DIATREME RESOURCES LIMITED — Capital/Financing Update 2018

Aug 15, 2018

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [49 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [49 x 59] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [49 x 60] intentionally omitted <==

ASX ANNOUNCEMENT

==> picture [30 x 66] intentionally omitted <==

==> picture [54 x 66] intentionally omitted <==

==> picture [55 x 66] intentionally omitted <==

==> picture [34 x 66] intentionally omitted <==

16 August 2018

Bulk Sample Testwork verifies Cape Bedford’s high‐quality silica sand product

• Bulk sample process testwork confirms Cape Bedford Silica/Heavy Minerals Project’s Nob Point Prospect capable of producing high‐quality silica sand product (99.9% SiO2)

• Product capable of being made using standard wet gravity spiral concentrator, with 88% recovery rate from bulk sample to high‐value end product

• Diatreme now focusing on further infill drilling, commercial scoping study and commencement of licensing and permitting studies following successful definition of Maiden Inferred Mineral Resource

Prospects for a n ew silica sa n d mine in F a r North Qu e ensland ha v e received a nother boost, with Diatreme Resources Limi t ed (ASX:DR X ) announci n g today po s itive testwork results showing the C a pe Bedford Silica/Heav y Minerals Proj e ct is capabl e of producing a world‐ c lass silica sand product a t 99.9% SiO2.

Bulk sampling fr o m the proj e ct’s Nob Po i nt Prospect also showe d the produ c t could be produced at a high recov e ry rate of 88%. It also demonst r ated that p r ocessing w o uld be relatively straigh t forward du e to minima l oversize, a low leve l of slimes ( 3 %) and eas y removal of heavy mine r als (0.19%) o n spiral se p arators.

Simi l arly, minin g is expected to be a sim p le operatio n due to the small amou n t of overb u rden prese n t which can be easily removed. A n initial op e ration with annual pro d uction of 3 0 0,000 to 500,000 tonne s of high‐gr a de silica pr o duct is envisaged, pe n ding furthe r studies an d discussion s with poten t ial customers.

The s uccessful r e sults follow the Compa n y’s announ c ement of a maiden Inferred Mineral Resource f o r the proje c t’s Nob Point Prosp e ct of an estimated 21.6 million ton n es @ > 99 % SiO2 (refer ASX announcement 13 A ugust 2018 ) .

Diat r eme’s CEO, Neil McIntyre, said the r esults provi d ed further evidence of the potenti a l for a valuable new sili c a san d mine.

==> picture [26 x 112] intentionally omitted <==

==> picture [55 x 112] intentionally omitted <==

==> picture [55 x 112] intentionally omitted <==

==> picture [55 x 112] intentionally omitted <==

==> picture [46 x 112] intentionally omitted <==

==> picture [54 x 112] intentionally omitted <==

==> picture [55 x 112] intentionally omitted <==

==> picture [27 x 112] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

“Ca p e Bedford i s showing gr e at promise , with these results follo w ing the po s itive maide n Inferred R e source for the proj e ct’s Nob P o int Prospec t ,” he said.

“Lo o king forwar d , we antici p ate Nob Point has the p o tential to become a long‐life opera t ion, providi n g jobs for t h e loca l communit y and cashflow that will allow Diatre m e to expan d exploratio n further no r th and wes t , with the aim of iden t ifying additional silica and heavy mineral resou r ces.”

Located 200km n orth of Cairns and near the world’s largest silic a sand mine a t Cape Flat t ery, the Ca p e Bedford proj e ct is seen c a pable of su p plying fast‐growing Asi a n markets w ith high‐gr a de silica sa n d used in hi g h‐end glas s manufacturing w ithin the automotive, c o nstruction, electronics a nd other sectors. The global silica s a nd market is see n reaching n e arly US$10 b illion in revenues by 2022, with a h e althy compound annual growth rat e of 7.2% (source: IMARC G roup).

