EVOLUTION MINING LIMITED — Interim / Quarterly Report 2009

Jan 26, 2010

==> picture [132 x 127] intentionally omitted <==

QUARTERLY ACTIVITIES STATEMENT 31 December 2009

CONTENTS

HIGHLIGHTS .................................................................................................................................................. 3 OVERVIEW ..................................................................................................................................................... 4 CORPORATE ACTIVITIES ................................................................................................................................ 5 MERGER WITH LION SELECTION COMPLETED .......................................................................................... 5 NEW BOARD TO DRIVE GROWTH STRATEGY ............................................................................................ 5 EDNA MAY OPERATIONS ............................................................................................................................... 6 CONSTRUCTION PROGRESS REPORT ........................................................................................................ 6 EXPLORATION REPORT .............................................................................................................................. 8 MINERAL RESOURCE AND ORE RESERVE UPGRADE ................................................................................. 8 DRILLING SUCCESS .................................................................................................................................. 11 GOLDEN POINT ........................................................................................................................................ 13 CRACOW (Catalpa 30%) .............................................................................................................................. 15 ACTIVITIES REPORT ................................................................................................................................. 16 EXPLORATION ......................................................................................................................................... 17 CRACOW MINERAL RESOURCE AND ORE RESERVE STATEMENT............................................................ 17 ATTRIBUTION STATEMENTS ........................................................................................................................ 18 COMPANY PROFILE ..................................................................................................................................... 19

2

HIGHLIGHTS

QUARTERLY GOLD PRODUCTION

• 7,231 ounces produced (Catalpa 30% share) from Cracow Gold Operations in 3 months to 31st December

• Mineral Resource increased to 1.91 Million ounces of gold

• Ore Reserves increased to 1.02 Million ounces of gold

CORPORATE

• Successful completion of merger with Lion Selection Limited

• Restructure of Board following merger: appointment of Peter Maloney as Non‐Executive Chairman and Graham Freestone as Non‐Executive Director

• Share consolidation complete

• Re‐election of Mr Murray Pollock as Non‐Executive Director

EDNA MAY GOLD PROJECT

• Safety ‐ Edna May Gold Project remains Lost Time Injury free

• Commenced production blasting and in‐pit mining

• Advanced plant construction, with installation of crusher, Ball and SAG mills

• Plant refurbishment now 95% complete

• Coarse ore stockpile, tunnel and conveyors well advanced

• All major concrete and steel works complete, including leach and absorption tanks

• Electrical and piping work commenced

• On schedule and on budget for first gold in June 2010

CRACOW GOLD MINE

• Safety – Lost Time Injury free during the quarter

• New monthly stoping record set in December of 36,043t

• New monthly mill processing record set in December of 41,858t

• Cash costs year‐to‐date under budget at A$492 per ounce

• Catalpa 30% attributable ounces 7,231 ounces December 2009 quarter

• Average gold price achieved December quarter A$1,197 per ounce

3

EDNA MAY GOLD OPERATIONS EXPLORATION

• Successful expansion of Mineral Resource and Ore Reserve base:

• Delivered a 13% increase in Mineral Resources, to 1.66 Million ounces

• Further 16% boost to gold Ore Reserves to 954,000 ounces (62% Proved)

• Updated Edna May Resource includes initial estimates of mineralisation within the Golden Point Gneiss

• Completion of a 4000m RC and diamond drilling program at Edna May

OVERVIEW

The December quarter was a defining period for Catalpa Resources Limited. During the reporting period, the Company completed a merger with Lion Selection Limited, and in doing so, joined the ranks of Australia’s gold producers through its 30% interest in the Cracow Gold Project.

Completion of the merger followed overwhelming approval from shareholders, and scheme approval from the Supreme Court of Victoria. This was a significant milestone in the Company’s development, and in its journey towards becoming a mid‐tier gold producer. The merged entity is a focused high margin gold company, which will be producing 130,000 ounces per annum following the commissioning of its Edna May Gold Project. Catalpa has increased the size and scale of its operations from a junior gold explorer, to a significant gold producer with an interest in two quality gold assets.

As a consequence of the merger, the Company has reshaped its Board, with new appointments adding further commercial and financial depth as it moves into the next phase of its growth.

While the merger has been one of several focuses for the Company during the past quarter, Catalpa is pleased to report that it remains on budget and on schedule to produce first gold at its wholly‐ owned Edna May Operations in June 2010. During the quarter, it achieved a number of major operational milestones at the project, including first blasting and first in‐pit mining. The Company has also made excellent progress in plant refurbishment and construction, and during the period, has met stated construction deadlines within budgeted capital costs. It does not have any long lead items outstanding, refurbishment is essentially complete, ore is on the ROM pad and people and systems are in place. The project has power and water, a supportive community and is now less than four months from commencing ore commissioning.

