PREDICTIVE DISCOVERY LIMITED — Annual Report 2021

Sep 22, 2021

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ABN 11 127 171 877

ANNUAL FINANCIAL REPORT

30 JUNE 2021

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877

CORPORATE DIRECTORY

DIRECTORS

AUDITOR

Mr Francis Harper Non-Executive Chairman Mr Andrew Pardey Non-Executive Director Mr Steven Michael Non-Executive Director Mr Paul Roberts Managing Director

PKF Perth Level 4, 35 Havelock Street WEST PERTH WA 6005

Company Secretary Mr Ian Hobson

REGISTERED OFFICE

Suite 8 110 Hay Street SUBIACO WA 6000 Telephone: +61 8 6143 1840 Fax : +61 8 9321 4692 Email : info@predictivediscovery.com Website : www.predictivediscovery.com

POSTAL ADDRESS

PO Box 1710 WEST PERTH WA 6872

SHARE REGISTRY

Link Market Services Limited Level 4, 152 St Georges Terrace PERTH WA 6000 Telephone: +61 8 9211 6670 Email : info@linkmarketservices.com.au

ASX CODE PDI

CONTENTS

CONTENTS
DIRECTORS’ REPORT	3
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	15
STATEMENT OF FINANCIAL POSITION	16
STATEMENT OF CHANGES IN EQUITY	17
STATEMENT OF CASH FLOWS	18
NOTES TO THE FINANCIAL STATEMENTS	19
DIRECTORS’ DECLARATION	44
INDEPENDENT AUDITOR’S REPORT	45
AUDITOR’S INDEPENDENCE DECLARATION	50

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877

DIRECTORS’ REPORT

Predictive Discovery Limited (the “Company” or “Predictive”) is a public company incorporated and domiciled in Australia and listed on the Australian Securities Exchange.

The directors of the Company present their report on the Group, which comprises Predictive Discovery Limited and its controlled entities, for the year ended 30 June 2021.

The names of the directors in office at any time during, or since the end of the year are:

NAMES POSITION

Mr Francis Harper Non-Executive Chairman (Appointed 22 March 2021) Mr Paul Roberts Managing Director Mr Steven Michael Non-Executive Director Mr Andrew Pardey Non-Executive Director (Appointed 22 March 2021) Mr Phillip Jackson Non-Executive Chairman (Resigned 22 March 2021)

The directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

COMPANY SECRETARY

Mr Ian Hobson – B. Bus FCA ACIS MAICD

Mr Hobson is a Fellow Chartered Accountant and Chartered Secretary with 15 years of experience as Company Secretary of ASX listed companies. Mr Hobson is also Company Secretary of Decmil Group Ltd, Province Resources Ltd, Novatti Group Ltd, Dubber Corporation Ltd and DTI Technologies Ltd.

PRINCIPAL ACTIVITIES

During the financial year, the principal activity of the Group was mineral exploration with the objective of identifying and developing economic reserves in West Africa and Australia.

OPERATING RESULTS FOR THE PERIOD

The consolidated loss of the Group for the financial year after providing for income tax amounted to $6,622,404 (2020: $2,352,700). This was largely from exploration costs, share of losses of associates and the costs of administering the Group to 30 June 2021.

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

REVIEW OF OPERATIONS

In Financial Year 2010-21, Predictive made substantial progress in expanding the potential of the Bankan gold project located in Guinea, as well as simplifying its joint venture ownership structures in Cote D’Ivoire and Burkina Faso.

The Company’s focus was mainly on the Bankan project but with significant work elsewhere on the regional Guinea projects, principally Koundian. Very large drilling programs totalling 75,564m in 2,962 drill holes were completed during the year in Guinea. These comprised 2,737 power auger holes (totalling 45,987m), 155 reverse circulation (RC) holes (totalling 12,203m), 41 diamond drill (DD) holes (totalling 8,971m) and 29 RC-DD holes (totalling 8,403m).

The Bankan RC and DD drilling confirmed the plus-1 km strike extent of oxide gold mineralisation at NE Bankan and demonstrated that both gold discoveries reported in April 2020 – at NE Bankan and Bankan Creek – extended to depth. By 30 June 2021, it was already known that thick, continuous bands of gold mineralisation extended to over 250m below surface in the 700m long “Central Gold Mineralised Zone” at NE Bankan. Since then, higher grade gold intercepts have been obtained (e.g. 44m @ 8.0g/t Au and 49.7m @ 11.7g/t Au ) at similar and greater depths demonstrating the existence of a high-grade (plus-5g/t Au) mineralised core, 100-200m long, and extending to at least 400m vertical depth.

Elsewhere on the Bankan project, drilling at Bankan Creek obtained a series of excellent drill intercepts (e.g. 36m at 3.1g/t Au and 16m @ 4.0g/t Au ), confirming that it would make an important contribution to the maiden Mineral Resource Estimate (on both NE Bankan and Bankan Creek) planned for the September Quarter 2021. Regional exploration, guided by results of a new aeromagnetic survey also yielded very promising results, e.g. on the Argo permit initial power auger drilling obtained impressive initial intercepts, including 12m @ 9.8g/t Au (stopping in gold mineralisation).

Within Guinea but outside of Bankan, initial auger drilling on the Koundian project also obtained strong initial encouragement with a best power auger result of 6m @ 32.0g/t Au (stopping in gold mineralisation).

In Cote D’Ivoire and Burkina Faso, the Company simplified its joint venture arrangements, allowing a greater operational focus on the Guinea projects. In Cote D’Ivoire, the Resolute Joint Venture was converted from a contributing 23.5% equity interest to a free-carried 11% interest plus 10 million performance shares in a transaction with Resolute and Turaco Gold (formerly Manas Resources Ltd). In Burkina Faso, Predictive regained 100% ownership of the former Montage joint venture permits by payment of $250,000 in Predictive shares to Montage; the Company is now seeking joint venture partners on the Burkina Faso projects while it maintains these assets on a low-cost care and maintenance basis.

The impact of COVID-19 on Predictive’s operations has been limited. The Company has continued operations throughout the year with appropriate hygiene protocols in place both in Guinea and Australia. In May-June 2021, the Company conducted rapid antigen tests on all permanent and casual staff in Upper Guinea with no positive cases identified. Subsequently, all staff have been vaccinated, mostly with the Sinovac vaccine, which is the most readily obtainable vaccine in Guinea.

The Company paid close attention to relationships with local communities and Guinea Government agencies during the financial year. A social program focused mainly on the villages located within the Bankan project permit areas grew during 2020-21 with funding of a successful market garden project at Bankan Village and provision of educational supplies to all schools located within the Bankan permits. In addition, Predictive representatives interacted frequently with Mining Ministry staff and the Mining Minister himself as well as with regional administrative staff, including the Kouroussa and Kankan Prefects, all of whom have been most supportive of the Company’s activities.

COMPETENT PERSONS STATEMENT

The exploration results reported herein are based on information compiled by Mr Paul Roberts (Fellow of the Australian Institute of Geoscientists). Mr Roberts is a full-time employee of the company and has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Roberts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Predictive advises that it is not aware of any new information or data that materially affects the exploration results contained in this report.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

DIVIDENDS PAID OR RECOMMENDED

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.

FINANCIAL POSITION

The net assets of the Group have increased by $23,436,847 from 30 June 2020 to 30 June 2021. This net movement is largely due to the following factors:

• $28.7m net capital raising;

• Expenditure on exploring and evaluating the assets in Guinea and Burkina Faso.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

No significant changes in the Group’s state of affairs occurred during the financial year.

EVENTS AFTER THE END OF REPORTING PERIOD

The following events have occurred subsequent to the year ended 30 June 2021:

• (i) Approval of 8,000,000 options on 9 July 2021, which was issued to brokers on 28 July 2021

• (ii) Approval of the 2nd tranche of the May 2021 Placement shares on 9 July 2021, which were issued on 19 July 2021 i.e. 81,580,127 at $0.08 per share. Of this amount, 375,000 shares were issued to Paul Roberts and 187,500 shares were issued to Steven Michael.

• (iii) The company sold 12.5% of their interest in the Cote D’Ivoire tenements to Turaco Gold, an ASX listed company, in exchange for 10,000,000 performance shares issued on 6 August 2021.

• (iv) Conversion of 1,438,471 Listed Options to Shares at $0.018 per share on 17 August 2021.

• (v) On 5 September 2021, there was a Coup D’état in Guinea. While these recent developments are being closely monitored to assess and mitigate impacts to the consolidated entity’s exploration in Guinea, the reason for the coup and early signs from the interim leadership provide reassurance that the impact to the resources sector are likely to be minimal. Therefore, this event does not warrant impairment of the Guinea exploration assets at this time.

The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically, government restrictions may:

• (i) prevent Company staff or contractors from carrying out their exploration activities; or

• (ii) impede the supply of equipment or other exploration consumables required to do the exploration work.

The nature and extent of the effect of the outbreak on the performance of the Company remains unknown. The Company’s share price may be adversely affected in the short to medium term by the economic uncertainty caused by COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may adversely impact the Company’s operations and are likely to be beyond the control of the Company. The ability to freely move people and equipment to and from exploration projects may cause delays or cost increases. The effects of COVID-19 on the Company's share price may also impede the ability to raise capital, or require the Company to issue capital at a discount, which may in turn cause dilution to shareholders.

There has not been any other matter or circumstance arising after the balance date that has significantly affected or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

FUTURE DEVELOPMENTS

Likely developments in the operations of the Group and the expected results of those operations in future financial years have not been included in this report, as the inclusion of such information is likely to result in unreasonable prejudice to the Group.

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

ENVIRONMENTAL ISSUES

The Group’s operations are subject to significant environmental regulations under the Commonwealth and State legislation in Australia and under local legislative authorities in Guinea and Burkina Faso. The Board believes that the Group has adequate systems in place for the management of its environmental regulations and is not aware of a breach of those environmental requirements as they apply to the Group.

