DIATREME RESOURCES LIMITED — Capital/Financing Update 2018

Aug 5, 2018

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ASX ANNOUNCEMENT

6 August 2018

ROLLOVER O F CON V ERTIBL E NOTE

Diat r eme Resou r ces Limited (ASX: DRX) (“ Diatreme ” or “ Company ”) is pleas e d to advise i t has reach e d a highly satisfactory arra n gement wi t h the holde r of the con v ertible not e facility tha t was due for repaymen t on the 31[st] of July 2018 (“ maturity date ”).

The o riginal con v ertible not e commenced on the 30[t] [h] of July 201 5 (“ commencement date ”) and the k ey terms w e re:

• $3 milli o n total facili t y, drawn in lots of $50 0 ,000.

• Interest rate of 5.20 % per annu m payable b y half yearly i nstalments in arrears.

• • Term of 36 months f rom commencement da t e. • 50% ($1 . 5 million) t o be convert e d to ordina r y shares of Diatreme at $0.020 at m aturity date. • 50% ($1 . 5 million) t o be repaid by Diatreme a t maturity d ate.

(Note: original c o nvertible n o te facility w as fully dra w n by 2 May 2017).

The t erms of th e new (rollover) converti b le note facility are as follows:

• $1,500, 0 00 will be c onverted t o shares of D iatreme at $0.020 per share after the maturity date of 3 1 July 2018.

The Co m pany will s e ek shareholder approv a l for the issue of thes e shares at a specially convened G e neral Meeting. Timing for t his General Meeting wi l l be advise d as soon as p racticable b y the Comp a ny.

• All accr u ed interest , which tot a ls $372,29 9 as at 31 J uly 2018, shall be con v erted to o r dinary sha r es in Diatrem e at the pre v ailing share price at the date of act u al conversi o n.

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• The re m aining bala n ce of $1,5 0 0,000 shall be extende d from the maturity da t e for a fur t her period o f 24 months (“ new maturity date ”), with the remaining b a lance to b e repaid in f u ll at the n e w maturity date subject t o negotiati o n between t he parties, a nd

• Interest shall accrue at the rate o f 5.20% pe r annum pa y able quarte r ly in arrear s on the re m aining bala n ce of $1,500, 0 00.

The d irectors wi s h to thank t he converti b le noteholder for their c ontinued s u pport and t h e favourab l e extension ter m s provided t o the Comp a ny.

For f urther infor m ation:

Neil McIntyre G regory Sta r r CEO C hairman 07 3397 2222 0 7 3397 2222 manager@diatr e me.com.au m anager@diatreme.co m .au