DEEP YELLOW LIMITED — Capital/Financing Update 2017

Sep 26, 2017

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ASX Announcement

ASX: DYL

27 September 2017

MAIDEN TUMAS 3 RESOURCE CONFIRMS HIGH PROJECT POTENTIAL

HIGHLIGHTS

• Tumas 3 discovery returns an impressive maiden mineral resource estimate of 23.5Mlb at a grade of 382ppm eU3O8 as inferred resources located on its 100% owned project.

• Achieved 5.34Mlb/km of uranium mineralisation, exceeding the original 3 - 5Mlb/km expectation.

• Maiden resource contributes a significant 47% improvement to the existing palaeochannel related mineral resource.

• This significantly advances the project toward achieving stated objectives.

• Tumas 3 remains open and results fully support the high prospectivity of the 100km of palaeochannel target that has been delineated and remains to be tested.

• New 7,500m drill program funded by JOGMEC now underway at the Nova JV.

• Drilling to resume on DYL’s 100% owned EPLs in December quarter 2017.

Deep Yellow Limited (ASX: DYL) ( Deep Yellow ) is pleased to announce its highly encouraging maiden mineral resource estimate ( MRE ) for the Tumas 3 discovery which, at a 200ppm eU3O8 cut-off, comprises 23.5Mlb inferred mineral resources at a grade of 382ppm eU3O8. This deposit occurs on EPL3496, held by the Deep Yellow wholly-owned subsidiary Reptile Uranium Namibia (Pty) Ltd ( RUN ). The MRE was undertaken using various cut-off grades using a minimum thickness of 1m and conforms to the 2012 JORC Code of Mineral Resource Reporting.

A three month drilling program at Tumas 3 was completed in July 2017. Drilling outlined a 4.4km long zone of continuous calcrete uranium mineralisation. Of the total 400 holes drilled (for 10,545m), 284 returned positive results – an overall 71% success rate. Mineralisation remains open both west and east and will be the subject of further drilling. Figure 1 shows the location of Tumas 3.

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

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Figure 1: Namibian Locality Map Showing Position of the Tumas Project

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The Tumas 3 discovery has significantly increased the Company’s surficial calcrete palaeochannel mineral resource base on this project by 47% which now totals 73.6Mlb U3O8.

The mineralisation at Tumas 3 occurs as a distinct mineralised body separate from the other uranium mineral resources the Company has previously identified elsewhere within these palaeochannels in its Tumas 1 & 2 and Tubas Red Sands/Calcrete deposits (see Figure 1).

The palaeochannels at Tumas 3, which occur separate from these deposits, have only been sparsely drilled along widely spaced regional lines with large sections completely untested.

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Exploration Target

Deep Yellow has identified 100km of palaeochannel targets with large sections remaining to be tested. The very encouraging results at Tumas 3 from drilling over 4.4km gives the management team confidence that the Company has notably advanced towards reaching its stated total Exploration Target[1] of 100 - 150Mlb at a grade range of 300ppm - 500ppm for this type of uranium mineralisation. Deep Yellow’s total JORC conforming uranium resources on its Namibian projects are shown in Appendix 1.

1 The Company has already determined an MRE of 73.6Mlb of calcrete mineralisation (or 70% of the lower range of the Exploration Target, however, it acknowledges that 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 report. Additional exploration is planned, however it is uncertain if this will result in the estimation of an expanded Mineral Resource. From the review and evaluation of calcrete associated mineralisation already identified on the Company’s tenements which commenced in the December Quarter and the exploration carried out over recent months, the Company has a greater understanding of the stratigraphy of the palaeochannels which host mineralisation. This work has 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 10 years in this region. The Exploration Targets are planned to be tested over the next 12 to 24 months by an exploration program including geophysical field work and drill testing of targeted areas.

Tumas 3 Mineral Resource Estimate Summary

Cut-off grades used for the MRE included 100, 150, 200, 250, and 300ppm eU3O8 and the inferred resources derived from these cut-off grades indicate the mineralisation is robust and consistent (see Table 1).

The MRE for the Tumas 3 deposit at a 200ppm cut off gives an inferred resource of 23.5Mlb at 382ppm eU3O8 as shown in in Table 1. The 200ppm eU3O8 cut-off has been selected as being the most appropriate for headline reporting of the resource estimations.

