EVOLUTION MINING LIMITED — Capital/Financing Update 2008

Oct 2, 2008

==> picture [587 x 88] intentionally omitted <==

3 October 2008

ASX Code: CAH

Company Announcements Platform Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir

Total number of shares on issue: 345,377,313

Share Price Current: (3 October 2008) $0.065

FULLY UNDERWRITTEN RENOUNCEABLE RIGHTS ISSUE

Catalpa Resources Limited (“Catalpa” or the “Company”) is pleased to announce a renounceable rights issue (“Rights Issue”) to raise approximately $3.5 million before costs. The Rights Issue offers one new share and one free attaching option for every four shares held at an application price of 4 cents per share. The free attaching options have an exercise price of 10 cents each and expire on 31 October 2011. The Company will apply for the quotation of new shares and new options on the ASX.

The Rights Issue is fully underwritten by Patersons Securities Limited and Catalpa has incorporated a top up facility whereby eligible shareholders may apply for additional shares and options in excess of their entitlement at the issue price. Additional shares and options will only be available to the extent that other eligible shareholders do not take up their entitlements.

The funds raised will be used to continue the Company’s drilling programmes, provide for costs associated with further study, engineering and grid power as well as general working capital. These activities are outlined in the Prospectus.

The Prospectus relating to this Rights Issue is expected to be lodged with ASIC and ASX on Friday, 3 October 2008 and will be available after lodgement on the ASX website www.asx.com.au and also on the Company’s website www.catalparesources.com.au.

Should you have any questions in relation to the above matters, please contact the undersigned on telephone (08) 9321 3088.

For and on behalf of CATALPA RESOURCES LIMITED

12 month range: $0.075 (high) - $0.038 (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%

==> picture [71 x 34] intentionally omitted <==

Bruce McFadzean

==> picture [568 x 69] intentionally omitted <==

==> picture [587 x 88] intentionally omitted <==

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 3 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 finalised in the September 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.

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

==> picture [568 x 69] intentionally omitted <==