INFORMATION ON DIRECTORS

Mr Francis Harper

Qualifications

Experience

Interest in Shares and Options (at the date of this report)

Directorships held in other listed entities during the three years prior to the current year

Non-Executive Chairman

LLB (Hons), BEc

Mr Harper is Chairman and a significant shareholder in Tietto Minerals Limited, which is studying development of the expanding 3 million-ounce Abujar Gold Project in Ivory Coast. Prior to that, from 2009 to 2015, he was a major shareholder and Chairman of West African Resources, which recently commissioned the high-grade Sanbrado gold project in Burkina Faso. He was also Chairman of Vital Metals Ltd until 2020 and is a founding director and co-owner of Blackwood Capital since 2002. Blackwood Capital has raised over $1 billion for ASX resources and industrial companies. Prior to this he was an Executive Director of Rothschild Australia and spent 15 years with the NM Rothschild Group in the US, UK and Australia in resources M&A and project finance advice.

Shareholding: Nil Option holding: 7,000,000

Tietto Minerals Limited

Vital Metals Ltd (resigned August 2020)

Mr Paul Roberts

Qualifications

Experience

Managing Director

BSc, MSc, FAIG, MGSA

Mr Roberts has a long and successful history in mineral exploration management and mine geology both in Australia and overseas. He was responsible for discovery of the Henty gold deposit and major extensions to the St Dizier tin deposit both in Tasmania, as well as resource evaluations of the Kuridala copper gold deposit in North Queensland, the Bongara zinc deposit in Peru and a number of gold deposits in the Cue and Meekatharra districts in Western Australia.

Interest in Shares and Options Shareholding: 5,974,171 Option holding: 12,500,000 (unlisted) (at the date of this report)

Directorships held in other listed entities None during the three years prior to the current year

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

Mr Steven Michael

Non-Executive Director

Qualifications Experience

B. Com, CA, MAICD

Experience Mr Michael has over 25 years’ experience in the global resources sector specialising in corporate finance and equity capital markets. He is currently a Managing Director at FTI Consulting, an independent global business advisory firm. He has previously worked in the natural resources divisions of Macquarie Bank, Rothschild and Royal Bank of Canada. Mr Michael is also a Non-Executive Director of Tanga Resource Limited (ASX: TRL), and was previously Managing Director of ASX-listed Arrow Minerals Limited (ASX: AMD) which held several gold projects in Burkina Faso. Mr Michael is a Member of the Institute of Chartered Accountants in Australia and is a member of the Australian Institute of Company Directors. Interest in Shares and Options Shareholding: 178,580 Option holding: 2,500,000 (at the date of this report) Directorships held in other listed entities Arrow Minerals Limited (Resigned February 2020) during the three years prior to the current Tanga Resources Limited (Appointed September 2020) year Vimy Resources Limited (Appointed August 2021)

Non-Executive Director

Mr Andrew Pardey

BSc

Qualifications Experience Mr Pardey is a geologist with more than 30 years’ experience covering exploration, project development, construction and operation. From 2015 to 2019, Mr Pardey served as the CEO of the $2 billion LSE/TSX-listed Centamin plc, which owns the major (450,000oz pa) Sukari Gold Mine in Egypt. Prior to being CEO of Centamin, Mr Pardey was a major driving force in bringing Sukari into production, having joined during the transition of the operation from construction into production. Earlier in his career, Mr Pardey also held senior management roles at the Anglogold-Ashanti Siguiri Mine and Nordgold Lefa Mine, both of which are located within Guinea’s Siguiri Basin, which also hosts Predictive’s Bankan Project.

Interest in Shares and Options Shareholding: Nil Option holding: 3,500,000 (at the date of this report) Directorships held in other listed entities Marvel Gold Limited (Appointed June 2020) during the three years prior to the current Tanga Resources Limited (Appointed October 2020) year

Mr Phillip Jackson Non-Executive Chairman (resigned 22 March 2021)

Qualification BJuris, LLB, MBA, FAICD Experience Phillip Jackson, the Chairman and a Director of the Company, is a barrister and solicitor with over 25 years legal and international corporate experience, especially in the areas of commercial and contract law, mining law and corporate structuring. He has worked extensively in the Middle East, Asia and the United States of America. In Australia, he was formerly a managing legal counsel for a major international mining company, and in private practice specialised in small to medium resource companies. Phillip was managing region legal counsel: Asia-Pacific for a leading oil services company for 13 years. He was General Counsel for a major international oil and gas company. Phillip has been Chairman of Predictive since December 2014. Phillip is also non-executive Chairman of Xantippe Resources Ltd (“Xantippe”), and Anax Metals Limited and is a non-executive director of Scotgold Resources Limited.

Interest in Shares and Options (at the date of his resignation)

Shareholding: 1,247,834

Option holding: 3,000,000 (unlisted)

Directorships held in other listed entities during the three years prior to the current year

Anax Metals Limited Xantippe Resources Limited Scotgold Resources Limited

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

MEETINGS OF DIRECTORS

During the financial year, 28 meetings / circular resolutions of directors (including committees of directors) were held. Attendances by each director at meetings during the year were as follows:

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Directors' Meetings Circular Resolutions
Director Number eligible to Number attended Number eligible to Number attended
attend attend
Mr Phillip Jackson 6 6 14 13
Mr Paul Roberts 8 8 20 19
Mr Francis Harper 2 2 6 6
Mr Andrew Pardey 2 2 6 6
Mr Steven Michael 8 8 20 19
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INDEMNIFYING OFFICERS OR AUDITORS

The Group has paid premiums to insure directors against liabilities for costs and expenses incurred by them in defending legal proceedings arising from their conduct while acting in the capacity of director of the Group, other than conduct involving a wilful breach of duty in relation to the Group. The terms and conditions of the insurance are confidential and cannot be disclosed.

OPTIONS

At the date of this report, the unissued ordinary shares of Predictive under option, including those options issued during the year and since 30 June 2020 to the date of this report are as follows:

Grant Date	Date of Expiry	Exercise Price	Number under Option
24 December 2019	24 Dec 2022	$0.0180	84,631,485
30 June 2020	30 Jun 2023	$0.1800	7,500,000
09 November 2020	05 May 2023	$0.0986	15,500,000
09 November 2020	05 May 2023	$0.0110	2,500,000
11 December 2020	21 Dec 2023	$0.1120	8,000,000
05 February 2021	05 May 2023	$0.0986	25,000,000
14 May 2021	26 May 2024	$0.0986	10,500,000
09 July 2021	28 Jul 2024	$0.0140	8,000,000
		TOTAL	161,631,485

During the year ended 30 June 2021 1,800,000 ordinary shares of Predictive were issued on the exercise of options granted at $0.018 per share.

PROCEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceeding on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings.

The Group was not a party to any such proceeding during the year.

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

NON-AUDIT SERVICES

The Board of Directors is satisfied that the provision of non-audit services by the auditor during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

Details of the amounts paid to the auditor of the Group for audit and non-audit services provided during the year are set out at note 18.

AUDITOR’S INDEPENDENCE DECLARATION

The auditor’s independence declaration for the year ended 30 June 2021 has been received and can be found on page 50 of the financial report.

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

REMUNERATION REPORT (AUDITED)

REMUNERATION POLICY

It is the policy of the Company that, except in special circumstances, non-executive directors normally be remunerated by way of fixed fees, should not receive a bonus or options and should not be provided with retirement benefits other than statutory superannuation.

The Board, within the limit pre-approved by shareholders, determines fees payable to individual non-executive directors. The remuneration level of any executive director or other senior executive is determined by the Board after taking into consideration levels that apply to similar positions in comparable companies in Australia and taking account of the individual’s possible participation in any equity-based remuneration scheme. The Board may use industry wide data gathered by independent remuneration experts annually as its point of reference. Options or shares issued to any director pursuant to any equity-based remuneration scheme require approval by shareholders prior to their issue. Options or shares granted to senior executives who are not directors are issued by resolution of the Board.

It is the policy of the Company that persons to whom options have been issued should not enter into any transaction in any associated product which is designed to limit the economic risk of participating in unvested entitlements under an equity-based remuneration scheme.

There are no schemes for retirement benefits, other than the payment of the statutory superannuation contribution for non-executive and executive directors.

All executives receive a base salary (which is based on factors such as qualifications, expertise, experience etc.), superannuation and fringe benefits and are eligible for the grant of options under the Employee Option Plan.

The Board policy is to remunerate non-executive directors at market rates for comparable companies for the time, commitment and responsibilities.

The fees payable to individual non-executive directors must be determined by the Board within the aggregate sum of $500,000 per annum provided for under clause 21.1 of the constitution. That aggregate sum can only be increased with the prior approval of the shareholders of the Company at a general meeting. A non-executive director is entitled to a refund of approved expenditure and may also receive payments for consultancy work contracted for and performed separately on the Company’s behalf.

The Company’s policy for determining the nature and amount of emoluments of Board members and senior executives of the Company is as follows:

The remuneration structure for executive officers, including executive directors, is based on a number of factors, including length of service, particular experience of the individual concerned, and overall performance of the Company. The contracts for service between the Company, Directors and executives are on a continuing basis the terms of which are not expected to change in the immediate future.

PERFORMANCE-BASED REMUNERATION

Performance based remuneration for key management personnel is limited to granting of options.

RELATIONSHIP BETWEEN REMUNERATION POLICY AND COMPANY PERFORMANCE

The remuneration policy has been tailored to increase goal congruence between shareholders, directors and executives. The issue of options in past years to the majority of directors and executives is to encourage the alignment of personal and shareholder interests. The company believes this policy will be effective in increasing shareholder wealth.

PERFORMANCE CONDITIONS LINKED TO REMUNERATION

The Group’s remuneration of key management personnel does not include any performance conditions.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT 10

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REMUNERATION REPORT (AUDITED) (continue d )

EMPLOYMENT DETAILS OF MEMBERS OF KEY MANAGEMENT PERSONNEL AND OTHER EXECUTIVES

The following table provides employment details of persons who were, during the financial year, members of key management personnel of the Group, and to the extent different, among the five Group executives or company executives receiving the highest remuneration. The table also illustrates the proportion of remuneration that was performance and non-performance-based and the proportion of remuneration received in the form of options.

