15 October 2009

CONTINUED DRILLING SUCCESS AT EDNA MAY GOLD PROJECT HIGHLIGHTS EDNA MAY

� Resource definition drilling program near completion at the Edna May

Gold Project to expand and upgrade the Mineral Resource and Ore

Reserve

� Results to date confirm robustness of the geological interpretation and

Mineral Resource estimate

� Revised Ore Reserve estimate planned for December

� Gold Mineralisation remains open at depth

GOLDEN POINT � Strong anomalism and visible gold confirm prospectivity of Golden Point

mineralisation

Perth-based gold developer, Catalpa Resources (ASX:CAH), today reported

that drilling at its Edna May deposit has returned consistent broad mineralised

intersections.

Managing Director, Bruce McFadzean said the results continue to underpin the

robustness of the Mineral Resource for open pit mining at the Edna May Gold

Project.

“Sixteen RC and diamond drill holes for 4,066 metres have been completed as

part of a confirmation drilling program designed to increase confidence in the

Mineral Resource at depth with a view to upgrading Inferred Resources within

the open pit design to Indicated.”

“The broad drill intercepts are in-line with modelled grades for open pit mining

and also demonstrate the occurrence of the high grade reef-hosted gold lodes

within the broader stockwork mineralisation. The high grade reefs form the

basis of a potential underground mining operation to be developed concurrent

with open pit mining.”

“The vertical continuity of gold mineralisation is excellent and remains open at

depth.”

“In addition to the continued resource definition drilling of the Edna May

deposit, two holes (EMD011 & EMD013) were extended into the footwall

ASX Code: CAH Total number of shares on issue:

1,171,785,846

Share Price Current:

$0.155 (14 October 2009)

12 month range:

$0.17 (high) - $0.021(low)

Board of Directors

Mr John Rowe: Non Exec Chairman

Mr Bruce McFadzean: Managing Director

Mr Murray Pollock: Non Exec Director

Mr Barry Sullivan: Non Exec Director

Mr Nigel Johnson: Non Exec Director

Mr Graham Anderson: Company Secretary

Mr Leonard Math: Company Secretary

Senior Management

Erik Palmbachs CFO

Stuart Pether GM Operations

Nick Winnall Exploration Manager

Adrian Pelliccia Geology Manager

Major Shareholders

Auselect Limited 46.86%

HSBC Custody Nominees 6.65%

National Nominees Limited 3.36%

ANZ Nominees Limited 3.19%

Reneagle Pl 1.62%

Goldrich Holdings Pty Ltd 1.37%

Nefco Nominees Pty 1.14%

Bennett Robert W + D G 0.92%

Springtide Capital 0.85%

Prospect Cust Ltd 0.78% For

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volcanics to scope depth extensions of the Golden Point Gneiss.”

“These holes have identified a broadening of the favourable Golden Point Gneiss host lithology at depth and

returned anomalous mineralisation, including quartz reef intercepts with visible gold that require further follow

up. Significantly, the mineralised intercepts are in close proximity, approximately 30 metres from the Edna May

footwall and could present a readily accessible resource by either open pit or via existing underground

infrastructure.”

“This is an extremely encouraging result and elevates the Golden Point Gneiss as a priority near mine

exploration target.”

“A revised Ore Reserve, including the current drill results and updated gold price assumptions, is planned to be

finalised and reported before the end of the year.”

Assays received to date (0.5 g/t cut off) are tabulated below;

