EVOLUTION MINING LIMITED — Capital/Financing Update 2007

May 30, 2007

WESTONIA MINES LIMITED

MARKET UPDATE

HIGHLIGHTS

• Regional exploration database compilation completed
• New and old regional targets being ranked prior to drilling
• Underground database compilation progressing
• Big Bell plant move completed on time and on budget

Westonia Gold Project

In July 2006, the company released key results of its base case feasibility study. These included unit cash costs of approximately \$555/oz (excluding 4.5% royalties) and a capital cost estimate of \$65M exclusive of financing costs and working capital.

Since that time, the company's management team has been working to improve project economics as configured with the Big Bell plant. The company has however experienced the cost inflationary pressures that are prevalent in the resources sector at this time. On a comparative basis, unit cash costs have increased by some 5-10%.

The Company has recently spent some \$5M dismantling and relocating the Big Bell plant to Westonia. Current outstanding project start-up costs remain at \$65M.

In continuing to seek improvements to the project cost structure to enable the development of the company's substantial gold Resource at Westonia, the company is nevertheless mindful that in making a commitment to develop, it must create a satisfactory return for shareholders. Whilst the company continues to investigate opportunities to add sufficient additional value to the project (via cost reduction, grade increase and exploration success) to improve returns to an adequate level, the immediate key to doing so is an increase in the AUD gold price. The Company's potential gold production is unhedged so it continues to enjoy good leverage to any increase in the AUD gold price above current levels.

Shareholders will receive further updates as they become available.

Big Bell Plant Relocation

In accordance with previous market advice, the dismantling and relocation of the Big Bell plant to Westonia has proceeded well. All equipment and materials to be relocated have left the Big Bell site and have been unloaded at Westonia, with the exception of some electrical components which are being stored under cover in Perth prior to inspection for refurbishment. This contract was completed on time and on budget.

Scrap steel demolition is scheduled to be completed within the coming days, following which concrete structures will be demolished.

Ongoing dialogue is occurring to co-ordinate Westonia's rehabilitation activities with those of the tenement owner. The company is working to resolve any outstanding matters in this regard and have the \$1.5M performance bond released in Westonia's favour.

Westonia's laydown area

Exploration

The company's exploration focus during the past two months has been on consolidation of data for three areas; regional exploration data, the Edna May underground data and the Edna May "near mine" surface data.

Establishment of the surface exploration database incorporating all historical information as well as the recently completed detailed aeromagnetic survey data is complete. The company now has all data in a single electronic database, which provides an effective targeting tool. A significant number of new surface targets are apparent. These new targets together with all previously identified targets are being assessed and prioritized with the intention of commencing drill testing of the highest ranked targets in the coming months.

The Edna May underground database is being further consolidated and assessed to facilitate the preparation of exploration strategies to improve our knowledge of the underground mining potential utilizing all existing information.

With regard to previous exploration announcements, the company advises as follows:

• A ground based IP survey at the Anomaly 47 base metals prospect identified five moderate conductors, one of which corresponds with a geochemical anomaly. These targets will be assessed in the overall ranking context of the wider Westonia Greenstone Belt for upcoming drilling priorities.
• A programme of four RC drill holes was undertaken at Perrins to test the previously reported shallow RAB drill intercepts. The four RC drill holes were drilled beneath the RAB holes to test for deeper mineralization within unweathered bedrock. The deeper drilling did not support the shallow RAB mineralization, indicating that the near-surface gold occurrences at Perrins seen so far are most likely supergene enrichment in nature.
• The nine hole RAB drill programme to test one of the potential Edna May repeat targets has tested part of the strike length of that target. Drilling identified the favourable Edna May gneiss rock type, however gold assays are sub-economic.

31 May, 2007

David Hatch Managing Director Westonia Mines Limited (08) 9321 3088

www.westoniamines.com.au