DEEP YELLOW LIMITED — Capital/Financing Update 2009

Nov 18, 2009

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ASX Announcement ASX Code: DYL

Mount Isa Drilling Update

19 November 2009

ISA NORTH PROJECT

XRF chemical assays (cU3O8) from RC drilling at the Queens Gift Prospect continue to confirm and extend uranium mineralisation intersected during the 2007/2008 programmes. Importantly in recent drilling a ‘new’ southern mineralised zone has been delineated. Significant intercepts include:

 38 metre at 426 ppm U3O8 from 197 metre

Downhole gamma results (eU3O8) from RC drilling on the Slance NW Prospect has returned significant mineralisation, namely:

28 metre at 1,074 ppm eU3O8 from 107 metre

• 15 metre at 661 ppm eU3O8 from 155 metre

ISA WEST PROJECT

The second phase of RC drilling at Isa West is now complete. Of significance are the final deep intercepts at ± 200 metre vertical depth at the Thanksgiving and Bambino Prospects.

Thanksgiving Prospect intersections include:

• 18 metre at 454 ppm U3O8 from 246 metre

Bambino Prospect intersections include:

• 15 metre at 509 ppm U3O8 from 194 metre

Level 1 329 Hay Street Subiaco WA 6008 PO Box 1770 Subiaco WA 6904 Tel : 61 8 9286 6999 Fax : 61 8 9286 6969 ABN 97 006 391 948 Email: admin@deepyellow.com.au Website: www.deepyellow.com.au

Mount Isa Drilling Update

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The Mount Isa district 2009 RC programme currently totals 155 holes for 22,138 metre drilled and 6,850 samples collected. RC drilling programmes have been concluded at Isa West and Queens Gift. RC drilling at Slance NW has commenced and the Leichhardt JV programme is expected to commence in November and finish before mid December. Diamond drilling at Queens Gift and Ewen is also expected to be completed at the same time weather permitting.

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Figure 1: Mount Isa District Prospects and Tenements

ISA NORTH PROJECT

EPM 15070 – Prospector

15 RC holes (QGRC081-095) have been completed since the release of the September Quarterly Report (ASX 28 October 2009).

The 2009 drill programme has focussed on the drill out of the Northern and Central mineralised zones which included the discovery of a deep eastern zone ( 17 metre at 619 ppm U3O8 from 278 metre, previously reported ). Three of the five planned DC holes will be drilled as diamond tails off existing RC holes targeting the previously undrilled (owing to rugged terrain) eastern contact of the Central Zone.

Further mapping and drilling of the Southern Zone resulted in the delineation of a new mineralised zone which is developing grade and strike length at depth with deep hole QGRC092 returning 38 metre at 426 ppm U3O8 from 197 metre.

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Mount Isa Drilling Update

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Table 1 – Queens Gift RC Drill Intercepts

Dillhl	MGA Zone 54	MGA Zone 54	MGA Zone 54	Ai	Di	TD	Depth (m)	Depth (m)	Interval (m)	cU3O8 (ppm)
roe	mE		mN	z	p	(m)	From	To
QGRC081	319430	7781400		90	-60	180	99	101	2	295
QGRC082	319464	7781347		90	-60	192	74	78	4	460
QGRC083	319414	7781350		90	-60	252	182	190	8	161
							227	231	4	211
QGRC084	319506	7781324		120	-60	210	143	150	7	561
QGRC085	319576	7781023		90	-60	156	63	142	79	127
						incl	63	88	25	283
QGRC086	319600	7780993		90	-60	150	61	133	72	201
						incl	70	89	19	350
						incl	119	133	14	350
QGRC087	319666	7781000		270	-60	84	14	69	55	244
						incl	34	69	35	346
						incl	51	59	8	674
QGRC088	319669	7780975		270	-60	90	65	67	2	200
QGRC089	319575	7780993		90	-60	198	98	172	74	244
						incl	109	116	7	379
QGRC090	319598	7780975		90	-60	144	84	113	29	150
						incl	103	113	10	196
QGRC092	319520	7781005		90	-60	282	197	235	38	426
						incl	197	224	27	543
						incl	197	202	5	1,030
QGRC093	319383	7781528		90	-60	90	4	14	10	221
QGRC094	319641	7780950		0	-60	174	66	97	31	176
						incl	66	72	6	338
						incl	67	68	1	850
						incl	95	97	2	610
QGRC095	319640	7780925		0	-60	252	94	236	142	220
						incl	103	156	53	271
						incl	172	178	6	457
						incl	191	194	3	610
						incl	205	208	3	750

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Mount Isa Drilling Update

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EPM 14916 Ewen

RC drilling of the Slance NW Prospect has commenced, primarily following up deep intersections returned during the last week of the 2008 field season. Initial results are very encouraging as given below in Table 2.

