PREDICTIVE DISCOVERY LIMITED — Interim / Quarterly Report 2019

Jan 30, 2019

31 January 2019

QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDING 31 DECEMBER 2018

Predictive Discovery Limited ( “Predictive” or “Company” ) is pleased to provide an update on its activities for the December 2018 Quarter. The Company’s primary focus during the reporting period continued to be the advancement of its West African gold projects in Cote D’Ivoire, Guinea and Burkina Faso.

2018-19 Q2 - HIGHLIGHTS

• Predictive acquired over 900km[2] of highly-prospective ground across Guinea (300km[2] ) and Burkina Faso (623km[2] ), covering some of West Africa’s most prospective greenstone belts.

• Results from infill soil sampling (400m x 100m) at Boundiali North (Toro JV, Cote D’Ivoire) extended the gold anomalous zone to over 14km in length.

• Results from the 2,000m diamond drill program at Kokoumbo Project (Toro JV, Cote D’Ivoire) included best intercepts:

• KOD017: 4.5m at 4.22g/t Au from 57m including 1m at 11.15g/t Au

• KOD026: 9m at 2.08g/t Au from 69m

• Power auger drill results were received from Bira, Kalinga and Tantiabongou (Progress JV, Burkina Faso) with best value of 2.8g/t.

• 2,596m of partner funded RC drilling was completed on the Tambiri permit (Progress JV, Burkina Faso). Results included:

• TAMRC008: 4m at 4.23g/t Au from 74m including 1m at 10.90g/t Au

• TAMRC016: 1m at 8.6g/t Au from 33m

MARCH QUARTER 2019 – PLANNED ACTIVITY

• The Toro Joint Venture will focus its attention on the Boundiali and Ferkessedougou North projects in the Quarter:

• Approximately 10,000m of RC and diamond drilling will commence at Boundiali.

• Trench results are expected from Ferkessedougou North. Follow-up drilling will be considered once the trench results have been assessed.

• Results from stream sediment and rock chip sampling on the Guinea authorisations are expected soon. Predictive will continue low-cost field work with soil geochemistry, rock-chip sampling and geological mapping to focus in on high-grade zones of mineralisation and geochemical targets for follow-up drill testing.

• Work has been suspended at the Company’s Progress Joint Venture in Burkina Faso due to a security incident.

CORPORATE

• Bobosso Transaction:

• Predictive received A$515,000 from Progress Minerals Inc as an initial payment for the Company’s 30% equity in the Bobosso Project (Cote D’Ivoire), releasing Predictive from any future costs or liabilities.

• The Company also secured the right to future bonus payments based on reserve ounces from bankable feasibility studies on up to three gold mines.

• All resolutions put to shareholders at the Company’s Annual General Meeting on 26 November 2018 were carried.

• Predictive remains well-funded with cash of $1.5 million as at 31 December 2018.

• The Company made the decision to reduce its equity in the Toro JV to 30% (from 35%) via noncontribution in the December half of 2018. This decision, along with receipt of cash from the Bobosso transaction and with careful control of exploration expenditure in Guinea and Mali, resulted in the Company holding more cash than it had at the end of the September 2018 quarter. This represented a strategic decision to conserve cash in the current difficult market for capital raising.

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1. PREDICTIVE DISCOVERY WEST AFRICAN PROJECTS, APPLICATIONS & INTERESTS

With exposure to approximately 6,000km[2] of highly-prospective ground in the West African Birimian greenstone belts of Guinea, Cote D’Ivoire and Burkina Faso, Predictive is focused on its 100% owned and Joint Venture gold projects.

PDI’s prospect generator model provides a pipeline of continuous and early stage exploration opportunities, partnering with experienced and respected companies to fund ongoing exploration and leveraging their expertise to realise shareholder value.

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Figure 1 – Predictive Discovery projects, applications and interests in Guinea, Cote D’Ivoire and Burkina Faso

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2. GUINEA – NONTA, SOULOUKO AND KANKAN PROJECTS

During the period, the Company acquired three 100% owned Reconnaissance Authorisations in Guinea[1] covering 300km[2 ] (Figure 2).