North East Rl

EMD001 9573 11474 1340 -60 180 TBA TBA TBA TBA

EMD002 9596 11495 1341 -60 180 TBA TBA TBA TBA

EMD003 9617 11525 1341 -60 180 231.95 273.50 41.55 1.50 Edna May

EMD004 9605 11561 1341 -60 180 210.00 280.10 70.10 1.40 Edna May

EMD005 9606 11600 1340 -60 180 229.14 237.50 8.36 0.74 Edna May

EMD006 9700 11668 1338 -60 180 182.90 236.30 53.40 3.02 Edna May

235.10 236.30 1.20 76.00 Edna May

EMD007 9633 11750 1337 -60 180 110.50 134.85 24.35 1.08 Edna May

157.70 247.00 89.30 0.87 Edna May

EMD008 9721 11800 1340 -60 180 147.70 170.50 22.80 0.98 Edna May

199.00 243.85 44.85 1.08 Edna May

EMD009 9708 11825 1340 -60 180 143.89 188.13 44.24 0.60 Edna May

218.90 227.68 8.78 1.13 Edna May

EMD010 9707 11850 1339 -60 180 158.45 162.45 4.00 0.93 Edna May

EMD011 9703 11875 1340 -60 180 147.80 169.75 21.95 0.55 Edna May

231.40 233.65 2.25 1.78 Edna May

EMD012 9673 12053 1338 -60 180 116.85 120.50 3.65 1.70 Edna May

169.25 172.25 3.00 1.89 Edna May

EMD013 9698 12075 1344 -60 180 155.75 166.80 11.05 0.72 Edna May

EMD014 9653 12122 1342 -60 180 108.80 126.49 17.69 1.09 Edna May

EMRC001 9440 11375 1360 -60 180 5.00 18.00 13.00 0.95 Edna May

57.00 58.00 1.00 1.39 Edna May

EMRC002 9525 11425 1341 -60 180 45.00 57.00 12.00 2.43 Edna May

68.00 69.00 1.00 26.30 Edna May

92.00 95.00 3.00 1.13 Edna May

Including

and

and

Au (g/t)Local Grid Depth

To

Significant Drill Hole Intersections - Edna May

Hole ID DipAzimuth -

Local

Depth

From

Downhole

Interval

(m)

and

Ore Surface

and

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The nature of the Edna May gold deposit is typified by broad low grade gold mineralisation hosting multiple

higher grade quartz reef structures. The quartz reefs can demonstrate extremely high gold grades with a large

proportion of visible particulate gold that can display significant variance over relatively short distances.

Figure 1 Drill location plan

GOLDEN POINT

In addition to the continued resource definition of the Edna May deposit, two holes (EMD011 & EMD013) were

extended into the footwall volcanics to scope depth extensions of the Golden Point Gneiss, a favourable

lithology analogous to the Edna May Gneiss. Interestingly, the Golden Point mineralisation strikes sub-parallel to

the Edna May mineralisation with approximately 30 metres separating the two mineralised units. Both holes

intersected the prospective tonalitic unit and returned anomalous mineralisation, including quartz reef

intercepts with visible gold requiring further follow up.

Significant intercepts through Golden Point are tabled below.

North East Rl

EMD011 9703 11875 1340 -60 180 268.80 271.00 2.20 1.70 Golden Point

321.30 326.80 5.50 2.22 Golden Point

EMD013 9698 12075 1344 -60 180 239.25 240.25 1.00 6.83 Golden Point

267.85 275.40 7.55 4.96 Golden Point

267.85 268.40 0.55 64.00 Golden Point

310.10 312.70 2.60 1.84 Golden Pointand

and

Including

Au (g/t)Local Grid Depth

To

Significant Drill Hole Intersections - Golden Point

Hole ID DipAzimuth -

Local

Depth

From

Downhole

Interval

(m)

Ore Surface

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Figure 2 Schematic section depicting depth extensions to Golden Point Mineralisation

Figure 3 Visible gold identified at Golden Point

Notes

1 Assaying conducted by ALS Laboratories, Perth using a 1kg Leachwell digest 2 Reference standards, field duplicates and blank samples are routinely inserted and quality control samples are routinely

monitored. 3 No cutting of grades has been applied.

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Competent Person Statement The information in this report has been compiled by Mr Adrian Pelliccia (Manager Geology), who is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM)and a full-time employee of Catalpa Resources Limited. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Pelliccia consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

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

ABOUT CATALPA RESOURCES

Perth-based Catalpa Resources Limited (ASX: CAH) is on the cusp of a new phase of development,

following the successful raising of more than A$106M in debt and equity to advance its A$92M

Edna May Gold Project to production by July 2010.

As part of the Edna May finance facility, Catalpa has sold forward 352,317 ounces of gold at an

exceptional price of A$1,557.50 per ounce.

Catalpa plans to utilise Edna May’s solid annual cash operating margins to fund its growth and

become Australia’s next mid tier gold producer.

In keeping with this strategy, Catalpa and its largest shareholder, Lion Selection Limited (ASX:LST),

signed a Merger Implementation Agreement in June 2009 to bring together Lion Selection’s 47%

shareholding in Catalpa’s 100% owned and operated 100 000 ounces pa Edna May Gold Project in

Western Australia and Lion Selection’s 30% stake in the Newcrest managed, 100 000 ounces pa

Cracow Gold Gold Project in Queensland, under Catalpa’s experienced management team. As part

of the merger, Catalpa will also acquire a pre-emptive right over Newcrest’s 70% stake in Cracow.

Following implementation of the merger, expected in the December quarter 2009, Catalpa will be

a cashflow positive gold producer from its 30% stake in Cracow. From mid 2010 when production

commences at the Edna May Gold Project Catalpa will produce more than 130 000 ounces pa.

Catalpa has an experienced Board and management team

that is committed to realising a timely production and cash

flow profile at the Edna May Gold Project. With a buoyant

outlook on the gold price, the Board believes that Catalpa

presents a sound investment opportunity with significant

upside potential.

Catalpa has adopted best practice standards across all its

activities, including its social, health and safety,

environmental management and corporate governance

functions.

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