PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2020

May 10, 2020

11 May 2020

Dear Optionholder

Notice to Optionholders of Non-Renounceable Entitlement Offer

Overview of Entitlement Offer

We write to you as the registered holder of options ( Options ) in Predictive Discovery Limited (ASX:PDI) ( Company ) as at today's date. As advised in the Company's ASX announcement dated 5 May 2020, the Company is undertaking a pro rata non-renounceable entitlements offer to all eligible shareholders for the issue of 1 new Share for every 15 Shares held at the record date on 14 May 2020 ( Record Date ) at an issue price of $0.05 each to raise approximately $2.1 million (before costs) ( Entitlement Offer ).

The Entitlement Offer is available to all Company shareholders ( Shareholders ) registered on the Record Date whose registered address is in Australia, New Zealand, Mauritius, Hong Kong and Singapore ( Eligible Shareholders ). The Entitlement Offer is not being extended to any Shareholders with addresses outside these jurisdictions.

A prospectus in relation to the Entitlement Offer was lodged with ASIC on 11 May 2020 and will be sent to Eligible Shareholders in due course ( Prospectus ).

Your Participation

Under the terms of the Options you currently hold, there is no entitlement to participate in the Entitlement Offer unless you exercise your Options into Shares, and are entered onto the register as a shareholder of the Company by 5pm (AWST) on the Record Date.

If you wish to participate in the Entitlement Offer, a notice of Options exercise and payment of the Options' exercise price should be lodged with the Company's share registry, Link Market Services Limited with sufficient time to ensure that you are registered as a shareholder of the Company by the Record Date.

If you do not wish to participate in the Entitlement Offer, no action is required.

Further details

Details of the Entitlement Offer are contained in the Prospectus lodged with ASX on 11 May 2020. The Prospectus can be accessed from the ASX and Company websites, www.asx.com.au and https://www.predictivediscovery.com/ respectively. It is important that you read the Prospectus carefully before deciding whether to exercise your Options.

If you require clarification on any of the above matters, please contact the Company Secretary by telephone on +61 8 6143 1840 and for all general shareholder enquiries, please contact Link Market Services Limited.

Yours sincerely

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Paul Roberts Managing Director