EVOLUTION MINING LIMITED — Capital/Financing Update 2008

Oct 26, 2008

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27 October 2008

CATALPA GROWS GOLD RESERVES BY 85,000 0ZS OR 16%

Catalpa Resources ( ASX:CAH ), Perth-based emerging gold producer, today reported a step increase in its gold Reserves from 544,000 ounces to 629,000 ounces at its wholly-owned Edna May Gold Project in Western Australia.

Bruce McFadzean, Catalpa Resources Managing Director confirmed that the additional ounces have a significant impact on the Edna May Gold Project Feasibility Study. The Reserves have been based on a Gold price in Australian Dollars of A$1,025 per ounce at a processing rate of 2.8Mtpa. A$1,025 is significantly below the current Australian Dollar gold price.

“This is the first of a number of Reserve upgrades that will be reported over the December quarter and applies to the Edna May deposit alone. We will report the Greenfinch Reserves when they are finalised and additional upgrades to the Edna May Reserve as they are completed,” Mr McFadzean said.

“The low grade nature of the open pit Reserve is complemented by the orebody geometry and low strip ratio combined with a large process plant capacity of 2.8Mtpa that is planned to be increased to 3.2Mtpa from year 3 onward. Our mine schedule demonstrates annual gold production of more than 100,000 ounces recovered.”

The reserves have been compiled by Coffey Mining as part of their key role in providing the bulk of the work in the Feasibility Study for Catalpa Resources Limited.

		Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate
Cut		Proven			Probable		Total Proven & Probable
Off Grade	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
0.50	11.2	1.18	425	5.2	1.22	204	16.4	1.19	629

“We are delighted to report the additional 85,000 ounces. The additional ounces at recent gold prices are a significant boost to the project revenue. 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 few weeks. These gold price levels underpin the opportunity we have to develop the Edna May Gold Project,” Mr McFadzean said.

ENDS

ASX Code: CAH

Total number of shares on issue: Update

345,402,503

Share Price Current: Update $0.030

12 month range: $0.075 (high) - $0.030 (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%

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Competent Person Statement

The reported reserves have been compiled by Mr John Hearne 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. 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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