10 March 2009

ANOTHER new gold mineralised zone AT CATALPA?S GREENFINCH RESOURCE

hIGHLIGHTS

?       Third batch of assay results received from the RC drill programme at Catalpa?s Greenfinch Resource

?       Further intercept of a new gold mineralised zone along strike of the Edna May Mineralisation

?       Significant intercepts from third batch of assay results:

GFRC075:    8m @ 6.9 g/t from 41m to 49m (New Zone)

      Including               2m @ 25.6 g/t from 44m to 46m; and

      Including               1m @ 46.9 g/t from 45m to 46m

GFRC081:    1m @ 26.6 g/t from 27m to 28m

GFRC088:    8m @ 2.7 g/t from 20m to 28m

GFRC095:    5m @ 2.6 g/t from 107m to 112m

GFRC100     4m @ 3.2 g/t from 18m to 22m

?       Greenfinch Resource and Reserve update on schedule for April 2009

Catalpa Resources (ASX:CAH), today reported the third batch of assay results from the RC drill programme aimed at extending the existing Greenfinch Resource along strike of the Edna May Resource at its Edna May Gold Project in Western Australia.

Bruce McFadzean, Catalpa Resources Managing Director confirmed  another intercept in a newly identified gold mineralised zone 41m down hole in Hole GFRC075 (8m of 6.9 g/t) is a further significant new zone intercept likely to contribute to improving the existing Greenfinch Resource.

?The assays reported today are further enhancements of the current drill programme?s earlier announced ?New Zones? in addition to infill of the existing Resource.

?We look forward to getting the remaining assays back from the laboratory this month.. We will finalise the geological interpretation in time to meet the Resource modelling schedule before month end.  However, just looking at the results to-date, we have growing confidence in an extension of Edna May?s current 6.3 year life-of-mine,? Mr McFadzean said. 

All holes in the programme have been drilled at -60⁰ to mine grid south.  The results of the third batch of assays are tabled below.

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) 6314 6300

* New Zones

Competent Persons Statement

The exploration and Resource data has been compiled according to the JORC Code for the reporting of Mineral Resources and Ore Reserves by Nick Winnall (Exploration Manager), a full-time employee of Catalpa Resources Limited.  Mr. Winnall is a Member of the Australasian Institute of Mining and Metallurgy (AUSIMM) and 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. Winnall consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

ABOUT CATALPA

Catalpa Resources Limited (ASX: CAH) has finalised a bankable feasibility study to advance its A$92 million Edna May gold Project towards production and is currently finalising project funding.

The Edna May Project is 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.

Catalpa?s mine and processing schedule demonstrate average gold production in excess of 100,000 ounces recovered per annum for a life of mine of more than six years.

In preparation for planned production at Edna May, the Company relocated its 2.8 ? 3.2 Mtpa Big Bell mill to site in 2007.  The process plant has a twelve month construction period scheduled to commence at the completion of project funding.

With its early cash flow profile, Catalpa aims to grow and develop the Company into Australia?s next mid tier gold producer

Notably, the already robust economics of the feasibility exclude further extensions to the project life following the planned release of additional Ore Reserves from Greenfinch.  Greenfinch is the western continuation of the Edna May Gneiss which is undergoing further infill drilling, the early results of which indicate new gold mineralisation zones in close proximity to the Edna May pit. A Greenfinch Resource update and new Reserve is scheduled to be finalised in April 2009.

With 64% of the Edna May Reserve already in the highest confidence, Proven JORC category, Catalpa has a sound Resource base with significant growth potential. This Reserve confidence, in conjunction with a metallurgically uncomplicated and consistent orebody with a recovery rate greater than 91%, makes the Edna May Gold Project an attractive long term opportunity to grow a mid tier gold producer.

Catalpa has amassed a management team with considerable technical, project and operational expertise and has the support of an experienced and innovative Board that is committed to using the continuing strength of the gold price to realise value for Catalpa?s shareholders.

***

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