REVIEW OF OPERATIONS (continued)

BERGSLANGEN JV, SWEDEN

(GOLDSEARCH EARNING 70%)

In May 2008 Goldsearch entered an agreement with Toronto listed Tumi Resources Ltd to earn an interest in a number of prospective base metals areas in Sweden. Goldsearch is earning a 70% interest in three exploration licences which cover two separate target areas approximately 200 kilometres north-west of Stockholm. Under the terms of its joint venture with Tumi Resources, Goldsearch can earn 70% of the projects by spending up to €1 million over three years.

The minimum commitment by Goldsearch was to fund a skyTEM airborne electromagnetic (EM) and magnetic survey. This survey was successfully completed with final results received in September 2008.

The airborne EM survey highlighted significant bedrock conductors in the Jugansbo area where drilling by previous explorers had intercepted best results of 9.2 metres at 222 g/t silver, 7.48% zinc, 2.27% lead from 81.4 metres down-hole and 6.45 metres at 77 g/t silver, 4.31% zinc and 2.66% lead from 99.25 metres.

Goldsearch proposes to complete a detailed IP geophysical survey at the Jugansbo target prior to the end of 2009, with the aim of defining targets for drilling.