PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Apr 22, 2012

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23rd April 2012

ASX Announcement

Level 2, 9 Colin Street West Perth WA 6005 ABN 11 127 171 877 p (08) 9216 1000 f (08) 9481 7939 w www.predictivediscovery.com e info@predictivediscovery.com ASX Code: PDI

10m at 18g/t Au from Dave Prospect

HIGHLIGHTS

□ Assays from RC and diamond drilling on Bonsiega Project, Burkina Faso include:

• Dave Prospect infill and extension drilling:

  • 10m at 18g/t Au from 74m (best intercept on Dave to date)

  • 10m at 2.5g/t Au from 88m

  • 2m at 6.9g/t Au from 12m

• Laterite Hill Prospect reconnaissance drilling:

  • 14m at 1.8g/t Au from 71m

  • 22m at 1.4g/t Au from 48m

  • 4m at 5.7g/t Au from 76m (new discovery)

• Tamboana Prospect reconnaissance drilling:

  • 5m at 5.1 g/t Au from 36m

• Prospect 71 reconnaissance drilling:

  • 24m at 2.1 g/t Au from 26m (new discovery)

  • 6m at 2.3g/t Au from 60m (new discovery)

• Six gold mineralised structures with over 5km of strike, open in most directions, now identified from RC drilling on Laterite Hill Grid.

Predictive Discovery Limited ( ASX: PDI ) announces that assays have now been received for just under half of the holes completed in a large program of RC, diamond and air core drilling completed in March 2012 on the Laterite Hill Grid, Bonsiega Project in eastern Burkina Faso.

Managing Director’s Assessment of Drill Results

Mr Paul Roberts, PDI’s Managing Director commented: “ Our drilling programs in Burkina Faso this year have two objectives – first to identify the scale of potential gold mineralised systems on our properties and second to infill drill the best prospects in order to advance them towards a JORC resource calculation. The drill results announced today represent a significant advance on both fronts.

Drilling on the Dave and Dave East Prospects within the Laterite Hill Grid has already identified a large mineralised system over a strike length of at least 3.6 km including multiple lodes containing moderate gold grades. Addition of high grade sections within those lodes will increase the bulk gold grade and, with that, the opportunity to expand open pittable resources to greater depths. Some higher grades have previously been reported (e.g. 2m at 15/t Au within 14m at 3.7g/t Au). The new intersection at Dave of 10m at 18g/t Au on an infill drill section provides strong new evidence of that higher grade component at depth.

The drill assays announced today also confirm the scale of the Laterite Hill Grid gold field, of which the Dave and Dave East mineralisation forms only a part. PDI’s power auger drilling has now discovered more than 18km of strong gold bedrock gold anomalies on the Laterite Hill Grid. Another 15km of strike length south‐

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west of this grid remains untested. Our RC drilling has intersected ore grade and width mineralised zones in every Prospect, most of which are open in all directions. Three previously unknown gold mineralised zones have recently been discovered. These results strengthen the potential to make one or more large gold discoveries on the Bonsiega Project.”

Bonsiega Project – Laterite Hill Grid

The Bonsiega Project covers approximately 100 km of strike length in the Samira Hill greenstone belt in eastern Burkina Faso (Figure 1). This belt hosts the 2 million ounce Samira Hill gold mine across the border in Niger and contains numerous active artisanal gold mine sites along its length. The Laterite Hill Grid section covers an area of 70 km[2] within two of the four permits in the Birrimian Joint Venture with ElDore Mining Corporation Limited. PDI’s equity in the Joint Venture currently stands at 72%.

During 2011, auger drilling identified an 18km long zone of strong bedrock gold anomalies in the Laterite Hill Grid area. In mid‐2011 RC drill holes at the Dave and Dave East Prospects located a series of gold‐ bearing mineralised zones containing numerous ore grade and width intercepts over a strike length of 2km. Infill RC drilling and analysis completed in December 2011 identified higher grade sections that are interpreted to lie within a series of north‐east striking zones.

