ASX RELEASE

31 AUGUST 2009

PROPOSED MERGER - UPDATE ON TIMETABLE

Further to the announcement of 5 August, Lion Selection Limited (Lion) (ASX: LST) and Catalpa Resources Limited (Catalpa) (ASX: CAH) today announced a revised indicative timetable for completion of the proposed merger of Catalpa and Lion's gold assets. While the processing of the documentation associated with the merger is taking longer than anticipated, both Catalpa and Lion Selection remain committed to the successful conclusion of the merger process in Q4 2009.

The revised indicative timetable is as follows:

Scheme booklet dispatched                                                                       Early October

Catalpa shareholders meeting to consider share

consolidation and the proposed merger                                               Early November

LST shareholders meeting to consider the Scheme                          Early November

Expected completion                                                                                    Late November

There is no change in any of the terms of the proposed merger, the demerger of Lion Selection Group, the 10? per share cash distribution by Lion or the termination of Lion Manager. The merger has the unanimous support of the directors of both Catalpa and Lion.

The broader market has responded extremely positively to news of the merger. Since announcing the merger implementation agreement, shares in both Catalpa and Lion have risen by more than 30%.

The implied market support for the merger is very encouraging and reflects the opinion of both Catalpa's and Lion's directors, who have indicated their unanimous intention of voting their respective shares in favour of the merger, in the absence of a superior competing proposal.

Lion and Catalpa have agreed to amend the End Date of the Merger Implementation Agreement from 31 October 2009 to 30 November 2009.

Further enquiries:

Bruce McFadzean                            Jane Rose                                            Annette Ellis / Warrick Hazeldine

Managing Director                          Investor Relations Manager        Media Relations

Catalpa Resources Limited          Lion Selection Limited                  Purple Communications

T: +61 8 9321 3088                            T: +61 3 9614 8008                            T: +61 8 6314 6300

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