PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2017

Jul 19, 2017

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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: 163 million shares

Share Price: 6.9 cents

Market Capitalisation: $11.3M

Directors

Phillip Jackson Non-Exec Chairman

Paul Roberts Managing Director

David Kelly Non-Executive Director

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20[th] July 2017

Solid Initial Diamond Drilling Results from Bobosso, Cote D’Ivoire

Predictive Discovery Limited (ASX: PDI) is pleased to announce assay results from the Progress Minerals-funded diamond drilling program at the Bobosso Project in Cote D’Ivoire.

• Drill intercepts included:

• 8.7m at 3.3g/t Au from 39.6m including 1.2m at 14.3g/t Au

• 17m at 1.47g/t Au from 41m including 2m at 6.95g/t Au

• 28m at 1.00 g/t Au from 0m including 16m at 1.32g/t Au

• 13.5m at 1.36g/t Au from 77m

• 9.3m at 1.72g/t Au from 0m

• 2m at 4.64g/t Au from 54m, including 1m at 7.63g/t Au

• Good evidence of gold mineralisation continuity along east-west to eastnorth-east trending zones, consistent with PDI’s geological model

• Multiple gold intercepts in most holes with all but one hole containing reportable gold intercepts.

• 17 holes drilled, totalling 1,657m

Mr Paul Roberts, Predictive’s Managing Director said: “We now have joint ventures with well-credentialed partners on much of the ground that we hold in Cote D’Ivoire. Exploration by Toro Gold on the first of those joint ventures has already produced excellent results, most notably through high grade and/or broad drill intercepts on the Boundiali permit. These new drill results from the Bobosso Project, funded by Progress Minerals Inc, are giving good early positive indications from yet another project in the Predictive portfolio.

This program was designed to test our concept that the known disseminated gold mineralisation style on the Bobosso prospect is largely controlled by the E- W to ENE structures seen in aeromagnetic maps (Figure 2) and was poorly tested by the historical drilling. A secondary objective was to test higher grade veinstyle targets in the prospect. Four small areas were tested out of the very large known gold mineralised system. Close spaced drilling in these areas has largely confirmed that the main, disseminated gold mineralised style can be traced from hole to hole in a series E-W to ENE striking zones. Testing of one higher grade vein target also obtained encouraging results.

Predictive and Progress are now planning the next field season program, commencing in October, which is expected to consist of a combination of RC drilling and geochemical exploration programs.

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Figure 1: Locality map showing the Bobosso Project. The granted Wendene and Bassawa permits lie directly to the south of the Dabakala permit application (highlighted). The map also shows the initial Toro Joint Venture permits (brown), the GIV Joint Venture permits and permit applications (blue), the new wholly owned Ivoirian Resources SARL permit applications (in green) and the recent, optioned Sika Resources SARL permit applications (in magenta).

INTRODUCTION

The Bobosso Project consists of two granted exploration permits, Bassawa and Wendene in northern Cote D’Ivoire (Figure 1), which are held by an Ivoirian company, XMI SARl ( XMI ). Bassawa and Wendene are located in the southern extension of the well mineralised Hounde Belt in Burkina Faso, which includes Semafo’s Mana Mine (5 Moz in ore resources and reserves[1] ).

1 See http://www.semafo.com/English/operations-and-exploration/reserves-and-resources/default.aspx

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Previous exploration by Equigold, Lihir and Newcrest including a series of large drilling programs totalling 569 RC holes and 11 diamond drill holes. This obtained many gold mineralised intercepts beneath a 7km[2] gold-in-soil geochemical anomaly (ASX release dated 28/10/15) indicating the presence of a large gold mineralised system.

Geological mapping and re-logging of historical diamond drill core by Predictive staff has demonstrated that the gold mineralisation is hosted in a sequence of mafic volcanics, with lesser felsic to intermediate volcanics and minor metasediments. Gold mineralisation is found in both broad, moderate grade alteration zones (silica-sericite-carbonate-pyrite) and narrower, higher grade quartz veins.

PDI has earned a 37% equity in the Bobosso project through an agreement which was signed in October 2015 with the owner of XMI, West Africa Venture Investment ( WAVI ). More recently, Predictive and WAVI have entered into a funding agreement with Progress Minerals Inc ( Progress ) by which Progress is funding US$1 million of expenditure to earn a 30% equity in the project (ASX release dated 16/3/17). The new diamond drilling program forms a major part of that commitment.

DIAMOND DRILLING PROGRAM

A diamond drilling program, totalling 17 holes and 1657m, was completed in May 2017. It was designed to explore four small areas within the large Bobosso gold mineralised system by:

• testing for mineralisation continuity along east-west to north-east trends identified from geological mapping and geophysical surveys (see Figure 2), and

• following up several historical, high-grade gold intercepts.

