DIATREME RESOURCES LIMITED — Capital/Financing Update 2008

Mar 3, 2008

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A.B.N. 51 002 529 160

Level 5, 47 York Street Sydney NSW 2000 Australia Tel: +61(02) 9290 2400 Fax: +61(02) 9299 6733 Email ghq@mineralscorp.com.au

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

4 March 2008

STOCK EXCHANGE ANNOUNCEMENT

EUCLA BASIN HEAVY MINERAL SANDS EXPLORATION PROJECT

Minerals Corporation is pleased to announce a major exploration milestone with its Eucla Basin project. This project is held by Lost Sands Pty Ltd (LSPL), of which MSC subsidiary Zircon Resources Limited (ZRL) is a shareholder – see ASX Announcement 21 July 2005. The Eucla Basin Heavy Mineral Sands (HMS) Project is operated by co-shareholder, Diatreme Resources Limited, (ASX Code: DRX), the parent company of LSPL.

Eucla Basin Project (DRX 75% / MSC 25%)

This is an exploration project seeking HMS in a recently discovered zircon rich province in the Eucla Basin. This large mineralized province has the potential to become a leading global producer of valuable zircon and related HMS minerals and through our interest in LSPL, the Company has a leading position in this basin. Discoveries have already been made by Iluka who is also exploring in this basin, and most recently by LSPL. DRX, as operator, has announced a major inferred resource of 60 million tonnes heavy mineral sands grading 3.1% heavy minerals and containing 1.8 million tonnes heavy minerals (ASX announcement 15 February 2008). LSPL anticipates upgrading the resources status later this year. The likely prospects for further valuable finds are considered to be good as drilling is open ended on strike and further drilling is planned.

Strategy

MSC wishes to concentrate its efforts on its emerging China Clay business where it has identified substantial growth opportunities, particularly with regard to its low carbon “green cement” products. Accordingly, at an appropriate future time, MSC will seek to have ZRL develop its Eucla interests as a single focus company in HMS with a dedicated management group. ZRL has the right to increase its equity stake in LSPL in 2 increments of 5% each by paying an exercise fee of $750,000 by 30 June in 2008 and in 2009. If both options are exercised, the ZRL equity in LSPL would increase to 35%.

After an initial relatively slow exploration programme, MSC is pleased with this outcome and its promise of further discoveries in the Eucla which suggests a future major project is in the making. The Eucla Basin is developing into a high grade zircon rich heavy mineral province of global significance. The longer term demand for HMS and zircon in particular is expected to be favourable with substantial demand growth continuing to come from China, particularly in the ceramics industry.

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C V Alexander Managing Director

About MSC:

MSC has commissioned a world class china clay (kaolin) project at Skardon River, in northern Queensland which is currently in the marketing roll out stage. Additional premium quality kaolin projects are being developed in China and Western Australia which will transform MSC into a leading regional based supplier with a full range of exceptionally high grade kaolin products for the paper, paint, concrete, polymer, cosmetic, pharmaceutical and ceramic industries focused on S. E. Asia and selected world markets.

Contacts: Vic Alexander, CEO Tel: 02-9290 2400