Ann: Response to ASX Query , page-6

bigone
Nice of you to bring out a list of negatives for JAG.

The big positive is the first drill hole missed the target (as announced by JAG on 20 January - I think Corona advised its readers much earlier than 20 January) but JAG was "pleased to announce the discovery of a significant copper discovery". Not a bad statement for a hole that "missed the main magnetic anomaly".

In the same report JAG advised "Corona have completed hole SDDOO2 ..." and "A further hole SDD003 was drilled .."

In JAG's last quarterly the company said that SDD0002 and 3 "have been directed at the centre of the magnetic anomaly" and that "Assays from these two holes are pending"

With all of this good reporting to the ASX on Queenstown all JAG can say in response to a please explain is a chat site is sturring up interest. What a sorry response. Did JAG forget the content of its previous reports? The last was on 31 January and the previous on 20 January 2012. Dosn't Jag know that Corona has its own website on which it posts on Queenstown. If it does it doen't seem to read its JV's presentations. Too interested in commentsa on chat sites maybe?

I like JAG because at this time its the only way to cash in on what Corona is doing regarding exploration near Queenstown. That may change once Corona is listed in Canada and JAG ends up with only 20% of the project - but who knows?

Corona appears to be a good well managed company. Below is the Chairman's address in Corona's 2011 Annual Report. Its a good read.

CHAIRMAN’S ADDRESS
I have great pleasure in inviting you to Corona Gold Limited’s Annual General Meeting to be held
on 30 December 2011.
As outlined in last year’s report, Corona has concentrated its efforts in NW Tasmania over areas
centred in the vicinity of the famous Mt Lyell copper/gold mine, near the historic mining town of
Queenstown. Mt Lyell is still in production and operated by the large Indian company Vedanta. Mt
Lyell has operated for over 100 years and processed over 310,000,000 tonnes of ore grading 1%
copper and 0.3g/t gold. Significant silver was also mined in the early days.
Corona is farming into EL’s 12/2009 and 51/2008 owned by Jaguar Minerals Ltd, and at the time of
writing has expended sufficient monies to have earned 51% equity. Corona is now proceeding to
continue sole funding with the right to earn 80% by expending a further $300,000 and conducting a
drill program. The farm in area covers 203 sq km, and 137 known historical mostly Cu/Au workings
are recorded within the boundaries. To date Corona staff have visited several of these and
completed detailed literature research dating back prior to 1900 on those sites visited. It has
become apparent that some previous exploration has been for specific size targets or geological
models, possibly mistaking locations from historical reports or misinterpreting geological evidence.
The discovery in more recent times of the Garfield prospect demonstrates that there is potential for
significant deposits to still be discovered in this rugged and isolated terrain. There are at least 4
targets that are “ready to drill”, and Corona has already started to drill at one of these, the Prince
Darwin prospect (see also last para below).
There is no doubt, as demonstrated by the scarcity of real exploration that has been conducted
close to the world class Mt Lyell deposit, that the harsh environment has turned previous explorers
away from this area. Within our area of interest and less than 1km from the Mt Lyell mine,
numerous old copper and gold workings exist, yet only 15 drill holes appear to have been drilled in
the region despite evidence of large alteration halos.
As well as the Jaguar JV, Corona has made application for two EL’s in its own right, and these
were granted during the year:
- The Linda Valley EL 21/2010 has already produced exciting results, with lead and zinc assays
up to 14.5% combined being recorded from channel samples, and 25.9% combined and 154
g/t Ag from selected rock outcrops. Corona has interpreted the geology of this area differently
to historical explorers and Mineral Resources Tasmania (government), and the VTEM survey
completed by Corona during the year over this area has shown that this interpretation has
merit.
- At Granite Tor, an EL covering 166 sq kms has been granted. Previous exploration had
indicated that significant tin and tungsten anomalies exist, but no drilling has ever taken place
in spite if this. The resurgence in tin prices has made this area a very worthwhile project, as
not only Tasmania in general, but this region in NW Tasmania in particular,hosts world class
tin mines and deposits such as Renison Bell and Mt Bischoff.
I am delighted to have the main management team from the Herald Resources Ltd successful 30
year exploration and mining history (pre $500m takeover in 2008/09) working together again. Up
to the time of the takeover, Herald had found and developed six mines over that period, including
the partially developed Dairi project which triggered the takeover.
1
CORONA GOLD LIMITED AND CONTROLLED ENTITY
I believe the projects we have acquired and our continued ongoing search for new ones in
Tasmania offer old and new shareholders a great opportunity to be part of the next success story
of this team. We are also introducing younger members to our team so that a logical transition from
the current management to new will exist as we hand over the reins during the next five to ten
years.
The Company is proceeding towards an Initial Public Offering and a listing on The Toronto Venture
Stock exchange (TSXV). This is planned for 2012 subject to market conditions and all Canadian
approvals being received.
In order to ensure that Corona meets the Jaguar joint venture requirement to earn its 80% interest
which requires 1000m of drilling, the Company has started drilling at the Prince Darwin Adit
location. At the time of writing the hole has progressed past 300m, with native copper and copper
sulphides being sighted over substantial distances. While no detailed logging has been completed
or assays made, it is fair to say however that the hole has met Directors’ very best expectations for
a first hole on a new project.
T M Allen
Chairman
PICTURE
Quee