DEEP YELLOW LIMITED — AGM Information 2019

Nov 24, 2019

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ASX Announcement

ASX & NSX: DYL / OTCQX: DYLLF

25 November 2019

2019 AGM CORPORATE PRESENTATION

We enclose the Corporate Presentation presented at today’s Annual General Meeting.

Yours faithfully

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JOHN BORSHOFF

Managing Director/CEO Deep Yellow Limited

For further information, contact: John Borshoff Phone: +61 8 9286 6999 Managing Director/CEO Email: john.borshoff@deepyellow.com.au

For further information on the Company and its projects, please visit the website at: www.deepyellow.com.au

Unit 17, Spectrum Building, 100-104 Railway Road Subiaco WA 6008 / PO Box 1770 Subiaco WA 6904 Tel : 61 8 9286 6999 / ABN 97 006 391 948 Email: info@deepyellow.com.au / Website: www.deepyellow.com.au

Building a Tier-One Uranium Producer AGM Shareholder Update

John Borshoff Managing Director / CEO 25 November 2019

Disclaimer and Competent Person Statement

This document has been prepared by Deep Yellow Limited (Deep Yellow, DYL or the Company) in connection with providing an overview to interested analysts and investors.

This presentation is being provided for the sole purpose of providing information to enable recipients to review the business activities of Deep Yellow. This presentation is thus by its nature limited in scope and is not intended to provide all available information regarding Deep Yellow. This presentation is not intended as an offer, invitation, solicitation, or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating Deep Yellow.

Deep Yellow and its affiliates, subsidiaries, directors, agents, officers, advisers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability or responsibility for any statement made in, or omitted from, this presentation. Deep Yellow accepts no obligation to correct or update anything in thispresentation.

No responsibility or liability is accepted and any and all responsibility and liability is expressly disclaimed by Deep Yellow and its affiliates, subsidiaries, directors, agents, officers, advisers or employees for any errors, misstatements, misrepresentations in or omissions from this presentation.

Any statements, estimates, forecasts or projections with respect to the future performance of Deep Yellow and/or its subsidiaries contained in this presentation are based on subjective assumptions made by Deep Yellow’s management and about circumstances and events that have not yet taken place. Such statements, estimates, forecasts and projections involve significant elements of subjective judgement and analysis which, whilst reasonably formulated, cannot be guaranteed to occur. Accordingly, no representations are made by Deep Yellow or its affiliates, subsidiaries, directors, officers, agents, advisers or employees as to the accuracy of such information; such statements, estimates, forecasts and projections should not be relied upon as indicative of future value or as a guaranteed of value or future results; and there can be no assurance that the projected results will be achieved.

Prospective investors should make their own independent evaluation of an investment in Deep Yellow.

Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001 (Cth). This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. This presentation does not take into account the objectives, financial situation or needs of any person, and independent personal advice should be obtained.

This presentation and its contents have been made available in confidence and may not be reproduced, or disclosed to third parties or made public in any way without the express written permission of Deep Yellow.

The information in this presentation in so far as it relates to exploration results and Mineral Resource Estimates is based on and fairly represents information and supporting documentation prepared or reviewed by Mr Martin Hirsch, a Competent Person who is a Member of the Institute of Materials, Mining and Metallurgy (IMMM) in the UK. Mr Hirsch, who is currently the Manager Resources and Pre-Development for Deep Yellow’s subsidiary, Reptile Mineral Resources and Exploration (Pty) Ltd, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ Mr Hirsch consents to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

Mineral Resource Estimates disclosed in this presentation and compiled under the JORC Code 2004 have not yet been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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The Growing Demand for Nuclear Energy

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Affordable and Safe Clean Energy

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Nuclear energy is the cheapest source of long-term baseload energy.

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In France, nuclear power generates 75% of electricity.

• Reducing electricity costs by 15% in comparison to EU average.

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One fifth of electricity produced in the US is from nuclear energy.

• Delivering at half the cost that Australians pay for electricity.

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Nuclear energy is one of the safest and cleanest sources of electricity.

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Importantly, nuclear power generation technologies continue to evolve.

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New nuclear technologies will continue to provide efficient and safe ways of producing clean electricity at lower costs.

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Significant Growth in Nuclear Demand Expected

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Globally 20 new reactors scheduled to be connected by 2020.

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Increasing demand supported by aggressive reactor construction in China.

• Considerable growth in 15 years from 3 operating reactors to 45 today.

• Aggressive growth to continue with ~8-10+ reactors scheduled for construction annually from 2020 – 2030.

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If China adopted the Paris target of limiting global warming to 1.5 ° C, 25% of energy consumption will require nuclear energy.

• Between 65,000tU - 90,000tU required annually by 2050.

• This requirement (even at the lower limit) is equivalent to the total current global nuclear fleet consumption.