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Figure 2 - Locality Map of three new Reconnaissance Authorisations in Guinea, across the Siguiri Basin

Field visits have identified significant artisanal workings on the Nonta authorisation with government officials advising Predictive staff that some small workings have yielded many kilograms of gold, indicating the potential for high-grade values. Predictive has submitted an Exploration Permit application to replace the Nonta Reconnaissance Authorisation in order to have the tenure required for more advanced exploration work.

These areas were identified using the Company’s Predictore[TM] methodology which helps identify large and deep structures which are thought to have channelled large quantities of gold-bearing fluid from deeper in the earth’s crust, generating well mineralised gold belts including large gold deposits at surface.

The Company has begun low-cost field work with BLEG stream sediment geochemistry, rock chip sampling and geological mapping being used to focus in on high-grade zones of mineralisation and geochemical targets for follow-up drill testing.

1 ASX Announcement - WEST AFRICAN LAND POSITION GROWS WITH HIGHLY-PROSPECTIVE GROUND IN GUINEA AND BURKINA FASO http://www.investi.com.au/api/announcements/pdi/9adbf18b-dae.pdf

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2019 MARCH QUARTER PLANNED ACTIVITES

Field work is ongoing in the three areas and results from completed BLEG stream sediment geochemical surveys will be released in the March Quarter. The Company is also seeking additional ground principally within the highly prospective Siguiri Basin (Figure 2).

3. COTE DIVOIRE – BOUNDIALI, BOUNDIALI NORTH, KOUNAHIRI,

FERKESSEDOUGOU, FERKESSEDOUGOU NORTH, BOBOSSO AND KOKOUMBO PROJECTS & INTERESTS

Predictive has a ground position in Cote D’Ivoire of over 4,000km[2] with the country covering about one third of the highly prospective Birimian gold belt, more than any other country in West Africa. Cote D’Ivoire remains largely underexplored for gold due to political instability in the decade to 2011 which resulted in the previous exploration investment boom bypassing the country.

Predictive has a joint venture agreement with Toro Gold Limited. It also has three permit applications in the name of its 100% subsidiary, Ivorian Resources SARL.

During the period, the Company announced significant activity on its Bobosso, Boundiali, Boundiali North, and Kokoumbo Projects (Figure 3).

The Toro Joint Venture will focus its attention on the Boundiali, Boundiali North and Ferkessedougou North permits in northern Cote D’Ivoire in the March Quarter. Recent exploration in these areas has provided substantial encouragement that requires major follow-up work programs including drilling.

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Figure 3 – Cote D’Ivoire Projects, Applications and Interests.

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BOUNDIALI NORTH – LARGE COHERENT GOLD SOIL ANOMALIES WITHIN 14KM-LONG ZONE

During the period, the Company announced soil geochemistry results from the recent infill soil sampling (400m x 100m) program[2] at its Boundiali North permit. The program revealed a 14km-long zone of anomalies clustered around the inferred north-south Nyangboue structure that also passes through the Nyangboue gold mineralised zone, which was discovered in 2016. The size of anomalous zone is now larger than the Nyangboue trend to the south.

Within the zone there are several large coherent higher-grade anomalies including:

• Northern Zone: 1.5km long, 900m wide, peak values of 707ppb and 579ppb Au.

• Central Zone: 2.7km long, with peak values of 317ppb, 414ppb.

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Figure 4 - New gold soil anomalies at Boundiali North (white outlined areas >20ppb Au) superimposed on a colour image of regional aeromagnetic data (analytical signal) covering both permits. The north-south dashed line is the inferred Nyangboue structure. The grey ellipse covers the original 6km long Nyangboue gold in soil anomaly.

Predictive was granted the Boundiali permit in January 2014 and the Toro Joint Venture negotiated access to the Boundiali North permit in September 2017[3] . The Boundiali and Boundiali North permits are located within a very well mineralised greenstone belt which contains the large operating Tongon, Syama and

2 ASX Announcements - BOUNDIALI NORTH - LARGE COHERENT GOLD SOIL ANOMALIES WITHIN 14KM LONG ZONE

http://www.investi.com.au/api/announcements/pdi/303be473-e42.pdf 3 ASX Announcements – Exploration Update, Boundiali Project, Cote D’Ivoire - https://www.investi.com.au/api/announcements/pdi/359df3ce 820.pdf

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Sissingue gold mines and consists of metasediments (including conglomerates), mafic volcanics along with granitic and mafic intrusives.

