PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2013

May 27, 2013

28[th] May 2013

Predictive Discovery Limited is a gold exploration company with an advanced exploration project in Burkina Faso, West Africa and strong technical capabilities.

ASX: PDI

Issued Capital: 234M shares Share Price: 2.7 cents

Market Capitalisation: $6M Cash at 31 March 2013: $2.2M

Directors

Phillip Harman Non-Exec Chairman

Paul Roberts Managing Director

Phil Henty Non-Executive Director

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ASX Announcement

New gold mineralised targets near Bongou Highlights:

• Power auger drilling has identified several new gold anomalies close to the recent Bongou discovery in Burkina Faso.

• Gold anomalies identified in this program are comparable in size to Bongou itself, where recent drilling has intersected:

• 48m at 4.3 g/t A u from 34m

• 26m at 6.9g/t Au from 111m

• 10m at 7.4g/t Au from 47m

• The most promising new target is in altered granite, like Bongou, and is open to the east.

• Peak power auger gold values are consistent with surface sampling at Bongou.

Mr Paul Roberts, the Company’s Managing Director commented: “The recent excellent drill results from Bongou have opened up an exciting new exploration front for us along the 43km Bongou Fault trend. Our immediate focus is on exploring for more Bongou-like targets near the Bongou discovery and identifying further targets along the Bongou Fault.

The power auger results, reported today, have added to the resource potential in the immediate vicinity of Bongou area and confirm that exploration of the very large Bongou Fault zone has a long way to run. We have now shown that there is more gold-bearing altered granite very close to the recently drilled area, increasing the potential for discovering substantial resources of this ore type within 1km of the known mineralisation. In addition, we are part way through exploring more targets 4km and 10km to the north-east on the same large structure as Bongou itself.

We are now actively following up these results with additional infill and extension power auger drilling and trenching.”

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INTRODUCTION

PDI’s major country focus is Burkina Faso, West Africa where it has established a well-qualified Burkina-based exploration team and a large regional tenement package mainly in the north east of the country covering 1,605km[2] (Figure 1).

PDI’s tenement holding covers approximately 100 km of strike length in the Samira Hill greenstone belt in eastern Burkina Faso (the Bonsiega permit group, Figure 1). This belt hosts the 2.5 million ounce Samira Hill gold mine across the border in Niger and contains numerous active artisanal gold mine sites along its length. The Bangaba permit covers 10km of strike of the nearby Sebba Belt, including the largest known artisanal workings in that belt. PDI now owns 100% or rights to earn 95 to 100% of all its permits in Burkina Faso.

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

At the Bongou Prospect, PDI has discovered a new style of gold mineralisation for the area, consisting of strongly altered granite containing disseminated pyrite. RC drilling in the last twelve months has obtained a series of highly encouraging drill intercepts, including:

• 48m at 4.3 g/t Au from 34m,

• 26m at 6.9g/t Au from 111m,

• 20m at 4.8g/t Au from 70m and

• 10m at 7.4g/t Au from 47m.

This mineralisation shows good widths and ore continuity and includes a high grade component on the mineralisation’s hanging wall contact, averaging (at a 3g/t Au cut-off) approximately 10 g/t Au . Preliminary cyanidation test work on one 20kg composite drill sample recovered 94% of the gold. PDI’s current strategy is to discover more Bongou-style mineralisation both beneath the Bongou

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artisanal workings and along strike from the Prospect in the vicinity of the Bongou Fault. Discovery of more mineralisation of this type may well lead to rapid definition of substantial ore resources with above average gold grades and simple metallurgy.

Rock chip samples of weathered mineralised granite in walls of the Bongou artisanal workings average approximately 1g/t Au. This is despite the fact that unweathered, high grade gold mineralisation has been intersected within 30m of the surface, down-dip from the same mineralisation. This discrepancy may be explained by gold removal from pyrite in the top 10 to 20m of the deposit during weathering. Consequently, surface grades in new Bongou-style discoveries of around 1g/t Au may be succeeded at depth by substantially higher grades, as they are at Bongou.

POWER AUGER GEOCHEMICAL DRILLING

PDI carried out a 296 hole power auger drilling program near the Bongou artisanal workings in late April and early May in order to follow up induced polarisation survey anomalies discovered in April. The drilling was designed to discover additional bodies of mineralisation with extents comparable to Bongou itself (i.e. approximately 150m x 30m). Holes were therefore drilled on a 100m x 25m grid with the understanding that a single point gold anomaly could represent another Bongou-sized deposit . Samples were collected at the interface between the overlying cover and the weathered bedrock and analysed by for gold by AAS at SGS in Ouagadougou.

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Figure 2: Power auger gold geochemistry contour plan. Note size of Bongou gold mineralised zone for comparison with size of the discovered gold anomalies.

This program identified several promising anomalies with peak values comparable to surface sampling in the Bongou artisanal workings (Figure 2). Of these, the most interesting is a 300m long anomalous zone, open to the east , located north-west of the drilled area. Peak values in this zone are 525ppb Au and 423ppb Au . These values are significant as they are half the target average grade in weathered mineralisation. Also, the values in these samples are probably reduced relative to the

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actual bedrock value because of mixing with very low grade cover material in the “interface” sample. Logging of these samples indicates that the source of the anomaly is altered granite, showing that this is a good candidate for a second Bongou-style deposit.

Several other anomalies (Figure 2) could also represent a Bongou-type gold mineralisation. The bedrock at these other locations has not been identified but weathered altered granite is a possibility.

The power auger results have also highlighted the area north of the Bongou artisanal workings (Figure 2), where areas under thin cover may conceal additional gold anomalies.

ONGOING WORK PROGRAM

PDI carried out power auger drilling over two additional target areas, respectively 4km and 10km north-east of Bongou, during May (Figure 3). Coverage was incomplete because of difficult access and wet conditions in areas of thick alluvial cover following unseasonal heavy rains. Ongoing access difficulties mean that these programs will be completed in next field season.

At Bongou itself, the power auger rig is now returning to complete infill and extension drilling around the new anomalies in order to properly define drill targets for RC drilling. In addition, trenching has commenced over the 525ppb gold anomaly (Figure 2). On receipt of the new results, PDI will be in a position to plan a new RC drilling program. Execution of this program may be delayed until after the rainy season if the recent unseasonal heavy rains continue.

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Figure 3: Regional geology plan showing Bongou Prospect and the 43km extent of the Bongou Fault within PDI’s permits. The stippled line ellipses north-east of Bongou were partly drilled with power auger during May 2013.

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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 1,605km[2] and is exploring for large open-pittable gold ore deposits.

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

Ian Hobson

Managing Director

Tel: +61 8 9216 1020

Email:

Company Secretary Tel: +61 8 9216 1020 Email: ianhobson@bigpond.com

paul.roberts@predictivediscovery.com

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