PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2016

Apr 13, 2016

14[th] April 2016

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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: 1.3B shares

Share Price: 0.5 cents

Market Capitalisation: $6.5M

Directors

Phillip Jackson Non-Exec Chairman

Paul Roberts Managing Director

David Kelly Non-Executive Director

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High Gold Grades from Victorian JV Drilling

Predictive Discovery Limited (ASX: PDI) is pleased to announce encouraging gold drill assay results from its Joint Venture with Cape Clear Minerals Pty Ltd (CCM) in Victoria, including:

• New drill results from the British Banner prospect:

• CCD001: 3.8m at 6.7g/t Au including 1.3m at 17.5g/t Au

• CCD001: 4.5m at 2.4g/t Au including 0.7m at 10.3g/t Au

• CCD004: 2.1m at 3.2g/t Au.

• Historic drilling on the British Banner prospect, included:

• PFD036: 0.6m at 22.8g/t Au

• PFD036: 3.0m at 3.15g/t Au including 0.4m at 19.5g/t Au

• Broad gold-bearing quartz vein zone at British Banner drill tested over 400m strike length in this program and is open to the north and south.

• CCM has advised Predictive that it has now spent $500,000 and is thereby entitled to a 75% equity in the project.

Mr Paul Roberts, Predictive’s Managing Director said: “We are encouraged by CCM’s drill results at the British Banner prospect. We are currently in discussions with CCM on its exploration plans in order to determine whether PDI will contribute to the next drill program.

This is an exciting time for Predictive shareholders and management. These results are the first in a series of drill assay results that we will release to the market over the next few months. In addition to the drilling outlined above, our joint venture partner in Cote D’Ivoire, Toro Gold Limited, is currently diamond drilling on our Kokoumbo permit and will start RC drilling soon on our Boundiali permit, both of which are following up very encouraging gold geochemical results.”

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Figure 1: Cape Clear Exploration Licence Location

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Cape Clear EL 5434, Victoria

Introduction

Exploration Licence 5434 is located west of Ballarat in Victoria (Figure 1). It was granted to PDI in July 2013. The area is highly prospective for shallowly concealed Stawell-style gold mineralisation. PDI previously carried out geological mapping and a gravity survey over part of the EL area.

Execution of a binding farm-in agreement with Cape Clear Minerals Pty Ltd (CCM) on this EL was announced to the ASX on 22[nd] September 2014. Under that agreement, CCM could earn 75% equity in the licence by spending $500,000 on exploration, including at least 1,000m of drilling.

CCM has recently advised that it has now spent $500,000 and completed 1,000m of drilling, and has therefore achieved a 75% equity in the project. PDI is currently awaiting the results of an independent audit to confirm that the $500,000 has been spent in accordance with the farm-in agreement.

PDI and CCM held a joint venture meeting on Thursday 7[th] April 2016 where the recent drill results were presented and the planned next phase of exploration was discussed. PDI is currently considering whether it will contribute to the next phase of exploration.

Geology Background

Exploration on EL5434 is targeted at discovery of Stawell-style and/or Ballarat-style gold mineralisation on the margins of a concealed Cambrian basalt ridge located on the west side of the major north-south striking Avoca Fault. The Stawell gold deposit is located in a comparable geological position on the western side of a basalt ridge, which is, in turn, west of the major Coongee Fault.

Exploration by Leviathan Resources Limited about 10 years ago revealed a gold mineralised zone on the eastern side of the basalt ridge at the British Banner prospect (Figure 2). This included drill hole PFD036 (Figures 2 and 3, and Table 2) which reportedly contained visible gold in several places and intersected:

• 0.4m at 6.98g/t Au from 313.1m

• 0.6m at 22.80g/t Au from 334.0m

• 1.8m at 2.39g/t Au from 347.8.0m

• 3.0m at 3.15g/t Au from 392.2m including 0.4m at 19.5g/t Au

• 0.4m at 4.99g/t Au from 397.2m

Drilling program

CCM recently completed a diamond drilling program on EL5434, totalling 7 holes and 2,147m (see Figure 2 for drill hole locations).

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Figure 2: Drill hole locality plan on map of interpreted basement geology below younger (Tertiary) basalt cover (see Figure 3 for cross sectional view).

