PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2013

Sep 4, 2013

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ASX Announcement Capital Raising and Exploration Update

5[th] September 2013

Predictive Discovery

Limited is a gold exploration company with strong technical capabilities focused on its advanced exploration project in Burkina Faso, West Africa.

Placement

Predictive Discovery Limited (ASX: PDI ) is pleased to announce that it is undertaking a placement of up to $1.2 million (up to 63,157,895 shares at 1.9 cents) to sophisticated investors. The Company has now received firm commitments of over $1.1 million. The raising has been strongly supported by the Company’s existing shareholders including PDI’s Board.

ASX: PDI

The raising is being carried out in two tranches, the first for $674,500 (35,500,000 shares) within PDI’s existing 25% placement capacity and the second of up to $525,500 (27,657,895 shares), which will require shareholder approval at an Extraordinary General Meeting to be held in October, 2013.

Issued Capital: 236M shares

Share Price: 1.9 cents

Market Capitalisation: $4.5M

African Lion 3 Fund Support

The capital raising announced today has been strongly supported by the African Lion 3 Fund ( AFL3). AFL3 are contributing $500,000 to the placement. In addition, the Company is very pleased to announce that a new Director nominated by AFL3 will join PDI’s Board.

Cash (at 30 June 2013): $1.3M

Directors

Exploration Update

Phillip Harman Non-Exec Chairman

PDI’s immediate exploration focus is on the high grade Bongou Prospect where RC drilling in the past field season obtained a series of excellent gold intercepts including:

Paul Roberts Managing Director

• 48m at 4.3g/t Au from 34m including 16m at 9.7g/t Au

Phil Henty Non-Executive Director

• 26m at 6.9g/t Au from 111m including 16m at 8.9g/t Au

• 10m at 7.4g/t Au from 47m

The Bongou mineralisation exhibits good widths and continuity, with high gold grades on the northern margin of the deposit. Preliminary metallurgical testwork has returned a 94% gold recovery from primary gold mineralisation. In addition, there is considerable potential for more Bongou-style gold mineralisation along strike.

The funds raised will be used for two main purposes:

• Diamond drilling to test extensions to the known Bongou gold mineralisation, and

• RAB or air core drilling to test for more Bongou-style gold mineralisation along strike from Bongou itself.

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The diamond drilling program will commence at the end of the rainy season probably in late October. The RAB/aircore program will start in the March Quarter after crops have been cleared and the wet ground in the target areas have dried out. Low cost, reconnaissance exploration programs will also commence on PDI’s two, newly granted Cote D’Ivoire permits.

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Figure 1: Locality of PDI permits, showing location of Bongou Prospect.

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Figure 2a and 2b: Bongou Cross Sections (a) Left - through RC drill holes BNGRC002 and BNGRC014, (b) Right - through RC drill hole BNGRC010. No vertical exaggeration.

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Predictive Discovery Limited (PDI) was established in late 2007. The Company is focused on exploration for gold in West Africa. PDI has a distinctive technological capability, known as Predictore ® , 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 1,605km[2] and is exploring for large open-pittable gold deposits. Exploration in eastern Burkina Faso has yielded a large portfolio of exciting gold prospects, including the Bongou trend where a series of high grade gold drill intercepts have been obtained recently. PDI also has interests in a strategic portfolio of tenements and tenement applications in Cote D’Ivoire.

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. 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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