PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2017

Apr 12, 2017

==> picture [596 x 107] intentionally omitted <==

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: 1.63B shares

Share Price: 1.1 cents

Market Capitalisation: $17.9M

Directors

Phillip Jackson Non-Exec Chairman

Paul Roberts Managing Director

David Kelly Non-Executive Director

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

13[th] April 2017

Diamond Drilling commences on Bobosso Project, Cote D’Ivoire

Predictive Discovery Limited (ASX: PDI) is pleased to announce that diamond drilling will commence on its Bobosso Project in Cote D’Ivoire in the next few days. As announced on 16[th] March, 2017, the program is being funded by Canadian company, Progress Minerals Inc, which is earning an initial 30% interest in the Project by funding US$1 million in exploration expenditure.

• Between 1,500 to 2,500m of diamond drilling is planned, with the aim of developing a clear geological model of gold mineralisation continuity which can support later resource estimations. Drill program objectives are to:

• test for mineralisation continuity along east-west to north-east trends identified from geological mapping and geophysical surveys, and

• follow up several historical high grade gold intercepts

• Drilling will be conducted in areas where historical drilling has intersected encouraging intercepts in holes that are now interpreted to have tested some of the Bobosso gold mineralised zones with incorrectly orientations. Historical drill intercepts that will be followed up include (ASX release dated 28/10/15):

• Target zone 1:

  • 5m at 20.6 g/t Au from 48m, including 3m at 31.8g/t Au

  • 7m at 3.70 g/t Au from 97m including 0.34m at 36.9g/t Au .

• Target zone 2:

  • 7m at 9.52 g/t Au from 26m.

• Target zone 3:

  • 9m at 4.2g/t Au from 12m,

  • 7m at 5.36 g/t Au from 17m,

  • 12m at 1.53g/t Au from 4m including 1m at 12.8g/t Au ,

  • 18m at 1.79 g/t Au from 29m.

• Target zone 4:

  • 32m at 1.93g/t Au from 12m,

  • 25m at 1.45g/t Au from 11m including 3m at 4.73 g/t Au ,

  • 24m at 1.12g/t Au from 6m including 10m at 1.82 g/t Au

Mr Paul Roberts, Predictive’s Managing Director said: “We are very pleased to begin the drilling at Bobosso. This program follows up two months of preparatory field work involving members of our Burkina and Australian teams along with Progress Minerals staff. Oriented diamond drill core from this program will provide us with critical structural geological information to guide future infill drilling programs.

The intensity of exploration activities on our ground continues to grow in Cote D’Ivoire. Elsewhere, our joint venture with Toro Gold Limited has now completed the Boundiali diamond drilling and is gearing up for an RC program on the same permit, which we expect to commence in the next two to three weeks.”

==> picture [596 x 77] intentionally omitted <==

INTRODUCTION

The Bobosso Project consists of two granted exploration permits, Bassawa and Wendene and one permit application, Dabakala, in northern Cote D’Ivoire (Figure 1), which are held by an Ivoirian company, XMI SARL ( XMI ). This ground is 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] ) and Roxgold’s high grade Yaramoko gold mine (1.6 Moz in ore resources at an average grade of 14g/t Au[2] ).

==> picture [397 x 406] intentionally omitted <==

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 new, optioned Sika Resources SARL permit applications (in magenta).

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

2 See http://www.roxgold.com/s/Yaramoko.asp

2

==> picture [596 x 77] intentionally omitted <==

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 ). Recently, Predictive and WAVI entered into a funding agreement with Progress Minerals Inc ( Progress ) by which Progress will fund 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

The drilling program is designed to test portions of the large Bobosso gold mineralised system. Historic drilling obtained many gold mineralised intercepts beneath a 7km[2] gold in soil geochemical anomaly (ASX release dated 28/10/15).

Between 1,500 to 2,500m of diamond drilling is planned, with the principal aim of developing a clear geological model of gold mineralisation continuity which can support later resource estimation studies. The program’s detailed objectives are to:

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

• follow up several historical high grade gold intercepts,

• test for along strike extensions to known mineralisation, once the strike direction has been determined.

Drilling will be conducted in areas where historical drilling has intersected encouraging intercepts in holes that are now interpreted to have tested some of the Bobosso gold mineralised zones with incorrectly oriented holes. Four initial target areas have been identified (see Figure 2):

• Target zone 1:

• Testing apparently near-vertical high grade quartz veining.

• Following up historical drill intercepts[3] :

  • BRC083: 5m at 20.6 g/t Au from 48m, including 3m at 31.8 g/t Au,

  • BDD001: 7m at 3.7 g/t Au from 97m including 0.34m at 36.9 g/t Au .

• Target zone 2:

• Testing an isolated high grade intercept in an area where several high grade veins have been intersected in other areas and/or discovered by artisanal miners.

• Following up a historical drill intercept[3] :

  • BRC0278: 7m at 9.52 g/t Au from 26m .

• Target zone 3:

3 Reported to the ASX on 28/10/15

3

==> picture [596 x 77] intentionally omitted <==

• Testing an apparently east-west striking and north-dipping zone of gold mineralisation

• Following up historical drill intercepts[4] including:

  • BRC561: 9m at 4.2g/t Au from 12m,

  • BRC097: 7m at 5.36 g/t Au from 17m,

  • BRC313: 12m at 1.53g/t Au from 4m including 1m at 12.77g/t Au ,

  • BRC004: 18m at 1.79 g/t Au from 29m .

• Target zone 4:

• Testing several mineralised zones with uncertain strike orientations (either eastwest or north-east).

• Following up historical drill intercepts including:

  • BRC047: 32m at 1.93g/t Au from 12m,

  • BRC343: 25m at 1.45g/t Au from 11m including 3m at 4.73 g/t Au ,

  • BRC076: 24m at 1.12g/t Au from 6m including 10m at 1.82 g/t Au .

==> picture [377 x 268] intentionally omitted <==

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.

4 Reported to the ASX on 28/10/15

4

==> picture [596 x 77] intentionally omitted <==

==> picture [447 x 172] intentionally omitted <==

Figure 3: Photograph of new tent camp site established for the drilling program near the Bobosso Prospect.

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

5