EVOLUTION MINING LIMITED — Capital/Financing Update 2010

Feb 22, 2010

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23 February 2010

PROJECT UPDATE:

ASX Code: CAH

Shares on issue: 144,678,419

EDNA MAY CONSTRUCTION AHEAD OF SCHEDULE

Share Price Current: $1.380 (22 February 2010)

HIGHLIGHTS

• Construction at Edna May is one month ahead of schedule

12 month range $1.98 (high) - $0.20 (low)

• Edna May construction costs remain within budget

• Process plant power to be connected this week

• Zero lost time injuries during construction

• Mining continues on schedule - 100,000t of ore on the ROM pad

• 30% increase in tails facility design capacity

• Recruitment on schedule, favouring local employment.

Catalpa Resources Limited (ASX: CAH), the Australian gold producer today announced that construction of its second mine, the Edna May Gold Project is one month ahead of schedule. First gold pour is now expected a month early in May 2010. The project remains within budget.

Bruce McFadzean, Managing Director said Practical Completion is now scheduled for the second week of April 2010 when the final Ore Commissioning phase will commence.

Board of Directors

Mr Peter Maloney Non Exec Chairman Mr Bruce McFadzean Managing Director Mr John Rowe Non Exec Director Mr Murray Pollock Non Exec Director Mr Barry Sullivan Non Exec Director Mr Graham Freestone Non Exec Director Mr Graham Anderson Company Secretary Mr Leonard Math Company Secretary Senior Management

Erik Palmbachs CFO Stuart Pether GM Operations Nick Winnall Manager Exploration Adrian Pelliccia Manager Geology

“It is extremely pleasing that GR Engineering Services has been able to safely accelerate process plant construction giving us the opportunity to pour gold early. Power is scheduled to be switched on at the process plant this week allowing the systematic commissioning phases of the plant to commence in the weeks following.

We set out to meet or exceed our targets and provide sensible growth for our shareholders. While we are mindful of the commissioning goals ahead; the team has made excellent progress and should be congratulated on their achievements to date at Edna May.

Importantly, all of the above has been achieved safely and the project remains Lost Time Injury free which is a credit to everyone involved.”

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View of the process plant in the first week of February 2010

In addition to the accelerated process plant construction, Catalpa has been able to expedite other key project areas central to achieving early gold production. Mining continues on schedule with approximately 100,000 tonnes of ore on the ROM pad. The tails facility is also ahead of schedule providing for a 30% improvement on the planned tails capacity as outlined in the bankable feasibility study.

Recruitment remains on schedule with all management and senior roles now filled, and process operating roles on target to be filled in February and March. Catalpa now has 80 employees, many of whom have been employed locally, as per the Company’s commitment to utilising local labour and local service providers wherever possible.

“Early production at Edna May will allow Catalpa to take advantage of our significant hedge price of $1,557 per ounce and generate the cash flow to sensibly fund our own growth towards 250,000 ounces through exploration and acquisition,” Mr McFadzean said.

ENDS

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ABOUT CATALPA RESOURCES

Catalpa Resources Limited (ASX: CAH) has two exciting gold assets; a 30% interest in the 100,000 ounce per annum Cracow Gold Operations - a producing gold mine in Queensland (70% Newcrest Mining Limited); and the 100,000 ounce per annum Edna May Gold Operations in Western Australia (100%) - an advanced gold project on schedule to commence production in June 2010.

The A$92 million Edna May Gold Project is fully funded, and, as part of the finance facility, Catalpa has sold forward 352,316 ounces of gold at A$1,557.50 per ounce. At an average gold price of A$1,400 per ounce Catalpa will realize an average cash operating margin of A$72 million per annum from the Edna May Gold Operations alone.

With a combined Mineral Resource of more than 1.9 million ounces and a combined Ore Reserve of more than a million ounces of gold (refer announcement dated 2 December 2009), the Cracow and Edna May Operations will provide a sustainable cash flow to fund Catalpa’s growth strategy.

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

The Company has a committed 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 Operations is conveniently positioned just two kilometers 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 Operations 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 of gold recovered per annum for a life of mine of more than nine years, with production planned to commence in June 2010.

CRACOW GOLD OPERATIONS (30%)

Catalpa owns 30% of the Cracow Gold Operations in Queensland with Newcrest Mining Limited, and also has a preemptive 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 constructing the 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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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

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