GOLDSEARCH LIMITED

ABN  73  006  645  754  

ASX RELEASE

Wednesday  8  April  2015  

UPDATE NATIONAL HEALTH SERVICES ACQUISITION BY GOLDSEARCH

Level 4

20 Loftus Street Sydney NSW 2000

Ph 02 9241 5999

On  19  March  2015  the  Company  announced  that  it  had  entered  into  an  agreement  to  acquire  all  of  the  issued  shares  in  National  Health  Services  Pty  Limited  ("NHS").  The  acquisition  is  subject  only  to  shareholder  approval  and  compliance  with  the  ASX  Listing  Rules.  GSE  will,  if  required  by  the  ASX  re-­‐comply  to  chapters  1  and  2  of  the  ASX  listing  rules.  

The New Business

NHS  operates  in  the  occupational  medical  sector,  focussing  on  workers  compensation,  which  includes  injury  management,  physiotherapy,  rehabilitation  services,  and  medico  legal  services.  NHS  is  in  the  unique  position  to  expand  its  footprint  nationally  to  meet  the  current  demand  from  its  clients,  which  include  Woolworths,  Aldi,  Coles,  Qantas,  Australia  Post,  Startrack,  TNT,  QBE  and  similar  blue  chip  clients.  The  acquisition  by  the  Company  will  allow  NHS  to  expand  throughout  Australia  and  become  a  market  leader  in  providing  these  services  on  a  national  basis.  

Purchase Price Determined

The  Company  has  agreed  to  purchase  NHS  for  a  purchase  price  of  $7.5  m  by  the  issue  of  new  GSE  shares.  GSE  has  also  agreed  to  pay  the  vendors  of  G&G  $2.1m  of  new  GSE  shares  in  July  
2016,  as  final  consideration  for  G&G  meeting  their  target  EBITDA.  The  acquisition  of  NHS  includes  all  of  the  businesses  of  NHS  including  G&G.  Furthermore,  G&G  has  confirmed  to  NHS  that  it  is  on  track  to  meet  their  target  objectives  for  the  FY2016.  Since  NHS  entered  the  contract  to  acquire  G&G  the  G&G  business  with  the  assistance  of  NHS  sales  and  marketing  
has  expanded  to  include  4  clinics  and  further  clinics  are  planned  for  opening  over  the  coming  
months.    

Independent Expert Appointed

The  Company  has  instructed  Hall  Chadwick  to  prepare  an  Experts  Report  on  the  fairness  and  reasonableness  of  the  acquisition  of  NHS,  which  will  be  included  in  the  Explanatory  Memorandum  with  the  Notice  of  General  Meeting  to  be  sent  to  shareholders  shortly.  

Notice of General Meeting

The  Company  is  preparing  a  Notice  of  a  Special  General  Meeting  ("SGM")  of  the  shareholders  of  the  Company  to  consider  and  vote  on  the  acquisition.  The  proposed  notice  will  include  resolutions  providing  for  the  change  of  the  Company's  name  to  National  Health  Limited,  a  change  of  business  activities,  a  consolidation  of  the  Company's  shares,  approval  of  new  directors  and  other  related  resolutions  together  with  a  resolution  to  refresh  the  Company's  placement  capacity  and  to  approve  any  additional  placements.    

Prospectus

The  Company  will  also  be  required  to  prepare  a  prospectus  to  comply  with  the  ASX  Listing  Rules  and  undertake  a  capital  raising  of  up  to  $5  million  to  allow  the  Company  to  expand  the  NHS  business  footprint  nationally  to  satisfy  existing  client  demand.  
Existing  shareholders  will  be  given  a  priority  to  apply  for  additional  shares  under  the  terms  
of  the  Prospectus.  
The  Board  is  currently  in  discussions  with  a  number  of  brokers  to  have  the  Prospectus  offer  
fully  underwritten.    

Timetable

The  Company  is  seeking  to  complete  the  acquisition  as  soon  as  possible  and  will  keep  all  shareholders  fully  informed  of  the  timetable  and  further  developments.  The  Company  has  prepared  a  draft  timetable  which  provides  for  the  proposed  special  general  meeting  to  approve  the  acquisition  and  funding  in  early  July  2015.  

Peter Ashcroft

Director

Goldsearch Limited