Catalpa remains confident in the upside potential of its Edna May Gold Project, and positive sentiment continues to be underpinned by consistently encouraging results from Catalpa’s ongoing exploration program. During the quarter, Catalpa announced further positive exploration results, increasing geological confidence in the Edna May deposit, and confirming new gold targets at Golden Point just metres from the Edna May mineralisation.

4

In December, the Company also announced an increase and upgrade in its Mineral Resource and Ore Reserve position. The increase is a further boost for the project, increasing Proved Ore Reserves and extending mine life in line with the overall exploration strategy.

CORPORATE ACTIVITIES

MERGER WITH LION SELECTION COMPLETED

At separate meetings in November, shareholders of both Catalpa and Lion Selection overwhelmingly approved the merger, and the merger was officially completed on 10 December 2009. Lion Selection is now a wholly owned subsidiary of Catalpa. Catalpa shares issued as consideration under the merger were registered in the names of Lion Selection shareholders, and those share commenced trading on 11 December 2009. Catalpa has scheduled a General Meeting of shareholders to approve the cancellation of approximately 50 Million shares leaving approximately 145 Million fully paid shares on its share register.

Catalpa shareholders also approved the consolidation of Catalpa shares based on an 11 for 1 ratio. Post share consolidation, Catalpa issued one Catalpa share for every one Lion Selection share held by Lion Selection Shareholders, as part of the merger.

The merger amalgamates Lion Selection’s 30% holding in the Cracow Gold Project (Newcrest 70%) and 46.9% holding in Catalpa, with Catalpa’s 100,000 ounce pa Edna May Gold Project. It has enabled Catalpa to become an immediate gold producer with revenue from approximately 30,000 ounces of annual gold production from the Cracow JV. Catalpa’s annual production will reach 130,000 ounces per annum when Edna May is commissioned in June 2010.

The merger, and with it, Catalpa’s transition from explorer to producer, is a significant milestone in the Company’s development, and in its journey towards becoming a pre‐eminent mid cap Australian gold producer.

NEW BOARD TO DRIVE GROWTH STRATEGY

Following completion of the merger with Lion Selection, Catalpa announced a restructure of its Board, and the appointment of Mr Peter Maloney as Non‐Executive Chairman and Mr Graham Freestone as Non‐Executive Director.

As part of the merger completion, Mr John Rowe stepped down as Non‐Executive Chairman and continues as a Non‐Executive Director of the Company. Under Mr Rowe’s skilled leadership, Catalpa has achieved the successful transition from explorer to producer, and the Board would like to thank Mr Rowe for his contribution to the Company.

The appointment of Mr Maloney and Mr Freestone provides for additional M & A experience and financial and commercial expertise to the Board.

Mr Maloney, aged 59, has broad commercial, financial and management expertise and experience. In a long career with WMC Resources, he held the positions of Treasurer, Executive Vice President Americas,

5

and Manager Commercial and Marketing –WA. He has also been Executive General Manager, Finance at Santos and Chief Financial Officer at FH Faulding. Mr Maloney has also been a director of several companies and organizations including Indophil Resources and Barra Resources, and was Chairman of Southern Health, the largest health care provider in Victoria, during a period of improvement in management and financial performance. He has been Chief Financial Officer of Lion Selection (and its predecessor companies) since 2003. Mr Maloney has been an Executive Director of Lion Manager since August 2007.

Mr Freestone has over 30 years experience in finance and in the resources industry in Australia and internationally. He has a broad finance, corporate and commercial background obtained during various senior finance positions with the Shell Group, Acacia Resources and AngloGold. Mr Freestone was comprehensively involved in the float of the Shell Group’s mineral interests through Acacia Resources Limited.

Mr Nigel Johnson has resigned as a Director of the Company. The Board wishes to express its sincere appreciation to Mr Johnson for his valuable contribution to the growth of the Company. At the Company’s Annual General Meeting in November, shareholders also re‐elected Murray Pollock as Non‐Executive Director.

EDNA MAY OPERATIONS

CONSTRUCTION PROGRESS REPORT

The Edna May Gold Project remains within budget and on track to achieve first gold production in June 2010. The team has achieved considerable progress towards this objective during the past quarter.

People and Safety

Catalpa is pleased to report that it has achieved its significant site progress without any lost‐time injuries since project construction commenced. This is a significant achievement on a compact site operating at peak construction phase with up to 180 employees and contractors working on‐site. This is a positive reflection on Catalpa’s employees and contractors focus on safety.

