PREDICTIVE DISCOVERY LIMITED — Regulatory Filings 2012

Jul 4, 2012

Stratos Resources Limited Level 1, 981 Wellington St West Perth WA 6005 ABN 82 110 884 252

5 July 2012

Companies Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000

Burkina Faso Drilling Update

The Board of Stratos Resources Limited (ASX: SAT, “ the Company ”) is pleased to release the attached announcement from its JV Partner Predictive Discovery Limited ( ASX: PDI ).

Yours faithfully

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Damon Sweeny

Co Secretary Stratos Resources Limited

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ASX Announcement

5[th] July 2012

New Gold Discovery and Positive Drill Results at Bonsiega

Highlights

• New discovery RC hole drilled beneath artisanal workings at Bongou, 8km from Laterite Hill, intersects:

o 52m at 2.1g/t Au from 36m including 20m at 4.8g/t Au and 2m at 24g/t Au

• Results from infill and extension drilling on the Dave Prospect (formerly called “Dave” and “Dave East”) includes:

• 26m at 5.0g/t Au from 26m including 2m at 31g/t Au

• 38m at 1.3g/t Au from surface including 4m at 5.6g/t Au

• 24m at 1.9g/t Au from 4m

• 8m at 3.3 g/t Au from 46m

• 22m at 1.0g/t Au from 44m

• 12m at 1.7g/t Au from 16m

o 8m at 2.0g/t Au from 72m

• Good correlation and continuity of two mineralised zones covering 800m of strike highlights resource potential in sub-parallel lodes along the entire Dave Prospect.

• Extensive strong gold anomalies on every line of geochemical air core and RC drilling east and west of the Dave artisanal workings confirm that the overall Dave gold mineralised system is at least 5.5km long.

Predictive Discovery Limited ( ASX: PDI ) announces that more assays have been received from RC drilling on the Laterite Hill Gold Field and the Bongou Prospect at the Bonsiega Project in eastern Burkina Faso.

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Managing Director’s Assessment of Drill Results

Mr Paul Roberts, PDI’s Managing Director commented: “ Our drilling programs in Burkina Faso in the November-June field season have confirmed our belief in the potential of the gold mineralised systems on our properties.

The new ore zone encountered in reconnaissance drilling at the Bongou Prospect is beneath an artisanal open pit and encountered a very broad gold mineralised zone including 20m at 4.8g/t Au. This Prospect is only 8km from the main Laterite Hill Gold Field, a short trucking distance to any possible future mill.

Infill drilling at the Dave Prospect has encountered an impressive 26m at 5g/t Au along with other significant gold intercepts. Our geological interpretation of the most intensely drilled portion of the mineralised system shows good continuity from section to section pointing to a potential resource. Reconnaissance RC and air core drilling over the 7km Dave gold geochemical anomaly has now demonstrated that the overall system extends for at least 5.5km with potential to define mineral resources in a series of sub-parallel lodes over much of this length.

These new RC results are in a gold mineralised system outlined by bedrock drilling which is at least 20km long with ore grade and width mineralisation found in every Prospect drilled so far. Eight separate gold mineralised structures are now known, reinforcing our conviction that we have discovered a new goldfield at Laterite Hill .”

Bonsiega Project – Laterite Hill Grid

The Bonsiega Project covers approximately 100 km of strike length in the Samira Hill greenstone belt in eastern Burkina Faso (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 Laterite Hill Gold Field covers 20km of gold mineralised structures within the Birrimian Joint Venture with ElDore Mining Corporation Limited (now Stratos Resources Limited – ASX: SAT). PDI’s equity in the Joint Venture currently stands at 72%.

In mid-2011 RC drill holes at the Dave and Dave East Prospects located a series of gold-bearing mineralised zones containing numerous ore grade and width intercepts over a strike length of 2km. More recent results demonstrate that the gold mineralised system is continuous between them both, so the entire mineralised system is now referred to as the Dave Prospect.

Reconnaissance RC drilling in early 2012 obtained ore grade and width intercepts at Dave as well as three other major Prospects, Laterite Hill, Prospect 71 and Prospect 71 West. This drilling identified a t least 5km of gold mineralisation in a series of zones , most of which remain open in all directions . With the addition of the Bongou gold discovery announced today, there are now eight known gold mineralised structures containing ore grade and width gold mineralisation within a 10km radius.

