PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2014

Mar 19, 2014

20[th] March 2014

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

Predictive Discovery extends Bongou Prospect with wide gold intercepts

ASX

Announcement

Predictive Discovery (ASX: PDI) is pleased to announce further drilling results from its Bongou Gold Prospect in Burkina Faso:

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

• Results from two new drill holes include:

• 36.2m (33m true width) at 2.2/t Au from 181.8m, including:

  • 4.6m at 7.1g/t Au

  • 5.2m at 4.7g/t Au

ASX: PDI

• 21.5m (19.5m true width) at 1.8/t Au from 313m, including:

Issued Capital: 382M shares

• 4.8m at 3.8g/t Au

Share Price: 1.5 cents

• New Bongou-style mineralisation discovered in nearby trenches.

Market Capitalisation: $5.7M

• Next steps:

Cash (at 1 March 2014): $2.0M

• More drill and trenching results due in the next two weeks.

• Further exploration along strike will focus on:

• trenching of granite-hosted mineralisation

Directors

• bedrock drilling under cover

Phillip Harman Non-Exec Chairman

Mr Paul Roberts, the Company’s Managing Director commented:

“These drill results enhance our earlier announced high-grade discovery. We now understand the geology of Bongou as a thick body of granite-hosted mineralisation with consistent grades and widths. Our optimism is supported by previously announced encouraging preliminary metallurgical test work[*] .

Paul Roberts Managing Director

Phil Henty Non-Executive Director c

Tim Markwell Non-Executive Director

Exploration around Bongou has demonstrated that so far we have drilled only a part of a much larger gold system. Further encouraging results are anticipated from our field team’s exploration of the surrounding area in the coming months.”

* See ASX release entitled “Excellent Gold Recoveries from Metallurgical Test Work” on 14[th] May 2013

==> picture [596 x 71] intentionally omitted <==

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

==> picture [451 x 517] intentionally omitted <==

Figure 1: Long Section through the 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 (“Thick, high-grade gold intercepts at Bongou Prospect”) and 16 December 2013 (“68m at 3.2g/t Au incl. 8m at 10g/t Au at Bongou”).

2

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

==> picture [461 x 547] intentionally omitted <==

Figure 2: Cross Section through drill holes BNGRC010, BNGRD001, BNGRD003 and BNGRD005. No vertical exaggeration. Only down-hole widths are shown on this cross-section; estimated true widths are provided in Figures 1 and 4 and Table 1 (for BNGRD005) and PDI’s ASX releases of 2[nd] December 2013 (“Thick, high-grade gold intercepts at Bongou Prospect”) and 16 December 2013 (“68m at 3.2g/t Au incl. 8m at 10g/t Au at

Bongou”).

3

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

BONGOU DRILLING AND TRENCHING

Predictive Discovery Limited (PDI) carried out a combined reverse circulation and diamond drilling program, totalling 2,600m, on the Bongou Prospect in Burkina Faso (Figure 3) between 10[th] February and 11[th] March 2014.

The aim of the drilling was to extend the Bongou mineralisation at depth and to define the nature of its boundaries. A further objective was to explore for similar granite-hosted gold mineralisation nearby. Samples were analysed at the SGS laboratory in Ouagadougou. Locations of the drill holes reported here are shown in Figure 4.

Details of the drilling, sampling and quality control methods used are provided in the notes which follow Table 1.

Drill Results

Highlighted results from the four holes reported in Table 1 are as follows:

• BNGRD012: 36.2m (33m true width) at 2.2g/t Au from 181.8m, including:

• 4.6m at 7.1g/t Au

• 5.2m at 4.7g/t Au

• BNGRD008R: 21.5m (19.5m true width) at 1.8 g/t Au from 313m, including:

• 4.8m at 3.8 g/t Au

• BNGRD009T: 12.7m (9m true width) at 0.3g/t Au from 327.3m

• BNGRD0010: No significant result.

