DIATREME RESOURCES LIMITED — Capital/Financing Update 2013

May 21, 2013

ASX:DRX

ASX ANNOUNCEMENT

22 May 2013

CLERMONT COPPER PROJECT

Under the Farm-In Agreement with Antofagasta Minerals Australia Pty Ltd, the Rosevale Project area has been the focus of the Company’s attention over the past year at the Clermont Copper Project in central Queensland.

Exploration in late 2012 and early 2013 concentrated on drilling three prospects, Gollan, Red Dog and Elektra, within the Rosevale Project area along with the conduct of mapping and geological sampling over the Consols/Savannah Prospect area to the south of Rosevale (see Figure 1).

To summarise :

• The Rosevale Project remains highly prospective for copper, particularly at the Gollan Prospect and drill targets in this area remain to be tested.

• The Consols/Savannah prospect is shaping up to be a very large area of alteration with areas of significant geochemistry and further work, potentially including drilling, is warranted.

Diatreme Resources is an Australian based diversified mineral explorer with significant projects in heavy mineral sands, copper, base metals and gold.

The Company owns the world class Cyclone Zircon Deposit in Western Australia, situated within the recognised Eucla Basin province , along with extensive areas of underexplored ground prospective for heavy mineral sands.

The Board and senior personnel exhibit wide experience, ranging through the exploration and development phases of resource management.

Australian Securities Exchange Codes: DRX and DRXO

Securities

Ordinary shares (DRX): 478,379,785 Listed 15c options (30/09/13)(DRXO): 88,650,035

Board of Directors Executive:

Tony Fawdon - Chairman/CEO David Hall - Operations Non-executive : George White Andrew Tsang William Wang Neil McIntyre

Joint Company Secretaries: Leni Stanley Tuan Do

Key Projects:

• Cyclone Zircon Project, WA

• Significant geochemical results have been received from the Savannah Prospect, which covers a strike length of 1.4km within a 14km mineralised zone including Rosevale Porphyry Corridor.

• Further exploration at Savannah to include detailed mapping, possible geophysics and drilling.

• Clermont Copper Project, QLD

• Anabama Copper Project, SA

• Gilbert River Base Metals Project, QLD

Diatreme Resources Contact: Tony Fawdon Executive Chairman/CEO Phone: +61 7 3832 5666 Fax: +61 7 3832 5300

Share Registry: Link Market Services Level 15, ANZ Building 324 Queen Street, Brisbane, Q4000

DIATREME RESOURCES LIMITED ABN 33 061 267 061

Level 2, 87 Wickham Terrace, Spring Hill, Qld, 4000 PO Box 10288 Brisbane Adelaide Street Qld 4000 Telephone : +61 7 3832 5666 Facsimile : +61 7 3832 5300

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manager@diatreme.com.au www.diatreme.com.au

DIATREME RESOURCES LIMITED

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Rosevale Project

Drilling commenced in January 2013 on the Rosevale Project with the aim of locating large copper porphyry deposits. During January, two reverse circulation (RC) holes were completed on the Red Dog Prospect and three RC holes at the Elektra Prospect. An additional RC hole was drilled between Round Hill and West Copperfield to bring the total RC drilling to 810m. Diamond drilling commenced on the 30[th] January and concluded on the 28[th] February, all at the Gollan Prospect. The drilling has furthered the Company’s understanding of the Rosevale Project geology as it aims to discover a large porphyry copper deposit in the district.

Additional drilling is required at Gollan to test a highly anomalous Induced Polarisation (IP) anomaly, as shown in Figure 2. This IP anomaly cross cuts geology and may therefore be related to sulphide mineralisation and could be responsible for the considerable amount of alteration and copper mineralisation within this area. Drilling will test this in the coming months.

