EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Dec 1, 2009

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2 December 2009

ASX Code: CAHDA*

UPDATED MINERAL RESOURCE AND ORE RESERVE STATEMENT – EDNA MAY GOLD PROJECT

Total number of shares on issue*: 106,532,039

HIGHLIGHTS

• Mineral Resources increased to 1.66 Million ounces of gold (+13%)

• Ore Reserves increased to 954,000 ounces of gold (+16%), 62% Proved

• Gold Mineralisation remains open at depth

• Additions to the Edna May Resource include initial estimates of mineralisation within the Golden Point Gneiss

Catalpa Resources (ASX:CAH), the Perth-based advanced gold developer today announced an updated Mineral Resource and Ore Reserve delivering a further 16% boost to gold Reserves, and a 13% increase in the Mineral Resource at its wholly-owned Edna May Gold Project in Western Australia.

The revised Mineral Resource and Ore Reserve estimate is the result of several significant RC and diamond drilling programs conducted over the last 6 months.

Total Mineral Resources after mining depletion are estimated at 1.66 million ounces of gold which represents an increase of 170,000 ounces of gold (13%) to the previous estimate. The increase was driven by additions to Edna May Deposit including an initial estimate of mineralisation within the Golden Point Gneiss and a reduction in applied cut-off grade to 0.4 g/t Au to reflect the economic cut-off grade at A$1,250 per ounce.

The Mineral Resource has been estimated to a maximum depth of 300 metres below surface which is an equivalent basis to previous Mineral Resource estimates.

Managing Director, Mr Bruce McFadzean said the Mineral Resource excludes mineralisation defined from previous deep (+300 metre) diamond drilling programs.

“A focus for Catalpa in 2010 is to target the deeper mineralisation in an effort to move it towards a JORC compliant Mineral Resource in addition to advancing Golden Point and drill testing regional targets,” Mr McFadzean said.

Total Ore Reserves after mining depletion are estimated at 954,000 ounces of gold which represents an increase to the previous estimate of 134,000 ounces of gold (+16%), driven by conversion of Inferred Resource within the Edna May Depsoit and revised gold pricing assumptions.

“This is great news for Catalpa, and adds more than another year to the Edna May Gold Projects life-of-mine.”

Share Price Current*: $1.70 (1 December 2009)

12 month range*: $1.98 (high) - $0.20 (low)

*Shares trading on a deferred settlement basis following the 11 for 1 share consolidation

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 Nigel Johnson: Non Exec Director Mr Graham Anderson: Company Secretary Mr Leonard Math: Company Secretary

Senior Management

Erik Palmbachs CFO Stuart Pether GM Operations Nick Winnall Manager Exploration Adrian Pelliccia Manager Geology

Major Shareholders

Major Shareholders
Auselect Limited	46.86%
HSBC Custody Nominees	6.65%
National Nominees Limited	3.36%
ANZ Nominees Limited	3.19%
Reneagle Pl	1.62%
Goldrich Holdings Pty Ltd	1.37%
Nefco Nominees Pty	1.14%
Bennett Robert W + D G	0.92%
Springtide Capital	0.85%
Prospect Cust Ltd	0.78%

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“Significantly, some 62% of the Ore Reserve is in the highest confidence (JORC) Proved category.”

“The gold price of A$1,250 used in the Ore Reserve estimate reflects a moderate approach to the current Australian dollar spot price and excludes the further price benefit Catalpa receives from the forward sold position of 352,316 ounces at A$1,557 per ounce,” he said.

The Edna May Gold Project remains within budget and schedule to produce first gold in June 2010.

Mineral Resource Statement - 30 November 2009:

The accompanying statement of 2009 Edna May and Greenfinch Mineral Resources was estimated using Hellman & Schofield MIK block modelling techniques based on a (0.4g/t) Au cut-off grade within a geologically and grade defined mineralisation envelope and in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves (the JORC Code) 2004 edition.

	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut-off
	Measured			Indicated			Total Measured & Indicated			Inferred			Total Measured, Indicated & Inferred
	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
Greenfinch	0.9	1.12	30	2.5	1.00	80	3.4	1.03	110	0.6	1.2	20	4.0	1.02	130
Edna May	21.1	1.05	710	15.8	0.99	500	36.9	1.02	1,210	11.0	0.9	320	47.9	1.00	1,530
TOTAL	22.0	1.05	740	18.3	0.99	580	40.3	1.02	1,320	11.6	0.9	340	51.9	1.00	1,660

Effective Holdings

• Catalpa Resources Limited owns 100% of Edna May Operations Pty Ltd which in turn owns 100% of the Edna May Gold Project.