These complement results from earlier drilling which are summarised below:

• BNGRC010: 48m (39.6m true width) at 4.3g/t Au from 34m, including 16m (13.2m true width) at 9.7g/t Au

• BNGRC014 : 37m (35.5m true width) at 5.0g/t Au from 111m, including 16m ( 15.4m true width ) at 8.9g/t Au

• BNGRD005: 68m (52.4m true width) at 3.2 g/t Au from 99m, including 7.8m (6.0m true width) at 10.2 g/t Au and 4.0m (3.1m true width) at 6.9g/t Au

• BNGRD003: 55m (46.8m true width) at 3.2 g/t Au from 215m, including 24.5m at 4.9 g/t Au

• BNGRD001: 48.7m (40.9m true width) at 2.8g/t Au from 144.3m including 5.9m (5.0m true width) at 7.8g/t Au and 7.9m (6.6m true width) at 4.5g/t Au

• BNGRC015: 64m (57.6m true width) at 2.0g/t Au from 14m including 5m (4.5m true width) at 7.3g/t Au

• BNGRC001 : 20m (7.6m true width) at 4.8g/t Au from 70m

4

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

• BNGRC004 : 50m (42m true width) at 1.9g/t Au from 47m, including 8m (6.7m true width) at 9.2g/t Au.

This program has given PDI a better understanding of the geology of the Bongou mineralisation:

• Gold mineralisation at Bongou is contained within intensely (silica-albite) altered, pyriteand magnetite-bearing granite. The gold mineralisation is now interpreted to be contained in a simple, steeply plunging body constrained by major shearing in gabbro in the hanging wall and more massive basalt in the footwall. This is shown in cross section in Figure 2. The mineralisation remains open at depth (see long section, Figure 1).

• The eastern edge of the mineralisation now appears to be more gradational than was previously interpreted. While there is some evidence of fault movement at the eastern end, drill hole BNGRD012 shows that the mineralised granite “inter-fingers” with sheared gabbro in this area with the ratio of barren gabbro to gold mineralised granite increasing towards the east.

Channel Sampling of Trenches

New results from channel sampling in nearby trenches have revealed altered granite 500m NW of Bongou. This was reported in the December 2013 Quarterly Report and included a 12.5m long section averaging 0.5g/t Au (Figure 5). Samples were taken over variable intervals, with a peak value of 15g/t Au in a thin quartz vein. This is a new discovery of further Bongou-style mineralisation nearby.

Importantly, based on our Bongou experience, the average grade of the altered granite may be significantly higher at shallow depths below the trench. At Bongou, channel sampling in the artisanal workings, averages 1g/t Au while much higher grades are encountered at shallow depths below.

FOLLOW-UP PROGRAM

The very encouraging exploration results returned to date have helped to guide a broader exploration strategy:

• Further trenching of the gold geochemical anomalies west and north-west of Bongou (Figure 5) aimed at discovering additional Bongou-style mineralisation nearby.

• Geochemical drilling of targets elsewhere along the Bongou structure, aimed initially at 10km of the 43km of strike length interpreted to be within PDI’s exploration permits (Figure 6).

5

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

==> picture [297 x 189] intentionally omitted <==

Figure 3: Locality map of PDI permits in eastern Burkina Faso, showing location of Bongou Prospect.

==> picture [280 x 375] intentionally omitted <==

Figure 4: Drill hole locality plan, Bongou Prospect. Gold intercepts are all shown as estimated true widths. “Total” intercepts were calculated across the width of the gold mineralisation, irrespective of the width of internal waste zones, at a cut-off grade of 0.5g/t Au. Data for this diagram are provided in Table 1 and PDI’s ASX releases dated 2[nd] December, 2013 (“Thick, high-grade gold intercepts at Bongou Prospect”) and 16 December 2013 (“68m at 3.2g/t Au incl. 8m at 10g/t Au at Bongou”).

6

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

==> picture [379 x 297] intentionally omitted <==

Figure 5: Location of the trench dug during the December Quarter on a map of power auger results released to the ASX on 26[th] July 2013 (“Gold Target Expanded at Bongou Prospect”).

==> picture [394 x 262] intentionally omitted <==

Figure 6: Regional geological map of the area near Bongou, showing location of Bongou itself and two target zones (red dashed line ellipses) 4km and 10km north-east of Bongou and the Dave Prospect.