BOUNDIALI PROJECT - 2019 MARCH QUARTER PLANNED ACTIVITES

Results from infill sampling (200 x 50m) in the December Quarter on gold anomalous areas in the Boundiali North permit will be released soon.

Following expansion of the project’s gold discovery potential through delineation of the Boundiali North gold-in-soil geochemical anomalies, the Joint Venture plans to carry out approximately 10,000m of drilling on both the Boundiali North and Boundiali permits, focusing on infill drilling of the Nyangboue discovery and reconnaissance drilling of the most prospective Boundiali North anomalies. Some trenching may be undertaken at Boundiali North to help define drill targets.

KOKOUMBO DRILL RESULTS AND PROJECT UPDATE

Predictive announced results from a recent 2,000m diamond drilling (DD) program[4] during the December Quarter. The DD program, managed by Joint Venture Partner Toro Gold, was testing IP geophysical targets (Figure 5) and recently excavated artisanal gold workings with best intercepts including:

• KOD017: 4.5m at 4.22g/t Au from 57m , including 1m at 11.15g/t Au

• KOD026: 9m at 2.08g/t Au from 69m

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Figure 5 - Drill locality plan on map of gradient array IP (red/magenta colours indicate anomalies)

4 ASX Announcements - KOKOUMBO DRILL RESULTS AND PROJECT UPDATE - http://www.investi.com.au/api/announcements/pdi/aa0c542f 367.pdf

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The Kokoumbo permit is located 45 km north of Newcrest’s Bonikro gold mine and Endeavour’s Agbaou gold mine within the Oume-Fetekro greenstone belt and is one of several highly-prospective project areas in the Toro JV portfolio.

KOKOUMBO - 2019 MARCH QUARTER PLANNED ACTIVITIES

the Joint Venture will consider plans for future activity at Kokoumbo during the Quarter.

BOBOSSO UPDATE – PROJECT PAYMENT, 7,500M OF RC DRILLING AND RESULTS

During the reporting period, the Company sold its 30% interest in the Bobosso Project for an initial payment of A$515,000 by Progress Minerals[5] . Predictive retains a potential future beneficial financial interest with the right to receive payments of US$4.30 per reserve ounce (totalling at least US$2.15 million) at mine development on up to three gold mines on the Bobosso properties. As a result of this transaction, Predictive has no future liability for joint venture contributions.

During the quarter, a 7,500m Reverse Circulation (RC) drill program was completed at Bobosso, testing possible east-north-east trending zones inferred from earlier joint venture drilling[6] . The results were announced by Progress Minerals.

4. BURKINA FASO – BONGOU, BIRA, TAMBIRI, LARO, BOLLE AND KOURAKOU PROJECTS

TAMBIRI AND BIRA PROJECTS (PROGRESS BURKINA FASO JV)

During the March Quarter, the Progress Minerals Joint Venture completed 2,596m of RC drilling on the Tambiri permit, which lies within the wider Progress JV Area of Influence (AOI). The program was testing a gold geochemical anomaly and mineralised structure along strike from high-grade gold mineralisation drilled by Predictive in 2011-12 (Figure 6).

The drilling encountered narrow zones gold mineralisation in most holes along the Tambiri shear zone trend. The mineralised zones dip steeply to the south (Figure 7), consistent with the earlier Predictive drilling[7] . Complete results and details on the drilling methodology are provided in Table 1.

Better intercepts included:

• TAMRC005: 1m at 7.23 g/t Au.

• TAMRC008: 4m at 4.23g/t Au from 74m including 1m at 10.90g/t Au .

5 ASX Announcement - $0.5 MILLION RECEIVED FOR BOBOSSO PROJECT http://www.investi.com.au/api/announcements/pdi/34b495c0-afa.pdf 6 ASX Announcement - 7,500M DRILLING PROGRAM AND PROJECT PAYMENT FOR BOBOSSO PROJECT IN COTE D’IVOIRE http://www.investi.com.au/api/announcements/pdi/d13e0118-433.pdf

7 ASX Announcement – Quarterly Report for the Period ended 30 June 2012 https://www.investi.com.au/api/announcements/pdi/c411c4d7-984.pdf

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TAMRC016: 1m at 8.6g/t Au from 33m.
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Figure 6 - Drill locality plan, Tambiri Project. Previous results (purple dots) reported to the ASX in Quarterly Reports of June 2011, December 2011, March 2012, June 2012; this information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

On completion of the Tambiri program,15,000m of RC drilling was planned to commence on the Bira Project in the March Quarter, testing 10 targets, however due to the security incident at the Tiabongou campsite, work there has been suspended.

