m
Plan View IntrusionMafic
2000 ft Level Mapping
Ultramafic Interim Inferred Resource
Core 1.8 Mt @ 0.8% Ni, 0.4% Cu,
0.02% Co
Exploration Drive & Drilling
600 m
Fault
Historically
Deepest Historical Drill Hole Untested
EL-U227 (drilled 1962) Conceptual
35.81 m @ 1.50% Ni & 0.47% Cu Geology
incl 2.29 m @ 3.50% Ni & 0.53% Cu
and 3.04 m @ 2.66% Ni & 0.63% Cu
and 2.74 m @ 3.48% Ni & 0.34% Cu
Mined Depth Adjacent Deposits
1,100 m
X-section looking West
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XND001 23.50m @ 1.50% Ni & 0.50% Cu

XND001W1 23.75m @ 3.34% Ni & 1.54% Cu Including

13.00m @ 4.27% Ni & 0.89% Cu

CRZ011A 2.3m @ 3.84% Ni & 0.41% Cu

CRZ011AW1 1.42m @ 3.99% Ni & 0.36% Cu 6.00m @ 1.89% Ni & 1.17% Cu

XND001W2 23.91m @ 2.27% Ni & 0.80% Cu XND001W3 5.06m @ 2.26% Ni & 1.67% Cu

CRZ012 44.75m @ 1.55%Ni & 0.65%Cu Including :- 3.85m @ 2.83%Ni & 0.24%Cu 11.03m @ 2.31%Ni & 1.01%Cu 11.51m @ 2.37%Ni & 0.78%Cu

CRZ012W1 2.82m @ 1.53%Ni & 2.49%Cu

CRZ012W2 6.60m @ 1.05%Ni & 0.80%Cu

CRZ012W4 32.5m @ 0.94%Ni & 0.47%Cu

CRZ012W5 34.0m @ 0.85%Ni & 0.50%Cu Including 10.75m @ 2.10% Ni & 1.03% Cu

CRZ012W6 9.55m @ 1.03%Ni & 0.50%Cu

CRZ012W7 32.46m @ 1.26%Ni & 0.72%Cu

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XND001W2
-700 mbs 23.91 m @ 2.27% Ni & 0.80% Cu
Discovery Hole XND001W1
23.75 m @ 3.34% Ni & 1.54% Cu
CRZ012W7
32.46 m @ 1.26% Ni & 0.72% Cu
CRZ012
44.75m @ 1.55%Ni & 0.65%Cu
Including:-
3.85m @ 2.83%Ni & 0.24%Cu
11.03m @ 2.31%Ni & 1.01%Cu
11.51m @ 2.37%Ni & 0.78%Cu
-800 mbs
Drill hole Cross-Section
Looking West – 25m grid pattern
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Poly-Metallic Mineralisation – Nickel, Copper & Cobalt

The EL Deposit is predominantly a nickel deposit, with significant copper and cobalt metal credits Lynn Lake has a long history of mining and processing, with historical recoveries reported as 85% for nickel, 93% for copper and 80% for cobalt

Recent drill results are well above the historic “run of mine” grades for the district

Hole Number	Interval (m)	Ni %	Cu %	Co %	Ni Eq %	Cu Eq %
XND001	23.53	1.46	0.54	0.036	1.72	5.01
XND001W1	23.75	3.34	1.54	0.079	4.03	11.76
XND001W2	23.91	2.27	0.80	0.055	2.66	7.75
	4.53	3.34	1.05	0.081	3.87	11.28
	1.82	4.38	0.37	0.101	4.71	13.75
CRZ012	44.75	1.55	0.65	0.044	1.86	5.43
	3.85	2.83	0.24	0.073	3.06	8.93
	11.03	2.31	1.01	0.062	2.78	8.12
	11.51	2.37	0.78	0.062	2.76	8.06
CRZ012W4	32.51	0.94	0.47	0.024	1.15	3.36
CRZ012W5	34.00	0.85	0.50	0.023	1.07	3.12
	10.75	2.10	1.03	0.066	2.59	7.55
CRZ012W7	32.46	1.26	0.72	0.032	1.57	4.59
	73.46	0.81	0.50	0.022	1.03	2.99

Selected drill hole results from recent exploration, with Nickel and Copper metal equivalents

Ni Eq % = Ni%+(Cu% x (3.00/8.75))+(Co% x (18.00/8.75)) where Ni = 8.75$ US/lb Cu = 3.00 $US/lb Co = 18.00 $US/lb Cu Eq % = Cu%+(Ni% x (8.75/3.00))+(Co% x (18.00/3.00)) where Ni = 8.75$ US/lb Cu = 3.00 $US/lb Co = 18.00 $US/lb

