27 November 2009

SUPREME COURT APPROVES SCHEME

Catalpa Resources Limited (ASX: CAH), the Perth-based advanced gold developer, today reported the scheme approval by the Supreme Court of Victoria. The approval now paves the way to finalise the merger over the next two weeks as previously communicated. An overwhelming number of Catalpa and Lion shareholders supported the scheme.

Catalpa?s ASX code has reverted to ?CAHDA? whilst the consolidation and merger process continues and will revert back to ?CAH? upon completion.

An office copy of the Court orders approving the scheme will be lodged with the Australian Securities and Investments Commission on 30 November 2009.

MERGER IMPLEMENTATION TIMETABLE

ENDS

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 (open-pit gold) Operations to production by July 2010.

As part of the Edna May finance facility, Catalpa has sold forward 352,316 ounces of gold at an exceptional price of A$1,557 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 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 Resources presents a sound investment opportunity with significant upside potential.

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

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) 6314 6300

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