EVOLUTION MINING LIMITED — Interim / Quarterly Report 2007

Jul 30, 2007

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QUARTERLY REPORT FOR THREE MONTHS ENDED

30 JUNE 2007

SUMMARY

• ♦ Land access procedures have been initiated in preparation for drilling

• ♦ Westonia process plant move completed on time and within budget

• ♦ Successful equity raising fully taken up by shareholders

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WESTONIA PROCESSING PLANT

During the quarter, the dismantling and relocation of the company’s wholly owned processing facility was successfully completed. All recoverable mill items were transported to Westonia for storage at the laydown area adjacent to the minesite, with the exception of some electrical components which are in Perth awaiting testing.

The dismantling and relocation of the Big Bell plant to Westonia was completed on time and on budget.

The Company’s management is intending to finalise its component of the Big Bell site rehabilitation within the coming weeks, whereupon it will move to recover the $1.5 million performance bond.

EQUITY RAISING

During June and July, the Company undertook a Renounceable Rights Issue to raise approximately $3.1 million before costs. This was achieved by offering shareholders one new share for every eight shares held and a free attaching option. The issue price for new shares was eight cents and the option exercise price is ten cents.

The rights issue was fully underwritten by Patersons Securities Limited but was fully taken up by existing shareholders.

Major shareholder, Lion Selection Limited again fully participated.

Level 1, 9 Havelock Street, West Perth WA 6005 ♦ PO Box 1300, West Perth WA 6872 Telephone: (08) 9321 3088 ♦ Fax: (08) 9321 8804

Email: manager@westoniamines.com.au ♦ Website: www.westoniamines.com.au

Quarterly Report – 30 June 2007

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EXPLORATION

As advised in the recent prospectus, the purpose of raising funds is to invest in exploration activities which are aimed at moving the Company towards achieving its production aspirations.

In ensuring that the funds raised are applied in the most effective manner, the Company has undertaken a comprehensive compilation of all historical exploration data together with the recent detailed aeromagnetic surveys to form a new electronic exploration database.

The Company’s experienced management and consultants where appropriate have been utilising the database to identify new exploration targets and rank them with previously known targets. A significant number of new targets have been identified using the Edna May geological setting as a targeting model.

Target ranking and internal reporting processes are almost complete and management has initiated land access procedures in preparation for the commencement of drilling. Following Board review, final drill priorities will be established and field programmes will begin.

The Company is also in the process of compiling the underground exploration database and updating its operating and capital costs to assess the underground mining potential.

WESTONIA GOLD PROJECT

The Company’s intention is to retain the Westonia Gold Project in a “finance ready” status whilst it undertakes new exploration initiatives. Potential future gold production remains unhedged and as a result the Company is fully leveraged to gold price increases.

For further information, please contact: David Hatch, Managing Director (08) 9321 3088

31 July 2007

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