2002 ANNUAL REPORT - FINANCIALS

STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL PERFORMANCE STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS DIRECTORS' DECLARATION INDEPENDENT AUDIT REPORT STOCK EXCHANGE INFORMATION TOP 20 SHAREHOLDERS

The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board , and the Corporations Act 2001. The financial report has also been prepared on an accrual basis of historical cost and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. The accounting policies have been consistently applied, unless otherwise stated.

(b) Income tax

Tax effect accounting principles have been adopted whereby the income tax expense shown in the profit and loss account is based on the operating profit before income tax adjusted for any permanent differences between taxable and accounting income. Future income tax benefits are not brought to account unless realisation of the asset is assured beyond reasonable doubt. The future income tax benefit relating to tax losses is not carried forward as an asset unless there is virtual certainty of realisation of the benefit.

Income tax on net cumulative timing differences which occur when items are included or allowed for income tax purposes in a different period from that for accounting are shown at the Australian Corporate tax rate of 30% in the provision for deferred income tax and future income tax benefit as applicable.

(c) Property, plant and equipment

Property, plant and equipment are included in the accounts at cost or at independent or directors' valuation less, where applicable, any accumulated depreciation or amortisation.

The carrying value of property, plant and equipment is reviewed annually by the directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the asset's employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts.

All fixed assets, including capitalised leased assets but excluding freehold land, are depreciated over their estimated useful lives to the economic entity. Mining plant and equipment is depreciated in this manner over the estimated life of the relevant mine with due regard to each item's physical life limitations.
The depreciation rates used for each class of asset are:

Depreciation and amortisation charged on fixed assets used in the Company's exploration activities is capitalised as exploration expenditure as it is incurred.

The gain or loss on disposal of all fixed assets, including revalued assets, is determined as the difference between the carrying amount of the asset at the time of disposal and the proceeds of disposal, and is included in operating profit before income tax in the year of disposal. Any realised revaluation increment relating to the disposed asset which is included in the asset revaluation reserve is transferred directly to either capital profits reserve or retained profits in the accounts.

(d) Exploration expenditure and mineral leases

Expenditure incurred on exploration, evaluation and development is accumulated in respect of each identifiable area of interest of the Company. The costs are carried forward provided that:

1. such costs are expected to be recouped by successful development and/or exploitation of the area of interest, or
2. by sale of the area of interest, or
3. exploration and evaluation activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

Should any area of interest be abandoned or considered to be of no value, accumulated expenditure applicable to such area of interest is written off to the profit and loss account in the year in which the decision is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

(e) Leased assets

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the Company, are classified as finance leases and are capitalised and amortised on a straight line basis over the estimated useful life of the asset where it is assumed the Company will obtain ownership of the asset or over the term of the lease. Finance lease payments are allocated between interest expense and reduction of lease liability over the term of the lease. The interest expense is determined by applying the interest rate implicit in the lease to the outstanding lease liability at the beginning of each lease payment period.

Lease payments for operating leases where substantially all the risks and benefits remain with the lessor are charged as expenses in the periods in which they are incurred.

(f) Business undertakings

The Company has certain exploration activities conducted through joint ventures with other parties. The Company's interest in these joint ventures is shown in the balance sheet under the appropriate heading. Details of the interests in the joint venture assets and liabilities are set out in Note 11.

(g) Cash flows

For the purposes of the statement of cash flows, cash includes deposits at call which are readily convertible to cash on hand and which are used in the management function on a day-to-day basis, net of outstanding bank overdrafts.

(h) Earnings per share

1. Basic earnings per share:
   
   Basic earnings per share is determined by dividing the operating profit/ (loss) after income tax by the weighted average number of ordinary shares outstanding during the financial year.
   
   
2. Diluted earnings per share:
   
   Diluted earnings per share adjusts the figures used in determining earnings per share by taking into account amounts unpaid on ordinary shares and any reduction in earnings per share that will probably arise from the exercise of options outstanding during the financial year.
   

(i) Consolidation

The accounts are not consolidated as the directors have decided that such application is of no material consequence.

