EVOLUTION MINING LIMITED — Merger & Acquisition 2009

Dec 9, 2009

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10 December 2009

MERGER COMPLETE

Catalpa Resources Limited (ASX:CAH) (Catalpa) advises that the merger of Catalpa and Lion Selection Limited (LST:ASX) (Lion Selection) was completed today.

Lion Selection is now a wholly owned subsidiary of Catalpa. Catalpa shares issued as consideration under the merger have been registered in the names of Lion Selection shareholders and holding statements for those shares were despatched today. These shares are expected to commence trading on the Australian Stock Exchange on 11 December 2009.

Catalpa also confirms that new shareholding details have been registered in respect of Catalpa’s 11 for 1 share consolidation and holding statements for those shares were despatched today.

The Board and management of Catalpa take would like to thank its existing shareholders for their continued support and welcome its new shareholders as we continue on our exciting journey to becoming a pre-eminent mid cap gold producer.

ENDS

For further enquiries contact:

Warrick Hazeldine/Annette Ellis Media and Investor Relations Purple Communications Tel: (08) 9485 1254

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

ASX Code: CAH*

Total number of shares on issue*: 194,563,256

Share Price Current*: $1.58 (9 December 2009)

12 month range $1.98 (high) - $0.20 (low)

Board of Directors

Mr Peter Maloney Non Exec Chairman Mr Bruce McFadzean: Managing Director Mr John Rowe: Non Exec Director Mr Murray Pollock: Non Exec Director Mr Barry Sullivan: Non Exec Director Mr Graham Freestone: 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 Major Shareholders Auselect Limited * 25.66% HSBC Custody Nominees 8.78% Citicorp Nominees 6.47% ANZ Nominees Limited 4.35% National Nominees 3.07% Lion Manager 3.04% Cogent Nominees 2.90% Creasy Mark Gareth 1.57% Reneagle 0.89% Goldrich Holdings 0.75%

• Includes Auselect Limited circa 50m shares which subject to shareholder approval Catalpa intends to cancel within 12 months from the date of merger with Lion Selection Limited

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ABOUT CATALPA RESOURCES

Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 30% interest in the 100 000+ ounces per annum Cracow Gold Operations - a producing gold mine in Queensland (70% Newcrest Mining Limited); and the 100 000+ ounces per annum Edna May Gold Operations in Western Australia (100%) - an advanced gold project on schedule to commence production in June 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$1,400 per ounce Catalpa will realize an average cash operating margin of A$72 million per annum from the Edna May Gold Operations 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, 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 Gold Operations offer further Reserve and Resource growth potential, with ongoing exploration programmes 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 Operations 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 Operations 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 preemptive 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.

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.

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