		Non-salary
	Position held during the	cash-based	Options/	Fixed
Key Management Personnel	year ended 30 June 2021	incentives	Rights	Salary/Fees	Total
		%	%	%	%
Mr Francis Harper(1)	Non-Executive Chairman	-	64	36	100
Mr Paul Roberts	Managing Director	-	59	41	100
Mr Andrew Pardey(1)	Non-Executive Director	-	57	43	100
Mr Steven Michael	Non-Executive Director	-	61	39	100
Mr Phillip Jackson(2)	Non-Executive Chairman	-	69	31	100
Mr Ian Hobson	Company Secretary	-	29	71	100

(1) Francis Harper and Andrew Pardey were appointed directors on 22 March 2021

(2) Phillip Jackson resigned as a director on 22 March 2021

All non-executive directors are remunerated on a monthly basis with no fixed term or termination benefits.

Paul Roberts, Managing Director, was engaged by way of an employment agreement with an annual salary of $275,000 plus superannuation and 6 months’ termination notice period.

Ian Hobson, who was appointed company secretary on 4 June 2020, was engaged pursuant to a consultancy agreement at $200/hr with no notice period.

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REMUNERATION REPORT (AUDITED) (continue d )

REMUNERATION DETAILS FOR THE YEAR ENDED 30 JUNE 2021

The following table of benefits and payment details, in respect to the financial year, the components of remuneration for each member of the key management personnel of the Group and, to the extent different, the five Group executives and five company executives receiving the highest remuneration:

Table of Benefits and Payments for the Period Ended 30 June 2021

			Pension and
Key Management	Salary,		super-	Shares/		Options/
Personnel	fees and leave	Other	annuation	Units		Rights	Total
	$	$	$	$		$	$
Mr Francis Harper(1)	17,613	-	1,673			33,882	53,168
Mr Paul Roberts	275,000	-	26,125		-	428,848	729,973
Mr Andrew Pardey(1)	12,702	-	-			16,941	29,643
Mr Steven Michael(3)	58,200	-	-		-	150,812	209,012
Mr Philip Jackson(2)	47,177	-	-		-	102,924	150,101
Mr David Kelly(4)	-	-	-		-	-	-
Mr Bruce Waddell(5)	-	-	-		-	-	-
Mr Ian Hobson(6)	103,435	1,670	-		-	43,158	148,263
Total Key Management
Personnel	514,126	1,670	27,798		-	776,565	1,320,160

Table of Benefits and Payments for the Period Ended 30 June 2020

				Pension and
Key Management	Salary,			super-	Shares/		Options/
Personnel	fees and leave	Other		annuation	Units		Rights	Total
	$	$		$	$		$	$
Mr Paul Roberts	205,000		-	-		-	-	205,000
Mr Steven Michael(2)	22,955		-	-		-	-	22,955
Mr Philip Jackson(1)	50,000		-	-		-	-	50,000
Mr David Kelly(3)	14,865		-	1,412		-	-	16,277
Mr Bruce Waddell(4)	117,190		-	-		-	-	117,190
Mr Ian Hobson(5)	12,600		-	-		-	-	12,600
Total Key Management
Personnel	422,610		-	1,412		-	-	424,022

(1) Resigned 22 March 2021

(2) Appointed 18 December 2019

(3) Resigned 18 December 2019

(4) Resigned 4 June 2020

(5) Appointed 4 June 2020

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REMUNERATION REPORT (AUDITED) (continue d )

KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS

The number of options over ordinary shares held by each key management person of the Group during the financial year is as follows:

			Granted as		Other
		Balance at	remunerat-	Expired	changes	Balance at	Vested		Vested and
		beginning of	ion during	during the	during the	end of	during the	Vested and	unexercis-
		period	the period	period	period	period	period	exercisable	able
30	June 2021
Mr	Francis Harper(1)	-	7,000,000	-	-	7,000,000	-	-	-
Mr	Paul Roberts	1,100,000	12,500,000	(1,100,000)	-	12,500,000	12,500,000	12,500,000	-
Mr	Andrew Pardey(1)	-	3,500,000	-	-	3,500,000	-	-	-
Mr	Steven Michael	-	2,500,000	-	-	2,500,000	2,500,000	2,500,000	-
Mr	Philip Jackson(2)	275,000	3,000,000	(275,000)	(3,000,000)	-	-	-	-
Mr	Ian Hobson	-	3,000,000	-	-	3,000,000	3,000,000	3,000,000	-
		1,375,000	31,500,000	(1,375,000)	(3,000,000)	28,500,000	18,000,000	18,000,000	-
(1)	Appointed 22 March	2021 (2) Resigned 22 March		2021
			Granted as		Other
		Balance at	remunerat-	Expired	changes	Balance at	Vested		Vested and
		beginning of	ion during	during the	during the	end of	during the	Vested and	unexercis-
		period	the period	period	period	period	period	exercisable	able
30	June 2020
Mr	Philip Jackson	550,000	-	(275,000)		275,000	-	275,000	-
Mr	Paul Roberts	3,415,021	-	(2,315,021)	-	1,100,000		1,100,000	-
Mr	David Kelly (1)	550,000	-	(275,000)	(275,000)	-	-		-
Mr	Steven Michael(2)	-	-	-	-	-	-	-	-
Mr	Ian Hobson(3)	-	-	-	-	-	-	-	-
Mr	Eric Moore (4)	220,000	-	-	(220,000)	-	-	-	-
Mr	Bruce Waddell (4)	165,500	-	-	(165,500)	-	-	-	-
		4,900,021	-	(2,865,021)	(660,500)	1,375,000	-	1,375,000	-

(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Appointed 4 June 2020, (4) Resigned 4 June 2020

KEY MANAGEMENT PERSONNEL SHAREHOLDINGS

The number of ordinary shares in Predictive Discovery Limited held by each key management person of the Group during the financial year is as follows:

			Granted as	Issued on
	Balance at		remuneration	exercise of	Purchased	Other changes
	beginning of		during the	options during	during the	during the	Balance at end of
	period		period	the period	period	period	period
30 June 2021
Mr Francis Harper(1)		-	-	-	-	-	-
Mr Paul Roberts	5,259,671		-	-	714,500	-	5,974,171
Mr Andrew Pardey(1)		-	-	-	-	-	-
Steven Michael		-	-	-	178,580	-	178,580
Ian Hobson	50,880		-	-	-	-	50,880
Mr Phillip Jackson(2)	533,334		-	-	714,500	(1,247,834)	-
	5,843,885		-	-	1,607,580	(1,247,834)	6,203,631
(1) Appointed 22 March	2021 (2) Resigned	22	March 2021

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

13

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 DIRECTORS’ REPORT

REMUNERATION REPORT (AUDITED) (continue d )

KEY MANAGEMENT PERSONNEL SHAREHOLDINGS (CONTINUED)

30 June 2020 Mr Phillip Jackson Mr Paul Roberts Mr David Kelly(1) Steven Michael(2) Ian Hobson(3) Mr Eric Moore(4) Mr Bruce Waddell(4)	Balance at beginning of period Granted as remuneration during the period Issued on exercise of options during the period Purchased during the period Other changes during the period Balance at end of period 500,000 - - 33,324 - 533,324 3,430,941 - 500,000 1,328,730 - 5,259,671 225,000 - - - (225,000) - - - - - - - - - - 41,280 9,600 50,880 - - - - - - 350,000 - - - (350,000) -
	4,505,941 - 500,000 1,403,334 (565,400) 5,843,875

(1) Resigned 18 December 2019, (2) Appointed 18 December 2019, (3) Appointed 4 June 2020, (4) Resigned 4 June 2020

SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED

The options granted to members of key management personnel during the year were not dependent upon the performance of the Group’s share price as part of their remuneration package.

CASH BONUSES, PERFORMANCE-RELATED BONUSES AND SHARE-BASED PAYMENTS

Options were granted as remuneration during the year to key management personnel and other executives as set out in notes 12 and 16.

END OF THE REMUNERATION REPORT

Paul Roberts Managing Director 22 September 2021

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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

14

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2021

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021
		Consolidated
		2021	2020
	Note	$	$
Finance income		4,865	7,019
Other income		15,037	-
Share based payments		(1,093,054)	-
Administrative payments		(1,132,892)	(900,505)
Depreciation of fixed assets		(60,529)	(2,510)
Foreign exchange gain/(expenses)		86,126	(78,381)
Employee benefits expense		(518,329)	-
Provision for doubtful debts		(426,580)	-
Share of loss in Associates		-	(704,942)
Gain on acquisition of exploration asset	6	683	-
Impairment of exploration expenditure	7	(2,492,232)	-
Gain on deconsolidation of subsidiary		-	10,506
Exploration expenditure pre-right to tenure		(1,005,499)	(683,887)
Loss before income tax		(6,622,404)	(2,352,700)
Income tax expense	2	-	-
Loss from continuing operations		(6,622,404)	(2,352,700)
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange difference on translation of foreign operations	10	948	461
Total comprehensive loss for the year		(6,621,456)	(2,352,239)
Profit attributable to:
Members of the parent entity		(6,621,456)	(2,352,239)
		(6,621,456)	(2,352,239)
Basic loss per share (cents per share)	11	(0.7)	(0.5)
Diluted loss per share (cents per share)	11	(0.7)	(0.5)
The accompanying notes form part of these financial statements

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

15

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

Note Current Assets Cash and cash equivalents 3 Trade and other receivables 4 Total current assets Non-Current Assets Property, plant and equipment 5 Exploration expenditure 6 Investments in associates 7 Total non-current assets Total assets Current Liabilities Trade and other payables 8 Total current liabilities Total liabilities Net Assets Equity Issued capital 9 Reserves 10 Accumulated losses Total Equity

Note Current Assets Cash and cash equivalents 3 Trade and other receivables 4 Total current assets Non-Current Assets Property, plant and equipment 5 Exploration expenditure 6 Investments in associates 7 Total non-current assets Total assets Current Liabilities Trade and other payables 8 Total current liabilities Total liabilities Net Assets Equity Issued capital 9 Reserves 10 Accumulated losses Total Equity

The accompanying notes form part of these financial statements.