Mining Commenced

Catalpa’s first blast was fired on schedule, on Monday 14 December 2009, successfully removing a remnant overhang from the north face of the open‐pit. Mining has commenced, and 24 hour mining operations were underway in November. In addition, stockpiling of high and low grade ore has commenced on the ROM pad.

As reported last quarter, the mining fleet was mobilised in early October, with five 90 tonne trucks, one 120 tonne excavator and associated ancillary mining equipment on site.

6

==> picture [466 x 309] intentionally omitted <==

First production blast on the northern crest of the pit on 14 December 2009

Construction Progress

GR Engineering Services (GRES), the major contractor appointed to construct and refurbish the Edna May Gold Project process plant, continues to advance construction on schedule.

The crusher dump pocket retaining wall was finalized in December 2009 with the primary crusher now installed. The crusher apron feeder structural steel installation continues on schedule. The coarse ore stockpile and conveyor tunnel is well advanced with erection of conveyor structural steel and belt feeders almost complete. Both the SAG and Ball mills are now installed with structural steel in the grinding area now complete. Lubrication systems are installed and cyclone structural steel is ready to receive the cyclones.

Concrete contractors have finished and departed site whilst fabrication and refurbishment at the Edna May Gold Project processing plant is approximately 95% complete at the beginning of January 2010. Structural works are approximately 85% complete and mechanical, piping and electrical installations are well underway.

The gold room and elution circuit structural steel is almost complete and cabling and piping has commenced. Work is also well advanced on the cyanide, oxygen and RO plants.

Negotiations with power suppliers have been finalised. As announced in January, Catalpa has reached a four year power supply contract with Perth Energy. The onsite power lines and

7

transformers are installed, and the Company remains on schedule to have power into the plant site in February 2010.

==> picture [469 x 352] intentionally omitted <==

View to west showing both SAG and Ball Mills installed with cyclones in the background

EXPLORATION REPORT

Catalpa’s Board remains confident in the exploration upside potential of its tenement holdings, and has a clear strategy to increase the Edna May Ore Reserve to more than a million ounces in 2010, and further extend the life of mine beyond ten years. During the period, the Company’s exploration delivered further success toward these targets.

MINERAL RESOURCE AND ORE RESERVE UPGRADE

In December, Catalpa announced it had boosted its Mineral Resource and Ore Reserve position, delivering a 16% increase to gold Ore Reserves, and a 13% increase in the Mineral Resource at Edna May. The revised Mineral Resource and Ore Reserve estimate is the result of several drilling and assessment programs conducted during the second half of 2009.

8

Total Mineral Resources after mining depletion are estimated at 1.66 million ounces of gold which represents an increase of 170,000 ounces of gold (13%) to the previous estimate. The increase was driven by additions to the Edna May Deposit including an initial estimate of mineralisation within the Golden Point Gneiss and a reduction in applied cut‐off grade to 0.4 g/t Au to reflect the economic cut‐off grade at A$1,250 per ounce.

The Mineral Resource has been estimated to a maximum depth of 300 metres below surface which is an equivalent basis to previous Mineral Resource estimates. The Mineral Resource excludes mineralisation defined from previous deep (+300 metre) diamond drilling programs. A focus for Catalpa’s exploration campaign in 2010 is the deeper mineralisation, in an effort to move it towards a JORC compliant Mineral Resource in addition to advancing Golden Point; and drill testing regional targets.

Total Ore Reserves after mining depletion are estimated at 954,000 ounces of gold which represents an increase to the previous estimate of 134,000 ounces of gold (+16%), driven by conversion of Inferred Resource within the Edna May Deposit and revised gold pricing assumptions.

The updated Reserve position adds more than another year to the Edna May Operation’s mine life. Significantly, 62% of the Ore Reserve is in the highest confidence (JORC) Proved category. The gold price of A$1,250 used in the Ore Reserve estimate reflects a moderate approach to the current Australian dollar spot price and excludes the further price benefit Catalpa receives from the forward sold position of 352,316 ounces at A$1,557 per ounce.

9

Mineral Resource Statement (as announced 2 December 2009):

The accompanying statement of 30 November 2009 Edna May and Greenfinch Mineral Resources was estimated using Hellman & Schofield MIK block modelling techniques based on a 0.4g/t Au cut‐ off grade within a geologically and grade defined mineralisation envelope and in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves (the JORC Code) 2004 edition.

