EVOLUTION MINING LIMITED — Capital/Financing Update 2010

Dec 6, 2010

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7 December 2010

b 2010
er
	ASX Code:CAH
IPLE OUNCE GOLD HITS CONTINUE AT EDNA
	Shares on issue:
	162,776,842
GHTS	Share Price Current:
	$1.81 (6 December 2010)
ry significant intercepts of 7.09m @ 25.5g/t gold and
63m @ 169g/t gold from high grade reef mineralisation
	12 month range:
ditional high grade zones delineated	$2.27(high) - $1.18(low)
rther intersections of high grade gold mineralisation continue
confirm continuity at the Edna May Gold Project
• 0.63m @ 169.1g/t Au in EMD027	Board of Directors
• 2.10m @ 64.4g/t Au in EMD020 • 4.93m @ 33.3g/t Au in EMD028	Mr Peter Maloney Mr Bruce McFadzean Mr John Rowe	Non Exec Chairman Managing Director Non Exec Director
• 7.07m @ 25.5g/t Au in EMD028	Mr Barry Sullivan	Non Exec Director
• 3.03m @ 12.8g/t Au in EMD027	Mr Graham Freestone	Non Exec Director
• 5.25m @ 5.5g/t Au in EMD020	Mr Murray Pollock:	Non Exec Director
	Mr Graham Anderson	Company Secretary
updated underground Mineral Resource estimate planned	Mr Leonard Math	Company Secretary
r February 2011
ill results support the potential for Mineral Resource and Ore	Senior Management
serve growth	Erik Palmbachs	CFO
	Stuart Pether	COO
derground mining studies are planned with a view to	Nick Winnall	Manager Exploration
tablishing an underground Ore Reserve	Adrian Pelliccia	Manager Bus Dev
	John Winterbottom	Manager Geology
gh grade mineralisation remains open at depth	John Fraser	General Manager –
		Edna May
	Raelene Wyatt	Manager Human
GROUND POTENTIAL AT EDNA MAY GOLD PROJECT		Resources
Resources (ASX:CAH), the fast growing Australian gold producer
eports further high grade assay results from a surface diamond drill
m testing high grade underground targets beneath the open pit at
a May Gold Project in Westonia, WA.
continues to demonstratestrong down-plunge continuity of high-
old mineralisationassociated with the Edna May reef structures,
merous high grade intersections being returned including a very
ant intercept0.63m @ 169.1g/t Aufrom 374.63m in EMD027 and

MULTIPLE OUNCE GOLD HITS CONTINUE AT EDNA MAY

HIGHLIGHTS

• Very significant intercepts of 7.09m @ 25.5g/t gold and 0.63m @ 169g/t gold from high grade reef mineralisation

• Additional high grade zones delineated

• Further intersections of high grade gold mineralisation continue to confirm continuity at the Edna May Gold Project

• An updated underground Mineral Resource estimate planned for February 2011

• Drill results support the potential for Mineral Resource and Ore Reserve growth

• Underground mining studies are planned with a view to establishing an underground Ore Reserve

• High grade mineralisation remains open at depth

UNDERGROUND POTENTIAL AT EDNA MAY GOLD PROJECT

Catalpa Resources (ASX:CAH), the fast growing Australian gold producer today reports further high grade assay results from a surface diamond drill program testing high grade underground targets beneath the open pit at the Edna May Gold Project in Westonia, WA.

Drilling continues to demonstrate strong down-plunge continuity of highgrade gold mineralisation associated with the Edna May reef structures, with numerous high grade intersections being returned including a very significant intercept 0.63m @ 169.1g/t Au from 374.63m in EMD027 and 7.07m @ 25.5g/t Au from 390.06m in EMD028.

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Drilling currently underway has also been highly successful in the identification of a fifth and possible sixth high grade zone located in the hanging wall of the Edna May Gneiss. The fifth high grade zone (Figure 1) was identified by recently reported intersections of 1.12m @ 45.0g/t Au from 250.33m in EMD021 and 2.26m @ 4.1g/t Au from 230.84m in EMD022 together with 2.30m @ 3.6g/t Au from 230m in EMD020. The sixth high grade zone (Figure 1) was identified by a spectacular multiple ounce intersection of 2.10m @ 64.4 g/t Au from 223.70m in EMD020 supported by a recent narrower high grade intersection of 1.10m @ 38.0g/t Au in EMD022. Best intercepts returned from the latest holes (EMD020, EMD027 and EMD028) being illustrated in Figures 1 to 4 and presented in Table 1.

The encouraging results from this drilling program are anticipated to improve Mineral Resource confidence to the Indicated category in a significant portion of the area targeted.

Drill results from this program also demonstrate both the potential to deliver a significant Resource upgrade and Reserve growth with an expected increase in ounces per vertical metre.

The maiden high grade underground Inferred Mineral Resource currently stands at 660,000 tonnes @ 9.1g/t gold for 195,000 ounces. This Mineral Resource is planned to be updated in February 2011 to include the results of the current drilling with an underground prefeasibility set to commence upon completion, advancing toward the goal of high grade underground production. Edna May’s Mineral Resource now extends to 550 metres below surface (previously at 300 metres) with high grade mineralisation remaining open at depth. Total Catalpa Mineral Resources are estimated at 2.2 million ounces of gold.

Catalpa seeks to accelerate and expand on its drilling program in line with its vision to enhance the Edna May Gold Project with concurrent mining of high grade underground ore to considerably increase annual gold production. Growing Gold, Growing Value.