Drilling Results

Assays reported in this release are from RC and air core drilling completed in March-May, 2012. They were designed to test for possible extensions and to infill the earlier reconnaissance lines drilled on the Dave and Dave East Prospects as well as test the beneath artisanal workings at Bongou Prospect.

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Infill RC drill holes were designed to establish continuity in order to be able to calculate JORC Resources. They were drilled at an angle of 50 degrees, mostly to a depth of 80m. Spacings between drill sections were reduced from 200m to 100m around the known higher grade zones. Several sections were also drilled at 50m spacing towards the eastern end of the Dave Prospect to determine the optimum drill spacing for resource estimation. Drill hole collars along section at Dave are now either 20m or 40m apart.

The extension drilling was carried out in areas where superficial cover could not be penetrated by earlier geochemical power auger drilling. The main focus was beneath Sirba River alluvial sediments covering the western extension of the Dave Prospect. Some holes were also drilled in areas of deep cover in the middle and eastern end of the Prospect. The aim was to identify gold anomalies in areas where structures were projected to extend beneath cover. Air core or RC drilling was employed in both angled and vertical holes, completing the geochemical coverage not achieved by the power auger rig. The maximum hole depth in angled holes was 50m.

Drill hole locations are shown in Figures 2, 4 and 14. Holes for which assays have been received are distinguished from those that are still to come. Significant results are highlighted. Drill hole coordinates and assays are tabulated at the end of this release.

Bongou Prospect Drill Hole (Figures 2 and 3)

The Bongou Prospect is located 8km north of the Laterite Hill Gold Field (Figure 2). Earlier work in 2010 was confined to surface rock chip sampling and limited trenching. The highest gold value then recorded was 4.5g/t Au in a rock chip sample.

One angled RC hole 140m long was drilled underneath an artisanal open pit which is part of an area of east-west oriented workings about 160m long. The mineralisation is located at a rock type boundary, between gabbro and felsic volcanics (Figure 3) and appears to be open along strike beneath alluvial cover both to the east and west.

Hole BNGRC001 intersected 52m at 2.1g/t Au including 28m at 3.6g/t Au and 2m at 24g/t Au . A large part of the mineralised section was in unweathered rock, suggesting that the mineralisation may extend to depth. This is a significant new result that indicates the untapped potential of PDI’s ground holding.

Dave Prospect – Infill Drilling (Figures 2 and 4 to 14)

Assays for holes have now been received from all holes drilled within the Dave Prospect. As in previous drilling, numerous gold intercepts were obtained above a cut-off grade of 0.5g/t Au, mostly in oxidised rocks. Better intercepts included:

• 26m at 5.0g/t Au from 26m, including 2m at 31g/t Au

• 38m at 1.3g/t Au from 0m including 4m at 5.6g/t Au

• 24m at 1.9g/t Au from 4m

• 8m at 3.3g/t Au from 46m

• 22m at 1.0g/t Au from 44m including 4m at 3.4g/t Au

• 12m at 1.7g/t Au from 16m

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• 8m at 2.0g/t Au from 72m

• 10m at 1.4g/t Au from 48m

• 8m at 1.5g/t Au from 40m

• 8m at 1.3g/t Au from 34m

With this additional infill drilling, it is now possible to generate a geological interpretation of the more intensely drilled zone at the eastern end of the Dave Prospect (formerly known as “Dave East”). A plan and a series of cross sections from this area are provided as Figures 4 to 14. These cover several ENE trending parallel lodes which have now been intersected on nine cross sections spaced between 50m and 150m apart and extending over a strike length of 800m . The interpreted shape of the gold mineralisation on each section indicates a moderate to steep dip to the SE, overprinted by some near surface weathering effects which have caused the mineralisation shape to become somewhat irregular in the shallow subsurface. High grades have also been found in fresh rock in a few drill holes elsewhere in the Prospect, suggesting that a series of narrower higher grade primary gold mineralised zones might be present at depth, possibly at an oblique angle to the overall trend.