7

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

TABLE 1 – DRILL RESULTS

	Drill hole collar	Drill hole collar	Drill hole collar	details	details		0.5 g/t cut-off	0.5 g/t cut-off	0.5 g/t cut-off	3.0 g/t cut-off	3.0 g/t cut-off	3.0 g/t cut-off	Comments
Hole Number	UTM East	UTM North	RL	UTM Azim uth (°)	Hole dip (°)	Hole depth (m)	From (m)	Interval (true width in brackets)	Au g/t	From (m)	Interval (true width in brackets)	Au g/t
BNGRD008R	207380	1422388	276	152.0	-54	421.5	283.9	3.5 (3.2)	1.41	283.9	0.6 (0.5)	4.92	All DD samples
BNGRD008R	207380	1422388	276	152.0	-54	421.5				317.2	4.8 (4.3)	3.79
							313.0	21.5 (19.5)	1.76
BNGRD008R	207380	1422388	276	152.0	-54	421.5	328.5				1.7	3.49
BNGRD009T	207454	1422435	276	152.0	-54	334.5			No significant result				Results from pyrite mineralised granite in RC chips between 175 and 178m notyet received.
BNGRD010	207340	1422359	276	151.0	-50	379.5	334	1 (0.7)	0.63				At a cut-off grade, the intercept of highly silicified rock in this hole, which appears to correlate with the mineralised granite in BNGRD008R, consists of 12.7m (9m true width) at 0.31g/t Au from 327.3m
BNGRD012	207484	1422350	277	168.0	-51	253.0							"Total" intercept: 2.20 g/t
							181.8	18.8 (17.1)	2.47	181.8	5.2 (4.7)	4.72	Au average from 181.8m to
BNGRD012	207484	1422350	277	168.0	-51	253.0							218.0m (36.2m down-hole
							213.4	4.6 (4.2)	7.10	213.4	4.6 (4.2)	7.10	or 33.0m true width). All
													DD samples.

Section 1: Sampling Techniques and Data

Section 1: Sampling Techniques and Data	Section 1: Sampling Techniques and Data	Section 1: Sampling Techniques and Data
Criteria	JORC Code Explanation	Commentary
Sampling Technique	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure ofdetailed	All of the sampling described in this report refers to either reverse circulation (RC) drill samples or diamond drill core samples. The RC drilling was used to obtain 1 m samples from which 2 kg was pulverised to produce a 50 g charge for fire assay. The RC samples were reduced to a 2kg sample by riffle splitting on site. The diamond core samples were cut in half longitudinally using a diamond saw. Measures were taken to avoid wet RC drilling and the drilling method was changed from RC to diamond coring at or before the point when the air pressure from the RC rig was incapable of keeping the samples dry. The drill samples are judged to be representative of the rock being drilled because representative sub-sampling of both the RC and diamond core samples was achieved.

8

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

	information.
Drilling	Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method,etc).	RC drilling was carried out using a 4.5 inch or 5.5 inch face sampling hammer. RC precollars varied from 20 to 200m long and the diamond drill tails were up to 221.5m long. The diamond core size was NQ apart from up to 3m of HQ core which was drilled immediately after the changeover from RC to diamond coring. The diamond core was oriented using a core orientation device.
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recovery was estimated for all samples. RC recoveries were estimated by measuring the volume of material in each bag relative to the known volume of the drill hole. Core samples were measured from core block to core block once core had been placed in the core trays. Sample recovery was maximised in the RC drilling by use of a face sampling hammer and by converting to diamond coring when it was no longer possible to drill dry samples. A petrological study of the mineralisation and the absence of any high-grade gold value above 32.9g/t Au throughout the whole database both point to the gold grainsize typically being below 50 microns which would also mitigate against sampling not being representative.
Logging	Whether core and chip samples have been geologically and geotechnical logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean/Trench, channel, etc) photography. The total length and percentage of the relevant intersections logged.	Detailed geological logging has been carried out on all drill samples, recording lithology, weathering, structure, (including orientation where the core is oriented), veining and/or mineralisation, grainsize and colour. Logging of sulphide mineralization and veining is quantitative. RQDs are recorded routinely. Photography of the cut core is not yet complete but will be carried out during the field season. No judgement has yet been made by independent qualified consultants on whether the geological and geotechnical logging has been sufficient to support Mineral Resource estimation, mining and metallurgical studies.
Sub-Sampling Technique and Sample Preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material beingsampled.	Core samples were cut in half longitudinally with a diamond core saw with one half submitted for assay and the remaining half retained in core trays which are stored at PDI's field camp in Gayeri. Core sampling intervals were defined by variations in lithology and mineralogy but are typically 0.5-1.0m. An on-site riffle splitter was employed to produce a 2kg assay sample for submission to SGS. Either one or two reference riffle-split 2kg samples are retained from the RC samples for future re-assay or metallurgical testwork. The sampling (and analytical) methods were appropriate for the style of mineralisation, especially as no visible gold has been observed and previous petrological studies indicate that the typical gold grain size is less than 50 microns.

