EVOLUTION MINING LIMITED — Interim / Quarterly Report 2009

Oct 30, 2008

ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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HIGHLIGHTS

• New name reflects new vision

• Edna May Gold Project: Revised Bankable Feasibility Study nearing completion

• Reserves updated – increase by 16% to 629,000oz

• Encouraging results from surface diamond drilling programme - Edna May Underground

• Appointment of Erik Palmbachs as Chief Financial Officer

CATALPA SETS SAIL

On 3 September we announced that following overwhelming shareholder approval, the Company had changed its name from Westonia Mines Limited and commenced trading as Catalpa Resources Limited (“Catalpa”), on Australia Securities Exchange (ASX) code CAH.

The name and brand better reflect the company’s forward-looking focus and direction, with the timing of the name change considered to be opportune as the Company has entered a new phase of development towards production at its Edna May Gold Project.

The transition to the new name was smooth, with no interruptions to Company activities.

EDNA MAY GOLD PROJECT BANKABLE FEASIBILITY STUDY

During the quarter under review considerable management attention was given to finalising the revised Feasibility Study for Catalpa’s Edna May Gold Project.

The first sections of the Feasibility Study are currently being reviewed by Catalpa’s Board, with the full document to be available during the December quarter.

A number of positive changes have occurred to the key inputs driving the economics of the Edna May Gold Project since it was last assessed in 2006:

• Gold prices have increased by approximately 40% since early 2007

• The Australian Dollar (A$) gold price is buoyed by weaker currency (gold trading around A$1,100 and up to A$1,400 per ounce in recent weeks)

• The process plant modelling and review is now finalised at 2.8Mtpa. This is a step improvement in processing plant capacity, from 2.2Mtpa to 2.8Mtpa, with further process capacity upgrades to 3.2Mtpa possible that will positively impact on costs and economies of scale

• A$1,025 per ounce optimised pit shell combined with improved cut back strategy resulting in improved mining schedule

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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• The Edna May Processing Plant (ex Big Bell) is now maintained on-site in a state of readiness for construction, allowing a project timeframe from approval to commissioning in the order of twelve months.

Based on the present buoyant outlook for gold, together with the significant amount of mining history, modelling, test work, drilling and planning on the Edna May open pit Resource, the Board believes the project is poised to commence development in the 2009/10 financial year at a capital cost of some $85 million (including pre-strip allowance) with a resulting annualised production rate of more than 100,000 ounces of gold.

Edna May is a sound asset, with a Resource of more than a million ounces in a single orebody. The low grade nature of the Edna May Reserve is complemented by the orebody geometry and low strip ratio combined with the large process plant capacity, and relatively simple metallurgy of the ore. In these and other respects, Edna May has many similarities to the Mt Rawdon operation in Queensland, which is widely considered to be the benchmark mid tier low grade gold project in Australia.

RESERVES UPDATE

A study undertaken by Coffey Mining as part of their key role in providing the bulk of the work in the Feasibility Study for Catalpa, has led to an upgrade of Catalpa’s Reserve of some 85,000oz to 629,000oz.

The Reserves have been based on a Gold price in Australian Dollars of A$1,025 per ounce at a processing rate of 2.8Mtpa. A$1,025 per ounce is significantly below the current (Australian Dollar) gold price.

This is the first of a number of Reserve upgrades that will be reported over the December quarter and applies to the Edna May deposit alone. The Greenfinch Reserves will be reported when they are finalised and additional upgrades to the Edna May Reserve as they are completed.

Our mine schedule demonstrates annual gold production of more than 100,000 ounces recovered.

		Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate	Edna May Reserve Estimate
Cut		Proven			Probable		Total Proven & Probable
Off	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
Grade
0.50	11.2	1.18	425	5.2	1.22	204	16.4	1.19	629

The additional ounces at recent gold prices are a significant boost to the project revenue. In the context of recent market uncertainty, gold prices have remained buoyant in Australian Dollar terms, and have remained above or around A$1,100 per ounce over the past few weeks. These gold price levels underpin the opportunity we have to develop the Edna May Gold Project.

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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EXPLORATION UPDATE

EDNA MAY UNDERGROUND

Catalpa’s Board remains confident that the Edna May Project is highly prospective for underground mining, and a current diamond drill programme to test high grade underground targets at the Edna May Gold Project is returning some encouraging early results, including a substantial intercept for the Edna May Reef at depth of 16.45m @ 5.5 g/t Au from 506.65m in diamond drill hole WDD145.

