PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2013

Apr 9, 2013

10[th] April 2013

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ASX Announcement

Outstanding High Grade Gold Drill Results from Bongou

Highlights:

• Results from the recent five hole RC drilling program at the Bongou Prospect, Burkina Faso in March, 2013 included:

Predictive Discovery

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

• BNGRC010: 48m at 4.3g/t Au from 34m incl. 16m at 9.7g/t Au , and

• BNGRC010: 11m at 1.4g/t Au from 91m

• BNGRC014: 23m at 6.9g/t Au from 111m incl. 16m at 8.9g/t Au , and

o BNGRC014 : 7m at 3.9g/t Au from 141m

True widths are estimated at 85-95% of the above down-hole intervals.

ASX: PDI

• This program augments previous drill results including:

• BNGR001: 54m at 2.1g/t Au from 36m incl. 20m at 4.8g/t Au

Issued Capital: 234M shares

• BNGR004: 10m at 7.4g/t Au from 47m.

Share Price: 3.4 cents

• BNGR003: 102m at 1.1 g/t Au from 4m incl. 14m at 3.0g/t Au

Market Capitalisation: $8M

• BNGR004: 70m at 1.2g/t Au from 62m incl. 18m at 1.8g/t Au

Cash (at 31 December 2012): $3.0M

• The high grade zone is open to depth and may also plunge to the east.

• Lower grade gold mineralisation up to 20m in true width is found consistently close to and south of the high grade gold zone.

Directors

• Gold mineralisation consists of an intensely silicified, quartz veined and pyritic microgranite. Recognition of the Bongou gold mineralisation style has opened up a large new area for exploration within the Bonsiega Gold Project permit group

Phillip Harman Non-Exec Chairman

Paul Roberts Managing Director

• Additional potential is indicated by:

Bobby Danchin Non-Executive Director

• Intermittent granite outcrops through areas of extensive thin cover extending over at least 3km of strik e around Bongou with two priority target areas identified nearby to the west and East .

c Tom Whiting Non-Executive Director

• Two new target areas identified 4km and 10km north east of Bongou both on the 43km of Bongou fault strike within PDI’s exploration permits.

Phil Henty Non-Executive Director

• Ongoing exploration program includes additional drilling, ground geophysics and geochemical drilling of nearby targets and preliminary metallurgical test work of gold mineralised RC samples .

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Mr Paul Roberts, the Company’s Managing Director commented: “PDI’s focus in the current field season has been on testing Prospects which show the most promising combination of ore continuity, gold grade and width. These outstanding new drill results have shown that the Bongou Prospect meets all three criteria very well. We are especially encouraged by the discovery of a high grade zone which appears to correlate from hole to hole with average grades to date of about 10g/t Au. The peripheral lower grade gold mineralisation also shows good continuity from hole to hole and extends both below and along strike from the high grade zone.

Our work in this area has only just begun. There is potential for multiple zones of Bongou-style gold mineralisation in the large, and mostly unexplored fault zone which passes through Bongou and extends for 43km of strike length within PDI’s ground. Our geological mapping along that fault zone has identified multiple outcrops of granite, which hosts the gold mineralisation at Bongou, in areas of extensive thin cover. Electrical geophysical surveys within a 1.5km radius of Bongou have identified anomalies indicative of disseminated sulphides, some of which may be gold mineralised granite bodies. Over the 10km of structure north-east of Bongou, two large areas with potential for concealed Bongou-style mineralisation have also been identified. More detailed geophysical and geochemical surveys to test these targets will be carried out in the next month.”

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Figure 1: Locality of Bongou Prospect and PDI permits in Burkina Faso.

Background

The Bongou Prospect is located within the Laterite Hill Gold Field in Eastern Burkina Faso (Figure 1). It covers artisanal workings forming an irregular open pit approximately 150m long and 50m wide. Past

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exploration by PDI included rock chip sampling, trenching and completion of nine RC holes hole in May and December 2012 which obtained series of encouraging gold intercepts, including:

• 54m at 2.1g/t Au from 36m including 20m at 4.8g/t Au

• 10m at 7.4g/t Au from 47m.