(j) Restoration, rehabilitation and environmental expenditure

Restoration, rehabilitation and environmental expenditure to be incurred during the production phase of operations is accrued when the need for such expenditure is established, and then written off as part of the costs of production of the mine property concerned. Significant restoration, rehabilitation and environmental expenditure to be incurred subsequent to the cessation of production at each mine property is accrued, in proportion to production, when its extent can be reasonably estimated.

(k) Employee entitlements

Provision is made for the Company's liability for employee entitlements arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been measured at their nominal rate.

Contributions are made by the Company to employee superannuation funds and are charged as expenses when incurred.

(l) Investments

Investments have been brought to account at cost or directors' valuation as noted in the financial statements.

(m) Comparative information

Comparative figures are, where appropriate, reclassified so as to be compatible with the figures presented for the financial year.

	2002	2001
	$	$
2. REVENUE FROM ORDINARY ACTIVITIES
Revenue from operating activities
Interest received	27,657	22,613
Sundry income	-	536
	27,657	23,149
Revenue from non-operating activities

Proceeds from settlement of litigation	-	175,000
Proceeds on disposal of non-current assets	-	298
Sundry income	500	-
	500	175,298
	28,157	198,447
3. LOSS FROM ORDINARY ACTIVITIES BEFORE INCOME TAX
a) Individually significant expenses included in the loss from ordinary activities before income tax.
Provision for diminution in value of investment	358,491	758,840
b) Loss from ordinary activities before income tax has been determined after:
Expenses
Movements in provisions - employee entitlements	(48,508)	27,402
Depreciation of plant and equipment
Plant and equipment	2,129	1,423
Amortisation of capitalised leased assets	9,378	1,672
Total depreciation	11,507	3,095
Rental expense on operating leases	34,136	38,998
Capitalised exploration expenditure written off	103,500	-
Provision for non-recovery of loan	12,500	-

4 -INCOME TAX

Subject to the provisions of the Income Tax Assessment Act, if the Company derives assessable income it will be able to utilise carry-forward tax losses. As at 30 June, 2002, the Company has estimated carry-forward tax losses after adjusting for permanent and timing differences of approximately $12,228,042 (2001:$11,086,612) of which is an income tax benefit of $3,668,413 (2001: $ 3,325,984). The Company has estimated carry-forward capital losses of $141,973 (2001: $141,973) of which income tax benefit of $42,592 (2001:42,592) has not been brought into account.

Certain losses which have been incurred in the course of mining activities are only available for offset against future mining income. Due to the manner and nature of activities giving rise to these carry-forward tax losses, a detailed analysis would be required should the Company return to profits.

The benefit will only be obtained if:

(a)-the Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss to be realised;

(b)-the Company continues to comply with the conditions for deductibility imposed by law; and

(c)-no changes in tax legislation adversely affect the Company in realising the benefit from the deduction of the loss.

	2002 $	2001 $
5 -ACCUMULATED LOSSES
Accumulated losses at the beginning of the year	(16,541,662)	(15,590,751)
Net loss attributable to members of Goldsearch Limited	(885,857)	(950,911)
Accumulated losses at the end of the year	(17,427,519)	(16,541,662)
6. CURRENT ASSETS - RECEIVABLES
Other debtors	-	75,000
Loans receivable	12,500	12,500
Less provision for non-recovery	(12,500)	-
GST receivable	12,391	17,918
	12,391	105,418
7. CURRENT ASSETS - OTHER
Short term bond	18,300	18,300
Prepayments	4,331	8,820
	22,631	27,120
8. NON-CURRENT ASSETS - PROPERTY,
PLANT AND EQUIPMENT
Equipment at cost	42,895	40,586
Accumulated depreciation	(35,144)	(33,015)
	7,751	7,570
Motor vehicle	61,300	61,300
Accumulated depreciation	(61,300)	(51,921)
	-	9,379
Property, plant and equipment	6,950	6,950
Accumulated depreciation	(6,255)	(6,255)
	695	695
Total property, plant and equipment	8,446	17,645