	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Mineral Resource Statement Reported to 0.4g/t Au cut‐off
	Measured			Indicated			Total Measured & Indicated			Inferred			Total Measured, Indicated & Inferred
	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
Greenfinch	0.9	1.12	30	2.5	1.00	80	3.4	1.03	110	0.6	1.0	20	4.0	1.02	130
Edna May	21.1	1.05	710	15.8	0.99	500	36.9	1.02	1,210	11.0	0.9	320	47.9	1.00	1,530
TOTAL	22.0	1.05	740	18.3	0.99	580	40.3	1.02	1,320	11.6	0.9	340	51.9	1.00	1,660

Effective holdings

• Catalpa Resources Limited owns 100% of the Edna May Operations Pty Ltd which in turn owns 100% of the Edna May Gold Project.

Footnotes to Mineral Resource

• The Resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction and assuming a smallest mining unit for ore selection.

• Measured and Indicated Resources lie in areas where drilling is available at a maximum of 25 x 25 metre spacing, Inferred Resources exist in areas of broader spaced drilling, generally peripheral to the Measured and Indicated panels.

• All Mineral Resource figures are stated at 30 November, 2009 on a 100% basis, with depletion by production where relevant.

• There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Mineral Resources.

• Mineral Resources are inclusive of Ore Reserves. The stated contained Mineral Resource metal ounces are considered in‐situ; beneficiation recovery factors have not been applied.

• Due to rounding of figures small discrepancies may exist.

10

Ore Reserve Statement (as announced 2 December 2009):

The accompanying statement of Edna May and Greenfinch Ore Reserves as shown below was compiled by Coffey Mining and is in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves (the JORC Code) 2004 edition.

	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off	Edna May Gold Project Ore Reserve Statement Reported to 0.4g/t Au cut‐off
	Proved			Probable			Total Proved & Probable
	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
Greenfinch	0.8	1.14	28	1.7	1.04	58	2.5	1.07	86
Edna May	16.2	1.09	568	8.6	1.08	300	24.8	1.09	868
TOTAL	17.0	1.09	596	10.3	1.07	358	27.3	1.09	954

Catalpa Resources Limited notes the following;

Effective holdings

• Catalpa Resources Limited owns 100% of the Edna May Operations Pty Ltd which in turn owns 100% of the Edna May Gold Project.

Footnotes to Ore Reserve

• Ore Reserves are the economically mineable part of Measured and/or Indicated Resources and include diluting materials and allowances for losses which may occur. Ore Reserves are quoted as a subset of Mineral Resources.

• Metal price assumptions for Ore Reserves are A$1,250 per ounce of gold at a processing rate of 2.8‐ 3.2Mtpa.

• The economic cut‐off grade of Ore Reserves is 0.4g/t gold.

• All Ore Reserve figures are stated at 30 November, 2009, with depletion by production where relevant.

• The Ore Reserve figures are shown on a 100% basis.

• There are no known environmental, permitting, legal, taxation, political or other relevant issues that would materially affect the estimates of the Ore Reserves.

• Due to rounding of figures small discrepancies may exist.

DRILLING SUCCESS

The upgrade in Mineral Resources and Ore Reserves followed a successful drilling program in the second half of 2009, which continued to underpin the robustness of the Mineral Resource for open pit mining at the Edna May Gold Project.

In October, Catalpa concluded Sixteen RC and diamond drill holes for 4,000m as part of a confirmation drilling program. The campaign was designed to increase confidence in the deposit geology and grade of gold mineralisation at depth, with a view to upgrading open pit Resources from Inferred to Indicated.

The broad drill intercepts demonstrate the substantial potential for the reef‐hosted gold lodes at the Edna May Gold Project to be developed as underground mining operations; potentially

11

concurrent with open pit mining. The vertical continuity of gold mineralisation is excellent and all of the identified gold deposits remain open at depth.

Significant assays are tabulated below;

