DIATREME RESOURCES LIMITED — Capital/Financing Update 2018

Oct 4, 2018

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ASX

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ANNOUNCEMENT

5 October 2018 Di a treme Raises $2 . 048M i n Placem e nt

Diat r eme Resou r ces Limited (ASX: DRX) (“ Diatreme ” or “ Company ”) is pleas e d to annou n ce it has re c eived commitments t o raise $2.04 8 M (before c osts) via a p rivate placement (“ Placement ”) to p rofessional and sop h isticated in v estors, through the issue of 102,37 6 ,154 shares at $0.02 pe r share.

The C ompany w i ll also issue 51,188,077 a ttaching o p tions (“ Attaching Options ”) on a 1: 2 basis (1 option for eve r y 2 shares), with an exercise pri c e of $0.03 p er option a n d expiring 14 months fr o m date of i s sue. The C o mpany will s eek quo t ation of the attaching o p tions subje c t to compli a nce with the ASX Listin g Rule 2.5 (C o ndition 6).

The placement and attachin g options will be comple t ed by utilising the Com p any’s existi n g capacity u nder ASX Li s ting Rules 7.1 (101,0 1 7,550 secu r ities) and 7.1A (52,546, 6 81 securiti e s).

• The proceeds fr o m this plac e ment will b e used to undertake the following: • Comple t ion of the C y clone Zirco n Project de f initive feasi b ility study (DFS) curren t ly being un d ertaken by China E N FI Engineer i ng and due f or complet i on during t h e current month (Octo b er 2018)

• • Undertaking further resource drilling and bu l k sampling p rograms at the Cape B e dford Silica Project • Comme n cement of t he mining l e ase permitt i ng and app r ovals proce s s for the Cape Bedford S ilica Projec t , and

  • Ancillar y working ca p ital.

The Directors ar e pleased wi t h the outc o me and lev e l of support shown in the company’ s on‐going a c tivities and wish to t h ank the ap p licants, who are all new investors, a n d welcome them to the Company.

For f urther infor m ation: Neil M cIntyre G regory Star r CEO C hairman 07 3 3 97 2222 0 7 3397 222 2 man a ger@diatre m e.com.au m anager@di a treme.com. a u

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