DIATREME RESOURCES LIMITED — Capital/Financing Update 2014

Sep 17, 2014

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18 September 2014

Diatreme Resources Limited (ASX: DRX) (“Diatreme” or “the Company”) is pleased to announce that Perpetual Mining Holding Limited (“PMHL”) has completed its initial farm-in commitment on the Cyclone Zircon Project (Project) through Diatreme’s subsidiary company Lost Sands Pty Ltd (Lost Sands).

Under the Heads of Agreement (HOA) signed on 9 January 2014, between PMHL and Lost Sands, PMHL agreed to invest $2.0 million by way of a series of cash calls into the Project to earn six percent (6%) joint venture (JV) participating interest.

The Company received the final cash call amount of $250,000 under the HOA on 16 September 2014.

The Chairman of Diatreme, Mr William Wang commented as follows:

“PMHL has shown its strong interest and support of the Project by the timely provision of their JV participating interest contributions through the various cash calls.

We thank them for their support to date and look forward to continuing

to work together to ensure the Project’s further good progress”.

For and on behalf of the Board

Tuan Do

Joint Company Secretary