These results have appeared to establish continuity between sections to enable future estimation of JORC compliant resources both in the 800m strike length described herein and in a series of sub-parallel gold mineralised structures that appear to be present along the length of this gold mineralised system.

Extension Drill Program

Assays have now been received from the RC/aircore geochemical coverage beneath areas previously not penetrated by the auger rig. In spite of the incomplete coverage, numerous plus 0.5g/t Au intercepts were returned , including the following:

• 10m at 2.0g/t Au from 35m

• 7m at 2.7g/t Au from 6m

• 12m at 1.2g/t Au from 11m

Figure 15 shows a plan of the drill results combined with the earlier power auger bedrock gold geochemistry. Bedrock gold values were calculated by averaging all the values in the hole beneath alluvial or ferricrete cover. The results show that the gold mineralised system identified on the Dave Prospect extends over a distance of 5.5km, to the west beneath the Sirba River and as far east as the limit of the RC and aircore drill coverage. These results strengthen the probability of outlining a significant gold deposit at the Dave Prospect alone.

Including the reported results from reconnaissance drilling of the Laterite Hill, Prospect 71, Prospect 71 West and Bongou Prospects, the potential for the area to contain a significant economic gold resource has been greatly enhanced.

Outlook

Drill assay results remain outstanding for seven holes in the Dave Prospect and eight holes in the Laterite Hill Prospect.

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The PDI team is assessing all drill results as they come to hand, both from the Bonsiega and Bangaba Projects in order to identify the best areas to infill drill, establish and upgrade our resource portfolio to a JORC standard. This drilling is planned to commence as soon as the rainy season ends, probably in October 2012. The Company will also undertake preliminary metallurgical tests on representative samples of the gold mineralisation from Bonsiega and Bangaba during the next 3-4 months.

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Figure 1: Geological map of eastern Burkina Faso showing PDI’s tenements with the locations of the the Laterite Hill Gold Field, Dave and Bongou Prospects and the Bonsiega Project highlighted.

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Figure 2: Drill hole locality plan – Dave and Bongou Prospects, Bonsiega Project

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Figure 3: Drill cross section through Bongou Prospects. No vertical exagerration. Scale indicated by depth levels (e.g. 260m RL)

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Figure 4: Dave Prospect - infill drill result highlights. See Figure 14 for compilation of aircore-RC geochemical drilling results.

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Figure 5: Plan of eastern end of Dave Prospect, showing infill drill lines and mineralised trend location.

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Figure 6: Section 1 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 7: Section 2 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 8: Section 3 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 9: Section 4 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 10: Section 5 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 11: Section 6 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 12: Section 7 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 13: Section 8 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 14: Section 9 (see Figure 5 for locality). No vertical exagerration. Scale indicated by depth levels (e.g. 300m RL)

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Figure 15: Image of power auger bedrock data combined with gold assays from geochemical air core and RC drill lines in areas where the superficial cover could not be penetrated by the power auger. Gold values in the RC holes were averaged over the length of weathered bedrock material in each hole. Better results from the geochemical air core-RC program are highlighted.This analysis shows that the Dave mineralised system persists over at least 5.5km..

DRILL ASSAY TABLE

Hole Number	Prospect	Easting	Northing	Total Depth	Azimuth (UTM)	Dip	0.25g/t cut-off grade	0.25g/t cut-off grade	0.25g/t cut-off grade	0.5g/t cut-off grade	0.5g/t cut-off grade	0.5g/t cut-off grade
							From (m)	Interval (m)	Au g/t	From (m)	Interval (m)	Au g/t
BNGRC001	Bongou	207544	1422132	140	350	-50	36	54	2.1	36	6	0.78
										48	6	1.1
										62	4	1.3
										70	20	4.8
DAVRC187	Dave	217473	1420361	70	320	-50	32	10	0.38	38	4	0.55
DAVRC188	Dave	217449	1420390	70	320	-50	48	20	0.87	48	10	1.4
DAVRC189	Dave	217289	1420190	80	320	-50	14	10	0.48	14	4	0.74
							56	16	0.33
DAVRC190	Dave	217258	1420230	80	320	-50	18	52	0.5	20	8	0.98
										42	8	0.98
DAVRC191	Dave	217231	1420259	70	320	-50	14	8	0.44
							34	8	1.29	34	8	1.29
							62	6	0.57	62	6	0.57
DAVRC192	Dave	217118	1420252	80	320	-50			No significant results
DAVRC193	Dave	217217	1420146	70	320	-50	6	10	0.33
							24	8	0.56	24	4	0.64
							44	6	0.39
DAVRC194	Dave	217120	1420098	70	320	-50	10	8	0.78	10	4	1.1
							40	12	0.81	42	6	1.2
DAVRC195	Dave	217040	1420102	80	320	-50	18	18	0.84	18	18	0.84
							46	8	3.3	46	6	4.3
							68	8	0.42
DAVRC196	Dave	217018	1420127	70	320	-50	0	38	1.27	0	4	5.6
										12	22	1.0
DAVRC197	Dave	216974	1420174	80	140	-50	48	18	0.67	48	18	0.67

