DIATREME RESOURCES LIMITED — Capital/Financing Update 2014

Dec 7, 2014

8th December 2014

Diatreme Resources Limited (the “Company”) is pleased to announce that it has completed a placement of 88,473,333 ordinary fully paid shares (to rank equally in all respects with existing shares) at 1.2 cents per share raising $1,061,680 before costs, to sophisticated and professional investors.

The above placement has been made under the Company’s “available capacity”, and was managed by newly appointed corporate advisor, Beer & Co.

Funds will be applied towards:

• advancing the Definitive Feasibility Study for the Cyclone Zircon Project,

• satisfaction Eucla Basin tenements acquisition for $415,000 from Image Resources NL (refer ASX announcement 11/11/14),

• exploration funds on the North Queensland Lease application, and

• working capital.

This announcement ends the trading halt requested 2[nd] December and the further trading suspension requested by the Company on 4th December 2014.

Neil McIntyre

Chief Executive