PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2014

Oct 21, 2014

22[nd] October 2014

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ASX

Announcement

Predictive Discovery Limited is a gold exploration company with strong technical capabilities focused on its advanced gold exploration projects in West Africa.

ASX: PDI

Issued Capital: 407M shares Share Price: 0.8 cents

Market Capitalisation: $3.3M

Directors

Phillip Harman Non-Exec Chairman Paul Roberts Managing Director

Phil Henty Non-Executive Director

Tim Markwell Non-Executive Director

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Predictive Welcomes Investment in Cote D’Ivoire Projects

Predictive Discovery Limited (ASX: PDI) is pleased to announce that it has signed a Heads of Agreement with Toro Gold Limited (Toro) on its Cote D’Ivoire Projects. Subject to successful completion of legal due diligence by Toro:

• Toro will spend US$1 million to earn 51% in PDI’s Cote D’Ivoire subsidiary, Predictive Discovery Cote D’Ivoire SARL (Predictive CI), which holds all of PDI’s highly prospective Cote D’Ivoire ground (Figure 1).

• Toro will pay US$200,000 in cash to PDI on completion of legal due diligence and execution of a full Joint Venture document within 90 days.

• Further cash payments up to US$100,000 by Toro in the following 24 months.

• After Toro has earned 51%, PDI may choose to contribute or dilute in stages. If PDI chooses to dilute, Toro can earn 65% by spending US$2.5 million and up to 90% by sole funding through to a full feasibility study.

• Toro’s minimum commitment is US$400,000 expenditure within 12 months.

• Jointly agreed exploration program, including planned drilling in 2015.

Toro is a private gold exploration and development company focused in Africa. It is led by a team with a successful track record of discovery, development, operation and corporate transactions. Toro is well funded, and has strong institutional shareholder support, including the African Lion 3 Fund, Resource Capital Funds, Macquarie Bank and Sprott[1] . Toro’s flagship project is the Mako deposit in Senegal with a published JORC 2012-compliant Resource Estimate of 1.4 million ounces at 1.75g/t Au[1] . Mako is currently the subject of a Definitive Feasibility Study. This joint venture will be Toro’s first investment into Cote D’Ivoire.

Mr Paul Roberts, Predictive Discovery’s Managing Director said: “We look forward to working with Toro, who are proven gold discoverers in West Africa. Toro’s interest in our Cote D’Ivoire ground is a strong endorsement of PDI’s ground acquisition strategy and encouraging initial exploration results[3] . With Toro’s support, we expect that the pace of exploration results and newsflow will accelerate considerably, starting in the March Quarter.”

“This agreement supports our strategy to focus the funds we are raising in the recently announced rights issue and placement[2] on the area around Bongou in Burkina Faso. Our aim is to drill out additional high value gold mineralisation, building on our high grade Bongou gold deposit[4] .”

1Source: Toro Gold website – www.torogold.com 2ASX release dated 1/10/14

4ASX releases dated 10/6/14 and 4/8/14

3184,000oz in the Inferred and Indicated Mineral Resource categories with an average grade of 2.6g/t Au including 136,000oz at 3.8g/t Au (ASX release dated 4 September, 2014)

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Figure 1: Location of PDI permits in Cote D’Ivoire. Toro Gold is investing in the Company that holds PDI’s interests in all four permits.

Predictive Discovery Limited (PDI) was established in late 2007 and listed on the ASX in December 2010. The Company is focused on exploration for gold in West Africa. 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 in Côte D’Ivoire covering a total area of 1534 km[2] .

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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 2012 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 Nathan Ryan Managing Director NWR Communications Tel: +61 8 9216 1020 Tel: +61 420 582 887 Email: Email: paul.roberts@predictivediscovery.com nathan.ryan@nwrcommunications.com.au

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