	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections	Significant Drill Hole Intersections
Hole ID	Local Grid			Dip	Azimuth - Local	Depth From	Depth To	Downhole Interval (m)	Au (g/t)	Ore Surface
	North	East	Rl
EMD001	9573	11474	1340	-60	180	186.00	192.45	6.45	0.7	Edna May
EMD002	9596	11495	1341	-60	180	211.20	243.65	32.45	0.9	Edna May
EMD003	9617	11525	1341	-60	180	231.95	273.50	41.55	1.50	Edna May
EMD004	9605	11561	1341	-60	180	210.00	280.10	70.10	1.40	Edna May
EMD005	9606	11600	1340	‐60	180	229.14	237.50	8.36	0.74	Edna May
EMD006	9700	11668	1338	-60	180	182.90	236.30	53.40	3.02	Edna May
	Including					235.10	236.30	1.20	76.00	Edna May
EMD007	9633	11750	1337	-60	180	110.50	134.85	24.35	1.08	Edna May
	and					157.70	247.00	89.30	0.87	Edna May
EMD008	9721	11800	1340	-60	180	147.70	170.50	22.80	0.98	Edna May
	and					199.00	243.85	44.85	1.08	Edna May
EMD009	9708	11825	1340	-60	180	143.89	188.13	44.24	0.60	Edna May
	and					218.90	227.68	8.78	1.13	Edna May
EMD010	9707	11850	1339	-60	180	158.45	162.45	4.00	0.93	Edna May
EMD011	9703	11875	1340	-60	180	147.80	169.75	21.95	0.55	Edna May
	and					231.40	233.65	2.25	1.78	Edna May
EMD011	9703	11875	1340	-60	180	268.80	271.00	2.20	1.70	Golden Point
	and					321.30	326.80	5.50	2.22	Golden Point
EMD012	9673	12053	1338	-60	180	116.85	120.50	3.65	1.70	Edna May
	and					169.25	172.25	3.00	1.89	Edna May
EMD013	9698	12075	1344	-60	180	155.75	166.80	11.05	0.72	Edna May
EMD013	9698	12075	1344	-60	180	239.25	240.25	1.00	6.83	Golden Point
	and					267.85	275.40	7.55	4.96	Golden Point
	Including					267.85	268.40	0.55	64.00	Golden Point
	and					310.10	312.70	2.60	1.84	Golden Point
EMD014	9653	12122	1342	-60	180	108.80	126.49	17.69	1.09	Edna May
EMRC001	9440	11375	1360	-60	180	5.00	18.00	13.00	0.95	Edna May
	and					57.00	58.00	1.00	1.39	Edna May
EMRC002	9525	11425	1341	-60	180	45.00	57.00	12.00	2.43	Edna May
	and					68.00	69.00	1.00	26.30	Edna May
	and					92.00	95.00	3.00	1.13	Edna May

12

==> picture [458 x 282] intentionally omitted <==

Drill location plan

The nature of the Edna May gold deposit is typified by broad low grades of gold mineralisation hosting multiple higher grade quartz reef structures. The quartz reefs can demonstrate extremely high gold grades with a large proportion of visible particulate gold that can display significant variance over relatively short distances.

GOLDEN POINT

In addition to the continued resource definition of the Edna May deposit, two holes (EMD011 & EMD013) were extended into the footwall volcanics to scope depth extensions of the Golden Point Gneiss, a favourable lithology similar to the Edna May Gneiss. Both holes intersected the prospective tonalitic gneiss and returned anomalous mineralisation, including quartz reef intercepts with visible gold requiring further follow up. This is an extremely encouraging result and elevates the Golden Point Gneiss as a priority exploration target.

Further drilling is planned at Golden Point in the first quarter of 2010.

13

Significant intercepts through Golden Point are tabled below.

	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point	Significant Drill Hole Intersections - Golden Point
Hole ID	Local Grid			Dip	Azimuth - Local	Depth From	Depth To	Downhole Interval (m)	Au (g/t)	Ore Surface
	North	East	Rl
EMD011	9703	11875	1340	-60	180	268.80	271.00	2.20	1.70	Golden Point
	and					321.30	326.80	5.50	2.22	Golden Point
EMD013	9698	12075	1344	-60	180	239.25	240.25	1.00	6.83	Golden Point
	and					267.85	275.40	7.55	4.96	Golden Point
	Including					267.85	268.40	0.55	64.00	Golden Point
	and					310.10	312.70	2.60	1.84	Golden Point

==> picture [469 x 164] intentionally omitted <==

==> picture [469 x 164] intentionally omitted <==

----- Start of picture text -----

Au
----- End of picture text -----

Schematic section depicting depth extensions to Golden Point Mineralisation

14

CRACOW (Catalpa 30%)

The Cracow mine is located in central Queensland, Australia, approximately 4 kilometres from the township of Cracow and approximately 500 kilometres northwest of the city of Brisbane.

The Mine commenced operations in November 2004 and has consistently produced around 100,000 ounces per annum for the last five years. Ore throughput capacity exceeds 400,000 tonnes per annum with ore currently being sourced from the Royal, Sovereign, Klondyke and Crown mineralised zones. The gold mineralization occurs in steeply dipping low sulphidation epithermal fissure quartz veins developed at the intersection of major structures.