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Figure 1: Section 9655N of the Edna May Underground

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Figure 2: Section 9665N of the Edna May Underground

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Figure 3: Section 9670N of the Edna May Underground

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Figure 4: Underground Oblique Section Showing Target Area

Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts	Significant Drill Intercepts
					Azi Mine Grid
	Mine East	Mine North						Interval Width
Hole_Id			RL	Dip		mFrom	mTo		Au (g/t)
EMD020	11568	9652	1340	-73	090	223.70	225.80	2.10	64.4
EMD020	11568	9652	1340	-73	090	230.00	232.30	2.30	3.6
EMD020	11568	9652	1340	-73	090	236.90	238.05	1.15	13.0
EMD020	11568	9652	1340	-73	090	283.90	285.95	2.05	4.0
EMD020	11568	9652	1340	-73	090	288.25	289.40	1.15	4.0
EMD020	11568	9652	1340	-73	090	296.45	301.70	5.25	5.5
EMD027	11569	9664	1340	-71	095	221.06	222.06	1.00	6.2
EMD027	11569	9664	1340	-71	095	224.20	225.30	1.10	17.8
EMD027	11569	9664	1340	-71	095	247.86	248.96	1.10	17.5
EMD027	11569	9664	1340	-71	095	255.90	256.73	0.83	11.8
EMD027	11569	9664	1340	-71	095	283.92	285.04	1.12	22.1
EMD027	11569	9664	1340	-71	095	298.42	301.45	3.03	12.8
EMD027	11569	9664	1340	-71	095	334.96	336.90	1.94	6.3
EMD027	11569	9664	1340	-71	095	353.16	353.80	0.64	3.6
EMD027	11569	9664	1340	-71	095	365.80	366.80	1.00	3.3
EMD027	11569	9664	1340	-71	095	374.63	375.26	0.63	169.1
EMD027	11569	9664	1340	-71	095	394.78	397.20	2.42	3.6
EMD028	11580	9670	1340	-77	091	230.60	231.65	1.05	9.7
EMD028	11580	9670	1340	-77	091	264.32	265.52	1.20	8.0
EMD028	11580	9670	1340	-77	091	271.03	272.20	1.17	7.5
EMD028	11580	9670	1340	-77	091	290.20	291.30	1.10	8.2
EMD028	11580	9670	1340	-77	091	297.30	302.23	4.93	33.3
EMD028	11580	9670	1340	-77	091	335.15	335.87	0.72	4.4
EMD028	11580	9670	1340	-77	091	362.34	363.43	1.09	17.8
EMD028	11580	9670	1340	-77	091	390.06	397.13	7.07	25.5

Table 1 Tabulation of Significant Additional Intercepts Subsequent to Previous Announcement Note: Sampling conducted between geological features or 1m intervals down hole. All samples assayed using a total digest of a 40g charge by fire assay method.

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For further enquiries contact:

Bruce McFadzean Adrian Pelliccia Managing Director & CEO Manager Business Development Catalpa Resources Limited Catalpa Resources Limited Tel +61 8 9321 3088 Tel +61 8 9321 3088

Competent Person Statement

The reported exploration results have been compiled by Mr John Winterbottom (Manager Geology), who is a Member of the Australian Institute of Geoscientists (AIG) and a full-time employee of Catalpa Resources Limited. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Winterbottom consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

ABOUT CATALPA RESOURCES

Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 100% interest in the 100, 000 ounces per annum Edna May Gold Project in Western Australia and a 30% interest in the 100, 000 ounces per annum Cracow Gold Project in Queensland (70% Newcrest Mining Limited).

Catalpa’s flagship Edna May Project boasts an impressive forward sold position of 325,000 ounces of gold at A$1,557.50 per ounce. At a hedge book/spot weighted average gold price of A$1,460 per ounce Catalpa expects to realise an average cash operating margin of A$72 million per annum from the Edna May Gold Project alone.

With a combined Mineral Resource of more than 2.2 million ounces and a combined Ore Reserve of more than one million ounces of gold, (refer announcement dated 27th May 2010), the Cracow and Edna May Operations will provide a sustainable long life cash flow to fund Catalpa’s growth strategy.

Catalpa is confident that both Cracow and Edna May offer further Reserve and Resource growth potential, with ongoing exploration programmes at both operations. In parallel, the Company continues to proactively identify and assess other production growth opportunities.

The Company has a motivated and technically accomplished management team and a highly-experienced and supportive Board, committed to realising shareholder value from the Company’s growing asset portfolio.

Catalpa strives for best practice standards across all its activities, including health and safety, environmental management, corporate governance and social responsibility.

EDNA MAY OPERATIONS (100%)

Catalpa’s wholly-owned Edna May Gold Project is conveniently positioned just two kilometres from the infrastructure of Westonia, on the eastern edge of WA’s Wheatbelt region. The mine is half way between Perth and Kalgoorlie and ideally situated to be serviced by either of these major mining centres.

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With its robust economics, geologically and metallurgically well defined ore-body, high Ore Reserve confidence and excellent recovery rate of more than 92%, Catalpa’s Edna May Gold Project offers an attractive, long-term platform to grow a mid tier gold producer.

Catalpa’s mine and processing schedule demonstrate average gold production at Edna May in excess of 100,000 ounces per annum for a life of mine of more than nine years, with the first gold poured in April 2010.

CRACOW GOLD OPERATIONS (30%)

Catalpa owns 30% of the Cracow Gold project in Queensland with a pre-emptive right over Newcrest’s 70% stake in the asset. The Cracow Gold Project is well managed and operated by Newcrest, allowing Catalpa to remain focused on the ramp up to full production of Edna May Gold Project.

The Cracow Gold Project has a history of steady gold production of over 100,000 ounces per annum for the past four years and it is considered to have considerable exploration upside.

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