EVOLUTION MINING LIMITED — Capital/Financing Update 2010

Feb 18, 2010

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ASX Code: CAH Shares on issue: 144,678,419 Share Price Current: $1.425 (18 February 2010) 12 month range $1.98 (high) - $0.20 (low)

19 February 2010

SHAREHOLDERS SUPPORT CANCELLATION OF 50M SHARES

Catalpa Resources (ASX: CAH), the fast-growing Australian gold producer, today announced its shareholders have approved the consolidation of its share structure via the cancellation of some 50 million Catalpa shares which were the legacy of the Company’s recent merger with Lion Selection.

Bruce McFadzean, Managing Director said the selective share ‘Buy-Back’ for nil consideration was overwhelmingly approved by shareholders at a General Meeting held in Perth yesterday afternoon. It will mean the cancellation of 49,922,703 shares previously held by Auselect Limited, which was acquired by Catalpa during the merger.

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

“Today’s decision effectively completes the merger and share consolidation process and leaves Catalpa’s share register considerably cleaner with 144.6 million shares and approximately 16 million options.”

“Importantly, we have taken the hard decisions to clean up our share register as part of the merger, and now the reduced number of shares on Catalpa’s register implies a strengthening in the underlying share value for all of our shareholders,” Mr McFadzean said.

In accordance with Section 251AA of the Corporations Act, the following information is provided to ASX Limited in relation to the Special Resolution:

Major Shareholders

Special Resolution - Selective Share Buy-Back:

Major Shareholders
HSBC Custody Nominees	10.49%
Citicorp Nominees P/L	7.95%
ANZ Nominees Limited	7.31%
National Nominees Limited	4.15%
Lion Manager P/L	4.10%
Cogent Nominees	3.91%
Creasy Mark Gareth	2.12%
Reneagle P/L	1.20%
Goldrich Holdings	1.01%
Nefco Nominees P/L	0.77%

The total number of proxy votes exercisable by proxies validly appointed was 43,810,293. The resolution was decided by a show of hands.

A breakdown of the proxies is as follows:

FOR	AGAINST	ABSTAIN	AT PROXY’SDISCRETION
43,408,664	14,900	3069	383,660

The affected shares will be cancelled immediately upon transfer and registration today, 18 February 2010.

ENDS

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%

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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.

For further enquiries contact:

Bruce McFadzean Managing Director

Warrick Hazeldine/Annette Ellis Media and Investor Relations

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Catalpa Resources Limited Purple Communications Tel (08) 9321 3088 Tel: (08) 9485 1254

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