Assays reported in this release are from an RC, diamond and air core drill program carried out in the Laterite Hill Grid area between December 2011 and March this year. The holes were drilled on the Dave, Dave East, Laterite Hill, Tamboana, Prospect 71 and Prospect 71 West Prospects and totalled 17,600m.

This program had two main objectives:

• at Dave and Dave East, to upgrade understanding of the Prospects’ potential by infilling between previous intersections and testing for extensions over an additional 3km of strike.

• elsewhere, to test some of the extensive bedrock gold anomalies on the Laterite Hill Grid with wide spaced drill sections.

The gold assay results released today represent 44% of the above drilling program.

Drilling Results

Assays from our programs have been severely delayed because of the large number of PDI samples held in the contracted analytical laboratory in Ouagadougou. Ongoing discussions with the laboratory have highlighted this issue and focused on reducing turnaround time. Assays are now being received more rapidly.

Drill hole locations for the various Prospects are shown in Figures 2 to 5. Holes for which assays have been received are distinguished from those that are still to come. Significant results are highlighted. A complete list of hole coordinates and assays is provided in Table 1 at the end of this release.

Dave and Dave East Prospects (Figure 3)

Assays for all or part of 13 holes out of a total of 137 have been received from the infill and extension drilling. The best results received so far are as follows:

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

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• 10m at 2.5 g/t Au from 77m including 2m at 8.3g/t Au

• 2m at 6.9g/t Au from 12m

The high grade gold result (10m@18g/t) was from infill drilling of a mineralised zone interpreted between adjacent drill sections 100m to the east and west. Other higher grade intercepts encountered so far at Dave and Dave East are also relatively deep (e.g. 2m at 14.8g/t Au from 74m down‐hole, 2m at 12.4g/t Au from 74m, 2m at 13.7g/t from 54m). This observation may point to potentially higher grades at depth.

The 2m at 6.9g/t Au intersection was obtained from an RC hole 400m west of any previous RC drilling.

Laterite Hill and Tamboana Prospects (Figure 4)

These holes were designed to test the very broad bedrock gold anomalies outlined by earlier power auger drilling. They were drilled on 400m sections and better results include:

• Tamboana Zone:

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

• 4m at 2.9g/t Au from 32m

• Koundi Zone:

• 4m at 5.7g/t Au from 76m

• 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

• 4m at 2.9g/t Au from 12m

• 9m at 1.3g/t Au from 9m

• 11m at 1.3g/t Au from 34m (a separate zone nearby)

Locations of these intercepts are shown on Figure 4. The Laterite Hill Prospect contains broad, moderate grade intercepts similar to those seen at Dave/Dave East while the Tamboana and Koundi zones are narrower but may be somewhat higher in grade. Such higher grade sections offer the potential of lifting overall resource gold grades.

Prospect 71 and Prospect 71 East (Figure 5)

Holes were drilled on 400m and 800m sections to test very broad bedrock gold anomalies. Some assay results are still pending including a drill section from an area where Emerging African Gold recorded 4m at 15g/t Au in 1997. Better results included:

• 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

• 6m at 2.3g/t Au from 6m

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The first and second intercepts are separate new gold discoveries, respectively in the north of Prospect 71 and at the western end of Prospect 71 West. There are no workings in either area and each zone is open in all directions .

Future work program

RC drilling has re‐commenced on the Laterite Hill Grid. The aim of the drilling is to improve PDI’s understanding of continuity between and along strike from known ore grade gold intercepts with particular focus on the higher grade intervals. Drilling will continue to outline the large, moderate grade zones that are already known.

The remaining RC drilling in the current field season will be used to develop a greater understanding of geological continuity as the basis for resource calculation on part of the Laterite Hill Grid gold field. An ensuing focused infill drilling program in October‐November 2012 will form the precursor to a maiden resource calculation. The Company also plans to undertake preliminary metallurgical studies on representative samples of the gold mineralisation identified to date.

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Figure 1: Geological map of eastern Burkina Faso showing PDI’s tenements with the location of the Bonsiega Project and drilled Prospects (yellow) on the Laterite Hill Grid highlighted.

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Figure 2: Laterite Hill Grid showing Prospect and drill locations superimposed on map showing power auger grid and locations of bedrock gold geochemical anomalies greater than 25ppb Au.

