PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2013

Jan 24, 2013

25th January 2013

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ASX Announcement

– - Bira New Gold Bearing Tenement Added in Eastern Burkina Faso

Highlights

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

• Encouraging, shallow historic drill results reported by an Anglo American subsidiary company from new Bira permit include:

• 14.5m at 3.1g/t from 1m

• 13m at 2.5g/t Au from 3m

• 10m at 2.7g/t Au from 14m

ASX: PDI

• 23m at 1.2 g/t Au from 30m

Issued Capital: 234M shares

• 21m at 1.7g/t Au from 22m

• 20m at 1.4g/t Au from 99m

Share Price: 6.3 cents

• Gold mineralisation over at least 1km of strike, open to north and south .

Market Capitalisation: $15M

• Gold intercepts on adjacent sections and down-dip suggests good continuity of the mineralisation.

Cash (at 31 December 2012): $3.0M

• No artisanal workings known at Bira.

Directors

 Exploration including drilling planned

 Ground holdings in Burkina Faso increased to 1, 565 km[2] .

Phillip Harman Non-Exec Chairman

Mr Paul Roberts, the Company’s Managing Director commented: “The acquisition of Bira adds a significant new gold prospect to our portfolio with previously defined mineralisation that is open along strike in both directions. It has potential to increase PDI’s future resource inventory and considerably upgrades the potential of the northern Bonsiega tenements.”

Paul Roberts Managing Director

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) announces that the Government of Burkina Faso has invited the Company to pay fees on a permit application, Bira, in eastern Burkina Faso. In Burkina Faso, this invitation indicates that permit grant is imminent.

The new permit covers an area of 21km[2] in the northern part of the Bonsiega block of tenements (Figure 1), thereby strengthening the Company’s hold on the Samira Hill greenstone belt in Burkina Faso.

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Figure 1: PDI Eastern Burkina Faso Project, showing locations of new Bassieri and Bira permits.

Bira Permit

PDI has been interested in this area since 2010 when it commenced exploration in Burkina Faso. Until late last year, the area was unavailable for application because it was covered by a uranium exploration reserve. PDI applied for the ground after this reserve was removed.

The area was explored by Anglo American through its subsidiary Anmercosa in the late 1990’s. PDI holds a database of Anmercosa information including soil geochemistry and RC drill data from the Bira permit. The RC drill data includes a series of very encouraging gold intersections (Table 1 and Figure 2). While PDI does not have access to the quality control data and the original laboratory assay files, it has verified the location of some of the drill holes on the ground.

Gold mineralisation was intersected in a series of holes extending over more than 1km of strike. Some of the best intercepts (e.g. 14.5m at 3.1g/t Au and 13m at 2.5g/t Au ) were obtained from multiple, closely spaced ore zones in a series of shallow angled holes in two lines in the HL10 series of holes (Figure 2) which were drilled to depths of 15 to 30m.

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The consistency of reported intercepts both from section to section and down-dip from hole to hole in the southern part of the drilled area suggests good continuity, which, if confirmed by PDI’s own drilling, will be important for the future resource inventory.

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Figure 2: Historic drill results from the Bira permit, Burkina Faso.

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Figure 3: Cross section through Bira gold mineralisation. No vertical exaggeration.

Planned Work Program

Geological mapping and either air core or RC drilling will be carried out on the Bira permit. The work program will commence in the next month.

Table 1 – Anmercosa drill results

Hole No.	UTM East	UTM North	Azim uth	Inclin ation	0.25 g/t Au cut-off grade	0.25 g/t Au cut-off grade	0.25 g/t Au cut-off grade	0.5 g/t	Au cut-off	grade
					Depth from (m)	Interval (m)	Au (g/t)	Depth from (m)	Interval (m)	Au (g/t)
HL10/TB3	269379	1460425	285	-60	12	6	1.8	12	6	1.8
HL10/TB4	269371	1460428	285	-60	1	15.5	3.0	2	14.5	3.1
HL10/TB5	269361	1460430	285	-60	3	13	2.5	3	13	2.5
HL10/TB6	269355	1460432	285	-60	3	2	1.4	3	2	1.4
HL10/TB6	269355	1460432	285	-60	9	8	0.6	11	1	2.1
HL10/TB7	269402	1460471	285	-60	30	1	3.2	30	1	3.2
HL10/TB8	269387	1460478	285	-60	14	16	1.9	14	10	2.7
HL10/TB9	269373	1460482	285	-60	2	15	0.9	2	10	1.2
RC-48	269391	1460421	285	-50	28	25	1.1	30	23	1.2

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RC-48	269391	1460421	285	-50	61	2	1.8	61	2	1.8
RC-49	269429	1460409	285	-50	23	7	1.4	23	7	1.4
RC-49	269429	1460409	285	-50	68	13	1.1	68	8	1.6
RC-49	269429	1460409	285	-50	84	12	1.7	84	12	1.7
RC-49	269429	1460409	285	-50	115	2	1.1	115	2	1.1
RC-50	269388	1460317	285	-50	93	6	0.9	93	5	1.0
RC-51	269427	1460305	285	-50	107	26	0.9	107	8	0.7
RC-51	269427	1460305	285	-50				117	16	1.2
RC-52	269335	1460227	285	-50	13	24	1.0	13	16	1.3
RC-52	269335	1460227	285	-50	48	3	0.8	48	3	0.8
RC-53	269374	1460216	285	-50	49	21	1.3	49	20	1.3
RC-54	269347	1460119	285	-50	22	30	1.3	22	21	1.7
RC-55	269482	1460504	285	-50	37	2	1.2	37	2	1.2
RC-55	269482	1460504	285	-50	72	7	0.5
RC-55	269482	1460504	285	-50	91	2	1.0
RC-55	269482	1460504	285	-50	98	21	1.3	99	20	1.4
RC-56	269436	1460503	285	-50	26	4	0.5
RC-56	269436	1460503	285	-50	40	1	2.2	40	1	2.2
RC-56	269436	1460503	285	-50	46	22	1.0	54	14	1.3
RC-57	269470	1460607	285	-50	23	2	0.9	23	2	0.9
RC-57	269470	1460607	285	-50	52	6	0.5	53	4	0.7
RC-58	269514	1460594	285	-50	93	3	0.7	93	3	0.7
RC-60	269547	1460689	285	-50	75	7	1.1	76	6	1.2
RC-63	269694	1460953	285	-50	80	2	1.5	80	2	1.5
RC-64	269614	1461085	285	-50	11	3	1.9	11	3	1.9
RC-64	269614	1461085	285	-50	52	1	2.0	52	1	2.0
RC-64	269614	1461085	285	-50	67	16	0.9	67	10	1.2
RC-70	269711	1461059	285	-50	33	1	3.3	33	1	3.3
TA-RC20	270545	1461729	300	-60	17	4	0.6
TA-RC20	270545	1461729	300	-60	26	5	0.5	26	3	0.7
TA-RC21	270576	1461711	300	-65	52	7	0.6	53	2	1.2

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

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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

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