Table 1. Tumas 3 – JORC 2012 MRE Inferred Resources at various cut-off grades

Cut-off	Tonnes	**U3O8 **	**U3O8 **
(ppmU3O8)	(M)	(ppm)	(Mlb)
100	34.9	338	26.0
150	32.4	353	25.3
200	27.9	382	23.5
250	20.3	441	19.7
300	15.5	493	16.8

Notes: Figures have been rounded and totals may reflect small rounding errors. eU3O8 - equivalent uranium grade as determined by downhole gamma logging. Gamma probes were calibrated at the Langer Heinrich uranium mine test pit. During drilling, probes were checked daily against a standard source.

Deposit Parameters: The Tumas 3 uranium mineralisation is of the calcrete type located within an extensive generally east west trending palaeochannel system. The uranium mineralisation occurs in conjunction with calcium carbonate precipitations (calcrete) in sediment filled palaeovalleys. Uranium is the only economically extractable metal in this type of mineralisation although vanadium production can be considered if the price for vanadium is high enough. Uranium minerals mainly include uranium vanadates. The geology of this type

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of mineralisation is well understood having been explored over a number of years. The Langer Heinrich uranium mine, located 30km to the north-east, exploits this type of deposit and has been mined since 2007.

The mineralisation domains used for the current MRE study were interpreted to capture continuous zones of mineralisation above 100ppm eU3O8. The mineralisation included in this study has a strike length of approximately 4.4km with a width of around 300m to 900m and extends to a maximum depth of 25m. The mineralisation occurs in a reasonably continuous, seam-like horizon and extends east and west beyond the currently drilled area.

Drilling for the project was based on RC methods only. Drill holes used in the mineral resource estimation included the 400 recently drilled holes totalling 10,545m and 338 historical drill holes totalling 8,343m drilled by Deep Yellow between 2011 and 2012. Drilling achieved recoveries around 90%. All drill chips were logged geologically and their radioactivity was measured. All data were added to the database.

The recent drilling was carried out on a spacing of 100m x 100m. Previous drilling carried out by the Company was along regional 2km spaced drill lines with drill holes spaced 50m apart which was of insufficient resolution to make a discovery.

Methodology: Data used in the mineral resource estimate is largely based on down-hole radiometric gamma logging taken by a fully calibrated Aus Log gamma logging system which was used in the recent and previous drilling programs. Down-hole gamma readings were taken at 5cm intervals and converted into equivalent uranium values (eU3O8) before being combined to 1m intervals. Geochemical assays were collected from 1m RC-drilling intervals, which were split into 1 to 1.5kg samples by riffle splitters. A further 120 grams were pulverised for use in XRF analysis. Selected samples from the historical holes previously drilled were also assayed for U3O8 by ICP-MS method to confirm the XRF results. For further description of sampling techniques and associated data see Appendix 2, Table 1.

The mineral resource was estimated by Ordinary Kriging.

The geochemical assays were used to confirm the validity of the eU3O8 values determined by down-hole gamma probing. After validation, the eU3O8 values derived from the down-hole gamma logging were given preference over geochemical assays for the resource estimation.

The relevant drill hole details and results were previously reported by Deep Yellow in announcements made to the ASX on 11 July, 22 June, 22 May and 19 April 2017.

Figure 2 shows a grade thickness (GT- eU3O8ppm x metre thickness) contour map of the Tumas 3 deposit, showing extent and nature of the mineralisation over the full 4.4km length drilled. A cross-section and a long-section is shown through the Tumas 3 uranium mineralisation in Figures 3 and 4 respectively.

High Potential and Future Drilling

This first phase of drilling at Tumas 3, with the adoption of a fresh exploration focus under the stewardship of the new management of Deep Yellow, has proved highly effective and fully endorses the approach that is being taken. The work has identified substantial new uranium resources at Tumas 3 where previously none was thought to have existed. Additionally, work during the past 10 months has also identified extensive untested palaeochannels for which high prospectivity is now being confirmed.

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The Tumas 3 deposit currently defined over a strike length of 4.4km demonstrates that these fertile palaeochannels can hold 5Mlb/km of uranium where mineralised. With Tumas 3 remaining open to the immediate east and west and a further 100km of palaeochannel identified still to be tested, it is not unreasonable to estimate that 15 - 20km of these channel systems will return 3 - 5Mlb/km of uranium mineralisation.

The Tumas 3 deposit has no surface expression and therefore could only be discovered through drilling. This leaves abundant opportunity to extend the currently defined resources at Tumas 3 and for making further discoveries within the insufficiently tested, highly prospective palaeochannel system of 100km in length. It strongly justifies the need to continue exploration and systemically drill test the underexplored palaeochannel systems contained in the Company’s 100% owned tenements, EPLs 3496 and 3497.