Bulk Sample Process

A 1. 8 tonne representative b ulk sample e xtracted fr o m the Cape Bedford Inf e rred Miner a l Resource u sing Diatre m e’s air c o re drill rig w as submitt e d to IHC Ro b bins (IHCR) for testing, 104 sample s with avera g e weight of 17.3kg wer e deli v ered to the IHCR’s proc e ss testwork facility. All m aterial rec o vered from each 3m dr i ll interval w a s included in the sam p le.

==> picture [488 x 11] intentionally omitted <==

----- Start of picture text -----

Fig 1 ‐ Map showin g drill hole loca t ions and the in f erred resourc e outline from m aiden resource report (ASX re lease 13 [th] Au g ust 2018)
----- End of picture text -----

==> picture [14 x 146] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [52 x 73] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [52 x 74] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [54 x 59] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [52 x 74] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [54 x 60] intentionally omitted <==

==> picture [55 x 60] intentionally omitted <==

==> picture [52 x 74] intentionally omitted <==

==> picture [55 x 59] intentionally omitted <==

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [47 x 111] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

Fig 2. Table of samp l es showing ho l e number, dep t h interval, sa m ple number, S i O2 grade and s ample weight

Hol e ID	From	To	Sa mple ID	S iO2 %	Sa mple kg	Hole ID	Fro m	To	Sample ID	SiO2 %	Sa kg mple
CB0 65	6	9	D2 138	9 9.67	18 .3	CB072	3	6	D2187	99.19	18
CB0 65	9	12	D2 139	9 9.35	18 .6	CB072	6	9	D2188	99.28	18 .7
CB0 65	12	15	D2 140	9 9.69	19 .9	CB072	9	12	D2189	99.28	21
CB0 65	15	18	D2 141	9 9.7	16 .1	CB072	12	15	D2190	99.18	19
CB0 65	18	21	D2 142	9 9.63	15 .4	CB072	15	18	D2191	99.32	22
CB0 67	0	3	D2 153	9 9.42	8.7	CB074	15	18	D2207	99.28	17 .6
CB0 67	3	6	D2 154	9 9.59	16 .8	CB074	18	21	D2208	98.8	14 .7
CB0 67	6	9	D2 155	9 9.19	18 .8	CB074	21	24	D2209	99.1	14 .6
CB0 67	9	12	D2 156	9 9.45	18 .3	CB074	24	27	D2210	99.23	14 .9
CB0 67	12	15	D2 157	9 9.25	21 .5	CB074	27	30	D2211	99.23	14 .1
CB0 67	15	18	D2 158	9 9.21	18 .9	CB074	30	33	D2212	99.06	12 .3
CB0 67	18	21	D2 159	9 9	13	CB075	15	18	D2219	98.85	16
CB0 69	0	3	D2 167	9 9.22	10 .7	CB075	18	21	D2220	99.1	17 .5
CB0 69	3	6	D2 168	9 9.42	18 .2	CB075	21	24	D2221	99.13	16 .3
CB0 69	6	9	D2 169	9 9.26	20 .8	CB075	24	27	D2222	99.45	16 .6
CB0 69	9	12	D2 170	9 9.44	18 .8	CB075	27	30	D2223	99.12	16 .6
CB0 69	12	15	D2 171	9 9.77	16 .7	CB076	9	12	D2228	99.48	16 .5
CB0 69	15	18	D2 172	9 9.77	16 .3	CB076	12	15	D2229	99.59	21 .2
CB0 70	0	3	D2 173	9 9.75	8	CB076	15	18	D2230	99.36	15 .6
CB0 70	3	6	D2 174	9 9.92	16 .7	CB076	18	21	D2231	99.34	13 .7
CB0 70	6	9	D2 175	9 9.27	18	CB077	12	15	D2238	99.54	18 .5
CB0 70	9	12	D2 176	9 9.92	17 .6	CB077	15	18	D2239	99.25	17 .7
CB0 71	3	6	D2 178	9 9.94	15 .1	CB078	3	6	D2242	99.38	17
CB0 71	6	9	D2 179	9 9.36	19 .2	CB078	6	9	D2243	99.3	16 .8
CB0 71	9	12	D2 180	9 9.67	19 .6	CB078	9	12	D2244	99.78	16 .8
CB0 71	12	15	D2 181	9 8.92	16 .5	CB078	12	15	D2245	99.21	16 .1
CB0 71	15	18	D2 182	9 9.25	17 .9	CB079	9	12	D2250	99.42	18 .3
CB0 71	18	21	D2 183	9 9.53	15 .5	CB079	12	15	D2251	99.61	16 .4
CB0 71	21	24	D2 184	9 9	17 .2	CB080	3	6	D2255	99.15	16 .7

