PREDICTIVE DISCOVERY LIMITED — Interim / Quarterly Report 2013

Apr 29, 2013

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30[th] April 2013

ASX Announcement

Quarterly Report for the Period Ended 31[st] March 2013

Highlights:

Predictive Discovery Limited is a gold exploration company with an advanced exploration project in Burkina Faso, West Africa and strong technical capabilities.

EXPLORATION

□ Eastern Burkina Faso Project:

• Follow up drilling at the Bongou gold discovery in March returned highly encouraging results including:

• BNGRC010 - 48m at 4.3g/t Au from 34m and

  • BNGRC010 - 11m at 1.4g/t Au from 91m

• BNGRC014 - 23m at 6.9g/t Au from 111m and

ASX: PDI

• BNGRC014 - 7m at 3.9g/t Au from 141m

Issued Capital: 234M shares Share Price: 3 cents

• Augments previous drill results that included 20m @ 4.8g/t Au and 10m @ 7.4g/t Au and 102m @1.1g/t Au .

• A high gold grade ore position close to the northern limit of the mineralisation has now been identified in four adjacent intercepts over a strike length of approximately 100m; the zone is open at depth and may also plunge to the east.

Market Capitalisation: $7M Cash (at 31 March 2013): $2.2M

• Geophysical surveys near Bongou identified anomalies indicative of possible Bongou-style mineralisation to the west and east of the drilled area. Four additional targets now defined on the Bongou trend.

Directors

Phillip Harman Non-Exec Chairman

• Work commenced on Bira permit, indicating potential for more Bira-style gold mineralisation in a parallel structure under thin cover. Past drilling identified gold mineralisation over a 1km strike length at Bira.

Paul Roberts Managing Director

□ Planned June Quarter Exploration Program:

Bobby Danchin Non-Executive Director

• Bedrock geochemical drilling exploring for Bongou-style mineralisation along strike from Bongou.

c Tom Whiting Non-Executive Director

• Follow-up RC drilling programs at Bongou - weather permitting.

• Preliminary metallurgical test work (in progress) for Bongou, Dave, Solna and Tambiri Prospects.

Phil Henty Non-Executive Director

CORPORATE

□ $2.2M in cash at 31st March 2013 and no debt.

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INTRODUCTION

PDI’s major country focus is Burkina Faso, West Africa where it has established a well-qualified Burkina-based exploration team and a large regional tenement package mainly in the north east of the country (Figure 1) covering 1,605km[2] .

PDI’s tenement holding covers approximately 100 km of strike length in the Samira Hill greenstone belt in eastern Burkina Faso (the Bonsiega permit group, Figure 1). This belt hosts the 2.5 million ounce Samira Hill gold mine across the border in Niger and contains numerous active artisanal gold mine sites along its length. The Bangaba permit covers 10km of strike of the nearby Sebba Belt, including the largest known artisanal workings in that belt. PDI now owns 100% or rights to earn 95 to 100% of all its permits in Burkina Faso.

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Figure 1: Locality of PDI permits, showing location of principal prospects explored by PDI in the March Quarter.

PDI has discovered gold mineralisation on multiple Prospects in its Eastern Burkina Faso project area during the past two years (e.g. Bongou, Dave, Laterite Hill, Solna, Tambiri and Fouli), all of which may contribute to a potential future major gold mining operation. In particular, PDI’s discovery of high grade gold mineralisation at Bongou has opened up a significant new exploration opportunity for the Company, both at Bongou itself and along an additional 40km of unexplored Bongou fault zone within PDI’s permits.

In the past 6 months, PDI has been focusing its attention on Prospects which offer the best combination of grade, continuity, size potential and width. Bongou itself and targets along strike

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from it meet all these criteria and are therefore the Company’s highest priority for the remainder of the field season.

PROJECTS

Burkina Faso

Bonsiega Permit Group

Bongou Prospect

The high grade Bongou gold discovery is located within the Laterite Hill Gold Field in Eastern Burkina Faso (Figure 1). It underlies artisanal workings forming an irregular open pit approximately 150m long and 50m wide. Exploration by PDI has included rock chip sampling, trenching and completion of nine RC holes in 2012 which obtained encouraging drill intersections including:

• 54m at 2.1g/t Au from 36m including 20m at 4.8g/t Au

• 10m at 7.4g/t Au from 47m

• 102m at 1.1g/t Au from 4m, including 14m at 3.0g/t Au

• 70m at 1.2g/t Au from 62m (stopped in mineralisation)

Gold mineralisation is contained within an intensely silicified and quartz veined, pyrite-bearing microgranite intrusion.

