PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Nov 13, 2012

14[th] November 2012

Predictive Discovery Limited is a gold exploration company with advanced exploration projects in Burkina Faso, West Africa and strong technical capabilities.

ASX: PDI

Issued Capital: 156M shares

Share Price: 7.3 cents

Market Capitalisation: $11M

Cash (at 31 October 12): $1.2M

Directors

Phillip Harman Non-Exec Chairman

Paul Roberts Managing Director

Bobby Danchin Non-Executive Director c

Tom Whiting Non-Executive Director

Phil Henty Non-Executive Director

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ASX Announcement

Burkina Faso Gold Exploration Program

Commences

Predictive Discovery Limited ( ASX: PDI ) announces that field work has recommenced on its Eastern Burkina Faso Gold Project (Figure 1).

Following the Company's recent $3.3 million placement (with the second tranche subject to shareholder approval at an EGM scheduled for early December 2012), PDI's exploration team has returned to the field to begin an exploration program consisting of RC drilling, soil and bedrock sampling, geological mapping and trenching.

At present, the field team is carrying out geological mapping, sampling and trenching at the target locations in order to design the drilling program. An RC drilling program totalling approximately 3,000m will commence in December. Each Prospect will be tested with 400m to 800m of drilling.

The drilling program will be focused on four of the top priority high grade gold prospects identified in the past 18 months, specifically the new Bongou discovery , Tambiri South, Solna and Prospect 71 (Figure 2). In each case, the drilling will be aimed at exploring along strike from known high grade gold intercepts to test for ore continuity, grade and width. Previous RC and diamond drilling at these Prospects has obtained high grade gold intercepts including:

Bongou (PDI drilling):

20m at 4.8g/t Au from 70m (only hole drilled to date)

Solna (PDI drilling):

6m at 20g/t Au from 40 m

2m at 56g/t Au from 65 m

7m at 13g/t Au from 117 m

Tambiri South (1 km south of high grade Tambiri Prospect):

6m at 5.2g/t Au from 90 m (historical drilling)

Prospect 71 :

4m at 15g/t Au from 23 m (historical drilling)

4m at 7.1g/t Au from 20 m (PDI drilling)

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– Ongoing Exploration Activities East Burkina Faso Gold Project

Following receipt of drill assays, it is intended that further drill programs will be carried out to follow up the Prospects with the best combination of grade, width and continuity in order to advance the Company as rapidly and cost effectively as possible towards its objective of defining a high grade maiden resource inventory in Burkina Faso.

The Company has also identified multiple additional targets on its Eastern Burkina Faso Project with potential for high grade gold mineralisation . These will be prioritised with Predictore[TM] and then tested progressively with focused reconnaissance work programs including geological mapping, soil sampling and tightly defined power auger drilling programs. Highly encouraging results from any of these prospects will be followed up by RC drilling programs at the earliest opportunity.

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Figure 1: Locality Plan – PDI Exploration Permits in Eastern Burkina Faso on Government geological map. Prospect locations are labelled in yellow.

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Figure 2: Sluice operations, artisanal mine site – Solna high grade gold prospect. PDI's partner is purchasing 10-15kg of gold per month from this site.

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Figure 3: PDI RC drillers in action - Bonsiega permits

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About Predictive Discovery:

Predictive Discovery Limited (PDI) was established in late 2007 to explore for gold and uranium. The Company is focused principally on exploration for gold in West Africa with one additional gold project in Australia. PDI has a distinctive technological capability, known as Predictore [TM] , which is designed to increase drill targeting efficiency thereby reducing ore discovery cost. The Company’s major focus is in Burkina Faso, West Africa where it has assembled a substantial regional ground position totalling 1,544km[2] and is exploring for large open-pittable gold ore deposits.

Competent Persons Statement

The exploration results reported herein, insofar as they relate to mineralisation, 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition). 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.

For further details please contact:

Paul Roberts

Ian Hobson

Managing Director

Tel: +61 8 9216 1020

Email: paul.roberts@predictivediscovery.com

Company Secretary Tel: +61 8 9216 1020 Email: ianhobson@bigpond.com

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