PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2020

Sep 16, 2020

17 September 2020

NEW PERMITS GRANTED ALONG STRIKE FROM FLAGSHIP BANKAN PROJECT

Predictive Discovery Limited (“Predictive” or “Company”) (ASX: PDI) is pleased to announce a substantial strengthening of its land position within Guinea’s Siguiri Basin with the acquisition of the Argo exploration permit and granting of the Bokoro exploration permit.

Argo (58km[2] ) and Bokoro (100km[2] ) are strategically located directly along strike from the Bankan Project located within the Kaninko and Saman permits (Figure 1) where the Company has continued to expand its gold discoveries through reverse circulation (RC), diamond (DD) and power auger drilling. Argo includes known artisanal gold workings (Figure 2). Neither permit has been systematically explored.

==> picture [517 x 455] intentionally omitted <==

Figure 1 – Guinea Portfolio, Bokoro and Argo Permit Locations

Recently announced drilling results have confirmed the true width of a large mineralised ore body at Bankan in fresh rock[1] . These new permits ensure that the Company can continue to explore for potential northsouth mineralised zones well to the north of the NE Bankan and Bankan Creek gold discoveries, with the north-south strike length under Predictive’s control now doubled to approximately 35km and the total ground position expanded to 358km[2] (Figure 1).

==> picture [465 x 350] intentionally omitted <==

Figure 2 – Artisanal workings, Argo Permit, Guinea

The Bokoro permit has been granted to local Predictive subsidiary, Kindia Resources SARLU.

The Argo permit was granted on 10 October 2018 and is currently held by Argo Mining SARLU ( Argo Mining ). Under the terms of the agreement with Argo Mining ( Argo Acquisition Agreement ), following completion of legal due diligence which is now in progress, Predictive is entitled to acquire 100% of the permit in stages under the following terms:

• Transfer of ownership of Argo Mining to an Australian subsidiary ( Newco ) of which the original Argo owners will initially hold 100%.

• Predictive will manage all exploration activities of Argo Mining.

1 ASX release – 10 September 2020 - 55M AT 2.94 G/T GOLD – BROAD TRUE WIDTHS CONFIRMED AT BANKAN, GUINEA https://www.investi.com.au/api/announcements/pdi/94452194-ceb.pdf

Page 2 of 3

• Aggregate payment to the current owners of up to US$100,000 will be made in three tranches:

  • After US$67,000 is paid, Predictive will own 51% of Newco.

  • After the full US$100,000 is paid, the Company will own 90% of Newco.

  • The above cash payments may be accelerated at any time at Predictive’s sole discretion.

  • At decision to mine, Predictive will acquire the remaining 10% of equity in Newco in exchange for a 2% net smelter royalty on mine production from the property, half (1%) of which can then be acquired by the Company at any time by payment of US$2 million.

• Predictive may withdraw from the Argo Acquisition Agreement at the end of the first year after completion of geological, geochemical and geophysical (ground magnetics) surveys and payment of US$33,500.

-END-

This announcement is authorised for release by Predictive Managing Director, Paul Roberts. For further information visit our website at www.predictivediscovery or contact:

Paul Roberts

Managing Director Tel: +61 402 857 249 Email: paul.roberts@predictivediscovery.com

Page 3 of 3