PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Aug 5, 2012

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ASX Announcement

6[th] August 2012

PDI Acquires 100% of ElDore Joint Venture, Burkina Faso

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

Predictive Discovery Limited (ASX: PDI) is pleased to announce that it has signed an agreement with Stratos Resources Limited (ASX: SAT; formerly ElDore Mining Corporation Limited), enabling PDI to move to 100% ownership of the four Burkina Faso permits that constitute the ElDore Joint Venture. These permits cover 621km[2] and include the Laterite Hill Gold Field, a 20km long zone of gold mineralisation, in which PDI has obtained excellent drill results over eight separate zones of gold mineralisation with a cumulative strike length of at least 8km to date.

ASX: PDI

This is an important strategic development for PDI in consolidating and simplifying the ownership of some of the key tenements in the Company’s extensive project portfolio.

Issued Capital: 133M shares Share Price: 7 cents Cash (at 30 June 12): $1M

SAT currently holds 27.9% of Birrimian Pty Ltd (“BPL”) the underlying owner of the four Joint Venture permits. PDI currently owns 72.1% of BPL. Subject to approval by an Extraordinary General Meeting of SAT shareholders, PDI will purchase SAT’s entire shareholding in BPL for the consideration of 13 million PDI shares. At the same time, SAT will make a cash payment to PDI of $140,000 in partial repayment of outstanding cash calls from the Joint Venture. Also, as part of this transaction, SAT and its Directors are contributing $160,000 to the shortfall in PDI’s recent entitlement issue which closed on 20[th] July 2012.

Directors

Phillip Harman Non-Exec Chairman

Paul Roberts Managing Director

Other provisions of the agreement include:

• SAT will be subject to a voluntary escrow agreement in relation to its PDI shares for 12 months after settlement.

Bobby Danchin Non-Executive Director

• SAT will have no further contribution obligations towards the ElDore Joint Venture and PDI will forgive all remaining outstanding Joint Venture payments owed by Stratos to PDI.

Tom Whiting Non-Executive Director

c Phil Henty Non-Executive Director

• SAT and individuals or investment funds associated with that Company may contribute further to the PDI entitlement issue shortfall prior to the SAT Extraordinary General Meeting. If so, any contribution up to $140,000 will then be discounted from the $140,000 cash payment to PDI and the number of PDI shares issued under the agreement will be reduced by the value of that contribution, assuming an 8 cent PDI share price.

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This agreement is a significant advance for PDI and its shareholders. PDI’s Board sees great value in the four permits, not only in the Laterite Hill Gold Field but in the potential upside in the rest of the permit areas, which are largely untested. The recent discovery drill hole at the Bongou Prospect (54m at 2.1 g/t Au from 36m) in a hitherto undrilled part of the Madyabari Permit highlights this potential.

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.

PDI is very pleased to welcome SAT as a shareholder. Through our Joint Venture relationship, SAT has a good understanding of PDI’s Burkina Faso projects. It has also demonstrated its support of PDI’s direction and management by contributing to PDI’s entitlement issue shortfall. We take particular note that SAT’s Directors have purchased shares in PDI, a clear sign of the alignment between the two Companies. PDI looks forward to an ongoing strong relationship with SAT as we advance our eastern Burkina Faso projects towards our goal of more than 2 million ounces in resources with an average grade above 2g/t Au.

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Figure 1: Locality Plan - Bonsiega permit group. The four ElDore Joint Venture permits (Sirba, Madyabari, Tantiabongou and Fouli) are outlined in blue. The filled red circles signify prospects drill tested with reverse circulation or diamond drilling. Superimposed on Government geological mapping (pale green =volcanics and sediments; pink = granite).

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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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