PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2016

Mar 9, 2016

10[th] March 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: 0.2 cents

Market Capitalisation: $2.6M

Directors

Phillip Jackson Non-Exec Chairman

Paul Roberts Managing Director

David Kelly Non-Executive Director

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Diamond Drilling Commences in Cote D’Ivoire

Predictive Discovery Limited (ASX: PDI) is pleased to announce that Joint Venture partner, Toro Gold Limited, has commenced a diamond drilling program on the Kokoumbo permit in Cote D’Ivoire:

• Drilling is targeting gold mineralisation encountered in chip-channel sampling in the Kokoumbo Hill prospect (ASX release of 10 November 2015), including:

o 44m at 3.8g/t Au including 2m at 25.7g/t Au, and

• 26m at 2.9g/t Au.

• Recent large scale artisanal mining has exposed large areas of bedrock. Discussions with artisanal miners suggest that much of it is auriferous.

• First drill results are expected late next month.

Mr Paul Roberts, Predictive’s Managing Director said: “We are pleased to announce that exploration drilling is now underway in the Toro Gold JV, less than 12 months after the full JV Agreement was signed. Toro’s recent work has demonstrated that there is a new style of mineralisation on Kokoumbo Hill with significant gold grades in the near surface, which is untested by previous drilling. Large areas of exposure generated by artisanal miners in the past year suggest that a substantial mineralised system could be present.

Toro’s work has advanced rapidly on the four joint venture permits in Cote D’Ivoire. With RC drilling planned for the northern Boundiali permit in April, we can expect significant newsflow from two drill programs in the coming months.”

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Figure 1: Portable diamond drill rig being set up on first drill site at Kokoumbo. Note large area of bedrock exposure in the background generated recently by artisanal miners.

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INTRODUCTION

Predictive is in Joint Venture with Toro Gold Limited ( Toro ), a UK-based company, on four permits in Cote D’Ivoire (Figure 2). Under the terms of the Joint Venture agreement, Toro can earn a 51% interest in Predictive Discovery Cote D’Ivoire SARL (Predictive CI), which holds Predictive’s interest in the four permits, by spending US$1 million on exploration and option payments. Once Toro has achieved its 51% interest, PDI may contribute 49% of expenditure from then on or dilute. If PDI decides to dilute, Toro can earn a further 14% in Predictive CI by spending an additional US$2.5 million on exploration of the ground, leaving PDI with a 35% holding.

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Figure 2: Locality map showing location of Kokoumbo permit and PDI’s other exploration ground interests in Cote D’Ivoire. The Toro joint venture permits are shown in brown and the ground covered by PDI’s agreement on the Bobosso Project with the Ivoirian company, XMI SARL, is shown in red.

DIAMOND DRILLING PROGRAM

The diamond drilling program is planned to test a new zone of mineralisation identified in chipchannel sampling in late 2015 (ASX release dated 10 November 2015, and see Figure 3). The

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orientation of this mineralisation is unknown at this stage but is suspected to be shallow dipping to the east.

The drilling is being carried out using a man-portable rig which can be placed at drill sites on the flank of Kokumbo Hill without requiring bulldozer access (see Figure 1). First drill results are expected in 4-6 weeks.

As Figures 1 and 4 illustrate, a large area of this flank of Kokoumbo Hill has been exposed by artisanal miners. Conversations with some of them suggest that a significant proportion of the material they have removed is gold-bearing. While the orientation, width and bulk grade of the gold-bearing zones is not yet clear, the scale of the exposures and the results of the chip-channel samples suggest that broad gold mineralised widths may be present.

Toro’s mapping of the exposed area has identified outcrops of a quartz-bearing diorite/granodiorite which appears to contain better gold grades than the adjacent mafic rocks in chip-channel sampling. Similar intrusive felsic rocks are known to be associated with gold mineralisation elsewhere in this greenstone belt at the Bonikro and Agbaou Mines (see Figure 2) where bulk mineable gold mineralisation is currently being extracted.

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Figure 3: Map of Kokoumbo chip-channel sampling locations, showing gold values as a red histogram plotted on the side of the sample sites, along with rock chip and selective quartz samples (both float and outcrop samples).

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Figure 4: Toro and Predictive geologists examining exposures created by recent artisanal mining activity on Kokoumbo Hill.

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 1,500km[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 interests in a strategic portfolio of tenements in Côte D’Ivoire covering a total area of 2,700 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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