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [47 x 111] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

CB0 80	6	9	D2 256	9 9.29	20	CB085	9	12	D2298	99.6	16 .5
CB0 80	9	12	D2 257	9 9.56	18	CB085	12	15	D2299	99.62	15
CB0 80	12	15	D2 258	9 9.39	18 .2	CB086	3	6	D2305	99.62	12 .5
CB0 80	15	18	D2 259	9 8.83	16 .5	CB086	6	9	D2306	99.38	13 .3
CB0 80	18	21	D2 260	9 9.12	17	CB086	9	12	D2307	99.17	14 .5
CB0 81	3	6	D2 262	9 9.07	16 .8	CB086	12	15	D2308	99.29	12 .8
CB0 81	6	9	D2 263	9 9.68	18 .6	CB087	3	6	D2311	99.36	14 .1
CB0 82	3	6	D2 270	9 9.07	15 .5	CB087	6	9	D2312	99.45	19 .5
CB0 82	6	9	D2 271	9 8.55	18	CB088	3	6	D2315	99.54	19 .2
CB0 82	9	12	D2 272	9 8.96	18 .9	CB088	6	9	D2316	99.5	18 .3
CB0 82	12	15	D2 273	9 9.31	18 .4	CB093	3	6	D2334	99.63	15 .5
CB0 82	15	18	D2 274	9 9.06	17 .6	CB093	6	9	D2335	99.69	18 .6
CB0 83	3	6	D2 278	9 9.28	17 .6	CB093	9	12	D2336	99.82	17 .4
CB0 83	6	9	D2 279	9 9.43	19	CB093	12	15	D2337	99.89	20 .7
CB0 83	9	12	D2 280	9 8.66	22 .3	CB094	6	9	D2341	99.56	17
CB0 83	12	15	D2 281	9 9.23	18 .2	CB094	9	12	D2342	99.81	18
CB0 83	15	18	D2 282	9 9.11	20	CB094	12	15	D2343	99.94	22 .3
CB0 83	18	21	D2 283	9 9.65	21	CB095	3	6	D2348	99.39	16 .4
CB0 84	6	9	D2 287	9 9.79	19 .3	CB095	6	9	D2349	99.78	20 .6
CB0 84	9	12	D2 288	9 9.23	21 .2	CB095	9	12	D2350	99.63	18 .8
CB0 84	12	15	D2 289	9 8.97	16 .1	CB095	12	15	D2351	99.54	19 .7
CB0 84	15	18	D2 290	9 9.31	14 .8	CB096	6	9	D2356	99.21	21 .4
CB0 85	6	9	D2 297	9 9.05	17	CB096	9	12	D2357	99.01	17 .8

IHCR testing procedure

• Samples were inspe c ted by IHCR and three surface sam p les (D2153, D2167, D21 7 3) were ex c luded from t he testwor k due to exc e ssive topso i l mixed wit h the silica

• 7kg taken from the o ther 101 dr i ll samples a s listed in th e bulk samp l e table

• Total sa m ple used f o r process testwork was a pproximat e ly 700kg

• Mix and homogenis e the bulk sample and re m ove a 50k g sample

• Remove a 500g hea d sample fro m 50kg sam p le and characterise for o versize (+2 . 0mm, +1.0 m m), slimes ( ‐ 45µm) and heavy mineral (+2.85sg)

• • Submit s ample of heavy mineral , light miner a l and slime s for XRF an a lyses

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [47 x 111] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