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Figure 6 – Cross section, Tambiri Project (see Figure 5 for location)

KOURAKOU, LARO AND BOLLE PERMITS

During the Quarter, the Company received the grant document for the Kourakou permit and paid the fees for Laro and Bolle. These three permits cover 623 km[2] (Figure 1). In Burkina Faso, payment of fees is the last step before permit grant; receipt of the grant documents for Laro and Bolle is therefore expected soon.

5. SECURITY INCIDENT AT THE BURKINA FASO JOINT VENTURE PROJECT

Post reporting period, Predictive Discovery Limited advised of a security incident at its Progress Minerals Joint Venture in Burkina Faso, which resulted in the death of a senior employee of its Canadian joint venture partner Progress Minerals Inc[8] .

8 ASX Announcement - ADVICE ON BURKINA FASO INCIDENT https://www.investi.com.au/api/announcements/pdi/cc7bca0d-b3d.pdf

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The Company extended its deepest sympathies to the family and colleagues of Kirk Woodman – a respected geologist with 20 years of experience in West Africa. “Kirk’s expertise, professionalism and love of his work and passion for West Africa were obvious to all who knew him”.

The ongoing safety and security of every individual involved in the joint venture managed by Progress Minerals is of paramount importance to both companies.

All local employees of the joint venture company Predictive Discovery SARL are safe and secure after the incident. Predictive is monitoring the ongoing security situation in various regions of Burkina Faso and will work with Progress Minerals Inc to assess the implications for its local project activities.

The incident does not affect any other Predictive operations or interests.

6. CORPORATE

• During the reporting period, the Company received A$515,000 from Progress Minerals Inc as payment for the Company’s 30% equity in the Bobosso Project[9]

Importantly, the underlying agreement with Progress secures prospective future bonus payments based on reserve ounces from bankable feasibility studies on up to three gold deposits within the project area.

The agreement also releases Predictive from any future costs or liabilities on the Bobosso Project.

• All resolutions put to shareholders at the Company’s Annual General Meeting on 26 November 2018 carried.

• Predictive remains well-funded with cash reserves of $1.5 million at 31 December 2018.

• The Company made the decision to reduce its equity in the Toro JV to 30% (from 35%) via noncontribution in the December half of 2018-19. This decision, along with receipt of cash from the Bobosso transaction and careful control of exploration expenditure in Guinea and Mali, has resulted in the Company now holding more cash than it had at the end of the September 2018 quarter. This represented a strategic decision to conserve cash and therefore limit shareholder dilution in a difficult market for capital raising.

2018 QUARTER - ASX ANNOUNCEMENTS

This Quarterly Activities Report contains information extracted from ASX market announcements reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (“2012 JORC Code”). Further details (including 2012 JORC Code reporting tables where applicable) of exploration results referred to in this Quarterly Activities Report can be found in the following announcements lodged on the ASX:

9 ASX Announcements - $0.5 MILLION RECEIVED FOR BOBOSSO PROJECT http://www.investi.com.au/api/announcements/pdi/34b495c0-afa.pdf

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Kokoumbo Drill Results and Project Update	24-Dec-18
Bobosso Update	18-Dec-18
West African Land Position Grows in Guinea & Burkina Faso	11-Dec-18
Boundiali North - Large Coherent Gold Anomalies in 14km Zone	26-Nov-18
$0.5 Million Received for Bobosso Project	15-Nov-18
20,000M OF DRILLING COMMENCING SHORTLY ON BURKINA FASO JV	29-Oct-18
7,500m DrillingProgram and Project Payment- Bobosso Project	26-Oct-18
Reinstatement to OfficialQuotation	2-Oct-18
TemporarySuspension from Trading	1-Oct-18

These announcements are available for viewing on the Company’s website predictivediscovery.com.au under the Investors tab. Predictive confirms that it is not aware of any new information or data that materially affects the information included in any original ASX announcement.

