EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Apr 21, 2009

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22 April 2009

CATALPA ANNOUNCES AN UNDERWRITTEN SHARE PURCHASE PLAN

Highlights

ASX Code: CAH

• Shares being offered at A$0.06 per share

• Underwritten to A$4.0 million by Austock Corporate Finance

• Lion Selection, Catalpa’s major shareholder committing $2.0m

Capital Structure

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

• Edna May Project capital fully funded

• Catalpa rapidly progressing recommencement of production at Edna May by June quarter 2010

Share Price (as at 21 April 2009): $0.075

Catalpa Resources Limited (ASX:CAH) has today announced a Share Purchase Plan (SPP) for eligible shareholders. The intention to offer an SPP was previously set out on 31 March 2009 when the Company announced a successful A$31.4 million Placement to institutional and sophisticated investors at A$0.06 per share.

The Company recognises the strong support from all its shareholders and is pleased to advise that those shareholders who are recorded on the Company’s share register as at 5pm (Perth time) 21 April 2008 with a registered address in either Australia or New Zealand will be eligible to participate in the SPP.

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

Under the SPP, each eligible shareholder will be entitled to apply for up to A$5,000 of fully paid ordinary Catalpa shares at A$0.06 per share (being the same price at which shares were offered under the Placement).

The maximum amount to be raised under the SPP is to be limited to A$10 million of which A$4m has been underwritten by Austock Corporate Finance Pty Ltd. This includes $2m of sub-underwriting from Catalpa‘s major shareholder, Lion Selection Limited, as set out in the Notice of Meeting sent to shareholders on 3 April 2009. If applications from shareholders under the SPP exceed the maximum amount, Catalpa reserves the right to scale back applications on a pro rata basis.

Net funds from the Placement and SPP will be applied to the development of Catalpa’s Edna May Gold Project and associated costs.

Details of the SPP, including full terms and conditions will be contained in documentation to be sent to shareholders shortly. It is expected that the SPP will close at 5pm (WST time) on Friday, 8 May 2009, but the Company will reserve the right to extend the closing date.

Erik Palmbachs CFO Stuart Pether GM Operations Nick Winnall Exploration Manager

Major Shareholders

Lion Selection Group Limited 44.39% HSBC Custody Nominees 2.91% Goldrich Holdings Pty Ltd 2.69% National Nominees Limited 2.31% Zero Nominees Pty Ltd 1.49% Austock Nominees Pty Ltd 1.47% ANZ Nominees Limited 1.41% Mrs Shay Margaret Drummond 1.01% Parkrange Nominees Pty Ltd 0.84% Charlemagne Investments 0.74%

Catalpa’s Managing Director, Mr Bruce McFadzean said “we encourage existing shareholders to take this opportunity to acquire additional shares as the Company rapidly moves towards recommencement of production of the Edna May Project planned for 2Q 2010.”

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In addition, the ASX has agreed that shares issued under the Company’s share purchase plan will be excluded from the operation of listing rule 7.1 which if the resolutions relating to listing rule 7 are passed at the EGM will preserve the Company’s 15% new issue capacity.

Furthermore the Company has obtained a waiver from ASX in relation to the issue of the second tranche of options to Macquarie Bank Ltd (MBL). This relates to the establishment of the Mezzanine facility to be provided by MBL to enable the Company to issue the options to MBL more than 90 days after shareholders approve their issue (assuming they do so) at the EGM on 8 May 2009. This will give the Company greater flexibility in the context of the timing of making a drawdown under the mezzanine facility.

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

ABOUT CATALPA RESOURCES

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 recently 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%, making this project an attractive long term opportunity to grow a mid tier gold producer.

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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, 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.

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