The historical drilling was mostly drilled from west to east on an ESE (105⁰) azimuth. This assumed that the target mineralisation was orientated NNE. A subsequent aeromagnetic survey indicated that the mineralisation distribution was probably controlled by ENE orientated structures (Figure 2). This drill program was designed to test the validity of that concept. The bulk of drill holes in this program were therefore drilled on an azimuth of 160⁰ to test ENE striking zones dipping towards the north.

The diamond drilling was carried out by PPI and the core samples were assayed by ALS in Ghana. Additional details about the program are provided in Table 1.

Four target areas were drill tested (Figure 2):

Target Area 1

Drilling here was designed to follow-up a high-grade quartz vein mineralisation style as well as lower grade disseminated mineralisation.

Figure 3 illustrates the distribution of gold mineralised intercepts from this drill program in relation to historical drill intercepts (reported to the ASX on 28/10/15). It shows several gold mineralised zones, the most important one of which can be traced over at least 150m of strike, is open to both the west and east and dips towards the north. The figure also shows the location of two higher-

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grade intercepts in historical holes BDD001 and BRC083 which intersected a higher-grade quartz vein style of mineralisation including 6m at 17.3g/t Au . The distribution of the latter relative to the lower grade disseminated gold mineralisation style is illustrated in Figure 4.

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Figure 2: Diamond drill target locations plotted on a map showing east-west to east-north-east structures defined by aeromagnetic data, gold mineralised historical drill holes (containing at least 2 gxm) as red dots and unmineralised holes as white dots. Note the scale of the gold mineralised system with drilling extending over 4km of strike length on multiple structures.

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Figure 3: Target 1 plan view showing results of recent diamond drilling program (in red) along with historical results in black (reported to the ASX on 28/10/15). Black dots show the centre point of each gold intercept (reported at a 0.25g/t Au cut-off grade). Holes BOBDD016 and BOBDD017 were designed to test the along strike extension of the shallow gold mineralised zone encountered in holes BOBDD001 and

BOBDD004.

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Figure 4: Cross-sectional view through Target 1 illustrating the spatial relationship between the lower grade disseminated gold mineralised style and the higher-grade quartz vein type. Results of holes BDD001 and BRC083 were reported to the ASX on 28/10/15. Note that the apparent widening of the gold mineralised zone in the near-surface is interpreted as supergene lateral re-distribution of the gold.

Target Area 2

Drilling here was designed to follow-up an area containing several high-grade quartz vein intercepts and some known artisanal workings which are also known to contain high-grade vein style mineralisation.

Figure 5 shows that one of the diamond drill holes, BOBDD007, intersected two zones of high-grade quartz vein-hosted gold mineralisation: 2.2m at 8.77g/t Au including 1.2m at 14.25g/t Au and 1.45m at 6.16g/t Au including 0.5m at 11.8g/t Au .

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Figure 5: Target 2 plan view showing results of recent diamond drilling program (in red) along with historical results in black (reported to the ASX on 28/10/15). Black dots show the centre point of each gold intercept (reported at a 0.25g/t Au cut-off grade).

Target Area 3

Drilling here was designed to confirm an apparently east-west striking and north-dipping zone of gold mineralisation. The close spaced drilling confirmed the east-west strike and north dip of a modest grade zone over a strike length of approximately 200m (Figure 7).

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Figure 6: Target 3 plan view showing results of recent diamond drilling program (in red) along with historical results in black (reported to the ASX on 28/10/15). Black dots show the centre point of each gold intercept (reported at a 0.25g/t Au cut-off grade).

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Target zone 4

Drilling here was designed to test several mineralised zones with uncertain strike orientations (either E-W or NE).

Figure 7 shows that the principal disseminated gold mineralisation zone here strikes WNW, consistent with foliation trends observed in the core, and is open to the west.

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Figure 7: Target 4 plan view showing results of recent diamond drilling program (in red) along with historical results in black (reported to the ASX on 28/10/15). Black dots show the centre point of each gold intercept (reported at a 0.25g/t Au cut-off grade).

CONCLUSIONS

This drill program has shown that:

• The predominant, disseminated gold mineralisation style can be traced from hole to hole over distances of more than 100m and, in the areas tested, strikes between NE through E- W to ESE. Foliation and occasional bedding orientations vary through the same range of strike orientations as the disseminated mineralisation, suggesting that mineralisation distribution is controlled by the structures seen in the aeromagnetic map (Figure 2).

