PREDICTIVE DISCOVERY LIMITED — Interim / Quarterly Report 2020

Apr 29, 2020

30 April 2020

QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDING 31 March 2020

Predictive Discovery Limited ( “Predictive” or “Company” ) is pleased to provide an update on its activities for the March 2020 Quarter. The Company’s focus during the reporting period continued to be on the advancement of its 100%-owned Guinea Projects including its flagship Kaninko Gold Project.

HIGHLIGHTS FOR THE MARCH 2020 QUARTER

KANINKO GOLD PROJECT

• All assays were received from 3,178m of shallow power auger drilling and 490m of trenching completed during the March 2020 quarter from the NE Bankan and Bankan Creek Prospects.

• Results from the NE Bankan Creek Prospect including bottom-of-hole power auger samples returned some higher grade gold values than the shallower composite results reported previously[1] , including 11.90g/t gold (previous result: 7.83g/t gold) and 10.30g/t gold (previous result: 0.43g/t gold)[2] .

• At Bankan Creek, the 90m of trenching revealed broad widths of gold mineralisation at shallow depths. Results included 18m at 1.60g/t gold (open to the north) and 37m at 0.94g/t gold and 1m at 15.45g/t gold.

• Power auger drilling across the Bankan Creek prospect obtained a best intercept of 2.49g/t gold from a bottom of hole sample.

• Post reporting period, a combined AC/RC drilling program was completed to test the NE Bankan and Bankan Creek Prospects, with results announced from the NE Bankan Project including:

• 46m (to EOH) at 6.58g/t gold from 4m including:

  • 10m at 26.52 g/t gold from 34m

• 42m (to EOH) at 2.92g/t gold from 8m

• 50m (to EOH) at 1.53 g/t gold from surface including:

  • 20m at 2.51 g/t gold from 30m

• 42m at1.56g/t gold from surface including:

  • 30m at 2.07g/t gold from 12m

1 ASX Announcement - KANINKOPOWER AUGERRESULTS OUTLINE LARGE TARGET FOR AC/RC DRILLING WITH PEAK VALUES UP TO 8G/T GOLD https://www.investi.com.au/api/announcements/pdi/07ea4287-530.pdf

2 ASX Announcement - HIGH GOLD GRADES AND BROAD MINERALISED WIDTHS FROM AUGERAND TRENCHING PROGRAMS AT KANINKO, GUINEA https://www.investi.com.au/api/announcements/pdi/f734ac23-e0e.pdf

• 20m at 1.35g/t gold from surface

• 50m (to EOH) at1.27g/t gold from surface

• 34m at1.06g/t gold from surface

• 48m at1.15g/t gold from surface

CORPORATE

• Predictive remains well-funded with cash of $1.3 million at 31 March 2020. A further $0.8 million was raised in mid-April through a placement and cash proceeds from the early exercise of listed options.

JUNE QUARTER 2020 – PLANNED ACTIVITY

• Post-reporting period, the Company announced further drilling results from its Kaninko Gold Project, with follow-up power auger drilling now underway on a program designed to explore the full horizontal extent of the recent NE Bankan gold discovery.

• Power auger drilling aimed at first quadrupling drill coverage over NE Bankan then testing other prospects on the Kaninko permit

• RC and diamond drilling programs will be undertaken on the NE Bankan and Bankan Creek Prospects, subject to finalisation of the drilling contract.

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

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@Predictive_PDI @Predictive Discovery

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1. GUINEA – KANINKO, KANKAN, KOUNDIAN, BOROTO AND NONTA PROJECTS

Predictive now holds approximately 799km[2] of prospective landholdings across nine permits or authorisations in Guinea, all containing artisanal gold workings. All projects are within the Siguiri Basin which hosts AngloGold’s large Siguiri Mine (+10Moz). These project areas were identified by Predictive during its terrain-scale assessment of the Siguiri Basin in late 2018 using the Company’s Predictore[TM] gold targeting system. (Figure 2).

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Figure 1 - Locality Map of three new Reconnaissance Authorisations in Guinea, across the Siguiri Basin

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KANINKO AUGER/TRENCHING PROGRAMS AND RESULTS

During the quarter, 3,178m of shallow power auger drilling and 490m of trenching completed at the Kaninko Project. The power auger and trenching programs completed on the Bankan Creek and North-East Bankan Prospects identified two large gold mineralised zones, with high value drilling targets.

North-East Bankan Prospect

81 holes totalling 1,550m were completed on an 80m x 80m grid[3] , with the assayed saprolite composites typically representing 5 to 10m depth intervals collected from holes drilled to an average depth of 19m. The results to date have successfully outlined a new high-tenor gold anomaly 460m long and up to 300m wide, defined by 18 holes, each with assay values exceeding 0.25g/t gold. All holes penetrated the overlying laterite into mottled clay and saprolite with composite sample results including peak grades of 7.83g/t gold, 4.84g/t gold, 2.27g/t gold and 1.69g/t gold (Figure 2).

