EVOLUTION MINING LIMITED — Capital/Financing Update 2011

Jan 24, 2011

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25 January 2011

ASX Code: CAH

EDNA MAY DIAMOND DRILLING UPDATE

HIGHLIGHTS

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• Underground potential continues to firm at Edna May as further drill results support strong continuity of high-grade mineralisation and extensions to new high-grade zones

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• Further high-grade intersections include 2.52m @ 9.4g/t gold, 1.05m @ 24.3g/t gold and 2.40m @ 5.35g/t gold

Shares on issue: 162,832,907 Share Price Current: A$1.76 ( 24 January 2011) 12 month range: A$2.27 (high) - A$1.18(low) Market Capitalisation: A$286 million

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• Updated underground Mineral Resource estimate planned for February/March 2011 followed by underground mining studies

Board of Directors

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• High-grade mineralisation remains open at depth, down dip and along strike

• Accelerated drill programs planned for 2011 to test the multimillion ounce Edna May gold system

Mr Peter Maloney Non Exec Chairman Mr Bruce McFadzean MD and CEO Mr John Rowe Non Exec Director Mr Barry Sullivan Non Exec Director Mr Graham Freestone Non Exec Director Mr Murray Pollock Non Exec Director

FURTHER HIGH-GRADE INTERCEPTS AT EDNA MAY

Catalpa Resources Limited (ASX:CAH) , the fast growing Australian gold producer is pleased to present further high-grade assays from a surface diamond drill program testing high-grade underground targets at the Edna May Gold Project in Westonia, W.A. (Figures 1 to 3).

Further high-grade intersections returned from holes EMD023, EMD024 and EMD030 include 2.52m @ 9.4g/t gold, 1.05m @ 24.3g/t and 2.40m @ 5.35g/t gold. These results are significant as they support strong downplunge continuity of high-grade gold mineralisation beneath the open pit operation. Hole EMD023 also defined along strike and up-dip extensions to the recently identified high-grade zones in the hanging wall of the Edna May Gneiss (ASX announcement 7 and 21 Dec 2010).

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

The current 10,000 metre drill program has been successful in identifying broad zones of high-grade mineralisation within the 1.87 million ounce Mineral Resource . Best intersections previously reported are presented in Tables 1 and 2 and include 7.07m @ 25.5g/t gold, 12.20m @ 7.5g/t gold and 4.93m @ 33.3g/t gold .

Results demonstrate the strong potential of the Edna May gold system at depth and the ability to deliver an increase in ounces per vertical metre.

“ Exploration Success, Underground Potential Firms ”

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The significant potential of this multi-million ounce gold belt is planned to be further tested by an accelerated drill program in the March 2011 quarter.

Drilling will focus on depth and strike extensions of the high grade reef systems. Initial resource expansion target areas for 2011 include the under-explored Golden Point and Greenfinch mineralisation corridors where previous drilling has been constrained to the top 120 metres (Figure 2).

Results from the current drill program will be included in an update of the Underground Inferred Mineral Resource of 195,000 ounces planned for February/March 2011. Results are anticipated to improve Mineral Resource confidence to the Indicated category in a significant portion of the area targeted. This will be followed by the development of a maiden underground Ore Reserve and life-of-mine plan in alignment with Catalpa’s vision to enhance the Edna May Gold Project with concurrent mining of high grade underground ore with existing open pit operations to considerably increase annual gold production.

	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Edna May Underground Potential -	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable	Indicative Timetable
	2010									2011											2013 2012
UG Evaluation Maiden UG Resource Infill Drilling Mineral Resource Update UG Mining Study	Sept Qtr			Dec Qtr			Mar Qtr			Jun Qtr			Sept Qtr			Dec Q		tr	Mar Q		tr	Jun Qtr			Sept Qtr			Dec Qtr			Mar Qtr
Ore Reserve Estimate Borefield Establishment Decline Rehabilitation UG Infill Drilling Trial Mining and UG Dev Ramp up UG Ore Production Full Scale Production

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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“Exploration Success, Underground Potential Firms”

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

Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date	Best Drill Intercepts To Date
					Azi Mine Grid
	Mine East	Mine North				From (m)	To (m)	Interval Width	Au (g/t)
Hole			RL	Dip
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
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.

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“Exploration Success, Underground Potential Firms”

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Table 2: 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
					Azi Mine Grid
	Mine East	Mine North				From (m)	To (m)	Interval Width	Au (g/t)
Hole			RL	Dip
EMD023	11570	9637	1340	-67	096	178.5	179.6	1.10	5.0
EMD023	11570	9637	1340	-67	096	187.2	190.2	3.00	3.3
EMD023	11570	9637	1340	-67	096	225.1	226.3	1.20	7.5
EMD023	11570	9637	1340	-67	096	244.68	245.7	1.02	3.3
EMD023	11570	9637	1340	-67	096	277.28	279.8	2.52	9.4
EMD023	11570	9637	1340	-67	096	317.15	319	1.85	4.3
EMD023	11570	9637	1340	-67	096	325.7	326.75	1.05	24.3
EMD023	11570	9637	1340	-67	096	331.75	332.4	0.65	5.0
EMD024	11570	9634	1340	-71	094	260.9	261.8	0.90	19.0
EMD024	11570	9634	1340	-71	094	341.5	343.9	2.40	5.4
EMD024	11570	9634	1340	-71	094	353.5	354.6	1.10	4.8
EMD024	11570	9634	1340	-71	094	358.2	359.4	1.20	9.5
EMD030	11571	9644	1340	-75	097	211.55	212.65	1.10	3.7
EMD030	11571	9644	1340	-75	097	226.05	227.08	1.03	4.7
EMD030	11571	9644	1340	-75	097	248.5	249.15	0.65	6.2
EMD030	11571	9644	1340	-75	097	256.9	258.1	1.20	4.7
EMD030	11571	9644	1340	-75	097	262.5	263.6	1.10	5.7
EMD030	11571	9644	1340	-75	097	339.2	341.55	2.35	2.3

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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“Exploration Success, Underground Potential Firms”

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Figure 1: Underground Longitudinal Section Showing Diamond Drill Holes EMD023, EMD024 and EMD030 and Drill Target Areas

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Figure 2: Section 9635N of the Edna May Underground

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“Exploration Success, Underground Potential Firms”

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Figure 3: Edna Section 9645N of the Edna May Underground

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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 Mineral Resource has been compiled by Mr Nicolas Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield 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 Johnson 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.

The reported Edna May Mineral Resource has been compiled by Mr Nicolas Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield 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 Johnson consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

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“Exploration Success, Underground Potential Firms”

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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. 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.

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 highlyexperienced 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.

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 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.

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“ Exploration Success, Underground Potential Firms ”