EVOLUTION MINING LIMITED — Capital/Financing Update 2011

Mar 15, 2011

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ASX Codes

Shares: CAH Options: CAHOB

Shares on issue: 177,954,355 Share Price Current: A$1.46 (15 March 2011) 12 month range: A$2.27 (high) - A$1.18 (low) Market Capitalisation:

16 March 2011

EDNA MAY DRILLING UPDATE

HIGHLIGHTS

• First hole of new infill/extensional drilling program at Edna May intersects two zones of reef development down dip of historical workings beneath existing open pit operation; in line with expectations

A$260 million

• High‐grade intersections include;

Board of Directors

Non-exec Chairman MD and CEO Non-exec Director Non-exec Director Non-exec Director Non-exec Director

Mr Peter Maloney Mr Bruce McFadzean Mr John Rowe Mr Barry Sullivan Mr Graham Freestone Mr Murray Pollock

Senior Management

Erik Palmbachs CFO & Company Secretary Stuart Pether COO Nick Winnall Manager Exploration Adrian Pelliccia Manager Bus Dev John Winterbottom Manager Geology John Fraser GM - Edna May Raelene Wyatt Manager HR

• 8.4m @ 19.2g/t gold including 1.3m @ 102.5g/t gold from 272.1m downhole in EMD031

• Underground mining studies underway targeting the supply of high grade feed to the Edna May process plant in 2012; results of Stage 1 infill drilling continues to be progressed with a Mineral Resource update scheduled for early June quarter

• Accelerated drill programs scheduled throughout 2011 targeting priority areas for underground Resource upgrade, and Resource expansion of the multi‐million ounce Edna May gold system laterally and at depth

• Encouraging intersections continue to underpin expectations that mine life at Edna May may be extended beyond nine years and that gold production may be substantially increased

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EDNA MAY DRILLING UPDATE

Catalpa Resources Limited (ASX:CAH), the emerging mid‐tier Australian gold producer, announces drill results from the first of seven holes in a new 2,655 metre diamond drilling program (Stage 2) testing the significant potential of the multi‐million ounce Edna May Gold Project, Westonia, Western Australia.

This drilling is targeting lateral extensions to high‐grade gold mineralisation beneath the existing Edna May open pit operation to upgrade the existing Underground Mineral Resource of 660,000 tonnes at 9.1 grams per tonne gold for 195,000 ounces. Drilling is being undertaken in line with Catalpa’s growth strategy to enhance the Edna May Gold Project with concurrent mining of high‐grade underground ore to considerably increase annual gold production and extend mine life at Edna May beyond nine years.

Hole EMD031 successfully intersected two main zones of reef development down dip of historical underground workings within the Edna May Gneiss. Best intersections include 8.4 metres at 19.2 grams per tonne gold including 1.3 metres at 102.5 grams per tonne gold from 272.1 metres and 1.15 metres at 9.0 grams per tonne gold from 250.50 metres (Figure 2). An intersection of 0.7 metres at 7.2 grams per tonne gold was also returned from 389.30 metres within the pegmatite, possibly representing remobilised mineralisation.

Fully funded diamond drilling programs will continue throughout 2011 targeting priority areas for the underground Resource upgrade and Resource expansion of the multi‐million ounce Edna May Gold system along strike and at depth. This will include 36 holes for approximately 24,000 metres. Drilling targets also include testing the under‐explored Golden Point and Greenfinch mineralisation corridors along strike and at depth.

Figure 1: Stage 2 Drilling Target Zone Beneath Edna May Open Pit Operation

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STAGE 1
STAGE 2
Target Zone
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Figure 2: Edna May Oblique Section Showing Reef Intersections in Diamond Hole EMD031

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Table 1: Tabulation of Significant Intercepts Subsequent to Previous Announcement

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
Hole	Mine East	Mine North	RL	Dip	Azi Mine Grid	From (m)	To (m)	Interval Width	Au (g/t)
EMD031	11729	9709	1339	‐79	127	250.50	251.65	1.15	9.0
						272.10	280.48	8.38	19.2
				including		279.18	280.48	1.30	102.5
						389.30	390.00	0.70	7.2

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. No top cuts have been applied.