• 102m at 1.1 g/t Au from 4m including 14m at 3.0g/t Au

• 70m at 1.2g/t Au from 62m including 18m at 1.8g/t Au

January-March 2013 Exploration Program

In January and February, 2013, PDI carried out:

• Geological mapping along 20km of the Bongou Fault’s strike length.

• A reconnaissance gradient array induced polarisation (“IP”) geophysical survey and a ground magnetic survey over 3km of prospective strike length surrounding the Bongou Prospect.

• A small program of soil sampling adjacent and just west of the Bongou artisanal workings.

Analysis of this data has defined four areas of interest along strike from Bongou , two close by to the drilled area to the west and east and two other newly identified areas, approximately 4km and 10km ENE of the Bongou workings.

RC Drilling Program

A five hole RC drilling program totalling 757m was completed in March 2013 (Figure 2). The holes were designed both to infill earlier intercepts and to identify extensions at depth or along strike. The previous (December) drill program showed that the mineralisation is dipping to the north, so all the holes drilled in the March program were drilled from north to south.

Logging of the RC chips during the drilling program showed that the mineralisation is affected by a complex shear zone at its western end with apparently less structural complexity to the east. The last hole, BNGRC014 was therefore designed to test the eastern end of the zone. One other hole, BNGRC013, was designed to test a geophysical (IP) anomaly associated with surficial gold workings. While altered basalt and gabbro were intersected, none of the target mineralised microgranite was logged.

Assay results are listed in Table 1 and shown on Figure 2. Better gold intersections (at a 0.5g/t cut-off grade) are listed below. True widths are estimated to be between 85% and 95% of the following intercept lengths.

• BNGRC010:

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

• 11m at 1.4g/t Au

• BNGRC012:

o 4m at 1.7g/t Au from 146m and 6m at 1.2g/t Au from 160m within a broader zone of 21m at 0. 8g/t Au .

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• BNGRC014:

• 23m at 6.9/t Au from 111m including 16m at 8.9g/t , and

• 7m at 3.9g/t Au from 141m

Assay results are provided in Table 1. Cross sections through the two high grade intercepts in holes BNGRC010 and BNGRC014 are shown in Figures 3 and 4.

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Figure 2: Plan view of Bongou Prospect showing drill hole locations and drill intercepts.

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Figure 3: Cross-section through RC hole BNGRC010. No vertical exaggeration.

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Figure 4: Cross-section through RC holes BNGRC002 and BNGRC014. No vertical exaggeration.

Conclusions from the drilling program include the following :

• Some of the earlier north-directed drilling had failed to cross the entire mineralised zone and therefore missed the target high grade mineralisation close to the gabbro contact at the northern edge of the microgranite (Figures 3 and 4). These includes holes BNGRC001 ( 62m at 1.2g/t Au ) and possibly BNGRC002 ( 20m at 4.8g/t Au ).

• The lower grade “footwall” gold mineralisation shows good continuity from hole to hole and extends beyond the limits of the higher grade zone towards the west, where it is affected and partly cut off by a complex NE oriented shear zone.

• The high grade zone is open to depth and may also plunge to the east .

• In places gold-bearing mineralisation has an aggregate width of up to 50m .

• Altered gold-bearing microgranite was intersected above the main microgranite-gabbro contact in hole BNGRC014 (see Figure 4). This granite is not observed at surface suggesting that it might widen with depth , possibly enlarging the width of the target microgranite below where it has been drilled so far.

