PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2014

Apr 14, 2014

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: 388M shares Share Price: 1.0 cents

Market Capitalisation: $4M

Cash (at 1st March 2014): $2M

Directors

Phillip Harman Non-Exec Chairman

Paul Roberts Managing Director

Phil Henty Non-Executive Director

Tim Markwell Non-Executive Director c

==> picture [10 x 665] intentionally omitted <==

15[th] April 2014

Bongou Regional Exploration Program

Predictive Discovery (ASX: PDI) is pleased to announce that the next phase of the exploration programme at its Bongou Gold Prospect in Burkina Faso is well underway and progressing rapidly.

Exploration at Bongou has revealed a high-grade gold deposit. Average true widths intersected from 13 holes drilled in the gold mineralised granite at Bongou were 31.6m with average grades of 2.9 g/t Au , most with a significant high-grade component, for example 13.2m at 9.7g/t Au* .

Reconnaissance RC drill and trench results reported on 1[st] April 2014 showed that more Bongou-style granite-hosted gold mineralisation is present nearby. The Company has since completed the first phase of the follow-up program aimed at:

• Finding more granite-hosted gold mineralisation within 2km of the Bongou deposit.

• Trenching known gold anomalies.

• Re-logging the Bongou core and trenching across the margins of the Bongou deposit to map the mineralised granite’s margins in order to prepare for a possible resource calculation.

Progress since the 1[st] April announcement has included:

• An 842-hole power auger drilling program, totalling 3447m.

• Interpretation of hand-held XRF data of the power auger samples. This has identified many more Bongou-sized granite bodies under cover than previously recognised (Figure 1). This increases the potential to discover more Bongou-like gold mineralisation.

• A trenching program to test five target gold anomalies which is in progress.

• Trenching around the edges of the Bongou deposit. This has shown that altered granite extends at least 30m further east than previously mapped.

• Re-logging of the Bongou core, in preparation for construction of a 3D model of the mineralisation.

Power auger and trench assay results are expected by the end of April. A round of infill power auger drilling and follow-up trenching will commence immediately thereafter with the aim of identifying RC drill targets by late May.

* See Figure 3 for the intercepts from which these figures were obtained (within the darker red nearvertical band). The relevant drill results were reported to the ASX on 2nd December 2013, 16[th] December 2013, 20[th] March, 2014 and 1[st] April, 2014.

==> picture [596 x 83] intentionally omitted <==

==> picture [417 x 238] intentionally omitted <==

Figure 1: Interpreted geological map of the area surrounding Bongou, highlighting many unexplored granite bodies under cover and showing the location of the previous and new power auger drilling. The locations of the granite bodies have been interpreted from samples with low Ti/Zr ratios in power auger samples, supported by mapping of the few granite outcrops in the area. The plus 40ppb Au anomalies outlined on the map are currently being followed up with trenching.

==> picture [413 x 269] intentionally omitted <==

Figure 2: Regional geological map of the area near Bongou, showing location of Bongou itself (and Figure 1 – see dashed line rectangle) along with two target zones (red dashed line ellipses) 4km and 10km north-east of Bongou as well as the large Dave Prospect.

2

==> picture [596 x 83] intentionally omitted <==

==> picture [411 x 471] intentionally omitted <==

Figure 3: Long Section through the Bongou mineralised body oriented at 065 degrees, showing true width drill intercepts of both the total gold mineralised body at a 0.5g/t Au cut-off and true widths of the higher grade hanging wall mineralisation calculated at a cut-off grade of 3g/t Au. Results of the low grade gold mineralisation were calculated at an approximate 0.2g/t Au cut-off grade. Data for these results are provided in Table 1 and PDI’s ASX releases of 2[nd] December 2013, 16[th] December 2013, 20[th] March 2014 and 1[st] April 2014. Note that once the trenching program on the eastern margin is complete, the interpreted shape of the mineralised granite body on this diagram is expected to change, at least in the near-surface .

3

==> picture [596 x 83] intentionally omitted <==

==> picture [369 x 235] intentionally omitted <==

Figure 4: Location of PDI permits in eastern Burkina Faso, showing location of Bongou Prospect.

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 Cote D’Ivoire covering a total area of 1534 km[2] .

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

4