ZOONO GROUP LIMITED — Capital/Financing Update 2003

May 12, 2003

Level 4 20 Loftus Street SYDNEY NSW 2000

ash/psh/ash568

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

13 May 2003

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

Via ASX Online

No. of pages $-1$

Dear Sir.

Re: Non-renounceable rights issue - acceptances received

We refer to the issue of 36,491,869 shares and options offered to shareholders on a one for four entitlement basis pursuant to the prospectus dated 24 March 2003 and advise that acceptances have been received for a total of 5,413,658 shares. This represents 14.835% of the total shares and options offered. The issue has now closed and the remaining 31,078,211 shares and options, which represent 85.165% of the issue, will be subscribed to by the underwriters.

A further announcement will be made following allotment of the shares and options which is scheduled for Friday 23 May 2003.

For and on behalf of the directors of Goldsearch Limited

P S Hewson Secretary