Sydney, Sep 3, 2007 AEST (ABN Newswire) - Diatreme Resources Limited (ASX: DRX) is pleased to announce that it has added to its copper project holdings with the securing of a quality copper and base metal exploration project in the eastern part of South Australia.

The Anabama Copper Project, located 50km south-east of Manna Hill in eastern South Australia, comprises Exploration Licence No. 3548 and Exploration Licence Application No. 76/00. The tenements, held by Goldrap Pty Ltd and covering approximately 285 sq km, form part of the assets of "The Base Metals Exploration & Prospecting Project", a registered Managed Investment Scheme, under the management of Huntley Management Limited as Responsible Entity.

Under a tenement acquisition agreement entered into between the parties, Diatreme Resources Limited (DRX) has agreed to issue Huntley Custodians Limited, appointed custodian by Huntley Management Limited to hold the shares on behalf the project, ordinary shares in DRX to the value of $300 000. The issue price, and therefore the number of shares issued, will be based upon the average market price of DRX shares calculated over the five trading days in which sales are recorded before completion of the acquisition. Completion occurs when the exploration titles have been successfully transferred to Chalcophile Resources Pty Ltd, the copper focused wholly owned subsidiary of DRX.

The principal lithological unit of economic interest in the area is the Boucaut Volcanics which host base metal mineralisation at the Anabama, White Rock and Cronje Dam prospects. These prospects are all located within the Goldrap tenements being acquired.

Historical exploration by Placer Exploration Ltd in 1994 indicated (at that time) a sub-economic resource at the Anabama Prospect of 3.3 million tonnes @ 0.66% copper (using a 0.3% cut-off). More recently, Goldrap Pty Ltd conducted a limited IP survey and a short program of shallow drilling at the Anabama Prospect.

At the Anabama Prospect, DRX will conduct further exploration, including drilling, with the aim of increasing the tonnes and grade of the current inferred copper resource. The Company will also evaluate the potential of the other prospects and remaining tenement areas for further drill targets.

About Diatreme Resources Limited

Exploration of gold, diamonds and base metals in Australia.



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