3 ASX Announcement – KANINKO POWER AUGER RESULTS OUTLINE LARGE TARGET FOR AC/RC DRILLING WITH PEAK VALUES UP TO 8G/T GOLD https://www.investi.com.au/api/announcements/pdi/07ea4287-530.pdf

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Figure 2 - North-East Bankan Prospect with power auger locations and results.

A second round of results from bottom-of-hole samples was announced, taken from an average depth of 18-19m, importantly, assays from some of the samples improved significantly on the previously reported shallower power auger composite samples. These new results providing additional evidence of the potential of the newly discovered mineralised zone at depth (Figure 3). Significant increases relative to the previously recorded values included 11.9g/t gold (previously 7.83g/t Au), 10.3g/t gold (previously 1.43g/t gold) and 1.47g/t gold (previously 0.07g/t Au)[4] .

4 ASX Announcement - HIGH GOLD GRADES AND BROAD MINERALISED WIDTHS FROM AUGERAND TRENCHING PROGRAMS AT KANINKO, GUINEA https://www.investi.com.au/api/announcements/pdi/f734ac23-e0e.pdf

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Figure 3 - North-East Bankan Prospect power auger results

Post reporting period, assay results were received from a 24-hole air-core/reverse circulation drilling program confirmed a significant gold discovery. The drill program was undertaken by Target Drilling and the samples were assayed at the SGS laboratory in Bamako, Mali.

Bankan Creek Prospect

14 power auger holes, totalling 1,627m were completed on an 80m x 80m grid. Assay results were obtained from bottom of hole samples from an average depth of 13-14m. The highest value obtained from this program was 2.49g/t gold[5] .

5 HIGH GOLD GRADES AND BROAD MINERALISED WIDTHS FROM AUGERAND TRENCHING PROGRAMS AT KANINKO,GUINEA https://www.investi.com.au/api/announcements/pdi/f734ac23-e0e.pdf

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During February-March, 490m of trenching completed and sampled. The aim was to allow continuous sampling of the mineralised system which is partially exposed in the Bankan Creek artisanal site, and to map the geology of quartz veins and other structures to guide the planned drilling program (Figure 4).

Trenching through the south-western end of the known workings obtained 18m @ 1.60g/t gold. The trench stopped in gold mineralisation as it could not be advanced further to the north-west in the presence of collapsing wet saprolite. A second trench orientated roughly parallel to and 100m further to the south-east of the known workings obtained 37m @ 0.94g/t gold, providing evidence of a broad width of continuous gold mineralisation, which bodes well for the upcoming drilling program.

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Figure 4 - Bankan Creek power auger and trenching results

The combination of trenching, power auger drilling, surface sampling and geological mapping has provided good evidence for a 350m-long north-north-west drill target which was completed in early April.

2. COTE D’IVOIRE – BOUNDIALI, FERKESSEDOUGOU NORTH, KOUNAHIRI, 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 world-class Birimian gold belt, more than any other country in West Africa (Figure 5). Core D’Ivoire

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remains largely underexplored for gold due to political instability which resulted in the exploration investment boom bypassing the country in the decade to 2012.

Predictive has a joint venture agreement with Resolute Mining (ASX:RSG). It also has one granted permit and two permit applications in the name of its 100% subsidiary, Ivorian Resources SARL.

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Figure 5 – Cote D’Ivoire Projects, Applications and Interests.

During the period, a nine-hole diamond drilling (DD) program, totalling 1,659.19m, was completed at Ouarigue South Prospect (45.3m at 3.16g/t gold from 45.9m including 9m at 10.31g/t gold[6] ).

Post reporting period, significant results from the program were released (Figure 6), including:

• FNDC011: 51.00m at 1.27g/t gold from 169.00m

• FNDC012: 14.00m at 10.74g/t gold from 33.00m

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

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• FNDC015: 33.00m at 1.62g/t gold from 28.00m

• FNDC016: 17.15m at 1.39g/t gold from 110.85m, including:

• 18.00m at 1.95g/t Au from 134.00m

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Figure 6 - Ouarigue South-Drill hold locations overlain previous drilling and trenching results with interpreted geology

3. BURKINA FASO – BONGOU, BIRA AND TAMBIRI PROJECTS

Predictive entered into a joint venture with Progress Minerals International commencing on 30th September 2017 covering an Area of Influence (AOI) including nine exploration permits. The AOI includes the Bongou gold deposit discovered by Predictive in 2012 with a mineral resource estimate of 2.2Mt at 2.6g/t Au for a total of 184,000oz[7] . Predictive holds a 49% equity in the Joint Venture.

7 ASX Announcement - High-Grade Maiden Mineral Resource Estimate at Bongou, Burkina Faso https://www.investi.com.au/api/announcements/pdi/2bab5647-9ed.pdf

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The near surface mineralisation at Bongou is favourable for development of an open pit mining operation. The joint venture is targeting a large gold resource inventory within the AOI, building on Predictive’s Bongou discovery, excellent recent JV drill results at Bira, and promising gold discoveries elsewhere (e.g. Dave and Tambiri prospects) with the ultimate aim of establishing a highly profitable gold mining operation.

No work was carried out on properties in Burkina Faso during the March 2020 quarter.

