DEEP YELLOW LIMITED — Capital/Financing Update 2010

Apr 28, 2010

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ASX Announcement

ASX Code: DYL

29 April 2010

DEEP YELLOW DISCOVERS HIGH-GRADE URANIUM MINERALISATION IN EXTENSION OF ‘ALASKITE ALLEY’ IN NAMIBIA

• High grade alaskite hosted uranium mineralisation discovered at Tubas Alaskite project area in Namibia

• Discovery hole ALAR13 returned chemical assays of:

• 89 metres at 400 ppm cU3O8 from 128 metres, including:

  • 11 metres at 710 ppm cU3O8 from 182 metres, and

  • 16 metres at 600 ppm cU3O8 from 199 metres

• 102 metres continuous mineralisation to end of hole at 223 metres

• ‘Alaskite Alley’ hosts a number of uranium projects including Rio Tinto’s Rossing Uranium Mine and Extract Resources’ Rossing South and Ida Dome Projects as well as others.

Deep Yellow Limited (ASX Code: DYL ) is pleased to announce early success from reconnaissance drilling for alaskite hosted uranium mineralisation at its Tubas Alaskite project area in Namibia, held by DYL’s wholly-owned subsidiary Reptile Uranium Namibia (Pty) Ltd (RUN) .

ALAR13 is a reverse circulation (RC) drill hole on the second line of reconnaissance drilling within the north-eastern part of RUN’s EPL 3496. These reconnaissance lines are designed to test for extensions of alaskite hosted mineralisation trending southwest from Extract Resources’ Ida Dome project area.

Drillhole	mE	mN	Azi	Dip	TD	From	To	Interval (m)	cU3O8 (ppm)	GTM
ALAR13	499490	7482690	315	-60	223	128	217	89	400	35,600
including						182	193	11	710	7,810
and						199	215	16	600	9,600

Note: TD is total depth of hole; cU3O8 is chemical assay U3O8; GTM is grade thickness metre and is calculated by multiplying the interval (m) x cU3O8 (ppm)

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

DEEP YELLOW DISCOVERS HIGH-GRADE URANIUM MINERALISATION IN EXTENSION OF ‘ALASKITE ALLEY’ IN NAMIBIA

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Figure 1 shows the location of the Tubas Alaskite project and discovery hole ALAR13 within EPL 3496 relative to RUN’s total exploration portfolio. Figure 2 shows the location of ALAR13 over an aeromagnetic background image and identifies the likely extension of alaskite relative to Extract Resources’ Ida Dome deposits. Figure 3 is a photograph of a drill rig at the Tubas Alaskite project area.

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Figure 1: Discovery Hole ALAR13 and Tubas Alaskite Project location within RUN’S Tenements

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DEEP YELLOW DISCOVERS HIGH-GRADE URANIUM MINERALISATION IN EXTENSION OF ‘ALASKITE ALLEY’ IN NAMIBIA

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Figure 2: Regional aeromagnetic image showing location of Tubas Alaskite Project relative to known uranium mineralisation

As with other exploration projects, it is usual DYL/RUN practice to first establish any possible disequilibrium issues before quoting equivalent uranium (i.e. down-hole gamma probe) values (as eU3O8). This ensures the in-field gamma probe results accurately reflect the more time consuming chemical assay values. As part of this exercise, representative RC chip samples have been sent to ANSTO in Sydney for disequilibrium studies. Results are expected in 6-8 weeks.

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DEEP YELLOW DISCOVERS HIGH-GRADE URANIUM MINERALISATION IN EXTENSION OF ‘ALASKITE ALLEY’ IN NAMIBIA

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RUN also submitted all samples from hole ALAR13 to Scientific Services (SS) laboratory in Cape Town South Africa to cross-check RUN’s laboratory results and also for thorium analyses which cannot be provided by RUN’s laboratory. Results from SS confirm the following two points:

1. RUN’s average U3O8 over the total 102 metre mineralised section was 354 ppm versus the 370 ppm by SS, and

2. Average thorium (ThO2) is 47 ppm with a high value of 125 ppm which negates thorium as a major source of radioactivity during down-hole logging.

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Figure 3: RC Drilling at Tubas Alaskite Project

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DEEP YELLOW DISCOVERS HIGH-GRADE URANIUM MINERALISATION IN EXTENSION OF ‘ALASKITE ALLEY’ IN NAMIBIA

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The graph below indicates 99.6% correlation between the SS laboratory’s results versus RUN’s for the 102 samples from ALAR13, and demonstrates the integrity of RUN’s XRF analytical results.

RUN VS SCIENTIFIC SERVICES CHEMICAL ASSAYS

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----- Start of picture text -----

1400
1200
1000
y = 1.0445x
R² = 0.9965
800
600
400
200
0
0 200 400 600 800 1000 1200 1400
U3O8 Concentration - ppm (RUN)
Concentration - ppm (SS)
8
O
3
U
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Reconnaissance drilling will continue in the Tubas Alaskite project area to determine the potential and extent of the newly discovered mineralised zone prior to detail grid drilling.

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DEEP YELLOW DISCOVERS HIGH-GRADE URANIUM MINERALISATION IN EXTENSION OF ‘ALASKITE ALLEY’ IN NAMIBIA

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For further information regarding this announcement, contact:

Patrick Mutz Managing Director

DEEP YELLOW LIMITED Ph: +61 8 9286 6999

Email: info@deepyellow.com.au

Further information relating to the Company and its various exploration projects can be found on the Company’s website at www.deepyellow.com.au.

Compliance Statement

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 are 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 wholly 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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