9

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

Quality of Assay Data and Laboratory Tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	All samples were assayed for gold by 50g fire assay at the SGS laboratory in Ouagadougou, Burkina Faso. The technique is considered a total analysis. No geophysical tools, spectrometers or handheld XRF instruments have yet been employed although XRF scanning of some of the core using a hand held XRF instrument is planned. Unlabelled standards were submitted with all assay batches, generally at the rate of one standard every 15thsample, whether from RC or diamond drilling. Blanks were also submitted with RC sample batches. Where any problems with bias or accuracy, especially outside of a +/- 10% envelope is observed, samples are re- assayed. External laboratory checks are planned but have not yet been carried out.
Verification of Sampling and Assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data	No holes have yet been twinned. Field data collection is undertaken by the company’s Burkina Faso-based geologists. All results are checked by Mr Paul Roberts, the company’s Managing Director.
Location of Data points	Accuracy and quality of surveys used tolocate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control	Collar positions were located using a hand held GPS with a location error of +/- 3m. Collar RLs were established by interpolation between surveyed points established for an earlier geophysical survey with an estimated elevation error of less than 2m. Collar coordinates listed in the table are for Universal Transverse Mercator (UTM), Datum WGS 84, Zone 31 - Northern Hemisphere.
Data Spacing and Distribution	Data spacing for reporting of Exploration Results Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has beenapplied	The drill intercepts are irregularly spaced but approximately 40 x 40m. No judgement has yet been made by an independent qualified consultant on whether the drill density is sufficient to calculate a Mineral Resource. Sample compositing was applied only to samples thought to be un- mineralised. Sample composites were mostly either 4m or 8m.
Orientation of Data in Relation to Geological Structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	All drill holes reported here were drilled approximately at right angles to the strike of the target mineralization. The mineralisation appears to be a disseminated type with no evidence yet identified for ore distribution being in any orientation other than parallel to strike of the mineralised body.
Sample Security	The measures taken to ensure sample security	The large RC sample bags are stored at a sample farm on PDI’s exploration permits. These are guarded at all times by local individuals hired for this purpose. 2kg reference samples are stored at the company’s field camp in the town of Gayeri, which is guarded 24 hours per day. Pulp samples are retained at company premises in Ouagadougou which are also

