PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2010

Dec 1, 2010

____________________________________________________________________________________________________________ ASX ANNOUNCEMENT

By Electronic Lodgment 2nd December, 2010 Company Announcements Office ASX Limited 2 The Esplanade Perth WA 6000

ASX: BFE

SHARE INFORMATION

Issued Shares: 109.5m Unlisted Options: 13.0m

BOARD OF DIRECTORS

MD: S. Rigby Non-Exec: M. Chester Non-Exec: M. Clifford

PRINCIPAL CONTACT

Simon Rigby – MD Phone: +61 (8) 9272 4353

FURTHER INFORMATION

blackfireminerals.com.au

REGISTERED OFFICE

Level 1, 33 Ord Street West Perth, Western Australia Phone: +61 (8) 9420 9300 Fax: +61 (8) 9481 2690 E: info@blackfireminerals.com.au

REGISTRY ENQUIRIES

Computershare Investor Services Level 2, 45 St Georges Tce Perth Phone: +61 (8) 9323 2000

SUCCESSFUL $8m IPO OF PREDICTIVE DISCOVERY LTD

Highlights

• Black Fire's strategic investment in Predictive Discovery (ASX:PDI) returns substantial value with the successful listing of the company on the ASX after a significantly oversubscribed $8,000,000 IPO raising.
• Black Fire remains a significant shareholder with a7.5% equity in the company which would be valued at $1.92m at Predictive's first day closing price of $0.265.
• Black Fire Shareholders also benefited directly through the negotiated right for the preferential issue of 10% of the new shares which was fully subscribed.
• Predictive Discovery to now accelerate exploration of their highly prospective West African gold projects.

The Board of Black Fire Minerals Ltd (ASX: BFE) (Black Fire or Company) is pleased to announce that the seed investment in Predictive Discovery Limited (PDI) in March this year has returned substantial value to Black Fire shareholders after the successful listing of PDI on the ASX. The PDI Initial Public Offering closed significantly oversubscribed raising a total of $8,000,000 which will largely be used to explore their extensive 1,544km2 of gold exploration landholdings in Burkina Faso, West Africa.

Post the PDI ASX listing, Black Fire remains the largest single shareholder of PDI with a7.5% equity. This equity was purchased for $580,000 in March 2010 and at the closing price for PD on the first day of trade on the ASX of $0.265 is worth some $1.92m.

In addition, as part of the seed investment made by the Company, a right for Black Fire shareholders to be preferentially issued up to 10% of the PDI IPO capital was negotiated. This right was fully taken up, with shareholders seeing a 32% increase in their investment on PDI's first day of trade.

Executive Director Simon Rigby commented "The Black Fire Board is very pleased with the result of the Predictive Discovery IPO both from the potential return on investment for the Company, but also for our shareholders who availed themselves of the preferential rights to a collective 10% of the PDI IPO. The Board believes that our business plan of both direct participation in and investment within the resources industry will continue to deliver results. The Board would further take this opportunity to wish the Predictive Discovery team every success as they now move forward with their exploration plans for West Africa".

ABOUT BLACK FIRE MINERALS (ASX: BFE)

Black Fire Minerals Limited is a diversified resources company based in Perth, Western Australia and listed on the ASX (Ticker symbol: BFE). Our vision is to build a highly regarded, dynamic mid‐cap resources company that creates substantial stakeholder value. The corporate strategy entails a Mining House structure that allows both direct participation in and investment within the resources industry. Our primary commodity focus is gold and copper, however, the company will acquire/invest in other commodities provided the specific business case indicates the potential for superior returns.

For further information please visit our website at www.blackfireminerals.com.au

SIMON RIGBY Executive Director Black Fire Minerals Ltd