The Cracow Gold Mine is operated by Newcrest (70%) on behalf of the Cracow Mining Joint Venture. The joint venturers 30% share of gold produced at the Cracow Gold Mine for the twelve months to 31 December 2009 was 31,233 ounces at cash cost of $500 per ounce. The 30% share of Cracow is unhedged and unleveraged and continues to be fully exposed to the currently high A$ gold price providing a strong cashflow stream.

Ore Reserves of the project at 30 June 2009 were 0.23 Million ounces at 7.2g/t gold, compared with a Mineral Resource of 0.84 million ounces at 8.2g/t gold. These figures reflect 0.49 Million ounces of Inferred Resource that cannot yet be converted to Reserve. Exploration success has led to the delineation of the 225,000 ounce Kilkenny Inferred Resource and identification of the Phoenix mineralised structure. Recent drilling on the Kilkenny structure has intersected further gold mineralisation to the south of the Resource and this may extend the known mineralisation envelope, adding further potential for mine life extension.

The Cracow Gold Mine is a developed underground operation with a high quality management team. Cracow produces 95,000 – 105,000 ounces of gold annually and has outstanding potential to add substantially to the mine life through exploration success.

==> picture [190 x 39] intentionally omitted <==

==> picture [190 x 39] intentionally omitted <==

The Cracow Gold mine is located in the Theodore region of southern Queensland and is very well located with good infrastructure and access. The majority of staff and contractors operate on a fly‐in‐ fly‐out roster from the Sunshine Coast or Brisbane.

==> picture [190 x 38] intentionally omitted <==

==> picture [190 x 39] intentionally omitted <==

==> picture [190 x 38] intentionally omitted <==

Newcrest manages the operation and exploration activities of the Cracow Joint Venture

15

ACTIVITIES REPORT

People and Safety

No Lost Time Injuries or Serious Potential Incidents occurred, however one MTI occurred in December.

Environment

No significant environmental incidents were reported in the quarter.

Production

The Cracow Gold Mine remains within budget and on track to achieve 100,000 ounces gold production to June 2010.

Of particular note during the quarter was the December stoping performance with a new record of 36,043 tones stoped against a previous record of 34,918 tones set in June. In addition, a new monthly mill processing record of 41,858 dry tonnes milled resulted in above budgeted recovered gold.

Quarterly production summary (30% Attributable basis)

		Dec‐08	Mar‐09	Jun‐09	Sep‐09 Dec‐09
Total Ore Mined	tonnes	32,960	34,675	36,142	34,312 35,369
Ore Processed	tonnes	33,164	33,439	33,707	34,283 35,397
Ore Grade	g/t Au	7.02	6.52	8.32	8.49 6.97
Met Recovery	%	92.0	90.7	92.7	92.9 91.2
Gold Produced	oz	6,822	6,632	8,676	8,694 7,231

Cost Summary

Quarterly Cost Summary (30% Attributable basis)

		Dec‐08	Mar‐09	Jun‐09	Sep‐09 Dec‐09 8,694 7,231 1,147 1,197
Gold Produced	(oz)	6,822	6,632	8,676
Nominal Gold Price	(A$/oz)	1,212	1,337	1,201
Cash Cost	(A$/oz)	573	594	460	460 532 6.2 4.9 1.3 1.5 0.4 0.4
OperatingCashflow	(A$M)	4.4	4.9	6.4
Capital Costs	(A$M)	0.8	0.8	1.0
Exploration	(A$M)	0.6	0.5	0.4

16

EXPLORATION

During the quarter seventeen drill holes were completed for 6,500 metres on the Kilkenny structure north and south, the Killarney structure, west of Kilkenny and southern extensions of the Klondyke fault, south of the Royal.

The Kilkenny exploration incline continues to be pushed up to meet the Phoenix decline where approximately 300 metres remains before they meet. In late December the Phoenix structure was intercepted in the Phoenix decline exposing strong face gold grades in level development. The Phoenix mineralisation is outside the existing Mineral Resource and further drilling is anticipated to provide additional Ore Reserves in the near term.

Regional exploration in the quarter included completion of a magnetic survey to define drilling targets at Cracow South, where a repeat of the Cracow Goldfield is targeted. Other work during the quarter included field mapping, rock chip sampling at Walhalla and soil sampling at Cracow South.

