EVOLUTION MINING LIMITED — Management Reports 2009

Dec 9, 2009

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10 December 2009

POST MERGER: CATALPA FOCUSSED ON FURTHER GROWTH

Catalpa Resources Limited (ASX:CAH) , becomes Australia’s newest gold producer, following approval of the merger with Lion Selection Limited by the Supreme Court of Victoria on 27 November 2009. The scheme will be implemented on 10 December 2009 and the new Catalpa shares issued as consideration will commence trading on ASX on 11 December 2009.

Bruce McFadzean, Catalpa Resources’ Managing Director said as per the terms of the merger Catalpa will also receive Lion Selection Limited’s prorata share of revenue accrued since 1 August 2009 from its 30% stake in the 100,000 ounce per annum Cracow Gold Project.

This provides circa 9,600 attributable ounces of gold generating positive cash flow to Catalpa of approximately A$3.5m (unaudited) in the four months to 30 November 2009.

“It’s great to be a cash-flow positive, producing gold Company.”

“The merger with Lion has been a very positive step in our journey towards becoming a mid-tier gold producer.”

”The consolidated company now boasts a Mineral Resource of 1.9 million ounces and an Ore Reserve of 1.02 million ounces of gold.”

“We are also confident that both our Cracow and Edna May Gold Operations can offer further reserve and resource growth potential, with ongoing exploration programmes at both operations”

ASX Code: CAHDA*

Share Price Current: $1.58 (9 December 2009) 12 month range: $1.98 (high) - $0.20 (low)

Board of Directors

Mr John Rowe: Non Exec Chairman Mr Bruce McFadzean: Managing Director Mr Murray Pollock: Non Exec Director Mr Barry Sullivan: Non Exec Director Mr Nigel Johnson: Non Exec Director Mr Graham Anderson: Company Secretary Mr Leonard Math: Company Secretary

Senior Management

Erik Palmbachs CFO Stuart Pether GM Operations Nick Winnall Manager Exploration Adrian Pelliccia Manager Geology

“At Edna May, exploration work in 2010 will focus on a pipeline of resource targets including the identified underground extentions (>300m below surface), the prospective Golden Point Resource, expansion of the Greenfinch Reserve as well as further regional exploration targeting Edna May analogies.”

“The Edna May Operation is set to deliver attractive annual cash-operating margins when it reaches full production next year, the revenue from which will fund the Company’s growth strategy. In parallel we are proactively and continually assessing appropriate merger and acquistion opportunities.”

“In the mean time, we remain focussed on delivering the Edna May Gold Project within budget and on schedule to produce first gold in June 2010.”

”The Project is circa 60% complete with concrete and civil works finalised, refurbishment and fittings well advanced ahead of the commissioning phase which kicks off May 2010.”

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Consolidated Mineral Resource Statement (including Ore Reserves):

The accompanying statement of Mineral Resources conforms to the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves (the JORC Code) 2004 Edition and is summarised in the following table:

	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009	Catalpa Resources Mineral Resource Statement November 2009
	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
Cracow JV*	0.3	9.5	80	0.1	6.7	30	0.4	8.6	110	0.6	7.9	140	1.0	8.2	250
TOTAL	22.3	1.14	820	18.4	1.03	610	40.7	1.09	1,430	12.2	1.2	480	52.9	1.12	1,910

• Mineral Resources and Ore Reserves (30% attributable), depleted by production as at June 30, 2009

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.

• Catalpa Resources Limited owns 100% of Sedimentary Holdings Pty Ltd which in turn owns 30% of Cracow Gold Project. Cracow is an unincorporated joint venture between Catalpa (30%) and Newcrest (70%).

2009 Mineral Resource Footnotes

• The Greenfinch and Edna May Mineral Resource figures are stated at 30 November 2009 on a 100% attributable basis with depletion by production where relevant.

• The Cracow Mineral Resource is stated at 30 June 2009 on a 30% attributable basis with depletion by production where relevant.

• The Edna May and Greenfinch Mineral Resources have been stated at a 0.4g/t Au cut-off grade.

