IGO LIMITED — Capital/Financing Update 2003

Sep 24, 2003

Level 4 20 Loftus Street SYDNEY NSW 2000

Telephone: (02) 9241 5999 Fax: (02) 9241 5599 email: gold@goldsearch.com.au

gsh/psh/gsh5861

25 September 2003

The Manager Company Announcements Office Australian Stock Exchange Limited Level 4 20 Bridge Street SYDNEY NSW 2000

Via ASX Online

No. of pages $-5$

Dear Sir.

Re: Progress report on Musgrave joint venture

Enclosed for release to the market is a progress report and update on results, ground access and proposed exploration activities for the Musgrave joint venture.

The report is from Independence Gold NL, our joint venture partner and manager of the joint venture.

For and on behalf of the directors of Goldsearch Limited

P S Hewson Secretary

25 September 2003

Mr John Percival Goldsearch Limited Level 4 20 Loftus Street SYDNEY NSW 2000

Dear John,

MUSGRAVE JOINT VENTURE

Independence Gold NL is pleased to provide this update with respect to results, ground access and proposed exploration activities for the Musgrave Joint Venture. Independence is manager of the Joint Venture and is earning 51% of Goldsearch Limited's interest in the tenements.

South Australia (Nickel Sulphide Targets)

A program of follow-up geochemical sampling has firmed up four areas of coherent nickel $+\prime$ cobalt, copper anomalism on De Rose Hill, EL2910 in South Australia (Figure 1). Three of these areas are associated with aeromagnetic features suggesting possible prospective mafic to ultramafic rocks beneath aeolian and alluvial sand cover.

Samples have been collected on a 1km by 0.5km grid, peak nickel values are up to 150ppm in ironstone samples and 95ppm in minus 75 micron soil samples. Anomalies have been defined by a 90ppm nickel threshold in ironstone samples and are up to 5km in strike length; in many cases anomalies remain open along strike. Normalisation of results from ironstone concentrate samples highlights anomalous areas consistent with the raw assay values.

In the south of EL2910 the anomalous zone of nickel (and copper) geochemistry occurs approximately 20km along strike from the Wanka Wanka mafic - ultramafic dyke complex held by the Joint Venture under ELA343/96 (Figure 2). At Wanka Wanka limited previous drilling in the early 1970's by Kennecott intercepted disseminated nickel, copper sulphides in one of three shallow holes drilled into the complex. The nickel, copper sulphide mineralization consisted of up to 5% pyrrhotite-chalcopyrite-pentlandite-pyrite intercepted in troctolite over a downhole width of approximately six metres adjacent to the southern margin of the dyke (Figure 3). The Wanka Wanka dyke is a differentiated mafic to ultramafic dyke complex with mapped dimensions of approximately 15km in length by 150 metres in width. Previous work suggests the dyke consists of multiple fractionated zones representing individual magma pulses and is therefore interpreted as a potential major magma conduit or feeder zone. Recognised rock types range in composition from olivine and pyroxene gabbros, troctolite, peridotite and norite. Aeromagnetics suggests continuations to the system along strike to the north east towards EL2910. The Wanka Wanka Dyke and its possible extensions are considered excellent targets for Jinchuan-style magmatic nickel copper deposits. The world class Jinchuan deposit hosts more than 500 million tonnes of ore grading $1.2\%$ nickel and 0.7% copper.

PO Box 893, South Perth, Western Australia, 6951 Phone: (08) 9367 2755 Facsimile: (08) 9367 3288 Email: contact@independencegold.com.au Website: www.independencegold.com.au

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Further geochemical sampling and a program of ground electromagnetic geophysics over two target areas is scheduled for EL2910 during the December 2003 Ouarter.

Northern Territory (Gold-Copper and Strata-bound Base Metal Targets)

First pass, wide-spaced regional geochemical sampling has been completed over targeted areas of granted EL5702, EL9407 and EL9443. Samples collected on a 4km by 0.5km grid have identified three areas for follow-up work based on ironstone samples assaying up to 0.36ppm silver, 77ppm copper and 79ppm cobalt associated with NeoProterozoic carbonate-rich sediments under extensive sand dune cover.

Following the recent signing of a Deed of Exploration with the Traditional Owners and Central Land Council, granting and final approval of exploration programs is expected for applications EL5701 and EL5703 in the next few weeks. EL5701 and EL5703 cover several high priority exploration targets associated with interpreted high-level felsic intrusions into a rift sequence of bimodal volcanic rocks and sediments. Limited work in the region associated with previous government investigations has returned rock chip assays up to 0.1 $g/t$ gold, 5000 $g/t$ silver and 11% copper.

Further geochemical sampling and geological reconnaissance of EL5701 and EL5703 is scheduled for the December 2003 Quarter.

Imma.

CHRISTOPHER BONWICK Managing Director

Figure 1: Musgrave JV - DeRose Hill nickel surface geochemistry image

Figure 2: Musgrave block gravity image showing the location of Wanka Wanka Hill and DeRose Hill nickel prospects

Figure 3: Wanka Wanka Hill cross-section showing location of disseminated nickel sulphides at base of troctolite unit