EVOLUTION MINING LIMITED — Capital/Financing Update 2012

Feb 26, 2012

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ABN: 74 084 669 036 P 02 8383 2100 F 02 8383 2101 PO Box 260, Bondi Junction NSW 1355 7/282 Oxford St, Bondi Junction, NSW 2022

ASX Announcement

27 FEBRUARY 2012

www.evolutionmining.com.au

UPGRADE OF UNDERGROUND MINERAL RESOURCES AT EDNA MAY

• Revised Underground Mineral Resource of 270,000 ounces at Edna May (a 70% increase)

• Successful upgrade and expansion of Inferred Resources to Indicated

• Underground Mineral Resource estimated to a depth of 550 metres below surface; strong potential for further growth at depth and along strike

• Two main domains of mineralisation identified by drilling:

• High grade quartz reef mineralisation – 490,000 tonnes at 8.8g/t for 140,000 gold ounces; and

• Halo mineralisation – 720,000 tonnes at 5.8g/t for 130,000 gold ounces

• New reefs defined with potential for further growth

Evolution Mining Limited (ASX: EVN) is pleased to provide an update to the underground Mineral Resource at its 100%-owned Edna May Gold Operations in Western Australia. The revised underground Mineral Resource comprises a total Indicated and Inferred Resource of 1.2 million tonnes at 7.0g/t for a total of 270,000 contained gold ounces.

This result highlights the success of 2011 drilling campaigns in upgrading a high proportion of Inferred Resources to Indicated and extending mineralisation at depth. The updated Mineral Resource represents a 70% increase in ounces to the previous estimate.

The underground Mineral Resource has only been defined to a depth of 550 metres below surface and remains open both at depth and along strike. Infill drilling to date has prioritised the upgrade of Inferred Resources close to the existing decline, beneath the open pit operation.

Commenting on the increase in resources, Evolution Executive Chairman, Jake Klein said:

“This is an encouraging addition to our efforts to maximise the value of Edna May. Our focus at the operation over the next 12 months remains on improving the reliability and performance of the plant, but underground development represents an option for adding value to the long term future at Edna May.”

Drilling programmes targeted the infill of high value areas of the Resource and extensional targeting aimed at testing depth and strike extensions to mineralisation. To date, this has resulted in the definition of additional reefs in the hanging wall of the Edna May Gneiss and successfully defined strong grade continuity both laterally and at depth.

Commitment to develop the underground opportunity remains on hold pending outcome of a number of initiatives to improve the plant performance and to sustainably increase throughput. It is expected that these improvements will occur over the next 12 months.

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EDNA MAY UNDERGROUND MINERAL RESOURCE ESTIMATE

The revised Mineral Resource estimate comprises 1.2Mt at 7.0g/t gold for 270,000oz of which 50% is classified as Indicated Mineral Resource. The upgrade in Mineral Resource confidence was enabled through recent infill and extensional diamond drilling completed during 2011 for a total of 19 diamond holes for 10,303m.

The February 2012 Edna May Underground Mineral Resource was estimated using Micromine Ordinary Kriging block modelling techniques, and reported on a 3g/t Au cut-off grade within geologically and grade defined mineralisation envelopes in accordance with the Australian JORC Code.

Two geological domains were defined for grade estimation: high-grade quartz reef mineralisation and corresponding halo mineralisation. A total of eight mineralised reefs were interpreted corresponding to down dip extensions of historically mined reefs together with newly identified hanging wall reefs to the Edna May Gneiss.

Edna May Underground Mineral Resource Statement (inclusive of Ore Reserves)
	Indicated				Inferred		Total Indicated & Inferred
		Gold g/t	‘000 Ounces		Gold g/t	‘000 Ounces		Gold g/t	‘000 Ounces
	Mt			Mt			Mt
High Grade Reefs	0.36	8.5	98	0.13	9.9	40	0.49	8.8	139
Halo Mineralisation	0.27	5.5	47	0.45	6.0	87	0.72	5.8	134
TOTAL	0.63	7.2	145	0.58	6.9	127	1.21	7.0	273

Table 1: Edna May Underground Mineral Resource Statement February 2012 (> 3.0g/t lower gold cut off)

The previous Mineral Resource estimate for the Edna May Underground was reported above a 3g/t cut-off in May 2011 and comprised a total of 700,000t at 7.4g/t gold for 166,000 ounces and was classified as Indicated and Inferred.

For further information please contact:

Investor Enquiries Media Contact Donna Kelly and Liesl Kemp Michael Vaughan Investor Relations Media Relations Evolution Mining Limited FTI – Media Relations Tel: +61 8 6216 9700 Tel: +61 2 8298 6100

Competent Persons Statement

The reported Edna May Underground Mineral Resource has been compiled by Mr John Winterbottom (GM Resources), 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.