EVOLUTION MINING LIMITED — Management Reports 2010

Aug 25, 2010

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26 August 2010

ASX Code: CAH

STRONG INCREASE IN CRACOW MINERAL RESOURCE BOOSTS CATALPA INVENTORY

Catalpa Resources Limited (ASX:CAH) the growing Australian gold producer, today announced a 21% increase in the Mineral Resource at the Cracow Gold Project with the addition of 178 000 ounces of gold, bringing the updated Mineral Resource to 1.02 million ounces.

Catalpa has a 30% interest in the Cracow Gold Mine which is an unincorporated joint venture with Newcrest Mining Limited (70%), the projects operator.

Shares on issue: 162,749,311 Share Price Current: $1.57 (25 August 2010)

12 month range: $1.87 (high) - $0.93 (low)

Catalpa Managing Director, Bruce McFadzean commented “the increase is after mining depletion for the past year, and brings Catalpa’s combined Mineral Resource, including the Company’s 100% owned Edna May Gold Project to 1.98 million ounces.”

“The variance is largely due to the addition of Phoenix into resource, and resource additions at Tipperary, Kilkenny and Roses Pride. In addition, the cut-off grade has been reduced to 2.8g/t Au to reflect the marginal cut-off grade based on a gold price assumption of US$800 per ounce and an exchange rate of AUD/USD 0.75 (A$ gold price $1,067 per ounce).”

“Importantly, the Cracow Ore Reserve between June 2009 and June 2010 was maintained at 230 000 ounces of gold which was sufficient to replace mining depletion and reinforces our confidence in the sustainability of this quality gold asset.”

The Cracow Ore Reserve has been reported above a cut-off grade of 2.9g/t Au, which is the marginal grade cut-off grade covering all operating costs excluding mining fixed costs, and is based on a gold price assumption of US$750 per ounce and an exchange rate of AUD/USD 0.75 (A$ gold price $1,000 per ounce).

Board of Directors

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

Senior Management

Erik Palmbachs CFO Stuart Pether COO Nick Winnall Manager Exploration Adrian Pelliccia Manager Bus Dev John Winterbottom Manager Geology John Fraser General Manager – Edna May

As announced in the 30 June Quarterly Report, Cracow’s gold production of 102,759 ounces exceeded the FY2010 budget projections.

“We see a healthy outlook for the gold sector and remain optimistic about the potential of further exploration upside at both our Cracow and Edna May Gold Projects.

“In May this year we announced an increase in the Edna May Ore Reserve to more than one million ounces.”

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Comparison with previous Cracow Mineral Resource Estimates

Total Mineral Resource (100%) Royal, Crown, Klondyke N, Sovereign, Kilkenny, Tipperary, Empire, Roses Pride, Phoenix, Stockpiles	Total Mineral Resource (100%) Royal, Crown, Klondyke N, Sovereign, Kilkenny, Tipperary, Empire, Roses Pride, Phoenix, Stockpiles	Total Mineral Resource (100%) Royal, Crown, Klondyke N, Sovereign, Kilkenny, Tipperary, Empire, Roses Pride, Phoenix, Stockpiles	Total Mineral Resource (100%) Royal, Crown, Klondyke N, Sovereign, Kilkenny, Tipperary, Empire, Roses Pride, Phoenix, Stockpiles	Total Mineral Resource (100%) Royal, Crown, Klondyke N, Sovereign, Kilkenny, Tipperary, Empire, Roses Pride, Phoenix, Stockpiles	Total Mineral Resource (100%) Royal, Crown, Klondyke N, Sovereign, Kilkenny, Tipperary, Empire, Roses Pride, Phoenix, Stockpiles
	Tonnes	Grade Aug/t	Grade Ag g/t	Contained Au Oz	Contained AgOz
Jun-09	3,184,950	8.20	6.02	839,778	616,794
Jun-10	4,810,094	6.58	4.17	1,018,135	645,011
Variance	1,625,145	-1.62	-1.85	178,356	28,217
% Variance	51%	-20%	-31%	21%	5%

Material changes to the Mineral Resources at Cracow during the period include;

• Mining depletion at Royal, Crown, Klondyke North and Sovereign for -109 koz Au;

• Remodelling of Sovereign based on recent mining activities for -27 koz Au;

• Remodelling of Klondyke North based on recent mining activities for +13 koz Au;

• Remodelling of Kilkenny to include extension south toward Tipperary for +21 koz Au;

• Addition of Tipperary for +80 koz Au;

• Addition of Empire for +78 koz Au;

• Addition of Roses Pride for +100 koz Au.

