PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Jul 5, 2012

5th July 2012

Re: Non- Renounceable pro rata entitlement offer

Dear Shareholder,

ABN 11 127 171 877 Level 2, 9 Colin Street WEST PERTH WA 6005 PO Box 1710 West Perth WA 6872 p (08) 9216 1000 f (08) 9481 7939 w www.predictivediscovery.com

On 28[th] May 2012 Predictive Discovery Limited (ASX: PDI) announced a one for five, pro rata, non-renounceable entitlement offer (“the Issue”) to raise approximately $2 million. Today, we announced that the closing date for acceptances of entitlements Issue has been extended by one week to 5.00pm (AEST) on Friday, 20 July 2012. The revised timetable is detailed overleaf.

The reason for extension is due to the announcement of positive drill results at the Bonsiega Project including discovery of a new gold mineralised zone at the Bongou Prospect. The extension of time will give existing shareholders the opportunity to assess those results and consider participation in the rights issue in the context of this new information.

On behalf of your Board, I would now like to update you on the Company’s activities and provide further details on our intended use of funds.

Firstly, thank you for your steadfast support of PDI during this challenging time in the global financial markets. Throughout, PDI’s management has remained focussed on delivering our operational objectives. Progress of the Company since it listed on the ASX in December 2010 has, in my view and experience, been quite remarkable.

In Burkina Faso, we have established a portfolio of prospects with ore grade intersections over a widespread area. In particular, on the Bonsiega Project in the Laterite Hill Grid area, we have discovered a completely new gold-field around 20 kilometres long. Although still in its early stage of evaluation, we have demonstrated potential for large tonnages of moderate grade gold mineralisation. More recently we have been further encouraged by a number of holes with higher grades, which clearly demonstrates the significant untapped potential of this discovery.

PDI has also acquired rights over the high grade Bangaba goldfield in the Sebba belt 60 kilometres north of Laterite Hill. Our drilling has confirmed its high grade tenor with intersections such as 7m at 13g/t Au, 5m at 17g/t Au and 2m at 56g/t Au and identified potential for further high grade discoveries, both along strike and at depth.

Recent drill results from Bangaba and Laterite Hill at Bonsiega have been consistently encouraging, re-affirming our optimism that our established areas of gold mineralisation and their contained potential resource inventory will grow over time. We have also identified potential for further new gold discoveries elsewhere in our large Burkina Faso ground holdings.

Our immediate priority is to confirm the scale and potential of gold mineralisation at Bangaba and Bonsiega. The funds raised will support this by enabling us to complete an infill drilling program immediately after the rainy season and to carry out preliminary metallurgical test work to give us some confidence in the nature of gold recovery in the primary projects.

PDI believes that results from the planned drilling program will enable us to calculate a maiden JORC resource in the last quarter of 2012. This will form a foundation from which we can expand our resource inventory both around these projects and by RC drilling some of the many untested prospects in our Burkina Faso tenement package.

The achievements by Managing Director Paul Roberts and his team in Australia and Burkina Faso have been outstanding. They have placed our Company in a great position to realise the potential of our exciting portfolio. Our largest shareholder, Acorn Capital, along with PDI’s Board and management will take up their entitlements under the Issue, affirming their confidence in the team’s ability to deliver substantial mineral resources from our Burkina Faso ground.

Once again thank you for your support of our Company. We look forward to further progressing our exploration activities and thereby create value by expanding the potential for a significant gold resource base, worthy of global recognition.

Revised Timetable

The revised timetable for the rights issue is as follows:

Prospectus lodged with ASX and ASIC	6 June 2012
‘Ex’ date	12 June 2012
Record Date	7:00pm (AEST), 18 June 2012
Opening Date	21 June 2012
Prospectus and Entitlement and Acceptance Forms	21 June 2012
dispatched to Eligible Shareholders
Closing Date for acceptance and payment	5:00pm (AEST), 20 July 2012
Deferred settlement trading commences	23 July 2012
Notification of Under-Subscriptions	24 July 2012
Issue and allotment of New Shares and New Options	26 July 2012
Commencement of trading of New Shares	27 July 2012

Note: The Company reserves the right, subject to the Corporations Act, ASX Listing Rules and other applicable laws, to vary the dates of the Entitlement Offer, including extending the Closing Date or accepting late applications, either generally or in particular cases, without notice.

Yours sincerely,

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Phillip Harman Chairman

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.