Assays have been received from the first 5 holes of the above program and are tabulated in Table

1. Encouraging results, including some high gold grades over narrow widths, were obtained from the British Banner Prospect (Figures 2 and 3). Highlights of that drilling included the following:

2. CCD001:

   • 0.7m at 2.07g/t Au from 232.2m

   • 3.8m at 6.74g/t Au from 265.7m including 1.3m at 17.50g/t Au

   • 4.5m at 2.45g/t Au from 326.5m including 0.7m at 10.35g/t Au

3. CCD004:

   • 2.1m at 3.18g/t Au from 206.8m including 0.6m at 5.22g/t Au

   • 1.1m at 4.08g/t Au from 266.5m

4. CCD005:

   • 1.2m at 2.45g/t Au from 160.5m

   • 0.8m at 3.72g/t Au from 167.4m

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Figure 3: Cross section through the British Banner Prospect and diamond drill holes CCD001 and CCD005

Results are awaited for drill holes CCD06 and CCD007 (Figure 2).

The drill results to date indicate that there is a broad zone of gold-anomalous quartz veining in the vicinity of the contact position between sandstones and shales east of the basalt contact and west of the major Avoca Fault. CCM’s drilling has demonstrated that this zone extends for at least 400m along strike and is open to the north and south. Visible gold has been observed in two holes – PFD036 and CCD001 (see Figure 4).

Given the presence of some relatively coarse gold, CCM has been progressively re-assaying goldbearing intercepts with the screen fire assay method to obtain more reliable results. As expected, the re-assaying has shown some variation between the different assay methods with screen fire assays overall tending to be higher than the original fire assay values. Screen fire assays have been received so far on holes CCD001 and CCD004 and the values reported here are arithmetic averages of all assays recorded for each interval for those holes.

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Figure 4: Visible gold grain in drill core at 318m in diamond drill hole CCD001

Next Steps

Results from holes CCD006 and CCD007 are expected in the next few weeks.

CCM is proposing to undertake additional drilling, totalling 2,250m, both around the British Banner Prospect and at several locations on the western flank of the basalt ridge (i.e. in an analogous position to the main Stawell Mine workings). Predictive is currently considering whether or not to contribute 25% of the cost of this drilling program.

TABLE 1 – DRILL RESULTS – CCM DRILLING (CCD001-005)

Hole No.	GDA94 East	GDA94 North	RL (m)	Hole depth (m)	Hole dip (°)	Azimuth (°)	Depth from (m)	Interval (m)	Au (g/t)	Comments
CCD001	730,540	5,811,580	234.0	574.3	-55	277	232.2	0.7	2.07*
CCD001	730,540	5,811,580	234.0	574.3	-55	277	265.7	3.8	*6.74 **	includes 1.3m at 17.50g/t Au
CCD001	730,540	5,811,580	234.0	574.3	-55	277	326.5	4.5	*2.45 **	includes 0.7m at 10.35g/t Au
CCD002	730,050	5,811,270	238.0	311.2	-55	101	no significant result			Abandoned in a fault zone in the Cambrian basalt before reaching target on eastern side of that basalt.
CCD003	730,580	5,816,850	245.0	174.9	-55	100	no significant result			Hole drilled into Cambrian basalt with very minor sedimentary rocks. The target western flank of the Cambrian basalt “ridge” was not intersected

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CCD004	730,233	5,811,250	237.0	338.8	-55	100	206.8	2.1	3.18*	Includes 0.6m at 5.22g/t Au
CCD004	730,233	5,811,250	237.0	338.8	-55	100	266.5	1.1	4.08*
CCD005	730,473	5,811,588	234.0	281.4	-55	276	123.7	1.4	0.75
CCD005	730,473	5,811,588	234.0	281.4	-55	276	160.5	1.2	2.45
CCD005	730,473	5,811,588	234.0	281.4	-55	276	167.4	0.8	3.72
* Results are average values of all analyses including include screen fire assay check assays.

