Predictive Discovery Limited (“Predictive” or “Company”, ASX:...

Predictive Discovery Limited (“Predictive” or “Company”, ASX: PDI) has become aware of a pending media report questioning the legality for the Company to establish mining operations on part of the area covered under the Bankan Project in Guinea.

The Bankan Project comprises the Kaninko, Saman, Bokoro and Argo Exploration Permits, all of which are in good standing and give the Company rights to undertake exploration activities as per the Mining Act. The Company has informed the media outlet that its exploration activities are compliant with the Mining Act and
that the Guinean authorities, in particular the Ministry of Mines and Geology and the Ministry of Environment, support its activities.

The NE Bankan and Bankan Creek gold deposits are located within the Kaninko and Saman Exploration Permits, which were granted to the Company’s subsidiary, Mamou Resources SARLU, in October 2019 and June 2020 respectively. Since then, the Company has carried out extensive exploration activities on the
Permits, culminating in the recent maiden Mineral Resource Estimate (ASX release – 30 September 2021).

Exploration permits in Guinea are granted by way of an order of the Minister of Mines upon recommendation of the Centre de Promotion et de Développement Minier (CPDM) following favourable advice from the Technical Committee of Titles (Comité Technique des Titres). A technical and environmental evaluation of
the exploration project is conducted as part of this granting process. The permit areas are therefore cleared for mineral exploration activities under a process set out under the Mining Act and the Kaninko and Saman Exploration Permits have been issued in strict compliance with such process. Since then, all work on these
permit areas has been carried out in compliance with the Mining Act and with the full support of the Guinean authorities, in particular the Ministry of Mines and Geology and the Ministry of Environment.

We note that the two known Bankan deposits and some other parts of the Kaninko and Saman permits are located within the Outer Buffer Zone of the Upper Niger National Park. This National Park consists of three more or less concentric areas (Figure 1):

• The Core Conservation Area with the sole purpose of fauna and flora conservation.
• Inner Buffer Zone (or Buffer Zone 1) in which agricultural activities are permitted.
• Outer Buffer Zone (or Buffer Zone 2) in which multiple use activities are permitted.

Buffer Zone 2 extends well into the city of Kouroussa, the regional capital (pop. 50,000) and encompasses many villages and artisanal mine sites.

Absence any change of decree, Buffer Zone 2 of the Upper Niger National Park is a protected area where the mining of mineral deposits is not permitted. However, there are precedents in Guinea for Mining Permits to be granted within highly environmentally sensitive areas (e.g. within and adjacent to the Mt Nimba World
Heritage Site). Also, the Company has been operating on the area under duly and validly issued Exploration Permits, in compliance with its obligations under the Mining Act and the terms of its Exploration Permits.