• The mineralisation continuity demonstrated in this program will be helpful in planning future resource drill-outs over the Bobosso mineralised system.

• Given that the previous drilling is oriented very obliquely to the mineralisation strikes observed in this program, there is significant potential to find more such mineralisation, potentially in multiple parallel zones in the large gaps between the earlier drill lines. Most of the mineralisation drilled in this program is open along strike on both directions.

• The higher-grade quartz vein style appears to be less persistent along strike and will require more detailed drilling to define resources.

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NEXT STEPS

Predictive and Progress are currently reviewing the results of this drill program with a view to planning the next field program commencing after the rainy season in October. While the details of that program have not yet been decided, it is expected to include a significant RC drilling program on the Bobosso prospect along with a regional geochemical exploration program.

BACKGROUND - AGREEMENT WITH PROGRESS MINERALS

Predictive entered a three way agreement between Progress Minerals International Inc (Progress) and a local Ivoirian Company, West Africa Venture Investment ( WAVI ) during the March Quarter, to enable funding of exploration programs on the Bobosso permits. This agreement supersedes an agreement between PDI, WAVI and XMI in October 2016 (ASX release 27/10/15) which was subsequently updated in November 2016. Key terms of this agreement are as follows:

• Investments in the Bobosso Project will be made through West African Mine Investments Pty Ltd ( WAMIL ), a Western Australian based private company, owned by Predictive Discovery Limited (37%) and WAVI (63%). At present WAMIL owns 50% of XMI with the remaining 50% of XMI to be transferred to WAMIL once permission to do so has been granted by the Cote D’Ivoire Minister of Mines. This is a standard requirement under Ivoirian law and is expected soon.

• Predictive will provide technical management of work programs during the exploration phase in conjunction with Progress. WAVI will provide local management support in Cote D’Ivoire.

• Equities in WAMIL will be earned as follows:

▪ Stage 1:

• Progress will invest US$1 million (approximately A$1.3 million) in exploration on Bobosso in one year or less to earn a 30% equity in WAMIL. These monies will be spent on a work plan agreed between the parties including:

• 1,500-2,500m of diamond drilling on the Bobosso gold mineralised system.

• Ground magnetics survey over 20 km[2] on the Bobosso soil geochemical anomaly and surrounding area to help interpret the detailed geological structure of the area prior to diamond drilling.

• Geological mapping and BLEG gold geochemical surveys over the granted permits. These will be extended over the Dabakala permit application (Figure 1) if it is granted prior to the rainy season.

• Follow-up RC drilling (also to be partially funded in Stage 2).

• This program is designed to ensure that Predictive has the key information it requires to make decisions about its participation in the Stage 2 work program (see details below).

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• Payments totalling US$75,000 in cash were paid to WAVI after signature of the agreement in February 2017.

• Equities at the end of Stage 1 will be PDI 30%, Progress 30% and WAVI 40%.

▪ Stage 2:

• At its option, Progress may invest a further US$1.5 million (approximately A$2 million) in WAMIL in 12 months or less to earn an additional 25% equity.

• If Progress invests the US$1.5 million, PDI has the option to purchase equity from WAVI such that its equity in WAMIL will remain at 30% and WAVI will be reduced to 15%. It is PDI’s present intention to do this, however if PDI and WAVI cannot agree on a price for that transaction, PDI can choose to contribute pro rata to the Stage 2 exploration program to maintain its 30% equity or simply dilute to 19.1% (in the case of disappointing results).

• If Progress contributes and PDI maintains its 30% equity, the parties’ equities at the end of Stage 2 will be Progress 55%, PDI 30% and WAVI 15%.

▪ After Stage 2:

• Any of the three partners may contribute to pre-approved work programs to maintain their respective equities in WAMIL or dilute down in accordance with a standard dilution formula.

• Once WAVI’s equity is reduced to 15%, it will be free carried at that level through to decision to mine, at which point it will be required to either contribute to a mine development or dilute down in accordance with a standard dilution formula.