Fig 3 . Bulk sample c h aracterisation tables

		Wt(g)	Wt(g)		Wt %	Wt %	TiO2	TiO2	TiO2	Fe2O3	Fe2O3		SiO2	SiO2	Al2O3	Al2O3	Cr2O3	Cr2O3		MgO	MgO	MnO	MnO	ZrO2	ZrO2		P2O5	P2O5	U XRF	U XRF		Th XRF	Th XRF
							%			%			%		%		%			%		%		%			%		ppm			ppm
+2.85sg		1.3			0.19		31.1 0			14.40			26.20		16.20		0.20			1.29		0.66		3.69			0.07		38			32
‐2.85sg		692.2			99.81		0.03			0.03			99.70		0.03		0.00			0.00		0.00		0.02			0.00		21			0
Sand		693.5			100.00		0.09			0.06			99.56		0.06		0.00			0.00		0.00		0.03			0.00		21			0
Slim es(‐45µm)					3 .01		0.61		0.29					0.39		0.01		0.0 3			0.01		0.05		0.01			0.00			0.00
											9 7.80

• Represe n tative sub‐ s ample take n from the b ulk sample f or sighter t e st work on M ineral Tec h nologies M G 12 spiral se p arator ope r ating at 2.5 t ph and 35 % solids

• • Represe n tative proc e ss samples taken from t he MG12 s p iral and submitted for X RF analyses

Fig 4 . Test results f o r Mineral Technologies MG1 2 spiral process

									Assay	Assay			Distribution	Distribution	Distribution	Distribution
Stream		We	t Weight	Po ur off Weight	Dry Weight		Wt %		TiO2	Fe2O3		SiO2	TiO 2		Fe2O3	SiO2
									%	%		%	%		%	%
Con centarate			0 .43	0.29	0.21		3.58		1.11	0.47		97.5	6	0 .7	53.1	3.5
Mid dlings			1.28	1.09	0.83		13.91		0.05	0.03		99.7	1	0 .4	12.8	13.9
Ta	i ls		1 4.22	6.42	4.94		82.51		0.02	0.01		99.9	2	8 .9	34.1	82.6
To	t al Combined We ight		1 5.92	7.79	5.98		100.00		0.07	0.03		99.78	10	0 .0	100.0	100.0
		Approx	8 0% Solids	6.23
									Assay					Distribution
	Stream	Wet Weight		Pou r off Weight	Dry Weight		Wt %		T iO2	Fe2O3		SiO2	TiO 2		Fe2O3	SiO2
									%	%		%	%		%	%
Con centarate		0 .71		0.53	0.36		6.25		0.84	0.36		98.3	67 .9		64.4	6.1
Mid dlings		1 .61		1.38	1.04		18.20		0.04	0.02		100.0	9. 6		11.6	18.2
Tai ls		1 4.47		5.67	4.33		75.55		0.02	0.01		100.0	22 .4		24.1	75.6
Tot al Combined We ight		1 6.79		7.58	5.73		100.00		0.08	0.03		99.9	100 .0		100.0	100.0
		Approx8 0% Solids		6.06

• Process b ulk materi a l over MG1 2 spiral sepa r ator to pro d uce a conc e ntrate, mid d lings and t a ilings

• • Represe n tative proc e ss samples taken from t he MG12 s p iral and submitted for X RF analyses

Fig 5 . Process test r e sults for MG1 2 spiral separat o r (silica product highlighted)

MG12	W t	Wt %	TiO2 %	Fe 2O3	SiO2		Al2O3	Cr 2O3	MgO		MnO	Z rO2	Z rO2	P2O5		U XRF	Th XRF	Th XRF
				%	%		%	%	%		%		%	%		ppm		p pm
Con c	2. 14	3.5	1.39	0 .57	97.3		0.44	0 .01	0.05		0.03		0 .23	0.01		0		0
Mid	5. 01	8.2	0.06	0 .05	99.4		0.12	0 .00	0.02		0.00		0 .00	0.00		0		0
Tail (Prod)	53 .94	88.3	0.03	0 .02	99.9		0.07	0 .00	0.01		0.00		0 .00	0.01		0		0
Fee d	61 .09	100.0	0.08	0 .04	99.7		0.08	0 .00	0.01		0.00		0 .01	0.01		0		0