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Figure 3: Dave‐Dave East Prospect – drill hole locations and assay highlights.

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Figure 4: Laterite Hill and Tamboana Prospects plus new Koundi Zone – drill locations and assay highlights

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Figure 5: Prospect 71 and Prospect 71 West – drill locations and assay highlights

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TABLE 1 – DRILL ASSAY RESULTS

Hole Number	Prospect	**Easting **	Northing	Azimuth (UTM)	Dip	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	Comments
						From (m)	Interval (m)	**Au g/t **	**From **	Interval (m)	Au g/t
DAVDD001	Dave East	217005	1420073	320	‐50	34	2	0.6
						41	22	0.3	61	2	1.1
						109.5	3.5	0.8	109.5	2.5	0.9
DAVDD002	Dave East	216083	1419604	320	‐50	76	14	0.7	76	7	1.1
						88	1	1.0	88	1	1.0
						108	4	0.3
DAVDD003	Dave	214848	1419219	320	‐50	26	5	0.4
						39	2	0.5
						73	23.5	0.7	73	3	1.5
									81	4	1.6
									92	2	1.8
						141	2	0.6
DAVDD004	Dave	214649	1419140	320	‐50	10	1	2.0	10	1	2.0
						24	7	1.3	24	7	1.3
						39	15	0.4	39	1	1.7
						110	3.5	1.8	110	1.5	3.7
						117	9	0.7	120	1	3.4
DAVRC102	Dave	214604	1419191	140	‐50	68	18	0.7	70	16	0.7	Resultspendingfor 0‐62m
DAVRC103	Dave	214691	1419258	140	‐50	74	10	18	74	8	22	Includes 2m at 74g/t Au
DAVRC104	Dave	214708	1419235	140	‐50	72	6	0.8	72	4	1.1
						88	10	2.5	88	8	3.0	Includes 2m at 8.3g/t Au
DAVRC105	Dave	214795	1419277	140	‐50	16	6	0.6
DAVRC106	Dave	214533	1419129	140	‐50	14	8	0.5
						38	42	0.4	66	2	2.0
DAVRC107	Dave	214557	1419097	140	‐50	28	26	0.7	34	4	1.4
									46	8	1.1
DAVRC108	Dave	214239	1419016	140	‐50	42	4	0.8	44	2	1.3
						56	4	0.6
DAVRC109	Dave	213896	1418796	140	‐50	12	2	6.9	12	2	6.9
DAVRC110	Dave	213868	1418835	140	‐50							No significant results
LATDD001	Laterite Hill	211071	1415013	140	‐50	109	3	0.3
LATDD002	Laterite Hill	212137	1415919	320	‐50	9	9	1.3	9	7	1.6
						39	4	1.1	39	4	1.1
						51	6	1.7	51	1	8.4
									56	1	1.6
LATRC001	Laterite Hill	210801	1414709	140	‐50	34	2	0.5	34	2	0.5
LATRC002	Laterite Hill	210828	1414679	140	‐50							No significant results
LATRC003	Laterite Hill	210856	1414649	140	‐50							No significant results