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India, Russia and Middle East also undertaking ambitious nuclear reactor construction programmes from 2020 – 2040.

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Growing acknowledgement Solar and Wind as renewables have severe limitations able to supply electricity on average for only 6 hours per 24 hour day/night cycle.

• International targets for climate control require zero-emission nuclear capability in partnership to provide reliable baseload power, lower prices and grid stability.

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Uranium Price Primed for Movement

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Source: WNA 2019 Reference & Upper Cases
NUCLEAR DEMAND STRONG – URANIUM PRICE LAG CLEAR
Date/Event Operable Under Planned Proposed U308 Prevailing
Reactors Construction Required U308 Price
Feb 2011 443 62 156 322 80kt $73/lb
(pre-Fukushima) Strong Price
Disconnect
October 2019 444 55 110 330 77kt $24.85/lb
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Source: World Nuclear Association

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Current State of the Uranium Sector

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State of Uranium Sector – Ripe with Opportunity

Market Cap July ′18 vs Oct ′19 - excluding Government entities and multi-nationals

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• Total Market Cap of 52 Listed Uranium Companies - US$7.3B vs US$5.8B • Note: excludes Kazatomprom US$3.5B.

20% (5% down in Oct)

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Market Cap of 7 Listed Uranium Producers US$5.37B vs US$4.2B 22%

• 75% of sector market cap.

Top 20 Listed Uranium Companies Market Cap (July ′18 vs Oct′19)	Top 20 Listed Uranium Companies Market Cap (July ′18 vs Oct′19)	Top 20 Listed Uranium Companies Market Cap (July ′18 vs Oct′19)	Top 20 Listed Uranium Companies Market Cap (July ′18 vs Oct′19)
Country	July 2018 US$	Oct 2019 US$	%
Canada (9)	5.8B (Cameco 4.3B)	4.5B (Cameco 3.7B)	(-22%)
United States (4)	576M	496M	(-14%)
Australia (6)	649M	406M	(-37%)
Total	7.02B	5.5B	(-22%)

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Spot U price July ′18 (US$23/lb) & Oct ′19 (US$24.5/lb) - increase of 8%

• Equities at this stage clearly disconnected with uranium price

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Market Cap 20 Largest U Co.’s: 2010-2019 Excluding Kazatomprom

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US$25/lb
(Oct ‘19)
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Recalibration of the Uranium Sector

Massive industry attrition post Fukushima

In 2011 ~420 uranium companies

Today 62 companies world-wide:

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10 government associated or multi-national uranium producers.

7 listed uranium producers (Cameco, ERA included) _ERA phasing out._

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• 18 potential developers (emerging producers) with 30% diversifying into battery metals to survive and some having threatened projects due to geopolitical or technical reasons.

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11%
Listed
Producers
16%
Government &
Multinationals 46%
Explorers
27%
Potential
Developers
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Breakdown of current uranium companies

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27 explorers with limited to non-existent resources, mostly looking to diversify or move out of uranium entirely.

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Differentiated enabling a Unique Strategy

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Corporate Overview

Board	Capital Structure – Oct 2019
Rudolf Brunovs Chairman	Shares on Issue 237.7M
John Borshoff MD/CEO*	Market Cap (@ A$0.30/share) A$71M
Gillian Swaby Director*	Net Cash ~ A$15.5M
Christophe Urtel Director	Major Shareholders
Mervyn Greene Director	Sprott Group Affiliate 12.22%
Justin Reid Director*	Collines Investments 8.28%
Mark Pitts CFO/Co Sec	Paradice Investment Management 7.74%
	Board/Management 7.90%

Senior Technical Team

Perth

Ed Becker Head of Exploration Darryl Butcher Head of Projects Dr Andy Wilde* Chief Geologist Namibia

Dr Katrin Kärner Exploration Manager Martin Hirsch Mgr Resources/Pre-Devel Dr J C Corbin Senior Geologist-Specialist

* Ex-Paladin

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Share Price movement over 12 months

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A Standout Uranium Team

A highly-credentialed team (majority ex-Paladin) with proven success in the uranium sector, highlighted by:

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Strong project development, operational and corporate capabilities.

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Highly experienced team who have successfully worked together in the past covering technical, innovation, marketing, finance, corporate, governance, legal and sustainability areas.

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– Built and operated two innovative conventional uranium operations only company to accomplish this in period 1982 to 2019 other than the latest build by CGN with its Husab operation.

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– Team grew Paladin Energy from a market capitalisation of $2M to $4Bn pre-Fukushima.

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Past 12 Months

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Namibian projects continue to deliver and support the stated calcrete Mineral Resource target of 100Mlb to 150Mlb.

• Highly significant uranium mineralisation identified in previously unknown Channels 1, 2, 4 and 5.