TABLE 1 – DRILL RESULTS – PROGRESS MINERALS JV

BOBOSSO DIAMOND DRILL PROGRAM

Hole No.	UTM 30N Easting	UTM 30N Northing	RL (m)	Hole depth (m)	Hole dip (°)	Azimuth (°)	0.25g/t Au cut-off	0.25g/t Au cut-off	0.25g/t Au cut-off	0.5g/t Au cut-off	0.5g/t Au cut-off	0.5g/t Au cut-off	Comments
							Depth from (m)	Down- hole interval (m)1	Au (g/t)2	Depth from (m)	Down- hole interval (m)1	Au (g/t)2
BOBDD001	380271	943450	279	99.1	-60	160	0	28	1.00	0	16	1.32
BOBDD001	380271	943450	279	99.1	-60	160				21	3	1.27
BOBDD001	380271	943450	279	99.1	-60	160	48	5	0.57	50	3	0.70
BOBDD001	380271	943450	279	99.1	-60	160	61	1	3.08	61	1	3.08
BOBDD002	380218	943465	283	83.0	-60	160	19	1	1.15	19	1	1.15	Hole abandoned
BOBDD002	380218	943465	283	83.0	-60	160	31	7	0.88	31	7	0.88
BOBDD002	380218	943465	283	83.0	-60	160	49	17	0.60	50	4	0.98
BOBDD002	380218	943465	283	83.0	-60	160				60	6	0.75
B0BDD003	380169	943481	281	131.2	-60	160	0	1	2.41	0	1	2.41
B0BDD003	380169	943481	281	131.2	-60	160	31	5	0.55	34	2	0.80

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B0BDD003	380169	943481	281	131.2	-60	160	63	4	1.58	65	2	2.74
B0BDD003	380169	943481	281	131.2	-60	160	76	1	1.84	76	1	1.84
B0BDD003	380169	943481	281	131.2	-60	160	97	2	0.56	97	2	0.56
BOBDD004	380310	943465	278	119.0	-60	160	0	9.3	1.72	0	7.8	1.96
BOBDD004	380310	943465	278	119.0	-60	160	27	3	0.61	27	1	1.01
BOBDD004	380310	943465	278	119.0	-60	160	50	16	0.85	51.5	8.5	1.26
BOBDD004	380310	943465	278	119.0	-60	160				64	2	0.76
BOBDD005	381857	944018	302	71.0	-45	305	no significant result
BOBDD006	381866	944022	302	62.0	-60	340	0	2.1	1.92	0	2.1	1.92
BOBDD006	381866	944022	302	62.0	-60	340	16	2	1.17	16	2	1.17
BOBDD007	381785	944015	300	107.2	-60	340	39.6	2.2	8.77	39.6	2.2	8.77	Broader intercept of 8.65m at 3.29g/t Au including 1.2m at 14.3 g/t Auand 0.5m at 11.8g/t Au
BOBDD007	381785	944015	300	107.2	-60	340	46.8	1.45	6.17	46.8	1.45	6.17
BOBDD008	379289	943491	275	83.3	-60	160	42	6	0.85	43	5	0.95
BOBDD008	379289	943491	275	83.3	-60	160	8	4	0.44
BOBDD009	379248	943489	270	95.8	-60	160	36	9	1.55	36	9	1.55
BOBDD009	379248	943489	270	95.8	-60	160	83	5	0.28
BOBDD009	379248	943489	270	95.8	-60	160	91.1	1.9	1.67	91.1	1.9	1.67
BOBDD010	379207	943497	267	80.8	-60	160	0	1	1.68	0	1	1.68
BOBDD010	379207	943497	267	80.8	-60	160	17	12	0.77	18	6	1.09
BOBDD010	379207	943497	267	80.8	-60	160				28	1	1.71
BOBDD011	379168	943503	266	83.3	-60	160	22	4	0.81	24	2	1.30
BOBDD011	379168	943503	266	83.3	-60	160	45.2	0.9	2.84	45.2	0.9	2.84	Broader intercept of 10.8m at 1.16g/t Au, including 1m at 7.63g/t Au
BOBDD011	379168	943503	266	83.3	-60	160	54	2	4.64	54	2	4.64
BOBDD011	379168	943503	266	83.3	-60	160	62	3	0.39
BOBDD012	379085	943501	263	83.8	-60	160	0	1	2.10	0	1	2.10	Broader intercept of 12.5m at 1.05g/t Au
BOBDD012	379085	943501	263	83.8	-60	160	5.5	7	1.51	7.5	5	1.96
BOBDD012	379085	943501	263	83.8	-60	160	50	4	0.74	50	4	0.74
BOBDD013	378465	943318	254	101.0	-60	160	41	17	1.47	41	5	3.77	Includes 2m at 6.95g/t Au
BOBDD013	378465	943318	254	101.0	-60	160				51	2	1.25
BOBDD014	378457	943369	251	113.5	-60	160	92	19	0.63	106	5	1.09
BOBDD015	378422	943342	252	120.5	-60	160	77	13.5	1.36	77	13.5	1.36
BOBDD016	380321	943495	280	120.6	-60	160	0	2	0.59	0	2	0.59
BOBDD016	380321	943495	280	120.6	-60	160	6	2	0.91	6	2	0.91
BOBDD016	380321	943495	280	120.6	-60	160	13	1	1.19	13	1	1.19
BOBDD016	380321	943495	280	120.6	-60	160	23	11	0.96	23	11	0.96
BOBDD016	380321	943495	280	120.6	-60	160	51	1	1.68	51	1	1.68
BOBDD016	380321	943495	280	120.6	-60	160	65	1	3.66	65	1	3.66
BOBDD016	380321	943495	280	120.6	-60	160	112	4	2.42	112	4	2.42	Includes 1m at 7.33g/t Au
BOBDD017	380335	943536	278	101.5	-60	160	0	1.1	1.61	0	1.1	1.61
BOBDD017	380335	943536	278	101.5	-60	160	63	8	0.39
BOBDD017	380335	943536	278	101.5	-60	160	75	8	0.73	76	7	0.77
1True widths generally not reported because the orientation of the gold mineralisation is not yet properly understood. 2Minimum grade x width interval reported of 1 g/t x m. Maximum down-hole internal waste of 3.0m apart from the broader mineralised interval reported in Comments column.