Reconciliation of property, plant & equipment
	Equipment	Leased motor vehicle	Leased property, plant & equipment	Motor vehicle	Property, plant & equipment
2002
Carrying amount at start of year	7,570	9,379	695	-	-
Additions	2,309	-	-	-	-
Disposals	-	-	-	-	-
Transfers	-	(9,379)	(695)	9,379	695
Depreciation	(2,128)	-	-	(9,379)	-
Amortisation	-	-	-	-	-
Carrying amount at end of year	7,751	-	-	-	695
2001
Carrying amount at start of year	7,507	46,227	695	-	-
Additions	5,007	-	-	-	-
Disposals	(1,173)	(20,201)	-	-	-
Depreciation	(3,771)	-	-	-	-
Amortisation	-	(16,647)	-	-	-
Carrying amount at end of year	7,570	9,379	695	-	-

	2002	2001
	$	$
9. NON-CURRENT ASSETS - OTHER FINANCIAL ASSETS
Shares in controlled entities at cost (Note 29)	885	885
Shares in listed companies at cost	96,860	-
Shares in unlisted companies at cost (i)	588,172	520,000
Shares in unlisted companies at cost (iii)	733,491	-
Investment expenditure at cost	-	68,172
Provision for diminution in value of investment (ii)	(588,172)	(588,172)
Provision for diminution in value of investment (iv)	(358,491)	-
	472,745	885
(i) The Company holds a 14.8% (2001 14.8%) interest in Capital Markets Internet Exchange (Capix) Ltd, a company involved in development and supply of corporate treasury, stockbroking and banking software	588,172	520,000
(ii) The directors have fully provided against the investment in Capital Markets Internet Exchange (Capix) Ltd, because it is not possible to ascertain a correct value for the asset at present	(588,172)	(588,172)
(iii) The capitalised expenditure on the Mount Kelly project was $733,491 and during the year this interest was converted to 1,875,000 shares in Reefway Pty Limited.	733,491	-
(iv) The directors have provided $358,491 for diminution in value of the Company's investment in Reefway Pty Limited.	(358,491)	-
Shares in Reefway Pty Limited are carried at cost less the provision for diminution in value. The activities of Reefway Pty Limited consist of mineral exploration and the recovery of this investment is dependent on the future successful mining or realisation of mining assets by that company.
Reconciliation of other financial assets
Carrying amount at start of year	885	580,158
Additions	830,351	8,899
Provisions	(358,491)	(588,172)
Carrying amount at end of year	472,745	885

10. NON-CURRENT ASSETS - EXPLORATION AND INVESTMENT EXPENDITURE
Mining expenditure
Exploration and evaluation expenditure carried forward in respect of mining areas of interest.
Balance at the beginning of the year	3,200,531	2,704,967
Exploration expenditure, at cost	219,933	495,565
	3,420,464	3,200,532
Capitalised exploration expenditure transferred to investments (Note 9(iii) and 10(i))	(733,491)
Capitalised exploration expenditure written off	(103,500)	-
Balance at the end of the year	2,583,473	3,200,532
Depreciation included in exploration expenditure	649	2,346
Mineral exploration is to be amortised when production commences, or written off to the statement of financial performance. The above carrying values do not purport to be the amount receivable by the Company in the event the interests in the mining leases were farmed out or sold, with the recovery of this capitalised exploration cost dependent upon future successful mining or realisation of this asset.
(i) During the year the Company advised Reefway Pty Limited that it would not proceed further with the Mount Kelly venture. In accordance with the agreement with Reefway Pty Limited, the Company surrendered its rights in connection with Mount Kelly and received 1,875,000 shares, representing 9.68% of the issued capital of Reefway Pty Limited. The directors have provided $358,491 for diminution in value of the Company's shareholding in Reefway Pty Limited.
Internet and communication expenditure
Capitalised non-mining internet and communication technology expenditure:
Balance at the beginning of the year	-	70,646
Internet & communication expenditure, at cost	-	100,022
	-	170,668
Provision for diminution in value	-	170,668
Balance at the end of the year	-	-
Expenditure incurred pursuant to an agreement between the Company and VisionGlobal Corporation in connection with a proposed initial public offering of shares by Vision Global Australia was previously capitalised and provided against. It has now been written off.

