EVOLUTION MINING LIMITED — Interim / Quarterly Report 2007

Apr 29, 2007

QUARTERLY REPORT FOR THREE MONTHS ENDED 31 MARCH 2007

SUMMARY

• Project financing update
• Big Bell plant relocation on schedule
• ♦ Appointment of preferred mining contractor
• Interim Greenfinch Resource upgraded
• ♦ Regional exploration activities

കിപ

PROJECT FINANCING

The company continues to conduct ongoing assessments of the various financing opportunities available for the Westonia Gold Project (WGP). Although substantial progress has been made in this regard, as previously disclosed, the strengthening of the Australian dollar against the US dollar has yet to result in an opportunity for the Company to finalise project funding with a structure that provides an adequate return for shareholders.

BIG BELL RELOCATION

The dismantling and relocation of the Big Bell plant continued to progress well during the quarter. The site work is now approximately 70% complete and is scheduled for completion within the original contract timeframe by the end of May.

The company continues to process and evaluate the various tender submissions for the Big Bell plant reassembly.

APPOINTMENT OF PREFERRED MINING CONTRACTOR

During the quarter, the Company appointed Minepower as its preferred mining contractor for the Westonia Gold Project. Westonia and Minepower have commenced the detailed work required to finalise the open pit mining contract, with the objective of executing the contract following the successful completion of project financing.

GREENFINCH RESOURCE

During the quarter the Company released a new JORC compliant Resource estimate for Greenfinch, and management has been evaluating the potential size of the associated Mining Reserve. The management view is that the Greenfinch Resource and Mining Reserve have significant growth potential and additional drilling is planned to commence later in 2007 to further increase the Resource and Reserve with the intention of including Greenfinch into the early stages of the WGP milling schedule.

REGIONAL EXPLORATION ACTIVITIES

During the quarter the company continued to pursue a series of regional exploration initiatives. A detailed aeromagnetic survey was completed over the majority of the Westonia Greenstone Belt covering the full length of the company's tenements. Images from this work together with the exploration database will be utilized to identify and rank brownfields and greenfields targets. An IP survey at Anomaly 47 to the north west of the WGP was completed and follow-up drilling is planned for the June 2007 quarter.

A programme of 9 RAB holes was completed to test one of the higher ranked Edna May repeat targets. This preliminary reconnaissance RAB drill program intersected favourable Edna May Gneiss host lithology and the results to date are being reviewed in the context of prioritising this target with other potential Edna May repeats.

30 April 2007

David Hatch Managing Director Westonia Mines Limited (08) 9321 3088