4. CORPORATE

Predictive remains well-funded with cash of $1.26 million and no debt at 31 March 2020. A further $0.81 million was raised in April through a placement plus cash proceeds from the early exercise of listed options.

2020 MARCH 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:

24-Mar-20	AC-RC DrillingUnderwayin Guinea,AcceleratingExploration
19-Mar-20	High-Grades-Broad Widths from Guinea Auger-TrenchingProgram
26-Feb-20	Upto 8g/t Gold from Power Auger Drillingin Guinea
16-Jan-20	Drillingand Field Work Recommence in West Africa

These announcements are available for viewing on the Company’s website www.predictivediscovery.com 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.

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TENEMENT STATUS – MARCH QUARTER 2020

Name	Number	Location	Area (sq. km)	PDI equity	Changes in holding during March Quarter, 2020
Kalinga	Arrêté 2014- 294/MCE/SG/DGMGC	Burkina Faso	186	49%	None
Tantiabongou	Arrêté 2017-054 /MCE/SG/DGMGC	Burkina Faso	50	49%	Permit likely to be replaced by new permit (currently under application)
Tambifwanou	Arrêté 2017- 119/MCE/SG/DGMGC	Burkina Faso	136	49%	None
Bongou	Arrêté 2017- 121/MCE/SG/DGMGC	Burkina Faso	171	49%	None
Tamfoagou	Arrêté 2017- 132/MCE/SG/DGMGC	Burkina Faso	83	49%	None
Tambiri	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 holds 23.5% of Predictive CI, down from 30%.
Boundiali	Mining exploration permit No. 414	Cote D'Ivoire	299	30%	PDI now holds 23.5% of Predictive CI, down from 30%.
Boundiali North	Mining exploration permit	Cote D'Ivoire	350	Predictive CI earning 90%.	PDI now holds 23.5% of Predictive CI, down from 30%.
Kounahiri	Mining exploration permit No. 317	Cote D'Ivoire	260	30%	PDI now holds 23.5% of Predictive CI, down from 30%.
Bassawa	Mining exploration permit No. 570	Cote D'Ivoire	400	0% (rights to bonus payments on production)	None
Wendene	Mining exploration permit No. 572	Cote D'Ivoire	400	0% (rights to bonus payments on production)
Dabakala	Mining exploration permit application	Cote D'Ivoire	400	0% (rights to bonus payments on production)
Beriaboukro (Toumodi)	Mining exploration permit No. 464	Cote D'Ivoire	400	Predictive CI can earn 85% in the permit.	PDI now holds 23.5% of Predictive CI, down from 30%.

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Ferkessedougou North	Mining exploration permit No. 367	Cote D'Ivoire	400	Predictive CI can earn 85% in the permit.	PDI now holds 23.5% of Predictive CI, down from 30%.
Bocanda North	Mining exploration permit No. 844	Cote D'Ivoire	368	Predictive 100%	None
Nonta	Exploration Permit	Guinea	100	Predictive 100%	None
Kankan	Exploration Permit	Guinea	100	Predictive 100%	None
Boroto	Exploration Authorisation	Guinea	100	Predictive 100%	None
Kaninko	Exploration Permit	Guinea	100	Predictive 100%	None
Saman	Exploration Authorisation	Guinea	100	Predictive 100%	None
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

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity PREDICTIVE DISCOVERY LTD ABN Quarter ended (“current quarter”) 11 127 171 877 31 MARCH 2020

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (if expensed) (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 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	(516) (165) 2 -	(1,050) (568) 6 -
	(679)	(1,612)
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: (a) entities (b) tenements (c) property, plant and equipment* Includes an adjustment of $13k not included in December Appendix 5B (d) exploration & evaluation (if capitalised) (e) investments (f) other non-current assets	(46)	(46)

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) 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
	(46)	(46)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 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	- (30)	1,948 (205)
	(30)	1,743
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)	2,013 (679) (46) (30)	1,173 (1,612) (46) 1,743

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period
	1,258	1,258
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)	828 430	1,151 862
	1,258	2,013
6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must and an explanation for, such payments
		Current quarter $A'000
		77
		-
		include a description of,

6.1 Payment was for remuneration of Directors.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (please specify) 7.4 Total financing facilities - 7.5 Unused financing facilities available at quarter end - 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7	Net cash from / (used in) operating activities (Item 1.9) Capitalised exploration & evaluation (Item 2.1(d)) Total relevant outgoings (Item 8.1 + Item 8.2) Cash and cash equivalents at quarter end (Item 4.6) Unused finance facilities available at quarter end (Item 7.5) Total available funding (Item 8.4 + Item 8.5) Estimated quarters of funding available (Item 8.6 divided by Item 8.3)	679 - - 1,258 - 1,258
		1.85
8.8	If Item 8.7 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: Yes
	2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: The Company has raised $807k (before costs) from a Placement and Conversion of options subsequent to the end of the quarter
	3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: Yes, on basis of subsequent cash raised, and a further proposed capital raising, as announced to ASX on 30 April 2020.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow 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.

30 APRIL 2020

Date: ...................................................................................

BY THE BOARD

Authorised by: ...................................................................................

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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