CRACOW MINERAL RESOURCE AND ORE RESERVE STATEMENT

Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride	Cracow Mineral Resource Estimate Inclusive of Ore Reserves, depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign and Kilkenny,Tipperary,Empire and Roses Pride
Measured			Indicated			Total Measured & Indicated			Inferred			Total Measured, Indicated & Inferred
Million Tonnes	Gold g/t	Million Ounces	Million Tonnes	Gold g/t	Million Ounces	Million Tonnes	Gold g/t	Million Ounces	Million Tonnes	Gold g/t	Million Ounces	Million Tonnes	Gold g/t	Million Ounces
0.8	9.5	0.3	0.4	6.7	0.1	1.2	8.6	0.3	1.9	7.9	0.5	3.1	8.2	0.8

• Mineral Resources are contained within and underground mining shape based on a margin cut‐off grade

• Mineral Resource quoted on 100% basis (30% attributable to Catalpa)

• ** Further details on CMJV Mineral Resources and Ore Reserves are available on the Newcrest website www.newcrest.com.au

Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign	Cracow Ore Reserve Estimate Depleted by production as at June 30, 2009 Royal,Crown,Klondyke North,Sovereign
Proved			Probable			Total Proved & Probable
Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
0.8	7.7	190	0.2	5.5	40	1.00	7.2	230

• Ore Reserve based on a gold price of US$650 per ounce of gold

• Ore Reserve quoted on 100% basis (30% attributable to Catalpa)

• ** Further details on CMJV Mineral Resources and Ore Reserves are available on the Newcrest website www.newcrest.com.au

17

ATTRIBUTION STATEMENTS

The Edna May 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 Mineral Resource and Ore Reserve statements in this report have been compiled by Mr Adrian Pelliccia (Manager Geology), who is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and a full‐time employee of Catalpa Resources Limited. He 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 Pelliccia consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

The information in this report that relates to Edna May Mineral Resources is based on work completed by Mr Nicolas Johnson, who is a Member of the Australian Institute of Geoscientists. Mr Johnson is a full time employee of Hellman and Schofield Pty Ltd 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 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Johnson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Edna May Ore Reserve is based on work completed by Mr Harry Warries. Mr Warries 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 Warries gives Catalpa Resources Limited consent to use this estimate in reports.

The reported Cracow Mineral Resource and Ore Reserve is based on a Competent Persons Statement provided by Newcrest Mining Limited on behalf of the Cracow Gold Joint Venture. Cracow is an unincorporated joint venture between Catalpa (30%) and Newcrest (70%). Further details on CGJV Ore Reserve are available on the Newcrest website www.newcrest.com.au

18

COMPANY PROFILE

Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 30% interest in the 100,000 ounce per annum Cracow Gold Operations ‐ a producing gold mine in Queensland (70% Newcrest Mining Limited); and the 100,000 ounce per annum Edna May Gold Project in Western Australia (100%) ‐ an advanced gold project on schedule to commence production in May 2010.

The A$92 million Edna May Gold Project is fully funded, and, as part of the finance facility, Catalpa has sold forward 352,316 ounces of gold at A$1,557.50 per ounce. At an average gold price of A$1,365 per ounce Catalpa will realize an average cash operating margin of A$73 million per annum from the Edna May Gold Project alone.

With a combined Mineral Resource of more than 1.9 million ounces and a combined Ore Reserve of more than a million ounces of gold (refer announcement dated 2 December 2009), the Cracow and Edna May Operations will provide a sustainable cash flow to fund Catalpa’s growth strategy.

Catalpa is confident that both the Cracow and Edna May Operations offer further Reserve and Resource growth potential, with ongoing exploration programs at both operations. In parallel, the Company continues to proactively identify and assess other production growth opportunities.

The Company has a committed and technically accomplished management team and a highly‐ experienced and supportive Board, committed to realising shareholder value from the Company’s growing asset portfolio.

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

EDNA MAY OPERATIONS (100%)

Catalpa’s wholly‐owned Edna May Gold Project is conveniently positioned just two kilometers from the infrastructure of Westonia, on the eastern edge of WA’s Wheatbelt region. The mine is half way between Perth and Kalgoorlie and ideally situated to be serviced by either of these major mining centres.

With its robust economics, geologically and metallurgically well defined ore‐body, high Ore Reserve confidence and excellent recovery rate of more than 92%, Catalpa’s Edna May Gold Project offers an attractive, long‐term platform to grow a mid tier gold producer.

Catalpa’s mine and processing schedule demonstrate average gold production at Edna May in excess of 100,000 ounces of gold recovered per annum for a life of mine of more than nine years, with production planned to commence in June 2010.

CRACOW GOLD OPERATIONS (30%)

Catalpa owns 30% of the Cracow Gold Operations in Queensland with Newcrest Mining Limited, and also has a pre‐emptive right over Newcrest’s 70% stake in the asset. The Cracow Gold Project is well managed and operated by Newcrest, allowing Catalpa to remain focused on constructing the Edna May Gold Project on time and within budget.

