DIATREME RESOURCES LIMITED — Capital/Financing Update 2022

Apr 28, 2022

29 April 2022

Metallica moves towards 51% ownership of the Clermont JV

Metallica Minerals Ltd (ASX: MLM) is pleased to announce that it has met the expenditure commitment (undertaken in accordance with the MOU with Diatreme Resources Ltd, ASX: DRX) to earn 25% of the Clermont project (refer ASX Release 5 August 2021 “Diatreme agrees farm-out on Clermont Copper/Gold Project”). In addition, the Company has made the decision to move to the second stage of the earn in phase of the agreement and increase Metallica’s share to 51% of the project through a further $700,000 spend on exploration activity at the Clermont Project prior to 27 April 2023.

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Figure 1 Clermont JV EPM 1796 and Exploration Targets

Metallica has drilled two diamond holes at Clermont, RDD019 and RDD020 totalling 1,030.4m. The two holes were drilled to test a possible copper gold exploration target withing the Rosevale Porphyry Corridor (see Figure 1 above). Drill hole parameters are included as Table 1 and the drill hole locations are presented in Figure 2.

Porphyry style alteration was intersected in both drill holes, with potassic and phyllic alteration observed in both holes and with the intensity of alteration increasing with depth. Sulphide mineralisation in the form of iron pyrite, chalcopyrite and molybdenum was also observed in the core removed from both holes. The majority of the mineralisation appears confined to fracture surfaces but quartz pyrite bearing veins (with possible chalcopyrite) were observed and fine disseminations of pyrite – chalcopyrite and molybdenum were also observed in the rock matrix. Total sulphide content of the holes from visual logging varies between 0% in the top 50m of the holes to a maximum of 2% to 5% sulphides.

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Samples from both RDD019 and RDD020 have been sent for analysis to the ALS Laboratory in Brisbane, with assay results expected to be received back this quarter.

During the next phase of work on this project, MLM intends to undertake petrological analysis on selected sections of the core and carry out a multi-element geochemical analysis to attempt to identify where in the models of the porphyry system the current drill holes are intersecting. A detailed close spaced ground magnetic survey is also planned in the future to better define the extent of the magnetic low feature and to assist in future drill hole planning.

Table 1. Clermont JV (EPM 17968) – Drill Hole Parameters

Hole Number	Easting	Northing	RL	Dip	Azimuth	Depth
RDD019	550,967	7,471,548	321	-90	000	530.4
RDD020	551,250	7,471,559	320	-60	270	500.0

Figure 2. Drill Hole Locations with respect to the Airborne Magnetic data – EPM17968 Clermont This announcement has been approved in accordance with the Company’s published continuous disclosure policy and has been approved by the Board.

For further information, please contact:

Theo Psaros Executive Chairman +61 (7) 3249 3000

Mr Scott Waddell CFO & Company Secretary +61 (7) 3249 3000

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Figure 3. Core logging and Sample preparation area – Clermont

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Competent Person Statement

Mr Smith is the owner and sole Director of PSGS Pty Ltd and is contracted to Metallica Minerals as their Exploration Manager. Mr Smith confirms there is no potential for a conflict of interest in acting as the Competent Person. Mr Smith has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Smith consents to the inclusion of this information in the form and context in which it appears in this release/report.

Figure 4 . UDR1200 drilling on RDD019, EPM 17968, Clermont

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	• Drilling was completed using a truck mounted UDR1200, • The samples were collected every 1m. The samples are half core samples, obtained by cutting the HQ core in half using a core saw which was • The half core sample was collected on site and dispatched to the laboratory for crushing and pulverising prior to assay • Samples were submitted to ALS Laboratories in Townsville and Brisbane for assay for gold Au-AA25 method and for multi-element analysis ME- MS61 • Laboratory reference material was used for QA/QC purposes, MLM did not submit and standards or blanks with these samples due to the exploratorynature of the drillingcampaign
Drilling techniques	• Drill type and details.	➢ The drilling technique used was diamond drilling, which was undertaken by Eagle Drilling using a truck mounted UDR1200. The diamond core drilled was HQ (triple tube) from surface to EOH. • The holes were terminated at a pre-determined depth based on geophysical modelling
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	• Visual assessment and logging of sample recovery and sample quality. • Diamond drilling is low disturbance and low impact, minimising drill hole wall impact and contamination. • No sample bias occurred between sample recovery and grade. • The consistent weight of the samples indicates that recovery of between 90 to 100% was achieved, lower recoveries (less than 80%) were recorded in the top 1m of each hole due to the presence of organic matter and topsoil

