egolinews.com

Diatreme Resources Limited (DRX) is pleased to announce that it has completed a Placement of 8,823,525 ordinary fully paid shares (“Shares”) at 8.5 cents per share, raising $750,000, to sophisticated and professional investors, including existing major shareholders.

Funds will be applied generally as working capital toward the advancement of the Company’s heavy mineral and base metal projects. This will partially include the Cyclone Prefeasibility Study presently underway, together with the proposed co-funding from international industry groups of the Wanna Heavy Mineral Sands Project (encompassing the Cyclone Deposit).

The Placement was managed by Intersuisse Ltd, together with PhillipCapital Australia. Settlement and allotment of the new shares is expected to be finalized within the next seven days. The resulting issued capital of the Company once the new shares are allotted will be as follows: Description Securities on Issue Ordinary fully paid shares - listed 234,864,734 47 cent options expiring 30 June 2011 - unlisted 16,800,000 47 cent options expiring 31 July 2011 - unlisted 3,000,000

Leni Stanley Company Secretary.

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