EVOLUTION MINING LIMITED — Regulatory Filings 2004

Aug 18, 2004

WESTONIA MINES LIMITED

WESTONIA INCREASES ORE RESERVES

New pit design increases estimated Probable Ore Reserve to:

15.6 Mt @ 1.37 g/t for a contained 687,000 ounces

• The gold content has increased by 30% compared to that estimated for the Company's Bankable Feasibility Study.
• Updated economic parameters are presented.

Enquiries:

Andrew Drummond Managing Director

19th August 2004

NICE COOLS AND LANDS AND THE RESIDENCE OF A STRAIGHT CONTROL CONTROL CONTROL CONTROL CONTROL CONTROL CONTROL C

RESERVES

In its June Quarterly Report, the Company announced increases in the estimates of global resources and of contained reserve ounces in the pit used in its Bankable Feasibility Study ("BFS"). Those improvements were due to a recognition that earlier assaying methods had under-represented the gold grades.

In consequence of that higher grade, Westonia's independent mining consultants have optimized and designed a new pit. Their Probable Reserve estimate within that pit has increased to:

15.6 Mt @ 1.37 g/t for a contained 687,000 ounces.

• Compared to BFS estimates of ore, tonnes are up 22%, grade up 5% and contained ounces up 30%.
• The new pit also contains an Inferred Resource of an additional

1.4 Mt @ 1.42 g/t for 64,000 ounces

• The Company will drill out these Inferred Resource positions when the old open cut is dewatered. The aim will be to convert them to Indicated Resources status so that they can be re-classified as reserves within the new pit design.
• Conversion of Inferred Resources to ore and/or a future gold price rise should allow design of a larger pit and further improvements in project economics.
• The Company also anticipates recovering a further 42,000 ozs from treatment of existing low grade oxide dumps.
• Project economics at Westonia will be maximized by a greater gold production rate ensuing from a parallel open cut and underground operation: establishment of this is a prime aim for the Company. The increased open cut mine life of the revised pit design enhances this potential.

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The majority of the drilling which has tested the mineralized system at depth for a future underground operation has been assayed by the same earlier techniques which have been demonstrated generally to understate grades by about 20%.

ECONOMIC PARAMETERS

Current estimates of key factors for an open cut operation follow. They are compared with those previously announced for the BFS.

	August 2004	BFS
Indicated and Inferred Resources to 300 m at 0.7 g/t cut-off	30.4Mt@1.4 g/t	24.5Mt@1.4 g/t
Indicated and Inferred contained Resources at 0.7 $g/t$ cut-off $(ozs)$	1,360,000	1,070,000
Inferred Resources from existing oxide dumps (ozs)	47,000	47,000
Probable Ore Reserve, mining diluted	15.6Mt@1.37g/t	12.8Mt@1.29g/t
Total contained gold (including from inferred stockpiles) (ozs)	734,000	577,000
Mine life (years)	7.4	6.3
Hardrock mill throughput (Mtpa)	2.2	$2.2\,$
Gold recovery	90%	90%
Waste to ore ratio	2.3	$2.2^{\circ}$
Maximum pit depth (m)	215	205
Average cash cost, years 1-6 (AUD/oz)	420	420
Capital costs, construction and contingency (\$M)	35.3	34.5
Pre-production mining and working capital (\$M)	8.0	9.0

Should all 1.4 Mt of Inferred Resources within the new pit design be able to be converted to reserves, the effects on the above figures would be:

Total milled tonnes	17.0Mt@1.37g/t
Total contained gold (ozs)	798,000
Mine life (years)	8.1
Waste to Ore Ratio	20
Cash costs, Years 1-6 (AUD/oz)	405

Andrew Drummond Managing Director

Competent Person Declaration

The information on mineralization in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves). It is compiled by A.J. Drummond, an employee of the Company who is a Fellow of The Australasian Institute of Mining and Metallurgy with more than requisite experience in the fields of activity in which he is reporting.