EVOLUTION MINING LIMITED — Capital/Financing Update 2011

Feb 14, 2011

==> picture [580 x 72] intentionally omitted <==

==> picture [580 x 72] intentionally omitted <==

==> picture [320 x 27] intentionally omitted <==

ASX Codes

Shares: CAH Options: CAHOB

Shares on issue: 177,954,355 Share Price Current: A$1.57 (14 February 2011) 12 month range: A$2.27 (high) - A$1.18 (low) Market Capitalisation: A$280 million

15 February 2011

HIGH GRADE ZONES EXTENDED AT EDNA MAY

HIGHLIGHTS

• Extensions to new high grade zones beneath the final pit floor at Edna May discovered; Stage 1 infill drilling now complete; accelerated drilling programs commenced

• Latest intersections include 3.7 metres at 9.2 grams per tonne gold including 1.2 metres at 25.4 grams per tonne gold and 0.8 metres at 16.2 grams per tonne gold

Board of Directors

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

Senior Management

Erik Palmbachs

Stuart Pether Nick Winnall Adrian Pelliccia John Winterbottom John Fraser Raelene Wyatt

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

CFO & Company Secretary COO Manager Exploration Manager Bus Dev Manager Geology GM - Edna May Manager HR

• Catalpa on track to deliver an underground Resource upgrade in March 2011, followed by underground mining studies targeting the supply of high grade feed to the Edna May process plant in 2012

• 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

Visible gold in Edna May high grade reef structure EMD019

==> picture [283 x 89] intentionally omitted <==

==> picture [283 x 89] intentionally omitted <==

==> picture [595 x 79] intentionally omitted <==

==> picture [78 x 80] intentionally omitted <==

HIGH GRADE ZONE EXTENDED AT EDNA MAY

Catalpa Resources Limited (ASX:CAH) is pleased to present results from the final two holes of an infill surface diamond drill program (Stage 1) testing selected high grade underground targets below the open pit at the multi-million ounce Edna May Gold Project, Westonia, Western Australia.

Holes EMD025 and EMD026 have successfully extended newly delineated high grade zones in the hanging wall of the Edna May gneiss, beneath the final pit floor (Figures 1 and 2). These structures can now be traced for approximately 75 metres along strike and more than 150 metres down dip and are anticipated to add to the current underground resource inventory. Latest results include 3.7 metres at 9.2 grams per tonne gold including 1.2 metres at 25.4 grams per tonne gold (EMD 026), 0.8 metres at 16.2 grams per tonne gold and 1.18 metres at 6.1 grams per tonne gold (EMD025) .

Outstanding drill results returned from Stage 1 drilling have demonstrated strong continuity of high grade mineralisation with best intersections including 4.93 metres at 33.3 grams per tonne and 7.07 metres at 25.5 grams per tonne gold (EMD028) . Additionally, drilling has defined areas within the gold reef structures where mineralisation is broader than previously interpreted with the return of 12.20 metres at 7.5 grams per tonne gold (EMD029) . Significantly, high grade mineralisation remains open at depth and along strike with strong potential for future resource and reserve growth.

Best drill results returned from Stage 1 drilling are presented in Table 1 and significant results from EMD025 and EMD026 are presented in Table 2. Stage 2 drilling (7 holes for 2,655 metres) targeting strategic north-east trending lateral extensions to mineralisation below the current underground resource has commenced (Figure 3).

Figure 1: Section 9615N of the Edna May Underground Opportunity

==> picture [450 x 159] intentionally omitted <==

==> picture [450 x 160] intentionally omitted <==

2 | P a g e

==> picture [78 x 80] intentionally omitted <==

Figure 2: 3-D Model Showing Newly Delineated High Grade Zone in Hanging Wall of Edna May Gneiss beneath Final Pit Outline

==> picture [472 x 278] intentionally omitted <==

Underground Potential - Mineral Resource Update

Results from the Stage 1 drilling program will be included in an update of the Underground Inferred Mineral Resource of 660,000 tonnes @ 9.1g/t for 195,000 ounces of gold planned for March quarter 2011. Results are anticipated to upgrade the Mineral Resource confidence to the Indicated category in a significant portion of the area targeted and resource growth is anticipated from the delineation of mineralisation in the newly delineated high grade zones.

This will be followed by the development of a maiden underground Ore Reserve and life-of-mine plan in alignment with Catalpa’s 5 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 early 2012.

3 | P a g e

==> picture [78 x 80] intentionally omitted <==

==> picture [513 x 239] intentionally omitted <==

----- Start of picture text -----

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
Stage 3 Edna May Infill Drilling
Edna May Deeps Drilling
Greenfinch Drilling
Mineral Resource Update
UG Mining Study
Ore Reserve Estimate
Borefield Establishment
Decline Rehabilitation
UG Infill Drilling
Trial Mining and UG Dev
Ramp up UG Ore Production
Full Scale Production
----- End of picture text -----

Drilling Strategy 2011

Edna May

Accelerated infill and resource expansion drilling at Edna May will continue throughout 2011 and will include 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 (Figure 3);

• Stage 3 drilling - targeting an upgrade to the Inferred category material within the underground resource down to 500 metres below surface (Figure 4). 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 (Figure 5). 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.

