PREDICTIVE DISCOVERY LIMITED — Capital/Financing Update 2012

Jun 6, 2012

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6 June 2012

ABN 11 127 171 877 Level 2, 9 Colin Street WEST PERTH WA 6005 PO Box 1710 West Perth WA 6872 p (08) 9216 1000 f (08) 9481 7939 w www.predictivediscovery.com

Dear Shareholder

Entitlements Issue – notification to ineligible shareholders

Predictive Discovery Limited ( Company ) is in the process of raising up to approximately $2 million (before costs) of new equity capital through a non-renounceable pro-rata Entitlements Issue to existing eligible shareholders ( Entitlements Issue ).

The Entitlements Issue will offered to eligible shareholders on the basis of:

• one (1) new fully paid ordinary share ( New Share ) for every five (5) ordinary shares held by Eligible Shareholders at $0.08 cents per New Share; and

• one free attaching unlisted option ( New Option ) for every 2 New Shares issued, with an exercise price of 10 cents to 30 June 2013, 15 cents from 1 July 2013 to 30 June 2014 and 20 cents from 1 July 2014 to the expiry date on 30 June 2015.

Details of the Entitlements Issue are contained in the Company’s ASX announcement on 28 May 2012, and in the Prospectus lodged with ASIC and the ASX on 6 June 2012 and available at www.asx.com.au.

Who are Eligible	Shareholders who are eligible to participate in the
Shareholders?	Entitlements Issue (Eligible Shareholders) are
	shareholders who:
	(a) were registered as a Predictive Discovery Limited
	shareholder as at 7.00 pm (AEST) on 18 June 2012;
	(b) have a registered address in Australia or New Zealand
	or are, in the opinion of the Company and the lead
	manager to the Entitlements Issue, otherwise eligible
	under all applicable securities laws to receive an offer of
	shares under the Entitlements Issue;
	(c) are not in the United States and are subscribing for
	shares in an ‘offshore transaction’ (as defined in Rule
	902(h) under the United States Securities Act of 1933,
	as amended).
Do you meet the	Unfortunately, as you do not satisfy the eligibility criteria for
eligibility criteria?	an Eligible Shareholder, you are not eligible to subscribe for
	New Shares and New Options and you will not be sent a
	copy of the offer documents.
	The Company wishes to advise you that it will not be
	extending the Entitlements Issue to you.

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Why are there	There are restrictions on eligibility because of:
restrictions oneligibility?	(a)the legal limitations in some countries;(b)the relatively small number of shareholders in
	some countries;
	(c)the small number of shares those shareholders
	hold; and
	(d)the potential cost of complying with regulatory
	requirements in those countries.
	The Company has determined, pursuant to Listing
	Rule 7.7.1(a) of the ASX Listing Rules, that it would be
	unreasonable to make offers to shareholders in all countries
	other than Australia and New Zealand in connection with
	the Entitlements Issue.
Do you need to do	You are not required to do anything in response to this
anything?	letter.
	This letter is to inform you about the Entitlements Issue, the
	details of which are provided below. This letter is not an
	offer to issue New Shares to you, nor an invitation for you to
	apply for New Shares.
Questions	If you have any questions in relation to the Entitlements
	Issue and this letter, please seek professional advice or
	contact the Company on (08) 9216 1000.

Yours faithfully

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Phillip Harman Chairman

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