In the March Quarter, following the strong encouragement obtained in 2012, PDI carried out:

• additional geological mapping and geophysical surveys to explore for more Bongou style gold mineralisation, and

• RC drilling to infill the Bongou deposit and identify extensions.

RC Drilling Program

A five hole RC drilling program totalling 757m was completed in March 2013 (Figure 2). The holes were designed both to infill earlier intercepts and to identify extensions at depth or along strike. The December drill program showed that the gold mineralised microgranite dips to the north, so all the holes drilled in the March program were drilled from north to south.

Logging of the RC chips during the drilling program showed that the mineralisation is affected by a complex shear zone at its western end with apparently less structural complexity to the east. The last hole, BNGRC014 was therefore designed to test the eastern portion of the zone. One other hole, BNGRC013, was designed to test a geophysical (IP) anomaly associated with surficial gold workings. While altered basalt and gabbro were intersected, none of the target mineralised microgranite was logged.

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Assay results are listed in Table 1 and shown on Figure 2. Better gold intersections (at a 0.5g/t cut-off) are listed below. True widths are estimated to be between 85% and 95% of the following intercept lengths.

• BNGRC010:

o 48m at 4.3g/t Au including 16m at 9.7g/t Au

o 11m at 1.5g/t Au

• BNGRC012:

• 4m at 1.7g/t Au from 146m and 6m at 1.2g/t Au from 160m within a broader zone of 21m at 0. 8g/t Au .

• BNGRC014:

• 23m at 6.9g/t Au from 111m including 16m at 8.9g/t , and

o 7m at 3.9g/t Au from 141m

Assay results are provided in Table 1. Cross sections through the two high grade intercepts in holes BNGRC010 and BNGRC014 are shown in Figures 3 and 4.

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Figure 2: Plan view of Bongou Prospect showing drill hole locations and drill intercepts.

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Figure 3: Cross-section through RC hole BNGRC010. No vertical exaggeration.

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Figure 4: Cross-section through RC holes BNGRC002 and BNGRC014. No vertical exaggeration.

Conclusions from the drilling program included the following:

• Four adjacent holes have now intersected a high grade zone close to the northern gabbro contact covering a strike length of at least 100m. This zone is open at depth and may also

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plunge to the east. At a 3g/t Au cut-off, the four intercepts have an average grade of approximately 10g/t Au:

• BNGRC010 - 16m at 9.7g/t Au from 40m (drilled this Quarter)

• BNGRC014 - 16m at 8.9g/t Au from 111m (this Quarter)

• BNGRC001 - 6m at 11.8g/t Au from 74m (June Quarter, 2012)

• BNGRC004 - 7m at 10.1g/t Au from 47m (December Quarter, 2012)

• Some of the earlier north-directed drilling failed to cross the entire mineralised zone and therefore missed the target high grade mineralisation close to the gabbro contact at the northern edge of the microgranite (Figures 3 and 4). This includes holes BNGRC002 ( 62m at 1.2g/t Au ) and BNGRC003 ( 102m at 1.1g/t Au ). It is also possible that the discovery hole, BNGRC001, did not cross the entire high grade zone.

• The lower grade “footwall” gold mineralisation shows good continuity from hole to hole and extends beyond the limits of the higher grade zone towards the west, where it is affected and partly cut off by a complex NE oriented shear zone.

• In places gold-bearing mineralisation has an aggregate width of 50m.

• Altered gold-bearing microgranite was intersected above the main microgranite-gabbro contact in hole BNGRC014. This granite is not observed at surface suggesting that it might widen with depth, possibly enlarging the width of the target microgranite below where it has been drilled so far.

Resource Discovery Potential

Recognition of the Bongou gold mineralisation style has opened up a large new area for exploration

within the Bonsiega permit group. The gold mineralisation is located on a very long, deep fault zone which appears to have been the source of the mineralising fluids which formed the Bongou deposit. Bongou itself lies within a 3km long zone of structural complexity within this fault zone and there are other comparable areas along strike to the north-east. About 43km of this fault zone lies within PDI permits (Figure 5). PDI’s geological mapping has already identified granitic outcrops at multiple locations along this structure although much of the fault strike extent lies under thin alluvial cover. Apart from PDI’s recent drilling at Bongou, there has been no effective exploration of this fault zone. Therefore the Company believes that there is substantial potential to discover more Bongou-style mineralisation along strike from Bongou.

