EVOLUTION MINING LIMITED — AGM Information 2002

Nov 18, 2002

WESTONIA MINES LIMITED

FACSIMILE
	(Please advise by return facsimile if any part of this transmission failed or was misdirected.) No. of Pages (Incl. cover page)
To	÷	Company Announcements Office Australian Stock Exchange Limited
Attention : Facsimile No:		Manager, Companies
		1300 300 021 AUSTRALIAN STOCK EXCHANGE
From	÷	John Hannaford
Date	÷	19 November 2002	WEZ000025
Subject	÷	AGM PRESENTATION

Dear Sir,

Please find attached a copy of the presentation to be made by the Managing Director at today's AGM of Westonia Mines Limited, for immediate release to the market.

A colour version is available on the Company's website at www.westoniamines.com.au.

Yours sincerely,

$\mathcal{C}_{\mathcal{C}}$

JOHN A. HANNAFORD Company Secretary

Annual General Meeting, 2002

Background

• The Company was formed to resume mining at the historic gold centre of Westonia, midway between Perth and Kalgoorlie in Western Australia

• S \$5.0M was raised in an IPO and the Company commenced trading on the ASX on August 20, 2002

• Lycopodium has completed Stage One of a Bankable Feasibility Study. Stage Two due first quarter 2003

• $\triangleright$ Project economics are robust

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	A. Original Owners	B. Lion Selection Group ("Lion")	C. Public		20 cent options October 2006,

• Listed 20 August 2002

• $\triangleright$ Fully underwritten by D.J. Carmichael & Co

• Lion sub-underwrote and subscribed \$2.35M

• Market capitalisation, 30 October, \$18.3M

• 30 October cash, approximately \$4.7M

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• Past production of 634 000 $_{02S}$
• $1911 1922$ : underground
• $1935 1947$ : underground
• $\cdot$ 1986 1991 : open cut on mainly oxide material
• $1988 1990$ : decline & underground

development

• $\triangleright$ Westonia Mines to target open pit primary ore
• $\triangleright$ Westonia Mines will look to eventual return to underground mining

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Geography

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• Headed by Lycopodium

• $\triangleright$ Resources and reserves, pit planning RSG Global

• Civil engineering, tailings etc. Knight Piesold

• $\triangleright$ CIL is the preferred processing route
• $\triangleright$ Robust project economics

To be completed first quarter 2003

• $\triangleright$ 1.5 mtpa CIL treatment route
• At \$320 USD/oz, \$575 AUD/oz $\lambda$
• ▶ Not optimized

Less than \$30m AUD $\pm$ \$350 AUD/02 Operating Cost Capital Cost

• $\triangleright$ To be completed first quarter 2003
• $\triangleright$ Aims to tighten economics estimates

• Now actively pursuing used mill purchase

• Looking at ways to make the economics even better

▶ CAPEX

• More second hand equipment and facilities
• Contract crushing

OPEX $\Delta$

• Pit and strip design optimization
• Likely increase in oxide resources
• Mill additions for soft oxide ore $\overline{1}$
• Project Life
• Resource increase
• Additional drill targets

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• Exploration upside $\mathbf I$
• Underground mining potential $\mathbf{I}$

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Over 70,000 ozs / year planned production

Current in situ resources / reserves

(0.7 g/t cut-off)
17.4Mt @ 1.7 g/t for 923,000 ozs 8.5Mt @ 1.8 g/t mined for a contained 500,000 ozs $(0.7 g/t cut-off)$ $\blacktriangleright\ \textrm{CL}\ \textrm{pit}$ $\triangleright$ Global

Objectives

• Bankable feasibility first quarter 2003

• ▶ Regulatory approvals, first half 2003
• Project financing discussions have begun
• $\triangleright$ Construction in 2003
• ▶ Over 70,000 ozs per annum production rate

Strengths

• $\triangleright$ Lion major shareholder (41%)

• Granted mining leases

• $\triangleright$ Well established infrastructure
• $\triangleright$ Experienced Board and Management

• Highly leveraged to gold price

• Underground potential

• Robust project economics