QUARTERLY REPORT quarter ended 30 June 2005

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HIGHLIGHTS Uranium, copper and gold results from four targets at Mary Kathleen in Queensland are encouraging. Positive initial results from follow-up drilling at the Beer and Dawson gold and silver prospect at Yorkeys. Assay results pending. Phase 1 soil geochemical sampling at the Sandy Creek project in Victoria completed with encouraging gold results. Further sampling has confirmed gold anomalies in the Northern Territory Bloods Range tenement EL5701. Follow-up sampling to commence in July.

QUEENSLAND

YORKEYS PROJECT (ML50098, ML3759 and ML3738 - 100% Goldsearch)
(Gold, Silver)

Drilling commenced at the Beer and Dawson prospect at Yorkeys in early June (Figure One). One hole has been completed with encouraging signs of mineralisation in two separate sulphide-bearing silica breccia lodes at 51 to 53 metres and 68 to 70 metres down hole. A number of zones of stockwork mineralisation also occur intermittently between the two lodes. The drilling at Beer and Dawson is targeting positive results from the previous Yorkeys drilling program including intercepts up to 1 metre @ 15.8 g/t gold and 140 g/t silver in drill hole Y009. The most recent hole was positioned approximately 40 metres east of hole Y009 and was designed to intercept the target zone below 30 metres vertical depth.

MARY KATHLEEN PROJECT (EPM14019 and EPM14022 - Goldsearch earning 75%)
(Uranium, Copper, Gold)

Of the thirteen geophysical targets selected for reconnaissance investigation, eight were located and surface rock and geochemical sampling was completed. Samples were assayed for a suite of elements including uranium, copper, gold, other base metals and rare earth elements (REE). Anomalous results were returned from two areas - Anomaly H and Anomaly M. Two additional areas of historical small scale mining which were located close to target areas were also sampled returning encouraging results.

At Anomaly H, sampling of gossanous and calcite rich material in a prospecting pit, coincident with a magnetic target, returned values up to 1.28 g/t gold and 2.63% copper. Sampling over a major linear radiometric anomaly returned one significant assay up to 340ppm uranium with 5340ppm lanthium (REE). It is to be noted that substantial rare earth element (REE) content was recovered accompanying the uranium mineralisation from the original Mary Kathleen uranium mine. This can be regarded as being encouraging for Goldsearch's ongoing exploration.

At Anomaly M, sampling over a part of a 3 to 4 kilometre long linear radiometric feature returned anomalous results from an area of high scintillometer counts. Samples of gossanous material returned values of 490ppm uranium and up to 1.75% copper with elevated zinc.

At the historical Mount Dorothy workings, a strong scintillometer anomaly was mapped out in an area of a limited amount of previous exploration drilling. Samples from an area of minor outcropping copper mineralisation returned values up to 5.33% copper.

At the King Solomon workings, narrow gossanous quartz carbonate veins were intermittently sampled over a distance of 1200 metres. Values up to 8.99% copper were returned associated with weakly anomalous gold.
These preliminary results justify further sampling and a review of historical exploration data in order to further evaluate the four targets highlighted above.


CLONCURRY PROJECT (Duck Creek EPM 13336 - 95% Goldsearch)
(Gold, Copper)

Following the successful completion of Native Title cultural clearance programs Goldsearch is now waiting on rig availability from drilling contractors operating in the area to complete a drilling program. Goldsearch is also tendering for geophysical contractors to complete electro magnetic geophysics over the Columbad magnetic anomaly.

VICTORIA

SANDY CREEK PROJECT (EL4812 - 100% Goldsearch)
(Gold)

A first pass soil sampling program was completed over the principal workings within EL 4812, Sandy Creek. Samples were collected at 20 metre stations on lines spaced on average at 200 metres. Typically three or four lines were completed at each of the five main areas of historic prospecting and mining activity. Assay results are encouraging with significant gold, arsenic and normalised base metal results highlighting the trends of the known mineralised zones and identifying a number of new targets. The peak gold value was 869ppb gold. Further infill sampling to better define potential drill targets within the mineralised trends is proposed.