The underground potential at Edna May plays no part in the current Feasibility Study, however, any additional economic ounces from below the open-pit operation will further enhance the project.

During the past quarter, significant progress was made in the surface diamond drilling programme. Six diamond holes for a total of 3,504 metres have been completed to-date, with two sets of encouraging assay results so far reported during the quarter for the first two holes in the programme namely; WDD144A and WDD145. Further assay results will be reported during the current quarter as and when they are received.

A significant feature of the drill programme is the occurrence of visible gold in all six holes.

There is currently a break in the drill programme to enable receipt of assays for the remaining four holes. The logged geology and assay results will be subject to continued analysis and interpretation for planning of additional drill holes.

While further review and study is required to determine the extent to which the intercepts enhance the geological picture of the Edna May underground potential, there is mounting evidence in the accumulated drilling data of preferentially high grade mineralised structures within the Edna May Gneiss.

Surface Diamond Drill Programme-Edna May Underground – Drill Hole Collar Details and Status

Hole_ID	Easting	Northing	Elevation	Depth	Azimuth Collar	Collar	Status
	MGA94_50	MGA94_50	M RL	metres	MGA95_50	Dip
WDD144	661474.0	6537480.0	1340.0	82.10	139.0	-65.0	Abandoned collar
WDD144A	661473.0	6537482.0	1340.0	609.97	139.0	-65.0	Assays received
WDD145	661474.0	6537480.0	1340.0	596.24	137.2	-61.6	Assays received
WDD146	661455.0	6537429.0	1340.0	598.07	135.0	-62.5	Logging completed –
							awaiting assay
WDD147	661537.0	6537380.0	1348.0	511.90	145.0	-64.2	Logging completed –
							awaiting assay
WDD148	661455.5	6537429.0	1340.0	567.90	131.2	-59.0	Logging completed –
							Awaiting Assay
WDD149	661456.0	6537429.0	1340.0	537.90	138.4	-56.1	Logging in Progress

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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Long projection of interpreted Edna May Gneiss illustrating hole survey location and previous drill intercepts

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WDD147
WDD148
WDD149
WDD145
WDD146
WDD144A
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Assays Received

WDD144A

Drill hole WDD144A yielded eight significant intercepts; four of which can be considered as potential stockwork or small-vein related intercepts, and four high-grade assays from zones of silicification and/or narrow (<10cm) mineralised quartz veins within the Edna May Gneiss; the targeted host lithology. The Edna May Gneiss was intersected from 440m to 556m.

The table below, based on a 5 g/t Au cut off, lists the most significant assay data relating to drill hole WDD144A.

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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	Hole WDD144A	Hole WDD144A
m	g/t Au	From (m)	To (m)
0.82	6.04	500.55	501.37
0.27	129.00	513.00	513.27
1.00	6.68	522.69	523.69
1.56	49.42	536.88	538.44
inc 0.44m	160.00	538.00	538.44
0.62	99.10	542.38	543.00
0.34	85.70	547.86	548.20
0.87	140.00	568.30	569.17
1.09	62.70	577.17	578.26

WDD145

There were four occurrences of visible gold in the second drill hole, WDD145 at 511.22m, 513.20m, 514.30m and 515.30m. Results from drill hole WDD145 include one of the most substantial intercepts of the Edna May Reef on record; of 16.45m @ 5.5 g/t Au (from 506.65m).

Drill hole WDD145 intercepted the Edna May Gneiss at a depth of some 450 metres below surface in a well-defined quartz-sulphide (pyrrhotite, pyrite) host lithology.

The table below, based on a 5 g/t Au cut off, lists the assay data relating to drill hole WDD145.

	Hole WDD145	Hole WDD145
m	g/t Au	From (m)	To (m)
1.25	8.6	453.8	455.05
1.34	7.7	476.4	477.74
16.45	5.5	506.65	523.10
Inc 5.05	13.9	506.65	511.70
Inc 1.47	30.6	510.23	511.70

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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An example of a promising intercept of visible gold in quartz-sulphides (pyrrhotite, pyrite) in WDD149. Assays are awaited.

