Evolution Mining : Business Update

ASX Announcement

23 November 2017

BUSINESS UPDATE

ABN: 74 084 669 036

Registered Office

P +61 2 9696 2900

F +61 2 9696 2901

Level 30

175 Liverpool Street

Sydney NSW 2022 www.evolutionmining.com.au

Evolution Mining Limited (ASX:EVN) provides the following summary of new information that has been released today in the Chairman's address and presentation at the Company's Annual General Meeting.

Operations

Continued strong operational performance in the month of October:

Financial

Exceptional cash generation continues to reduce gearing. As of 31 October 2017:

• Year-to-date EBITDA margin of 54%3

• Net bank debt reduced to A$282.0 million

• Group cash balance increased by A$62.9 million4 during the month of October to A$113.0 million

• Total outstanding bank debt remains at A$395.0 million

• Gearing reduced to 11.3%

  Discovery

  Continued success at Cowal and Cracow triggers increase in FY18 exploration budget

• Follow-up drilling testing new zone of mineralisation at Cowal E41 West returned5:

  ▪ 31m grading 1.01g/t from 298m (E41D2803)

  ▪ 21m grading 2.19g/t from 349m (E41D2804)

  ▪ 88m grading 0.72g/t from 448m (E41D2804)

• Exceptional results at Cracow Imperial Zone with best intercepts returned of:

  • 6.9m grading 46.2 g/t (IMU065)

  • 9.4m grading 25.9 g/t (IMU074)

    Management Changes

• Mark Le Messurier, Chief Operating Officer (COO), departing at the end of December 2017

• Bob Fulker appointed as new COO commencing in February 2018

1

1. All-in sustaining cost (AISC) includes cash cost plus royalties, sustaining capital, general corporate and administration expense. Calculated on a per ounce sold basis

2. Using the average AUD:USD exchange rate for October 2017 of 0.7788 and FY18 year-to-date of 0.7868

3. Excluding Edna May

4. Includes A$38 million received on 3 October 2017 as the balance outstanding for the sale of Edna May

5. Reported intervals provided in this report are downhole widths as true widths are not currently known. An estimated true width (etw) is provided where available

In FY18, Evolution's initial plan was to invest approximately A$50.0 million across the Group portfolio in discovery and resource definition drilling. However, with the continued success at Cowal E41 West and the Cracow Imperial Zone, additional funds in the order of A$5.0 - A$10.0 million are expected to be invested to follow up on these exciting discoveries.

Follow-up drilling at E41 West continues to extend the mineralised zone along strike and down dip of previously reported results (Figure 1). Hole E41D2804 intersected 21m grading 2.19g/t Au from 349m and 88m grading 0.72g/t Au from 448m (Figure 2). The top of mineralisation in E41D2804 occurs approximately 100 strike metres south and 100 metres down-dip of the intercept reported in hole E41D2802 (139m grading 1.17g/t Au1). In other results, mineralisation was extended closer to surface in hole E41D2803 with a best intercept of 31m grading 1.01 g/t Au from 298m (Figure 1).

Further drilling will be planned following receipt of results for the final hole completed in this phase of drilling (E41D2805). The new drill program will include a number of framework holes to understand the full geologic context of this developing style of mineralisation.

1. This information has been extracted from the report entitled September 2017 Quarterly Report released to the ASX on16 October 2

2017 and available to view at www.evolutionmining.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information in the original announcement

Resource definition drilling at Imperial, located immediately north and along strike from the Coronation resource, continued to impress with significant assays received during October. Highlights of recent drilling are summarised below:

▪ 8.7m (7.4m etw) at 10.99 g/t Au (IMU062)

▪ 8.3m (6.9m etw) at 46.22 g/t Au (IMU065)

▪ 5.8m (5.6m etw) at 12.65g/t Au (IMU072)

▪ 9.8m (9.4m etw) at 25.85g/t Au (IMU074)

▪ 11.2m (9.4m etw) at 8.13 g/t Au (IMU075)

The new results are defining a zone of high-grade mineralisation which is open to the north and may extend further along strike towards the Empire ore-body. Space exists to potentially extend known resources or discover new shoots down to the projected position of the base of mineralisation at Kilkenny (Figure 3). Drilling this target area is a high priority, with a maiden resource anticipated to be included in the December 2017 Mineral Resources and Ore Reserves statement.

After six and a half years with Evolution, COO Mark Le Messurier will be departing the Company at the end of December 2017.

Mark has been with Evolution since its creation in 2011 and has played a key role in building the Company's reputation for operational reliability and delivery. Throughout the entire period since formation the Company has always achieved its production guidance. During Mark's tenure as COO, Evolution's annual rate of gold production has increased from 280koz to 844koz and AISC have decreased from A$1,228 per ounce to an industry leading A$907 per ounce in FY17.

Following Mark's departure, Evolution is pleased to announce the appointment of Bob Fulker as its new COO, commencing in February 2018.

Mr Fulker has more than 30 years of experience within the mining sector and has held a range of senior roles, most recently as the COO of Australian copper miner Oz Minerals. Prior to this he has held senior roles with Discovery Metals, BHP Billion, Xstrata and Kalgoorlie Consolidated Gold Mines.

Commenting on the management change, Evolution Mining's Executive Chairman, Jake Klein said:

"Mark has helped to build Evolution Mining into one of the most highly respected mid-tier gold mining companies in the world. Along with an unblemished delivery into production guidance, he has led significant improvements in employee safety standards and culture. I have enjoyed working with Mark and have the utmost respect for what he has achieved at Evolution. On behalf of the Board and Leadership Team, I wish Mark every success in his next endeavour."

"I also look forward to welcoming Bob to the role and am excited by the experience and skill set that he brings to Evolution. Bob's strong commitment to innovation and strategic planning will be highly relevant to our next phase of development."

Bryan O'Hara Michael Vaughan

General Manager Investor Relations Media Relations

Evolution Mining Limited Fivemark Partners

Tel: +61 2 9696 2900 Tel: +61 422 602 720

Evolution Mining is a leading, growth-focussed Australian gold miner. Evolution operates five wholly-owned mines

- Cowal in New South Wales; Mt Carlton, Mt Rawdon, and Cracow, in Queensland; and Mungari in Western Australia. In addition Evolution holds an economic interest in the Ernest Henry copper-gold mine that will deliver 100% of future gold and 30% of future copper and silver produced from an agreed life of mine area. Outside of the life of mine area Evolution will have a 49% interest in future copper, gold and silver production. FY18 Group gold production guidance is 750,000 - 805,000 ounces at an AISC of A$820 - A$870 per ounce.