PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Aug 5, 2012

Stratos Resources Limited Level 1, 981 Wellington St West Perth WA 6005 ABN 82 110 884 262

6 August 2012

STRATOS TO ACQUIRE SUBSTANTIAL INTEREST IN PREDICTIVE DISCOVERY LTD (ASX: PDI)

Stratos Resources Ltd (ASX: SAT) (“Stratos” or “the Company”) is pleased to announce that it has agreed to exchange its minority joint venture interest in Burkina Faso (the Bonsiega gold project) for a direct equity interest (13 million ordinary shares) in its joint venture partner, Predictive Discovery Ltd (ASX: PDI). PDI is an ASX listed gold explorer that is the operator and 72.1% joint venture partner with Stratos in the Bonsiega gold project.

The transaction (detailed below and subject to ASX and Stratos shareholder approval, if required) simplifies the ownership and operating structure in Burkina Faso and allows Stratos to gain direct exposure to PDI’s full suite of Burkina Faso gold assets (including PDI’s highly prospective Bangaba project whilst retaining continued exposure to the Bonsiega project). Further details on PDI and recent drilling results at PDI’s projects in Burkina Faso are set out in the Appendix.

Stratos recognises the significant progress and investment PDI has made in Burkina Faso as the operator of the Bonsiega joint venture and on its Bangaba project. There has been extensive successful exploration work done to date and Stratos is pleased to join the register of PDI as it progresses towards a maiden JORC resource and then moves towards its ultimate goal of delineating a substantial open-pittable West African gold resource. PDI stated in its June Quarter Activities report that its goal is to advance its eastern Burkina Faso projects towards a goal (not currently a JORC reportable resource) of more than 2 million ounces in resources with an average grade above 2g/t Au.

THE TRANSACTION

At present, Stratos holds 27.9% of Birrimian Pty Ltd (“BPL”), which owns the four Joint Venture permits in Burkina Faso. Subject to ASX and shareholder approval (if required), Stratos will exchange its remaining shareholding in BPL for 13 million PDI shares. PDI currently has 133 m shares on issue and a 12 month trading range of 6.5 to 21.5 cents (last sale of 7c/ share). At the same time, Stratos will make a cash payment to PDI of $140,000 in partial repayment of outstanding cash calls due under the Bonsiega Joint Venture.

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Other provisions of the agreement include:

• Stratos will be subject to a voluntary escrow agreement in regards to its PDI shares for 12 months after settlement. The escrow can only be released in the event of a takeover or by mutual consent.

• Stratos will have no further contribution obligations towards the joint venture. At present Stratos is required to continue to fund its share of the joint venture to avoid further dilution. This dilution may result in its joint venture interest dropping to below 20% during 2012.

As its current joint venture partner, Stratos has a good understanding of PDI’s Burkina Faso projects and great respect for its in-country management and operating expertise. Stratos believed the PDI portfolio has potential for significant re-rating as it moves towards its maiden resource and ultimate goal. On completion of this transaction, PDI will hold rights to between 95 and 100% of all its eleven exploration permits in Burkina Faso, simplifying project management and any future mine development financing and revenue sharing arrangements.

The transaction is a significant positive achievement for Stratos and adds to other recent company developments including the appointment of new board members, a $500,000 capital raising, addition of a new institutional shareholder to the register and the transfer to the Company of 35 million shares in Sprint Energy Ltd (ASX: SPS) as final repayment of an outstanding loan.

The company continues to review potential acquisitions and other value adding activities and will update the market as appropriate.

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.

PO Box 8 • West Perth • Western Australia • 6872 T : +61 (0) 8 9381 2517 F : +61 (0) 8 9381 5853

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APPENDIX

About Predictive Discovery Ltd (“PDI”)

PDI’s major country focus is Burkina Faso, West Africa where it has established a large Burkina-based exploration team and a large regional tenement package mainly in the north east of the country (Figure 1).

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Figure 1: Locality Plan – PDI Projects in Eastern Burkina Faso superimposed on Government geological map. Results from the yellow labelled Prospects are provided in this Quarterly Report.

