DIATREME RESOURCES LIMITED — Capital/Financing Update 2011

Feb 17, 2011

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MARKET RELEASE

18 February 2011

Diatreme Resources Limited

TRADING HALT

The securities of Diatreme Resources Limited (the “Company”) will be placed in preopen at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in pre-open until the earlier of the commencement of normal trading on Tuesday, 22 February 2011 or when the announcement is released to the market.

Security Code:

DRX

Frances Finucan Senior Adviser, Listings (Brisbane)

DRX2011.02.18th-ff

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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 manager@diatreme.com.au

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ASX : DRX

18 February 2011

Australian Securities Exchange Limited Level 5, 123 Eagle Street Brisbane Qld 4000

Attention: Frances Finucan

Via email

REQUEST FOR TRADING HALT – DIATREME RESOURCES LIMITED

Pursuant to Listing Rule 17.1, we request a trading halt in respect of the shares of Diatreme Resources Limited ( DRX ) and provide ASX with the following information:

• (a) DRX requests the trading halt because it is currently negotiating a capital raising, but is not able to make an immediate announcement in respect of the capital raising as negotiations are not finalised.

• (b) DRX requests that the trading halt remain in place until the commencement of trading on Tuesday 22 February 2011 unless before that time DRX makes an announcement in relation to the capital raising.

• (c) DRX is not aware of any reason why the trading halt should not be granted.

• (d) DRX does not consider that there is any other information necessary to inform the market about the trading halt.

Yours sincerely

Diatreme Resources Limited

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Leni Stanley

Company Secretary

K:\Diatreme\ASX\Correspondence\2011 02 18 Request for Trading Halt.doc