11-BUSINESS UNDERTAKINGS

a) The Company has entered into an agreement whereby it can earn up to a 75%interest in any consequential exploration licence resulting from seven exploration licence applications held by Allender, Hosking and Le Brun.
Further details of this agreement are included in Note 12(b).

b) The Company has entered into an agreement whereby Independence Gold NL can earn a 51% interest in certain designated exploration tenements held by Goldsearch, by funding twice the statutory annual expenditure commitment assigned to the exploration licence by the issuing authority.

For a two-year period the total expenditure commitment for all exploration licences and applications currently included in the agreement amounts to $5,976,000.
Independence Gold NL must spend a minimum of $2,000,000 before earning an equity in any licence area. At the date of this report Independence Gold NL has not spent the minimum $2,000,000 and accordingly has not earnt an interest in any tenement area.

c) The Company has been advised that Antakirinja Inc, the joint venture partner for ELs 2212 and 2213 does not wish to proceed with this arrangement. The Company now has a 100% (previously 50%) interest in the relevant areas of interest and accordingly this joint venture has ceased to operate.

The Company has included the mining expenditure in the appropriate statement of financial position categories.

Joint venture interest in:

	2002	2001
	$	$
Non-current assets
Exploration expenditure	-	1,022,583
Liabilities	-	-
Contribution to operating loss	-	-

d) The Company has entered into a heads of agreement with Phelps Dodge Australasia Inc ( PDA) in relation to a joint venture to explore the base metal potential of EL 2899 (Hawks Nest). Under the terms of the agreement PDA can earn up to a 70% interest in the tenement by contributing $4,000,000 in exploration expenditure.

12. COMMITMENTS FOR EXPENDITURE

Exploration tenements :

a) South Australia

In order to maintain current rights of tenure to exploration tenements, the Company is required to meet minimum expenditure requirements of the South Australian Mines Department. These obligations are subject to renegotiation upon expiry of the exploration licences or when application for a mining lease is made. These obligations are not provided for in the accounts and are payable as and when they fall due.

Minimum annual expenditure requirements to retain all current rights of tenure in South Australia are $382,000 including $325,000 in respect of joint venture tenements. In addition to current rights to exploration tenements, the company has made application for further exploration tenements. Should all these applications be granted an additional minimum annual expenditure requirement of $1,955,000 would arise, including $245,000 in respect of joint venture tenements.

b) Northern Territory

Under the terms of the farm-in and joint venture agreement with Alexander, Hosking, Le Brun, the Company can earn a 51% equity in any consequential exploration resulting tiom exploration licences ELs 5102, 9443, and 9741, also exploration licence applications ELAs 5702, 5703, 6847 and 9740 by funding exploration for the first ycar of cach licence area. The minimum exploration expcnditure to earn an additional interest of up to 15% by funding further exploration. The granting of exploration commitment for the first year of all seven tenements amounts to $210,000. The Company has the right licences is dependent on negotiations for an access and exploration agreement with the Central Land Council and the traditional owners; and no 'formal expenditure commitment exists until such agrecmenrs arc in place. In addition to the exploration tenements listed above, the Company is pady to applications for further exploration tenements. Should all these applications be granted an additional minimum annual expenditure commitment of $510,000 would arise.

c) Queensland

In order to maintain rights of tenure to explore EPM's 13336 and 13273 a minimum initial annual expenditure of $85,000 and $10,000 respectively is required.

d) Business undertakings

As detailed in Notes 11(b) and 11(d) the Company has entered into arrangements whereby Independence Gold NL and Phelps Dodge Australasia Inc will fund the exploration and expenditure commitments for certain exploration licences and applications.