Comparison with previous Cracow Ore Reserve Estimates

		Total Ore Reserve (100%)	Total Ore Reserve (100%)	Total Ore Reserve (100%)
	Royal,	Crown, Sovereign, Klondyke North, Kilkenny, Roses Pride and Phoenix, stockpiles
	Tonnes	Grade Aug/t	Grade Ag g/t	Contained Au Oz	Contained AgOz
Jun-09	996,811	7.2	4.8	230,428	152,291
Jun-10	923,960	7.7	5.4	230,198	160,515
Variance	-72,851	0.6	0.7	-230	8,224
% Variance	-7%	8%	14%	0%	5%

Material changes to the Ore Reserve during the period include;

• Mining depletion at Royal, Crown, Sovereign and Klondyke North for -85koz Au;

• Sill Pillar extraction method adjustment at Royal for +4koz Au;

• Modelling adjustments at Crown, Sovereign and Klondyke North for -2koz Au;

• Addition of Kilkenny for +26koz Au;

• Addition of Roses Pride for +22koz Au;

• Addition of Phoenix for +38koz Au;

• Adjustments to surface stockpiles of -3koz Au.

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Cracow Mineral Resource Statement 30% – 30 June 2010

	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement	Cracow Mineral Resource Statement
Royal,	Crown,Klondyke N,Sovereign,Kilkenny,Tipperary,Empire,Roses Pride,Phoenix,Stockpiles
	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
Cracow JV - 30 June 2009	0.3	9.5	80	0.1	6.7	30	0.6	7.9	150	1.0	8.2	250
Cracow JV - 30 June 2010	0.2	8.6	44	0.2	7.8	54	1.1	6.6	210	1.4	6.6	305

• The Mineral Resources have been reported above a cut-off grade of 2.8g/t Au, and is based on a $800/oz USD gold price and 0.75 USD:AUD exchange rate (A$1066 per ounce).

• All Mineral Resource figures are stated at the 30 June 2010 on a 30% attributable basis, with depletion by production where relevant.

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

• Due to rounding small discrepancies may exist

• 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%).

Cracow Ore Reserve Statement 30% – 30 June 2010

Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement	Cracow Total Ore Reserve Statement
Royal, Crown, Sovereign, Klondyke North, Kilkenny, Roses Pride and Phoenix, stockpiles
	Proved			Probable			Total Proved and Probable
	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces	Million Tonnes	Gold g/t	'000 Ounces
Cracow JV - 30 June 2009	0.2	7.7	57	0.1	5.5	12	0.3	7.2	69
Cracow JV - 30 June 2010	0.2	7.6	35	0.1	8.0	34	0.3	7.7	69

• The Ore Reserve has been reported above a cut-off grade of 2.9g/t Au and is based on a $750/oz USD gold price and 0.75 USD:AUD exchange rate (A$1000 per ounce).

• All Ore Reserve figures are stated at the 30 June 2010, with depletion by production where relevant.

• The Ore Reserve figures are shown on a 30% attributable basis.

• Due to rounding of figures small discrepancies may exist.

• 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%).

ENDS

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ATTRIBUTION STATEMENTS

The information in this report that relates to the Cracow Mineral Resource is based on work completed by Mr Craig Irvine, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Irvine is a full time employee of Newcrest 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’. Newcrest gives Catalpa Resources Limited consent to use this estimate for reporting purposes.

The information in this report that relates to the Cracow Ore Reserve is based on work completed by Mr Justin Woodward. Mr Woodward is a Member of the Australian Institute of Mining and Metallurgy and an employee of Newcrest. 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. Newcrest gives Catalpa Resources Limited consent to use this estimate for reporting purposes.

The Edna May Mineral Resource and Ore Reserve statements in this report have been compiled by Mr Adrian Pelliccia, 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

Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 100% interest in the 100, 000 ounces per annum Edna May Gold Project in Western Australia and a 30% interest in the 100, 000 ounces per annum Cracow Gold Project in Queensland (70% Newcrest Mining Limited).

Catalpa’s flagship Edna May Operations boasts an impressive forward sold position of 352,316 ounces of gold at A$1,557.50 per ounce. At a hedge book/spot weighted average gold price of A$1,460 per ounce Catalpa expects to realise an average cash operating margin of A$72 million per annum from the Edna May Gold Project alone.

With a combined Mineral Resource of more than 1.98 million ounces and a combined Ore Reserve of more than one million ounces of gold (refer announcement dated 27[th] May 2010), the Cracow and Edna May Operations will provide a sustainable long life cash flow to fund Catalpa’s growth strategy.

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

The Company has a motivated 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.

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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 per annum for a life of mine of more than nine years, with the first gold poured in April 2010.

CRACOW GOLD OPERATIONS (30%)

Catalpa owns 30% of the Cracow Gold project in Queensland with 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 the ramp up to full production of Edna May Gold project on time and within budget.

The Cracow Gold Project has a history of steady gold production of over 100,000 ounces per annum for the past four years and it is considered to have considerable exploration upside.

For further enquiries contact:

Bruce McFadzean Warrick Hazeldine/Annette Ellis Managing Director Media and Investor Relations Catalpa Resources Limited Purple Communications Tel (08) 9321 3088 Tel: (08) 9485 1254

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