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.

4 | P a g e

==> picture [79 x 79] intentionally omitted <==

Figure 3: Planned 2011 Stage 2 Edna May Diamond Drilling

==> picture [472 x 293] intentionally omitted <==

----- Start of picture text -----

Final Pit Outline
Pegmatite
Stage 2 Drill
Target Zone
High Grade Reef System
----- End of picture text -----

Figure 4: Planned 2011 Stage 3 Edna May Diamond Drilling

==> picture [482 x 298] intentionally omitted <==

----- Start of picture text -----

Historic stoping
High Grade Reef System
Stage 3 Drill Target Zone
----- End of picture text -----

5 | P a g e

==> picture [79 x 79] intentionally omitted <==

Figure 5: Planned 2011 Edna May Deeps Diamond Drilling

==> picture [482 x 299] intentionally omitted <==

----- Start of picture text -----

High Grade Reef System
Edna May Deeps Target Zone
----- End of picture text -----

Table 1: Tabulation of Best Intercepts from Current Underground Drill Program

			Best	Drill Intercepts To Date
Hole	Mine East	Mine North	RL	Dip	Azi Mine Grid	From (m)	To (m)	Interval Width	Au (g/t)
EMD015	11600	9683	1340	-70	096	345.04	351.00	5.96	5.3
EMD016A	11600	9683	1340	-79	096	210.70	212.90	2.20	26.7
EMD017	11569	9664	1340	-65	094	286.35	288.08	1.73	33.7
EMD018	11562	9655	1340	-65	094	358.45	360.15	1.70	23.8
EMD019	11570	9634	1340	-65	094	343.40	344.05	0.65	55.5
EMD019	11570	9634	1340	-65	094	356.30	357.00	0.70	36.4
EMD020	11559	9667	1340	-73	090	223.70	225.80	2.10	64.4
EMD020	11559	9667	1340	-73	090	296.45	301.70	5.25	5.5
EMD021	11599	9685	1340	-78	093	250.33	251.45	1.12	45.0
EMD021	11599	9685	1340	-78	093	292.25	294.23	1.98	23.7
EMD021	11599	9685	1340	-78	093	329.56	333.43	3.87	17.2
EMD022	11572	9654	1340	-70	091	201.75	202.85	1.10	38.0

6 | P a g e

==> picture [79 x 79] intentionally omitted <==

			Best	Drill Intercepts To Date
Hole	Mine East	Mine North	RL	Dip	Azi Mine Grid	From (m)	To (m)	Interval Width	Au (g/t)
EMD023	11570.4	9637	1340	-67	096	277.28	279.8	2.52	9.4
EMD023	11570.4	9637	1340	-67	096	325.70	326.75	1.05	24.3
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	374.63	375.26	0.63	169.1
EMD028	11580	9670	1340	-77	091	297.30	302.23	4.93	33.3
EMD028	11580	9670	1340	-77	091	390.06	397.13	7.07	25.5
EMD029	11581	9675	1340	-68	093	333.20	338.90	5.70	4.1
EMD029	11581	9675	1340	-68	093	344.50	356.70	12.20	7.5

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. Full details of tabulated intercepts above are available in previous ASX releases.

Table 2: Tabulation of Significant Intercepts Subsequent to Previous Announcement

			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)
EMD025	11569	9614	1340	-76	095	188.20	189.30	1.10	4.2
EMD025	11569	9614	1340	-76	095	208.80	209.60	0.80	16.2
EMD025	11569	9614	1340	-76	095	224.13	225.30	1.17	4.2
EMD025	11569	9614	1340	-76	095	228.75	229.70	0.95	3.1
EMD025	11569	9614	1340	-76	095	232.67	233.85	1.18	6.1
EMD025	11569	9614	1340	-76	095	282.17	283.37	1.20	5.7
EMD025	11569	9614	1340	-76	095	288.40	289.60	1.20	4.9
EMD025	11569	9614	1340	-76	095	313.85	314.85	1.00	3.3
EMD025	11569	9614	1340	-76	095	335.40	337.88	2.48	4.6
EMD026	11569	9614	1340	-72	073	225.65	229.36	3.71	9.2
including	11569	9614	1340	-72	073	228.16	229.36	1.20	25.4
EMD026	11569	9614	1340	-72	073	234.17	236.60	2.43	3.6
EMD026	11569	9614	1340	-72	073	296.35	297.45	1.10	7.0
EMD026	11569	9614	1340	-72	073	311.60	312.60	1.00	3.7

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.

7 | P a g e

==> picture [79 x 79] intentionally omitted <==

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 an impressive forward sold position of 318,000 ounces of gold at A$1,557.50 per ounce.

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 preemptive right over Newcrest’s 70% stake in the asset.

With a combined Mineral Resource of 2.2 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.

==> picture [195 x 189] intentionally omitted <==

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

8 | P a g e