EVOLUTION MINING LIMITED — Regulatory Filings 2004

Jan 11, 2004

12 January 2004

ASX RELEASE

WESTONIA GOLD RESOURCE BASE INCREASE

HIGHLIGHTS

Consequent upon its recent and successful Big Pit Drilling Initiative, independent statistical estimates have strongly increased the Westonia Project Resource base to above one million ounces, as follows:

Indicated Resources	2004 Estimate	2003 Estimate	Percentage Increase (Decrease)
Tonnage Grade Ounces	18.9 Mt 1.33 $g/t$ 810,000	13.1 1.40 590,000	44 (5) 37
Indicated Plus Inferred Resources
Tonnage Grade Ounces (at a $0.7$ g/t cut-off)	24.3 Mt 1.33 $g/t$ 1,040,000	20.3 1.40 910,000	20 (5) 14

The above figures are presented for comparative purposes. In the light of the resource tonnage increases, the Company is assessing the potential to run a higher grade mining operation.

$\begin{array}{cccccccccc} \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \bullet & \$ $\bullet \qquad \qquad \bullet \qquad \bullet$ $\bullet$

Westonia Mines undertook its Bit Pit Drilling Initiative in the last quarter of 2003. It aimed to:

• Increase the company's resource and mineable reserve base by $\bullet$ infilling the previous drill patterns below 200m depth.
• Achieve an infill density such that a higher proportion of Indicated $\bullet$ status resource / reserve estimates could be made as this status is needed for bankable project finance.
• Seek an increase in open cut mine life at the planned 2.5mtpa milling rate.

All Big Pit Initiative aims have been achieved. The programme resulted in the definition of the additional Indicated status resources for less than \$4.00/oz, and for the additional total resources at under \$6.00/oz.

Independent consultants Hellman & Schofield have provided new resource estimates using the Multiple Indicator Kriging method. Although the Company has numerous mineralised drill intersections down to 700m, estimates are confined to within only 300 vertical metres from the surface. The consultants have stated that the Indicated resources can be regarded as "high confidence".

The estimates are as follows:

	Indicated		Inferred		Total
	Tonnage м	Grade g/t	Ounces 1000	Tonnage м	Grade git	Ounces 1000	Tonnage м	Grade git	Ounces '000
0.7 g/t cut-off	18.9	1.33	810	5.4	1.34	230	24.3	1.33	1040
Percentage increase (decrease) on 2003 estimates	44	$\left( 5\right)$	37	(24)	(4)	(27)	20	(5)	14

These estimates are now being used for pit optimization planning and the estimate of reserves. Both are due for completion about the end of January.

The difference between Indicated and Inferred resource categories results from a difference in available data density and its spatial distribution. The Company is confident that the new drilling results will allow a larger reserve base to be estimated from a deeper pit than previously designed. Additionally, a portion of the Inferred resources are immediately below the flooded open pit and this zone cannot be drill accessed prior to resumption of mining. The Company's database above and below that zone leads to a reasonable expectation that ore production from it should exceed the Indicated estimates which will be used for the feasibility study.

The significantly increased tonnages of Indicated resources lead to the potential for the Company to mine and mill a higher grade product. A low grade stockpile could be established for future treatment after repayment of project capital and/or consequent upon a future gold price rise. For example, at a 0.9 g/t cut-off, new resources are estimated as:

Indicated:	13.0 mt	@	1.58 $g/t$ for	660,000 oz
Total:	16.5 mt	@	1.59 $g/t$ for	840,000 oz

The Company has begun to assess the relative economics of that approach.

Andrew Drummond Managing Director

Enquiries should be directed to the Managing Director and readers are encouraged to register on the Company's website (www.westoniamines.com.au) for automatic receipt of information.

Competent Person Declaration

The information on mineralisation 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 the requisite experience in the field of activity in which he is reporting.