Drilling will be resumed on these targets late in the December quarter 2017.

Current Drilling on adjoining Nova JV Project

A 7,500m reverse circulation/diamond drilling program is currently being carried out by Deep Yellow on the adjoining Nova JV project where JOGMEC is earning a 39.5% interest on expenditure of $4.5M over four years. This drilling program is focussing on first pass testing of targets identified from extensive mapping and geophysical surveys carried out over selected parts of EPLs 3669 and 3670 during the November 2016 – August 2017 period. The exploration targets are for both alaskite associated basement targets (Rössing and Husab type) and surficial palaeochannel associated calcrete targets (Langer Heinrich type). The main bulk of this drilling is to test the nature of some of the bedrock anomalies identified by the ground IP, radiometrics and airborne EM and to establish existence of uranium fertile palaeochannels.

This program is scheduled to be completed by end November 2017.

Yours Faithfully

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JOHN BORSHOFF Managing Director/CEO Deep Yellow Limited

Competent Person’s Statement

Exploration Results and Mineral Resource Estimate:

The information in this report that relates to Exploration Results for the Tumas Mineral Resource Estimate, Mineral Resource Database and Bulk Densities, together with the Tumas Mineral Resource Estimate itself, are based on information compiled by Mr. Martin Hirsch, M.Sc.Geology, who is a member of the Institute of Materials, Minerals and Mining (UK) and the South African Council for Natural Science Professionals. Mr. Hirsch, who is the Exploration Manager for Reptile Mineral Resources and Exploration (Pty) Ltd (RMR – the Manager), 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 in terms of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code 2012 Edition). Mr. Hirsch 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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Geophysics Component:

The Tumas 3 deconvolution of the current down-hole gamma data to convert the data to equivalent uranium values (eU3O8) was performed by Matt Owers, a geophysicist who works as a consultant for Resource Potentials with over 5 years of relevant experience in the industry. Mr Owers is a member of Australian Institute of Geoscientists and has sufficient experience with this type of processes to qualify as a Competent Person in terms of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code 2012 Edition). Mr. Owers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Where the Company refers to the other JORC 2012 resources in this report, it confirms that it is not aware of any new information or data that materially affects the information included in the original announcements and all material assumptions and technical parameters underpinning the resource estimates in those original announcements

Where the Company refers to the other JORC 2012 resources and JORC 2004 resources in this report, it confirms that it is not aware of any new information or data that materially affects the information included in the original announcements and all material assumptions and technical parameters underpinning the resource estimates in those original announcements continue to apply and have not materially changed.

Figure 2: GT Contour Map of the Tumas 3 Uranium Mineralisation

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Figure 3: SW - NE Cross-Section through the Tumas 3 Palaeochannel System

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Figure 4: E - W Long-Section through the Tumas 3 Palaeochannel System

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APPENDIX 1

JORC RESOURCES

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Cut-
Tonnes U3O8 U3O8 U3O8 Resource Categories (Mlb U3O8)
off
Deposit Category
(ppm
(M) (ppm) (t) (Mlb) Measured Indicated Inferred
U3O8)
BASEMENT MINERALISATION
Omahola Project - JORC 2004
Inca Deposit ♦ Indicated 250 7.0 470 3,300 7.2 - 7.2 -
Inca Deposit ♦ Inferred 250 5.4 520 2,800 6.2 - - 6.2
Ongolo Deposit # Measured 250 7.7 395 3,000 6.7 6.7 - -
Ongolo Deposit # Indicated 250 9.5 372 3,500 7.8 - 7.8 -
Ongolo Deposit # Inferred 250 12.4 387 4,800 10.6 - - 10.6
MS7 Deposit # Measured 250 4.4 441 2,000 4.3 4.3 - -
MS7 Deposit # Indicated 250 1.0 433 400 1 - 1 -
MS7 Deposit # Inferred 250 1.3 449 600 1.3 - - 1.3
Sub-Total 48.7 420 20,400 45.1 11.0 16.0 18.1
CALCRETE MINERALISATION
Tumas 3 Deposit - JORC 2012 (New Resource)
Tumas 3 Deposit ♦ Inferred 200 27.9 382 10,700 23.5
Sub-Total 27.9 382 10,700 23.5 - - 23.5
Tubas Sand Deposit - JORC 2012
Tubas Sand Deposit # Indicated 100 10.0 187 1,900 4.1 - 4.1 -
Tubas Sand Deposit # Inferred 100 24.0 163 3,900 8.6 - - 8.6
Sub-Total 34.0 170 5,800 12.7
Tumas 1 & 2 Deposit - JORC 2012
Tumas Deposit ♦ Measured 200 9.7 386 3,700 8.2 8.2 - -
Tumas Deposit ♦ Indicated 200 6.5 336 2,200 4.8 - 4.8 -
Tumas Deposit ♦ Inferred 200 0.4 351 150 0.3 - - 0.3
Sub-Total 16.6 366 6,050 13.3
Tubas Calcrete Deposit - JORC 2004
Tubas Calcrete
Inferred 100 7.4 374 2,800 6.1 - - 6.1
Deposit
Sub-Total 7.4 374 2,800 6.1
Aussinanis Deposit - JORC 2012
Aussinanis Deposit ♦ Indicated 150 5.6 222 1,200 2.7 - 2.7 -
Aussinanis Deposit ♦ Inferred 150 29.0 240 7,000 15.3 - - 15.3
Sub-Total 34.6 237 8,200 18.0
Calcrete Deposits Sub-Total 73.6 8.2 11.6 53.8
GRAND TOTAL RESOURCES 169.2 319 53,950 118.7
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Notes: Figures have been rounded and totals may reflect small rounding errors.

