PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2014

Feb 4, 2014

PO Box 226 Subiaco WA 6904 ABN 11 127 171 877

p (08) 9388 8290 f (03) 9388 8256

5 February 2014

w www.predictivediscovery.com

INFORMATION REQUIRED UNDER LISTING RULE 3.10.5A

Further to the Appendix 3B lodged today for the issue of 61,287,500 fully paid ordinary shares at 1.6 cents per share in a placement to private investors (‘Placement’), the Company provides the following information required under ASX Listing Rule 3.10.5A.

The dilutive effect of the Placement on existing shareholders is as follows:

Placement issue under ListingRule 7.1A(shares)	9.89%
Placement issue under ListingRule 7.1(shares)	10.48%
Total dilution as a result of Placement	20.37%

Details of the approximate percentage of the issued capital following completion of the Placement held by pre-Placement shareholders and new shareholders are as follows. Please note this information relates specifically in relation to the portion of shares issued under listing rule 7.1A (29,746,225 shares).

Pre-Placement shareholders who did notparticipate in the Placement	88.22%
Pre-Placement shareholders who didparticipate in the Placement	11.78%
Participants in the Placement who were notpreviouslyshareholders	0%

The Company issued the shares as a placement under listing rule 7.1A as it was of the view that this was the most efficient mechanism for raising funds at the time. The Company had also received strong support from existing major shareholders and brokers to support the Placement making it a more reliable process to fund. A share placement is being offer to all shareholders at the same price.

There was no underwriter to the Placement. The Company did not pay commission on funds raised pursuant to listing rule 7.1A. The Company paid a 5% commission on $272,600 to Shaw Corporate Finance on funds raised pursuant to listing rule 7.1.

Yours sincerely

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Ian Hobson

Company Secretary