EVOLUTION MINING LIMITED — Regulatory Filings 2007

Oct 30, 2007

Quarterly Report – 30 September 2007

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QUARTERLY REPORT FOR THREE MONTHS ENDED 30 SEPTEMBER 2007

EXPLORATION PROGRAMME PROGRESS

The regional exploration programme, which is targeting new deposits with sufficient economic potential to bring forward the start-up of the Westonia Gold Project, or as stand-alone mines, is progressing well, albeit slowly. As our tenements are over freehold land, much of which is currently farmed, it is incumbent upon us to reach appropriate access agreements with all of the relevant landholders before we commence sample collection via drilling or augering. We value the goodwill offered to us by the Westonia community and have spent much of the last quarter making sure that acceptable access arrangements are emplaced in preparation for the on-site RAB drilling programme. Subject to final statutory approval and rig availability, we hope to commence the RAB programme in the second half of November. The programme is anticipated to take 3 weeks. With the current minerals boom delays are being experienced in many areas of mining services, the timing of receipt of the RAB programme assay results cannot be predicted with confidence at this stage.

The results of this initial RAB programme will assist with the planning of follow up drill programmes.

We continue to work with the community and landholders in preparing for an auger sampling programme (that will be in addition to the RAB programme). Subject to obtaining the appropriate approvals, the auger programme is anticipated to occur in the March quarter 2008.

In parallel with arranging drilling and augering access, we have conducted a ‘first pass’ geochemical survey of the Begley tenement, by collecting 70 soil and 11 maglag samples. Assay results are awaited.

Evaluation of the database for the prospective deeper underground mineralisation continued during the quarter. It is proposed that this evaluation will result in a diamond drill programme in the first half of 2008.

STAFFING

The company is focussed upon improving shareholder returns to a level that would warrant the commitment to proceed with the Westonia Gold Project (“WGP”). The company has considered numerous alternative mining and processing strategies over the past 12 months to improve the economics, but to date these efforts have not been able to lower the total cash cost per ounce sufficiently for the project to proceed in the current gold price and cost inflationary environment. Although currently in hiatus, the WGP remains central to the company’s operational activities, and

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Quarterly Report – 30 September 2007

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a decision to proceed could be triggered at any time by either a sufficient increase in the gold price and/or the discovery of additional gold reserves.

Of these two factors, exploration is the one we can control, so the company is now focussing its efforts on finding more gold. As the technical aspects of the WGP are well in hand and with a renewed focus on exploration, our Managing Director, David Hatch, ceased employment with the company on 28 September 2007. In the interim , the Chairman, Mark Fitzpatrick, has assumed the chief executive responsibilities whilst a new CEO is sought.

EXTERNAL INTEREST

As an apparent consequence of the rising USD gold price, the company has recently received a number of approaches from parties wishing to discuss potential joint ventures or other collaborations. Whilst none of these has progressed very far as yet, they nonetheless indicate a level of interest in our unhedged 1.3m ounce open pit gold resource at the WGP and the prospective deeper underground mineralisation, as they might offer an attractive ‘option’ on the AUD gold price.

For further information, please contact:

Mark Fitzpatrick, Executive Chairman (08) 9321 3088

31 October 2007

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