CORAZON MINING LIMITED — Regulatory Filings 2005

Jul 7, 2005

DRILLING TO COMMENCE AT QUARTZ CIRCLE PROJECT, NEAR NULLAGINE

Graynic Metals Limited ("Graynic") announces that upon listing on the ASX on 30^th June 2005 exploration has been reactivated at the Quartz Circle base metal project near Nullagine in the East Pilbara. A diamond drill rig is booked to start in approximately two-three weeks.

A programme of RC pre-collars (which have all been completed but assays are not yet available) and Diamond core drilling has been designed to test the two key targets at depth.

These include the Quartz Circle prospect; where historic shallow drilling has returned intercepts of 38m $@$ 5.5% Cu and 34m $@$ 4.4% Cu, and the Pb/Zn

prospect where previous results include; 9m $@$ 46% Pb and 17.7m $@$ 16.1% Zn.

Quartz Circle has been explored intermittently since the 1970's and has highlighted the presence of an extensive area of base metal mineralisation. Importantly, geological mapping of the project area has located tourmalinebearing exhalites and quartz-eye tuffs. These rock assemblages represent the classic geological environment of volcanic massive sulphide (VMS) deposits.

It is the Company's view that the area has only been superficially tested with much near surface mineralisation discovered but with very little deeper exploration. Analogies exist in similar environments, such as the Louvicourt copper-zinc deposit in Canada where a combination of good geology and geophysics led to the discovery of a world class deposit starting at 450 metres depth. Graynic has remodeled much of the project data and will test some newer concepts on the origin of mineralisation in the area.

The principal targets for this drilling campaign are;

• At depth below the secondary copper resource at the Quartz Circle prospect.
• $\star$ A zone of strong chlorite alteration adjacent to the Quartz Circle mineralisation.
• A gossanous hill in the vicinity of the Pb/Zn prospect.
• $\star$ A gravity anomaly which has anomalous Zn at shallow levels.
• ÷. At depth below the highly mineralised Pb/Zn zone at the Pb/Zn prospect.

We note that the current prices for both lead and silver are very strong and that forecasts for both minerals remain very positive.

The Company looks forward to continuing its exploration programme in this highly prospective area and wishes to thank all of its shareholders for their support.

Ron Thom Managing Director