Resource Discovery Potential

Recognition of the Bongou gold mineralisation style has opened up a large new area for exploration

within the Bonsiega Gold Project permit group . The gold mineralisation is located on a very long, deep fault zone which appears to have been the source of the mineralising fluids which formed the Bongou deposit. Bongou itself lies within a 3km long zone of structural complexity within this fault zone and there

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are other comparable areas along strike to the north-east. An estimated 43km of this fault zone lies within PDI permits. PDI’s geological mapping has already identified scattered granitic outcrops at multiple locations along this structure even though much of the fault strike extent lies under thin cover. Apart from PDI’s recent drilling at Bongou, there has been no previous effective exploration of this fault zone . Therefore the Company believes that there is substantial potential to discover more Bongou-style mineralisation along strike from Bongou.

Planned Work Program

A detailed induced polarisation geophysical survey will commence tomorrow to test for high priority target areas for disseminated sulphide mineralisation in two areas west and east of and 200-1000m from the Bongou artisanal workings. Anomalous zones will be followed up with detailed geochemical drilling.

Two other target areas along the Bongou Fault Zone north-east of the Bongou Prospect have been selected for geochemical sampling (Figure 5). Power auger drilling and/or soil sampling will be carried out there in the next 4 weeks.

Gold mineralised RC chips from Bongou hole BNGRC001 have now arrived in Perth for preliminary metallurgical test work. Results are expected in May 2013.

Follow up drilling to test the Bongou mineralisation further along strike and at depth is also planned.

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Figure 5: Geological map of Bongou area showing location of the three high priority target zones along the major Bongou Fault Zone (red dashed line ellipses)

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Table 1 – Bongou RC drilling assay results

Hole No.	UTM East	UTM North	Azim uth	Inclin ation	0.25g/t Au cut-off	0.25g/t Au cut-off	0.25g/t Au cut-off	0.5g/t Au cut-off	0.5g/t Au cut-off	0.5g/t Au cut-off	Comments
					From (m)	Interval (m)	Au (g/t)	From (m)	Interval (m)	Au(g/t)
BNGRC010											includes 16m at 9.7g/t
	207467	1422202	153	-50.0	34	50	4.11	34	48	4.27	Au
BNGRC010	207467	1422202	153	-54.0	91	11	1.45	91	11	1.45
BNGRC011	207394	1422167	153	-54.0	4	4	0.69	4	4	0.69
BNGRC011	207394	1422167	153	-56.0	103	8	0.51	105	2	1.14
BNGRC012	207405	1422239	153	-56.0	146	4	1.65	146	4	1.65
											21m at 0.78g/t Au from
BNGRC012	207405	1422239	153	-56.0	154	2	0.95	155	1	1.59
											146m
BNGRC012	207405	1422239	153	-56.0	159	8	0.97	160	6	1.17
BNGRC013	207228	1422247	178	-50.0	114	4	0.28
BNGRC014	207483	1422272	150	-56.0	90	9	0.68	90	2	1.00
BNGRC014											includes 16m at 8.9g/t
			150	-56.0
	207483	1422272			111	24	6.58	111	23	6.85	Au
BNGRC014	207483	1422272	150	-56.0				95	4	0.87
BNGRC014	207483	1422272	150	-56.0	141	10	2.86	141	7	3.89
BNGRC014	207483	1422272	150	-56.0	155	9	0.76	156	3	1.43
BNGRC014								161	2	0.79
			150	-56.0
	207483	1422272
Notes: 1. Down-hole surveys were performed on all holes. 2. Analytical standards, blanks and duplicates were 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 2m of internal waste except for one broad intercept noted in the Comments column. 5. High grade intervals (in the Comments column) were calculated using a 3g/t Au cut-off grade.

Notes:

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

2. Analytical standards, blanks and duplicates were 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 2m of internal waste except for one broad intercept noted in the Comments column.

5. High grade intervals (in the Comments column) were calculated using a 3g/t Au cut-off grade.

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 1,565km[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

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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

Managing Director Company Secretary Tel: +61 8 9216 1020 Tel: +61 8 9216 1020 Email: Email: ianhobson@bigpond.com paul.roberts@predictivediscovery.com

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