Evolution Mining : 2016 Annual Report

ASX: EVN | www.evolutionmining.com.au

Contents

3 Our Achievements in FY16

5 Executive Chairman's Report

7 Safety and Health

9 Our Assets

20 FY16 Production Summary

1. Outlook for FY17

2. Performance History - Key Indicators

3. Act Like an Owner

27 Discovery

34 People and Culture

36 Environmental Responsibility

38 Community Spirit

40 Mineral Resources and Ore Reserves

44 Board of Directors

47 Chief Financial Ofcer's Review

50 Annual Financial Report

174 Shareholder Information

176 Corporate Information

This report prepared by Evolution Mining Limited (or "the Company") includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to difer materially from any future results, performance or

achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration

and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in

the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and afect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be afected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to difer materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing

obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

Creating Australia's premier gold mining company

Evolution Mining is a leading, growth-focused Australian gold miner. We operate six wholly-owned mines - Cowal in New South Wales, Mt Carlton, Mt Rawdon, and Cracow in Queensland, and Mungari and Edna May in Western Australia. We are acquiring an economic interest in the Ernest Henry copper-gold operation1 in Queensland.

In FY16 Evolution produced 803,476 ounces of gold at an AISC of A$1,014 per ounce, generating a net mine cash flow of A$428.2 million.

Assuming the completion of the proposed acquisition of an economic interest in Ernest Henry, Evolution has revised FY17 Group gold production guidance to 800,000 - 860,000 ounces at an AISC of A$900 - A$960 per ounce.

Our company has continued to grow into a genuine mid-tier Australian gold producer after the acquisition of Cowal in July 2015 and Mungari in August 2015.

We have improved the quality of our assets through the sale of the Pajingo Mine and the acquisition of an economic interest in the world-class Ernest Henry copper-gold mine, expected to complete in the December quarter 2016.

We have a reputation for: operational consistency and reliability with a track record of always achieving production and cash cost guidance since formation; and for value accretive acquisitions.

Mungari Edna May

Tennant Creek JV

Ernest Henry

(Evolution economic interest)

Mt Carlton

Mt Rawdon Cracow

Cowal

Puhipuhi

Operation Exploration

Definitions applicable to this Report:

AISC (All-in Sustaining Cost) includes C1 cash cost, plus royalty expense, plus sustaining capital expense, plus general corporate and administration expenses on a per ounce sold basis

AIC (All-in cost) is ASIC plus growth (major capital) and discovery expenditure. Calculated on per ounce produced basis Calculated using an average AUD:USD exchange rate for FY16 of US$0.7284

1. Completion of the transaction is subject only to Australian Foreign Investment Review Board ("FIRB") approval

Evolution Mining Limited Annual Report 2016 1

Evolution - Australia's second largest gold producer

280,401oz

392,920oz

428,703oz

437,570oz

803,476oz

FY12*

FY13

FY14

FY15

FY16

Photography courtesy of Dianne Newell - Manager People and Culture, Mungari

Note:

Production from FY12-FY15 was gold equivalent ounces. Gold equivalent is defined as gold plus payable silver from the A39 deposit at Mt Carlton. FY16 will be gold ounces

* Attributable gold equivalent ounces

800,000 - 860,000

A$900 - A$960

14,015koz 5,853koz

+2.3Moz

PRODUCTION OUNCES

AISC COST PER OUNCE

SINCE NOVEMBER 2011

2 Evolution Mining Limited Annual Report 2016