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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT 16

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2021

CONSOLIDATED At 1 July 2019 Loss for the year Other comprehensive income Total comprehensive loss for the year Transactions with owners in their capacity as owners: Transfer of expired options Issue of share capital Elimination of share in associate Transaction costs At 30 June 2020 At 1 July 2020 Loss for the year Other comprehensive income Total comprehensive loss for the year Transactions with owners in their capacity as owners: Transfer of expired options Issue of share capital Share-based payments Options issued to brokers Transaction costs At 30 June 2021	Issued Capital Accumulated Losses Foreign Currency Translation Reserve Share Based Payments Reserve Total $ $ $ $ $ 31,491,240 (27,908,576) 43,299 255,333 3,881,296 - (2,352,700) - - (2,352,700) - - 461 - 461
	- (2,352,700) 461 - (2,352,239)
	- 125,003 - (125,003) - 12,138,970 - - - 12,138,970 - - (42,625) (42,625) (770,868) - - - (770,868)
	42,859,342 (30,136,273) 1,135 130,330 12,854,534
	42,859,342 (30,136,273) 1,135 130,330 12,854,534 - (6,622,404) - - (6,622,404) - - 948 - 948
	- (6,622,404) 948 - (6,621,456)
	- 130,330 - (130,330) - 30,835,990 - - - 30,835,990 - - - 1,093,054 1,093,054 - - - 448,573 448,573 (2,319,314) - - - (2,319,314)
	71,376,018 (36,628,347) 2,083 1,541,627 36,291,381

The accompanying notes form part of these financial statements

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

17

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

Note Cash flows from operating activities Interest received Government grant received Payments to suppliers and employees Payments for exploration expenditure Net cash provided by (used in) operating activities 3 Cash flows from investing activities Purchase of property, plant and equipment Cash movement on deconsolidation of subsidiary Net cash provided by (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds on exercise of options Payment for share issue costs Net cash inflow from financing activities Net increase (decrease) in cash held Foreign exchange differences Cash and cash equivalents at beginning of financial period Cash and cash equivalents at end of the financial period 3	Note Cash flows from operating activities Interest received Government grant received Payments to suppliers and employees Payments for exploration expenditure Net cash provided by (used in) operating activities 3 Cash flows from investing activities Purchase of property, plant and equipment Cash movement on deconsolidation of subsidiary Net cash provided by (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds on exercise of options Payment for share issue costs Net cash inflow from financing activities Net increase (decrease) in cash held Foreign exchange differences Cash and cash equivalents at beginning of financial period Cash and cash equivalents at end of the financial period 3
	(14,287,908)
	(347,181) - (347,181) 30,563,590 32,394 (1,870,741) 28,725,243 14,090,154 - 8,639,015 22,729,169

The accompanying notes form part of these financial statements

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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTES TO THE FINANCIAL STATEMENTS

This financial report includes the consolidated financial statements and notes of Predictive Discovery Limited and controlled entities (the “Group”).

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Predictive Discovery Limited is a for-profit company limited by shares, incorporated and domiciled in Australia.

Basis of preparation

The financial report is a general-purpose financial statement that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 .

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected financial assets and financial liabilities.

The financial statements were authorised for issue, in accordance with a resolution of the directors, on 22 September 2021. The directors have the power to amend and re-issue the financial statements.

These financial statements are presented in Australian dollars, rounded to the nearest dollar.

(a) Principles of consolidation

The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Predictive Discovery Limited at the end of the reporting period. A controlled entity is any entity over which Predictive Discovery Limited has the power to govern the financial and operating policies so as to obtain benefits from the entity's activities. Control will generally exist when the parent owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity. In assessing the power to govern, the existence and effect of holdings of actual and potential voting rights are also considered.

Where controlled entities have entered or left the Group during the year, the financial performance of those entities are included only for the period of the year that they were controlled. A list of controlled entities is contained in Note 21 to the financial statements.

As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the consolidated financial statements as well as their results for the year then ended. Where controlled entities have entered (left) the Group during the year, their operating results have been included (excluded) from the date control was obtained (ceased).

In preparing the consolidated financial statements, all inter-Group balances and transactions between entities in the Group have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those adopted by the parent entity.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are shown separately within the Equity section of the consolidated statement of financial position and consolidated statement of comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the original business combination and their share of changes in equity since that date.

Subsidiaries are accounted for in the parent entity at cost.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(a) Principles of consolidation (continued)

Business Combinations

Business combinations occur where an acquirer obtains control over one or more businesses and results in the consolidation of its assets and liabilities.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving entities or businesses under common control. The acquisition method requires that for each business combination one of the combining entities must be identified as the acquirer (i.e., parent entity). The business combination will be accounted for as at the acquisition date, which is the date that control over the acquiree is obtained by the parent entity.

At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited exceptions, the fair value of the identifiable assets acquired and liabilities assumed. In addition, contingent liabilities of the acquiree will be recognised where a present obligation has been incurred and its fair value can be reliably measured.

The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method adopted for the measurement of goodwill will impact on the measurement of any non-controlling interest to be recognised in the acquiree where less than 100% ownership interest is held in the acquiree.

The acquisition date fair value of the consideration transferred for a business combination plus the acquisition date fair value of any previously held equity interest shall form the cost of the investment in the separate financial statements. Consideration may comprise the sum of the assets transferred by the acquirer, liabilities incurred by the acquirer to the former owners of the acquiree and the equity interests issued by the acquirer.

Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive income. Where changes in the value of such equity holdings had previously been recognised in other comprehensive income, such amounts are recycled to profit or loss.

Included in the measurement of consideration transferred is any asset or liability resulting from a contingent consideration arrangement. Any obligation incurred relating to contingent consideration is classified as either a financial liability or equity instrument, depending upon the nature of the arrangement. Rights to refunds of consideration previously paid are recognised as a receivable. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or a liability is remeasured each reporting period to fair value through the statement of comprehensive income unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive income.

Interests in joint arrangements

IFRS defines a joint arrangement as one over which two or more parties have joint control, which is the contractually agreed sharing of control over an arrangement. This exists only when the decisions about the relevant activities (being those that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

(i) Joint operations

A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the arrangement. In relation to its interests in joint operations, the Group recognises its:

• Assets, including its share of any assets held jointly.

• Liabilities, including its share of any liabilities incurred jointly.

• Revenue from the sale of its share of the output arising from the joint operation.

• Share of the revenue from the sale of the output by the joint operation.

• Expenses, including its share of any expenses incurred jointly.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(a) Principles of consolidation (continued)

(ii) Joint ventures

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. The Group’s investment in its joint venture is accounted for using the equity method.

Under the equity method, the investment in the joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment.

The statement of profit or loss and other comprehensive income (OCI) reflects the Group’s share of the results of operations of the joint venture. Any change in OCI of that investee is presented as part of the Group’s OCI. In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the joint venture are eliminated to the extent of the interest in the joint venture.

The aggregate of the Group’s share of profit or loss of the joint venture is shown on the face of the statement of profit or loss and other comprehensive income outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of joint venture.

The financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, then recognises the loss as ‘Share of profit of a joint venture’ in the statement of profit or loss and other comprehensive income. On loss of joint control over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained investment and proceeds from disposal is recognised in the statement of profit or loss.

(iii) Reimbursement of the costs of the operator of the joint arrangement

When the Group, acting as an operator or manager of a joint arrangement, receives reimbursement of direct costs recharged to the joint arrangement, such recharges represent reimbursements of costs that the operator incurred as an agent for the joint arrangement and therefore have no effect on profit or loss. When the Group charges a management fee (based on a fixed percentage of total costs incurred for the year) to cover other general costs incurred in carrying out the activities on behalf of the joint arrangement, it is not acting as an agent. Therefore, the general overhead expenses and the management fee are recognised in the statement of profit or loss and other comprehensive income as an expense and income, respectively.

(b) Revenue recognition

The Group recognises revenue as follows:

Interest

Interest revenue is recognised using the effective interest rate method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue

Other revenue is recognised when it is received or when the right to receive payment is established.

All revenue is stated net of the amount of goods and services tax (GST).

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT 21

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(c) Income Tax

The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses. Current and deferred tax expense (income) is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting period. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(d) Employee Benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Those cashflows are discounted using market yields on corporate bonds with terms to maturity that match the expected timing of cashflows.

Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to be made by The Group in respect of services provided by employees up to reporting date.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(e) Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

The liability for long service leave is recognised in current and non-current liabilities, depending on the unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

(f) Foreign Currency Transactions and Balances

The functional currency of each of the Group's entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity's functional and presentation currency. All other companies within the Group have Australian dollars as their functional currency.

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the consolidated statement of comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the consolidated statement of comprehensive income.

The financial results and position of foreign operations whose functional currency is different from the Group's presentation currency are translated as follows:

• assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;

• income and expenses are translated at average exchange rates for the period; and

• retained earnings are translated at the exchange rates prevailing at the date of the transaction.

Exchange differences arising on translation of foreign operations are transferred directly to the Group's foreign currency translation reserve in the consolidated statement of financial position. These differences are recognised in the consolidated statement of comprehensive income in the period in which the operation is disposed.

(g) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities in the statement of financial position.

(h) Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(h) Investments and other financial assets (continued)

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.

Financial assets at fair value through profit or loss

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.

(i) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable, any accumulated depreciation and impairment losses.

Plant and Equipment

Plant and equipment are measured on the cost basis.

Depreciation

The depreciable amount of all fixed assets is depreciated on a straight-line basis over the asset's useful life to the Group commencing from the time the asset is held ready for use.

Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The estimated useful lives used for each class of depreciable assets are:

Class of Fixed Asset Useful Life Plant and Equipment 2 - 10 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(i) Property, Plant and Equipment ( continued )

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the consolidated statement of comprehensive income.

Property, plant and equipment is derecognised and removed from the consolidated statement of financial position on disposal or when no future economic benefits are expected. Gains and losses from derecognition are measured as the difference between the net disposal proceeds, if any, and the carrying amount and are recognised in profit or loss.

Subsequent costs are included in the property, plant and equipment's carrying value or recognised as a separate asset when it is probable that future economic benefits associated with the item will be realised and the cost of the item can be measured reliably. All other repairs and maintenance are recognised in profit or loss.

Where required by accounting standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.

