PFS confirms NSP potential as new FNQ silica sand mine

• Phase 1 start-up delivers pre-tax NPV of $1.29b and IRR of 36%
• Phase 2 expansion potential with additional NPV of $1.13b and IRR of 46%
• High-purity silica sand for solar PV and specialty glass markets
• Joint venture with Sibelco Asia Pacific for market access and technical support

Diatreme Resources has completed a Pre-Feasibility Study (PFS) for its Northern Silica Project (NSP) in Far North Queensland, confirming its potential as a profitable, long-life, and low-cost silica sand mine. The Phase 1 start-up operation, producing 3 Mtpa over 25 years, is projected to deliver a pre-tax NPV of $1.29 billion and an IRR of 36%. An optional Phase 2 expansion to 5 Mtpa from Year 3 is expected to add a pre-tax NPV of $1.13 billion and an IRR of 46% with additional CAPEX of $38.5 million. The project's high-purity silica sand is suitable for the solar photovoltaic and specialty glass markets, with a joint venture with Sibelco Asia Pacific for market access and technical support. The project also aims to contribute to local economic development and employment, with a focus on Indigenous employment and local procurement.

Phase 1-only NPV: $1.29b, IRR: 36%, Phase 1 & 2 NPV: $2.42b, IRR: 46%

NSP is poised to become a significant player in the global silica sand market, with potential for expansion based on market demand and product pricing.