EVOLUTION MINING LIMITED — Interim / Quarterly Report 2005

Oct 24, 2005

Appendix 5B

Rule 5.3

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Westonia Mines Limited

ABN

74 084 669 036

Quarter ended ("current quarter") 30 September 2005

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'000	Year to date $(3$ months) \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (b) development (c) production (d) administration	(1, 278) (293)	(1,278) (293)
1.3 1.4	Dividends received Interest and other items of a similar nature received	68	68
1.5 1.6 1.7	Interest and other costs of finance paid Income taxes paid Other (provide details if material)
	Net Operating Cash Flows	(1, 503)	(1,503)
1.8	Cash flows related to investing activities Payment for purchases of: (a) prospects (b) equity investments
1.9	(c) other fixed assets Proceeds from sale of: (a) prospects (b) equity investments	(6)	(6)
1.10 1.11 1.12	(c) other fixed assets Loans to other entities Loans repaid by other entities Other (provide details if material) - Bonds paid	(1, 561)	(1, 561)
	Net investing cash flows	(1, 567)	(1, 567)
1.13	Total operating and investing cash flows (carried forward)	(3,070)	(3,070)

⁺ See chapter 19 for defined terms.

	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17 1.18	Repayment of borrowings Dividends paid
1.19	Other (provide details if material) capital
	raising costs
	Net financing cash flows
	Net increase (decrease) in cash held	(3,070)	(3,070)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	7,200	7,200
1.22	Cash at end of quarter	4,130	4,130

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	85
1.24	Aggregate amount of loans to the parties included in item 1.10	$\blacksquare$

1.25 Explanation necessary for an understanding of the transactions

Item 1.23 includes aggregate amounts paid to directors including salary, directors' fees, consulting fees and superannuation. This figure also includes final salary, accrued annual leave and termination payments to former Managing Director.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

⁺ See chapter 19 for defined terms.

Financing facilities available
Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities		$\overline{\phantom{a}}$
3.2	Credit standby arrangements		$\blacksquare$

Estimated cash outflows for next quarter

	Total	1,640
4.2	Development	$\overline{\phantom{a}}$
4.1	Exploration and evaluation	1,640
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	399	432
$5.2^{\circ}$	Deposits at call	3,731	6,768
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	4.130	7.200

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference *securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	*Ordinary securities	220,998,086	220,998,086
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs
7.5	*Convertible debt securities
7.6	(description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	700,000 27,448,001 30,000 30,000	27,448,001	Exercise price 40 cents 20 cents 36 cents 42 cents	Expiry date 31/5/06 20/8/06 27/4/07 27/4/07
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

⁺ See chapter 19 for defined terms.

Compliance statement

• $\overline{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\mathfrak{p}$ This statement does does not (delete one) give a true and fair view of the matters disclosed.

Derin Wer

Date: 25 October 2005

Sign here:

(Director/Company secretary)

Print name:

Dennis Wilkins

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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⁺ See chapter 19 for defined terms.