Rosevale Project – Drilling Summary

Prospect	Collar ID	Easting	Northing	RL	Final Depth	Surface Azimuth (mag)	Surface Dip	Date Start	Date Finish
Red Dog	RDRC-007	551995	7471970	300	156	211	60	19/01/2013	19/01/2013
Red Dog	RDRC-008	552005	7471983	301	174	031	60	20/01/2013	20/01/2013
Elektra	ERC-001	550698	7471429	320	150	075	60	21/01/2013	21/01/2013
Elektra	ERC-002	550859	7471504	320	150	075	60	21/01/2013	22/01/2013
Elektra	ERC-003	550928	7471537	320	102	243	60	22/01/2013	22/01/2013
Round Hill /Gollan	RHRC-001	550814	7472654	332	78	055	55	23/01/2013	23/01/2013
Gollan	RDD-015	549989	7472867	325	663.7	057	70	30/01/2013	11/02/2013
Gollan	RDD-016	550531	7472602	325	576.7	221	80	12/02/2013	21/02/2013
Gollan	RDD-017	550531	7472602	325	300	044	55	22/02/2013	28/02/2013

GDA94 zone 55

Savannah / Consols Prospects

Mapping at the Savannah and Consols prospects (Figure 3) has outlined two large areas of epidote alteration with minor brecciation. A zone of significant geochemistry has been returned from the Savannah Prospect returning up to 25ppm gold, 80ppm silver, 1.8% copper, 1.4% lead, and 1.4% zinc (Figures 4 and 5).

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DIATREME RESOURCES LIMITED

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The region containing the Savannah and Consols prospects has been mapped at 1:5000 scale by DRX geologists and consultants where two major areas of epidote+chlorite+haematite (propyllitic) alteration have been discovered. Recent mapping of the southern part of the Savannah Prospect has revealed a 1.4km long continuous zone of quartz-epidote veining and brecciation and lesser mineralisation in an enclave further to the southwest. The propylitic alteration and the metal assemblage, which consists of Au+Cu+Ag+Pb+Zn, is suggestive of a copper, gold, silver porphyry source. This assemblage is very similar to that in the Round Hill rhyolite of the Rosevale Project, as well as reported mineralisation in the Gollan Prospect and drill-hole RHRC01, adjacent to both the Round Hill and Gollan prospects situated 12km to the northwest.

Further detailed mapping is warranted along with drill testing at Savannah.

Anomalous Rock Chip Results – Savannah Prospect

SAMPLE ID	Easting GDA94	Northing	Au	Ag	Cu	Pb **ppm **
		GDA94	**ppm **	**ppm **	**ppm **
F222/12	557234	7461950	0.196	76.8	9260	952
F359/12	557456	7462494	0.048	11.8	3830	282
F345/12	557800	7462114	1.155	1.2	186	3870
F347/12	557837	7462086	1.705	6.7	1550	2710
F7/13	557007	7461833	0.023	15.8	4930	15
F37/13	557369	7462750	0.801	19.4	3710	3150
F43/13	557155	7462853	25.6	21.1	859	2820
F59/13	556962	7463119	0.434	80.4	18450	8650
F65/13	557716	7462307	0.802	2.2	3130	69
F72/13	557369	7462750	5.37	34.9	4680	7670
F73/13	557401	7462736	0.894	10.8	7410	209
F76/13	557254	7462777	3.89	12.3	3600	633
F77/13	557243	7462813	6.32	4.6	3480	128
F85/13	557363	7462636	0.02	19.5	4740	1550

Assay Methodology

All rock chip samples were sent to ALS Townsville for multi-element analysis via multi acid digestion, Inductively Coupled Plasma - Mass Spectrometry (ICP-MS). Gold was assayed by 30g FA/AAS. These techniques are considered appropriate and are considered industry best standard.

Regional Prospects

The Clermont tenement(s) contains many other prospects that have experienced various levels of exploration by numerous companies over the years. A thorough review of these prospects will be undertaken in the coming months along with field visits to establish prospectivity.

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DIATREME RESOURCES LIMITED

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For further information:

Tony Fawdon Executive Chairman/CEO Ph: +61 7 3832 5666

Competent Person Statement

The information in this report, insofar as it relates to Exploration Results is based on information compiled by company personnel under the supervision of Mr David Jelley, who is a full time employee of Diatreme Resources Limited and 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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Figure 1: Clermont Project Location Plan showing prospects

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Figure 2: Highly anomalous Induced Polarisation anomaly at the Gollan Prospect

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Figure 3: Geological mapping at the Savannah and Consols prospects

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Figure 4: Savannah Prospect – anomalous rock chip (Cu, Ag, Au, Pb) results

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DIATREME RESOURCES LIMITED

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Figure 5: Savannah Prospect – anomalous rock chip sample IDs

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