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	DAVRC198	Dave	216898	1420114	80	140	-50	4	24	1.94	4	24	1.94
								46	4	0.93	46	4	0.93
								60	4	1.5	60	4	1.5
								70	10	0.78	74	4	1.5
	DAVRC199	Dave	216939	1420064	80	320	-50	0	58	0.58	0	12	0.75
											32	24	0.76
											50	6	1.4
								72	8	0.51	72	4	0.56
	DAVRC200	Dave	216963.9	1420035.57	70	320	-50	38	8	0.96	40	6	1.2
	DAVRC201	Dave	216784.7	1420015.76	80	140	-50	14	4	0.55	14	4	0.55
								60	20	0.43	68	4	0.94
	DAVRC202	Dave	216655	1420013	70	320	-50	20	4	1.4	20	4	1.4
	DAVRC203	Dave	216627	1420049	80	320	-50	64	6	0.53	64	6	0.53
	DAVRC204	Dave	216527	1420011	70	140	-50	10	10	0.46
								26	12	0.38
								50	8	0.72	50	4	1.0
	DAVRC205	Dave	216684	1419825	70	320	-50	52	12	0.49	52	8	0.58
	DAVRC206	Dave	216710	1419799	80	320	-50			No significant results
	DAVRC207	Dave	216504	1419885	80	320	-50	44	22	1.0	44	4	3.4
											54	4	1.0
								72	8	2.0	72	8	2.0
	DAVRC208	Dave	216338	1419706	80	320	-50	60	12	0.68	60	4	1.5
	DAVRC209	Dave	216035	1419831	80	320	-50	18	6	0.96	20	4	1.3
								64	8	0.6
	DAVRC210	Dave	216059	1419800	70	320	-50	58	4	0.7	58	4	0.7
	DAVRC211	Dave	215919	1419654	70	320	-50	26	4	0.55	26	4	0.55
								50	18	0.66	50	4	0.66
											64	4	1.7
	DAVRC212	Dave	215890	1419684	80	320	-50			No significant results
	DAVRC213	Dave	215916	1419497	80	320	-50			No significant results
	DAVRC214	Dave	215941	1419465	70	320	-50			No significant results
	DAVRC215	Dave	215480	1419548	70	320	-50	16	20	0.56	24	10	0.73
	DAVRC216	Dave	215454	1419580	80	320	-50	8	4	1.1	8	4	1.1
								60	18	0.67	60	18	0.67
	DAVRC217	Dave	214988	1419514	70	140	-50	22	6	1.5	22	4	2.1
	DAVRC218	Dave	215007	1419491	70	140	-50			No significant results
	DAVRC219	Dave	215033	1419459	70	140	-50	28	8	0.34
	DAVRC220	Dave	215053	1419433	80	140	-50			No significant results
	DAVRC221	Dave	215085	1419397	80	140	-50			No significant results
	DAVRC222	Dave	215036	1419306	70	140	-50	12	6	0.43
								24	6	0.75
	DAVRC223	Dave	215065	1419278	70	140	-50	10	8	0.9	12	6	1.08
	DAVRC224	Dave	215089	1419252	80	140	-50			No significant results
	DAVRC225	Dave	214864	1419501	70	140	-50	34	4	0.59	34	4	0.59
								48	6	0.82	48	4	1.04
								58	4	0.98	58	4	0.98
	DAVRC226	Dave	214892	1419472	70	140	-50	12	6	1.1	12	4	1.5
	DAVRC227	Dave	214841	1419377	70	140	-50	46	8	0.48
	DAVRC228	Dave	214867	1419348	80	140	-50	26	30	4.4	26	26	5.0
	DAVRC229	Dave	214983	1418114	80	320	-50			No significant results
	DAVRC230	Dave	214661	1419199	70	140	-50	28	6	1.5	28	6	1.5
								56	4	2.7	56	4	2.7
								66	4	0.55	66	4	0.55
	DAVRC231	Dave	214686	1419174	80	140	-50	62	6	0.28	62	4	0.93
	DAVRC232	Dave	214611	1419338	81	140	-50	24	12	0.69	24	12	0.69
	DAVRC233	Dave	214749	1419248	70	140	-50	6	12	0.54	6	4	0.9
								38	14	1.0	40	8	1.5
	DAVRC234	Dave	214775	1419220	84	140	-50	16	12	1.7	16	10	2.0
	DAVRC235	Dave	215012	1418081	71	320	-50	46	6	0.46	46	4	0.55
	Geochemical drilling (RC and air core) highlights:
	DAVAC005	Dave	215507	1419676	50	320	-50	18	4	0.49
	DAVAC006	Dave	215535	1419639	50	320	-50	35	10	2.0	40	5	3.6
	DAVAC009	Dave	217366	1420256	50	320	-50	12	36	0.62	12	12	0.72
											40	8	0.74

