EVOLUTION MINING LIMITED — Regulatory Filings 2004

Jul 21, 2004

Appendix 5B

Rule 5.3

ı

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

WESTONIA MINES LIMITED
------------------------	--

ABN

74 084 669 036

Quarter ended ("current quarter") 30 JUNE 2004

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'000	Year to date \$A'000 (12 months)
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation	(476) (241)	(3,219) (241)
	(b) development (c) production	(235)	(867)
1.3 1.4	(d) administration Dividends received Interest and other items of a similar nature
	received	44	176
1.5 1.6	Interest and other costs of finance paid Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(908)	(4, 151)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects
1.9	(b) equity investments (c) other fixed assets (Note 1) Proceeds from sale of:	219	(2,651)
	(a) prospects (b) equity investments
1.10 1.11	(c) other fixed assets Loans to other entities Loans repaid by other entities
1.12	Deposits	(56)	(359)
	Net investing cash flows	163	(3,010)
1.13	Total operating and investing cash flows (carried forward)	(745)	(7, 161)

Reduction of payments for fixed assets arose from a reclassification of expenditure Note 1: during a previous quarter.

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(745)	(7, 161)
1.14 1.15 1.16 1.17 1.18 1.19	related financing Cash flows to activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Costs of capital raisings		2,075 (100)
	Net financing cash flows		1,975
	Net increase (decrease) in cash held	(745)	(5, 186)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	2,208	6,649
1.22	Cash at end of quarter	1,463	1,463

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

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	62
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Salaries and payments to director controlled entities for the provision of consultancy services and directors fees. All payments on 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

None

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

None.

⁺ See chapter 19 for defined terms.

Financing facilities available
Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	$\overline{\phantom{a}}$	$\sim$
3.2	Credit standby arrangements	$\mathbf{r}$	$\mathbf{r}$

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	60
-4.2	Development	800
	Total	860

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		717	890
5.2	Deposits at call		323
5.3	Bank overdraft
5.4	Other (provide details) Commercial Bills	746	995
	Total: cash at end of quarter (item 1.22)	1,463	2,208

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
M77/637	Option to acquire	100%	Nil

⁺ See chapter 19 for defined terms.

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	101,193,85	101,193,852
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs
7.5	*Convertible debt securities
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	800,000 700,000 500,000 27,448,001 120,000 120,000 120,000 105,000 105,000	27,448,001	Exercise price \$0.30 \$0.40 \$0.30 \$0.20 \$0.36 \$0.43 \$0.50 \$0.36 \$0.42	Expiry date 31/6/05 31/5/06 30/9/04 20/8/06 17/7/06 17/7/06 17/7/06 27/4/07 27/4/07
7.8	Issued during quarter	105,000 105,000		\$0.36 \$0.42	27/4/07 27/4/07
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)	$\overline{ }$
7.12	Unsecured notes (totals only)

⁺ See chapter 19 for defined terms.

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).
• $\mathfrak{p}$ This statement does / does net* (delete one) give a true and fair view of the matters disclosed.

"John Hannaford" Sign here: Date: 22 July 2004 Company Secretary

JOHN HANNAFORD Print name:

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.
• $\overline{2}$ 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.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• Accounting Standards ASX will accept, for example, the use of International Accounting 5 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.