EVOLUTION MINING LIMITED — Capital/Financing Update 2011

Oct 19, 2011

16 September 2011

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ABN 74 084 669 036

The purpose of this letter is to notify you that your listed Catalpa options with an exercise price of $1.10 ( Options ) are due to expire on 31 October 2011. The quotation of these Options will end on 31 October 2011.

If you do not validly exercise your Options before 31 October 2011, your Options will automatically lapse and will no longer be capable of exercise. You will also have no further rights in respect of your Options.

If you wish to exercise your Options, you may do so by completing the enclosed Notice of Exercise of Options and forwarding it together with payment to Catalpa, so that it is received by Catalpa on or before 31 October 2011. Catalpa will issue you with one ordinary share for every Option validly exercised.

As at the 13[th] of September 2011, the last closing price of Catalpa ordinary shares was $1.95. The latest available market price of Catalpa ordinary shares can be found on the Australian Securities Exchange’s website at www.asx.com.au. In the 3 months immediately preceding the date of this notice, the highest and lowest market price for Catalpa ordinary shares was $2.12 on 12 September 2011 and $1.30 on 29 June 2011.

You should consider consulting your financial and accounting advisor before making any decision on whether to exercise your Options.

If you have any queries in relation to the above, please do not hesitate to contact Link Market Services on 1300 365 790.

Yours faithfully

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Erik Palmbachs Company Secretary Catalpa Resources Limited