	NOTE	2002	2001
		$	$
13. COMMITMENTS FOR EXPENDITURE
Finance lease commitments :
Not later than 1 year		-	8,526
Later than 1 year and not later than 5 years		-	-
Later than 5 years		-	-
Minimum lease payments			8,526
Deduct: future finance charges		-	(383)
Total lease liability	15	-	8,142
Operating lease commitments :
Non-cancellable operating leases contracted for
but not capitalised in the accounts
Rental of premises -
Not later than 1 year		32,697	32,697
Later than 1 year and not later than 5 years		5,450	38,147
Later than 5 years		-	-
		38,147	70,844
Exploration expenditure commitments:
In order to maintain current rights of tenure to exploration tenements, the Company is required to perform minimum exploration work to meet the minimum expenditure requirements specified by various State goverments. These obligations are subject to renegotiation when application for a mining lease is made and at other times. These obligations are not provided for in the financial report and are payable:
Not later than 1 year		610,500	785,000
Later than 1 year and not later than 5 years		789,000	415,000
Later than 5 years		133,500	-
		1,533,000	1,200,000
As detailed in Note 12(d) these exploration expenditure commitments are largely funded by existing joint venture arrangments.
	NOTE	2002	2001
		$	$
14. CURRENT LIABILITIES - PAYABLES
Trade creditors		48,099	46,305
Sundry creditors and accruals		24,575	17,868
		72,674	64,173
15. CURRENT LIABILITIES - INTEREST BEARING
Lease liability	13	-	8,142
16. CURRENT LIABILITIES - PROVISIONS
Employee entitlements		9,282	57,790
		9,282	57,790

17. CONTRIBUTED EQUITY
Issued shares :
123,467,479 ordinary fully paid shares at beginning of year (2001: 112,642,479)			17,491,607		16,775,357
12,500,000 ordinary shares issued at a price of 4c each			500,000		-
10,000,000 ordinary shares issued at a price of 5c each			500,000		-
2,225,000 ordinary shares issued at a price of 9c each			-		200,250
8,600,000 ordinary shares with options issued at 6c each			-		516,000
			18,491,607		17,491,607
Issued options			2,745,074		2,745,074
			21,236,681		20,236,681
Movement in issued shares during the year
			Number of		Paid up
Date	Details		shares		capital
					$
1 July, 2001	opening balance		123,467,479		17,491,607
18 September, 2001	ordinary shares issued		12,500,000		500,000
25 January, 2002	ordinary shares issued		10,000,000		500,000
30 June, 2002	closing balance		145,967,479		18,491,607
Movement in share options during the year
Total options granted but not exercised as at 30 June, 2002 are as follows:
Date	Details	Exercise price	Expiry date	Note	Number
1 July, 2001	opening balance - quoted	$0.20	31 July, 2002	18(a)	106,607,369
15 September, 2001	unquoted options issued	$0.15	15 July, 2004		12,000,000
15 September, 2001	unquoted options issued	$0.10	15 July, 2004	18(b)	1,000,000
15 September, 2001	unquoted options issued	$0.20	15 July, 2004	18(b)	1,000,000
15 September, 2001	unquoted options issued	$0.30	15 July, 2004	18(b)	1,000,000
30 June, 2002	closing balance				121,607,369
Uncalled capital :
No calls are outstanding at year end. All issued shares are fully paid.

	NOTE	2002	2001
		$	$
18. EVENTS SUBSEQUENT TO BALANCE DATE
a)On 31 July, 2002 all 106,607,369 quoted share options expired pursuant to the terms of their issue.
b)On 22 August, 2002, following the resignation of the option holder as an employee of the Company, 3,000,000 unquoted options lapsed.
19. REMUNERATION OF DIRECTORS AND EXECUTIVES
Directors' income :
Aggregate amount received, or due and receivable, by directors was:		77,040	92,000
Number of directors whose income was
within the following bands were:		Number	Number
$ 20,000 - $ 29,999		3	2
$ 29,000 - $ 49,999		0	1
Executives' income :
Number of executives whose income was within the following bands were:-
$100,000 - $109,999		1	0
Payments to related parties :
Current directors (i)	24	43,797	163,649
Payments to directors and director related parties have been allocated as :
Payments for exploration (i)		29,949	39,557
Payments for investments in non-mining and internet activities (i)		-	54,213
Payments for administrative and other activities		90,888	161,878
Total payments to directors and director related entities		120,837	255,648
(i) Refer to statement of cash flow.

	2002	2001
	$	$
20. REMUNERATION OF AUDITORS
Amounts received or due and receivable by the auditors for:
Auditing the accounts	18,317	20,861
Other services	2,768	2,129
	21,085	22,990

21. ECONOMIC DEPENDENCY

The Company's principal activities are mineral exploration and investment.