On completion of drilling at Slance NW (1,600 metre) the rig will move to the Slance NE Prospect.

Table 2 – Slance NW RC Drill Intercepts

Drillhole	MGA Zone 54	MGA Zone 54	MGA Zone 54	Azi	Dip	TD (m)	Depth (m)	Depth (m)	Interval (m)	eU3O8 (ppm)
	mE		mN				From	To
SLRC036	352176	7798323		270	-60	120	-	-	-	NSA
SLRC037	352201	7798326		270	-60	108	-	-	-	NSA
SLRC038	352251	7798324		270	-60-	168	49	61	12	297
							101	116	15	661
SLRC039	352275	7798326		270	-60	192	107	135	28	1,074
							155	165	10	665

NSA – No significant assays

ISA WEST PROJECT

Thanksgiving Prospect

Three RC holes (TGRC050-052) were completed during the period for a total of 828 metre with 158 samples collected for chemical assay (Table 3 below).

Table 3 – Thanksgiving RC Dill Intercepts

Drillhole	MGA	Zone 54	Azi	Dip	TD (m)	Depth (m)	Depth (m)	Interval (m)	cU3O8 (ppm)
	mE	mN				From	To
TGRC050	336694	7712499	66	-75	240	182	222	40	213
					Inc	190	195	5	494
						210	222	12	327
TGRC051	336677	7712555	66	-80	288	231	264	33	369
					Inc	231	237	6	578
						246	264	18	454
TGRC052	336698	7712450	66	-80	300	195	200	5	234
						238	243	5	232
						259	261	2	560

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Mount Isa Drilling Update

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Bambino Prospect

Four RC holes (BBRC054-057) were completed during the period for a total of 900 metres with 298 samples collected for chemical assay (Table 4 below).

Table 4 – Bambino RC Drill Intercepts

	MGA Zone 54	MGA Zone 54			TD	Depth (m)	Depth (m)	Interval (m)	cU3O8 (ppm)
Drillhole	mE	mN	Azi	Dip	(m)	From	To
BBRC054	335459	7712509	90	-65	240	95	110	15	327
						190	216	26	368
					inc	194	209	15	509
BBRC055	335418	7712360	66	-65	330	269	295	26	224
					inc	283	288	5	432
BBRC056	335504	7712509	90	-60	138	102	113	11	283
BBRC057	335472	7712543	90	-60	192	41	55	14	295
						155	166	11	236

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Dr Leon Pretorius Managing Director

Further Information: Mr Martin Kavanagh Executive Director (61 8) 9286 6999

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Leon Pretorius a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Pretorius 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’. Dr Pretorius consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Where eU3O8 and/or cU3O8 is reported it relates to values attained from radiometrically logging boreholes with Auslog equipment using an A675 slimline gamma ray tool. All probes are calibrated either at the Pelindaba Calibration facility in South Africa or at the Adelaide Calibration facility in South Australia.

Deep Yellow Limited is an Australian-based pure uranium exploration company with extensive advanced operations in Namibia and in Australia.

In Namibia the Company’s principal development focus is through its 100% owned subsidiary Reptile Uranium Namibia P/L at the mid to high grade INCA primary uraniferous magnetite and secondary Red Sand projects and the extensive secondary calcrete deposits contained in the Tumas-Oryx-Tubas palaeochannel and fluviatile sheetwash systems.

In Australia the Company is focused on resource delineation of mid to high grade discoveries in the Mt Isa district - Queensland, these include the Queens Gift, Conquest, Slance, Eldorado, Thanksgiving, Bambino and Turpentine Prospects.

A pipeline of other projects and discoveries in both countries are continually being examined and there is extensive exploration potential for new, additional uranium discoveries in both Namibia and Australia.

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