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Mine Area Plan View
North
EL Mine
150 Plug EL Mine A Plug Deposits
2000 foot lev el
New
High-Grade
Discovery
Mine Area
Cross-Section View
(looking west)
Corazon Tenements Prophecy Tenements
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Mining and Processing Key Criteria
Item Units Values
Lynn Lake – Past Mining Studies
Underground (all zones)
Underground Ore ‐ Production tonnes 10,737,237
Mine Area Plan View Average Mined (diluted) Grades
Nickel % 0.64
Copper % 0.35
Cobalt % 0.02
North
Total Ore Milled tonnes 10,737,237
Processing
Plant Throughput tonnes/day 3,000
tonnes/year 1,080,000
EL Mine Mill Recoveries
Nickel % 81.50
Copper % 92.00
Cobalt % 80.50
Additional Metal Recovery Costs
Royalty % 0.00
Metal Transportation $/lb 0.16
Losses and Brokerage % 0.50
Metal Prices
150 Plug EL Mine A Plug Nickel US$/lb 9.01
N & O Deposits
Copper US$/lb 2.13
Cobalt US$/lb 18.59
Costings
Mining ‐ Total Ore $/t 32.33
Milling ‐ Ore $/t 16.06
General & Admin $/t 20.11
2000 foot lev el Power $/t 2.04
Metal Transporation $/t 2.56
Losses & Marketing $/t 0.62
New
High-Grade
Total Mining & Milling $/t 73.73
Discovery
Cost per lb Ni $/lb 7.06
Cost per lb Ni, net of Cu+Co credits $/lb 4.90
Lynn Lake Nickel Mine Prefeasibility Study ‐ Wardrop, 2007 for
Mine Area Independent Nickel Corp
Cross-Section View (All $ are Canadian $ unless otherwise stated. Exchange rate US$/CDN$ = 0.87)
(looking west)
Corazon Tenements Prophecy Tenements
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Mining and Processing Key Criteria	Mining and Processing Key Criteria	Mining and Processing Key Criteria		Price Escalation Estimate 5 yrs @ 2.5% 36.58 18.17 22.75 2.31 2.90 0.70 83.42 7.99 5.54 EL Deposit target grades are much higher
Item	Units	Values
Underground (all zones) Underground Ore ‐ Production Average Mined (diluted) Grades Nickel Copper Cobalt Total Ore Milled	tonnes % % % tonnes	10,737,237 0.64 0.35 0.02 10,737,237
Processing Plant Throughput	tonnes/day tonnes/year	3,000 1,080,000
Mill Recoveries Nickel Copper Cobalt	% % %	81.50 92.00 80.50
Additional Metal Recovery Costs Royalty Metal Transportation Losses and Brokerage	% $/lb %	0.00 0.16 0.50
Metal Prices Nickel Copper Cobalt	US$/lb US$/lb US$/lb	9.01 2.13 18.59
Costings Mining ‐ Total Ore Milling ‐ Ore General & Admin Power Metal Transporation Losses & Marketing	$/t $/t $/t $/t $/t $/t	32.33 16.06 20.11 2.04 2.56 0.62
Total Mining & Milling Cost per lb Ni Cost per lb Ni, net of Cu+Co credits	$/t $/lb $/lb	73.73 7.06 4.90
Lynn Lake Nickel Mine Prefeasibiltiy Study ‐ Wardrop, 2007 for Independent Nickel Corp (All $ are Canadian $ unless otherwise stated. Exchange rate US$/CDN$ = 0.87)

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Upcoming Milestones:

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Early
Resource
Stage Mine
upgrade
Planning
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• How big is it?

• Recent drilling results have reshaped the deposit’s prospectivity

• Drilling underway, multiple holes

• holes  Priority target – high-grade

• Drilling to continue during 2012 potential at depth

• Already underway

• Analysis of the prospective economics of the project

• Ongoing drilling program to define the new resource.