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 of detailedinformation.	All of the sampling described in Table 1 refers to diamond drill core. Diamond drill core for holes CCD001, CCD002, CCD004, CCD005, and CCD007 in the British Banner area were logged geologically and marked up for assay at approximate one metre intervals determined by geological boundaries. Drill core is consistently cut in half to the right side of the structural orientation line and submitted for assay analysis. The remaining half is retained in the core trays. The drill samples are judged to be representative of the rock being drilled because representative sub-sampling of both the core was achieved.
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,bywhat method,etc).	DD: Diamond drilling produced PQ3, HQ3 and NQ3 sized drill core. Triple tube drilling was the selected to maximise core recovery particularly for the oxidised and mineralised zones. The drill core was orientated utilising an Isilex orientation device which was double-checked with an orientation spear for every run.

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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.	DD: Drillers measured core recoveries for every drill run completed using 3 metre and 6 metre core barrels. The drillcore is physically measured by tape measure and the length recorded for every 3 metre “run”. Core recovery calculated as a percentage were generally greater than 90%. No significant loss of material was reported in the zones of economic interest. Diamond drilling collects uncontaminated fresh core samples which are further cleaned at the drill site and presented cleanly to the client for logging and sampling.
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.	Logging of DD records lithology, mineralogy, mineralisation, alteration, structure, weathering, colour and other features of the samples. Logging of sulphide mineralization and veining is quantitative. All holes were logged in full. All drill core is photographed both wet and dry in the core trays. 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 being sampled.	The core was cut in half longitudinally using a Clipper brick saw Half core samples were collected for assay, and the remaining half core samples stored in the core trays. Core samples were collected on nominal one metre intervals (no intervals greater than 1.5 metres) to create 2-3kg samples for submission. 50g fire assay results suggest the presence of “nuggety” gold. Initial screen fire assays on the original 1kg pulverised sample confirm the presence of nuggety gold. Re-assaying of initial fire assays above a nominal 0.2g/t cut-off is routinely completed and will be continually evaluated as the drilling progresses. Outside of the “nuggety” zones the sampled material is considered to be representative of the core as a whole.

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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 with an AAS finish by ALS in Adelaide/Perth. The technique is considered a total analysis. A further 11 elements were tested for utilising the ME-ICP method. At the lab, regular assay Repeats, Lab standards, Checks and Blanks were inserted and analysed by ALS Laboratories. Unlabelled standards (Certified Reference Materials) were inserted at a rate of 3 standards per 100 samples.
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 was undertaken by CCM geologists and supervised by CCM management.
Location of Data points	Accuracy and quality of surveysused 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 coordinates listed in the table are for the Map Grid of Australia 1994, Zone 54.
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. No judgement has yet been made by an independent qualified consultant on whether the drill density is sufficient to calculate a Mineral Resource. Diamond drill samples were not composited but air core samples were variably composited from single samples to up to 4m long composites.
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 anticipated strike of the target quartz veined zone. The individual quartz veins which carry gold appear to have several orientations so it is impossible to target all mineralisation optimally.

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Sample Security	The measures taken to ensure sample security	The drill core is stored securely at CCM’s warehouse in Ballarat.
Audits or Reviews	The results of any audits or reviews of sampling techniques and data	No audits or reviews of sampling techniques and data have been carried out given the reconnaissance nature of this drill program.
	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 locations reported here lie within the Cape Clear Exploration Licence (EL 5434) which is held jointly by Predictive Discovery Limited and Cape Clear Mining Pty Ltd. Subject to a current audit of exploration expenditure, CCM is expected to have beneficial ownership of at least 75% of EL5434 soon. The EL is subject to a farm-in agreement that was signed between PDI and CCM in September 2014 and under which CCM can earn 75% of the EL by exploration expenditure of A$500,000. The EL is securely held as substantially more than the minimum exploration expenditure commitment has been spent.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	Past exploration over the EL was mainly conducted by Leviathan Resources Limited prior to 2007. Leviathan’s drilling demonstrated anomalous gold and arsenic values along both the eastern and western contacts of the north-south Cambrianbasaltridge shown in Figure2).
Geology	Deposit type, geological setting and style of mineralisation.	Gold mineralisation is found in quartz veined zones near the contact with a north-south orientated Cambrian basalt ridge, commonly at or near the contact between black shales and sandstones. The mineralisation is interpreted as a variant of the orogenic gold mineralisationstyle,which isknown incentralandwestern Victoria.
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 this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	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 accompanies this announcement.
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 lowgrade results,the	Gold mineralised material was sampled in variable intervals but typically 1.5m meter or less. No top cuts have been applied to the drill results. Up to 2m (down-hole) of internal waste is included. Mineralised intervals are reported on a weighted average basis.