TABLE 1 – RC DRILL RESULTS – TAMBIRI PERMIT – BURKINA FASO PROGRESS MINERALS JV

Hole No.	UTM 31N Easting	UTM 31N Northing	RL (m)	Hole depth (m)	Hole dip (°)	Azimuth (°)	0.5g/t Au cutoff	0.5g/t Au cutoff	0.5g/t Au cutoff	Comments
							Depth from (m)	Interval (m)*	Au (g/t)
TAMRC001	227256	1487096	251	132	-50	310	no significant mineralisation
TAMRC002	227155	1487069	270	66	-50	310	31	4	1.16
TAMRC003	227178	1487040	261	96	-50	310	66	2	0.82
TAMRC004	227199	1487020	258	108	-50	310	90	1	1.59
TAMRC005	227047	1486880	260	114	-50	310	75	1	7.23
TAMRC006	227070	1486864	262	144	-50	310	57	1	3.57
TAMRC007	226923	1486720	260	75	-50	310	41	6	0.57
TAMRC008	226940	1486709	266	100	-50	310	74	4	4.23	includes 1m at 10.90g/t Au
TAMRC009	226808	1486552	261	108	-50	310	18	2	1.74
TAMRC010	226834	1486526	268	141	-50	310	73	3	1.04
TAMRC011	226750	1486483	274	75	-50	310	37	2	1.11
TAMRC012	226771	1486460	262	100	-50	310	no significant mineralisation
TAMRC013	226787	1486572	267	75	-50	310	no significant mineralisation
TAMRC014	226671	1486412	264	75	-50	310	no significant mineralisation
TAMRC015	226692	1486390	270	100	-50	310	60	2	1.04
TAMRC015	226692	1486390	270	100	-50	310	92	1	3.20
TAMRC016	226642	1486169	269	75	-50	310	33	1	8.60
TAMRC017	226662	1486156	267	98	-50	310	56	1	1.79
TAMRC018	226556	1485973	271	75	-50	310	45	1	1.02
TAMRC019	226567	1485957	260	90	-50	310	29	3	1.29

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TAMRC020	226472	226472	1485777	275	80	-50	310	no significant mineralisation	no significant mineralisation	no significant mineralisation
TAMRC021	226514		1485880	268	92	-50	310	no significant mineralisation
TAMRC022	226624		1486311	274	96	-50	310	55	1	1.44
TAMRC023	226648		1486292	269	102	-50	310	85	1	1.76
TAMRC024	226694		1486251	277	90	-50	310	38	2	1.62
TAMRC025	226684		1486131	267	130	-50	310	97	2	0.95
TAMRC026	226876		1486635	264	75	-50	310	33	1	2.98
TAMRC026	226876		1486635	264	75	-50	310	54	1	1.00
TAMRC027	226899		1486611	262	84	-50	310	no significant mineralisation
Criteria		JORC Code Explanation						Commentary
Sampling Technique		Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.					All of the sampling described in Table 1 refers to RC drill holes. A representative subsample of the sample was obtained by riffle splitting. The assayed drill samples are judged to be representative of the rock being drilled because representative sub-sampling of the RC samples was achieved.
Drilling		Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).					The drilling was carried out by the reverse circulation drilling method.

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Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recovery was assessed by weighing sample bags.
Logging	Whether core and chip samples have been geologically and geotechnical logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean/Trench, channel, etc) photography. The total length and percentage of the relevant intersections logged.	Logging of RC drill holes records lithology, mineralogy, mineralisation, alteration, structure, weathering and other features of the samples. Logging of sulphide mineralization and veining is qualitative. All holes were logged in full. No judgement has yet been made by independent qualified consultants on whether the geological and geotechnical logging has been sufficient to support Mineral Resource estimation, mining and metallurgical studies.
Sub-Sampling Technique and Sample Preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material beingsampled.	The samples were riffle split on site. The sampled material is considered to be representative of the samples as a whole.

