PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2013

Sep 19, 2013

PO Box 226 Subiaco WA 6904 ABN 11 127 171 877

p (08) 9388 8290 f (03) 9388 8256

20 September 2013

w www.predictivediscovery.com

INFORMATION REQUIRED UNDER LISTING RULE 3.10.5A

Further to the Appendix 3B lodged today (amending the Appendix 3B lodged 11 September 2013) for the issue of 35,500,338 fully paid ordinary shares at 1.9 cents per share in a placement to private investors (‘Placement’), the Company provides the following information required under ASX Listing Rule 3.10.5A.

The dilutive effect of the Placement on existing shareholders is as follows:

Placement issue under ListingRule 7.1A(22,305,436 shares)	8.22%
Placement issue under ListingRule 7.1(13,194,902 shares)	4.86%
Total dilution as a result of Placement	13.08%

Details of the approximate percentage of the issued capital following completion of the Placement held by pre-Placement shareholders and new shareholders are as follows. Please note this information relates specifically in relation to the portion of shares issued under listing rule 7.1A (22,305,436 shares).

Pre-Placement shareholders who did notparticipate in the Placement	84.80%
Pre-Placement shareholders who didparticipate in the Placement	14.10%
Participants in the Placement who were notpreviouslyshareholders	1.10%

The Company issued the shares as a placement under listing rule 7.1A as it was of the view that this was the most efficient mechanism for raising funds at the time. The Company had also received strong support from existing major shareholders and brokers to support the Placement making it a more reliable process to fund.

There was no underwriter to the Placement. The Company paid a 6% commission to BBY Limited on funds raised of $19,000 and Patersons Securities Limited on funds raised of $200,000.

Yours sincerely

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Ian Hobson Company Secretary