10

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

		guarded 24 hours per day.
	Section 2 Reporting of Exploration Results
Mineral Tenement and Land Tenure Status	Type, reference name/number, location and ownership including agreements or material issues with third partiessuch asjoint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Bongou Prospect lies entirely within the Madyabari Permit (Arrêté N°2011 /11/352/MCE/SG/DGMGC) which covers an area of 172 sq km. There are no overriding reserves or national parks over this permit. In a future mining operation, the Government of Burkina Faso is entitled to a 10% share of any mine along with a 3-5% ad valorem royalty, the percentage of which is determined by the gold price prevailing at the time. The company believes that (a) the permit is securely held as it has complied with all the necessary government requirements and (b) the permit can be replaced in due course by a mining licence as long as a feasibility study shows that a future mine would be viable and that company completes meets the Government’s legal requirements, which it fully intends to do. The Madyabari permit was initially acquired, along with three other nearby permits (Sirba, Fouli and Tantiabongou), by Birrimian Pty Ltd (Birrimian), which is a British Virgin Islands-registered company now 100% owned by PDI. The original owners of Birrimian subsequently entered into an agreement with Eldore Mining Corporation Limited (Eldore) through which Eldore could acquire the Birrimian permits through a series of payments and a commitment to issue US$2 million worth of Eldore stock on completion of a Bankable Feasibility Study on one or more ore deposits within the Birrimian permits. PDI initially acquired an interest in Madyabari along with the three other Birrimian permits via a joint venture with Eldore which commenced in January 2010. In 2012, Eldore changed its name to Stratos Resources Limited (ASX: SAT) after which PDI bought out SAT’s residual interest (in late 2012). In acquiring Birrimian, PDI also inherited the one unfulfilled commitment in the original Eldore agreement with the original Birrimian shareholders. This commitment has now been agreed to mean that PDI will issue US$2 million worth of PDI shares after PDI accepts an offer of finance for development of a mine on the Birrimian permits at its sole discretion) following completionofaBankableFeasibility Study.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	Past exploration over the Bongou prospect consisted of wide spaced soil sampling and an aeromagnetic survey. Previous explorers did not recognise the significance of the Bongou mineralisation, which appears to have been discovered by artisanal miners.
Geology	Deposit type, geological setting and style of mineralisation.	Mineralisation consists of an intensely altered (silica-albite) and quartz veined granite body which lies sandwiched between a sheared gabbro on the mineralisation’s northern margin and a basalt body (partly sheared) on its southern margin. The gabbro and basalt contacts are approximately parallel to one another. Pyrite is disseminated throughout the mineralisation with higher gold grades apparently associated with coarse grained pyrite. The quartz veins contain some carbonate and the mineralisation contains minor magnetite and some sericite in fractures. The mineralised body lies within a large structure which is approximately 43km long within three contiguous permits owned 100% by the company (Madyabari, Bassieri and Tamfoagou). The mineralisation is interpreted as a variant of the orogenic gold mineralisation style, which is known throughout theBirimian Belt of WestAfrica.
Drill Hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length • If the exclusion of this information is justified on the basis that the information is not Material and	Intercepts that form the basis of this announcement are tabulated in Table 1 within the body of the announcement and incorporate Hole Number, Easting, Northing, Dip, Azimuth, Depth and Assay data for mineralised intervals. An appropriate locality map also accompanies this announcement.

11

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

	this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data Aggregation Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	Over 95% of the gold mineralised material (with grades exceeding 0.5g/t Au) was sampled in intervals of one meter or less. No top cuts have been applied to exploration results as the maximum value in the entire assay database is 32.9g/t Au and only 4 samples contain more than 20g/t Au. For the 0.5g/t Au cut-off calculations, up to 3m (down-hole) of internal waste is included. For the 3g/t Au cut-off calculations, up to 2m (down-hole) of internal waste is included. For the “total intercept” average grade recorded for hole BNGRD012 in the Comments column, the average grade is calculated with a cut- off grade of 0.5 g/t Au and up to 12.7m of internal waste (down-hole). Mineralised intervals are reported on a weighted average basis.
Relationship Between Mineralisation Widths and Intercept Lengths	These relationships are particularly important in the reporting of Exploration Results If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	True widths have been estimated for all intercepts based on the assumption that the gold mineralisation is oriented parallel to the hanging wall and foot wall contacts.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	An appropriate plan and cross section has been included in the text of this document.
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reportingof Exploration Results.	All intercepts containing average gold grades exceeding 2g-m (e.g. 1 g/t Au over a down-hole width of 2m) are reported. Values for the lower grade intercept in hole BNGRD010 are also recorded. Holes in which no significant result has been obtained are also routinely reported by PDI.
Other Substantive Exploration Data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Preliminary metallurgical test work has been completed on one composite sample of RC chips and reported previously (ASX release entitled “Excellent Gold Recoveries from Metallurgical Test Work” on 14thMay 2013); a gold recovery of 94% was recovered by CIL testwork using a standard 75 micron grind. Additional metallurgical testwork is planned in 2014.
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling. Diagrams clearlyhighlightingthe	Further drilling is planned to test for more Bongou-style mineralised bodies. The first phase of that drilling will be carried out with a power auger rig.

12

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

areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

13

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

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

14