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Hole Number	Prospect	**Easting **	Northing	Azimuth (UTM)	Dip	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	Comments
						From (m)	Interval (m)	**Au g/t **	From (m)	Interval (m)	Au g/t
LATRC004	Laterite Hill	210883	1414619	140	‐50							No significant results
LATRC005	Laterite Hill	210909	1414590	140	‐50							No significant results
LATRC006	Laterite Hill	211005	1415089	140	‐50	18	2	0.9	18	2	0.9
						44	4	0.4
LATRC007	Laterite Hill	211031	1415059	140	‐50							No significant results
LATRC008	Laterite Hill	211059	1415027	140	‐50							No significant results
LATRC009	Laterite Hill	211083	1414998	140	‐50							No significant results
LATRC010	Laterite Hill	211110	1414966	140	‐50	36	6	4.3	36	5	5.1	Includes 1m at 22g/t Au
LATRC011	Laterite Hill	211139	1414935	140	‐50	37	2	0.7
LATRC012	Laterite Hill	211162	1414906	140	‐50	6	2	0.8	6	2	0.8
LATRC012	Laterite Hill	211162	1414906	140	‐50	62	2	0.6	62	2	0.6
LATRC013	Laterite Hill	211187	1414876	140	‐50	27	6	0.7	30	2	1.5
						46	8	1.0	50	4	1.9
						72	4	0.4
LATRC014	Laterite Hill	211212	1414843	140	‐50	0	4	0.3
						24	4	0.5	24	1	1.1
						68	4	0.5
LATRC015	Laterite Hill	211240	1414816	140	‐50	50	4	1.0	50	2	1.6
LATRC016	Laterite Hill	211262	1414784	140	‐50	10	6	0.3
LATRC017	Laterite Hill	211288	1414751	140	‐50	18	4	0.3
LATRC018	Laterite Hill	211317	1414725	140	‐50	4	4	0.4
						12	2	0.6
						32	6	1.3	34	4	1.8
						42	2	1.2	42	2	1.2
LATRC019	Laterite Hill	211342	1414692	140	‐50	50	8	1.1	50	4	1.7
						70	6	1.0	72	4	1.4
LATRC020	Laterite Hill	211370	1414660	140	‐50	6	8	0.5	6	2	1.1
						18	4	0.5
						46	2	0.6
LATRC021	Laterite Hill	210851	1415274	140	‐50							No significant results

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Hole Number	Prospect	**Easting **	Northing	Azimuth (UTM)	Dip	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	Comments
						From (m)	Interval (m)	**Au g/t **	From (m)	Interval (m)	Au g/t
LATRC022	Laterite Hill	210879	1415236	140	‐50	25	2	1.3	25	2	1.3
LATRC023	Laterite Hill	210902	1415214	140	‐50	7	4	0.5
						71	26	1.2	71	14	1.8
LATRC024	Laterite Hill	210931	1415182	140	‐50							No significant results
LATRC025	Laterite Hill	210956	1415149	140	‐50							No significant results
LATRC026	Laterite Hill	210982	1415119	140	‐50	34	11	1.3	34	7	1.5
LATRC027	Laterite Hill	211331	1415316	140	‐50							No significant results
LATRC028	Laterite Hill	211362	1415286	140	‐50							No significant results
LATRC029	Laterite Hill	211391	1415254	140	‐50	32	4	2.9	32	4	2.9
						40	2	0.6
LATRC030	Laterite Hill	211421	1415222	140	‐50							No significant results
LATRC031	Laterite Hill	211589	1415631	140	‐50	12	4	2.9	12	4	2.9
						28	4	0.6
						52	2	0.9	52	2	0.9
LATRC032	Laterite Hill	211615	1415604	140	‐50	4	4	0.5
LATRC033	Laterite Hill	211645	1415575	140	‐50	46	4	0.5	46	4	0.5
LATRC034	Laterite Hill	211672	1415543	140	‐50							No significant results
LATRC035	Laterite Hill	211896	1415892	140	‐50							No significant results
LATRC036	Laterite Hill	211923	1415861	140	‐50	40	6	1.3	40	4	1.8
LATRC037	Laterite Hill	211951	1415828	140	‐50							No significant results
LATRC038	Laterite Hill	211978	1415801	140	‐50							No significant results
LATRC039	Laterite Hill	212258	1416085	140	‐50	48	22	1.4	48	22	1.4
LATRC040	Laterite Hill	212283	1416055	140	‐50	0	24	0.9	0	24	0.9
LATRC041	Laterite Hill	212309	1416024	140	‐50							No significant results
LATRC042	Laterite Hill	212668	1416221	140	‐50	76	4	5.7	76	4	5.7
LATRC043	Laterite Hill	212695	1416188	140	‐50							No significant results