EXPLORATION PLANNING: 2009

During the past quarter, planning was undertaken in preparation for the following exploration activities scheduled to be undertaken in 2009:

Location	Scope
Near Mine and Regional	Follow up drilling at three targets identified in 2007/8 RAB drill
Greenstone Belt	programme, complete first pass RAB testing of numerous
	magnetic low targets
Six targets within 12km of	Infill sampling following 2007/8 auger sampling programme
Edna May pit
Begley Tenement	Further testing of widespread open-ended anomaly identified
	during first pass geochemical sampling programme undertaken
	in previous financial period

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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Greenfinch deposit	Programme of 50 holes for 5,000m including infill and step out
	drilling with a view to upgrade existing Resource categories
Golden Point	10 RC holes to scope Golden Point gneiss at depth and
	determine its relationship with adjacent Edna May gneiss
RC Drilling at Edna May	The mineralisation being targeted is within two zones. The first
West and NE	is within 50 metres of surface and may impact on the planned
	mine schedule and mine sequencing. The second zone is
	around 100 metres below the surface and has the potential to
	extend the optimised pit outline on the western end
Edna May Underground	Assess and evaluate recent deep drilling results

EXECUTIVE APPOINTMENT: CHIEF FINANCIAL OFFICER

On 12 September Catalpa announced the appointment of Erik Palmbachs as the Company’s Chief Financial Officer. Mr Palmbachs took up the role with effect from 20 October 2008.

Mr Palmbachs is an experienced CFO and holds an MSc in Mineral Economics and a Bachelor of Business (Accounting). He is a member of the Australian Society of Accountants (AASA, CPA) and has an impressive resume with 29 years hands-on experience, much of which was gained in the resources sector.

Mr Palmbachs was formerly the Chief Financial Officer at Territory Resources Limited and his experience and proven track record in overseeing the financial aspects of systems, project development and acquisition of resources is an important skill set to benefit Catalpa in the Company’s journey towards becoming a mid-tier producer.

In particular, it is anticipated that Mr Palmbachs will be making a significant contribution during Catalpa’s financing and funding strategy in coming months, and also in terms of Catalpa’s strategy to review other regional opportunities for acquisition and/or joint venture.

Catalpa’s Board is very pleased to have attracted someone with Erik’s experience and skill set to Catalpa Resources.

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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Competent Person Statement

The exploration data has been compiled according to the JORC Code for the reporting of Mineral Resources and Ore Reserves by Nick Winnall (Exploration Manager), a full-time employee of Catalpa Resources Limited. Mr. Winnall is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and 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. Winnall consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

The reported reserves have been compiled by Mr John Hearne. Mr Hearne is a Member of the Australian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. Mr Hearne gives Catalpa Resources Limited consent to use this estimate in reports

ABOUT CATALPA RESOURCES

Catalpa Resources Limited (ASX: CAH), Perth-based emerging gold producer aims to become Australia’s next mid tier gold company by developing its open pit assets, located on its extensive and wholly-owned mining tenements in Western Australia.

Catalpa is on the cusp of a new phase of development towards production at its Edna May Gold Project, conveniently positioned a few kilometres from the infrastructure of Westonia, an established town with a long mining history. The project is just three hours or 300km by road from Perth, half way between Perth and Kalgoorlie and ideally situated to be serviced by both centres.

Catalpa has the added benefit of close proximity to grid power which will help contain costs and reduces the need for diesel powered generators.

Notably, there have been three previous successful mining programs which have occurred both above and below the planned open pit at Edna May, which significantly reduces the risk of Catalpa’s current project.

Catalpa has an experienced and innovative Board and management team that is committed to realising a timely production and cash flow profile from the development of the Edna May open pit resources.

This is the company’s immediate strategy; and an update to the Company’s 2006 Edna May Gold Project Feasibility Study is on schedule to be tabled to the Board in the December quarter 2008. In preparation for planned production at Edna May, the Company relocated its 2.8Mtpa Big Bell mill to site in 2007. The mill is being maintained ‘ready for construction’ adjacent to the proposed plant construction site.

Catalpa is pursuing parallel growth with a renewed exploration programme underway of its 880km² of under-explored Westonia Greenstone Belt, and is reviewing other regional opportunities for acquisition and/or joint venture. In particular, Catalpa seeks to identify and develop new projects and/or acquisitions on its extensive land holding or within the region, which is prospective for gold, nickel and base metals.

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ASX RELEASE

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2008

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Catalpa has a sound Resource base at Edna May with significant upside to grow resources and reserves and move towards production. With a buoyant outlook on the gold price, the Company’s Board believes that Catalpa Resources presents a sound investment opportunity with significant upside potential.

Catalpa Resources has adopted best practice standards across all its operating activities, including its social, health and safety, environmental management and corporate governance functions.

For further enquiries contact:

Bruce McFadzean Managing Director Catalpa Resources Limited Tel (08) 9321 3088

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