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Overall Palaeochannel Resources upgraded by 48% in past 12 months.

• March 2019 - resources increased to 104.2Mlb @ 295ppm eU3O8.

• –

• November 2019 further increase to 110.5Mlb @ 290ppm eU3O8 (more than doubled since November 2016).

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JOGMEC continue to fund Nova Joint Venture.

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Initiated M&A activities

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Upgrade to OTCQX trading platform in USA.

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– – Funding support raised A$11.3M June/July 2019 cash at end September $15.75M.

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Continuing low uranium price supports sector consolidation opportunity.

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Prepared for Growth

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Executing a unique and differentiated dual-pillar growth strategy.

• PILLAR ONE : Advancing the development of the Namibian project portfolio.

• PILLAR TWO: Establish a multi-project global uranium platform through targeted M&A.

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Strong balance sheet, with continued support from equity markets.

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• Ongoing exploration has tripled the Reptile Project resource base in just 3 years. • At an extremely low discovery cost of $0.10/lb.

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Accelerated studies underway at Reptile.

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• Current uranium fundamentals provide an excellent platform for inorganic growth. • M&A activity in progress.

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Nuclear power is integral to achieving clean energy targets, with demand growing. Fully-funded to execute the strategy over the next 12 months.

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Advancing the Development of the Namibian Project Portfolio

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Namibian Project Portfolio

Overall Namibian Resources = 155.6Mlb U308 grading 319ppm

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• Reptile Projects – 860km[2] (100%)

• Palaeochannel/calcrete targets (Langer Heinrich style) – 92.5Mlb U ~~3~~ 0 ~~8~~ /303ppm and Aussinanis - 18Mlb U ~~3~~ 0 ~~8~~ /303ppm

• Basement/alaskite targets (Rössing/Husab style) – 45.1Mlb U ~~3~~ 0 ~~8~~ /420ppm.

Nova JV Project: 599km[2] 65%)

• Farm-in by Japanese partner JOGMEC spending A$4.5M over 4 years to earn 39.5%

Exploration Target*

• Targeting 120Mlb – 150Mlb U308 in palaeochannels.

• In the grade range 300-500ppm eU308.

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• The potential quantity and grade of the exploration target is conceptual in nature, and that there has been insufficient additional exploration to estimate an expanded Mineral Resource at the date of this presentation and whilst additional exploration is planned, it is uncertain if this will result in the estimation of an expanded Mineral Resource. Following a complete review and evaluation of calcrete associated mineralisation already identified on the Company’s tenements (Refer ASX Announcement 19 January 2017), the Company has a greater understanding of the stratigraphy of the palaeochannels which host mineralisation. This work provided renewed confidence that mineralisation is likely to be identified in targeted but contiguous areas on our tenements. Targeted tonnage/grades are based on results and understanding from work carried out over past 14 years in this region.. The exploration targets are regarded as valid being confirmed by the exploration carried out since then. Work is continuing forwards achieving the resource targets as stated

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Low-Cost Value Creation at Reptile

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Over the past 3 years management has developed the Reptile Project at extremely low costs ~$6m spend (discovery cost of $0.10/lb)

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Reptile Accelerated Development

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Commencement of accelerated studies to evaluate project economics:

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• Scoping Study - finalised by Q4 2019; and

• Pre-Feasibility Study planned to commence in Q1 2020.

Budget for FY2020 increased by 30% to $2.75M to support:

• economic and technical studies; and

• increased exploration drilling budget by 100%).

In-house technical team expanded to undertake cost effective project evaluation process.

Scoping Study: 30km Operational Footprint Radius

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Establish a Multi-Project Global Uranium Platform

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Well-Funded for Inorganic Growth

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Ongoing evaluation of M&A throughout 2019/20.

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Focused on acquiring 2-3 projects to establish a pipeline for development from 2023 – 2030.

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Currently assessing 6-8 targeted projects.

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The opportunity to act is now due to the depressed nature of the sector.

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First acquisition expected during 1H 2020.

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Effective execution will deliver a 5-10Mlb low cost, multi-platform global uranium portfolio.

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Key Takeaways

• Proven and experienced management team with an exceptional track record of success.

• Executing the strategy to deliver a 5-10Mlb low cost, multi-platform global uranium portfolio.

• Deep Yellow aims to provide uranium supply security and certainty into a growing market.

• Reptile Resource has tripled in 3 years at a discovery cost of $0.10/lb.

• Several advanced M&A targets assessed with first acquisition expected in 1H 2020.

• Strong capital position and continued support from the equity market.

• Outlook for uranium is extremely positive, with nuclear power integral to meeting clean energy targets.

• China leading the way with aggressive reactor construction plans, with India, Russia and Middle East following.

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THANK YOU

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