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Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. • The total length and percentage of the relevant intersections logged	• Geological logging of the total hole by field geologist, with retention of half core in the core boxes to allow for further review of the core at a later date • The total hole was logged logging includes qualitative descriptions of colour, grain size, alteration style, observations on any mineralisation present and estimates of the sulphide content in the core • Magnetic susceptibility readings were recorded in addition to the core logging and core orientation work was undertaken on core from the angled hole (RDD020) • Photographs of the core in each core tray was taken so a digital visual record of each of the drill holes was obtained • Logging has been captured through field drill log sheets and transferred through to an excel spreadsheet which is then transferred to a central database and storage prior to being provided to a third-party consultant (AusRocks) for resource estimation.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Half core samples were submitted for analysis. • The HQ core was sampled at 1m intervals, the core was cut in half, with one half dispatched for assay and the remaining half core kept in the core boxes and stored at a core storage facility near to where the drilling was undertaken • The half core sample was placed in a numbered calico bag, prior to being placed in a poly-weave sack for dispatch to the laboratory • Each sample weighed between 3.05 to 4.0Kg. • The Competent Person considers the sample preparation to be appropriate for drilling of this nature • . • The Competent Person considers the sample sizes to be appropriate for the type of material being sampled. Appropriate sample sizes and pulverisation of the entire sample support good representivity

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Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) andprecision have been established.	• Drilling samples were submitted to ALS Brisbane, where they were dried, weighed and split. • Analysis was undertaken by ALS Brisbane, samples were assayed for gold using a Firs Assay method with and AAS finish (AA25) • Multi=element analysis was undertaken utilising the ME-MS61 method • QC procedures - No duplicate samples were collected in the field
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• No results are being released and therefore the intersects have not been verified • No holes have been twinned • All data captured and stored in both hard copy and electronic format. No assay data will be adjusted • All digital data is verified by the Competent Person. • No adjustments were made to assaydata.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• All holes initially located using handheld GPS with an accuracy of 5m for X, Y. • UTM coordinates, Zone 55L, GDA94 datum. • There is no detailed topography for the prospect, and all RL’s were recorded using a handheld GPS, the topography of the area is flat

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Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• The two drill holes are exploration holes, and were targeted to test a large magnetic low feature which has a modelled depth to top of 300 to 500m below surface • Drill spacing, and distribution is sufficient to allow valid interpretation of geological. • There has been no sample compositing.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	➢ No sample results are being reported, however the sampling was unbiased, the target is a large porphyry system and the mineralisation is not confined to large structures or specific horizons ➢ These are the first two holes drilled into the targeted magnetic low, and the relationship between any mineralisation and the orientation of key structures is currently unknown
Sample security	• The measures taken to ensure sample security.	• Sample collection and transport from the field was undertaken by contractors working for Metallica, the samples were put into crates and delivered to ALS in Townsville by the contractors. ALS in Townsville, transhipped the samples to ALS in Brisbane due to a large backlog in Townsville.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No results are being reported in this release and therefore no audit of results has been undertaken

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The Clermont Porphyry copper – gold project is contained within EPM 17968 in Central Queensland, The tenement is currently held by Chalcophile Pty Ltd a 100% subsidiary of Diatreme Resources Ltd (DRX) • Metallica Minerals Ltd through its 100% held subsidiary, Touchstone Resources Pty Ltd is currently earning into the project, with the first earn in milestone being met, whereby MLM spends $300,000 to earn a 25% interest in the EPM. • MLM are managing the project during the earn in phase of the JV • The tenement is in good standing and there are no impediments to conduct exploration programs on the tenements.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• All current exploration programs are managed by Metallica Minerals
Geology	• Deposit type, geological setting, and style of mineralisation.	• The Clermont project is located in the Anakie Inlier in central Queensland. The Anakie Inlier is an elongate belt of metamorphic rocks and granitoids sited between the Permian Bowen Basin to the east and the Devonian to Carboniferous Drummond Basin in the west. The Anakie Inlier contains metasedimentary and metavolcanic rocks of Neoproterozoic to Cambrian age. These rocks have been intruded by Ordovician to Devonian age intrusives, some of which have porphyry characteristics.. • The style of mineralisation being targeted, is copper-gold- molybdenum porphyry mineralisation.

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Drill hole Information	• A summary of all information material to the understanding of the exploration results • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• A tabulation of the material drill holes is included in the body of this report as Table 1. The magnetic data used is from a widespread aeromagnetic survey which was flown at 400m line spacings. The geophysical data was modelled by RAMA geophysics
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	No exploration results are being reported
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).	• No assay results are being reported, due to the exploratory nature of this drilling program, no association between the orientation of the mineralisation with respect to the drill hole angle has been determined.

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Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• A map of the drill collar locations is incorporated with the main body of the report.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• All exploration results are reported in a balanced manner. All results are supported by clear and extensive diagrams and descriptions. No assays or other relevant information for interpreting the results have been omitted.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• All exploration results detailed in attached report.
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive	➢ Future work includes but is not limited to; ➢ A detailed ground magnetic survey, petrological analysis of the samples from RDD019 and RDD020, detailed analysis of the geochemical data when it comes to hand, drilling of at least two more holes at the prospect in the next 12 months

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