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	DAVRC116	Dave	215535	1419639	15	320	-50	6	6	0.31
	DAVRC119	Dave	215637	1419525	50	320	-50	31	4	0.84	31	4	0.84
	DAVRC120	Dave	215670	1419486	50	320	-50	26	4	0.33
								38	4	0.31
	DAVRC122	Dave	215734	1419410	50	320	-50	0	4	0.6	0	4	0.6
	DAVRC127	Dave	215895	1419222	50	320	-50	40	10	0.6	40	10	0.6
	DAVRC134	Dave	217270	1420373	50	320	-50	17	4	0.87	17	4	0.87
	DAVRC135	Dave	217302	1420335	50	320	-50	20	4	0.29
	DAVRC136	Dave	217334	1420295	50	320	-50	12	4	0.88	12	4	0.88
								32	4	0.3
	DAVRC139	Dave	217433	1420180	50	320	-50	17	4	0.52	17	4	0.52
								37	8	0.43	37	4	0.55
	DAVRC140	Dave	217465	1420141	50	320	-50	35	15	0.39	39	4	0.55
	DAVRC142	Dave	217399	1420676	50	320	-50	25	4	0.35
	DAVRC159	Dave	213099	1418500	50	140	-50	20	16	0.47	24	4	0.86
	DAVRC160	Dave	213129	1418467	48	140	-50	38	10	0.31
	DAVRC161	Dave	213158	1418428	50	140	-50	29	4	0.55	29	4	0.55
	DAVRC165	Dave	213290	1418275	54	140	-50	32	4	0.3
								48	4	0.25
	DAVRC168	Dave	213401	1418758	50	140	-50	12	8	0.31
	DAVRC169	Dave	213437	1418723	50	140	-50	36	14	0.48	36	4	0.75
	DAVRC173	Dave	213576	1418552	50	140	-50	34	8	0.47	34	4	0.67
	DAVRC174	Dave	213596	1418524	50	140	-50	37	4	0.28
	DAVRC175	Dave	213627	1418495	50	140	-50	6	7	2.7	6	7	2.7
	DAVRC179	Dave	212635	1418425	50	140	-50	32	13	0.49	40	5	0.95
	DAVRC180	Dave	212662	1418390	50	140	-50	24	4	0.49
	DAVRC182	Dave	212728	1418320	50	140	-50	11	24	0.78	11	12	1.2

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 1,544km[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 Ian Hobson Managing Director Company Secretary Tel: +61 8 9216 1020 Tel: +61 8 9216 1020 Email: paul.roberts@predictivediscovery.com Email: ianhobson@bigpond.com

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