19

The Cracow mine is located in central Queensland, Australia, approximately 4 kilometres from the township of Cracow and approximately 500 kilometres northwest of the city of Brisbane.

The Mine commenced operations in November 2004 and has consistently produced around 100,000 ounces per annum for the last three years. Ore throughput capacity exceeds 400,000 tonnes per annum with ore currently being sourced from the Royal, Sovereign, Klondyke and Crown mineralised zones. The gold mineralization occurs in steeply dipping low sulphidation epithermal fissure quartz veins developed at the intersection of major structures.

==> picture [341 x 277] intentionally omitted <==

Contacts:

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

Warrick Hazeldine / Annette Ellis Media and Investor Relations Purple Communications Tel: (08) 6314 6300

20

Appendix 5B Mining exploration entity quarterly report

1ule 5.3

Appendix 5B

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

CATALPA RESOURCES LIMITED

ABN 74 084 669 036 Consolidated statement of cash flows		Quarter ended (“current quarter”) 31 December 2009	Quarter ended (“current quarter”) 31 December 2009
		31 December 2009
Cash flows related to operating activities 1.1 Receipts from gold sales 1.2 Payments for (a) production (b) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other Net Operating Cash Flows	Current quarter $A’000		Year to date (6 months) $A’000
	3,632 (1,487) (2,693) - 95 (71) - -		3,632 (1,487) (4,491) - 290 (1,171) - -
	(524)		(3,227)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) project development (b) equity investments (c) other fixed assets 1.9 Proceeds from maturing term deposits 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (Tenement Bonds) Net investing cash flows	(33,659) - (171) 3,506 - - -		(49,450) - (288) 3,506 - - -
	(30,324)		(46,232)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(30,848)	(49,459)
Cash flows related to financing activities 1.14 Proceeds from shares /shares to be issued 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Proceeds from release of tenement bond 1.19 Other (cash acquired as part of business combination) Net financing cash flows	13 - 20,000 - - 235	14 - 20,000 - - 235
	20,248	20,249
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(10,600) 13,686 -	(29,210) 32,296 -
	3,086	3,086

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		155
		NIL
1.25	Explanation necessary for an understanding of the transactions
	All transactions involving Directors and associates were on normal commercial terms.

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

NIL

• 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

NIL

• See chapter 19 for defined terms.

Appendix 5B Page 2

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	65,000	20,000
	NIL	NIL

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	664
	25,059
Total	25,723

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 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	3,086	13,686
	-	-
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	3,086	13,686

Changes in interests in mining tenements

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

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	194,570,980*	194,570,980*
	13,777 88,029,353	13,777 88,029,353	$1.10 (Merger)	Fully Paid Fully Paid
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter (Increased due to rounding – Merger) 7.9 Exercised during quarter	3,480,045 15,690,020 18,182 9,091 397,731 397,731 397,731 340,912 56,819 113,637 113,637 113,637 113,637 6,060,606	3,480,045 15,690,020	Exercise price $1.10 $1.10 $1.21 $0.88 $0.88 $1.10 $1.32 $1.54 $0.66 $0.66 $0.88 $1.10 $1.32 $0.83	Expiry date 30/6/2010 31/10/2011 22/11/10 29/4/2011 23/12/2013 23/12/2013 23/12/2013 23/12/2013 23/12/2013 11/03/2014 11/03/2014 11/03/2014 11/03/2014 31/03/2014
	209 229	209 229	Exercise price $1.10 $1.10	Expiry date 30/6/2010 31/10/2011
	2,194 11,583	2,194 11,583	$1.10 $1.10	30/6/2010 31/10/2011

• See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

7.10 Expired during quarter	-
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

As a consequence of the merger of Catalpa Resources Limited ( Catalpa ) and Lion Selection Limited ( Lion* ) (implemented on 10 December 2009), Catalpa indirectly acquired Lion’s 49,922,703 Catalpa shares, 1,536,327 June 2010 Catalpa options and 10,218,873 October 2011 Catalpa options.

Catalpa will cancel Lion’s Catalpa options and intends to cancel, subject to shareholder approval, Lion’s Catalpa shares within 12 months of implementation of the merger. However, at this point in time those securities remain on issue and, accordingly, they have been included below.

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).

• 2 This statement does / ~~does not*~~ (delete one) give a true and fair view of the matters disclosed.

==> picture [181 x 49] intentionally omitted <==

Sign here: ............................................................ Date: 29 January 2010 ( ~~Director/~~ Company secretary)

Print name: GRAHAM DOUGLAS ANDERSON

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.

• 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 .

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001

Appendix 5B Mining exploration entity quarterly report

• 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.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

30/9/2001