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	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.
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 not been estimated given the uncertainty about which veins are hosting the gold and their variable orientation.
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 is 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 reporting of Exploration Results.	All intercepts containing average gold grades exceeding 1g-m (e.g. 1 g/t Au over a down-hole width of 1m) are reported. Holes in which no significant result were 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.	Historic drill results that are relevant to the British Banner prospect (i.e. on the same cross section as CCD001 and CCD005 are reported in Table 2).
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	Further drilling is planned to follow up the encouraging results reported here.

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TABLE 2 – DRILL RESULTS – HISTORIC DRILLING SHOWN ON

FIGURE 3

Hole No.	GDA94 East	GDA94 North	RL (m)	Hole depth (m)	Hole dip (°)	Azimu th (°)	Depth from (m)	Interv al (m)	Au (g/t)	Comments
PFA109	730,282	5,811,622	235.0	66.0	-90	0	no significant result
PFA110	730,204	5,811,637	236.0	66.0	-90	0	no significant result
PFA111	730,360	5,811,608	234.0	66.0	-90	0	no significant result
PFA112	730,440	5,811,594	233.0	95.0	-90	0	93.00	2	1.92
PFD036	730,184	5,811,629	236.4	460.0	-56.8	89.8	313.10	0.4	6.98
PFD036	730,184	5,811,629	236.4	460.0	-56.8	89.8	334.00	0.6	22.80
PFD036	730,184	5,811,629	236.4	460.0	-56.8	89.8	347.80	1.8	2.39
PFD036	730,184	5,811,629	236.4	460.0	-56.8	89.8	392.20	3	3.15	includes 0.4m at 19.5g/t Au
PFD036	730,184	5,811,629	236.4	460.0	-56.8	89.8	397.20	0.4	4.99
PFD036	730,184	5,811,629	236.4	460.0	-56.8	89.8	431.40	1	1.36

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 of detailedinformation.	The PFA prefix holes were RC/air core holes and PFD 036 was a diamond drill hole. RC/Air core: One metre samples were collected and composited to four metres to produce a bulk 3-4kg sample. Composite samples were taken with a scoop from sample piles were used to derive samples for the aircore drilling. Diamond Drilling (DD): The PFD036 core was cut in half longitudinally with one half submitted for analysis and the remaining half retained in the core trays. The drill samples are judged to be representative of the rock being drilled because representative sub-sampling of both the core and air core sampling was achieved.
Drilling	Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka,	RC/AC: All RC/Aircore drilling was completed by Wallis Drilling. The holes prefixed with PFA were RC collared thru the Tertiary Basalt cover and completed withanaircore tailto test the targetedPalaeozoic basement. TheAC bithad a

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	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).	3.5inch diameter (78mm) and collects samples through an inner tube, reducing hole sample contamination. DD: PFD036 hole was diamond drilled by Titeline Drilling Pty Ltd which utilised HQ triple tube and NQ3 drill core sizes to attain optimal core recoveries for assaying.
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.	RC/AC: The majority of samples collected from the drilling was dry. Occasional samples were damp due to injection of water to aid drilling recoveries. Recoveries were expected to be approximately 80-90%. DD: Drillers measured core recoveries for every drill run completed using 3 metre and 6 metre core barrels. The drill core is physically measured by tape measure and the length recorded for every 3 metre “run”. Core recovery calculated as a percentage were generally greater than 90% though some core loss was noted outside zones of economic interest.
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.	Geological logging was carried out on all drill samples, recording lithology, weathering, structure, veining and/or mineralisation, grainsize and colour. Logging of sulphide mineralization and veining is quantitative. 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 being sampled.	RC/AC: Face sample bits were used for the RC portion drilling through the cover rock. No samples were taken through this zone. One metre drill samples for the AC tails were channelled through a cyclone, collected in a plastic bucket, and deposited on a plastic sheet laid on the ground in 10 samples per row (10m). Four metre composites were collected using a scoop (one scoop per metre) and depositing the sample into a pre-numbered calico bag to attain an approximate 2- 3kg sample. DD: The core was cut in half longitudinally. The sampled material is considered to be representative of the core as a whole.

