EVOLUTION MINING LIMITED — Capital/Financing Update 2008

Nov 24, 2008

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25 November 2008

ASX Code: CAH

CATALPA FINDS 17% MORE GOLD AT EDNA MAY – BOOSTS RESERVES TO 738 000 OUNCES

Catalpa Resources ( ASX:CAH ), Perth-based emerging gold producer, today reported a step increase in its gold Reserves by 109,000 ounces from 629,000 ounces to 738,000 ounces at its wholly-owned Edna May Gold Project in Western Australia.

Bruce McFadzean, Catalpa Resources Managing Director noted that the Edna May Reserves have increased by 194,000 ounces or 36% over the past four weeks through two increases resulting from the finalisation the Feasibility Study pit designs and schedules.

The Reserves have been based on a gold price in Australian Dollars of A$1,025 per ounce at a processing rate of 2.8-3.2Mtpa. A$1,025 is significantly below the current Australian Dollar gold price which is over $1,250 per ounce at the time of writing.

“A further increase in project Reserves from the Greenfinch deposit is anticipated in December 2008 pending assay results from three recently completed diamond drill holes,” Mr McFadzean said.

“The low grade nature of the open pit Reserve is complemented by the broad orebody geometry and consequent low strip ratio; combined with a large process plant capacity of 2.8Mtpa that is planned to be increased to 3.2Mtpa from year three onward. Our mine schedule demonstrates annual gold production around 100,000 ounces recovered,” Mr McFadzean said.

The reserves have been compiled by Coffey Mining as part of their key role in providing the bulk of the mine engineering and design in the Edna May Gold Project Feasibility Study for Catalpa Resources Limited.

		**Edna May **	**Edna May **	Ore Reserve Estimate	Ore Reserve Estimate	Ore Reserve Estimate	Ore Reserve Estimate	Ore Reserve Estimate	Ore Reserve Estimate
C Off		Proved			Probable		Total Proved & Probable
ut Grade	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
0.50	12.3	1.19	471	6.8	1.23	267	19.1	1.20	738

Mr McFadzean also commented that the Reserve comprises 64% Proved Reserve category which further demonstrates the quantum of drilling and confidence in the Edna May deposit.

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

Share Price Current: $0.021

12 month range: $0.075 (high) - $0.021 (low)

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

Major Shareholders

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%

“This high percentage of Proved Reserve category is not typical of many gold deposits today,” Mr McFadzean said.

“The additional ounces provide a significant further boost to project revenues and mine life. In the context of recent market uncertainty, gold prices have remained buoyant in Australian Dollar (A$) terms, and have remained above or around A$1,100 per ounce over the past couple of months. These gold price levels underpin the opportunity we have to develop the Edna May Gold Project,” Mr McFadzean said.

ENDS

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Competent Person Statement

The reported Ore Reserves have been compiled by Mr Harry Warries. Mr Warries is a Member of the Australian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Warries gives Catalpa Resources Limited consent to use this estimate in reports.

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.

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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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

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