EVOLUTION MINING LIMITED — Board/Management Information 2005

Mar 30, 2005

WESTONIA MINES LIMITED

NEW MD TO LEAD NEW INITIATIVE

SUMMARY

• The Board of Directors has decided that at present the Westonia Project does not meet the Company's current investment criteria, but that further investment is warranted in order to realise full value from the resource and surpass the required economic development threshold.
• Appointment of new Managing Director David Hatch.
• Fund raising arrangements are well advanced. There is strong support from the major shareholder Lion Selection Group.
• Investment to be directed towards pit dewatering, grade control and resource infill drilling with the intention of significantly upgrading the overall robustness of the Westonia Project.
• Selective, targeted exploration will be undertaken to further test already identified anomalies on the substantial tenement position.

Westonia Mines Limited 48N 974 984 669 936
9 Havelock Street West Perth, MA 6000, Telephone: +61 8 9321 9988 Facsimile +61 8 9321 8804
Email marage:@westonianines.com.eri Web site www.westonianines.com.art BANK COOPERATION

MANAGEMENT CHANGE

As a reflection of the evolution of the Company and its wholly owned Westonia gold project, a change in senior management has been effected as of today.

Company founder, Mr Andrew Drummond has resigned from the position of Managing Director and will step down from the Board of Directors. He will consult to the Company on an as required basis. The Board wishes to acknowledge the significant contribution made by Mr Drummond to the progress of the project. His vision and determination have been greatly appreciated. Mr Drummond and family members remain as major shareholders

Effective immediately, Mr David Hatch is appointed as Managing Director. Mr Hatch is a Mining Engineer with almost 30 years of relevant experience. His more recent appointments were: General Manager Operations at Ok Tedi, PNG: General Manager Operations with Ranger Minerals Ltd, Perth, WA: General Manager Mt Muro, Kalimantan: and Resident Manager of the Darlot Gold Mine near Leinster, WA where Mr Hatch lead the successful transition from open pit to underground mining.

NEW INITIATIVE

In mid 2004 Westonia Mines Limited announced that it had completed a Bankable Feasibility Study ('BFS') at its wholly owned Westonia gold project. Subsequent to that, the tender prices received from mining and construction contractors increased significantly from the indicative tenders on which the BFS was based. In combination with the continuing strong Australian dollar and rising fuel prices, project economics were downgraded.

The Company has spent the last few months trying to minimise the impact of these factors by critically examining every aspect of the project, for example, assessing different development routes, mill configurations and resource and reserve grade reestimations. This work has just recently been completed and the Board has now reluctantly determined that proceeding with the project in its current form would not provide a satisfactory return to shareholders and that a new initiative is required.

A factor which has adversely impacted upon the BFS economics is a 'data shadow' caused by the inability to drill immediately under the flooded open pit. This has resulted in an inability to convert some resources to bankable reserves and, in the Company's opinion, a substantial shortfall in contained ounces of gold within any pit design. At Westonia, there is a broad correlation between drillhole density and estimated resource ounces. Consequently, it is believed that the poor drill density beneath the pit floor is compromising the ability of the mineral resource model to adequately predict ore tonnes and grade.

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From a bankable feasibility viewpoint this has resulted in an artificially low project worth. as it has:

• Increased stripping ratios and hence mining unit costs per tonne of ore. $\bullet$
• Resulted in a shallower pit design with fewer contained ounces. $\bullet$
• Increased capital and operating costs per ounce.
• Reduced the size of the contango per ounce for any hedging programme required to satisfy banker's lending criteria.

Accordingly, the Board has decided to commit to a programme aimed at substantially upgrading the open pittable resource, which it believes will significantly improve the robustness of the Westonia project economics. Largely as a subset of mine development, the Company will undertake the following activities:

• Pit access and haul road remediation. $\bullet$
• Refurbishment of existing evaporation ponds and the construction of another pond $\bullet$ if required.
• Access to power supply and services where required. $\bullet$
• Accelerated mine dewatering. $\bullet$
• Intensive RC grade control drill programme along dewatered pit floor.
• Subject to the outcome of the RC grade control programme, carry out the necessary resource infill drilling in the expectation of adding contained ounces and improving the levels of resource confidence.

Drilling programmes from the pit floor are aimed at achieving:

• Validation by intensive RC grade control of the degree of mineralisation currently modelled beneath the pit floor between 70 and 110 metres depth.
• Utilising the intensive grade control data if appropriate to calibrate the overall mineral resource.
• Infill drilling to address significant gaps in the drill dataset, between 110 and 200 metres depth, especially in proximity to the more highly mineralised footwall contact to add newly defined ounces.
• Conversion of JORC-compliant inferred resources to indicated status.
• A better understanding of the overall grade-tonnage distribution and whether in the shorter term higher mining cut-off grades are achievable to ensure early debt repayment.

The above programme, inclusive of re-assessment of project economics and the Bankable Feasibility Study, is expected to be concluded during the March 2006 quarter. In the meantime, the Company owns and is intending to retain the 2.2 mtpa Big Bell mill and has project permitting in place. In the event that a significant improvement occurred in the Australian dollar gold price, the Company would seek to expedite project financing, construction and commissioning prior to completion of the planned programme.

FINANCING

The dewatering and drilling programme as proposed is estimated to cost approximately \$5.0M. As a subset of mine development, the funds will be expended in a manner such that whenever possible, duplication at the time of mine construction does not occur.

Funding is being arranged and there is strong support from the major shareholder Lion Selection Group.

Details and supporting documentation will be sent to shareholders in the near future.

EXPLORATION

In parallel with dewatering the Westonia Mine, the Company intends to increase the level of exploration activity. Near-mine prospects which have the potential to add to open pittable mining reserves will be re-evaluated and where appropriate additional drilling will be undertaken.

The Company also intends to continue regional exploration at several anomalies already identified on the substantial tenement position.

For further information:

David Hatch Managing Director

(08) 9321 3088

31^st March 2005

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