EVOLUTION MINING LIMITED — Regulatory Filings 2010

Oct 19, 2010

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20 October 2010

DIAMOND DRILLING RESULTS SUPPORT CONTINUED RESOURCE GROWTH AT EDNA MAY

HIGHLIGHTS

• Diamond drilling from surface continues to delineate encouraging mineralisation at depth.

• 5 holes for 1,975.1 metres have been completed to date of a 10,000 metre program.

ASX Code: CAH Shares on issue: 162,772,989 Share Price Current: $2.14 (19 October 2010) 12 month range: $2.27 (high) - $1.18 (low)

• Results remain ‘highly encouraging’ including best intercepts of:

• 3.85m @ 4.54g/t Au from 328.5m in EMD015

• 5.96m @ 5.34g/t Au from 345.04m in EMD015

• 1.73m @ 33.71g/t Au from 286.35m in EMD017a

• 1.00m @ 18.07g/t Au from 310.15m in EMD019

• 0.65m @ 55.46g/t Au from 343.40m in EMD019

• 0.70m @ 36.40g/t Au from 356.30m in EMD019

• The results continue to support the potential to expand Resource ounces underground and increase the Reserve at the Edna May Gold Project.

• A maiden underground Mineral Resource estimate is expected in December following completion of the current program and interpretation of results.

UNDERGROUND POTENTIAL AT EDNA MAY GOLD PROJECT

Catalpa Resources Limited (ASX:CAH), the fast growing Australian gold producer , today reports preliminary assay results from a diamond drill program from surface testing high grade underground targets beneath the current open pit at the Edna May Gold Project in Westonia, WA.

Board of Directors Mr Peter Maloney: Non Exec Chairman Mr Bruce McFadzean: Managing Director Mr John Rowe: Non Exec Director Mr Barry Sullivan: Non Exec Director Mr Graham Freestone: Non Exec Director Mr Murray Pollock: Non Exec Director Mr Graham Anderson: Company Secretary Mr Leonard Math: Company Secretary Senior Management Erik Palmbachs CFO Stuart Pether COO Nick Winnall Manager Exploration Adrian Pelliccia Manager Bus Dev John Winterbottom Manager Geology Raelene Wyatt Manager HR John Fraser General Manager – Edna May

Catalpa commented “the results obtained from this program are encouraging and demonstrate the continuation of high grade mineralisation below the existing Mineral Resource“.

The current program has focussed on testing the continuity of high grade lodes at depth with a view to subsequent rehabilitation of the existing decline for further exploratory drilling and ultimately development of an underground Ore Reserve.

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The drilling program will be executed over two stages. The first stage consists of 28 holes for 9,950 metres on a 20m x 30m spacing targeting mineralisation in an area immediately below the current open pit design. Potential for high grade reefs will be tested to 100 metres below the final pit design (~350 metres below surface) with a view to establishing short range continuity and understanding the local variability of the high grade reef structures.

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Figure 1. Diamond Drilling Program location plan

The second stage consists of 6 holes for 2,650 metres targeting north‐easterly trending strike extensions to the Edna May and subsidiary quartz reefs. This is intended to further delineate and build the ounce profile per vertical metre and improve the economics of the underground potential.

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Figure 2. A Section on 9635mN looking north showing intercepts through Edna May Reefs

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Figure 3. A Section on 9655mN looking north showing intercepts through Edna May Reefs

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Figure 4. A Section on 9665mN looking north showing intercepts through Edna May Reefs

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Figure 5. A Section on 9685mN looking north showing intercepts through Edna May Reefs

It is anticipated that the current drill program will enable estimation of an updated Mineral Resource by the end of the year and form the basis of a mining study to determine the potential for a concurrent underground mining operation in addition to the Edna May open pit.

“The development of a high grade ore source is very much in line with Catalpa’s Five Year Business Plan to supplement the open pit ore, and the philosophy of growing the annual ounce profile of the Edna May Gold Project” said Catalpa.

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Figure 6. An oblique section on 12,075E showing historical drilling and the existing decline in relation to prospective underground opportunities at Edna May and Golden Point.

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A summary of assay results received to‐date from the current diamond drilling campaign is tabulated below:

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Note: Sampling conducted between geological features or 1m intervals down hole. All samples assayed using a total digest of a 40g charge by fire assay method. NSR = No significant Result

For further enquiries contact:

Bruce McFadzean Managing Director & CEO Catalpa Resources Limited Tel +61 8 9321 3088

Adrian Pelliccia

Manager Business Development Catalpa Resources Limited Tel +61 8 9321 3088

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Competent Person Statement

The information in this report has been compiled by Mr John Winterbottom (Manager Geology), who is a Member of the Australian Institute of Geoscientists (AIG) and a full‐time employee of Catalpa Resources Limited. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Winterbottom consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

ABOUT CATALPA RESOURCES

Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 100% interest in the 100,000 ounces per annum Edna May Gold Project in Western Australia and a 30% interest in the 100,000 ounces per annum Cracow Gold Project in Queensland (70% Newcrest Mining Limited).

Catalpa’s flagship Edna May Operations boasts an impressive forward sold position of 352,316 ounces of gold at A$1,557.50 per ounce. At a hedge book/spot weighted average gold price of A$1,460 per ounce Catalpa expects to realise an average cash operating margin of A$72 million per annum from the Edna May Gold Project alone.

With a combined Mineral Resource of more than 1.9 million ounces and a combined Ore Reserve of more than one million ounces of gold, (refer announcement dated 27th May 2010), the Cracow and Edna May Operations will provide a sustainable long life cash flow to fund Catalpa’s growth strategy.

Catalpa is confident that both Cracow and Edna May offer further Reserve and Resource growth potential, with ongoing exploration programs at both operations. In parallel, the Company continues to proactively identify and assess other production growth opportunities.

The Company has a motivated and technically accomplished management team and a highly‐experienced and supportive Board, committed to realising shareholder value from the Company’s growing asset portfolio.

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

EDNA MAY OPERATIONS (100%)

Catalpa’s wholly‐owned Edna May Gold Project is conveniently positioned just two kilometres from the infrastructure of Westonia, on the eastern edge of WA’s Wheatbelt region. The mine is half way between Perth and Kalgoorlie and ideally situated to be serviced by either of these major mining centres.

With its robust economics, geologically and metallurgically well defined ore‐body, high Ore Reserve confidence and excellent recovery rate of more than 92%, Catalpa’s Edna May Gold Project offers an attractive, long‐term platform to grow a mid tier gold producer.

Catalpa’s mine and processing schedule demonstrate average gold production at Edna May in excess of 100,000 ounces per annum for a life of mine of more than nine years, with the first gold poured in April 2010.

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CRACOW GOLD OPERATIONS (30%)

Catalpa owns 30% of the Cracow Gold Project in Queensland with a pre‐emptive right over Newcrest’s 70% stake in the asset. The Cracow Gold Project is well managed and operated by Newcrest, allowing Catalpa to remain focused on the ramp up to full production of Edna May Gold project on time and within budget.

The Cracow Gold Project has a history of steady gold production of over 100,000 ounces per annum for the past four years and it is considered to have considerable exploration upside.

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