Diatreme Resources Ltd. has made progress in its efforts to expand resources at its Northern Silica Project (NSP) in far north Queensland. Positive results from infill and step out drilling at the Si2 deposit in 2022 confirmed the continuity and quality of silica sand in the dune system. Recent and pending results in the Point Lookout Track (PLT) area will build on previous exploration efforts to enable a north-west extension of the Si2 resource in coming months.

The results have improved confidence in the NSP, raising the prospect of a significant upgrade to the mineral resource including quantum and confidence. Diatreme is currently conducting a detailed scoping study, including economics and logistics of the Si2 dune system (Northern Silica Project), which is due in late First Quarter 2023. Engagement with Traditional Owners and other members of the local community has continued to be at the forefront of Diatreme's exploration campaigns, with the Diatreme working closely with Native Title representatives to ensure maximum community benefits while minimising environmental impacts.

In August 2022, Diatreme resumed exploration at the NSP with the goal of defining an extension to the Si2 resource. The company used low-impact access methods, including a small footprint track-mounted, air core drilling rig and hand augers, to drill along parallel dune ridge lines spaced 200-400m apart. The depth of the holes was generally determined by the water table, which forms the base for resource models and aligns with proposed mine extraction criteria.

The program also included auger sampling for infill sampling. Results from the first 76 of 82 holes in the current drilling program showed sand of a similar quality to the established Si2 resource, with the remaining results expected in early March. Exploration has extended the known high purity silica sand dune system to a length of 6.8km and width of up to 2.4km, covering an area of over 1,200 ha.

Once the assay results for the current phase of drilling are complete, along with the inputs from the recent LiDAR survey, the confidence and size in the Si2 resource is expected to increase. Casuarina Drilling Advance: The northern end of the Casuarina dune system is currently mined by Cape Flattery Silica Mines (CFSM), Diatreme Resources holds balance of this dune system. The current mining lease boundary was established over 50 years ago when ML 2806 was applied for in 1970.Preliminary hand auger drilling at the southern end of the dune system has produced average SiO2 results similar to those of the high purity silica sand within the Si2 dune system.

Drilling will continue into early 2023 during the wet season. In line with Diatreme's environmental protocols, hand auguring is initially utilised to establish sand quality and continuity whilst minimising site disturbance, with access gained by walking to sites. Initial environmental surveys for air core drilling in the area are planned for 2023.

Historic drilling at the northern end of the target along the current CFSM lease boundary found sand dune thicknesses ranging from 15m to 48m, with an average of 28m. Drilling in 2023 will aim to confirm sand quality, dune thickness, and continuity across the Casuarina dune. The PLT dune system consists of a series of smaller, older dunes to the northwest of the Si2 dune system that have been remobilised into erratic dunes by more recent wind activity.

Assay results from the final round of step- out drilling showed an average depth of 3.5m in 16 hand auger holes. The remaining results for 89 hand auger holes are expected in early March and will be used to model the dunes and link the PLT area to the Si2 resource estimates. Further drilling is planned for PLT in the coming months to link the Western Dune Ridges and expand northwest along the dominant dunes.

The Hopevale Project comprises four (4) exploration tenures covering 60km from Nob Point to Point Lookout, including Cape Bedford and Cape Flattery. Cooktown and Hope Vale provide a base for regional support for exploration efforts throughout the project area. EPM 17795 "Cape Bedford" was recently renewed by Queensland's Department of Resources for a five-year term.

Diatreme has been conducting extensive exploration programs and is required to relinquish 50% of the EPM by June 2026 under the renewal conditions (standard terms). The company is using this ongoing exploration to assess the various dune systems and identify priority targets for resource evaluation. In July 2022, Diatreme submitted two Mining Lease Applications and four Infrastructure MLAs covering the Si2 and Casuarina dune systems. The company is committed to following its ESG principles and aligning with Australia's 2022 Critical Minerals Strategy, which recognises the importance of silica in reducing global carbon emissions.

The exploration reported follows the recent establishment of a new, high-grade silica sand resource at Si2 North, bringing Diatreme 's total resource to nearly 200 million tonnes of high- grade silica across the Si2 North and Galalar Silica Sand Project (GSSP).