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DIATREME RESOURCES LIMITED Capital/Financing Update 2010

Jul 29, 2010

64787_rns_2010-07-29_6f944b1d-e99a-461d-9be0-0530b25aecad.pdf

Capital/Financing Update

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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 [email protected]

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ASX : DRX

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

30 July 2010

COMPLETION OF CAPITAL RAISING

Diatreme Resources Limited ( ASX:DRX ) is pleased to announce that it has completed a Placement of 8,823,525 ordinary fully paid shares (“Shares”) at 8.5 cents per share, raising $750,000, to sophisticated and professional investors, including existing major shareholders.

Funds will be applied generally as working capital toward the advancement of the Company’s heavy mineral and base metal projects. This will partially include the Cyclone Prefeasibility Study presently underway, together with the proposed co-funding from international industry groups of the Wanna Heavy Mineral Sands Project (encompassing the Cyclone Deposit).

The Placement was managed by Intersuisse Ltd, together with PhillipCapital Australia.

Settlement and allotment of the new shares is expected to be finalized within the next seven days.

The resulting issued capital of the Company once the new shares are allotted will be as follows:

Description Securities on Issue
Ordinary fully paid shares - listed 234,864,734
47 cent options expiring 30 June 2011 - unlisted 16,800,000
47 cent options expiring 31 July 2011 - unlisted 3,000,000

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Leni Stanley Company Secretary