CORAZON MINING LIMITED — Regulatory Filings 2017

Jul 10, 2017

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----- Start of picture text ----- ASX ANNOUNCEMENT 11 [th] July 2017----- End of picture text -----

CORAZON TO COMMENCE NEXT PHASE OF METALLURGICAL TESTWORK AT COBALT RIDGE

• Following outstanding first phase metallurgical testwork results, detailed processing studies to commence for the Cobalt Ridge Deposit in NSW.

• Proposed work will determine detailed processing design and engineering requirements for a variety of cobalt product types, including high-quality cobalt-salts suitable for rechargeable batteries.

• First phase metallurgical testwork completed in Q1 this year delivered highly positive results, including:

  • Simple flotation processes recovering 92.2% of the cobalt, 89.0% of the copper and 75.5% of the gold from just 11.1% of mass; and

  • Resultant concentrate grade of 7.38% cobalt, 1.29% copper and 4.1 g/t gold, with expectations of producing a high-value 12% cobalt concentrate.

• Early results were based on rock chip samples; proposed testwork will be conducted on bulk drill core samples and is expected to deliver even stronger results.

• METS Engineering has been engaged to complete detailed metallurgical testing on the Cobalt Ridge cobalt-copper-gold mineralisation – program designed to upgrade the level of metallurgical understanding of the Cobalt Ridge Deposit.

• Drilling approval process underway for the commencement of drilling in August.

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce it has engaged industry-leading independent consultancy METS Engineering to complete detailed metallurgical testwork on the Cobalt Ridge Deposit (“Cobalt Ridge”) within the Mount Gilmore Project (“Project”) in New South Wales.

Cobalt Ridge hosts one of the highest-grade cobalt deposits in Australia. Corazon believes this rare cobalt-dominant sulphide deposit has the potential to supply a quality cobalt product, suitable for use in lithium-ion batteries and the emerging rechargeable battery sector.

The unique cobalt-copper-gold mineralisation at Cobalt Ridge has the potential to deliver a variety of saleable products. Corazon’s Managing Director Mr. Brett Smith stated, “ It’s important for us at an early stage to fully appreciate the flexibility we have with respect to processing, plant design and product specification. While our desire is to produce cobalt for the rechargeable battery sector - which would be an end-point product - there maybe numerous opportunities along that processing path where benefits exist and other cobalt products can be delivered for sale .”

Resource definition drilling is proposed to commence in August, with core samples for metallurgical testing expected to be delivered to the laboratory in early September. These new studies will also help determine the optimal size of the resource required at Cobalt Ridge.

The testwork will be managed by internationally recognised metallurgical consultants, METS Engineering, and will investigate the methods required to produce a high-grade metal concentrate, suitable for outright sale or as a feedstock for downstream processing. Proposed downstream processing studies will determine methods suitable for the production of quality cobalt salts for use

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

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in the rechargeable battery industry, or a high-quality metal for sale into the more traditional cobalt markets.

The metallurgical studies are expected to be completed over approximately three months and will be followed by engineering and processing studies designed to determine the Project’s processing options, as well as postulate early assumptions on the potential commercial viability of these options.

Previous Metallurgical Test Results

To date, metallurgical test results from Cobalt Ridge mineralisation have been exceptional. Simple flotation studies have yielded a recovery of 92.2% for cobalt, 89% for copper and 75.5% for gold, in a total concentrate with 11.1% mass recovery (ASX announcement 7[th] March 2017).

This test work was conducted on a representative sample composited from reverse circulation (RC) drill chips from the Company’s Q4 2016 drilling program, which intersected mineralisation from near surface to depths of up to 151 metres. The composite sample graded 0.84% cobalt, 0.21% copper and 0.47 g/t gold .

These are first pass results and the Company anticipates it is highly likely for even better results to be achieved from core and rock samples.