Other Bongou Field Programs

During the March Quarter, PDI carried out:

• Geological mapping along 20km of the Bongou Fault’s strike length;

• Induced polarisation (“IP”) geophysical surveys and a ground magnetic survey over 3km of prospective strike length surrounding the Bongou Prospect:

• A small program of soil sampling adjacent and just west of the Bongou artisanal workings.

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Analysis of this data has defined four target areas along strike from Bongou , two close and to the east and west of the artisanal workings (Figure 5), and two other areas, approximately 4km and 10km ENE of the Bongou workings (Figure 6). The aggregate strike length of these targets is about 5km.

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Figure 5: Location of the two induced polarisation (IP) geophysical target areas close to the Bongou Prospect on a background of ground magnetic data (note: the anomaly location over the Bongou Prospect is partly inferred because the IP survey could not be conducted within the artisanal workings, hence the dashed line)

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Figure 6: Geological map of Bongou area showing location of the three high priority target zones (red dashed line ellipses)

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Madyabari Prospect

The Madyabari Prospect is the site of an artisanal miner gold rush reported in November 2012. There are over 2,000 artisanal mine shafts on the site, most of which were excavated between July 2012 and the present.

Four vertical RC holes were drilled at Madyabari in the December Quarter, all of which intersected a flat dipping gold mineralised quartz vein system. The best intercepts were 3m at 8.3g/t Au from 23m, including 1m at 23g/t Au and 2m at 8.3g/t Au from 34m including 1m at 14g/t Au .

RC Drilling Program

Thirteen vertical RC holes, totalling 990m, were drilled in March 2013. These holes were spaced 80100m apart and tested the majority of the area of active artisanal mining. Quartz veining was intersected in about half of the holes and some thin gold intercepts were obtained. While there is no doubt that artisanal miners have been recovering a significant amount of gold from the site and that the flat dipping quartz vein system extends over a large part of the mined area, it appears that the high grade distribution is very “nuggetty” and therefore difficult to drill test effectively. No further drilling is planned in the short term.

Assay results are provided in Table 1 at the end of this report.

Bira Permit

The Bira permit covers an area of 21km[2] in the northern part of the Bonsiega block of tenements (Figure 1). This permit was granted during the March Quarter.

The area was explored by Anglo American through its subsidiary Anmercosa in the late 1990’s. PDI holds a database of Anmercosa information including soil geochemistry and RC drill data from the Bira permit. The RC drill data includes a series of very encouraging gold intersections. Gold mineralisation is reported from a series of holes extending over more than 1km of strike. Better intercepts included:

• 14.5m at 3.1g/t from 1m

• 13m at 2.5g/t Au from 3m

• 10m at 2.7g/t Au from 14m

• 23m at 1.2 g/t Au from 30m

• 21m at 1.7g/t Au from 22m

In the more intensely drilled southern 500m of strike, the mineralised zone appears to show good continuity both along strike and down-dip.

The drilled gold mineralisation is open to both the south and north.

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Bira Exploration Program

A program of geological mapping and a ground magnetic survey covering almost all the permit area was conducted over the Bira permit in March. The ground magnetic survey has revealed two target areas under alluvial cover with a cumulative strike length of over 3km . The largest of these targets is oriented NNE i.e. parallel to the known gold mineralised zone.

Tyekanyebi Permit

A modest geochemical soil sampling program was conducted over the southern part of the Tyekanyebi permit during the Quarter, along strike from an area on an adjacent exploration permit held by Golden Rim Resources (ASX:GMR) where GMR has recorded some encouraging RAB drilling results. This work revealed gold anomalous values (greater than 50ppb Au) on four adjacent lines, over a strike length of 600m .

Preliminary Metallurgical Study

Four 20 kg RC drill composite samples from the Bongou, Dave, Solna and Tambiri Prospects in Eastern Burkina Faso, were despatched to Perth during the Quarter. A preliminary metallurgical study is in progress. Results are expected in May 2013.

Planned Exploration Activities June 2013 Quarter– Burkina Faso

Bongou

Power auger and soil geochemistry surveys have now commenced over the induced polarisation geophysical targets immediately to the west and east of Bongou identified during the March Quarter. Power auger geochemical drilling will also be conducted over the new targets 4km and 10km north-east of Bongou.

A third drilling program is planned on the Bongou drilling program once the geochemical results are received, weather permitting. Some unseasonal heavy rain fell in April; additional rain in May may curtail field work earlier than usual.

Other Areas

Power auger geochemical drilling has already been carried out in April on parts of the two target areas identified by the March ground magnetic survey at Bira . Assay results are awaited.

Cote D’Ivoire

No activity was carried out during the Quarter, pending the grant of the Komboro exploration permit.