(j) Exploration and Development Expenditure

Costs Carried Forward

Costs arising from exploration and evaluation activities are carried forward where the rights to tenure for the area of interest are current and such costs are expected to be recouped through successful development, or by sale, or where exploration and evaluation activities have not, at reporting date, reached a stage to allow a reasonable assessment regarding the existence of economically recoverable reserves.

Costs carried forward in respect of an area of interest that is abandoned are written off in the period in which the decision to abandon is made.

Contributions received from third parties in exchange for participating interests in exploration and evaluation tenements (e.g. as part of farm out arrangements) are netted off against the costs carried forward in respect of those tenements in which the third party acquires a participating interest.

(k) Impairment of Assets

At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include considering external sources of information including, dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the consolidated statement of comprehensive income.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset.

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(k) Impairment of Assets (continued)

Non-financial assets, other than inventories, deferred tax assets, assets from employee benefits, investment properties and deferred acquisition costs, are assessed for any indication of impairment at the end of each reporting period. Any indication of impairment requires formal testing of impairment by comparing the carrying amount of the asset to an estimate of the recoverable amount of the asset. An impairment loss is calculated as the amount by which the carrying amount of the asset exceeds the recoverable amount of the asset.

Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment annually regardless of whether there is any indication of impairment.

The recoverable amount is the greater of the asset's fair value less costs to sell and its value in use. The asset's value in use is calculated as the estimated future cash flows discounted to their present value using a pre-tax rate that reflects current market assessments of the time value of money and the risks associated with the asset. Assets that cannot be tested individually for impairment are Grouped together into the smallest group of assets that generates cash inflows (the asset's cash generating unit).

Impairment losses are recognised in profit or loss. Impairment losses are allocated first, to reduce the carrying amount of any goodwill allocated to cash generating units, and then to other assets of the group on a pro rata basis.

Assets other than goodwill are assessed at the end of each reporting period to determine whether previously recognised impairment losses may no longer exist or may have decreased. Impairment losses recognised in prior periods for assets other than goodwill are reversed up to the carrying amounts that would have been determined had no impairment loss been recognised in prior periods.

(l) Associates

Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment.

When the Group's share of losses in an associate equal or exceeds its interest in the associate, including any unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The Group discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

(m) Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Group during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(n) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the consolidated statement of financial position are shown inclusive of GST.

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(o) Earnings Per Share

Basic loss per share is calculated as net loss attributable to members of the Group divided by the weighted average number of ordinary shares. Diluted loss per share is calculated by adjusting the net loss attributable to members of the Group and the number of shares outstanding for the effects of all dilutive potential ordinary shares, which include shares options.

(p) Contributed Equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown as a deduction, net of tax, from the proceeds.

(q) Share-based Payment Transactions

Employees of the Group receive remuneration in the form of share-based payment transactions, whereby employees render services in exchange for equity instruments ("equity settled transactions"). When the goods or services acquired in a sharebased payment transaction do not qualify for recognition as assets, they are recognised as expenses.

The cost of equity settled transactions and the corresponding increase in equity is measured at the fair value of the goods or services acquired. Where the fair value of the goods or services received cannot be reliably estimated, the fair value is determined indirectly by the fair value of the equity instruments using the Black Scholes option valuation technique.

Equity-settled transactions that vest after employees complete a specified period of service are recognised as services are received during the vesting period with a corresponding increase in equity.

(r) Critical Accounting Estimates and Judgements

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group.

Key estimates – Impairment

The Group assesses impairment at the end of each reporting period by evaluating conditions specific to the Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using fair value less cost to sell.

Key judgements – Exploration and Evaluation Expenditure

The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. $15,505,090 has been capitalised as at 30 June 2021 (see note 6). While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded and there are no facts of circumstances that suggest the carrying amounts of the exploration and evaluation assets recognised exceed their recoverable amount.

In assessing the recoverability of the carrying amounts, the Directors have determined that as with similar companies, future capital raisings will be required in order to continue the exploration and development of the company's mining tenements (some subject to an option payment) to achieve a position where they can prove exploration reserves. Should there be no funding available, exploration of the areas of interest may be put on hold. The recoverability of the exploration asset is dependent upon the continued exploration of each area of interest.

Key Judgements – Share-based payment transactions

The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using the Black Scholes method. The related assumptions are detailed in note 21. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(r) Critical Accounting Estimates and Judgements (continued)

Key Judgements - Recoverability of Intercompany Loan

Within non-current assets of the parent entity (see note 23) there is a loan due from the 100% subsidiaries of $17,032,152 is considered fully recoverable. The recoverability of this loan is dependent upon the successful development or sale of exploration assets in Guinea.

Key Judgements - Joint arrangements

Judgement is required to determine when the Group has joint control, which requires an assessment of the relevant activities and when the decisions in relation to those activities require unanimous consent. The Group has determined that the relevant activities for its joint arrangements are those relating to the operating and capital decisions of the arrangement, such as: the approval the capital expenditure programme for each year, and appointing, remunerating and terminating the key management personnel or service providers of the joint arrangement. The considerations made in determining joint control are similar to those necessary to determine control over subsidiaries.

Judgement is also required to classify a joint arrangement. Classifying the arrangement requires the Group to assess their rights and obligations arising from the arrangement. Specifically, it considers:

• The structure of the joint arrangement – whether it is structured through a separate vehicle

• When the arrangement is structured through a separate vehicle, the Group also considers the rights and obligations arising from:

• The legal form of the separate vehicle

• The terms of the contractual arrangement

• Other facts and circumstances (when relevant)

This assessment often requires significant judgement, and a different conclusion on joint control and also whether the arrangement is a JO or a JV, may materially impact the accounting. The Group has a joint arrangement which is structured through a separate vehicle, being a company structure. This structure, and the terms of the contractual arrangement indicate that the Group has rights to the net assets of the arrangement. Given this, the Group then had to assess the other facts and circumstances relating to this arrangement. After undertaking this assessment, there were a number of indicators for both a joint venture classification and a joint operation classification. Significant judgement was therefore required to determine how these factors would be analysed. The final conclusion was that the arrangement was a joint venture.

Key judgements - Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the consolidated entity based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at the reporting date

(s) Adoption of New and Revised Accounting Standards

The Group has adopted all of the new and revised Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these new and revised Accounting Standards and Interpretations has not resulted in a significant or material change to the Group’s accounting policies.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted by the consolidated entity.

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NOTE 2: INCOME TAX

NOTE 2: INCOME TAX
	Consolidated
	2021		2020
	$		$
(a) Income tax expense/benefit
The components of income tax expense/benefit comprise:
Current tax		-	-
Deferred tax		-		-
		-		-
(b) Reconciliation of income tax expense/(benefit) to prima facie tax
payable on accounting profit/(loss)
Operating (loss) before income tax	(6,622,404)		(2,352,700)
Prima facie tax payable at Australian rate of 30% (2020: 30%)	1,986,721		705,810
Adjusted for tax effect of the following amounts:
Taxable/non-deductible items	(1,573,928)		(464,778)
Non-taxable/deductible items	196,447		90,702
Deferred tax expense relating to change in tax rate	(787,628)		(27,646)
Deferred tax benefit relating to over-provision in prior year	(138,099)		-
Income tax expense/(benefit) not brought to account	316,487		(304,089)
Income tax expense	-		-
(c) Deferred tax assets and liabilities not brought to account
The directors estimate that the potential deferred tax assets and liabilities
carried forward but not brought to account at year end at the Australian
corporate tax rate of 25% (2020: 27.5%) are made up as follows:
On income tax account
Carry forward tax losses	7,217,818		7,539,708
Deductible temporary differences	12,666		7,263
	7,230,484		7,546,971

These benefits will only be obtained if:

(i) the group derives future assessable income of a nature and of an amount sufficient to enable the benefits from the deductions for the losses to be realised,

(ii) the group continues to comply with the conditions for deductibility imposed by tax legislation, and

(iii) no changes in tax legislation adversely affect the group in realising the benefit from the deduction for the losses.

NOTE 3(a): CASH AND CASH EQUIVALENTS

		Consolidated
	2021		2020
	$		$
Cash at bank	22,729,169		8,639,015
	22,729,169		8,639,015

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NOTE 3: CASH AND CASH EQUIVALENTS (continued) NOTE 3(b): Reconciliation of loss after income tax to net cash flow from operating activities Operating loss after income tax Non-operating items in loss: Exploration expenditure Non-cash flows in loss: Gain on deregistered entity Gain on acquisition of exploration asset Depreciation Foreign exchange (gains)/losses Provision for doubtful debts Share of loss in associates Impairment of exploration expenditure Capitalised exploration expenditure Share based Payment Movement in assets and liabilities: (Increase)/decrease in receivables Increase/(decrease) in payables Net cash outflow from operating activities NOTE 4: TRADE AND OTHER RECEIVABLES Other receivables NOTE 5: PLANT AND EQUIPMENT Plant and Equipment Accumulated depreciation

2021 $ (6,622,404) - - (683) 60,529 - 426,580 - 2,492,232 (12,707,508) 1,093,054 (533,878) 1,504,170 (14,287,908) 232,836 232,836 399,396 (78,220) 321,176

A reconciliation of the carrying amounts of each class of plant and equipment between the beginning of the current financial year is set out below:

2021 Balance at the beginning of year Additions Depreciation expense Balance at the end of the year 2020 Balance at the beginning of year Additions Depreciation expense Balance at the end of the year	Plant and Equipment $ 34,524 347,181 (60,529) 321,176 21,500 15,534 (2,510) 34,524

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NOTE 6: EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS

Exploration and evaluation expenditure 2021 Balance at beginning of the year Expenditure incurred Expenditure acquired Impairment of capitalised exploration Balance at the end of the year 2020 Balance at beginning of the year Expenditure incurred Expenditure acquired Balance at the end of the year	2021 $ 15,505,090 15,505,090

The Group has capitalised exploration expenditure of $15,505,090 (30 June 2020: $5,048,178). This amount includes costs directly associated with exploration and the purchase of exploration properties. These costs are capitalised as an exploration asset until assessment and / or drilling of the permit is complete and the results have been evaluated. These direct costs include employee remuneration, materials, permit rentals and payments to contractors. The expenditure is carried forward until such a time as the area moves into the development phase, is abandoned or sold. The ultimate recovery of the carrying value of exploration expenditure is dependent upon the successful development and commercial exploitation or, alternatively, sale of the interest in the tenements. The Directors are of the opinion that the exploration expenditure is recoverable for the amount stated in the financial report.

