EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Oct 14, 2009

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15 October 2009

ASX Code: CAH

CONTINUED DRILLING SUCCESS AT EDNA MAY GOLD PROJECT

Total number of shares on issue: 1,171,785,846

HIGHLIGHTS

EDNA MAY

Share Price Current: $0.155 (14 October 2009)

• Resource definition drilling program near completion at the Edna May Gold Project to expand and upgrade the Mineral Resource and Ore Reserve

• Results to date confirm robustness of the geological interpretation and Mineral Resource estimate

• Revised Ore Reserve estimate planned for December

• Gold Mineralisation remains open at depth

GOLDEN POINT

• Strong anomalism and visible gold confirm prospectivity of Golden Point mineralisation

Perth-based gold developer, Catalpa Resources (ASX:CAH), today reported that drilling at its Edna May deposit has returned consistent broad mineralised intersections.

Managing Director, Bruce McFadzean said the results continue to underpin the robustness of the Mineral Resource for open pit mining at the Edna May Gold Project.

“Sixteen RC and diamond drill holes for 4,066 metres have been completed as part of a confirmation drilling program designed to increase confidence in the Mineral Resource at depth with a view to upgrading Inferred Resources within the open pit design to Indicated.”

“The broad drill intercepts are in-line with modelled grades for open pit mining and also demonstrate the occurrence of the high grade reef-hosted gold lodes within the broader stockwork mineralisation. The high grade reefs form the basis of a potential underground mining operation to be developed concurrent with open pit mining.”

“The vertical continuity of gold mineralisation is excellent and remains open at depth.”

12 month range: $0.17 (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 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%

“In addition to the continued resource definition drilling of the Edna May deposit, two holes (EMD011 & EMD013) were extended into the footwall

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volcanics to scope depth extensions of the Golden Point Gneiss.”

“These holes have identified a broadening of the favourable Golden Point Gneiss host lithology at depth and returned anomalous mineralisation, including quartz reef intercepts with visible gold that require further follow up. Significantly, the mineralised intercepts are in close proximity, approximately 30 metres from the Edna May footwall and could present a readily accessible resource by either open pit or via existing underground infrastructure.”

“This is an extremely encouraging result and elevates the Golden Point Gneiss as a priority near mine exploration target.”

“A revised Ore Reserve, including the current drill results and updated gold price assumptions, is planned to be finalised and reported before the end of the year.”

Assays received to date (0.5 g/t cut off) are tabulated below;

	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May	Significant Drill Hole Intersections - Edna May
Hole ID	Local Grid			Dip	Azimuth - Local	Depth From	Depth To	Downhole Interval (m)	Au (g/t)	Ore Surface
	North	East	Rl
EMD001	9573	11474	1340	-60	180	TBA	TBA	TBA	TBA
EMD002	9596	11495	1341	-60	180	TBA	TBA	TBA	TBA
EMD003	9617	11525	1341	-60	180	231.95	273.50	41.55	1.50	Edna May
EMD004	9605	11561	1341	-60	180	210.00	280.10	70.10	1.40	Edna May
EMD005	9606	11600	1340	-60	180	229.14	237.50	8.36	0.74	Edna May
EMD006	9700	11668	1338	-60	180	182.90	236.30	53.40	3.02	Edna May
	Including					235.10	236.30	1.20	76.00	Edna May
EMD007	9633	11750	1337	-60	180	110.50	134.85	24.35	1.08	Edna May
	and					157.70	247.00	89.30	0.87	Edna May
EMD008	9721	11800	1340	-60	180	147.70	170.50	22.80	0.98	Edna May
	and					199.00	243.85	44.85	1.08	Edna May
EMD009	9708	11825	1340	-60	180	143.89	188.13	44.24	0.60	Edna May
	and					218.90	227.68	8.78	1.13	Edna May
EMD010	9707	11850	1339	-60	180	158.45	162.45	4.00	0.93	Edna May
EMD011	9703	11875	1340	-60	180	147.80	169.75	21.95	0.55	Edna May
	and					231.40	233.65	2.25	1.78	Edna May
EMD012	9673	12053	1338	-60	180	116.85	120.50	3.65	1.70	Edna May
	and					169.25	172.25	3.00	1.89	Edna May
EMD013	9698	12075	1344	-60	180	155.75	166.80	11.05	0.72	Edna May
EMD014	9653	12122	1342	-60	180	108.80	126.49	17.69	1.09	Edna May
EMRC001	9440	11375	1360	-60	180	5.00	18.00	13.00	0.95	Edna May
	and					57.00	58.00	1.00	1.39	Edna May
EMRC002	9525	11425	1341	-60	180	45.00	57.00	12.00	2.43	Edna May
	and					68.00	69.00	1.00	26.30	Edna May
	and					92.00	95.00	3.00	1.13	Edna May

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The nature of the Edna May gold deposit is typified by broad low grade gold mineralisation hosting multiple higher grade quartz reef structures. The quartz reefs can demonstrate extremely high gold grades with a large proportion of visible particulate gold that can display significant variance over relatively short distances.

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Figure 1 Drill location plan

GOLDEN POINT

In addition to the continued resource definition of the Edna May deposit, two holes (EMD011 & EMD013) were extended into the footwall volcanics to scope depth extensions of the Golden Point Gneiss, a favourable lithology analogous to the Edna May Gneiss. Interestingly, the Golden Point mineralisation strikes sub-parallel to the Edna May mineralisation with approximately 30 metres separating the two mineralised units. Both holes intersected the prospective tonalitic unit and returned anomalous mineralisation, including quartz reef intercepts with visible gold requiring further follow up.

Significant intercepts through Golden Point are tabled below.

	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point
Hole ID	Local Grid			Dip	Azimuth - Local	Depth From	Depth To	Downhole Interval (m)	Au (g/t)	Ore Surface
	North	East	Rl
EMD011	9703	11875	1340	-60	180	268.80	271.00	2.20	1.70	Golden Point
	and					321.30	326.80	5.50	2.22	Golden Point
EMD013	9698	12075	1344	-60	180	239.25	240.25	1.00	6.83	Golden Point
	and					267.85	275.40	7.55	4.96	Golden Point
	Including					267.85	268.40	0.55	64.00	Golden Point
	and					310.10	312.70	2.60	1.84	Golden Point

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Figure 2 Schematic section depicting depth extensions to Golden Point Mineralisation

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Figure 3 Visible gold identified at Golden Point

Notes

• 1 Assaying conducted by ALS Laboratories, Perth using a 1kg Leachwell digest

• 2 Reference standards, field duplicates and blank samples are routinely inserted and quality control samples are routinely monitored.

• 3 No cutting of grades has been applied.

ENDS

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Competent Person Statement

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 Warrick Hazeldine/Annette Ellis Managing Director Media and Investor Relations Catalpa Resources Limited Purple Communications Tel (08) 9321 3088 Tel: (08) 9485 1254

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 Gold Project to production by July 2010.

As part of the Edna May finance facility, Catalpa has sold forward 352,317 ounces of gold at an exceptional price of A$1,557.50 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 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.

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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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