EVOLUTION MINING LIMITED — Interim / Quarterly Report 2007

Apr 29, 2007

WESTONIA MINES LIMITED

30 April 2007

Company Announcements Office Australian Stock Exchange Limited 4th Floor 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam.

Third Quarter Cashflow Report

Please find attached the Appendix 5B Quarterly Cashflow Report for Westonia Mines Limited for the quarter ended 31 March 2007.

Yours sincerely,

• 7

John Fitzgerald Company Secretary

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") 31 March 2007

Year to date

Current quarter

Consolidated statement of cash flows

Cash flows related to operating activities

	Cash flows related to operating activities	\$A'000	(9 months) \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for
	(a) exploration and evaluation (b) development (c) production	(321) (2,982)	(1,308) (3,927)
	(d) administration	(389)	(1, 111)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	130	321
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(3, 561)	(6,024)
1.8	Cash flows related to investing activities Payment for purchases of:
	(a) prospects
	(b) equity investments
	(c) other fixed assets		(17)
1.9	Proceeds from sale of: (a) prospects
	(b) equity investments
	(c) other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other - reimbursement of tenement deposits	23	95
	Net investing cash flows	23	77
1.13	Total operating and investing cash flows (carried forward)	(3,539)	(5,947)

1.13	Total operating and investing cash flows (brought forward)	(3,539)	(5,947)
	related financing Cash flows to activities
1.14	Proceeds from issues of shares, options, etc.		6,151
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		(300)
	Net financing cash flows		5,851
	Net increase (decrease) in cash held	(3,539)	(96)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	8,457	5,014
1.22	Cash at end of quarter	4,918	4.918

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	178
1.24	Aggregate amount of loans to the parties included in item 1.10	$\mathbf{r}$

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.

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

Issued of 1,071,920 to Lion Selection in lieu of Sub-underwriting fees in relation to the renounceable rights issue completed in December 2006.

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

None

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		$\overline{ }$
3.2	Credit standby arrangements		m

Estimated cash outflows for next quarter

4.2	Development	3,000
	Total	\$3,400

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	918	457
5.2	Deposits at call	4.000	8,000
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	4.918	8.457

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 relinguished, reduced or lapsed	Nil	Nil	Nil	Nil
6.2	Interests in mining tenements acquired or increased	Nil	Nil	Nil	Nil

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	307,002,051	307,002,051
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	1,071,920	1,071,920	Nil	Nil
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)	30,000 30,000 700,000 200,000 200,000 2,000,000 1,000,000		Exercise price 36 cents 42 cents 11 cents 11 cents 11 cents 20 cents 20 cents	Expiry date 27/4/07 27/4/07 22/11/10 22/11/08 22/11/09 22/11/10 02/04/10
7.8	Issued during quarter	1,000,000	$\blacksquare$	Exercise price 20 cents	Expiry date 02/04/10
7.9	Exercised during quarter
7.10	Expired during quarter	$\blacksquare$
7.11	Debentures (totals only)	$\blacksquare$
7.12	Unsecured notes (totals only)	$\blacksquare$	-

Compliance statement

• 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).
• This statement does Hees net* (delete one) give a true and fair view of the $\mathfrak{p}$ matters disclosed.

(Company secretary)

Date: 30 April 2007

Sign here:

Print name:

John Fitzgerald

Notes

• $\overline{1}$ 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.
• $\mathcal{R}$ 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive 4 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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