QUARTERLY REPORT Quarter ended 31 March 2007

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MAJOR DEVELOPMENTS Compilation of historical data for the Mary Kathleen Project, highlighted significant drilling results at Elaine Dorothy. Preliminary access approval granted and physical exploration access currently being established at Mount Wellington. Sandy Creek drilling program to commence soon. East Musgrave joint venture agreement finalised with Independence Group and BHP Billiton.

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.

Unfortunately, during the early part of the March 2007 quarter, much of the planned field-based exploration activities were delayed due to particularly heavy seasonal rainfall.

Elaine Dorothy target

As recently announced to the ASX on 11 April 2007, during the March quarter, Goldsearch was able to locate a number of key historical reports which detail drilling programs and results at the Elaine Dorothy prospect completed by previous explorers. The programs, which consisted of both percussion and diamond drilling, were completed in two phases. The first phase was undertaken by Mineral Ventures NL in 1955. The second phase was undertaken in 1978-1979 by Mary Kathleen Uranium Ltd, the operators of the former Mary Kathleen Uranium Mine.

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.

Goldsearch has been able to compile all of this data and confirm in the field the position of a number of the holes in order to accurately position all holes relative to the four holes (MKRC01-04) drilled by Goldsearch in December 2006.

The previous results are considered encouraging as they define a continuous zone of U3O8 mineralisation over a strike length of approximately 500 metres. Better results in the previous drilling include 2.3 metres @ 0.262% U3O8 from 26 metres in hole ED2, 9.5 metres @ 0.036% U3O8 from 13.5 metres in hole ED4 and 2 metres @ 0.134% U3O8 from 100 metres in hole ED11 (Figure One).

Figure One: Elaine Dorothy Zone, surface projection of drill holes.

This zone is open to the north-west and down dip/plunge (Figure Two) and Goldsearch believes
further drilling is required to fully evaluate the potential of this zone as only a limited amount of drilling
appears to have been completed to date, particularly towards the north western end of the system.

Elaine Dorothy - Drill Hole location data

Elaine Dorothy drilling results

* Note U3O8 values are in some cases calculated values based on an element to oxide conversion factor of 1.179.

Figure Two: Elaine Dorothy drill section 398250mE

MacGregor target

During the March quarter further reconnaissance mapping and prospecting in the MacGregor target area defined an apparent structurally controlled zone of oxide copper mineralisation hosted by the prospective black shale sequence. It is proposed to test this zone at depth as part of forthcoming drilling programs.


Regional targets

Reconnaissance exploration was also completed at a number of other targets during the March quarter including the Prince of Wales and Pindora target areas.


Forward programs

Goldsearch currently expects to complete a program of drilling at Mary Kathleen Project during the June 2007 quarter with further drilling scheduled for the September 2007 quarter. The drilling, which is subject to relevant approvals, will be completed at both the MacGregor and Elaine Dorothy targets. First pass exploration activities will also commence at a number of regional targets during the June 2007 quarter.

VICTORIA

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

Figure Three: Mount Wellington regional geology and main prospects

At Mount Wellington, Goldsearch is currently working towards final government approvals from both relevant forestry and minerals sections of the Department of Primary Industries. Preliminary approval to re-establish access tracks has been granted with this work commencing and it is expected that approvals will be finalised in April and exploration activities will commence immediately. These programs include detailed mapping and a program of IP geophysics at the Rhyolite Hill target. Goldsearch hopes to commence drilling at Rhyolite Hill during the June 2007 quarter prior to winter months when access to the area is restricted.

Previous exploration conducted at Rhyolite Hill has identified significant gold and silver mineralisation associated with an extensive precious and base metals alteration system. Better drilling results at Rhyolite Hill by previous explorers are 12.6 metres at 1.01 grams/tonne gold from six metres in hole RCK002 and 32 metres at 27.25 grams/tonne silver and 0.32 grams/tonne gold from 69.5 metres in hole RCK003.

Goldsearch is currently awaiting the outcome of negotiations for an Indigenous Land Use Agreement (ILUA) between the Mineral Council of Australia (Victoria) and native title parties which is relevant to its application for EL 4835. EL 4835 covers the Hill 800 prospect where drilling by previous explorers has returned numerous encouraging drilling results (Figure Four). Goldsearch currently anticipates completion of native title negotiations by the middle of 2007.

Significant drill results Hill 800 Prospect.

Figure Four: Oblique drill section Mount Wellington, Hill 800 Prospect.

The Mount Wellington project covers an area of Cambrian age volcanic rocks in central-eastern Victoria where work by previous explorers has identified a number of areas of encouraging precious and base metal mineralisation. These rocks, and the styles of mineralisation identified, have numerous similarities to the Mount Read metallogenic province of Western Tasmania. Based on these similarities, the Mount Wellington belt has been considered by many to represent geological equivalents to the Mount Read area.


SANDY CREEK PROJECT (100% Goldsearch)
(gold)

Final preparation work for the proposed drilling program to test the high grade O’Dells gold target on EL 4812 has been completed and drilling is now expected to commence within the next week as the arrival on site of the drilling rig has been slightly delayed. The program is planned to test the potential for additional high grade mineralisation to be located, based on the interpreted structural controls of the known mineralisation. Historical production from a number of small mines in the Sandy Creek area in the late 1800’s and early 1900’s is estimated to be 72,000 tonnes at an average grade of 50 grams per tonne gold.

NORTHERN TERRITORY

BLOODS RANGE (Goldsearch earning 70%))
(gold, copper)

During the March 2007 quarter Goldsearch withdrew from the joint venture over EL 5701. Goldsearch still retains various rights over a total of nine exploration licence applications in this region.

SOUTH AUSTRALIA

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

During the March 2007 quarter, and as announced to ASX on the 16 February 2007, Goldsearch finalised the proposed East Musgrave joint venture arrangement with Independence Group and BHP Billiton.

As part of the arrangement, Independence Group was to issue Goldsearch with 200,000 fully paid IGO ordinary shares. The issue of these shares has now been finalised.

Anthropological work has been ongoing over four priority tenement areas and, the joint venture is confident that approvals for exploration access are imminent.


STATEMENT
Technical information contained in this report was prepared by Mr Greg Duncan and Mr Heath Hellewell, Consulting Geologists, who are Members of the Australasian Institute of Mining and Metallurgy and/or Geological Society of Australia, and accurately reflects the information compiled by them. Mr Duncan has in excess of 20 years relevant experience in mineral exploration and mine development, Mr Hellewell has 15 years of relevant experience, and they qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Mr Duncan and Mr Hellewell consent to the inclusion in this report of the matters based on their information in the form and context in which it appears.