Initial sighter-gravity concentration testwork indicated that a high-grade cobalt concentrate is obtainable from a small fraction of the feed mass. The results suggest that a 12.2% cobalt grade concentrate can be produced from only 1.31% of the initial mass. This has the potential to significantly reduce downstream equipment size and reagent consumption, improving both the Project’s CAPEX and OPEX.

Mt Gilmore Project Overview

The Mt Gilmore Project is located 35 kilometres from the major centre of Grafton in north-eastern New South Wales. Corazon owns a 51% interest in Mt Gilmore and has an exclusive right to earn up to an 80% interest in the Project.

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Figure 1 – Project Location

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

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The prospective 18 kilometre Mt Gilmore trend has been identified within the Project area; it includes:

• Over 25 historic copper, gold, cobalt and iron workings, including significant shafts, adits and drives with high-grade copper and gold mineralisation (rock chips up to grades of 26.8% Cu and 9.2 g/t Au); and

• Five large scale Cu-Au targets that have been defined to date.

Although mapping indicates extensive hydrothermal alteration and copper-gold mineralisation at surface, very little modern exploration has been undertaken at the Project. Aside from small-scale historic copper-gold and iron mines, previous exploration has predominantly been restricted to general prospecting/ mapping, rock-chip/ grab sampling, with drilling completed at only one of the targets (the Pulganbar – Cobalt Ridge area).

Corazon completed its maiden drilling program at Mt Gilmore in December 2016, testing the continuity, position and extent of the cobalt-copper-gold mineralisation within the Cobalt Ridge prospect area. Corazon’s drilling validated historical mining and exploration results and confirmed the presence of multiple zones of sulphide mineralisation over a strike length of at least 300 metres. The mineralisation remains open along strike and at depth.

Recent Company ASX announcements regarding Cobalt Ridge have included:

• New Cobalt Zones Identified

• Cobalt Ridge Metallurgical Results

  • 9 June 2017

  • 7 March 2017

• Cobalt Ridge Drilling Assay Results 16 January 2017

Lynn Lake Project (Canada) - Update

Exploration by Corazon at the Fraser Lake Complex, located just five kilometers south of its 100% owned Lynn Lake Nickel-Copper-Cobalt Mining Centre in Canada, has resulted in the discovery of a large magmatic sulphide system with the potential to host significant nickel-copper sulphide deposits.

On the 2[nd] of June 2017, the Company announced the completion of Phase 3 drilling at the Fraser Lake Complex. Subsequent to this, all holes drilled in this program were downhole tested with electromagnetic (EM) geophysics and all drill samples have been submitted for analysis. Results from Phase 3 drilling are expected to be received in July 2017.

END .

For further information visit www.corazon.com.au or contact:

Brett Smith James Moses Managing Director Media & Investor Relations Corazon Mining Limited Mandate Corporate P: +61 (8) 6142 6366 M: +61 (0) 420 991 574 E: info@corazonmining.com.au E: james@mandatecorporate.com.au

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

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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 2012 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.

The information in this report that relates to the Processing and Metallurgy for the Mount Gilmore project is based on and fairly represents information and supporting documentation compiled by Damian Connelly who is a Member of The Australasian Institute of Mining and Metallurgy and a full time employee of METS Engineering (METS). Damian Connelly has sufficient experience 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Damian Connelly consents to the inclusion in the report of the matters based on his 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.

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 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.

The Company believes that it has a reasonable basis for making the forward looking Statements in the announcement based on the information contained in this and previous ASX announcements.

The Company is not aware of any new information or data that materially affects the information included in this ASX release, and the Company confirms that, to the best of its knowledge, all material assumptions and technical parameters underpinning the exploration results in this release continue to apply and have not materially changed.

Level 1, 329 Hay St, Subiaco, W.A. 6008 | PO Box 8187, Subiaco East, W.A. 6008 | +61 (8) 6142 6366 | info@corazon,com.au | www.corazon.com.au | ASX: CZN

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