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Quality of Assay Data and Laboratory Tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	All samples reported in this release were prepared and assayed for gold by 50g fire assay at the SGS laboratory in Ouagadougou, Burkina Faso. At the lab, regular assay repeats, lab standards, checks and blanks were inserted and analysed. Unlabelled standards (Certified Reference Materials) and blanks were also inserted by team members on site.
Verification of Sampling and Assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data	No twinning was undertaken in this program. Field data collection was undertaken by site geologists and supervised by Progress management.
Location of Data points	Accuracy and quality of surveys used tolocate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used Quality and adequacy of topographic control	Collar positions were located using a hand held GPS with a location error of +/-3m. Collar coordinates listed in the table are for the WGS84 datum, Zone 31 North.
Data Spacing and Distribution	Data spacing for reporting of Exploration Results Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied	The holes reported here were drilled as shown on the included locality plan. No judgement has yet been made by an independent qualified consultant on whether the drill density is sufficient to calculate a Mineral Resource. The samples were not composited.
Orientation of Data in Relation to Geological Structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	All drill holes reported here were drilled approximately at right angles to the anticipated strike of the gold mineralisation.
Sample Security	The measures taken to ensure sample security	Reference RC samples are currently stored securely on site.

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Audits or Reviews	The results of any audits or reviews of sampling techniques and data	No audits or reviews of sampling techniques and data have been carried out given the reconnaissance nature of this drill program.
	Section 2 Reporting of Exploration Results
Mineral Tenement and Land Tenure Status	Type, reference name/number, location and ownership including agreements or material issues with third parties such asjoint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Tambiri exploration permit was granted to Burkina Resources SARL in August 2017. Currently, PDI has a beneficial ownership of 49% of the permit. Progress Minerals International (Inc.) is earning 70% in Tambiri and a number of nearby permits by expenditure of $US5 million on exploration and evaluation studies.
Exploration Done by Other Parties	Acknowledgment and appraisal of exploration by other parties.	A substantial amount of exploration was carried out by BUMIGEB, the Burkina Faso Government Geological Agency, and High River Gold, a Canadian company. This work has been acknowledged previously and the historical drill results were reported to the ASX on 1/3/2011.
Geology	Deposit type, geological setting and style of mineralisation.	The geology of the Tambiri permit consists of granodiorite, mafic volcanics, metasediments and high grade metamorpghic rocks. The target deposit is type is “orogenic gold”.
Drill Hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	All the required data is provided in Table 1 (above).
Data Aggregation Methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut- off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	The RC samples were all sampled and assayed in 1m intervals. No top cuts have been applied to the drill results. Up to 2m (down-hole) of internal waste is included. Mineralised intervals are reported on a weighted average basis.

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	The assumptions used for any reporting of metal equivalent values should be clearlystated.
Relationship Between Mineralisation Widths and Intercept Lengths	These relationships are particularly important in the reporting of Exploration Results If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down-hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	A note about estimated true widths is provided in Table 1. Individual true widths are not yet estimated as these will be guided by a 3D interpretation of the drill results when they are all received.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Appropriate plans and representative cross sections are included in this release.
Balanced Reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Intercepts are reported at 0.5g/t Au cut-offs with at least 1g/t x m and a maximum thickness of internal waste of 2m.
Other Substantive Exploration Data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All relevant exploration data is either reported in this release or has been reported previously and is referred to in the release.
Further Work	The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling. Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	The next exploration program will be decided after the results of the current program are fully assessed.

TENEMENT STATUS – DECEMBER QUARTER, 2018

Name	Number	Location	Area (sq. km)	PDI equity	Changes in holding during December Quarter, 2018
Kalinga (formerly Fouli)	Arrêté 2014- 294/MCE/SG/DGMGC	Burkina Faso	186	49%	None