Footnotes to Mineral Resource

• The Resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction and assuming a smallest mining unit for ore selection.

• Measured and Indicated Resources lie in areas where drilling is available at a maximum of 25 x 25 metre spacing, Inferred Resources exist in areas of broader spaced drilling, generally peripheral to the Measured and Indicated panels.

• All Mineral Resource figures are stated at 30 November, 2009 on a 100% basis, with depletion by production where relevant.

• There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Resources.

• Mineral Resources are inclusive of Ore Reserves. The stated contained Mineral Resource metal ounces are considered in-situ; beneficiation recovery factors have not been applied.

• Due to rounding of figures small discrepancies may exist.

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Ore Reserve Statement - 30 November 2009:

The accompanying statement of Edna May and Greenfinch Ore Reserves as shown below was compiled by Coffey Mining and is in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves (the JORC Code) 2004 edition.

	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut-off
	Proved			Probable			Total Proved & Probable
	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
Greenfinch	0.8	1.14	28	1.7	1.04	58	2.5	1.07	86
Edna May	16.2	1.09	568	8.6	1.08	300	24.8	1.09	868
TOTAL	17.0	1.09	596	10.3	1.07	358	27.3	1.09	954

Catalpa Resources Limited notes the following;

Effective Holdings

• Catalpa Resources Limited owns 100% of Edna May Operations Pty Ltd which in turn owns 100% of the Edna May Gold Project.

Footnotes to Ore Reserve

• Ore Reserves are the economically mineable part of Measured and/or Indicated Resources and include diluting materials and allowances for losses which may occur. Ore Reserves are quoted as a subset of Mineral Resources.

• Metal price assumptions for Ore Reserves are A$1,250 per ounce of gold at a processing rate of 2.83.2Mtpa.

• The economic cut-off grade of Ore Reserves is 0.4g/t gold.

• All Ore Reserve figures are stated at 30 November, 2009, with depletion by production where relevant.

• The Ore Reserve figures are shown on a 100% basis.

• There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Ore Reserves.

• Due to rounding of figures small discrepancies may exist.

ENDS

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Competent Person Statement

The reported Mineral Resource has been compiled by Mr Nicolas Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield 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 Johnson consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

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 consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

The information in this report has been compiled by Mr Adrian Pelliccia (Manager Geology), who is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and a full-time employee of Catalpa Resources Limited. He 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 Pelliccia 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 Managing Director Catalpa Resources Limited Tel (08) 9321 3088

Warrick Hazeldine/Annette Ellis Media and Investor Relations Purple Communications Tel: (08) 6314 6300

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ABOUT CATALPA RESOURCES LIMITED

Perth-based Catalpa Resources Limited (ASX: CAH) is on the cusp of a new phase of development, following the successful raising of more than A$106M in debt and equity to advance its A$92M Edna May (open-pit gold) Operations to production by July 2010.

As part of the Edna May finance facility, Catalpa has sold forward 352,316 ounces of gold at an exceptional price of A$1,557 per ounce.

Catalpa plans to utilise Edna May’s solid annual cash operating margins to fund its growth and become Australia’s next mid tier gold producer.

In keeping with this strategy, Catalpa and its largest shareholder, Lion Selection Limited (ASX:LST), signed a Merger Implementation Agreement in June 2009 to bring together Lion Selection’s 47% shareholding in Catalpa’s 100% owned and operated 100 000 ounces pa Edna May Gold Project in Western Australia and Lion Selection’s 30% stake in the Newcrest managed, 100 000 ounces pa Cracow Gold Project in Queensland, under Catalpa’s experienced management team. As part of the merger, Catalpa will also acquire a pre-emptive right over Newcrest’s 70% stake in Cracow.

Following implementation of the merger, expected in the December quarter 2009, Catalpa will be a cashflow positive gold producer from its 30% stake in Cracow. From mid 2010 when production commences at the Edna May Gold Project Catalpa will produce more than 130 000 ounces pa.

Catalpa has an experienced Board and management team that is committed to realising a timely production and cash flow profile at the Edna May Gold Project. With a buoyant outlook on the gold price, the Board believes that Catalpa presents a sound investment opportunity with significant upside potential.

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

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