EVOLUTION MINING LIMITED — Capital/Financing Update 2008

Dec 7, 2008

==> picture [556 x 83] intentionally omitted <==

8 December 2008

CATALPA SUCCESSFULLY RAISED $3.5M IN RIGHTS ISSUE

Catalpa Resources ( ASX: CAH ), Perth-based emerging gold producer announced it had closed a renounceable Rights Issue on 3 December with strong support from its shareholders despite the difficult market.

ASX Code: CAH

Total number of shares on issue: 345,445,864

Share Price Current: $0.022

The rights issue raised approximately $3.5 million before costs of the issue.

Bruce McFadzean, Catalpa Resources Managing Director said the Board is delighted by the level of shareholder support.

“We are very pleased with the outcome of the Rights Issue which was well supported despite an extremely difficult market environment. This shows that Catalpa Resources continues to have a very strong and supportive shareholder base enabling the Company to pursue its objectives,” Mr McFadzean said.

Mr McFadzean confirmed the funds will be used to continue Catalpa’s ongoing drilling programmes and to provide for working capital to further expand on Reserves and improve economics of the Edna May Gold Project.

“We are greatly appreciative of the continued support of Catalpa’s shareholders who share the Board’s confidence in the positive outlook for gold in general and for Catalpa’s Edna May Gold Project in particular,” Mr McFadzean said.

12 month range: $0.075 (high) - $0.021 (low)

Board of Directors

Mr John Rowe: Non Exec Chairman Mr Bruce McFadzean: Managing Director Mr Murray Pollock: Non Exec Director Mr Barry Sullivan: Non Exec Director Mr Chris Melloy: Non Exec Director Mr Nigel Johnson: Non Exec Director Mr Graham Anderson: Company Secretary Mr Leonard Math: Company Secretary

The holding statements for new securities will be dispatched shortly.

ENDS

For further enquiries contact:

Bruce McFadzean Managing Director Catalpa Resources Limited Tel (08) 9321 3088

Warrick Hazeldine / Annette Ellis Media and Investor Relations Purple Communications Tel: (08) 9485 1254

Major Shareholders

Major Shareholders
Lion Selection Group Limited	44.04%
Goldrich Holdings	4.05%
Zero Nominees	2.57%
HSBC Custody Nominees Aus.	2.03%
Charlemagne Investments	1.35%
Drummond Shay Margaret	1.16%
Geddes Angus William	0.88%
ANZ Nominees Limited	0.78%
Pretorius Leon Eugene	0.58%

==> picture [534 x 65] intentionally omitted <==

==> picture [556 x 83] intentionally omitted <==

ABOUT CATALPA RESOURCES

Perth-based Catalpa Resources Limited (ASX: CAH) aims to become Australia’s next mid tier producer by developing its open pit assets, located on its extensive and wholly-owned mining tenements in Western Australia.

Catalpa is on the cusp of a new phase of development towards production at its Edna May (gold) Project, conveniently positioned a few kilometres from the infrastructure of Westonia, an established town with a long mining history. The project is just three hours or 300km by road from Perth; half way between Perth and Kalgoorlie and ideally situated to be serviced by both centres.

Notably, there have been three previous successful mining programs which have occurred both above and below the planned open pit at Edna May, which significantly reduces the risk of Catalpa’s current project.

Catalpa has an experienced and innovative Board and management team that is committed to realising a timely production and cash flow profile from the development of the Edna May open pit resources.

This is the company’s immediate strategy; and an update to the Company’s 2006 Edna May Gold Project Feasibility Study is on schedule to be tabled to the Board in the December quarter 2008. In preparation for planned production at Edna May, the Company relocated its 2.8mtpa Big Bell mill to site in 2007. The mill is being maintained ‘ready for construction’ adjacent to the proposed plant construction site.

Catalpa is pursuing parallel growth with a renewed exploration programme underway of its 880km² of under-explored Westonia Greenstone Belt, and is reviewing other regional opportunities for acquisition and/or joint venture. In particular, Catalpa seeks to identify and develop new projects and/or acquisitions on its extensive land holding or within the region, which is prospective for gold, nickel and base metals.

Catalpa has a sound Resource base at Edna May with significant upside to grow resources and reserves and move towards production. With a buoyant outlook on the gold price, the Company’s Board believes that Catalpa Resources presents a sound investment opportunity with significant upside potential.

Catalpa Resources has adopted best practice standards across all its operating activities, including its social, health and safety, environmental management and corporate governance functions.

==> picture [534 x 65] intentionally omitted <==

==> picture [556 x 83] intentionally omitted <==

==> picture [304 x 304] intentionally omitted <==

==> picture [534 x 65] intentionally omitted <==