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Australia

Victoria - Gold (PDI 100%)

No activity was carried out on the one small, granted exploration licence held currently by PDI in Victoria during the Quarter.

CORPORATE

At 31[st] March, 2013, PDI held cash and term deposits of $2.2 million and no debt.

Table 1 – RC drilling assay results

Hole No.	UTM East	UTM North	Azim uth	Inclin ation	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
					From (m)	Interval (m)	Au (g/t)	From (m)	Interval (m)	Au (g/t)
BNGRC010											includes 16m at 9.7g/t
	207467	1422202	153	-50.0	34	50	4.11	34	48	4.27
											Au
BNGRC010	207467	1422202	153	-54.0	91	11	1.45	91	11	1.45
BNGRC011	207394	1422167	153	-54.0	4	4	0.69	4	4	0.69
BNGRC011	207394	1422167	153	-56.0	103	8	0.51	105	2	1.14
BNGRC012	207405	1422239	153	-56.0	146	4	1.65	146	4	1.65	21m at 0.8g/t Au from 146m
BNGRC012	207405	1422239	153	-56.0	154	2	0.95	155	1	1.59
BNGRC012	207405	1422239	153	-56.0	159	8	0.97	160	6	1.17
BNGRC013	207228	1422247	178	-50.0	114	4	0.28
BNGRC014	207483	1422272	150	-56.0	90	9	0.68	90	2	1.00
BNGRC014											includes 16m at 8.9g/t
	207483	1422272	150	-56.0	111	24	6.58	111	23	6.85
											Au
BNGRC014	207483	1422272	150	-56.0				95	4	0.87
BNGRC014	207483	1422272	150	-56.0	141	10	2.86	141	7	3.89
BNGRC014	207483	1422272	150	-56.0	155	9	0.76	156	3	1.43
BNGRC014	207483	1422272	150	-56.0				161	2	0.79
MADRC005	220947	1424957	n/a	-90		No significant result					Grey quartz absent
MADRC006	221061	1424970	n/a	-90	41	1	0.30				Grey quartz vein
MADRC007	221144	1425013	n/a	-90		No significant result					Grey quartz vein at 46m
MADRC008					35	2	No sample				Probable mining void signifying high grade quartz
	221025	1424851	n/a	-90
MADRC009					17	6	0.76	17	3	1.12	Minor grey quartz over 6m probably from multiple thin veins
	220960	1424811	n/a	-90
MADRC009	220960	1424811	n/a	-90	34	1	0.90	34	1	0.9	Minor grey quartz
MADRC010	220960	1424741	n/a	-90		No significant result					Grey quartz absent
MADRC011	220827	1424732	n/a	-90	65	1	0.43				Grey quartz absent
MADRC012	220731	1424818	n/a	-90		No significant result					Grey quartz absent
MADRC013	221102	1424875	n/a	-90	37	3	0.92	37	3	0.92	Grey quartz vein

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MADRC014					0	3	2.60	0	3	2.60	Grey quartz - possible surface contamination
	221178	1424904	n/a	-90
MADRC015	221315	1424999	n/a	-90	No significant result						Minor grey quartz at 57m
MADRC016					No significant result						Minor grey quartz at 7- 10m
	221414	1425051	n/a	-90
MADRC017	221491	1425078	n/a	-90	No significant result						Grey quartz absent
Notes: 1. Down-hole surveys were performed on all angled holes. 2. Analytical standards, blanks and duplicates were added to all sample batches for quality control. 3. Analyses were performed by fire assay at the SGS laboratory in Ouagadougou. 4. Average assay values are calculated with a maximum of 2m of internal waste with the exception of the low grade gold intercept in BNGRC012 in the Comments column. High grade intervals (also in the Comments column) were calculated using a 3g/t Au cut-off grade. 5. Reported gold-bearing intercepts at Madyabari were all obtained using a bulk cyanide leach (“leachwell”) method.

About Predictive Discovery:

Predictive Discovery Limited (PDI) was established in late 2007 to explore for gold and uranium. The Company is focused principally on exploration for gold in West Africa with one additional gold project in Australia. PDI has a distinctive technological capability, known as Predictore [TM] , which is designed to increase drill targeting efficiency thereby reducing ore discovery cost. The Company’s major focus is in Burkina Faso, West Africa where it has assembled a substantial regional ground position totalling 1,605km[2] and is exploring for large open-pittable gold ore deposits.

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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition). 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

Managing Director Tel: +61 8 9216 1020 Email: paul.roberts@predictivediscovery.com

Ian Hobson Company Secretary Tel: +61 8 9216 1020 Email: ianhobson@bigpond.com

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