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GROWING POSTIVE OUTLOOK FOR CATALPAS EDNA MAY GOLD PROJECT

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GROWING POSTIVE OUTLOOK FOR CATALPAS EDNA MAY GOLD PROJECT Powered By Docstoc
					1 December 2008
                                                                                     ASX Code: CAH
GROWING POSTIVE OUTLOOK FOR CATALPA’S EDNA MAY
GOLD PROJECT                                                                         Total number of shares on issue:
                                                                                     345 445, 864
Catalpa Resources (ASX:CAH), Perth-based emerging gold producer, today
outlined a growing list of positive fundamentals underpinning the Company’s
Edna May Gold Project.                                                               Share Price Current:
                                                                                     $0.025
Managing Director, Bruce McFadzean said his vision is to commence production
at Edna May while the gold price remains strong.
                                                                                     12 month range:
“We are targeting attractive margins greater than AU$400 per ounce (pre-             $0.075(high) - $0.021(low)
capital); and an annual operating margin of greater than AU$40 million to
position Edna May as a sound cash operation for future growth,” Mr McFadzean
said.
                                                                                     Board of Directors
Mr McFadzean said a number of factors effectively reduce the risk of the Edna
                                                                                     Mr John Rowe:           Non Exec Chairman
May Gold project.
                                                                                     Mr Bruce McFadzean: Managing Director
“64% of Edna May’s Reserves are in the Proven category; this is not typical of       Mr Murray Pollock:      Non Exec Director
many gold mines today.”                                                              Mr Barry Sullivan:      Non Exec Director
                                                                                     Mr Chris Melloy:        Non Exec Director
“Three previous successful mining events both above and below Edna May
                                                                                     Mr Nigel Johnson:       Non Exec Director
further lower the risk of the project,” Mr McFadzean said.
                                                                                     Mr Graham Anderson: Company Secretary
Mr McFadzean said an optimised pit design has given rise to a significant            Mr Leonard Math:        Company Secretary
increase in Reserves in the past four weeks, for a minimum 6-year life-of-mine at
an Australian gold price of $1025 per ounce, well below the AU$1100 –
AU$1250 price range of recent months.
                                                                                     Major Shareholders
“The Reserves for the Edna May open-pit operation alone have been increased          Lion Selection Group Limited       44.04%
by 36% or 194 000 ounces to 738 000 ounces in the last four weeks, from              Goldrich Holdings                  4.05%
optimisation of the pit design and schedules,” Mr McFadzean said.                    Zero Nominees                      2.57%
                                                                                     HSBC Custody Nominees Aus.         2.03%
“Significantly, the updated Reserves exclude the adjacent Greenfinch deposit
which we target to release next month.                                               Charlemagne Investments            1.35%
                                                                                     Drummond Shay Margaret             1.16%
Mr McFadzean said Edna May presents several opportunities for upside                 Geddes Angus William               0.88%
potential.                                                                           ANZ Nominees Limited               0.78%
                                                                                     Pretorius Leon Eugene              0.58%
“Further upside potential could be realised from additional near-mine ounces that
may be identified in our ongoing exploration programme.

“The current feasibility study also excludes the potential higher-grade
underground ounces that the results of a current drill programme are supporting.

“Any additional underground ounces are just icing on the cake,” he said

“We also have the opportunity to realise significant cost savings arising from the
current market, including reductions in fuel costs in recent months.”

…/2
Mr McFadzean acknowledged the challenging funding and capital raising environment, but reiterated
the Board’s confidence that in the context of the current buoyant outlook for gold, the attractive margins
and merits of the project could hold their own.

Catalpa’s Edna May Gold Project Feasibility Study is on schedule to be considered by the Board next
month.

ENDS


For further enquiries contact:

Bruce McFadzean                              Warrick Hazeldine / Annette Ellis
Managing Director                            Media and Investor Relations
Catalpa Resources Limited                    Purple Communications
Tel (08) 9321 3088                           Tel: (08) 9485 1254



Competent Person Statement

The reported Ore Reserves have been compiled by Mr Harry Warries. Mr Warries is a Member of the
Australian Institute of Mining and Metallurgy and an employee of Coffey Mining Pty Ltd. He has sufficient
experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity
he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of
Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of
Geoscientists and the Minerals Council of Australia. Mr Warries gives Catalpa Resources Limited consent
to use this estimate in reports.




ABOUT CATALPA RESOURCES

Perth-based Catalpa Resources Limited (ASX: CAH) aims to become Australia’s next mid tier
producer by developing its open pit assets, located on its extensive and wholly-owned mining
tenements in Western Australia.

Catalpa is on the cusp of a new phase of development towards production at its Edna May (gold)
Project, conveniently positioned a few kilometres from the infrastructure of Westonia, an
established town with a long mining history. The project is just three hours or 300km by road from
Perth; half way between Perth and Kalgoorlie and ideally situated to be serviced by both centres.

Notably, there have been three previous successful mining programs which have occurred both
above and below the planned open pit at Edna May, which significantly reduces the risk of
Catalpa’s current project.

Catalpa has an experienced and innovative Board and management team that is committed to
realising a timely production and cash flow profile from the development of the Edna May open pit
resources.
This is the company’s immediate strategy; and an update to the Company’s 2006 Edna May Gold
Project Feasibility Study is on schedule to be tabled to the Board in the December quarter 2008.
In preparation for planned production at Edna May, the Company relocated its 2.8mtpa Big Bell
mill to site in 2007. The mill is being maintained ‘ready for construction’ adjacent to the proposed
plant construction site.

Catalpa is pursuing parallel growth with a renewed exploration programme underway of its 880km²
of under-explored Westonia Greenstone Belt, and is reviewing other regional opportunities for
acquisition and/or joint venture. In particular, Catalpa seeks to identify and develop new projects
and/or acquisitions on its extensive land holding or within the region, which is prospective for gold,
nickel and base metals.

Catalpa has a sound Resource base at Edna May with significant upside to grow resources and
reserves and move towards production. With a buoyant outlook on the gold price, the Company’s
Board believes that Catalpa Resources presents a sound investment opportunity with significant
upside potential.

Catalpa Resources has adopted best practice standards across all its operating activities,
including its social, health and safety, environmental management and corporate governance
functions.

				
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