EVOLUTION MINING LIMITED — Interim / Quarterly Report 2003

Apr 28, 2003

QUARTERLY REPORT FOR THREE MONTHS ENDED 31 March 2003

HIGHLIGHTS

• The independent bankable feasibility study ("BFS") is near completion.
• There has been a concentration on the optimisation of mine development economics.
• New studies incorporating an increased processing rate of ۰ 2.5mtpa and an average annual production rate of over 100,000 ounces show financial advantage.
• Negotiations to acquire a suitable second hand plant are expected $\bullet$ to be finalised shortly.
• A Project Manager has been appointed.
• Corporate advisers have been appointed for project financing and Debt and equity project financing matters are treasury. proceeding well.
• Launch of the Westonia Deeps Initiative which aims to secure the long-term future of the Company.
• Tenement holding position strongly enhanced. $\ddot{\bullet}$

Enquiries: Andrew Drummond, Managing Director Westonia Mines Limited ABN 074 084 669 036

9 Havelock Street, West Perth, WA 6000 Telephone: +61 8 9321 3088 Facsimile: +61 8 9321 8804 Email: andrewd@westoniamines.com.au Web site: www.westoniamines.com.au

WESTONIA GOLD PROJECT

BFS

The BFS has progressed well during the quarter, and it is expected to be completed shortly. The Company expected to sign option agreements over the principal components of a processing plant during the quarter, however vendor paperwork is now anticipated shortly.

The components of the plant are compatible with requirements for an upgrade of tonnage throughput, and the Company decided to examine the economics of a 2.5mtpa alternative. Although as yet incomplete, there seems to be a clear financial advantage for the larger throughput, which should result in average annual gold production of over 100,000 ounces.

The BFS is being expanded to cover both scenarios. The principle aim is to optimise project economics and tasks covered during the quarter, which included:

• Sterilisation drilling programs
• Drilling of oxide low grade dumps
• Ongoing resource estimates, pit design and mineable resource estimates. The estimates are taking longer to complete than anticipated due to the impact of a relatively low drill density in the zone under the flooded old open cut. Results are expected shortly.
• Layout design
• Mill design
• Environmental and social impact studies
• Geotechnical studies
• Operating and capital cost estimations, and identification of areas where savings can be made

PROJECT FINANCING

The Company has appointed Prime Corporate Finance to act as its advisers with respect to debt financing, and Oakvale Capital Limited will advise in regard to ongoing treasury functions.

Discussions have continued with relevant banks which provide resource funding. Site visits were made and indicative term sheets have been received from most of them. Several brokers are showing enthusiasm to be involved in any equity capital raising.

The Company aims to finalise the project financing as soon as is practicable after receipt of the BFS. The financing arrangements will be determined in light of the BFS projections and the (then) gold price and market conditions.

PROJECT MANAGER

Westonia Mines secured the appointment of Mr Ian Kerr to supervise the completion of the BFS and the project construction. He is highly suited, having undertaken similar roles for WMC and the Placer group.

TENEMENT ACQUISITIONS

The Company aims to become a long-term producer in the Westonia district by the eventual discovery of further ore bodies. It has moved to acquire a significant land holder position over the Westonia greenstone belt either by direct application or by dealing. During the quarter, land under the Company's control has increased from its original 7km² of the Prospectus to approximately 250km². Exploration of that ground has been initiated and significant results will be reported as they become available. Westonia Mines' tenement holding is shown in Figure 1.

In particular, the old West Westonia field, situated 5km away from Westonia, was acquired via three deals. Over 8,000 ozs have been produced from quartz vein systems there.

THE WESTONIA DEEPS INITIATIVE

During the quarter the Company announced that it aims to evaluate at depth the economic potential of the multi-million ounce Westonia gold system. An infill assaying program on old drill core has been completed and this data is being used in current resource estimate studies.

Modelling of the data will be carried out in the forthcoming quarter with the intention of determining:

• The extent of mineable bulk ore which can be readily accessed from the Company's 264m deep decline.
• Target zones for further deep drilling which have the potential to provide long-term mill feed at Westonia. Previous drilling has shown continuity of the mineralised system to a depth of at least 700m.

Drilling is planned for the latter half of 2003 and the Initiative has an original budget of \$0.5 million.

RESIGNATION OF DIRECTOR

During the Quarter Mr Doug Young tendered his resignation as a Non-executive Director, due to a recent appointment. The resignation was accepted reluctantly and the Company wishes to record its appreciation of the excellent contribution by Mr Young while he was on the Board, particularly concerning project financing matters.

Enquiries should be directed to the undersigned and readers are encouraged to register on the Company's website (www.westoniamines.com.au) for automatic receipt of information.

Released for and on behalf of Westonia Mines Limited

Andrew Drummond Managing Director

Competent Person Declaration

The information on mineralization in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves). It is compiled by A.J. Drummond, an employee of the Company who is a Fellow of The Australasian Institute of Mining and Metallurgy with more than requisite experience in the fields of activity in which he is reporting.