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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. The technique is considered a total analysis. Unlabelled standards, blank and duplicate samples were submitted with the assay batches
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 was undertaken by Leviathan Resources geologists and supervised by Leviathan management.
Location of Data points	Accuracy and quality of surveysused 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 coordinates listed in the table are for the Map Grid of Australia 1994, Zone 54.
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. No judgement has yet been made by an independent qualified consultant on whether the drill density is sufficient to calculate a Mineral Resource. Samples were not composited.
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.	The air core holes were vertical and aimed at identifying potentially mineralised bedrock below the Tertiary basalt. They were not optimally orientated for the steep dipping mineralised zone. PFD036 was drilled approximately at right angles to the anticipated strike of the target quartz veined zone. The individual quartz veins which carry gold appear to have several orientations so it is impossible to target all mineralisation optimally

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Sample Security	The measures taken to ensure sample security	The core is stored securely at CCM’s warehouse in Ballarat.
Audits or Reviews	The results of any audits or reviews of sampling techniques and data	No audits or reviews of sampling techniques and data have been carried out given the reconnaissance nature of this drill program.
	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 locations reported here lie within the Cape Clear Exploration Licence (EL 5434) which is held jointly by Predictive Discovery Limited and Cape Clear Mining Pty Ltd. Subject to a current audit of exploration expenditure, CCM is expected to have beneficial ownership of at least 75% of EL5434 soon. The EL is subject to a farm-in agreement that was signed between PDI and CCM in September 2014 and under which CCM can earn 75% of the EL by exploration expenditure of A$500,000. The EL is securely held as substantially more than the minimum exploration expenditure commitment has been spent.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	Past exploration over the EL was mainly conducted by Leviathan Resources Limited prior to 2007. Leviathan’s drilling demonstrated anomalous gold and arsenic values along both the eastern and western contacts of the north-south Cambrianbasaltridge shown in Figure2).
Geology	Deposit type, geological setting and style of mineralisation.	Gold mineralisation is found in quartz veined zones near the contact with a north-south orientated Cambrian basalt ridge, commonly at or near the contact between black shales and sandstones. The mineralisation is interpreted as a variant of the orogenic gold mineralisationstyle,which isknown incentralandwestern Victoria.
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 this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Intercepts that form the basis of this announcement are tabulated in Table 2 within the body of the announcement and incorporate Hole Number, Easting, Northing, Dip, Azimuth, Depth and Assay data for mineralised intervals. Appropriate locality maps accompany this announcement.
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 lowgrade results,the	Gold mineralised material was sampled in variable intervals from less than 1m to up to 5m. No top cuts have been applied to the drill results. Up to 2m (down-hole) of internal waste is included. Mineralised intervals are reported on a weighted average basis.

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	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.
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 not been estimated given the uncertainty about which veins are hosting the gold and their variable orientation.
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 is 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 reporting of Exploration Results.	All intercepts containing average gold grades exceeding 1g-m (e.g. 1 g/t Au over a down-hole width of 1m) are reported. Holes in which no significant result were 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.	Historic drill results that are relevant to the British Banner prospect (i.e. on the same cross section as CCD001 and CCD005) are reported herein.
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	Further drilling is planned to follow up the encouraging results reported here.

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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 operates in Burkina Faso, West Africa where it has assembled a substantial regional ground position covering 1,500km[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 high grade Bongou gold deposit on which a resource estimate was calculated in September 2014. PDI also has substantial interests in a large portfolio of tenements in Côte D’Ivoire covering a total area of 3,937 km[2] .

Competent Persons Statement

The exploration results and the Exploration Target 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 Ric Moore Managing Director Company Secretary Tel: +61 402 857 249 Tel: +61 8 6143 1840 Email: Email: paul.roberts@predictivediscovery.com rmoore@auroraminerals.com

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