At 30 June 2020, the Group held a 49% interest in Burkina Resources Pty Ltd, Predictive Discovery SARL and Progress Minerals SARL which was fully impaired (please refer to note 7). The Group acquired an additional 51% interest in Burkina Resources Pty Ltd, Predictive Discovery SARL and Progress Minerals SARL on 3 November 2020 for consideration of $240,000 which was settled through a share issue. The Group valued the total assets acquired at acquisition to be $1,394. The gain on acquisition was $683, which was 49% of the net assets on acquisition.

NOTE 7: INVESTMENTS IN ASSOCIATES

During the financial year ended 30 June 2021, the Company acquired additional interests in the companies recognised as associates during the previous financial year. These companies are now subsidiaries of the group (please refer to note 6 and note 21).

Information relating to interest in associates that are material to the Group are set out below:

		Ownership Interest
Name	Country of Incorporation	2021 2020
Predictive Discovery SARL	Burkina Faso	100% 49%
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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 7: INVESTMENTS IN ASSOCIATES ( continued )

Summarized Financial Information – Predictive Discovery SARL

Summarised statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Predictive Share of Net Assets Summarised statement of profit or loss and other comprehensive income Revenue Expenses Loss before income tax Income tax expense Loss after income tax Other comprehensive income Total comprehensive loss Reconciliation of the Group’s carrying amount Opening carrying amount Share of loss after income tax Share of movement in foreign exchange translation reserve Closing carrying amount

2021 $ - - - - - - - - - - - - - - - -

Immaterial Associates

Information relating to interest in associates that are material to the Group are set out below:

		Ownership	Interest
Name	Country of Incorporation	2021	2020
Burkina Resources Pty Ltd	Australia	100%	49%
Burkina Resources SARL	Burkina Faso	100%	49%
Predictive Discovery Cote D’Ivoire SARL Cote D’Ivoire		100%	30%
Birriman Pty Ltd	British Virgin Islands	100%	49%
Birriman BV SARL	Burkina Faso	100%	49%
Sebba Resources SARL	Burkina Faso	100%	49%
Progress Minerals SARL	Burkina Faso	100%	49%

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NOTE 7: INVESTMENTS IN ASSOCIATES ( continued )

The following is summarised financial information for the Group's interest in immaterial associates

			2021		2020
			$		$
Carrying amount of interests in immaterial associates
Group’s share of loss after income tax			-		(1,054,166)
Group’s share of loss not booked			-		1,054,166
Closing carrying amount			-		-
NOTE 8: CURRENT TRADE AND OTHER PAYABLES
Accruals and other creditors			2,496,890		992,721
			2,496,890		992,721
NOTE 9: ISSUED CAPITAL
1,268,491,755 (30 June 2020: 823,886,255) Ordinary Shares			76,838,685		46,002,695
Share issue costs written off against issued capital			(5,462,667)		(3,143,353)
			71,376,018		42,859,342
	Shares	Issue Price	Listed Options		Unlisted
					Options
	No.	$	No.		No.
At 1 July 2020	823,886,255		86,431,485		9,452,500
Issue of Options	-		10,500,000		51,000,000
Issue of shares in placement - Tranche 1	176,785,281	$0.056		-	-
Issue of shares to acquire 51% PM SARL	4,028,477	$0.060		-	-
Issue of shares in placement - Tranche 2	12,321,869	$0.056		-	-
Exercise of options to shares	1,800,000	$0.018	(1,800,000)		-
Issue of shares – Capital raising	249,669,873	$0.080		-	-
Options cancelled/expired	-	-		-	(1,952,500)
At 30 June 2021	1,268,491,755		95,131,485		58,500,000
At 1 July 2019	295,142,065		73,030,518		3,905,000
Issue of Options – Free attaching	-		117,425,004		7,500,000
Issue of shares in placement/rights issue	497,750,671	$0.010		-	-
Exercise of options to shares	30,993,519	$0.010	(30,993,519)		-
Options cancelled/expired	-		(73,030,518)		(1,952,500)
At 30 June 2020	823,886,255		86,431,485		9,452,500

OPTIONS

For information relating to the Predictive Discovery Limited employee option plan, including details of options issued, exercised and lapsed during the financial year and the options outstanding at year end, refer to Note 12.

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NOTE 10: RESERVES

FOREIGN CURRENCY TRANSLATION RESERVE

Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.

OPTION RESERVE

The option reserve records items recognised as expenses on valuation of employee share options, refer to Note 12.

NOTE 11: EARNINGS PER SHARE

NOTE 11: EARNINGS PER SHARE
	2021	2020
	$	$
Reconciliation of loss
Loss used in calculating earnings per share – basic and diluted	(6,622,404)	(2,352,700)
Net loss for the reporting period	(6,622,404)	(2,352,700)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic and diluted earnings per share	976,478,193	453,203,432

NOTE 12: SHARE BASED PAYMENTS

During the year ended 30 June 2021, the Group granted the following options as share-based payment:

• 40,500,000 unlisted options exercisable at $0.0986 expiring in 2 years as part of the long-term employee incentive plan

• 2,500,000 unlisted options exercisable at $0.011 expiring in 2.5 years as part of the long-term employee incentive plan

• 8,000,000 unlisted options exercisable at $0.1120 expiring in 3 years to the brokers

• 10,500,000 listed options exercisable at $0.0986 expiring in 3 years as part of the long-term employee incentive plan.

During the year ended 30 June 2020, the Group granted 7,500,000 unlisted options exercisable at $0.18 expiring in 3 years in lieu of corporate advisory services.

At 30 June 2021, the Group has the following share-based payment options on issue:

						Expired		Vested and
		Exercise	Start of the	Granted during	Exercised during	during the	Balance at the	exercisable at the
Grant Date	Expiry Date	price	year	the year	the year	year	end of the year	end of the year
29 Nov 2016	29 Nov 2020	$0.3867	1,952,500	-	-	(1,952,500)	-	-
24 Dec 2019	24 Dec 2022	$0.0180	86,431,485		(1,800,000)	-	84,631,485	84,631,485
30 Jun 2020	30 Jun 2023	$0.1800	7,500,000		-	-	7,500,000	7,500,000
09 Nov 2020	05 May 2023	$0.0986	-	15,500,000	-	-	15,500,000	15,500,000
09 Nov 2020	05 May 2023	$0.011	-	2,500,000	-	-	2,500,000	2,500,000
11 Dec 2020	21 Dec 2023	$0.112	-	8,000,000	-	-	8,000,000	8,000,000
05 Feb 2021	05 May 2023	$0.0986	-	25,000,000	-	-	25,000,000	-
14 May 2021	26 May 2024	$0.0986	-	10,500,000	-	-	10,500,000	-
			95,883,985	61,500,000	(1,800,000)	(1,952,500)	153,631,485	118,131,485

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NOTE 12: SHARE BASED PAYMENTS (continued)

At 30 June 2020, the Group has the following share-based payment options on issue:

Grant Date Expiry Date Exercise price 29 Nov 2016 29 Nov 2019 $0.2578 29 Nov 2016 29 Nov 2020 $0.3867 24 Dec 2019 24 Dec 2022 $0.0180 30 Jun 2020 30 Jun 2023 $0.1800	Start of the year Granted during the year Exercised during the year Expired during the year Balance at the end of the year Vested and exercisable at the end of the year 1,952,500 - - (1,952,500) - - 1,952,500 - - - 1,952,500 1,952,500 - 117,425,004 (30,993,519) - 86,431,485 86,431,485 - 7,500,000 - - 7,500,000 7,500,000
	3,905,000 124,925,004 (30,993,519) (1,952,500) 95,883,985 95,883,985

The three tranches of options granted on 29 November 2016 were originally issued with exercise prices of $0.01805, $0.02578 and $0.03867 respectfully and in quantities of 19,525,000 options in each tranche. A 1 for 10 capital consolidation effective 19 May 2017 resulted in the quantities and conditions shown in the above table.

The weighted average exercise price of options as at 30 June 2021 was $0.0347 (30 June 2020: $0.0241). The weighted average remaining contractual life of options outstanding at year end was 1.26 years (30 June 2020: 2.48 years).

For the options granted during the 2021 financial year, the valuation model inputs used in the Black-Scholes Model were as follows:

2021:

2021:
Grant date	Expiry date	Share price at grant date	Exercise price	Expected volatility	Dividend yield	Risk-free interest rate
09 Nov 2020	05 May 2023	$0.069	$0.0986	100%	-	1.1%
09 Nov 2020	05 May 2023	$0.069	$0.011	100%	-	1.1%
21 Dec 2020	21 Dec 2023	$0.055	$0.1120	100%	-	1.1%
05 Feb 2021	05 May 2023	$0.065	$0.0986	70%	-	0.4%
14 May 2021	05 May 2023	$0.0088	$0.0986	70%	-	0.4%

35,500,000 options granted during the 2021 financial year were not exercisable at reporting date, as these vest after the end of the financial year:

• 25,000,000 vest on the 12[th] August 2021

• 10,500,000 vest on the 26[th] May 2022

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NOTE 13: OPERATING SEGMENTS

Identification of Reportable Segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The accounting policies applied for internal purposes are consistent with those applied in the preparation of these financial statements.

