Diatreme Resources Limited following from an announcement has now further advanced the planned export pathway for its Galalar Silica Sand Project (GSSP), with the Company focused on minimizing marine environmental impacts and de-risking approval processes. Diatreme plans to progress an application for an alternate product delivery corridor, via a northern pipeline route, predominantly through its current exploration tenure area EPM 17795 for silica product delivery from the mine site to the designated port area of Cape Flattery. The proposed northern pipeline route ensures consistency with the current regulatory framework under the Sustainable Ports Development Act 2015 and Reef 2050 Plan surrounding marine development outside of designated or major port areas.

The revised project will further reduce marine environmental impacts, reduce marine fuel consumption and emissions from barges and potentially reduce transportation costs associated with product delivery to port (subject to final studies), for the benefit of project economics. Diatreme previously signed a Memorandum of Understanding (MOU) with government-owned corporation Far North Queensland Ports Corporation (Ports North), the relevant port authority for the Port of Cape Flattery, concerning planned silica exports from Diatreme's Northern Silica Project (NSP). The Company is working with Ports North to identify the best logistical solution for all stakeholders, as part of its extensive consultation with regulatory and permitting agencies, both State and Federal.

Recognising the extensive environmental, social and community impact studies already undertaken as part of the Galalar Draft EIS process to date, Diatreme is working with regulatory agencies to finalize the approval pathway for the revised project. This may provide additional opportunities for a more streamlined environmental authority (EA) process rather than a new or revised environmental impact statement (EIS) process. Given the compelling economic positives already identified by Diatreme in the alternate northern product delivery route directly through to Cape Flattery port, and to provide greater certainty in the Projects transition to development through the permitting and approvals process the Company has requested the withdrawal of MLA 100285 (an application) with the responsible regulator (Queensland's Department of Resources), which encompassed road access and marine infrastructure (barge ramp) to an area known as "Nob Point".

Immediate commencement of this process will allow the revised application to be lodged promptly. The next steps for the project will include the lodgment of a new Mining Lease (Infrastructure) application to facilitate the amended export corridor, adding to the recent lodgment of MLA's for the Northern Silica Development. The company is progressing further new drilling and exploration programs at the NSP, with the aim of increasing Diatreme's combined high-grade silica sand resource.

Diatreme now plans the following activities to further progress the development of its silica sand projects: Review and undertake lodgment of revised MLA (Infrastructure) for the northern transport option to facilitate a low disturbance, small diameter (300-500mm) pipeline; MLA (infrastructure) lodgment anticipated within first quarter 2023; Finalise discussions with State and Federal regulatory agencies to facilitate the GSSP project approval pathway for the revised project; Revision of any required Galalar PFS or DFS studies; Further rapid advancement of the NSP, in parallel with Galalar's development. The latest advances by Diatreme follow the announcement of a strategic partnership with global material solutions company, Sibelco. Diatreme is now well placed to advance its silica sand projects, with the benefit of Sibelco's international networks and its technical, processing and marketing expertise.