Diatreme Resources Limited announced results from specialist bulk sample testing that demonstrate the project's ability to produce a premium grade product suitable for high-tech applications, potentially capable of attracting premium prices. The results were obtained from a specialist industry recognized silica testing facility in China, which analyzed a bulk raw sand sample of 350kg provided from the North Queensland project. This follows Diatreme's earlier announcement of a maiden Inferred Mineral Resource for the project's Nob Point Prospect, comprising an estimated 21.6 million tonnes at > 99% purity silica and previous bulk sample process test work results confirming the project is capable of producing high quality silica sand at 99.9% SiO2. The latest data will be incorporated into the resource definition and mine development planning process currently being undertaken by independent consultants Ausrocks Pty Ltd, with Diatreme targeting an increased Mineral Resource estimate for Galalar during the current quarter. Notably, the testing showed the project is capable of meeting the exacting specifications of high end manufacturers/processors, including grain size being within a 30,120 mesh size range (1,225,600 micron) and iron (Fe203) content below 100ppm (parts per million). This low iron level is in high demand by manufactureers with limited available producers of significant volumes and gives the end product glass the high levels of transparency required for production of high efficiency photovoltaic panels, ultra clear glass, electrical and electronic grade silicon micro powder and other products. Excellent recovery rates were obtained for the final product of approximately 79% from raw sand feed. The test results also showed the potential to obtain secondary, high value heavy mineral sands (HMS) by product streams during mining, adding to the project's value. The Galalar project is also located in close proximity to fast growing Asian markets, with the global silica sand market seen reaching nearly US$10 billion in annual revenues by 2022, with a compound annual average growth rate of 7.2% (source: IMARC Group). Testing was undertaken in December 2018 by Bengbu Design & Research Institute for Glass Industry Co. Ltd. in Bengbu City, Anhui Province, China (Chinese State owned Glass Lab). The sample sent to the lab consisted of a 350kg of untreated raw drilling samples extracted from 19 drill holes across the project area. Key summary findings (excerpt from lab report) include: After crude sand goes through beneficiation process of "scrubbing, classification and gravity separation (three times through spirals) and medium intensity magnetic separation. Concentrate was obtained with Fe2O3 content in the range of 100 - 80ppm, indexes of which are as follows: product yield (recovery) from sample: 78.8279.40%; chemical composition: SiO299.6699.77% Al2O30.0400.058% Fe2O30.00860.0088% TiO2 0.0130.015%; - particle size: > 0.71mm=0%0.710.125mm=99.13%< 0.125mm=0.87%. The above silica concentrate would be expected to be widely used in photovoltaic rolled glass, ultra clear glass, high end containers, electrical and electronic grade silicon micro powder, etc. Tailings produced in the course of the experiment incclude[d] graded fine sand, gravity separated tailing and magnetic separated tailing. In order to realize comprehensive utilization of resources and increase added value of the products, gravity separated tailing can be further enriched to recover Ti, Zr and other minerals; magnetic separated tailing can also be collected to recover Fe and TiTi minerals; graded fine sand can be expected to be used to prepare glas fibre sand, reducing both environmental impacts and processing costs. The process flow adopted in the experiment is reliable and can be used as a reference for the design of plant construction and industrial production Next steps Diatreme is engaging with various regulatory and permitting agencies to design and scope the level of studies required and the permitting process, with the aim off generating a realistic project implementation timeline moving forward. This is being unddertaken concurrently with further resource definition work and engagement with potential silica product off takers to design suitable product specifications, pricing and delivery methodology. Meanwhile, results from recent drilling during the latter part of 2018 are expected later in January 2019. The drilling program was undertaken with Diatreme's drilll rig and crew, comprising 30 aircore drilled holes for some 700m of total drilling, with the aim of increasing confidence in the resource. An extensive sampling program was undertaken at 1m drilling intervals, resulting in some 700 samples being obtained for further specialist testing. Diatreme expects mining to be a relatively simple operation due to the small amount of overburden. An initial operation with annual production of approximately 300,000-500,000 tonnes of high grade silica product is envisaged, subject to further commercial studies, discussions with potential customers and regulatory approvals.