Other than interest derived from funds on deposit the Company does not derive income from any trading activity and is dependent upon the support of shareholders and the market to finance its on-going exploration programme.

22. CONTINGENT LIABILITIES

The directors are not aware of any potential liabilities or claims against the Company as at the date to which these financial statements are made up.

23. CONTINGENT ASSET

The Company holds a first right of refusal over certain mineral tenement applications owned by Rank Geological Services Pty Limited ("RGS"), a company controlled by the Company's former general manager-exploration. During the year the Company agreed to waive this first right of refusal to enable the interests to be sold to a third party. In consideration for agreeing to waive its first right of refusal, and following grant of the tenement applications, the Company was to receive shares in the purchaser and a 1% free carried interest in the tenements through to bankable feasibility. RGS now disputes these arrangements. The Company believes it has an enforceable and binding agreement with RGS and the Company is seeking advice in the matter to enforce its rights.

The directors are not able to place a value on this contingent asset.

24. RELATED PARTY TRANSACTIONS

The names of persons who were directors of the Company at any time during the year are:

J. Landerer, CBE AM
J.M.E. Percival
A.G. Harris

Transactions between related parties are on normal commercial terms and conditions unless otherwise stated.

Mr J.M.E. Percival received consultant fees and travel expenses amounting to $32,512 during the year (2001: $16,052).

Mr A.G. Harris received travel expenses amounting to $1,755 during the year (2001: $11,118).

Mr J. Landerer, CBE AM is a partner of Landerer & Company.
Landerer & Company act as solicitors to the Company.
Charges for services provided during the year amounted to $9,530 (2001: $136,479).

Directors and director-related entities hold directly, or indirectly, or beneficially as at the reporting date the following interests in the Company:

	Ordinary shares		Share options
Current directors	Direct	Indirect	Direct	Indirect
J. Landerer, CBE AM	2,000,000	-	-	3,000,000
A.G. Harris	300,000	-	3,000,000	-
R.B. Leece, AM RFD	-	8,040,900	-	-
J.M.E. Percival	-	900,000		3,000,000

25. STATEMENT OF CASH FLOWS
(a)Reconciliation of cash :
For the purposes of the statement of cash flows, cash includes:
(i) cash on hand and at bank, cash on deposit, net of outstanding bank overdrafts; and
(ii) investments in money market instruments with less than 14 days to maturity.
Cash as at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows:
	2002	2001
Cash at 30 June, 2002 is shown in the statement of financial position as:	$	$
Cash on hand	375	400
Cash at bank	776,657	458,724
Deposits at call	14,400	14,400
	791,432	473,524
(b)Reconciliation statement :
A reconciliation of "net cash (used in)/ provided by operating activities" to "loss from ordinary activities after income tax" is as follows:
Loss from ordinary activities after income tax	(885,857)	(950,911)
Add/(less)
Depreciation	1,479	1,423
Provision for non-recovery of loan	12,500	-
Provision for diminution in value of investments	358,492	758,840
Write-off of capitalised exploration expenditure	103,500	-
Finance lease items -
Amortisation	650	1,672
Profit on sale of fixed assets	-	(299)
Changes in assets and liabilities :
(Increase)/decrease in receivables	85,016	(75,000)
Increase/(decrease) in provisions	(48,508)	45,270
(Increase)/decrease in sundry debtors	359	(25,669)
Increase/(decrease) in trade creditors
and accruals net of exploration expenditure	-	(226,049)
Net cash (used in)/provided by operating activities	(372,369)	(470,723)
The Company does not have any formal loan facilities in place at the date these accounts are made up.

26. EARNINGS PER SHARE	2002	2001
Basic earnings/(loss) per share	(0.64c)	(0.80c)
Weighted average number of ordinary shares outstanding during the year	137,501,726	118,571,315

Options:

As at 30 June, 2002 the Company had on issue 121,607,369 (2001: 106,607,369) options over unissued capital. Refer to Notes 17 and 18 for further details.
As the notional exercise price of these options would increase basic earnings (decrease loss) per share, they have not been considered dilutive.