NORTHERN TERRITORY

BLOODS RANGE (EL5701 - Goldsearch earning 75% (Independence Group earning 51% ofGoldsearch's interest))
(Gold, Copper)

Independence Group NL reported that results from a helicopter-assisted program of surface geochemical sampling to follow up previous geochemical results up to 106ppb gold have been received. A total of 139 geochemical samples and 13 rock chip samples were collected from three separate targets. Samples were collected on a 200 metre by 100 metre grid to infill previous 500 metre by 500 metre spaced sampling. Samples were assayed for gold by both total digest and BLEG techniques along with a suite of pathfinder elements.

An original 106ppb gold BLEG anomaly returned strongly elevated gold to 13.75ppb gold in generally aeolian soil cover in the northwest section of the grid of the southern most target. Although lacking continuity (probably a factor of wind blown sand), there is a strong grouping of BLEG gold results indicating a positive anomaly. Other elevated but lower and patchy BLEG results were also reported throughout the area tested.

The BLEG anomalism appears to be closed off, but this is inconclusive given the lack of continuity. If a lower threshold is used, >1ppb for example, the anomalism has a potential strike of around 1 kilometre.

The results for the total digest gold were generally positive, although the original 93.2ppb gold response did not repeat. Values of 4.2ppb and 3.9ppb are proximal to the BLEG anomalism.

Two areas further to the north did not return, or upgrade, the previous low order gold anomalism with infill sampling to 200 metre by 100 metre.

Heliborne reconnaissance ground truthing and sampling was completed over the main soil and lag geochemical anomalies late in the quarter. Despite widespread sand cover in the area, several rock chip samples were obtained and have been submitted for multi-element analysis. Final results are awaited.

SOUTH AUSTRALIA

MUSGRAVE (DeRose Hill EL2910 - 100% Goldsearch (Independence Group earning 51%)
(Nickel, Copper, Gold)

A 400 metre by 200 metre spaced surface geochemical sampling program comprising -2mm and -75um size fraction samples for a total of 224 samples were collected to test an area of historically reported copper anomalism.

Peak assay values returned comprised gold 4ppb, nickel 33ppm, cobalt 20ppm, chromium 125ppm, copper 178ppm, zinc 69ppm and arsenic 10ppm. Based on the low geochemical results obtained Independence Group has advised that no further work is planned for this tenement.


MUSGRAVE BLOCK (Entry progress report)

During the June quarter, representatives from both Goldsearch and Independence Group met with representatives from the Department of Primary Industry and Resources South Australia in order to determine progress in relation to the large number of tenement applications in the Musgrave Block Anangu Pintjantjatjarra Lands. Outcomes from the meetings were encouraging and indications were that a number of tenement applications held by Goldsearch, and under joint venture with Independence Group, were likely to be the next to be granted. Timing is uncertain as the first licence has just been granted but the Company expects to be in discussion with the relevant interested parties in the December quarter of 2005.


GAWLER CRATON (Hawks Nest EL2899 - 100% Goldsearch)

Red Metal has withdrawn from the joint venture at Hawks Nest. Following assessment of the project Goldsearch has decided to surrender the licence, as there is insufficient evidence to justify further expenditure.

OTHER ACTIVITIES

INVESTMENTS

CopperCo Limited
The Company sold its holding of 5,966,669 shares in CopperCo Limited during the quarter for $94,679.07 or 1.6 cents per share net. The Company also received the final outstanding payment of $89,500 plus interest from CopperCo to finalise the Reefway purchase.


Independence Group NL
150,000 shares in Independence Group NL were sold from the Company's holding of 700,000 shares during the quarter for $201,854.88 or $1.35 net per share leaving a balance of 550,000 shares.


STATEMENT
Technical information contained in this announcement was prepared by Mr Trevor Leahey, Exploration Manager Goldsearch Limited and Mr Heath Hellewell, Consultant, and accurately reflects the information compiled by them. Mr Leahey has in excess of 20 years relevant experience in mineral exploration and mine development, Mr Hellewell has 15 years of relevant experience.

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Consolidated statement of cash flows

Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities

Non-cash financing and investing activities

Financing facilities available
Add notes as necessary for an understanding of the position.

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
2. This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 25 July 2005
(Company secretary)

Print name: P S HEWSON

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
   
   
2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
   
   
3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .
   
   
4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
   
   
5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.