internal purposes are consistent with those applied in the preparation of these financial statements.	internal purposes are consistent with those applied in the preparation of these financial statements.	internal purposes are consistent with those applied in the preparation of these financial statements.	internal purposes are consistent with those applied in the preparation of these financial statements.	internal purposes are consistent with those applied in the preparation of these financial statements.
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
		Gold	Gold	Gold	Gold
2021	Corporate	Burk. Faso	Cote D’Ivoire	Mali	Guinea	Total
	$	$	$	$	$	$
Revenue
Interest income	4,865	-	-	-	-	4,865
Other income	15,037	-	-	-	-	15,037
Expenses
Administration expenses	(1,393,992)	(189,929)	(44,036)	-	(23,264)	(1,651,220)
Depreciation of fixed asset	(2,568)				(57,961)	(60,529)
Share based expense	(1,093,054)	-	-	-	-	(1,093,054)
FX gain / (loss)	(152,194)	-	-	-	238,320	86,126
Exploration expenditure	(1,713)	-	-	-	(1,003,786)	(1,005,499)
expensed
Impairment of Exploration	-	-	(2,492,232)	-	-	(2,492,232)
Provision for doubtful debts	-	-	-	-	(426,580)	(426,580)
Revaluation	683	-	-	-	-	683
Loss before tax	(2,622,937)	(189,929)	(2,536,267)	-	(1,273,271)	(6,622,404)
Current assets	21,026,381	27,892	16,672	-	1,891,060	22,962,005
Exploration expenditure	-	239,289	-	-	15,265,801	15,505,090
Plant and Equipment	6,675	-	-	-	314,502	321,177
Intercompany loans	16,860,670	(200,681)	(160,423)	-	(16,499,566)	-
Current liabilities	(212,617)	(25,056)	(9,009)	-	(2,250,209)	(2,496,891)
Net assets/(liabilities)	37,681,109	(41,444)	(152,760)	-	(1,278,412)	36,291,381
		Gold	Gold	Gold	Gold
2020	Corporate	Burk. Faso	Cote D’Ivoire	Mali	Guinea	Total
	$	$	$	$	$	$
Revenue
Interest income	7,019	-	-	-	-	7,019
Gain on subsidiary	-	10,506	-	-		10,506
deregistration
Expenses
Administration expenses	(838,831)	(38,950)	(25,234)	-	-	(903,015)
FX gain /(loss)	(78,381)	-	-	-	-	(78,381)
Exploration expenditure	-	(19,564)	-	(3,063)	(661,260)	(683,887)
expensed
Share of loss in associates	(704,942)	-	-	-	-	(704,942)
Loss before tax	(1,615,135)	(48,008)	(25,234)	(3,063)	(661,260)	(2,352,700)
Current assets	8,515,327	10,872	27,560	6,286	204,508	8,764,553
Exploration expenditure	-	-	2,541,607	-	2,506,571	5,048,178
Plant and Equipment	3,746	-	-	-	30,778	34,524
Current liabilities	(573,849)	(4,054)	(301,495)	-	(113,327)	(992,724)
Net assets	7,945,225	6,818	2,267,673	6,286	2,628,530	12,854,532

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 14: CAPITAL AND LEASING COMMITMENTS

(A) OPTIONS FEE COMMITMENTS Payable – minimum lease payments: -not later than 12 months -between 12 months and 5 years -more than 5 years (B) CAPITAL EXPENDITURE COMMITMENTS(i) Payable: -not later than 12 months -not later than 12 months and 5 years -more than 5 years	2021 $ - - - - 3,601,239 14,404,955 - 18,006,194

(i) Capital expenditure commitments are expenditure commitments on exploration permits in Guinea and Burkina Faso.

NOTE 15: CONTINGENT ASSETS/LIABILITIES

Contingent Assets

In respect of the Company’s tenements held at Guinea, value added tax (VAT) will be receivable from the Guinea tax authorities if these tenements have reached the development phase. No asset has been recognised during the financial year, as the receipt of the VAT is not virtually certain as it is not certain if the tenements in Guinea will reach the development phase (2020: $NIL).

Contingent Liabilities

In respect of the Company’s tenements held at Guinea, value added tax (VAT) may be payable for the period up to December 2020 and for the one month ended June 2021. As this VAT liability is in the process of being assessed by the Guinea tax authorities for the above periods, the magnitude of this liability cannot be determined at the date of this report (2020: $NIL).

On acquisition of a 100% interest of PMI BF Holdings Inc. (see note 6 and note 7), the Company entered into Amended and Restated Net Smelter Return (NSR) royalty agreements dated 3 November 2020 in which the Company has obligations for payments and obligations for a 2% NSR over the Burkina Faso properties.

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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 16: INTERESTS OF KEY MANAGEMENT PERSONNEL

Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration paid or payable to each member of the Group's key management personnel for the year ended 30 June 2021.

The totals of remuneration paid to key management personnel of the company and the Group during the year are as follows:

follows:
		Consolidated
	2021		2020
	$		$
Short-term benefits	514,126		422,610
Share based payments	776,565		-
Post-employments benefits	29,468		1,412
	1,320,160		424,022

NOTE 17: RELATED PARTY TRANSACTIONS

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Transactions with related parties comprised the following:

Intercompany Loans

Predictive Discovery Limited has made loans to its subsidiaries in the amount of $17,032,152 (2020: $340,363). The loan is interest free and payable on demand.

Directors’ Remuneration

Refer to Note 16.

Other Related Party Transactions

Aurora Minerals Limited, an entity of which Mr Phillip Jackson is a director, was paid $483 (2020: $31,615) for administration services, including company secretarial and accounting services.

NOTE 18: REMUNERATION OF AUDITORS

NOTE 18: REMUNERATION OF AUDITORS
		Consolidated
	2021		2020
	$		$
Remuneration of the auditor of the parent entity for:
Moore Stephens Victoria -Other services		-	8,000
PKF Perth -Audit services		57,740	62,505
PKF Perth -Other services		-	-
		57,740	70,505

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

38

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 19: FINANCIAL RISK MANAGEMENT

The Group's financial instruments consist mainly of deposits with banks, receivables and payables.

The totals for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these financial statements, are as follows:

		Consolidated
		2021	2020
	Note	$	$
Financial Assets
Cash and cash equivalents	3	22,729,169	8,639,015
Trade and other receivables	4	232,836	125,538
Total Financial Assets		22,962,005	8,764,553
Financial Liabilities
Trade and other payables	8	2,496,890	992,721
Total Financial Liabilities		2,496,890	992,721

FINANCIAL RISK MANAGEMENT POLICIES

Exposure to key financial risks is managed in accordance with the Group’s risk management policy with the objective to ensure that the financial risks inherent in exploration activities are identified and then managed or kept as low as reasonably practicable.

The main financial risks that arise in the normal course of business are market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. Different methods are used to measure and manage these risk exposures. Liquidity risk is monitored through the ongoing review of available cash and future commitments for exploration expenditure.

Exposure to liquidity risk is limited by anticipating liquidity shortages and ensures capital can be raise in advance of shortages. Interest rate risk is managed by limiting the amount of interest-bearing loans entered into by the Group. It is the Board's policy that no speculative trading in financial instruments be undertaken so as to limit expose to price risk.

Primary responsibility for identification and control of financial risks rests with the Chief Financial Officer, under the authority of the Board. The Board is apprised of these risks from time to time and agrees any policies that may be undertaken to manage any of the risks identified.

Details of the significant accounting policies and methods adopted, including criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each financial instrument are disclosed in Note 1 to the financial statements. The carrying values less the impairment allowance for receivables and payables are assumed to approximate fair values due to their short-term nature. Cash and cash equivalents are subject to variable interest rates.

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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 19: FINANCIAL RISK MANAGEMENT (Continued)

SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT

(A) CREDIT RISK

Exposure to credit risk relating to financial assets arises from the potential non-performance by counter parties of contract obligations that could lead to a financial loss to the Group.

The Group trades only with recognised, creditworthy third parties.

The Group has no customers and consequently no significant exposure to bad debts or other credit risks.

With respect to credit risk arising from financial assets, which comprise cash and cash equivalents and receivables, the exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. At balance date cash and deposits were held with Australia and New Zealand Banking Group Limited.

(B) LIQUIDITY RISK

Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities.

Prudent liquidity risk management implies maintaining sufficient cash reserves to meet the ongoing operational requirements of the business. It is the Group’s policy to maintain sufficient funds in cash and cash equivalents. Furthermore, the Group monitors its ongoing exploration cash requirements and raises equity funding as and when appropriate to meet such planned requirements. The Group has no undrawn financing facilities. Trade and other payables, the only financial liability of the Group, are due within 6 months.

The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.

Cash flows realised from financial assets reflect management's expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management's expectations that banking facilities will be rolled forward.

Financial liability and financial asset maturity analysis

	Within 1 Year	Within 1 Year	1	to 5 Years		Total Contractual	Cash Flow
	2021	2020	2021	2020		2021	2020
	$	$	$	$		$	$
Financial liabilities due for
payment
Trade and other payables	2,496,890	992,721		-	-	2,496,890	992,721
Total contractual outflows	2,496,890	992,721		-	-	2,496,890	992,721
Financial assets - cash flows
realisable
Trade and other receivables	232,836	125,538		-	-	232,836	125,538
Total anticipated inflows	232,836	125,538		-	-	232,836	125,538

The financial assets and liabilities noted above are interest free.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

40

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 19: FINANCIAL RISK MANAGEMENT (Continued)

SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT (CONTINUED)

(C) MARKET RISK

i. Foreign exchange risk

Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds foreign currency which are other than the AUD functional currency of the Group.

ii. Interest rate risk

The Group’s cash flow interest rate risk primarily arises from cash at bank and deposits subject to market bank rates. At balance date, the Group does not have any borrowings. The Group does not enter into hedges. The weighted average rate of interest earned by the Group on its cash assets during the year was 0.04% (2020: 0.42%). The table below summarises the sensitivity of the Group’s cash assets to interest rate risk.

Financial Assets 30 June 2021 Total increase/(decrease) 30 June 2020 Total increase/(decrease)	Effect of decrease or increase of interest rate on profit and equity -1% +1% Profit Equity Profit Equity $ $ $ $ (121,012) (121,012) 121,012 121,012 (16,654) (16,654) 16,654 16,654

NOTE 20: EVENTS AFTER THE END OF THE REPORTING PERIOD

The following events have occurred subsequent to the year ended 30 June 2021:

• Approval of 8,000,000 options on 9 July 2021, which was issued to brokers on 28 July 2021

• Approval of the 2[nd] tranche of the May 2021 Placement shares on 9 July 2021, which were issued on 19 July 2021 i.e. 81,580,127 at $0.08 per shares. Of this amount, 375,000 shares were issued to Paul Roberts and 187,500 shares were issued to Steven Michael.

