EVOLUTION MINING LIMITED — Capital/Financing Update 2008

Dec 8, 2008

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9 December 2008

ASX Code: CAH

CATALPA DRILL RESULTS ALL GOLD

HIGHLIGHTS

• Assay results received for WDD148; and WDD149, the 5th and 6th drill holes from Catalpa’s programme aimed at testing high grade underground targets at Edna May Gold Project

• Visible gold encountered in all drill holes in current programme

• Further substantial intercepts of Edna May Reef at depth

Total number of shares on issue: 345,445,864

Share Price Current: $0.022

12 month range: $0.075 (high) - $0.020 (low)

Catalpa Resources ( ASX:CAH ), Perth-based emerging gold producer, today reported further encouraging assay results from the 5[th] and 6th holes in the current drill programme, aimed at testing high grade arcuate reef structures at its wholly-owned Edna May Gold Project in Western Australia.

Bruce McFadzean, Catalpa Resources Managing Director confirmed visible gold was present in both drill holes, consistent with the previous four holes in the programme.

Assay results for drill holes WDD148 and WDD149 include further significant intercepts of quartz-sulphides and quartz 'stockworks' within the Edna May Gneiss, including Edna May Reef:

Board of Directors

Mr John Rowe: Non Exec Chairman Mr Bruce McFadzean: Managing Director Mr Murray Pollock: Non Exec Director Mr Barry Sullivan: Non Exec Director Mr Chris Melloy: Non Exec Director Mr Nigel Johnson: Non Exec Director Mr Graham Anderson: Company Secretary Mr Leonard Math: Company Secretary

	m	Au g/t	from (m)	to (m)
WDD148	1.12	68.5	402.08	403.20
	1.04	5.8	421.42	422.46
	0.90	7.1	452.90	453.80
	0.52	12.1	489.35	489.87
	0.27	7.0	542.19	542.46
WDD149	12.68	4.8	479.96	492.64
inc	1.24	31.3	479.96	481.20
	0.63	7.4	485.10	485.73
	1.15	5.6	491.49	492.64

Major Shareholders

Lion Selection Group Limited 44.04% Goldrich Holdings 4.05% Zero Nominees 2.57% HSBC Custody Nominees Aus. 2.03% Charlemagne Investments 1.35% Drummond Shay Margaret 1.16% Geddes Angus William 0.88% ANZ Nominees Limited 0.78% Pretorius Leon Eugene 0.58%

WDD148 intercepts comprise quartz-sulphides (pyrite, pyrrhotite) with visible gold in the 402.08m to 403.20m interval. The WDD149 intersection of 1.24m @ 31.3g/t Au consists of quartz-sulphides (pyrite, pyrrhotite) also with visible gold.

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“We are positive that the mounting geological evidence supports both our interpretation of the continuation of the Edna May reef at depth; and our belief that Edna May is prospective for underground mining.

“The potential for underground mining in the future presents further upside for what is already a viable project with attractive margins.

“It is now planned to carry out a detailed geological review of data from these 6 holes and previous drill intercepts to determine the next stage of the programme,” Mr McFadzean said.

Competent Person

The exploration data has been compiled according to the JORC Code for the reporting of Mineral Resources and Ore Reserves by Nick Winnall (Exploration Manager), a full-time employee of Catalpa Resources Limited. Mr. Winnall is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr. Winnall consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

For further enquiries contact:

Bruce McFadzean Warrick Hazeldine / Annette Ellis Managing Director Media and Investor Relations Catalpa Resources Limited Purple Communications Tel (08) 9321 3088 Tel: (08) 9485 1254

ENDS

ABOUT CATALPA RESOURCES

Perth-based Catalpa Resources Limited (ASX: CAH) aims to become Australia’s next mid tier producer by developing its open pit assets, located on its extensive and wholly-owned mining tenements in Western Australia.

Catalpa is on the cusp of a new phase of development towards production at its Edna May (gold) Project, conveniently positioned a few kilometres from the infrastructure of Westonia, an established town with a long mining history. The project is just three hours or 300km by road from Perth; half way between Perth and Kalgoorlie and ideally situated to be serviced by both centres.

Notably, there have been three previous successful mining programs which have occurred both above and below the planned open pit at Edna May, which significantly reduces the risk of Catalpa’s current project.

Catalpa has an experienced and innovative Board and management team that is committed to realising a timely production and cash flow profile from the development of the Edna May open pit resources.

This is the company’s immediate strategy; and an update to the Company’s 2006 Edna May Gold Project Feasibility Study is on schedule to be tabled to the Board in the December quarter 2008. In preparation for planned production at Edna May, the Company relocated its 2.8mtpa Big Bell mill to site in 2007. The mill is being maintained ‘ready for construction’ adjacent to the proposed plant construction site.

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Catalpa is pursuing parallel growth with a renewed exploration programme underway of its 880km² of under-explored Westonia Greenstone Belt, and is reviewing other regional opportunities for acquisition and/or joint venture. In particular, Catalpa seeks to identify and develop new projects and/or acquisitions on its extensive land holding or within the region, which is prospective for gold, nickel and base metals.

Catalpa has a sound Resource base at Edna May with significant upside to grow resources and reserves and move towards production. With a buoyant outlook on the gold price, the Company’s Board believes that Catalpa Resources presents a sound investment opportunity with significant upside potential.

Catalpa Resources has adopted best practice standards across all its operating activities, including its social, health and safety, environmental management and corporate governance functions.

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