• Expected by mid 2012

Early Desktop Mining Study Results:

Canadian mining costs expected to be between 30% and 50% less than Australian mining costs Shaft Vs Decline - very similar in Op Cost for a 1Mtpa operation at the EL Deposit Studies on-going

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Spectacular new nickel sulphide discovery below historical nickel mine

 CZN discovery hole: 23.75m @ 3.34% Ni, 1.54% Cu, 0.08% Co

Corazon with option to acquire 100% equity in project Canada’s 3[rd] largest nickel producing area, with Corazon the largest landholder in the area

Excellent infrastructure / strong local mining culture

Upgraded Exploration Target[*] of between 5.2Mt and 7.4Mt with contained metal ranges of:

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

Exploration drilling ongoing – regular news flow over coming months Capital structure has little downside risk

• [ * This Exploration Target is conceptual in nature, there has been insufficient exploration (namely drilling) to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. ]

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Upcoming Milestones:
Ongoing Exploration Early
Resource
Drill Target Stage Mine
upgrade
Results upgrade Planning
 How big is it?  Recent drilling results have re-  Already underway  Ongoing drilling program to
 Drilling underway, multiple shaped the deposit’s prospectivity  Analysis of the prospective define the new resource.
holes  Priority target – high-grade economics of the project  Expected by mid 2012
 Drilling to continue during 2012 potential at depth
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Forward Looking Statements

This presentation has been prepared by Corazon Mining Limited (“Corazon”). It contains forecasts and forward looking statements which are no guarantee of future performance and which involve certain risks. Actual results and future outcomes will in all likelihood differ from those outlined herein. The presentation should not be construed as an offer or invitation to subscribe for or purchase securities in Corazon. Nor is it an inducement to make offer or an invitation with respect to said securities.

Forward-looking statements are statements that are not historical facts. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

Mineral Resource

The EL Mine was one of the highest grade nickel mines in the district, having operated between 1954 and 1962 and produced 1.9Mt @ 2.5% nickel and 1.15% copper to a mined depth of only 210 metres. Whilst the defined boundary of the mineralised host unit is well established, drilling in areas of the resource has not been of sufficient density to accurately define the distribution of high-grade sulphide mineralisation. For this reason, the influence of the high grade material within the resource has been restricted and consequently the resource is categorised as inferred. This resource provides a very good base from which to focus on-going exploration, and it is the Company’s opinion that it is conservative in terms of the full potential of the deposit and that additional drilling will provide a more accurate model particularly for the distribution of high-grade mineralisation.

Mineral Resources have been estimated using standard accepted industry practices. All Resources have been estimated via Block Ordinary Kriging using 2m composite samples. No top cuts have been applied which was considered appropriate for the nature and style of the mineralization. Directional Variography was modeled for all zones based on 2m composites. Geological and mineralization modeling has been achieved by 3D modeling of the inner and outer core of the intrusive mafic/ultramafic plug and the mined voids. A Block model was developed for the deposit incorporating a suitable parent and sub block dimension to allow adequate volume resolution of modeled geology and mineralization. Grade interpolation (via Block Ordinary Kriging) was then undertaken using a multiple estimation pass strategy.

Mineral Resources are classified on a basis of drill-hole spacing, geological continuity and predictability, sampling, analytical, spatial and density QAQC criteria. Where quoted, Mineral Resource and Ore Reserve tonnes, pounds or ounces are rounded to appropriate levels of precision.

Corazon have yet to complete mining studies or metallurgical/processing analysis on the EL Mine mineralisation. However, Lynn Lake is an historical nickel, copper and cobalt mining camp which operated for more than 20 years. Reported historical mine base cut-off grades were between 0.5% and 0.7% nickel. Metal recoveries reported were approximately 85% for nickel, 93% for copper and 80% for cobalt. Past mining utilized very simple open stope with sublevel mining methods. The historical EL Mine main stope is up to 100 metres in diameter, plus 200 metres in depth, and provides a large tonnage - low cost mining opportunity.

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Mineral Resource (continued)

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 metal assays 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.

Assays from Corazon drilling and re-assayed historic drill-holes used in the Mineral Resource have undergone full QA/QC whereas assays from the 2007-2008 drilling by Western Areas did not have field standards used. The spatial location of samples from surface holes is derived from a combination of 3D differential GPS collar survey pickups and Reflex Maxibore® II downhole surveys. Historic underground hole included in the resource have not been surveyed by modern methods collars were digitized and converted from historic level plans.

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.

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 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.

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 is the area between 200 and 800 metres below surface, and covers an area defined predominantly by the current Inferred Resource (reported at a 0.6% Ni equivalent[2] bottom cut-off grade). 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.

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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 Thompson, B.Sc Hons (Geol), MAusIMM, an employee of Corazon Mining Limited. Mr Thompson has sufficient experience that is relevant to the style of mineralisation 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. All information relating to the Exploration Results, Mineral Resources or Ore Reserves of other companies are referenced within this document.

Level 1 350 Hay Street SUBIACO WA 6008

www.corazon.com.au

Ph +61 (8) 6364 0518 Fx +61 (8) 6210 1872

PO Box 8187 SUBIACO East WA 6008