Evolution Mining Ltd advises that the Board has approved an expansion to the Cowal processing plant to 8.7 Mt/y. In addition, step out drilling at Cowal GRE46 continues to deliver

exceptional results with several new high-grade intercepts returned from the current drill program including 46.0 m (27.2 m ETW grading 7.8g/t Au from 625 m (hole 1535DD348).

The Board has approved the plant upgrade at Cowal, 12 months ahead of plan, to increase throughput to 8.7 Mt/y from the previously permitted 7.5 Mt/y. Works will commence in the March 2019 quarter with commissioning expected approximately 12 months later. Total capital expenditure is estimated to be in the range of A$25-30 million which will be spent over FY19 (A$15-20 million) and FY20 (~A$10 million).

The increase in throughput is expected to result in additional gold production from current operating capacity of 5,000 oz in FY20, 10-15,000 oz in FY21, and 20,000 oz per annum from FY22 onwards. The plant expansion is expected to reduce unit processing costs by A$1.25-1.75 per tonne which equates to a reduction of 8-12%. Project works on the processing plant will focus on increasing plant utilisation and throughput and includes:

▪ Duplication of 11 critical single line pump sets to improve uptime

▪ Increasing reliability of critical equipment

▪ Decreasing major maintenance shutdown time with parallel SAG and ball mill relines

▪ Constructing a second stage pebble crushing circuit

▪ Enabling co-treatment of oxide material utilising additional Float Tails Leach (FTL) capacity

Further feasibility studies to determine the optimal long-term throughput rate of up to the permitted 9.8 Mt/y are ongoing. Metallurgical testing of potential future ore sources from GRE46 and Dalwhinnie mineral systems and the maximum throughput rate achievable from this first phase plant expansion needs to be assessed before determining the long-term throughput rate at Cowal.