DIATREME RESOURCES LIMITED — Capital/Financing Update 2009

Aug 9, 2009

DIATREME RESOURCES LIMITED

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ABN: 33 061 267 061

Postal Address: P.O 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

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ASX : DRX

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

10 August 2009

ACQUISITION EUCLA BASIN HEAVY MINERAL SANDS PROJECT

AND BELLFIELD BASE METALS PROJECT 100%

The Company is pleased to announce:

EUCLA BASIN HEAVY MINERAL SANDS PROJECT

DRX has finalised an agreement to re-acquire the full 25% equity position of Zircon Resources Limited (“ZRL”), a subsidiary of Minerals Corporation Limited (ASX:”MSC”), in Lost Sands Pty Ltd (“Lost Sands”) by the issue of 4.5 million new ordinary shares in DRX to ZRL. The shares being issued to will have the following voluntary escrow provisions applied to ZRL, or its nominees:

• 50% of the shares escrowed for 6 months from date of issue

• 50% of the shares escrowed for 12 months from date of issue

Lost Sands, which is both the tenement holder and operator of the Eucla Basin Heavy Mineral (HM) Sands Project located within Western and South Australia, will again become a wholly owned subsidiary of DRX.

BELLFIELD BASE METALS PROJECT

Minerals Corporation Limited (ASX:”MSC”) and DRX have reached agreement on the withdrawal of MSC, with no retained interest, from the Bellfield Base Metals Project, located in north Queensland.

DRX, through its wholly owned subsidiary, Chalcophile Resources Pty Ltd, now holds the project 100%. This allows DRX the greatest scope to pursue the full potential of the project.

FUNDING OF PROJECTS

DRX has sufficient funds to continue to meet its budgeted 2009 exploration programs over the two project areas.

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PROJECT INFORMATION

Eucla Basin Project

Through the re-acquisition of 100% ownership of Lost Sands, DRX now controls in excess of 30,000km[2] in its SA and WA heavy mineral tenements, containing an estimated 1,000km of multiple strand lines (fossil shorelines). To date, only about 20% of the strandlines have been subjected to drilling by DRX. This work has resulted in the discovery of the zircon rich, Cyclone HM Deposit. The current Inferred Resource of this deposit, which is 60Mt @ 3.1% HM (1.8Mt HM), is in the process of being upgraded and recategorized based upon current ongoing work, the results of which are expected by mid September 2009.

Bellfield Base Metal Project

This project, 1,222km[2] in area, consists of two granted exploration permits (EPMs 12868 and 12888) and one application (EPM 18213) over a 90km strike length of highly prospective terrain in the Georgetown Proterozoic Inlier.

The Bellfield area has similar rocks and geological setting to the Mount Isa Inlier and is partially covered by Mesozoic sediments. In early September 2009, reconnaissance ground exploration is to commence in areas where copper, lead, zinc and silver mineralisation is known to occur.

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Anthony J Fawdon Executive Chairman/CEO

Company contact details : Tel : +61 7 3832 5666 Fax : +61 7 3832 5300 Email : manager@diatreme.com.au

Competent Person Statement

The information in this report, insofar as it relates to Exploration Results and Mineral Resources, is based on information compiled by Mr David Jelley, of David Jelley Pty Ltd, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Jelley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jelley consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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