• The company sold 12.5% of their interest in the Cote D’Ivoire tenements to Turaco Gold, an ASX listed company, in exchange for 10,000,000 performance shares issued on 6 August 2021.

• Conversion of 1,438,471 Listed Options to Shares at $0.018 per share on 17 August 2021.

• On 5 September 2021, there was a Coup D’état in Guinea. While these recent developments are being closely monitored to assess and mitigate impacts to the consolidated entity’s exploration in Guinea, the reason for the coup and early signs from the interim leadership provide reassurance that the impact to the resources sector are likely to be minimal. Therefore, this event does not warrant impairment of the Guinea exploration assets at this time.

The Company recognises the current global COVID-19 pandemic may impact on its operations. Specifically, Government restrictions may:

(iii) prevent Company staff or contractors from carrying out their exploration activities; or

• (iv) impede the supply of equipment or other exploration consumables required to do the exploration work.

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

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PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 20: EVENTS AFTER THE END OF THE REPORTING PERIOD(CONTINUED)

The nature and extent of the effect of the outbreak on the performance of the Company remains unknown. The Company’s share price may be adversely affected in the short to medium term by the economic uncertainty caused by COVID-19. Further, any governmental or industry measures taken in response to COVID-19 may adversely impact the Company’s operations and are likely to be beyond the control of the Company. The ability to freely move people and equipment to and from exploration projects may cause delays or cost increases. The effects of COVID-19 on the Company's share price may also impede the ability to raise capital, or require the Company to issue capital at a discount, which may in turn cause dilution to shareholders.

There are no matters or circumstances arising for the year which significantly affected or could significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

NOTE 21: CONTROLLED ENTITIES

NOTE 21: CONTROLLED ENTITIES
	Country of Incorporation	Percentage	Owned(i)
		2021	2020
Parent Entity:
Predictive Discovery Limited	Australia	-	-
Subsidiaries of legal parent entity:
Predictive Discovery Cote D’Ivoire Pty Ltd	Australia	100%	100%
Ivoirian Resources Pty Ltd	Australia	100%	100%
Gayeri Resources Pty Ltd	Australia	100%	100%
Predictive Discovery Mali Resources Pty Ltd	Australia	100%	100%
Bougouni Resources Pty Ltd	Australia	100%	100%
Kenieba Resources Pty Ltd	Australia	100%	100%
Kita Resources Pty Ltd	Australia	100%	100%
Burkina Resources Pty Ltd(ii)	Australia	100%	49%
Tinkisso Pty Ltd	Australia	100%	-
Predictive Discovery SARL(ii)	Cote D’Ivoire	100%	30%
Ivoirian Resources SARL	Cote D’Ivoire	100%	100%
Predictive Discovery Niger SARL	Niger	100%	100%
Gayeri Resources SARL	Burkina Faso	100%	100%
Burkina Resources SARL(ii)	Burkina Faso	100%	49%
Birrimian BV SARL(ii)	Burkina Faso	100%	49%
Sebba Resources SARL(ii)	Burkina Faso	100%	49%
Progress Minerals SARL(ii)	Burkina Faso	100%	49%
Predictive Discovery Mali SARL	Mali	100%	100%
Kindia Resources SARLU	Guinea	100%	100%
Mamou Resources SARLU	Guinea	100%	100%
Tinkisso Resources SARLU	Guinea	100%	-
Birrimian Pty Ltd(ii)	British Virgin Islands	100%	49%
PMI Burkina Faso (BVI) Inc(ii)	British Virgin Islands	100%	49%
BF Progress (BVI) Inc(ii)	British Virgin Islands	100%	49%

(i) Percentage of voting power is in proportion to ownership

(ii) Refer to notes 6 and 7

PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

42

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 171 877 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 22: PARENT ENTITY DISCLOSURES

Assets Current assets Non-current assets Total assets Liabilities Current liabilities Total liabilities Equity Issued capital Reserves Prior year accumulated losses Current year losses Total equity	2021 $ 21,026,381 17,278,115 38,304,496 (212,617) (212,617) 71,376,018 1,541,626 (29,710,596) (5,115,169) 38,091,879

CONTINGENT LIABILITIES

Nil

CONTRACTUAL COMMITMENTS

The parent entity has commitments as at 30 June 2021 that are disclosed in Note 14.

RECOVERABILITY OF INTERCOMPANY LOAN

Within Non-current assets is a loan due from the 100% subsidiaries of $17,032,152 which is considered fully recoverable. The recoverability of this loan is dependent upon the successful development or sale of exploration assets in Guinea.

NOTE 23: COMPANY DETAILS

The registered office of the company is:

Suite 8, 110 Hay Street, SUBIACO WA 6000

The principal place of business of the company is:

Predictive Discovery Limited Level 2, 33 Ord Street WEST PERTH WA 6005

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PREDICTIVE DISCOVERY LIMITED ANNUAL FINANCIAL REPORT

43

PREDICTIVE DISCOVERY LIMITED AND CONTROLLED ENTITIES ACN 127 871 877 DIRECTOR’S DECLARATION FOR THE YEAR ENDED 30 JUNE 2020

DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 15 to 43, are in accordance with the Corporations Act 2001 and:

2. (a) comply with Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; and

3. (b) give a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on that date of the consolidated group;

4. The Chief Executive Officer and Chief Financial Officer have each declared that:

5. (a) the financial records of the company for the financial year have been properly maintained in accordance with section 286 of the Corporations Act 2001 ;

6. (b) the financial statements and notes for the financial year comply with the Accounting Standards; and

7. (c) the financial statements and notes for the financial year give a true and fair view.

Note 1 confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

1. In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

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Paul Roberts

Managing Director 22 September 2021

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PREDICTIVE DISCOVERY LIMITED ANNUAL REPORT

44

PKF Perth

INDEPENDENT AUDITOR’S REPORT

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TO THE MEMBERS OF PREDICTIVE DISCOVERY LIMITED

Report on the Financial Report

Opinion

We have audited the accompanying financial report of Predictive Discovery Limited (the company), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the company and the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year.

In our opinion the accompanying financial report of Predictive Discovery Limited is in accordance with the Corporations Act 2001, including:

• i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the year ended on that date; and

• ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the consolidated entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Level 4, 35 Havelock Street, West Perth, WA 6005 PO Box 609, West Perth, WA 6872

T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au

PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.

Liability limited by a scheme approved under Professional Standards Legislation.

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PKF Perth

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Key Audit Matter

A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the financial report of the current year. This matter was addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate audit opinion on this matter. For the matter below, our description of how our audit addressed this matter is provided in that context.

1. Valuation of capitalised exploration expenditure

Why significant

How our audit addressed the key audit matter

As at 30 June 2021 the carrying value of exploration and evaluation assets was $15,505,090 (2020: $5,048,178), as disclosed in Note 6. This represents 40.0% of total assets of the consolidated entity, after an impairment of capitalised exploration expenditure of $2,492,232 had been recorded.

The consolidated entity’s accounting policy in respect of exploration and evaluation expenditure is outlined in Note 1(j) with the nature of critical estimates and judgements relating to this balance outlined in Note 1(r). Significant judgement is required:

• in determining whether facts and circumstances indicate that the exploration and evaluation assets should be tested for impairment in accordance with Australian Accounting Standard AASB 6 Exploration for and Evaluation of Mineral Resources (“AASB 6”); and

• in determining the treatment of exploration and evaluation expenditure in accordance with AASB 6, and the consolidated entity’s accounting policy. In particular:

• whether the particular areas of interest meet the recognition conditions for an asset; and

• which elements of exploration and evaluation expenditures qualify for capitalisation for each area of interest.

Our work included, but was not limited to, the following procedures:

• conducting a detailed review of management’s assessment of impairment trigger events prepared in accordance with AASB 6 including:

• assessing whether the rights to tenure of the areas of interest remained current at reporting date as well as confirming that rights to tenure are expected to be renewed for tenements that will expire in the near future;

• obtaining specific representations with the directors and management as to the status of ongoing exploration programmes for the areas of interest, as well as assessing if there was evidence that a decision had been made to discontinue activities in any specific areas of interest; and

• obtaining and assessing evidence of the consolidated entity’s future intention for the areas of interest, including reviewing future budgeted expenditure and related work programmes.

• considering whether exploration activities for the areas of interest had reached a stage where a reasonable assessment of economically recoverable reserves existed;

• testing, on a sample basis, exploration and evaluation expenditure incurred during the year for compliance with AASB 6 and the consolidated entity’s accounting policy; and

• reviewing the impairment calculations provided and related assumptions and disclosures in Notes 1(j), 1(r) and 6 for accuracy and completeness.

46

PKF Perth

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Other Information

Those charged with governance are responsible for the other information. The other information comprises the information included in the consolidated entity’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon, with the exception of the Remuneration Report.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors’ for the Financial Report

The Directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the consolidated entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

• ‘

• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the consolidated entity’s ability to continue as a going concern. If we conclude that a

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PKF Perth

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material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the consolidated entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the consolidated entity to express an opinion on the group financial report. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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PKF Perth

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Report on the Remuneration Report

Opinion

We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2021.

In our opinion, the Remuneration Report of Predictive Discovery Limited for the year ended 30 June 2021 complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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PKF PERTH

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SHANE CROSS AUDIT PARTNER

22 SEPTEMBER 2021 WEST PERTH WESTERN AUSTRALIA

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PKF Perth

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AUDITOR’S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED

In relation to our audit of the financial report of Predictive Discovery Limited for the year ended 30 June 2021, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

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PKF PERTH

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SHANE CROSS AUDIT PARTNER

22 SEPTEMBER 2021 WEST PERTH WESTERN AUSTRALIA

Level 4, 35 Havelock Street, West Perth, WA 6005 PO Box 609, West Perth, WA 6872

T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au

PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.

Liability limited by a scheme approved under Professional Standards Legislation.

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PREDICTIVE DISCOVERY LIMITED

ABN 11 127 871 877

Level 2 33 Ord Street WEST PERTH WA 6005 Telephone: +61 8 9216 1000 www.predictivediscovery.com.au