QUARTERLY REPORT Quarter ended 30 June 2007

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MAJOR DEVELOPMENTS At Mary Kathleen Goldsearch is working towards having ‘Low Impact Exploration Only' conditions removed from key tenements. At Mary Kathleen a number of regional targets are emerging as potential drill targets. At Mount Wellington recent re-evaluation of the project area suggests the potential for large magmatic-related ore body styles. A number of geophysical targets have been identified on the basis of this potential. Negotiations are near completion on the Musgrave East joint venture.

QUEENSLAND

MARY KATHLEEN PROJECT (Goldsearch earning 75%)
(uranium, copper, gold)

The Mary Kathleen Project is a joint venture between Goldsearch Limited and Central West Gold NL.

Goldsearch is currently earning a 75% interest in the project.

Goldsearch is currently going through the expedited Native Title process with respect to both EPM 14019 and EPM 14022 in order to have a ‘Low Impact Exploration Only' condition removed from both permits. Both EPMs were granted as Low Impact Exploration tenements under Queensland's Alternative State Procedures which were in place at the time of granting.


Elaine Dorothy target

The Elaine Dorothy prospect is located approximately 6 kilometres south of the Mary Kathleen Uranium Mine which has produced a total of 8,882 tonnes of uranium between 1958 and 1963 and a second phase between 1975 and 1982.

Further drilling currently planned for the Elaine Dorothy target has been postponed until ‘Low Impact Exploration Only' conditions are removed from EPM 14022. A program of surface geophysics is currently scheduled for August to assist with future drill targeting.

Elaine Dorothy Zone, surface projection of drill holes.



Elaine Dorothy drill section 398250mE.

MacGregor target

Further drilling currently planned for the MacGregor target has been postponed until Low Impact conditions are removed from EPM 14019. In the meantime surface geochemistry or scintillometer sampling is planned to further evaluate the target area.


Pindora target

Reconnaissance geochemistry has been completed over the Pindora target area. At Pindora, a number of shallow open-cut mines have exploited oxide copper mineralisation over a strike length of five kilometres. Historical reports suggest that the copper mineralisation was associated with significant levels of gold mineralisation. The Pindora target is located approximately three kilometres east of the Kalman (Cu, Au, Mo, U) discovery currently being evaluated by Kings Minerals NL. Pindora is located on a subparallel, secondary structure to the Pilgrim Fault. The Pilgrim Fault is a major terrane bounding fault in the Mount Isa Province, the Kalman deposit is located immediately adjacent to the Pilgrim Fault. Results from the geochemical sampling are yet to be received from the laboratory.

A program of surface geophysics is also planned for August in order to assist future drill targeting.

Fountain Springs Fault Zone.

Hardway target

Reconnaissance geochemistry has been completed over the Hardway target area. At Hardway, a number of shallow open-cut mines have exploited oxide copper mineralisation associated with a wide zone of shearing along the margin of the Hardway granite. Mineralisation is hosted by dolerite and Corrella Formation calc-silicate rocks. This mafic shear-hosted style has similar characteristics to the Rocklands/Double Oxide deposit currently being evaluated by Cudeco Limited and located approximately 49 kilometres to the east. Assay results from the geochemical sampling are yet to be received from the laboratory. A program of surface geophysics is also planned for August in order to assist future drill targeting.

Geochemical sampling.

Mary Kathleen Project - Southern target areas.

DUCK CREEK (95% Goldsearch)
(copper, gold, silver)

Goldsearch has signed a joint venture agreement with North Queensland Mines Pty Ltd, now Queensland Mining Corporation Limited (QMC) on exploration permit EPM 13336 and exploration permit application EPMA 15718 whereby QMC can earn 70% and 75% respectively by spending $750,000 over the first two years to 31 May 2008 and issuing Goldsearch the following shares and options:-

• One million fully paid QMC shares on the signing of the agreement plus two million options over QMC shares exercisable at 50 cents each at any time until their expiry on 30 November 2009.
• If at any time prior to 30 June 2012 QMC establishes a proven JORC resource equal to 2,000,000 tonnes of ore with an equivalent grade of 2% copper then QMC will issue Goldsearch with a further 1,000,000 options exercisable at 50 cents each for two years following the date of their issue.

In addition, if QMC establishes a proven JORC resource equal to 5,000,000 tonnes of ore with an equivalent grade of 2% copper then QMC will issue Goldsearch with a further 2,000,000 options exercisable at 50 cents each for two years following the date of their issue.

Goldsearch at all times retains a 25% interest in the tenements.

VICTORIA

MOUNT WELLINGTON PROJECT (100% Goldsearch)
(gold, silver, copper)

Work program approvals for exploration on EL 4843 were granted in late April 2007 and existing exploration tracks were re-established to enable vehicle access into the tenement area. Detailed geological mapping was undertaken and diamond drill core from historical drilling is currently being examined in order to enable a reliable three dimensional interpretation of the tenement area.

Mount Wellington regional geology and main prospects

A re-evaluation of previous exploration results and mineralisation styles within in the project area suggests the extensive zones of alteration and gold, silver and base metal mineralisation is likely magmatic-related and not of volcanogenic origin as previously believed. Past exploration programs are being considered in light of this and a number of geophysical targets have been identified for possible drill testing.

Geophysical and drilling programs have now been postponed until after the winter months.

Oblique drill section Mount Wellington, Hill 800 Prospect

SANDY CREEK PROJECT (100% Goldsearch)
(gold)

A small program of three diamond drill holes to test the historical mining area at O'Dell's was unsuccessful in testing the target and was recently abandoned due to poor progress and bad weather conditions. Two holes failed to reach target depth due to slow drilling conditions as a result of hard, abrasive ground conditions associated with quartz-rich granite country rock. A third hole was abandoned at 16 metres after being unable to continue following intersection with large cavity presumed to be an abandoned stope. Goldsearch is currently re-assessing the potential of the project and considering an alternative drilling strategy involving RC percussion drilling.


ST ARNAUD PROJECT (Goldsearch diluting to 25%)
(gold)
During the quarter Goldsearch signed a Deed of Assignment with Rex Minerals in relation to EL 4669.
Previously this tenement was in joint venture with Sedimentary Holdings. Rex Minerals has taken over Sedimentary's obligations under the existing joint venture.

SOUTH AUSTRALIA

MUSGRAVE BLOCK SOUTH AUSTRALIA - (49% Goldsearch, 51% Independence Group - BHP Billiton earning 65%)
(nickel, copper, gold)

Negotiations with the Anangu Pintjantjatjara Yankunytjatjara for exploration licence applications ELA 198/96 and ELA 343/96 are near completion and tenements are expected to be granted shortly.

OPTION EXERCISE

It is pleasing to note the increasing number of shareholders exercising their 5 cent 31 October 2007 options. It is also pleasing to note that the Company's Exploration Manager, Mr Heath Hellewell, exercised 800,000 of his Employee Option Plan options at 5.5 cents each prior to their expiry on 30 June 2007.




STATEMENT
Technical information contained in this report was prepared by the Company's Exploration Manager Mr Heath Hellewell and accurately reflects the information compiled by him. Mr Hellewell has 15 years of relevant experience, and qualifies as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

Mr Hellewell consents to the inclusion in this report of the technical information prepared by him in the form and context in which it appears.