27. SEGMENT INFORMATION
The Company operates predominantly in Australia. Industry segment information is as follows:
	Revenue	Results	Assets
	2002	2002	2002
Mineral exploration	-	(103,500)	2,583,473
Other investments	-	(358,491)	472,745
Unallocated	28,157	(423,866)	834,900
	28,157	(885,857)	3,891,118
	Revenue	Results	Assets
	2001	2001	2001
Mineral exploration	-	-	3,200,532
Other investments	-	(758,840)	885
Unallocated	198,447	(192,071)	623,707
	198,447	(950,911)	3,825,124

28. FRANKING CREDITS

The Company has no franking credits available.

29. SUBSIDIARIES	Country of incorporation	Percentage owned
Parent entity:
Goldsearch Limited	Australia	-
Subsidiaries of Goldsearch Limited
Caytale Pty Limited (i)	Australia	100%
Chiljill Pty Limited (i)	Australia	100%
GSE Technology Limited (ii)	Australia	100%
Miltonpak Pty Limited (i)	Australia	100%

(i) The above subsidiary companies have no activities other than as holders of exploration rights on certain tenements.

Separate consolidated accounts of the economic entity formed by the Company and these wholly owned subsidiaries have not been prepared on the grounds of immateriality.

(ii) At the request of the Company GSE Technology Limited was de-registered by ASIC on 11 June, 2002.

30. FINANCIAL INSTRUMENTS

(a) Interest rate risk exposure

The Company is exposed to interest rate risk through primary financial assets and financial liabilities. The following table summarises the interest rate risk for the Company, together with the effective weighted average interest rate for each class of financial assets and liabilities.

	Note	2002
		Floating interest rate $	Fixed interest maturing in		Non- interest bearing $
			1 year or less $	over 1 to 5 years $		Total $
Financial assets
Cash	5	719,276	14,400	-	57,756	791,432
Receivables	6	-	-	-	12,391	12,391
Investments - non-listed securities	9	-	-	-	375,885	375,885
Investments - listed securities	9	-	-	-	96,860	96,860
Total financial assets		719,276	14,400	-	542,892	1,276,568
Weighted average interest rate		3.62%	2.85%	0.00%	-
Financial liabilities
Trade and sundry creditors	14	-	-	-	72,674	72,674
Total financial liabilities		-	-	-	72,674	72,674
Weighted average interest rate		-	0.00%	0.00%	-
Net financial assets		719,276	14,400	-	470,218	1,203,894
					2002	2001
					$	$
Reconciliation of net financial assets to net assets:
Net financial assets above					1,203,894	507,512
Non-financial assets and liabilities:
Other assets					22,631	27,120
Property, plant and equipment					8,446	17,645
Capitalised exploration expenditure					2,583,473	3,200,532
Provision for employee entitlements					(9,282)	(57,790)
Net assets per Statement of Financial Position					3,809,162	3,695,018
		2001
	Note	Floating interest rate $	Fixed interest maturing in		Non- interest bearing $
			1 year or less $	over 1 to 5 years $		Total $
Financial assets
Cash		392,860	14,400	-	66,264	473,524
Receivables		-	4,167	8,333	92,918	105,418
Investments - non-listed securities		-	-	-	885	885
Total financial assets		392,860	18,567	8,333	160,067	579,827
Weighted average interest rate		4.38%	4.50%	5.00%	-
Financial liabilities
Trade and sundry creditors	14	-	-	-	64,173	64,173
Lease liabilities	15	-	8,142	-	-	8,142
Total financial liabilities		-	8,142	-	64,173	72,315
Weighted average interest rate		-	10.20%	0.00%	-
Net financial assets		392,860	10,425	8,333	95,894	507,512

(b) Net fair values of financial assets and liabilities

(i) The net fair values of cash and cash equivalents and non-interest bearing monetary financial assets and liabilities approximate their carrying values as disclosed in the statement of financial position and the notes to the financial statements.

(ii) The carrying amounts and estimated net fair values of equity investments approximate their carrying values as disclosed in the statement of financial position and the notes to the financial statements.

(c) Foreign exchange risk exposure

The Company is not exposed to any currency exchange risk through primary financial assets or liabilities or anticipated future transactions.