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Hole Number	Prospect	**Easting **	Northing	Azimuth (UTM)	Dip	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	Comments
						From (m)	Interval (m)	**Au g/t **	From (m)	Interval (m)	Au g/t
PSODD001	Prospect 71	208881	1413250	320	‐50	48	3	1.4	48	3	1.4
						136	1	1.0	136	1	1.0
						147	6	1.2	147	5	1.3
PSORC001	Prospect 71	208226	1412490	320	‐50							No significant results
PSORC002	Prospect 71	208199	1412520	320	‐50	50	4	0.3
						62	14	0.6	64	2	1.4
									74	2	1.3
PSORC003	Prospect 71	208172	1412548	320	‐50							No significant results
PSORC004	Prospect 71	208506	1412777	320	‐50	2	6	2.3	2	6	2.3
						28	22	0.4	34	4	0.7
PSORC005	Prospect 71	208480	1412808	320	‐50	66	10	0.6	70	4	0.8
PSORC006	Prospect 71	208454	1412838	320	‐50	4	22	0.5	6	2	1.3
PSORC007	Prospect 71	208747	1413086	320	‐50							No significant results
PSORC008	Prospect 71	208725	1413116	320	‐50							No significant results
PSORC009	Prospect 71	208696	1413147	320	‐50	48	6	0.9	48	6	0.9
PSORC010	Prospect 71	209067	1413352	320	‐50	20	2	1.3	20	2	1.3
						36	20	0.4	54	2	2.4
						72	6	0.3
PSORC011	Prospect 71	209040	1413381	320	‐50	2	2	1.2	2	2	1.2
PSORC012	Prospect 71	209016	1413414	320	‐50							No significant results
PSORC013	Prospect 71	208990	1413444	320	‐50							No significant results
PSORC016	Prospect 71	207614	1412240	110	‐50	42	6	0.4				Resultspending0‐40m
PSORC017	Prospect 71	207650	1412229	110	‐50	8	6	0.4
PSORC018	Prospect 71	207931	1412761	110	‐50	14	14	0.6	16	6	0.8
PSORC019	Prospect 71	207967	1412749	110	‐50	56	2	1.2	56	2	1.2
PSORC020	Prospect 71	208008	1412737	110	‐50	18	4	1.2	18	4	1.2
						42	2	1.1	42	2	1.1
PSORC021	Prospect 71	207914	1413412	110	‐50							No significant results

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Hole Number	Prospect	**Easting **	Northing	Azimuth (UTM)	Dip	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.25g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	0.5g/t Au cut‐off grade	Comments
						From (m)	Interval (m)	**Au g/t **	From (m)	Interval (m)	Au g/t
PSORC022	Prospect 71	207950	1413397	110	‐50	2	4	0.7	2	4	0.7
						14	6	0.3
						58	6	0.5
PSORC023	Prospect 71	207986	1413382	110	‐50							No significant results
PSORC024	Prospect 71	208027	1413372	110	‐50							No significant results
PSORC025	Prospect 71	208060	1413359	110	‐50	8	2	1.7	8	2	1.7
PSORC026	Prospect 71	208098	1413342	110	‐50							No significant results
PSORC040	Prospect 71	208012	1413800	110	‐50	10	6	0.5
						26	10	0.3
						50	24	0.4	60	2	1.9
PSORC041	Prospect 71	208051	1413785	110	‐50	26	32	1.7	26	24	2.1
PSORC042	Prospect 71	208096	1413773	110	‐50							No significant results
PSORC043	Prospect 71 West	203400	1411087	320	‐50	54	18	1.0	60	6	2.3
PSORC044	Prospect 71 West	203435	1411045	320	‐50	18	18	0.6	26	10	0.7
PSORC045	Prospect 71 West	204266	1411298	320	‐50							No significant results
PSORC046	Prospect 71 West	204236	1411334	320	‐50							No significant results

Notes regarding the drilling and the assay table:

1. Down‐hole surveys were performed on all holes.

2. Analytical standards, blanks and duplicates added to all sample batches for quality control.

3. Analyses were performed by fire assay at the SGS laboratory in Ouagadougou.

4. Average assay values are calculated with a maximum of 4m of internal waste.

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.

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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 Fergus Ross Managing Director Six Degrees Investor Relations Tel: +61 8 9216 1020 + 61 420 980 448 Email: paul.roberts@predictivediscovery.com

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