Edna May Underground Potential

Mining studies have commenced in alignment with Catalpa’s five‐year growth strategy to increase Edna May production by concurrent mining of high grade underground ore with existing open pit operations. Subject to positive underground mining study results, it is envisaged that high grade mill feed will be delivered to the Edna May plant in 2012.

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Edna May Underground Potential ‐ Indicative Timetable
2010 2011 2012 2013
Sept Qtr Dec Qtr Mar Qtr Jun Qtr Sept Qtr Dec Qtr Mar Qtr Jun Qtr Sept Qtr Dec Qtr Mar Qtr
UG Evaluation
Maiden UG Resource
Stage 1 Edna May Infill Drilling
Stage 2 Edna May Infill Drilling In Progress
Stage 3 Edna May Infill Drilling In Progress
Edna May Deeps Drilling
Greenfinch Drilling
In Progress
Mineral Resource Update
UG Mining Study In Progress
Ore Reserve Estimate
Borefield Establishment
Decline Rehabilitation
UG Infill Drilling
Trial Mining and UG Dev
Ramp up UG Ore Production
Full Scale Production
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Resource Definition and Expansion Drilling Strategy 2011

Edna May

Infill and resource expansion drilling at Edna May will continue throughout 2011 and will include a further 36 holes for approximately 24,000 metres. A second diamond drill rig has been engaged and will commence June quarter 2011. There are three aspects to the proposed program:

• Stage 2 drilling ‐ targeting north‐east trending lateral extensions below the current underground resource. The program consists of 7 holes for 2,655 metres drilled through the Edna May Gneiss, hosting the known mineralised high grade zones, and through into the Golden Point, as yet relatively untested at this depth;

• Stage 3 drilling ‐ targeting an upgrade to the Inferred category material within the underground resource down to 500 metres below surface. This program consists of 20 holes for 12,000 metres; and

• Deeps drilling – testing for extensions to high grade mineralisation beneath the underground resource to 700 metres below surface. The Deeps program consists of approximately 7 holes for 4,800 metres. A single deep exploratory hole to 1,150 metres depth will also be drilled at the conclusion of the Deeps program to test the mineralisation presence below the Deeps drilling area.

Results from Stage 1 infill drilling, completed in February 2011, will be included in an update to the underground Mineral Resource scheduled for release early June quarter, 2011.

Greenfinch

A drilling program at Greenfinch, west of Edna May pit, is planned for late 2011. The program will consist of 28 Reverse Circulation holes for 5,800 metres, predominantly testing westerly extensions to mineralisation from the Greenfinch planned open pit design. A further 9 diamond holes for 3,800 metres will test mineralisation at depth below the pit design.

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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.

The reported Edna May Underground Mineral Resource has been compiled by Mr Daniel Guibal. Mr Guibal is a Member of the Australian Institute of Geoscientists and an employee of SRK Consulting Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Guibal 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 Limited

Catalpa Resources Limited (ASX: CAH) is a fast growing mid tier gold producer with 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 Gold Project boasts a nine year mine life with a forward sold position of 318,000 ounces of gold at A$1,557.50 per ounce. The Company recently confirmed an impressive high grade underground Resource of 660,00 ounces at 9.1g/t gold for 195,000 ounces. Mining studies are in progress with a view to establishing an underground operation concurrent with existing open pit operations in 2012.

The Cracow Gold Project has a history of steady underground gold production of over 100,000 ounces per annum for the past five years and it is considered to have considerable exploration upside. Catalpa has a pre‐ emptive right over Newcrest’s 70% stake in the asset.

With a combined Mineral Resource of more than 2 million ounces and a combined Ore Reserve of more than one million ounces of gold, the Cracow and Edna May Operations provide a sustainable long life cash flow to fund Catalpa’s growth strategy and provide shareholder returns.

Catalpa is confident that both Edna May and Cracow offer further Reserve and Resource growth potential, with ongoing exploration programs at both operations. In parallel, the Company strives 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 asset portfolio.

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

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For further enquiries contact:

Bruce McFadzean Managing Director & CEO Catalpa Resources Limited Tel +61 8 6216 9700

Adrian Pelliccia Manager Business Development Catalpa Resources Limited Tel +61 8 6216 9700

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