PDI’s tenement holding covers approximately 100 km of strike length in the Samira Hill greenstone belt in eastern Burkina Faso (the “Bonsiega permit group”, Figure 1). This belt hosts the 2.5 million ounce Samira Hill gold mine across the border in Niger and contains numerous active artisanal gold mine sites along its length. The Bangaba permit covers 10km of strike of the nearby Sebba Belt, including the largest known artisanal workings in the area.

Encouraging drill results from the Bonsiega and Bangaba permits has led PDI to consider its entire Eastern Burkina Faso ground holdings effectively as one project. Based on the encouraging results, the company’s goal is to identify sufficent resources to support a major central gold treatment plant, the first in the area, drawing ore from multiple deposits. High grades have been obtained from the Bangaba permit, 60km to the north, which suggests that ore from there might be transported to a treatment plant on the Laterite Hill Gold Field. The terrain between the two areas is flat with only one sandy river bed to cross (Figure 2), providing easy access for road construction.

PO Box 8 • West Perth • Western Australia • 6872 T : +61 (0) 8 9381 2517 F : +61 (0) 8 9381 5853

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Bonsiega Permit Group

Stratos Joint Venture (PDI - 72% with agreement announced on 6 August 2012 to move to 100%)

The Stratos Joint Venture covers four permits within the Bonsiega Project (Figures 2 and 3). PDI owns 72% in a joint venture with Stratos Resources Limited, formerly ElDore Mining Corporation Limited.

In the past 18 months, power auger drilling has identified a 20km long zone of strong bedrock gold anomalies in the Laterite Hill Grid area. Also, RC drilling in the 12 months to the end of March, 2012 yielded significant gold mineralised intercepts in six prospects, including:

 Dave Prospect (formerly Dave and Dave East)

• 10m at 18g/t Au from 74m, including 2m at 74g/t Au

• 13m at 4.7g/t Au from 67m including 1m at 33g/t Au

• 28m at 1.6g/t Au from 30m

• 7m at 5.3g/t Au from 54m including 1m at 20g/t Au

• Tamboana Zone (new discovery):

o 5m at 5.1g/t Au from 36m including 1m at 22g/t Au

 Koundi Zone (new discovery):

• 4m at 5.7g/t Au from 76m (stopped in mineralisation)

• Laterite Hill Shear Zone (includes Laterite Hill artisanal mine site):

• 26m at 1.2g/t Au from 71m including 14m at 1.8g/t Au

• 22m at 1.4g/t Au from 48m

 Prospect 71 (two new zones):

• 32m at 1.7g/t Au from 26m including 24m at 2.1g/t Au

• 18m at 1.0g/t Au from 54m including 6m at 2.3g/t Au (stopped in mineralisation)

Bangaba Permit (PDI earning 95%)

Background

The Bangaba project in Eastern Burkina Faso (Figure 1) covers areas of extensive artisanal mining. PDI is earning a 95% interest in the 128 km[2] Bangaba exploration permit by making a series of staged payments in cash and shares. PDI’s equity now stands at 68%.

PO Box 8 • West Perth • Western Australia • 6872 T : +61 (0) 8 9381 2517 F : +61 (0) 8 9381 5853

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It is estimated that artisanal miners have produced several tonnes of gold at Bangaba over 27 years. Artisanal workings are located on two complex structures on the northwest and south-east contacts of a granodiorite-diorite body.

Previous RC and diamond drilling programs at the two major sites of artisanal mining, Solna and Tambiri, have generated a series of high grade intercepts, including: 2m at 56g/t Au , 5m at 17g/t Au , 7m at 13g/t Au , 9.3m at 4.9g/t Au and 5.6m at 16g/t Au .

PDI also has further prospects in Burkina Faso, Ivory Coast and Australia. For further details, please review PDI’s ASX releases.

PO Box 8 • West Perth • Western Australia • 6872 T : +61 (0) 8 9381 2517 F : +61 (0) 8 9381 5853