DIATREME RESOURCES LIMITED — Board/Management Information 2021

Feb 18, 2021

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ASX ANNOUNCEMENT

19 February 2021

Diatreme appoints COO to accelerate Galalar Silica Project

• Globally experienced mining executive Peter Brown appointed as Chief Operating Officer (COO) to drive rapidly advancing Galalar Silica Project in North Qld.

• Initial focus on ensuring timely delivery of permitting and other approvals for Galalar, along with detailed planning for pre‐ and post‐mining activities; will also manage further economic enhancements in lead‐up to FID process.

• Appointment strengthens Diatreme’s internal management team and project implementation capacity, as Galalar project advances towards development amid rising demand for premium silica product.

Emerging mineral and silica sands developer and explorer, Diatreme Resources Limited (ASX:DRX) announced today the appointment of globally experienced mining executive, Peter Brown, as Chief Operating Officer (COO) to further advance the Company’s key Galalar Silica Project.

Mr Brown has more than three decades’ experience both in Australia and internationally in senior project management roles in the resources sector, with an emphasis on business improvement and ensuring successful project delivery from greenfield to production in multiple commodities. Importantly for Diatreme, his experience encompasses proactive engagement with the community including traditional owners, with a strong track record of collaboration and enhancing safety management.

Recent experience has included various senior management roles for Round Oak Minerals (a subsidiary of WH Soul Pattinson), including contributing to its North Queensland projects (copper‐gold mines). He has also served in a senior project management role at international consultancy Golder Associates, as well as various roles including General Manager on mining projects in Asia and South America.

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Mr Brown’s qualifications include a Bachelor of Applied Science (Geology) from UTS, Civil and Groundwater Engineering Studies (UNSW) and various project management studies, together with being a qualified Senior Site Executive (SSE) in Queensland.

Welcoming the appointment, Diatreme’s CEO Neil McIntyre said: “ Peter has an excellent track record of delivering results, with a wealth of mining project experience including in North Queensland. It is this experience which will prove invaluable as we work to advance the Galalar Silica Project towards development while ensuring maximum benefits for the community and all other stakeholders.

“Peter’s initial focus will be on assisting in the timely delivery of permitting and other approvals for Galalar, together with detailed project planning for pre‐ and post‐mining activities, to ensure sustainable economic outcomes. He will also lead manage further economic enhancement studies in the lead‐up to the final investment decision process.”

Mr Brown’s appointment strengthens Diatreme’s internal management team and practical project implementation capacities, as the Company progresses from exploration to development. Further key appointments are anticipated ahead of the commencement of mining operations, which pending the necessary environmental and other approvals could commence as early as 2022.

Engagement with the community of Hope Vale/Cooktown, including traditional owners and affected native title holders will be important to the project’s successful development and Mr Brown’s experience is expected to facilitate positive outcomes for all stakeholders.

This announcement was authorised for release by:

Neil McIntyre	Greg Starr
Chief Executive Officer	Chairman

Contact – Mr Neil McIntyre ‐ Ph – 07 3397 2222 Website ‐ diatreme.com.au E‐mail ‐ manager@diatreme.com.au

For media queries, please contact: Anthony Fensom, Republic PR (anthony@republicpr.com.au; Ph +61 (0)407 112 623)

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About Diatreme Resources

Diatreme Resources (ASX:DRX) is an emerging Australian producer of mineral and silica sands based in Brisbane. Our key projects comprise the Galalar Silica Project in Far North Queensland, located next to the world's biggest silica sand mine, together with the Cyclone Zircon Project in Western Australia’s Eucla Basin, considered one of a handful of major zircon‐rich discoveries of the past decade.

For more information, please visit www.diatreme.com.au

About Galalar Silica Project

Located around 200km north of Cairns and 20km north of the port of Cooktown, the Galalar Silica Project (EPM 17795) lies within the same sand dune system and in close proximity to the world’s largest operating silica sand mine at Cape Flattery. The Cape Flattery silica sand product is recognised as a global benchmark for quality silica sand and is widely used for industrial purposes throughout Asia.

The global silica sand market is seen reaching nearly US$10 billion in annual revenues by 2022, with a compound annual average growth rate of 7.2% (source: IMARC Group), while the global solar PV glass market is estimated to reach US$48.2 billion by 2025, up from US$3.3 billion in 2016 (source: Bizwit Research & Consulting).

An independent economic study has shown the Galalar project’s potential to deliver a sizeable economic injection into the Hopevale/Cooktown region, including $23‐$24 million in the construction phase and up to $42m in operation, creating up to 110 full‐time equivalent jobs and contributing $1.475m in annual state royalties.

In May 2020, Diatreme announced a total Mineral Resource of 47.5 million tonnes (Mt), with the potential for further expansion (refer ASX release 12 May 2020). Bulk sample testwork has shown the project’s ability to produce a premium grade silica product suitable for high‐end glass and solar panel manufacturing, with more than 99% silica dioxide and low iron levels of less than 100 parts per million.

Following lodgement of a mining lease application in December 2019 and receipt of final terms of reference for the environmental studies in November 2020, Diatreme is now progressing through various environmental and regulatory approvals towards mining activity.

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Galalar Silica Project, North Qld

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Forward looking statements : This document may contain forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as “seek”, “indicate”, “target”, “anticipate”, “forecast”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Indications of, and interpretations on, future expected exploration results or technical outcomes, production, earnings, financial position and performance are also forward‐looking statements.

The forward‐looking statements in this presentation are based on current interpretations, expectations, estimates, assumptions, forecasts and projections about Diatreme, Diatreme’s projects and assets and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made.

The forward‐looking statements are subject to technical, business, economic, competitive, political and social uncertainties and contingencies and may involve known and unknown risks and uncertainties. The forward‐looking statements may prove to be incorrect.

Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results expressed or implied by any forward‐looking statements. All forward‐looking statements made in this presentation are qualified by the foregoing cautionary statements.

Disclaimer : Diatreme and its related bodies corporate, any of their directors, officers, employees, agents or contractors do not make any representation or warranty (either express or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward‐looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law. Diatreme and its related bodies corporate and each of their respective directors, officers, employees, agents and contractors disclaims, to the maximum extent permitted by law, all liability and responsibility for any direct or indirect loss or damage which may be suffered by any person (including because of fault or negligence or otherwise) through use or reliance on anything contained in or omitted from this presentation. Other than as required by law and the ASX Listing Rules, Diatreme disclaims any duty to update forward looking statements to reflect new developments.