PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Jun 6, 2012

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6 June 2012

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

Dear Optionholder

Entitlements Issue – Notice to Optionholders

On 28 May 2012, Predictive Discovery Limited ( Company ) announced a capital raising by way of a non-renounceable pro-rata entitlements issue ( Entitlements Issue ).

Details of the	This Entitlements Issue entitles eligible shareholders to
Entitlements Issue	subscribe for:

Entitlements Issue	subscribe for:
	•one (1) new fully paid ordinary share (New Share) for
	every five (5) ordinary shares held by Eligible
	Shareholders at $0.08 cents per New Share; and
	•one free attaching unlisted option (New Option) for
	every 2 New Shares issued, with an exercise price of 10
	cents to 30 June 2013, 15 cents from 1 July 2013 to 30
	June 2014 and 20 cents from 1 July 2014 to the expiry
	date on 30 June 2015.
	Details of the Entitlements Issue are contained in the
	Company’s ASX announcement on 28 May 2012 and in the
	Prospectus lodged with ASIC and the ASX today, and
	available atwww.asx.com.au.
Can you participate as	As an Optionholder you are not entitled to participate in the
an Optionholder?	Entitlements Issue.
What if you want to	For you to participate in the Entitlements Issue, you must
participate in the	exercise any options (subject to the terms of the options)
Entitlements Issue?	and be registered as an eligible shareholder before 7.00pm
	(AEST) on 18 June 2012.
	You should carefully consider your personal circumstances
	and the Prospectus before deciding whether to exercise
	your options. If you are unsure what action you should take
	or have any questions about the Entitlements Issue, you
	should contact your stockbroker, accountant or other
	professional adviser. Specifically, you will need to consider
	the terms of any restriction agreements that relate to your
	options and how they impact your rights.
What will happen if	If you do not want to exercise your options and participate in
you don’t exercise	the Entitlements Issue, then you can continue to hold the
your options?	options in accordance with their terms.

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Further details of the Entitlements Issue are set out in the announcement released today, which will be available at www.asx.com.au or from the Company’s website, http://www.predictivediscovery.com, for information purposes only.

Yours faithfully

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Phillip Harman Chairman

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