XRF chemical analysis unless annotated otherwise.

♦ eU3O8 - equivalent uranium grade as determined by downhole gamma logging.

• # Combined XRF Fusion Chemical Assays and eU3O8 values.

Where eU3O8 values are reported it relates to values attained from radiometrically logging boreholes.

Gamma probes were calibrated at Pelindaba, South Africa in 2007 and sensitivity checks are conducted by periodic relogging of attest hole to confirm operation between 2008 and 2013.

During drilling, probes are checked daily against standard source.

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JORC Code, 2012 Edition – Table 1 report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

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Criteria JORC Code Explanation  Commentary
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Sampling techniques		Nature and quality of sampling (eg cut channels,		U3O8values are derived from both down-hole
		random chips, or specific specialised industry		total gamma counting (eU3O8) and chemical
		standard measurement tools appropriate to the		assay data.
		minerals under investigation, such as down-hole	Total gamma eU3O8
		gamma sondes (probes), or handheld XRF		33 mm Auslog total gamma probes were used
		instruments, etc). These examples should not be		and operated by company personnel.
		taken as limiting the broad meaning of sampling.		Gamma probes were calibrated by a qualified
		Include reference to measures taken to ensure		technician at Langer Heinrich uranium mine in
		sample representivity and the appropriate		May 2017 (T010, T030, T161 and T165) and
		calibration of any measurement tools or systems		again In August 2017 (T029, T030, T161, T162,
		used.		T164 and T165).
		Aspects of the determination of mineralisation		During drilling, probes were checked daily by
		that are Material to the Public Report.		sensitivity checks against a standard source.
		In cases where ‘industry standard’ work has been		Majority of probing was done with probe T162
		done this would be relatively simple (eg ‘reverse		(69%) and T010 (11%). Other probes utilised
		circulation drilling was used to obtain 1 m		during the program have been T029 (2%), T030
		samples from which 3 kg was pulverised to		(4.5%), T161 (3.5%), T164 (7.5%) and T165
		produce a 30g charge for fire assay’). In other		(2.5%).
		cases, more explanation may be required, such		Gamma measurements were taken at 5 cm
		as where there is coarse gold that has inherent		intervals at a logging speed of approximately
		sampling problems. Unusual commodities or		2m per minute.
		mineralisation types (eg submarine nodules) may		Probing was done immediately after drilling
		warrant disclosure of detailed information.		mainly through the drill rods and in some cases
				in the open holes. Rod factors were established
				to compensate for the reduced gamma counts
				when logging was done through the rods.
				Minor water was encountered in 61 out of 400
				holes.
				The gamma measurements were recorded in
				counts per second (c/s) and were converted to
				equivalent eU3O8values over 1m intervals using
				the probe-specific K-factor.
				Disequilibrium studies done on 22 samples
				derived from the Tumas 1 and 2 zones by

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APPENDIX 2

• ANSTO Minerals in 2008 documented that the U[238] decay chains of the wider Tumas deposit of which Tumas 3 is part are within an analytical error of ± 10 to 12% and are in secular equilibrium.