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [47 x 111] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

Testing Outcomes

• One sta g e of Mineral Technologies MG12 sp i ral will pro d uce a high quality (99.9 % SiO2) silic a product wi t h a recover y of 88% fro m the Nob P o int Prospe c t resource area at Cape Bedford

• • The bul k sample tes t work also d emonstrate d that the p r ocessing pl a nt will be r e latively sim p le due to negligible oversize, m inimal hea v y mineral ( 0 .19%), low level of slim e s (3%), and v ery good r e moval of h e avy mineral o n spiral se p arators.

Next Steps ‐ Mining Scoping Study Expectations

• Mining i s expected t o be a simpl e operation d ue to the s m all amoun t of overbur d en which c a n easily be remove d , and the resource mat e rial is free digging sand d une above the water t a ble

• • An initial mining op e ration with a nnual prod u ction of 30 0 ,000 to 50 0 ,000 tonne s of high gra d e silica pro d uct is envisaged, depen d ent on the d iscussions w ith potenti a l customers and the lik e ly initial market penetr a tion for the p roject

• • The Nob Point resource will initi a lly be developed as a long‐life oper a tion allowi n g explorati o n to expand further n orth and w e st in EPM1 7 795, with t h e objective of identifying additional silica and h e avy mineral resourc e s.

Mr M cIntyre ad d ed: “With t h e support o f the traditi o nal owners and potentially low min i ng and pro c essing costs, Cap e Bedford is l ooking extr e mely attra c tive as a so u rce of near‐term cashfl o w for Diatr e me. The ti m ing is right a nd with conditions looking posi t ive we are c onfident of d eveloping C ape Bedfor d for the be n efit of all st a keholders, adding to the gr o wing antici p ated value o f our flags h ip Cyclone Z ircon Project and other p rojects.”

Neil McIntyre Greg Starr Chief Executive O fficer Chairman Cont a ct – Mr Neil McIntyre ‐ Ph – 0 7 33972222 Web s ite ‐ diatreme. c om.au E‐ma i l ‐ manager@ d iatreme.com. a u

Forward looking statements: Thi s document ma y contain forwa r d looking state m ents. Forwar d looking state m ents are often, but not alway s , identified by the use of words such a s “seek”, “indi c ate”, “target”, “ a nticipate”, “for e cast”, “believe ” , “plan”, “estim a te”, “expect” a n d “intend” and state m ents that an e v ent or result “ m ay”, “will”, “sh o uld”, “could” or “might” occur o r be achieved a nd other simil a r expressions. Indications of, a nd inter p retations on, future expected e xploration results or technical o utcomes, pro d uction, earning s , financial pos i tion and perfor m ance are also forward-looking stat e ments. The fo r ward-looking s t atements in thi s presentation a re based on c u rrent interpret a tions, expectat i ons, estimates,

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

----- Start of picture text -----

rd-looking stat e
----- End of picture text -----

==> picture [55 x 111] intentionally omitted <==

----- Start of picture text -----

ments. The fo
----- End of picture text -----

==> picture [55 x 111] intentionally omitted <==

----- Start of picture text -----

ward-looking s
----- End of picture text -----

==> picture [47 x 111] intentionally omitted <==

----- Start of picture text -----

atements in thi
----- End of picture text -----

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

assu m ptions, foreca s ts and projecti o ns about Diatr e me, Diatreme’ s projects and a ssets and the industry in whic h it operates as well as other f a ctors that m anagement believes to be rel e vant and reas o nable in the ci r cumstances at the date that s u ch statements a re made. The forward-lookin g state m ents are subj e ct to technical, business, economic, competit i ve, political an d social uncerta i nties and conti n gencies and m ay involve kno w n and u nknown risks a n d uncertaintie s . The forward - looking statem e nts may prove to be incorrect. Many known a nd unknown f a ctors could ca u se actual events or res u lts to differ materially from the estimated or a n ticipated even t s or results expressed or impli e d by any forw a rd-looking state m ents. All forw a rd-looking statements made i n this presentat i on are qualifie d by the foregoi n g cautionary s t atements.