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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 detailed information.	All of the sampling described in Table 1 refers to diamond drill holes. A representative subsample of the core was obtained by splitting or cutting the core lengthways. The assayed drill samples are judged to be representative of the rock being drilled because representative sub- sampling of the diamond core samples 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, by what method, etc).	The drilling was carried out by the core drilling method.
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	Core recovery was assessed by measurement of recovered core. The geologists on site reported that recoveries are consistently good.

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	loss/gain of fine/coarse material.
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 diamond drill holes records lithology, mineralogy, mineralisation, alteration, structure, weathering and other features of the samples. Logging of sulphide mineralization and veining is quantitative. All holes were logged in full. 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 lengthways. The sampled material is considered to be representative of the samples 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 reported in this release were assayed for gold by 50g fire assay at the ALS laboratory in Ghana. At the lab, regular assay repeats, lab standards, checks and blanks were inserted and analysed. Unlabelled standards (Certified Reference Materials) and blanks were also inserted by team members on site at Bobosso. Samples were prepared at ALS’s sample preparation laboratory at Yamoussoukro in Cote D’Ivoire.
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 twinning was undertaken in this program. Field data collection was undertaken by site geologists and supervised by Predictive and Progress 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 WGS84 datum, Zone 30 North.
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 been applied	The holes reported here were drilled as shown on the included locality plans. No judgement has yet been made by an independent qualified consultant on whether the drill density is sufficient to calculate a Mineral Resource. The 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.	All drill holes reported here were drilled approximately at right angles to the anticipated strike of the gold mineralisation.

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	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.
Sample Security	The measures taken to ensure sample security	The core samples are currently stored securely in a rented shed close to the Bobosso field camp site.
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 Wendene exploration permit (on which the Bobosso prospect is located) was granted to XMI SARL in December 2015. Currently, Predictive Discovery Limited holds 37% and West Africa Mine Investment (WAVI) holds 63%. Progress Minerals Inc is earning 30% by expenditure of $US1 million on exploration. Once this expenditure is complete, Progress will hold 30%, Predictive 30% and WAVI 40%.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	A substantial amount of exploration was carried out by Equigold and Lihir Gold Limited. This work has been acknowledged and the historical drill results reported to the ASX on 20/1015.
Geology	Deposit type, geological setting and style of mineralisation.	The geology of the Bobosso permit consists of mafic volcanics and intrusives, metasediments, felsic volcanics and intrusives. The target deposit is type is “orogenic gold”.
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.	All the required data is provided in Table 1 (above).
Data Aggregation Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or

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	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.	Diamond core samples were typically cut and assayed in 1m intervals, however more selective sampling was performed on more specific features of interest such as quartz veins. No top cuts have been applied to the drill results. Up to 3m (down-hole) of internal waste is included except in the reported broader mineralised intervals where variable but sometimes large amount of internal waste are included. 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 generally not yet been estimated as these will be guided by a 3D interpretation of the drill results which is still in progress.
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.	Appropriate plans and a representative cross section are included in this release.
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.	Intercepts are reported at 0.25g/t Au and 0.5g/t Au cutoffs and containing at least 1g/t x m with a maximum thickness of internal waste of 3m.
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.	All relevant exploration data is either reported in this release or has been reported previously and is referred to in the release.
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling.	A program of follow-up RC drilling and regional geochemical exploration is currently under consideration.

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

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 1,200km[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 large portfolio of permits and permit applications in Côte D’Ivoire covering a total area of over 6,000 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 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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