PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2013

Jan 29, 2013

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ASX Announcement

30th January 2013

More Encouraging High Grade Gold Intercepts in Burkina Faso

Highlights

Predictive Discovery

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

• High grade gold intercepts from December drilling program include:

• Solna Prospect

  • 2m at 26g/t from 70m including 1m at 51g/t Au

  • 2m at 12g/t from 12m including 1m at 21g/t Au

• Madyabari Prospect

ASX: PDI

• 3m at 8.3g/t Au from 23m including 1m at 21g/t Au

Issued Capital: 234M shares

• 2m at 8.3g/t Au from 34m including 1m at 14g/t Au

Share Price: 5.4 cents

• Tambiri South Prospect

Market Capitalisation: $13M

• 4m at 6.1g/t Au from 83m including 1m at 14g/t Au

o Prospect 71 :

Cash (at 31 December 2012): $3.0M

 3m at 6.1g/t Au from 69m including 1m at 14g/t Au

• Drilled gold mineralisation at the newly identified Madyabari target is near-horizontal, shallow and open in all directions .

Directors

• Resource potential at moderate depths in Tambiri South Prospect

Phillip Harman Non-Exec Chairman

• After this prioritisation program, follow up drilling is planned for Bongou, Madyabari, the newly acquired Bira Prospect and Tambiri South.

Paul Roberts Managing Director

Mr Paul Roberts, the Company’s Managing Director commented: “Our small December 2012 drilling program was aimed at testing high grade drill targets within our Eastern Burkina Faso Project for prioritisation of ongoing exploration activities. Encouraging grades were confirmed at all of the drilled prospects including Bongou, which we reported on last week. These results further enhance the pipeline of prospects and targets in PDI’s Eastern Burkina Faso Project and offer two obvious targets for follow-up drilling.”

Bobby Danchin Non-Executive Director c

Tom Whiting Non-Executive Director

Phil Henty Non-Executive Director

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Predictive Discovery Limited (ASX: PDI) is pleased to release drilling results from four prospects tested in its December 2012 RC drilling program. That program was aimed at five locations where high gold grade mineralisation had been obtained in previous sampling or drilling. Results from the first prospect drilled, Bongou, were announced on the ASX on 22[nd] January, 2013. This release describes drill results from 19 RC holes, totalling 1,818m, completed at the Madyabari, Tambiri South, Solna and Prospect 71 prospects (Figure 1).

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Figure 1: PDI Eastern Burkina Faso Project, showing locations of drilled prospects reported in this release.

Madyabari Prospect

The Madyabari Prospect is the site of an artisanal miner gold rush reported in November 2012. PDI geologists mapped over 1,500 artisanal mine shafts on the site in November-December (Figure 2), most of which had been excavated between July and November 2012.

Four vertical RC holes, totalling 280m, were drilled at Madyabari out of a planned six hole reconnaissance program (Figure 2). Holes were drilled on an 80 x 80m grid. Two of the planned holes remain undrilled because of access difficulties. The drilling intersected mineralised quartz veins in weathered mafic volcanics at depths between 23 and 36 metres. Based on the drilling results and the artisanal miners’ own descriptions, these veins appear to be approximately horizontal.

Gold mineralised quartz was intersected in all four holes, the best intercept being 3m at 8.3g/t Au from 23m, including 1m at 23g/t Au . In one hole, a void was intersected suggesting that possible high grade quartz vein material had already been removed by artisanal miners.

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As Figure 2, demonstrates, only a small portion of the active artisanal mining site has been tested so far. The gold mineralised zone is open in all directions and may well extend beyond the limit of current artisanal mining activity. Follow-up drilling is planned.

Drill assay results are provided in Table 1.

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Figure 3: Drill location plan and results, Madyabari Prospect, Burkina Faso. Each small square is an artisanal mine shaft.

Tambiri South Prospect

The Tambiri South Prospect is located approximately 1.5km south of the previously drilled Tambiri Prospect (Figure 4) on the same mineralised structure. Five RC holes , spaced 100m apart and totalling 530m, were completed in an area where historic drilling is reported to have encountered up to 6m at 5.2 g/t Au . All five holes intersected gold mineralisation in quartz-veined mafic volcanics with the best intercept being 4m at 6.1g/t Au from 83m including 1m at 14g/t Au . As at the main Tambiri prospect, the gold-mineralised quartz vein zone is steeply dipping and appears to be continuous.

Interpretation of the drill results at the main Tambiri Prospect shows that the high grade ore shoot there has a sub-horizontal plunge. Potential exists for discovery of a comparable shoot at Tambiri South at slightly greater depths than have been tested so far. The 4m at 6.1 g/t Au intercept may lie near the upper boundary of such a zone (Figure 5). Additional deeper drilling is planned to test this target.

