PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2019

Oct 15, 2019

16 October 2019

$1.75M RAISED TO DRIVE EXPLORATION PUSH IN GUINEA AND COTE D’IVOIRE

Predictive Discovery Limited (ASX: PDI ) (“Predictive or “the Company”) is pleased to announce that it has received binding commitments for a placement to raise up to $1,750,000 (before costs) through a placement of up to 175 million new shares at a price of 1 cent per share (“ Placement ”).

The Placement was backed by a $250,000 cornerstone commitment by Capital DI, and was also supported by a number of other large shareholders, as well as a number of new professional and sophisticated investors. Upon close of the Placement it is expected that Capital DI’s shareholding will increase to 14.08%.

The Company is also pleased to announce that it will undertake a Share Purchase Plan to raise up to $500,000 on the same terms as the Placement. Details of the Share Purchase Plan will be released to shareholders as soon as practicable.

Hartleys Limited is Lead Manager to the Placement.

“The Company is delighted with the strong interest shown in this capital raising. We are very happy to again enjoy Capital DI’s strong support of Predictive’s West African exploration through this placement. We also thank existing shareholders who have supported the offer, as well as a number of new shareholders that we welcome to our register.

“The Company is now well placed to continue work over its highly prospective landholdings in Guinea and Cote D’Ivoire, which will include drilling activity kicking off next month in Cote D’Ivoire at our exciting Ouarigue North gold discovery on the Ferkessedougou North Project.

“We look forward to further positive news flow in the months ahead as we prepare for an initial drilling campaign at our 100%-owned Projects in Guinea within the exciting Siguiri Basin which hosts Anglogold’s large Siguiri Mine (+10Moz ), and advance drilling on our Cote D’Ivoire Joint Venture with Resolute Limited .” Commented Managing Director, Paul Roberts.

USE OF FUNDS

Funds raised will be used to advance the Company’s 100%-owned Guinea Porfolio (Figure 1), and to allow Predictive to maintain its interests in and contribute to the Company’s Cote D’Ivoire Joint Venture with Australian Gold Producer Resolute Mining (ASX: RSG).

In Guinea the Company’s early stage exploration has already returned very promising results including multiple wide zones of anomalous gold mineralisation. Predictive is currently in-country working up targets with a drilling program expected in Q1 2020.

In Cote D’Ivoire the focus will principally be on drilling and sampling programs on the exciting Ferkessedougou North and Boundiali Projects, with the next round of drilling expected to commence this quarter.

Resolute Joint Venture

Ferkessedougou North

In June, Predictive announced the discovery of the Ouarigue South deposit (Figure 2), a mineralised body up to 100m wide and at least 210m-long from a nine-hole diamond drilling (DD) program, with a best intercept of 45.3m at 3.16g/t gold from 45.9m including 9m at 10.31g/t gold[1] . Diamond drilling is scheduled to begin next month.

Boundiali

20km of gold-in-soil anomalies were recently tested by a 10,000m drilling program, including infill drilling at the 1.6km-long Nyangboue prospect where past drilling returned 20m at 10.5g/t gold and 30m at 8.3g/t gold[2] . Exploration programs including drilling are expected to begin soon.

100%-owned Guinea Projects

Kaninko

The exploration effort will accelerate at Kaninko over the next three months to follow up encouraging dump sample results. Work programs will include soil sampling, BLEG stream sediment sampling outside of the known mineralised areas, geological mapping, some additional dump sampling and trenching. A ground magnetics survey may also be undertaken. All this work is aimed at understanding the geology and narrowing down the most promising targets for a reconnaissance drilling program in the March quarter, 2020.

Kankan

Follow-up infill geochemical sampling will be undertaken on the Kankan grid during the quarter, commencing in the next 1-2 weeks. Ground magnetics to help define subsurface rock structure will be carried out in the next month to assist with targeting for the planned March quarter drilling program.

Nonta

Additional surface geochemical sampling and power auger drilling to test the newly discovered soil anomaly will be carried out at Nonta, commencing in November. Given sufficiently encouraging results from this work, drilling will also be planned at Nonta for the March quarter.

1 ASX Announcements - CONFIRMATION OF SIGNIFICANT NEW GOLD DISCOVERY AT FERKESSEDOUGOU NORTH, COTE D’IVOIRE - https://www.investi.com.au/api/announcements/pdi/02e800f8 176.pdf

2 ASX Announcement - 30M AT 8.3 G/T AU FROM BOUNDIALI, COTE D’IVOIRE - https://www.investi.com.au/api/announcements/pdi/9d7ee0bf 2a8.pdf

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Figure 1 – 100%-owned tenement locations and gold deposits in the Siguiri Basin on geological map

PLACEMENT DETAILS

The placement will result in the issue of up to 175 million ordinary fully paid shares in the Company at a price of 1.0c/share (“Shares”), and subject to shareholder approval. The Company will issue to investors one option for every two shares issued in the Placement with an exercise price of 1.8 cents and expiry date of three years from date of issue (“Options”).

The Placement Shares and Options will be issued in two tranches, with 73 million shares issued without shareholder approval under the Company’s 15% and 10% placement capacities (Tranche 1). 44,000,00 shares will be issued under LR 7.1, with 29,000,000 shares being issued under LR 7.1A. The remaining shares and all of the options will be subject to shareholder approval, expected at the Company’s Annual General Meeting to be held in late November.

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Settlement of the Tranche 1 Placement Shares is expected to occur on or about 23 October 2019.

SHARE PURCHASE PLAN

In order to ensure retail shareholders are provided an opportunity to participate, the Company is pleased to announce a Share Purchase Plan to raise up to $500,000 offered to all eligible shareholders at the same issue price as the Placement (SPP).

The SPP is only available to Australian and New Zealand shareholders who were registered as Predictive shareholders at 5:00pm (AWST) on 11 October 2016 (Eligible Shareholders).

If total demand for the SPP exceeds $500,000, the Company reserves the right to close the SPP early and scale back applications in its absolute and sole discretion. Full details of the SPP Offer will be contained in a booklet which is anticipated to be dispatched to Eligible Shareholders in the coming days.

A prospectus will be lodged in the coming weeks in relation to the Options issued in connection with the Placement and SPP.

Predictive advises that it is not aware of any new information or data that materially affects the exploration results contained in this announcement.

-END-

For further information please contact:

Paul Roberts

Bruce Waddell Company Secretary Tel: +61 8 6143 1840

Managing Director Company Secretary Tel: +61 402 857 249 Tel: +61 8 6143 1840 Email: paul.roberts@predictivediscovery.com Email: bruce.waddell@predictivediscovery.com

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