EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Jul 6, 2009

==> picture [556 x 83] intentionally omitted <==

7 July 2009

ASX Code: CAH

CATALPA COMMENCES CONSTRUCTION AT EDNA MAY

HIGHLIGHTS

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

• DEC Works Approval for Edna May Operations

• Plant construction contractor GRES formally appointed and site works and refurbishment is underway

Share Price Current: $0.098 (6 July 2009)

• Accommodation village 75% complete

• Recruitment of key personnel continues

Catalpa Resources (ASX:CAH), Australia’s emerging mid-tier gold producer, today announced that it has secured Works Approval from the Department of Environment and Conservation (DEC) to commence construction at its fullyfunded Edna May Gold Operations near Westonia in Western Australia.

Managing Director, Bruce McFadzean said this is another set of very significant milestones for Catalpa in realising our vision to pour gold in the June quarter of 2010.

“We formalised the appointment of our major site-works contractor, Perthbased GR Engineering Services last week, so we are in a position to immediately commence the site construction works upon receiving the Works Approval notice.”

12 month range: $0.105 (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

“GRES has set up offices, communications and other infrastructure on site over the past week, and work commenced yesterday on the preliminary plant earthworks and refurbishment of the 2.8Mtpa Edna May processing plant stored on-site.”

“We remain very focussed on advancing Edna May to production by mid 2010. Construction of Edna May’s 88-man accommodation village in Westonia is 75% complete, and we are making excellent progress with the appointment of key personnel.”

The Works Approval comes just days after Catalpa announced plans to merge with its largest shareholder, Lion Selection’s gold assets. The merger will bring together Catalpa’s 100% owned and fully-funded Edna May Operations and Lion’s 30% interest in the Newcrest managed 100 000 ozpa Cracow Gold Operations in Queensland, under Catalpa’s existing experienced management team.

The merger will boost Catalpa’s annual production to 130 000+ ozpa once Edna May is in full production and is scheduled to be finalised in October 2009.

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

Major Shareholders

Lion Selection Group Limited 46.75%
HSBC Custody Nominees 6.49%
National Nominees Limited 4.34%
ANZ Nominees Limited 2.76%
Reneagle Pl 1.62%
Goldrich Holdings Pty Ltd 1.37%
Nefco Nominees Pty 0.87%
Springtide Capital 0.85%
Zero Nominees Pty Ltd 0.76%
Prospect Cust Ltd 0.58%

ENDS

==> picture [534 x 65] intentionally omitted <==

==> picture [556 x 83] intentionally omitted <==

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 has a sound and Resource base at Edna May. Since October 2008 Catalpa has increased its Edna May Reserve by more than 50% from 544 000 to 817,000 ounces, extending the life of the Edna May Operations to more than eight years with planned production of more than 100,000 ounces per annum.

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 October 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.

Contacts:

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 [534 x 65] intentionally omitted <==

==> picture [556 x 83] intentionally omitted <==

==> picture [311 x 252] intentionally omitted <==

==> picture [534 x 65] intentionally omitted <==