EVOLUTION MINING LIMITED — Capital/Financing Update 2003

Sep 18, 2003

19 September 2003

WESTONIA OPEN PIT ORE RESOURCE UPDATE

Since the Company listed on the ASX it has commissioned drilling programs and ongoing independent estimates of resources and mining reserves so as to complete its independent bankable feasibility study ("BFS") on the re-initiation of open cut gold mining at its wholly owned Westonia gold project. This release serves to keep shareholders informed of progress.

WEZ has predominantly commissioned RSG Global Pty Ltd ("RSG") to undertake the independent resource estimates. RSG recommended two drill programs consisting of RC holes to about 200m depth, with diamond drilled tails where necessary so as to increase confidence in the resource estimates. However, the previous operator's open cut workings are flooded and inaccessible until WEZ dewaters the pit and recovers the haul road. Consequently some key zones cannot be drill tested until mining operations have re-commenced.

RSG and others have applied various geostatistical methods to produce a number of ore resource estimates, the results of which are presented as follows:

1. In Situ Resources to 300m Depth

The following parameters apply to the resource estimates:

• Gold price AUD 575/oz; $\blacksquare$
• Resources quoted @ 0.7 g/t cut-off;
• 2.5mtpa processing rate used;
• Ounces are in situ, and a subsequent recovery rate of 93% is anticipated; $\bullet$
• Dumps are excluded as ore resources;
• Underground ore resource potential is not included.
• (a) As was presented in the 2002 Prospectus, RSG estimated:
• 17.2Mt @ 1.7 g/t for 919,000 oz

The Uniform Conditioning ("UC") geostatistical method was used and Indicated and Inferred resources were considered.

Draft estimates were made during the year between drilling programs and $(b)$ they indicated that the resource base was likely to be less than that originally estimated, and this was stated to the market via announcements on 7 May 2003 and in the June 2003 Quarterly Report.

RSG attributes the change from its earlier estimate to the following factors:

• revised geological and ore zone constraints;
• stronger cutting of high grades;
• relatively greater spatial restrictions on the higher grade drill intersections, and
• applying a larger dilution factor.

An updated RSG estimate of Indicated and Inferred resources, and which includes the results of the most recent drilling, is:

Indicated: 13.4Mt @ 1.5g/t for 630,000oz

Inferred: 3.9Mt W 1.3g/t for 160,000oz

Total: 17.2 Mt @ 1.4g/t for 790,000oz

A second independent consulting group, Hellman and Schofield ("HS") was commissioned to run a check estimate. Using the same new database, it estimated the following for Indicated and Inferred categories:

Total: 20.3Mt @ 1.4g/t for 910,000oz

HS prefers to use the alternative Multiple Indicator Kriging ("MIK") geostatistical technique.

Work is ongoing to determine the most appropriate resource estimation technique for this orebody

$2.$ In-Pit Estimates

Preliminary optimised in-pit resource estimates are being prepared by RSG for a 2.5Mtpa grade-controlled mining operation. Until the most appropriate geostatistical technique is determined, the Company is unable to provide a final in-pit resource (reserve) estimate for that operation.

With the advice to the Company that mined grades are likely to be less than had previously been indicated, it has begun a study on the economics of a long-life operation based on bulk mining treatment of the ore host. The Company has also initiated modeling studies on the potential for early parallel underground production.

The Company will delay completion of its BFS until the relative economics of the various alternatives are determined

$\overline{\mathbf{3}}$ . Other Gold Sources

In-house estimates of the gold resources in various oxide dumps associated with the previous open cut operation average a further 40 - 50,000oz.

Independent estimates of underground resources have been recently commissioned, but the results will not form part of the BFS.

Å

Andrew Drummond Managing Director

Enquiries should be directed to the Managing Director and readers are encouraged to register on the Company's website (www.westoniamines.com.au) for automatic receipt of information.

Competent Person Declaration

The information on mineralization in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves). It is compiled by A.J. Drummond, an employee of the Company who is a Fellow of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting.