DEEP YELLOW LIMITED — Capital/Financing Update 2012

Apr 9, 2012

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ASX Announcement

ASX: DYL

10 April 2012

MS7 DEPOSIT DRILLING RESULTS

KEY POINTS

• The results of XRF Fusion chemical assays on samples from intercepts made at MS7 have been received.

• The best result, from hole ALAR966, was an outstanding 58 metres at 535 ppm U3O8 from a depth of 117 metres.

• This was achieved in an apparent offset in the footwall contact, adding to previous similar wide intersections such as ALAR866 which returned 33 metres at 2,207 ppm U3O8 from 33 metres and 69 metres at 1,229 ppm U3O8 from 92 metres.

• Infill resource drilling is continuing at MS7 and at Ongolo as is reconnaissance drilling southwest from Ongolo towards MS7.

Advanced stage uranium explorer Deep Yellow Limited (ASX: DYL ) is pleased to announce XRF Fusion chemical assay results from resource drilling conducted by its wholly owned subsidiary Reptile Uranium Namibia (Pty) Ltd (RUN) from the MS7 deposit area (Figure 1). The results are from the 2012 Drill Programme which commenced in mid-January.

“This is another great result from our exploration programme in Namibia” said Deep Yellow Managing Director Greg Cochran, adding: “these wide high grade intercepts to depth at MS7 give further confirmation of the deposit’s potential.”

The MS7 drill programme is designed to increase the size and confidence of the resource and test for lateral and depth extensions to previously identified high grade zones. Selected results include:

• ALAR966 58 metres at 535 U3O8 from 117 metres

• ALAR967 4 metres at 411 ppm U3O8 from 126 metres

MS7 Deposit

Fusion XRF chemical assays have been received for the ‘infill’ drill programme in the north-east of the MS7 deposit. The results provide continuity between ‘resource blocks’ outlined in last year’s drill programme and should serve to improve the JORC classification (Figure 2). The latest available chemical assay results from MS7 are given in Table 1 overleaf.

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: info@deepyellow.com.au / Website: www.deepyellow.com.au

MS7 Deposit Drilling Results

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Figure 1: 2012 Drill Programme – Ongolo-MS7 Area Showing New Discovery Area

Table 1: Fusion XRF Chemical Assay Results – April 2012

Hl	E	N Ai TD Di	Depth (m) Interval SS Fusion cU3O8 (ppm) GTM From To (m)
oe	m	m z p
ALAR953	49535 0 49522 49522	7481600 180 247 -60	182 185 3 433 1,299
ALAR966		7481425 180 400 -60	117 175 58 535 31,030
ALAR967		7481475 180 400 -60	126 130 4 411 1,644
and			187 188 1 431 431
ALAR968	49522	7481525 180 400 -60	260 262 2 769 1,538
and			271 274 3 479 1,437
ALAR1082	49380 0	7481500 180 205 -60	108 110 2 418 836

Notes: TD is total depth of hole; U3O8 is a chemical assay by Fusion XRF. GTM is grade thickness metre and is calculated by multiplying the interval (m) x U3O8 (ppm)

Values of approximately 400 ppm U3O8 are deemed to be significant by DYL in this environment and therefore lower average values are not reported .

The wide intercept in ALAR966 of 58 metres at 535ppm U3O8 is one of several such intersections associated with an apparent off-set in the footwall marble contact as seen in the aeromagnetic data (Figure 3). Previously announced intersections in the ‘off-set area’ include:

• ALAR781 48 metres at 418ppm U3O8 from 49 metres

• ALAR885 9 metres at 427ppm U3O8 from 17 metres

• ALAR886 33 metres at 2,207ppm U3O8 from 33 metres and 69 metres at 1,229ppm U3O8 from 92 metres.

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MS7 Deposit Drilling Results

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Figure 2: Location Map showing MS7 Infill and Reconnaissance Drilling

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Figure 3: MS7 Aeromagnetic image showing apparent footwall offset and wide intersections

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MS7 Deposit Drilling Results

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Figure 4: RC Drilling MS7 Hole ALAR966 – February 2012

Ends

For further information regarding this announcement, contact:

Greg Cochran Managing Director Media Annette Ellis / Greg Galton

Phone: +61 8 9286 6999 Email: info@deepyellow.com.au Phone: +61 8 6314 6302 Email: aellis@purplecom.com.au ggalton@purplecom.com.au

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

About Deep Yellow Limited

Deep Yellow Limited is an ASX-listed, advanced stage uranium exploration company with extensive operations in the southern African nation of Namibia and in Australia. It also has a listing on the Namibian Stock Exchange.

Deep Yellow’s primary focus is in Namibia where its operations are conducted by its 100% owned subsidiary Reptile Uranium Namibia (Pty) Ltd (RUN). Its flagship is the Omahola Project currently under Pre-Feasibility Study with concurrent resource drill-outs on the high grade Ongolo Alaskite – MS7 trend. It is also evaluating a stand-alone project for its Tubas-TRS uranium deposit utilising physical beneficiation techniques it successfully tested in 2011.

Additionally, its Shiyela Magnetite deposit, located just 45 kilometres from the Namibian port of Walvis Bay, is the subject of ongoing evaluation.

In Australia the Company owns the Napperby Uranium Project and numerous exploration tenements in the Northern Territory and in the Mount Isa District in Queensland.

Compliance Statement

The information in this report that relates to Exploration Results and to 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.

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