• The Cracow Mineral Resource is stated within an underground mining shape based on marginal cut-off.

• 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 tonnes are considered insitu; beneficiation recovery factors have not been applied.

• The Greenfinch Resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction into 25 metres (East) by 15 metre (North) by 5 metre (Elevation) model blocks and assuming smallest mining unit for ore selection in mine grade control of 5 metres (East) by 3 metres (North) by 2.5 metres (Elevation).

• The Edna May Resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction into 25 metres (East) by 20 metre (North) by 5 metre (Elevation) model blocks and assuming smallest mining unit for ore selection in mine grade control of 8 metres (East) by 5 metres (North) by 2.5 metres (Elevation).

• Edna May and Greenfinch 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.

• - Due to rounding of figures small discrepancies may exist.

The reported Edna May and Greenfinch Mineral Resource has been compiled by Mr Nic Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield 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 Johnson consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The reported Cracow Mineral Resource 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 Mineral Resource are available on the Newcrest website www.newcrest.com.au

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Consolidated Ore Reserve Statement:

The accompanying statement of Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves (the JORC Code) 2004 edition.

	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009	Catalpa Resources Ore Reserve Statement November 2009
	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
Cracow JV*	0.2	7.7	60	0.1	5.5	10	0.3	7.2	70
TOTAL	17.2	1.18	656	10.4	1.10	368	27.6	1.15	1,024

• Mineral Resources and Ore Reserves (30% attributable), depleted by production as at June 30, 2009

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.

• Catalpa Resources Limited owns 100% of Sedimentary Holdings Pty Ltd which in turn owns 30% of Cracow Gold Project. Cracow is an unincorporated joint venture between Catalpa (30%) and Newcrest (70%).

2009 Ore Reserve Footnotes

• The Edna May and Greenfinch Ore Reserve figures are stated at 30 November, 2009 on a 100% attributable basis with depletion by production where relevant.

• The Cracow Mineral Resource is stated at 30 June 2009 on a 30% attributable basis with depletion by production where relevant.

• 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.

• Due to rounding of figures small discrepancies may exist.

• A gold price of A$1,250 per ounce has been assumed in estimating the Edna May and Greenfinch Ore Reserve.

• A gold price of US$650 per ounce has been assumed in estimating the Cracow Ore Reserve.

• -The economic cut-off grade applied to the Greenfinch and Edna May Ore Reserve was 0.4g/t Au.

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

The reported Edna May and Greenfinch Ore Reserves have been compiled 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 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

ENDS

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Competent Person Statement

The information in this report has 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.

ABOUT CATALPA RESOURCES

Perth-based Catalpa Resources Limited (ASX: CAH) is on the cusp of a new phase of development, following the successful raising of more than A$106M in debt and equity to advance its A$92M Edna May (open-pit gold) Operations to production by July 2010.

As part of the Edna May finance facility, Catalpa has sold forward 352,316 ounces of gold at an exceptional price of A$1,557 per ounce.

Catalpa plans to utilise Edna May’s solid annual cash operating margins to fund its growth and become Australia’s next mid tier gold producer.

In keeping with this strategy, Catalpa and previously its largest shareholder, Lion Selection Limited, merged their respective gold assets to bring together Lion Selection’s 47% shareholding in Catalpa’s 100% owned and operated 100 000 ounces pa Edna May Gold Project in Western Australia and Lion Selection’s 30% stake in the Newcrest managed, 100 000 ounces pa Cracow Gold Project in Queensland, under Catalpa’s experienced management team. As part of the merger, Catalpa also acquired a pre-emptive right over Newcrest’s 70% stake in Cracow.

With effect from the implementation of the merger on 10 December 2009, Catalpa is a cashflow positive gold producer from its 30% stake in Cracow. From mid 2010 when production commences at the Edna May Gold Project Catalpa will produce more than 130 000 ounces pa.

Catalpa has an experienced Board and management team that is committed to realising a timely production and cash flow profile at the Edna May Gold Project. With a buoyant outlook on the gold price, the Board believes that Catalpa Resources presents a sound investment opportunity with significant upside potential.

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

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For further enquiries contact:

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