DIATREME RESOURCES LIMITED — AGM Information 2011

May 25, 2011

==> picture [71 x 89] intentionally omitted <==

DIATREME RESOURCES LIMITED

ABN: 33 061 267 061 Postal Address: PO Box 10288 Brisbane Adelaide Street QLD 4000 Registered Office: Level 2 87 Wickham Terrace Spring Hill QLD 4000 PH: +61 (0)7 3832 5666 FX: +61 (0)7 3832 5300 www.diatreme.com.au manager@diatreme.com.au

==> picture [29 x 31] intentionally omitted <==

ASX : DRX

26 May 2011

CHAIRMAN’S ADDRESS

Presented to Annual General Meeting of Shareholders Thursday 26 May 2011

Ladies and Gentlemen

Once again, I can recount that this has been another successful year for our Company. We have seen both positive results from our ongoing field and test work over the zircon rich Cyclone Deposit in Western Australia and surging market prices for zircon and titanium product.

Zircon prices have appreciated significantly over recent times, with current CIF zircon prices into China being quoted by industry sources as US$1,700 per tonne and spot prices in China more than US$500 per tonne higher. Industry experts are forecasting CIF prices into China to increase by a further US$500 per tonne for the third quarter this year with further increases in quarter four. This compares to US$850 to US$950 per tonne for zircon at the end of 2010.

There has been a major shortfall in zircon supply in the various markets. Zircon product is being rationed to global end user manufacturers and the growth of zircon supply is not keeping pace with demand. This position is further exacerbated by a lack of new zircon mines being brought into production worldwide over the next five years.

Currently there are three Ilmenite (low value titanium) projects with zircon as a coproduct proposing to start production within the next four years. Diatreme’s Cyclone Zircon Project is the only zircon rich deposit proposing to come into production within that period. To date, we have identified an in-ground resource of 1 million tonnes of zircon.

The 2010 Cyclone Mine Scoping Study specified a projected 2014 price assumption for zircon of US$1,200 per tonne. This gave a projected annual profit of AU$50 million after all costs were deducted over a 10 year mine life. The zircon price is now well above the Company’s projected 2014 scoping study price. At today’s prices, the Cyclone Zircon Project delivers a further projected US$500 million funds over life of mine.

DIATREME RESOURCES LIMITED

==> picture [37 x 49] intentionally omitted <==

As announced earlier today, Baoti Group Limited, China’s biggest titanium and zircon products manufacturer, has confirmed that they wish to jointly progress the Cyclone Zircon Project based upon the previously signed Memorandum of Understanding and the agreed timetable. BaoTi is asking that both parties finalise the negotiations and prepare the Heads of Agreement before the end of June 2011.

Combining all the above factors, including BaoTi’s project commitment, this places our Company in a very desirable space with a bright future.

As shareholders of an emerging mining company with an exciting zircon development project, I cannot see a better space to be in. I thank you for your support and patience as we move forward toward production.

==> picture [162 x 63] intentionally omitted <==

Tony Fawdon Executive Chairman/CEO