EVOLUTION MINING LIMITED — Capital/Financing Update 2009

Mar 30, 2009

ASX RELEASE

31 MARCH 2009

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$15M CATALPA INVESTMENT ― REBRANDING LION GOLD FOCUS

• Mining Investment Company – Strong Gold Focus

• Near‐term attributable share of production 80,000 ozs

• ― Attributable Resources 0.9Moz

• Strong cash generation

• No Change to Lion’s Investment Philosophy

• Timing and cycle (Lion’s clock)

• Early stage strategic investor

• Retain selective opportunities beyond investment cycle

• Dividend Policy – annual payment from Cracow cashflow

Gold Strategy

• 80% gold 20% other minerals

• Multiple gold mine exposure

• Targeting over 200,000oz pa equity share

• Avoid technical risk at Lion level

• Minimal or zero debt and hedging on Lion’s balance sheet

• Timing

• Lion anticipates a “gold bubble” in the next 2 to 5 years of resource cycle recovery

• The plan is to build a production base, initially targeting 200,000oz equity production, which can be realised for cash at the height of the emerging gold boom

Gold Growth Outlook

• Cracow

• $6M annual exploration program

• Pre‐emptive right (70%)

• Catalpa

• Underground mine potential

• Greenfinch

• Re‐designed pit at higher A$ gold price

• Acquisition

• $18M cash, $15M pa Cracow cashflow, saleable investments ~$20M and debt if required

• Targeting low political risk, high quality gold project(s)

Lion has committed $15M to Catalpa’s $31.4M equity raising to fund the development of the Edna May gold project at Westonia in Western Australia and has expressed a further $2M support for Catalpa’s Share Purchase Plan. Following the $15M investment (subject to Catalpa shareholder approval), Lion’s capital structure and asset mix will be:

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82M shares
Lion Selection 95 cps
Cash $18M $78M mkt cap
$152M assets
Gold
Investments
Indophil $7M
Other $16M 30% Cracow Gold Mine $57M
African/Asian Lion $9M 50% Catalpa $45M
TOTAL INVESTMENTS $32M TOTAL GOLD $102M
~20% ~80%
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Lion Selection Limited ABN 53 123 217 112 Level 4, 15 Queen Street, Melbourne Vic 3000 T: +61 3 9614 8008 F: +61 3 9614 8009 www.lionselection.com.au

Further enquiries: Jane Rose Investor Relations Manager E: jrose@lsg.com.au

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Dividend Policy

• Plan to pay an annual dividend from Cracow Gold Mine cashflow utilising available franking credits.

• Anticipate minimum 2¢ payable January/February.

New Gold Investments

• Lion will seek new gold investments as non‐operating joint venture stakes similar to Cracow, company investments similar to Catalpa or project royalties.

Manager’s Fees

• A reduction in the Lion Manager’s fees was foreshadowed at the buyback in December 2008. Finalisation of this is expected by the end of April 2009.

Gold Equity Share

Lion’s equity share of gold investments – 30% joint venture interest in the Cracow gold mine and 50% shareholding in Catalpa Resources – is shown in the following table:

Lion Equity Share of Gold Investments

Asset	Indicative Annual Production Cash Cost 000’s x A$/oz	Resource Moz Reserve3 Moz	Forward Sales Moz x A$/oz	Indicative Pre‐ Tax Cash Flow A$1,350/oz $M
30% Cracow Gold Mine JV	301 5601	0.212 0.173	Nil	20
50% Catalpa Resources Ltd	504 6364	0.735 0.374	0.18 x 1554	366

• 1 Indicative Cracow production and cost profile.

2

Total Cracow Mineral Resources at June 2008 reported in combined form and based on details reported in the 2008 Annual Report to Shareholders. 3

Lion’s estimate of LOM production based on Mineral Resource conversion, with dilution and mine recovery factors applied. 4 Catalpa’s January 2009 Feasibility Study. Startup mid 2010.

5

Edna May and Greenfinch Mineral Resources reported in combined form and based on details reported previously.

6 Prior to debt service.

ASX Release 31 March 2009

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