EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Sep 9, 2009

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10 September 2009

EDNA MAY GOLD PROJECT ON SCHEDULE, WITHIN BUDGET: CONSTRUCTION UPDATE

ASX Code: CAH

Total number of shares on issue: 1,171,777,896

Share Price Current: $0.14 (8 September 2009)

Highlights

• Accommodation village and dining catering facility commissioned and fully occupied

12 month range: $0.14 (high) - $0.021 (low)

• Process plant civil earthworks nearing completion

• Over 600m[3] of concrete poured

• Leach/absorption tank construction commenced

• Refurbishment of plant mechanical components underway

• Reconditioning of major plant continuing

Perth based gold developer, Catalpa Resources Limited (ASX:CAH) today provided a market update on construction progress at its flagship Edna May Gold Project, at Westonia in WA. The fully‐funded $92 million project remains within budget, and is on schedule to commence first gold production in mid 2010.

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

Accommodation Village

Catalpa commissioned an 88‐room village including kitchen and dining facilities in the town of Westonia in early August. The village is designed to serve as the permanent accommodation for normal operations post commissioning of the mine.

The village is almost fully occupied at present. Additional accommodation units to allow for peaks in construction will be added to the village over the coming months and removed following commissioning of the process plant. The village management and catering contract was awarded to Cater Care Services in July 2009.

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

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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Catalpa’s Edna May Operations village is situated in a picturesque setting on the edge of the Westonia town site. Above: The village dining room with the accommodation units in the background.

GR Engineering Services (GRES), the major contractor appointed to refurbish the Edna May Operations gold plant, is well advanced into the construction phase.

Process plant civil earthworks are also almost complete. The majority of the plant site earthworks including crusher dump pocket, crushed ore stockpile, grinding, leach and absorption, and gold recovery area are now complete and construction has commenced on the raw and process water dams.

The process plant concrete civil works are also well underway with the completion of the leach/absorption tank ring beams, workshop pad, MCC footings and other smaller concrete works. The rafts for both the SAG and ball mills are both well into construction as seen in the foreground of the photograph below. The initial concrete pour for the 3.7 mW ball mill raft was 186 m[3] with further above ground ball mill civil works being poured as illustrated in the photograph below.

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Above: Formwork construction and concrete being poured on the ball mill raft.

Leach and absorption tank fabrication has also commenced at the plant site. The concrete ring beams for the foundation of the tanks were poured mid August and can be seen in the background of the photo above. The tank fabrication contractor was mobilised to site at the beginning of August to construct 2 x 2000 m[3] leach tanks and 6 x 1,200 m[3] absorption tanks.

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Above: Tank fabrication underway in an area adjacent to the construction site.

The refurbishment of motors, pumps, steel and other mechanical equipment is underway. The process plant construction remains on schedule and within budget. Currently, planning is underway to commence pre‐ stripping of the existing Edna May open‐pit in November.

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 $106 million in debt and equity to advance its A$92 million 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+ oz pa Edna May Operations in Western Australia and Lion Selection’s 30% stake in the Newcrest managed, 100 000 oz pa Cracow Gold Operations 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 Operations Catalpa will produce more than 130 000 oz 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 Operations. 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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