ACTIVITY REPORT for the quarter ended 30 September 2007

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MAJOR DEVELOPMENTS At Mary Kathleen Goldsearch is working towards having low impact only exploration conditions removed from key tenements. At Mary Kathleen a number of regional targets are emerging as potential drill targets following the completion of soil geochemical sampling. At Mary Kathleen IP geophysical surveys are currently underway. 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. The first tenements for the East Musgrave Joint Venture are expected to be granted in the coming weeks. During the quarter 23,194,226 of the Company’s quoted options which expire on 31 October 2007 were exercised, raising $1.16 million of additional working capital. Arrangements have been made for the underwriting of the exercise of the remaining 63,868,548 options on issue. This will raise a further $3.19 million in the current quarter.

Goldsearch Limited Project Locations

QUEENSLAND

MARY KATHLEEN PROJECT (Goldsearch 75%, Central West Gold 25%)
(uranium, copper, gold)

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

The joint venture 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 tenements under Queensland’s Alternative State Procedures which were in place at the time of granting.

Mary Kathleen Project Target Locations.

Elaine Dorothy Uranium Target
Further drilling currently planned for the Elaine Dorothy target has been postponed until low impact conditions are removed from EPM 14022. A program of surface IP geophysics is currently underway at Elaine Dorothy. The aim of this survey is to determine whether the mineralised zone has a geophysical signature that could potentially be used to better target future drilling. This information will assist with drill targeting both within the known mineralised trend and in order to potentially define additional drilling targets within the broad hydrothermal alteration system at Elaine Dorothy.

MacGregor Uranium/Copper 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 Copper/Gold Target
Reconnaissance and infill geochemistry is ongoing 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 sub parallel, 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. Geochemical sampling completed to date has defined a zone of anomalous copper geochemistry over 5.7 kilometres, further assay results are currently being awaited for the interpreted extension of this zone to the north. Peak copper values in the minus 2mm soil samples were 5480ppm with a peak gold value of 132ppb.

Currently a program of surface IP geophysics is underway at the Pindora target.

Prince of Wales target
At the Prince of Wales target geochemical sampling has defined a geochemical trend anomalous in copper (up to 1.66%) and weakly anomalous in gold (up to 206ppb) over a strike length of 2.6 kilometres. High lanthanum (REE) is also associated with the copper / gold geochemical trend (up to 740ppm). The target area is located at the junction of the Pilgrim and Fountain Range Fault zones, two of the most significant structures in the central Mt Isa Block, and on the margins of a major granitic intrusive complex.

Previous small scale mining at the Prince of Wales mine produced copper and gold from iron oxide altered Corella Formation rocks and massive iron stones. Two prominent magnetic anomalies underlie the geochemical trend which is also defined by a trend of minor ironstone outcrops. A large mass of hydrothermal iron oxide outcrops immediately south of the tenement area at Mt Phillip. The large mass of hydrothermal iron oxide alteration at nearby Mt Philip is similar to massive zones of hydrothermal iron oxide associated with other large deposits of the IOCG (Iron Oxide Copper Gold) style such as Ernest Henry, Olympic Dam and Prominent Hill.

Currently a program of surface IP geophysics is underway at the Prince of Wales target.

Mary Kathleen Project Areas of Elevated Geochemistry Pindora / Prince of Wales Targets.

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. Peak assay results from geochemical sampling include 0.5% copper and 195ppm cobalt. The zone of elevated copper geochemistry is defined over a strike length of approximately 2km and is open towards the south.

Currently a program of surface IP geophysics is underway at the Hardway target.

DUCK CREEK (Goldsearch diluting to 25% / 30%, QMC Earning 70 / 75%)
(copper, gold, silver)

The Duck Creek project is subject to a joint venture with Queensland Mining Corporation Limited (QMC). QMC has been aggressively building a portfolio of projects targeting significant oxide copper resources in the Cloncurry region.

VICTORIA

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

The Mount Wellington project is located 20 kilometres south-east of the town of Jamieson and 25 kilometres north east of the Woods Point gold mining centre in eastern Victoria. The project consists of granted EL 4843 and application ELA 4835 which cover a combined 183 square kilometres of State Forrest. No field work has been completed at Mt Wellington during the winter months. There are several known mineral occurrences at Mt Wellington. Significant gold (+/- silver and copper) mineralisation has been intercepted in drilling by previous explorers at Hill 800 and Rhyolite Hill.

Goldsearch believes the project has significant potential for large magmatic-related gold and base metal ore deposits and is currently reviewing and prioritising a number of geophysical targets for future drill testing.

SANDY CREEK PROJECT (100% Goldsearch)
(gold)

A program of geological mapping to asses the potential of the Sandy Creek project area is currently scheduled for October.


ST ARNAUD PROJECT (Goldsearch divested)
(gold)

Goldsearch's interest in the St Arnaud project (EL 4669) was transferred to Rex Minerals Ltd who acquired various rights to the tenement from Sedimentary Holdings Limited, Goldsearch's former joint venture partner in EL4669. Consideration for Goldsearch's interest in the tenement was 500,000 ordinary shares in Rex Minerals Ltd and 500,000 options, exercisable at a price of $0.30 on or before 30 June 2011. Rex Minerals recently completed a successful Australian Stock Exchange listing.

SOUTH AUSTRALIA

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

Negotiations with the Anangu Pintjantjatjara Yankunytjatjara for the grant exploration licence applications ELA 198/96 and ELA 343/96 have been completed and tenements are expected to be granted in the next few weeks. Recently drill core from diamond drilling completed at the Wanka Wanka Hill prospect in the 1970’s was located in the South Australian government core yard. A detailed petrological and geochemical study of samples from this core is currently underway.



STATEMENT
Technical information contained in this report was prepared by Mr Heath Hellewell, Consulting Geologists, who is a Member of the Australasian Institute of Mining and Metallurgy and/or Geological Society of Australia, and accurately reflects the information compiled by them. 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 Hellewell consents to the inclusion in this report of the technical information prepared by him in the form and context in which it appears.