EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Nov 18, 2009

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19 November 2009

CATALPA’S EDNA MAY OPERATIONS - 7 MONTHS FROM FIRST GOLD

Highlights

ASX Code: CAH

Total number of shares on issue: 1,171,852,429

Share Price Current:

$0.155 (18 November 2009)

• Equipment hire and maintenance contract finalised and 24-hour Mining underway

• Recruitment on schedule – successful local employment

12 month range: $0.18 (high) - $0.019 (low)

• Site construction on schedule and within budget:

• Procurement of major plant items complete

• All key fabrication packages awarded

• Refurbishment progress on track, with delivery of newly fabricated steel and platework to site underway

• Concrete and tank installation work on schedule for completion in November

Catalpa Resources Limited (ASX: CAH), the Perth-based advanced gold developer, today reported on construction progress at its Edna May Gold Project at Westonia, WA, confirming the project is within budget, and on schedule to pour first gold in seven months time (June 2010).

A number of significant project milestones have been reached in recent weeks as the Project progresses rapidly through the construction phase towards commissioning.

The finalisation of an equipment hire and maintenance contract with Force Equipment Hire and Service on 22 October 2009 is a major milestone, enabling the commencement of 24 hour mining operations.

The mining works to date have focused on the establishment of road access to the tailing storage facilities, mill ROM pad access ramp and the removal of a waste stockpile surrounding the pit area.

The second recruitment phase remains on schedule, with advertising and assessment against key roles progressing well. To-date, some 40% of Edna May Operations’ permanent workforce has been recruited from local communities in the immediate vicinity of the mine, in keeping with Catalpa’s commitment to sustainable community involvement.

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 Exploration Manager Adrian Pelliccia Geology Manager

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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Site Construction Progress

Site construction activities continue apace, with zero lost-time-injuries reported since construction commenced. This is a positive achievement and in line with Catalpa’s and Project Contractors efforts in providing a safe working environment for all personnel working at Edna May.

Civil work continues to progress, with concrete for the goldroom elution and pipe racks completed. Some 80% of concrete had been poured as at the end of October (1 775m[3] out of a design total of 2 238m[3] ), with completion of all civil work on schedule for completion before the end of November.

Construction of the crusher pocket reinforced earth wall has commenced, and is planned to be completed by the end of November 2009.

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Construction of crusher pocket reinforced earth wall nears completion

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Tank construction continues with all eight tanks erected to full height. In addition, most top ring beams and baffles have been installed and some intertank launders have arrived on site. Launder installation and weld out of the structures is progressing with the tank construction on schedule to be concluded by the end of November.

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2 x leach and 6 x absorption tanks now at full height in the background with SAG mill plinth, lube system and structural steel in the foreground.

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Erection of structural steelwork around the mill foundations to support cyclone, screens and conveyor feed to the SAG mill is well advanced.

Structural erection has been completed in the gold room, and commenced in the screen and elution buildings. The gold room MCC was transported and jacked into position, and electrical work has since commenced in this area.

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Gold room MCC and structural steelwork

Services Installation

Installation of underground services has commenced with cabling and pipework installed from the mill MCC to the primary crusher areas and services installed to the workshop, stores and admin building areas. Pipework has also been installed in the water services area.

Installation of cable trays has commenced under both the mill and goldroom MCC’s, while lighting and light power have been installed to both the store and the workshop buildings and lighting has been installed to the mill MCC building.

Internal lining and fit-out of the mill control room and MCC building has been finalised.

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Refurbishment

Offsite refurbishment of equipment is progressing well, with the completion and delivery to site of mill lube systems, lime screw feeder, heat exchangers, conveyor pulleys and dart plug actuators. At the same time, sorting, repair and painting of structural steel continued with most of the recovered Big Bell steel having been refurbished.

Refurbishment of conveyors is ongoing, with significant progress made in the refurbishment and modification of conveyor trusses and support systems.

The refurbishment of electrical equipment is also progressing as planned, with work underway on PLC marshalling panels, HV switchgear and crusher and goldroom MCC’s.

The return to site of equipment refurbished offsite has commenced enabling installations in November.

Project Schedule

Project implementation is some 70% complete and the Edna May Gold Project remains within budget, and on schedule to produce first gold in June 2010.

ENDS

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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ABOUT CATALPA RESOURCES

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 preemptive 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 Resources presents a sound investment opportunity with significant upside potential.

Catalpa Resources 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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