Diatreme Resources : Discovers 2nd Major High-Grade Silica Deposit

ASX
ANNOUNCEMENT
only
10 January 2022
use	Diatreme Discovers 2nd Major Regional High-Grade Silica Deposit
• Maiden Inferred Mineral Resource confirmed for northern tenement area (Si 2 North Project), with major
	new high-grade silica sand deposit containing an estimated 53 million tonnes @ 99.32% silica (SiO2)
personal	• New discovery includes high purity deep drilling results, significant intersections include 42m @ 99.39%
SiO2 (PLT099) and 30m @ 99.62% SiO2 (PLT090)
• Resource spans approximately 305 hectares in proximity to existing export infrastructure at Cape Flattery
quality silica
	Port within a total tenement area of 480 sq km
	• Open dune extensions in all directions with further 2021 drilling results pending and drilling continuing in
	early 2022
	• New resource adds to Diatreme's existing Galalar Silica Project estimated total JORC Mineral Resource of
	75 Mt, highlighting the potential for multiple high quality silica Projects amid strong demand for premium

Emerging silica sands explorer and high purity silica producer, Diatreme Resources Limited (ASX:DRX) (the Company) has achieved a new milestone, with the discovery of a second high-gradesilica sand resource within the northern area of the Cape Bedford (EPM17795) exploration tenement (Si 2 North Project).

ForDiatreme's CEO Neil McIntyre said: "2022 has started on an extremely bright note for Diatreme with this further new discovery showing the benefits of our exploration efforts. We look forward to achieving further new milestones in the year ahead for the benefit of all stakeholders, including First Nations and other local communities."

A new maiden Inferred Mineral Resource has been estimated by independent experts Ausrocks Pty Ltd (refer attached summary report) for the Company's Si 2 North Project, comprising 53.2 million tonnes @ 99.32% SiO2. This high-grade silica sand , subject to further mineralogical testing should be suitable for high-end glass manufacturing

onlywithin the automotive, electronics and photovoltaic (solar panel) sectors and is currently in strong demand in the Asia-Pacific region.

The new discovery immediately abuts the mining leases of the world's largest silica sand mine at Cape Flattery in Far N rth Queensland, with potential for access to existing export infrastructure.

Diatreme's CEO, Neil McIntyre, said the results showed the potential for a second important new high purity silica usesand mine that could generate valuable new jobs and investment for Far North Queensland.

"Our Galalar Silica Project in the southern section of our tenement is advancing through its permitting and approvals process and remains our immediate development priority, however this new maiden inferred resource in the northern section of our exploration tenement of approx. 53 million tonnes shows Diatreme has the potential for multiple operations within its extraordinarily prospective tenement area.

personalThe Si2 North Project discovery is exceptional given its size and proximity to existing export infrastructure at Cape Fl ttery and serves to highlight the Company's potential over time to have multiple mining operations and genuinely

has the potential to become a world class producer of high purity silica product of significant scale , volume and capacity."

Given the nature of the resource and its proximity to existing infrastructure, including the Cape Flattery port operations (State owned - Ports North) the Company is conducting preliminary investigations for lodgement of a mining lease application (MLA) covering the northern section of the tenement to facilitate the "fast tracking" of a second major high purity silica operation.

Maiden Inferred Resource

A drilling program was undertaken in November 2021, with 47 vacuum drillholes for a total of 1,055.6m used to

	define this maiden Inferred Mineral Resource Estimate in accordance with the JORC Code (2012).
For
	Table 1: Maiden Inferred Resource Estimate - Si 2 North Project, December 2021
		JORC						SiO2			Fe2O3			TiO2			Al2O3			LOI			Silica			Density			Cut-off
		Resource			Silica Sand (Mt)													Sand					Grade
						(%)			(%)			(%)			(%)			(%)					(t/m3)
		Category																(Mm3)					SiO2 (%)
		Inferred		53		99.32	0.12	0.16	0.08	0.15			33	1.6	98.5

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onlyNote: Under the JORC Code, 2012 Edition an Indicated Mineral Resource is that part of a Mineral Resource for which quantity,

grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to support mine planning a d evaluation of the deposit's economic viability. An Inferred Mineral Resource has a lower level of confidence than an Indicated or Measured Mineral Resource.

Mineral Resource Exploration - Si 2 North Project

The Si 2 North Project is located in Far North Queensland, approximately 53km north of Cooktown. The Project is adjacent to the southwest corner of the Cape Flattery Silica Mines (CFSM) Mining Lease. CFSM has been in operation ince 1967 and is Queensland's largest producer of world class silica and the highest production of silica sand of any

mine in the world.

The Project is located at the northern end of the Cape Flattery/Cape Bedford dune field complex within the

use

Exploration Permit for Minerals (EPM) 17795. EPM 17795 is an extensive EPM comprising 147 continuous subblocks

(approximately 480km2) covering the majority of the Cape Flattery-Cape Bedford Quaternary dunefield complex.

In

ddition to the Si 2 North Project, Diatreme has identified a number of significant silica sand Exploration Target

Areas throughout the wider EPM 17795 (ASX announcement DRX 18/8/2021) and is progressing the Galalar Silica

Sa

d Project at Cape Bedford (ASX announcement DRX 09/11/2021). The northern part of the EPM abuts the

re

owned Cape Flattery Silica Mines (CFSM).

N

te: For further details concerning the Inferred Mineral Resource, refer to the attached excerpts in this

announcement from the report independently prepared by Ausrocks Pty Ltd.

Significant intersections from the exploration drilling and testing program included two extraordinarily deep high

purity (SiO2) holes:

Collar

Hole

Sand

Hole ID

Easting

Northing

Resource

SiO2

Fe2O3

TiO2

Al2O3

LOI

personal

RL

Depth

Thickness

m

m

m

m

m

Average %

PLT099

306933.43

8341010.46

69.22

42.00

42.00

99.39

0.087

0.10

0.078

0.186

PLT090

307997.52

8340690.96

67.73

30.00

30.00

99.62

0.056

0.09

0.067

0.133

For

Note: Both holes marked in red on exploration drilling map - refer Fig 1, below.

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onlyFig 1 - Si 2 North Project - Resource Area and Drill Holes

usepersonal

ForN te: In Fig 1 - Red shaded area is the Cape Flattery Silica (Mitsubishi) mining lease boundary.

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onlyFig 2 - Si 2 North Project - Resource Area and Regional Exploration

usepersonal

ForN te: In Fig 2 - The yellow dot points are exploration drilling and hand auguring sample points - as detailed in "Other Regional Exploration" section attached below.

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