Disclaimer: Diatre m e and its relat e d bodies corporate, any of the i r directors, offi c ers, employee s , agents or co n tractors do not make any repre s entation or wa r ranty (either e x press or implied) as to the ac c uracy, correctness, completeness, adequacy, reliability or lik e lihood of fulfil m ent of any f o rward-looking s tatement, or a n y events or re s ults expressed or implied in a n y forward looking statement, e xcept to the extent required b y law. Diatr e me and its rel a ted bodies cor p orate and eac h of their respe c tive directors, o fficers, employ e es, agents an d contractors di s claims, to the maxi m um extent per m itted by law, a ll liability and r e sponsibility for any direct or indirect loss or d a mage which m ay be suffered by any person (including because of fault or neglig e nce or otherwise) through us e or reliance on anything conta i ned in or omitt e d from this presentation. Oth e r than as re q uired by law a n d the ASX Listing Rules, Diat r eme disclaims a ny duty to up d ate forward looking statement s to reflect new developments.

About Cape Bedford

The C ape Bedfo r d EPM1779 5 is located a pproximat e ly 200km n o rth of Cairn s in North Q u eensland, a nd covers t h e extent of a large Quaternary sand dune f ield, part of which is currently being mined by C a pe Flattery Silica Mines Pty Ltd (CFSM), a w h olly owned s ubsidiary o f Mitsubishi Corporation. Cape Flatt e ry has oper a ted since 1 9 67 and is t h e world's largest s i lica sand mining operation.

The C ape Bedfo r d/Cape Flat t ery region o f north Queensland is d o minated b y an extensi v e Quaterna r y sand mas s and dun e field that s t retches inl a nd from the present co a st for approximately 10 k m and exte n ds 50km fr o m north to south.

Hist o rical explor a tion has fo c used on th e Cape Flatt e ry area, wit h in the Mini n g Leases of CFSM, but reconnaissa n ce expl o ration has b een carried out over th e entire dune field in th e late 1960's and again i n the early 1 9 80's. This expl o ration confirmed the p r esence of b o th silica sa n d and heav y mineral sa n ds, and Dia t reme inten d s to build on the exis t ing data an d initially tar g et those ar e as (e.g. No b Point) where prospective silica san d dunes hav e been iden t ified and access is re a dily available.

Foll o wing the si g ning in 201 7 of a Conduct and Com p ensation A g reement and a Cultural Heritage Ag r eement with the trad i tional own e rs, Hope Vale Congress, Diatreme h a s worked cl o sely with Hope Vale Co n gress to m a ximise the eco n omic benef i ts for the lo c al community.

In A u gust 2018, D iatreme defined a mai d en Inferred Mineral Resource for th e project’s N ob Point Sil i ca Sand Pro s pect loca t ed in the s o uthern area of the tene m ent (refer A SX announ c ement rele a sed 13 Aug u st 2018).

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [47 x 111] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [54 x 61] intentionally omitted <==

==> picture [55 x 61] intentionally omitted <==

==> picture [17 x 122] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [54 x 62] intentionally omitted <==

==> picture [55 x 62] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [54 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [11 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [54 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [11 x 77] intentionally omitted <==

==> picture [119 x 382] intentionally omitted <==

----- Start of picture text -----

Nob P oint
Reso u rce
----- End of picture text -----

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [54 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [54 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 78] intentionally omitted <==

==> picture [55 x 78] intentionally omitted <==

==> picture [55 x 78] intentionally omitted <==

==> picture [54 x 78] intentionally omitted <==

==> picture [55 x 78] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [54 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [54 x 77] intentionally omitted <==

==> picture [55 x 77] intentionally omitted <==

==> picture [26 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [55 x 111] intentionally omitted <==

==> picture [47 x 111] intentionally omitted <==