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DIATREME RESOURCES LIMITED Capital/Financing Update 2007

Oct 11, 2007

64787_rns_2007-10-11_77ff1ff2-c794-4e30-8896-d8f0aeb218cd.pdf

Capital/Financing Update

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DIATREME RESOURCES LIMITED

ABN 33 061 267 061

Level 2, 87 Wickham Terrace, Spring Hill, Qld, 4000 PO Box 10288 Brisbane Adelaide Street Queensland 4000

Telephone : 61 7 3832 5666 Facsimile : 61 7 3832 5300 Email : [email protected] Website : www.diatreme.com.au

ASX Code: DRX

Company Announcement Office Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000

12 October 2007

REVISED PRICING OF OPTIONS

As a result of the in specie distribution of shares in Xtreme Resources Limited, and pursuant to ASX Listing Rules requirements, the Company advises that the exercise price for all options on issue will reduce by an amount of three (3) cents per option.

The following revised option exercise pricing structure is effective 12 October 2007:

Option Description New exercisepriceper option
25 cent 31 October 2007 options(listed “DRXO”) 22 cents
30 cent 30 September 2008 options 27 cents
50 cent 01 November 2007 options 47 cents
50 cent 30 June 2011 options 47 cents
50 cent 31 July2011 options 47 cents

Holders of “DRXO” options are reminded that the quotation of the options ends at the close of trading on 24 October 2007. A final notice to exercise those options was mailed on 3 october 2007 to all optionholders on the register at that time.

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Lawrie Litzow Corporate Secretary