EVOLUTION MINING LIMITED — Capital/Financing Update 2009

May 12, 2009

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13 May 2009

COMPLETION OF SHARE PURCHASE PLAN AND EQUITY PLACEMENT

Highlights

ASX Code: CAH

• Share Purchase Plan (SPP) has closed to raise A$7.5m

• Successfully settled Tranche 2 of equity placement with A$27m received

• Edna May Project now fully funded and moving rapidly into production in Q2 2010

Capital Structure

Total number of shares on issue: 595,824,281

Catalpa Resources (ASX:CAH) is pleased to announce that its Share Purchase Plan (SPP) has been strongly supported with a total of A$7.5m raised from participating shareholders and the underwriter, Austock Corporate Finance.

In addition, the Company today announced that it has successfully settled its A$31.4m equity placement. A total of A$27m was received in Tranche 2 in addition to the A$4.4m received under Tranche 1.

With a total amount raised under the placement and SPP of A$39m the Edna May Gold Project is now fully funded and the Company is progressing rapidly towards first gold pour in the second quarter of 2010.

Bruce McFadzean, Catalpa Resources’ Managing Director commented, “We are extremely pleased with the outcome of the SPP and the equity placement as a whole. We have raised a total of A$39m from an extremely supportive shareholder base and from new investors introduced during the placement. Catalpa is now focussed on moving the Edna May Gold Project forward and unlocking value for our shareholders. Through a strong forward book we have been able to secure an extraordinary cash flow from Edna May. This will enable Catalpa to grow through exploration and via acquisition of other producing or near production assets.”

Shares issued under the placement and SPP are at a price of A$0.06 per share. SPP shares will be allotted on Friday, 15 May 2009 and transaction confirmation statements are expected to be mailed to participating shareholders on Monday, 18 May 2009. Catalpa shares issued under the SPP will commence trading on the ASX on Wednesday, 20 May 2009.

Share Price (as at 12 May 2009): $0.080

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

Substantial Shareholders

Lion Selection Group Limited 49.3%

ENDS

Level 1, 9 Havelock Street, West Perth WA 6005 PO Box 1300 West Perth WA 6872

Telephone: (08) 9321 3088 Email: manager@catalparesources.com.au ASX: CAH Facsimile: (08) 9321 8804 Web: www.catalparesources.com.au ABN: 74 084 669 036

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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

Perth-based Catalpa Resources Limited (ASX: CAH) aims to become Australia’s next mid tier producer by developing its open pit assets located on its extensive and wholly-owned mining tenements in Western Australia.

Catalpa has finalised project funding to commence capital construction of the process plant and other infrastructure at the Edna May Gold Project in the current quarter of 2009. Catalpa plans to pour the first gold from Edna May in the June quarter 2010.

The Edna May Gold Project is conveniently positioned a few kilometres from the infrastructure of Westonia, an established town with a long mining history. The Project is just three hours or 300km by road from Perth; half way between Perth and Kalgoorlie and ideally situated to be serviced by both centres.

The Project has sound economics at a gold price of AUD$1,400 per ounce, which will realise an average annual operating cash margin in excess of $AU75 million. Catalpa’s mine and processing schedule demonstrate average gold production in excess of 100,000 ounces recovered per annum for a life of mine of more than seven years.

In preparation for planned production at Edna May, the Company relocated its 2.8 Mtpa Big Bell mill to site in 2007. The process plant has a twelve month construction and commissioning period scheduled to commence In the June quarter 2009

With its early cash flow profile, Catalpa aims to grow and develop the Company into Australia’s next mid tier gold producer.

Significantly, 64% of the Edna May Ore Reserve and 33% of Greenfinch Ore Reserve are already in the highest confidence ‘Proved’ JORC category. Catalpa has demonstrated a sound Mineral Resource base with significant growth potential which, in conjunction with uncomplicated metallurgy and consistent mill feed, provide recoveries greater than 91%.

Catalpa has amassed a management team with considerable technical, project and operational expertise and has the support of an experienced and innovative Board that is committed to using the continuing strength of the gold price to realise value for Catalpa’s shareholders.

Catalpa is pursuing parallel growth with a wide-ranging exploration programme underway on its 880km² of under-explored Westonia Greenstone Belt, and is also reviewing regional and other opportunities.

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

With a buoyant outlook for the Australian gold price, and an impressive gold forward sold position, the Board believes that Catalpa Resources presents a solid investment opportunity with attractive margins to provide a solid long life platform for growth.

Level 1, 9 Havelock Street, West Perth WA 6005 PO Box 1300 West Perth WA 6872

Telephone: (08) 9321 3088 Email: manager@catalparesources.com.au ASX: CAH Facsimile: (08) 9321 8804 Web: www.catalparesources.com.au ABN: 74 084 669 036

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Level 1, 9 Havelock Street, West Perth WA 6005 PO Box 1300 West Perth WA 6872

Telephone: (08) 9321 3088 Email: manager@catalparesources.com.au ASX: CAH Facsimile: (08) 9321 8804 Web: www.catalparesources.com.au ABN: 74 084 669 036