Ann: Share Purchase Plan, page-2

Use of Funds

Your company is determined to protect shareholder value and as such the funds raised from the
SPP will be applied only to our maximum value projects, comprising Cyclone, Cape Bedford and
Tick Hill, as well as essential working capital.
Diatreme has become a far leaner and fit for purpose organisation in recent times, having
substantially restructured our exploration portfolio and reduced administrative costs to reflect
changed market and industry conditions.
With the mining cycle now turning favourably again, now is the time for us to advance our key
projects, while maintaining a keen focus on maximising the value of shareholder funds.

SPP Details

We invite you to review the attached SPP document thoroughly in conjunction with publicly available
information relating to the Company which is available from the ASX and from the Company’s
website (www.diatreme.com.au).

Under the SPP Eligible Shareholders can subscribe for additional Shares, up to a maximum of
A$15,000 worth, without paying brokerage or stamp duty. If appropriate, the SPP may also provide
the opportunity for Eligible Shareholders to increase their holding into more than a marketable
parcel.

The total number of Shares on issue at 4 October 2017 is 951,732,679. The Offer document will be
dispatched on Monday, 9th October 2017 and will remain open until 5:00pm (Sydney time) on
Friday, 27th October 2017.

The Offer price is $0.013 (1.3 cents) per Share, representing an approximate 20 % discount to the
volume weighted average closing price for the Company’s shares over the five trading days
immediately prior to and including the Record Date.

Participation in the Offer is optional and is only open to Eligible Shareholders who are registered as
holders of shares in Diatreme Resources Limited at 7:00pm (Sydney time) on Tuesday, 3rd October
2017 (Record Date) and whose registered address is in Australia or New Zealand. The rights of
shareholders to participate under this SPP are not transferable.
Full details of the Offer and how to participate are contained within the attached SPP document.

Following our recent gains in market value, and with an improving outlook for the resource sector in
fiscal 2018, we are confident of securing maximum value from these funds for the benefit of all
shareholders.

On behalf of the Board, I recommend this SPP for your careful consideration and thank you again for
your continued support.

Yours sincerely
William Wang​

Non-executive Chairman