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Figure 4: Bangaba Permit showing location of Tambiri South and Solna Prospects. Approximate location of bedrock geochemical anomalies is outlined in filled pink ellipses.

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Figure 5: Tambiri South – longitudinal projection indicating location of possible higher grade and width target zone

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Solna Prospect

Six RC holes, totalling 688m, were drilled at Solna to test for high grade sub-horizontal ore shoots. Gold mineralisation was obtained in five of the six holes. The highest grade intercept was 2m at 26g/t Au from 70m including 1m at 51g/t Au . Several intercepts were obtained from previously unrecognised and/or unmined gold-mineralised quartz veins, the best being 2m at 11.7g/t Au from 12 m including 1m at 21g/t Au (Figure 6) .

Drilling at Solna continues to generate good intersections however the geological controls on mineralisation are not completely understood. While there is potential for a significant amount of high grade gold mineralisation, PDI’s immediate focus for the remainder of the current field season is on prospects with clearer ore continuity such as Bongou, Bira, Tambiri and Madyabari.

Drill assay results are provided in Table 1.

Prospect 71

Prospect 71 covers a very large bedrock geochemical anomaly within the Laterite Hill Gold Field (Figure 1). Four holes were drilled, totalling 320m, follow up drilling results obtained previously by PDI and a former explorer, Emerging African Gold, including 4m at 15g/t Au and 4m at 7.5g/t Au . One significant intersection was obtained – 3m at 6.1g/t Au including 1m at 14g/t Au . Drill assay results are provided in Table 1.

Planned Exploration Activities

The focus of the relatively small drilling program reported in this release was to assist in prioritisation of future exploration activities in order to maximise drilling efficiencies and maximise results for the funds outlaid to build a mineral resource inventory. As a result, follow-up drilling during the current field season is planned at Bongou Madyabari, the newly acquired Bira Prospect and Tambiri South .

Table 1 – Drill results

Hole number	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	Inter val	**Au g/t **	**From **	Inter val	Au g/t
PSORC047	208169	1413223	296	-60	26	4	0.41
PSORC047	208169	1413223	296	-60	58	4	0.42
PSORC048	208307	1413370	296	-60	69	3	6.06	69	3	6.06	Includes 1m at 13.9g/t Au
PSORC049	208326	1413475	296	-50							no significant result
PSORC050	208359	1413452	296	-50							no significant result
MADRC001	220883	1424778	310	-90	23	3	8.28	23	3	8.28	includes 1m at 23.2g/t Au
MADRC002	220853	1424850	310	-90	36	1	0.92	36	1	0.92

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MADRC003	220918	1424882	310	-90	28	1	0.91	28	1	0.91	intersected artisanal working 27-28m (high grade removed?)
MADRC004	220981	1424913	310	-90	34	2	8.25	34	2	8.25	Includes 1m at 14.2g/t Au
TMBRC029	226738	1486294	292	-60	64	2	1.21
TMBRC030	226698	1486203	292	-60	74	4	2.37	74	4	2.37
TMBRC031	226662	1486113	292	-60	83	4	6.07	83	4	6.07	includes 1m at 13.7g/t Au
TMBRC032	226624	1486020	292	-60	69	1	3.08	69	1	3.08
TMBRC033	226583	1485926	292	-60	53	2	1.22	53	2	1.22	53-86m (33m) at 0.33g/t Au
TMBRC033	226583	1485926	292	-60	79	2	1.11	79	1	1.77
TMBRC033	226583	1485926	292	-60	85	1	3.08	85	1	3.08
SOLRC052	224752	1479575	284	-60.5	68	1	0.78	68	1	0.78
SOLRC053	224708	1479462	284	-50	12	2	11.70	12	2	11.7	includes 1m at 21.0g/t Au
SOLRC054	224702	1479581	284	-50							no significant result
SOLRC055	224737	1479696	284	-52.5	24	4	0.58	25	3	0.68
SOLRC055	224737	1479696	284	-52.5	39	4	2.34	40	3	2.97	artisanal workings intersected in this are (high grade quartz removed?)
SOLRC055	224737	1479696	284	-52.5	70	2	26	70	2	26.0	includes 1m at 51.1g/t Au
SOLRC056	224916	1479699	284	-53.5	126	2	1.32	126	1	2.21
SOLRC057	225040	1479774	284	-55	103	1	1.22	103	1	1.22
SOLRC057	225040	1479774	284	-55	111	2	0.51
SOLRC057	225040	1479774	284	-55	147	2	1.14	148	1	1.99
1. Down-hole surveys were performed on holes drilled at Tambiri South, Solna and Prospect 71. 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.

1. Down-hole surveys were performed on holes drilled at Tambiri South, Solna and Prospect 71.

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.

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.

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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 Managing Director Tel: +61 8 9216 1020

Email: paul.roberts@predictivediscovery.com

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