Page 17 of 19

Tantiabongou	Arrêté 2017-054 /MCE/SG/DGMGC	Burkina Faso	50	49%	None
Tambifwanou (formerly Sirba)	Arrêté 2017- 119/MCE/SG/DGMGC	Burkina Faso	136	49%	None
Bongou (formerly Madyabari)	Arrêté 2017- 121/MCE/SG/DGMGC	Burkina Faso	171	49%	None
Tamfoagou	Arrêté 2017- 132/MCE/SG/DGMGC	Burkina Faso	83	49%	None
Tangagari	Arrêté 2013-37 /MCE/SG/DGMGC	Burkina Faso	94	Earning 46.5%; current equity 0% (until final cash payment is made)	Renewal in progress.
Tambiri (formerly Bangaba)	Arrêté 2017- 120/MCE/SG/DGMGC	Burkina Faso	127	46.5%	None
Bira	Arrêté 2016- 129/MCE/SG/DGMGC	Burkina Faso	12	49%	None
Basieri	Arrêté 2017- 133/MCE/SG/DGMGC	Burkina Faso	73	49%	None
Kokoumbo	Mining exploration permit No. 307	Cote D'Ivoire	300	Predictive CI earning 90%. PDI now owns 30% of Predictive CI.	None
Ferkessedougou South	Mining exploration permit No. 310	Cote D'Ivoire	290	30%	None
Boundiali	Mining exploration permit No. 414	Cote D'Ivoire	299	30%	None
Boundiali North	Mining exploration permit – number not allocated	Cote D'Ivoire	350	Predictive CI earning 90%. PDI now owns 30% of Predictive CI	None.
Kounahiri	Mining exploration permit No. 317	Cote D'Ivoire	260	30%	None
Bassawa	Mining exploration permit No. 570	Cote D'Ivoire	400	0%	Interest sold in exchange for $A515,000 payment plus rights to bonus payments at mine production
Wendene	Mining exploration permit No. 572	Cote D'Ivoire	400	0%
Dabakala	Mining exploration permit application	Cote D'Ivoire	400	0%

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Beriaboukro (Toumodi)	Mining exploration permit No. 464	Cote D'Ivoire	400	Predictive CI can earn 85% in the permit. PDI currently owns 35% of Predictive CI.	None
Ferkessedougou North	Mining exploration permit No. 367	Cote D'Ivoire	400	Predictive CI can earn 85% in the permit. PDI currently owns 35% of Predictive CI.	None
Nonta	Exploration Authorisation	Guinea	100	Predictive 100%	Granted
Soulouko	Exploration Authorisation	Guinea	100	Predictive 100%	Granted
Kankan	Exploration Authorisation	Guinea	100	Predictive 100%	Granted
Cape Clear	EL 5434	Victoria, Australia	63	25%	None

- END -

For further information please contact:

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

Bruce Waddell

Company Secretary Tel: +61 8 6143 1840 Email: bruce.waddell@predictivediscovery.com

Page 19 of 19

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

PREDICTIVE DISCOVERY LIMITED

ABN

ABN 11 127 171 877	Quarter ended (“current quarter”)
11 127 171 877	31 DECEMBER 2018

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (291) (151) 3 -	- (414) (314) 9 -
	(439)	(719)

*The company’s accounting policy allocates staff costs to activities and are accordingly included in items 1.2 (a) and 1.2 (e).

2. Cash flows from investing activities

2.1 Payments to acquire:

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets
	(a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	-	-

• • See chapter 19 for defined terms

1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	515 -	515 -
	515	515
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- -	- -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	1,404 (439) 515 - -	1,684 (719) 515 - -
	1,480	1,480

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	680 800	584 820
	1,480	1,404

6.	Payments to directors of the entity and their associates	Current quarter
		$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		79
6.2	Aggregate amount of cash flow from loans to these parties included		-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions included in
	items 6.1 and 6.2

Fees paid to directors

7. Payments to related entities of the entity and their associates 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	-
	-

7.2	Aggregate amount of cash flow from loans to these parties included in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities
8.2	Credit standby arrangements
8.3	Other (please specify)
8.4	Include below a description of each facility above, including the lender, interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter end, include details of those		facilities as well.

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	285 190
	475

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	Wendene permit Cote D’Ivoire Bassawa permit, Cote D’Ivoire	Conversion from equity to cash payments and right to future payments on development of up to 3 mines	30% 30%	0% 0%
10.2 Interests in mining tenements and petroleum tenements acquired or increased	Nonta exploration authorisation (EA), Guinea Kankan EA, Guinea Soulouko EA, Guinea Kouroukou exploration permit, Burkina Faso	100% ownership 100% ownership 100% ownership 100% ownership	0% 0% 0% 0%	100% 100% 100% 100%

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

==> picture [135 x 32] intentionally omitted <==

Sign here: Date: 31 January 2019

(Company secretary)

Print name: Bruce Waddell

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5