ASX Announcement

28 August 2025

Proposed sale of Clermont Gold Project

• Value to be realised via the divestment of the non-core Clermont Gold Project to unlisted company Moonlight Resources Limited

• Moonlight targeting rapid Mineral Resource delineation from a number of drill-ready greenfield gold discoveries and expansive pipeline of additional proximal gold and copper targets

• Moonlight has an existing, large, tenement portfolio consisting of early-stage rare earth element and uranium targets

• Moonlight to issue to Diatreme ordinary shares and performance rights valued at $3.25M and pay $250,000 in cash as consideration

• On completion of IPO, Diatreme to become a significant shareholder in Moonlight with an initial interest between 17.1-19.9%

Silica sands developer and producer, Diatreme Resources Limited (ASX:DRX) has entered into an agreement to sell its Clermont gold exploration project in Queensland, Australia (“Clermont Gold Project”) to unlisted company, Moonlight Resources Limited (“Moonlight”).

The sale of the Clermont Gold Project to Moonlight will occur as part of Moonlight’s proposed ASX initial public offering (IPO). As consideration, Moonlight will issue to Diatreme ordinary shares and performance rights valued at A$3.25 million under the IPO prospectus and will also pay A$250,000 in cash. On completion of the IPO, Diatreme will be a significant shareholder in Moonlight and is expected to hold an initial interest of between 17.1% and 19.9%. In addition, Diatreme will have the right to appoint a nominee director to Moonlight’s board.

Moonlight currently holds exploration tenements for rare earths and uranium in the highly prospective MacDonnell Ranges in the Northern Territory, as part of its extensive, wholly-owned exploration portfolio across the Northern Territory, New South Wales, Queensland, and Western Australia, spanning a total of 5,204 sq km.

Diatreme's CEO, Neil McIntyre: “The Clermont asset is non-core to Diatreme as it remains focused on development of its extensive silica assets portfolio currently transitioning through final permitting and approvals. This transaction allows Diatreme to transition the Clermont tenements to a well credentialled exploration and development team whilst retaining an interest in its future development and value upside.”

Diatreme's silica portfolio granted Project Status recognition;

Key tenure renewals completed

• Queensland Government grants Project Status to all five of Diatreme’s Cape Flattery & Cape Beford EPMs in Far North Queensland

• EPM 25734 & EPM 27265 successfully renewed for an additional five years

• Award allows exploration tenure relinquishments to be aggregated across total tenement holdings

• Clear pathway now established to optimise configuration of Diatreme’s mining lease applications

• Diatreme’s tenement position covers approximately 75% of the Cape Bedford and Cape Flattery Dune Fields, positioning the Company for further growth of its low-iron, high-purity silica sand resource

• Further supports Federal Government major Project Status award

Silica sands developer and producer, Diatreme Resources Limited (ASX:DRX) advises that the Queensland Government’s Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development has granted Project Status (“Projectisation”) across all five of the Company’s exploration tenement areas (EPM’s) in the Cape Flattery and Cape Bedford region. The granting of this status is a key step in achieving the synergies of Diatreme’s overarching regional development strategy as it progresses towards being a long life of mine low-iron, high purity silica producer.

Diatreme’s CEO, Neil McIntyre commented: “The granting of Project Status, often referred to as 'Projectisation' and renewal of key exploration tenure represents a major milestone in our silica sand projects, sending a clear signal that we are progressing with purpose. Projectisation allows us greater flexibility and value retention when determining exploration tenement mandated drop offs.

“Diatreme has now cemented its dominant position in the world’s most significant silica sand province, and is well positioned to deliver long term value as we unlock the region’s full potential with a higher degree of flexibility and certainty.”

17 June 2025

Northern Silica Project awarded Major Project Status

• Diatreme’s Northern Silica Project awarded Major Project Status by the Australian Government, currently the only project in Queensland to hold this designation

• Major Projects Facilitation Agency will provide coordination and facilitation support for Federal Government approvals and support negotiations with relevant State Government agencies

• Environmental Impact Statement and approval applications currently underway pursuant to State and Federal regulatory processes, for key critical minerals project in Far North Qld.

Emerging silica sands developer and producer, Diatreme Resources Limited (ASX:DRX) has secured Major Project Status for its Northern Silica Project (NSP) through the Federal Government’s Major Projects Facilitation Agency (MPFA), a significant boost for the key critical minerals project. Following an extensive engagement process, the formal decision and project designation was received from the Honourable Tim Ayres, Minister for Industry and Innovation, with the NSP currently the only such project in Queensland to hold the designation.

Major Project Status is a significant milestone, recognising the NSP’s alignment with the development of Australia’s critical minerals sector in line with the Australian Critical Minerals Strategy. This acknowledges the opportunity for material regional economic growth for Far North Queensland, together with the complexity of the regulatory approvals required for the NSP at a national level.

Provision of Major Project Status allows Diatreme to access additional support from MPFA in coordinating and facilitating Federal Government approvals for the project. Principally, this consists of approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in relation to potential impacts to matters of national environmental significance (MNES). Diatreme is currently preparing an Environmental Impact Statement (EIS) for submission under the EPBC Act, seeking approval of the NSP as a controlled action.

Welcoming the decision, Diatreme’s CEO, Neil McIntyre commented: “The award of Major Project Status is an important recognition of the NSP’s strategic importance as both a world-class high purity silica resource, and its potential to directly contribute to the energy transition, specifically the globally important solar photovoltaic supply chain powering the clean energy revolution.

“The Major Project Status designation will assist us as we progress the NSP through the final permitting and development phases as we enter offtake negotiations and embark on assembling project financing together with our joint venture partner, global materials solutions provider Sibelco Asia Pacific.

“Creating a viable economic project that has clear community support and regional benefits whilst delivering strong returns for our shareholders has always been our goal and we are delighted by this Federal Government support at this key stage in the NSP’s development.”

Click here to read the announcement

Diatreme advances NSP’s EIS, port planning

• Draft EIS Terms of Reference for Diatreme’s Northern Silica Project progressing with Office of Coordinator General
• All EIS specialist studies contractors engaged and studies progressing on schedule
• Water sampling and background assessment programs continued uninterrupted throughout wet season
• Cape Flattery Port export infrastructure studies noted within EIS process.