ZOONO GROUP LIMITED — Capital/Financing Update 2006

Mar 16, 2006

Level 4 20 Loftus Street SYDNEY NSW 2000

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

gsh/psh/gsh650

17 March 2006

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

Via ASX Online

Number of pages - 1

Dear Sir.

RE: Under-subscriptions to non-renounceable entitlement issue

Pursuant to Appendix 7A of the Listing Rules we advise as follows in relation to the recent underwritten entitlement issue of shares and options offered to the shareholders of Goldsearch Limited which closed on 14 March 2006.

• Valid acceptances were received for a total of 50,933,552 shares and options from 449 shareholders. Allotment is scheduled to take place on Tuesday 21 March 2006 with holding statements to be mailed on Wednesday 22 March. A further notice will be made when this has been completed and the notice will include an updated Appendix 3B report.
• Under-subscriptions for the issue totalled 40,671,122 shares and options being 44.40% of the 91,604,674 shares and options to be issued.
• The under-subscriptions are to be taken up by the underwriters in accordance with the terms $\bullet$ of the underwriting agreements described in the prospectus dated 9 February 2006.

A further notice will be made when the issue of the shares and options to the underwriters has been completed.

For and on behalf of the directors of Goldsearch Limited

P S Hewson Secretary