DIATREME RESOURCES LIMITED — Capital/Financing Update 2017

Jul 30, 2017

31 July 2017

Diatreme Resources Limited (ASX: DRX) is pleased to announce that it has commenced a capital raising program to sophisticated investors for the placement of 75,000,000 fully paid ordinary shares at $0.01 (Placement Shares) with a free attached 1 for 1 unlisted option exercisable at $0.012 by 31[st] January 2018 (6 months from issue) with a targeted raise of $750,000 before costs.

Diatreme has already received firm commitments totaling $500,000 and anticipates closing the fund raising by mid-August 2017.

The Placement Shares and free attaching options are to be issued under the Company’s currently available capacity in accordance with ASX listing rule 7.1.

The Funds will be applied towards:

• Commencement of an exploration and drilling program at the Cape Bedford tenement.

• Further advancement of Cyclone Project product offtake negotiations

• Working capital

Application for quotation of the Placement Shares will be made to the ASX Limited once the placement is finalized. Upon issue, the Placement Shares will rank equally alongside existing fully paid ordinary shares.

For further information, please contact:

Tuan Do Company Secretary Tel: +61 7 3397 2222