(d) Credit risk exposure

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the statements of financial position and notes to the financial statements.

The Company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Company.

Loan receivables are secured by a Deed of Charge granted by the borrower in favour of Goldsearch Limited dated 27 August, 1998.

Receivables due from major debtors are not normally secured by collateral, however the credit worthiness of debtors is monitored.

31. REHABILITATION COSTS

No known commitments for rehabilitation costs exist as at the date of preparation of these financial statements.

DIRECTORS' DECLARATION

The directors of Goldsearch Limited declare that:

a) The financial statements and associated notes for the year ended 30 June, 2002 comply with Accounting Standards and other mandatory professional requirements;

b) The financial statements and associated notes for the year ended 30 June, 2002 give a true and fair view of the financial position of the Company as at 30 June, 2002 and the performance of the Company for the year then ended; and

c) In the opinion of the directors:

i) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and

ii) the financial statements and associated notes for the year ended 30 June, 2002 are made out in accordance with the Corporations Act 2001, including sections 296 and 297 thereof.

Made in accordance with a resolution of the directors.

On behalf of the directors


A.G. Harris
Director


J.M.E. Percival
Director


Sydney,
27 September, 2002

INDEPENDENT AUDIT REPORT

A.B.N. 73 006 645 754

Scope

We have audited the financial report for the financial year ended 30 June, 2002, comprising the Directors' Declaration, Statement of Financial Position, Statement of Financial Performance, Statement of Cash Flows and notes to and forming part of the accounts of Goldsearch Limited. The Company's directors are responsible for the financial report. We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the Company.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia and statutory requirements so as to present a view which is consistent with our understanding of the Company's financial position, and performance as represented by the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, the financial report of Goldsearch Limited is in accordance with:

(a) the Corporations Act 2001, including:

(i) giving a true and fair view of the company's financial position as at 30 June, 2002 and of its performance for the year ended on that date; and

(ii) complying with Accounting Standards and the Corporations Regulations 2001; and

(b) other mandatory professional reporting requirements in Australia.

Inherent Uncertainty regarding Exploration Expenditure and Investment in Unlisted Company

Without qualification to the opinion expressed above, attention is drawn to the following matters.

The Company is involved with the conduct of continuing exploration and evaluation procedures in order to assess the existence and economic recoverability of minerals in its areas of interest. In accordance with the Company's accounting policy exploration expenditure of $2,583,473 (30 June, 2001 - $3,200,532) has been carried as a non current asset. The recovery of these exploration costs is uncertain as it is dependent upon the successful development and exploitation, or sale, of the area of interest.

The Company has an investment in an unlisted mining exploration company. The recovery of this investment is uncertain as it is dependant upon the successful development and exploitation, or sale, of that company's mining interests.

Dated this 27th day of September, 2002
Melbourne, Victoria

STOCK EXCHANGE INFORMATION

Statement of quoted securities as at 27 September, 2002

• there are 2,132 shareholders holding a total of 145,967,479 ordinary fully paid shares.
• the twenty largest shareholders between them hold 42.67% of the total shares on issue.
• voting rights are that on a show of hands each member present in person or by proxy or attorney or representative shall have one vote and upon a poll every member so present shall have one vote for every fully paid share held and for each partly paid share held shall have a fraction of a vote pro-rata to the amount paid up on each partly paid share relative to its issue price.

Distribution of quoted shares as at 27 September, 2002

Substantial shareholder voting rights	Total relevant interest	% of total at 27 September, 2002
Cavill Nominees Limited	9,909,500 ordinary shares	6.79
Daniel Ronald Watson	9,710,200 ordinary shares	6.65
Robert Burgess Leece	8,040,900 ordinary shares	5.51

Directors' shareholdings
As at 27 September, 2002 directors of the Company held a relevant interest in the following securities on issue by the Company.

Director	Ordinary shares	Options
J. Landerer CBE AM	2,000,000	3,000,000
A.G. Harris	300,000	3,000,000
R.B. Leece AM	8,040,900	-
J.M.E. Percival	900,000	3,000,000

On-market buy-backs
There is no on-market buy back currently in place.

Restricted securities
There are no restricted securities on issue by the Company.

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