• 932 1m samples were taken for uranium assays from the current drilling. The 1m assays were composited over individual mineralised sections and compared against the equivalent composites of the same intersection using eU3O8. This confirmed the ANSTO Minerals results that the Tumas mineralisation is in secular equilibrium.

Chemical assay data

		   	Geochemical samples were derived from Reverse Circulation (RC) drilling at intervals of 1m. Samples were spilt at the drill site using a riffle splitter to obtain a 1kg sample from which 120g was pulverized to produce a subset for XRF-analysis. 54 assays which were derived from a 2011 reconnaissance drilling program over the Tumas 3 area were added to the 932 newly collected 1m composites, resulting in a total of 986 x 1m composited samples which were taken and assayed for U3O8by pressed pellet XRF by ALS laboratory in Johannesburg (RSA). The samples were taken for confirmatory assay to be compared to the equivalent uranium values derived from down-hole gamma logging. The assay results confirm equivalent uranium grades correlate correctly and are within an acceptable statistical error margin of 10%.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is _oriented and if so, by what method, etc). _	 	RC drilling was used throughout the Tumas 3 campaign. All holes were drilled vertically and intersections measured present true thicknesses.
Drill sample recovery	 Method of recording and assessing core and chip		Drill chip recoveries were good, generally more

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APPENDIX 2

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sample recoveries and results assessed. than 95%.
 Measures taken to maximise sample recovery  Drill chip recoveries were assessed by weighing
and ensure representative nature of the samples. 1 m drill chip samples at the drill site. Weights
 Whether a relationship exists between sample were recorded in sample tag books.
recovery and grade and whether sample bias  Sample loss was minimized by placing the
may have occurred due to preferential loss/gain sample bags directly underneath the cyclone.
of fine/coarse material.
Logging  Whether core and chip samples have been  All drill holes were geologically logged.
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Logging 	Whether core and chip samples have been		All drill holes were geologically logged.
	geologically and geotechnically logged to a level		The logging was qualitative in nature. A
	of detail to support appropriate Mineral Resource		dominant and subordinate lithology type was
	estimation, mining studies and metallurgical		determined for every sample representing a 1m
	studies.		interval with assessment of ratio/percentage.
	Whether logging is qualitative or quantitative in		Other parameters routinely logged include
	nature. Core (or costean, channel, etc)		color, color intensity, weathering, oxidation,
	photography.		alteration, alteration intensity, grain size,
	The total length and percentage of the relevant		hardness, carbonate (CaCO3) content, sample
	intersections logged.		condition (wet, dry) and a total gamma count
			was derived from a Rad-Eye scintillometer.
			10,557m were geologically logged, which
			represents 100% of metres drilled.
			Lithology Codes for palaeochannel lithologies
			used are: AL=Alluvion, AG=Gravel,
			AGS=Gravel silty sandy, SAT=Silty sand,
			SR=Red sand, CA=Calcrete un-differentiated,
			CAW=Calcrete whitish, CAB=Calcrete
			brownish, CAF=Calcrete pale red _Fine
			grained, SS=Sandstone, SC=Conglomerate,
			SA=Sand, SSF=Sandstone fine_CaCO3
			cement, GY=Gypsum, CH=Chert,
			SSD=Dolomitic sandstone, QCO=Quartzitic
			conglomerate, CY=Clay, SH=Shale,
			REW=Reworked bedrock & calcrete.
			Lithology Codes for the channel floor or
			basement lithologies used are: SD=Dolomite,
			ST=Siltstone, SM=Mudstone, GG=Granite,
			ALAS=Alaskite, PQM=Micaceous quartzite,
			MS=Micaschis, MB=Marble, PSAM=Psammite,
			MPEL=Metapelite, HQ=Vein quartz,
			GZ=Pegmatite, PZ=Biotite gneiss,
			PQ=Quartzite, PG=Gneiss undifferentiated,

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APPENDIX 2

PR=Magnetite gneiss, PT=Granitised gneiss, OD=Dolerite, HS=Skarn, PA=Amphibolite, BU=Mafic extrusive, MM=Massive magnetite, GD=Granodiorite, BI=Massive biotite, SB=Breccia, BR=Bedrock, PX=Calc-silicate, PK=Calc-silicate gneiss

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter,  Sample splitters used were a 2-tier riffle splitter half or all core taken. mounted on the rig giving an 87.5% (reject) and

• If non-core, whether riffled, tube sampled, rotary a 12.5% sample (assay sample) and a portable split, etc and whether sampled wet or dry. 2-tier (75%/25%) splitter for any oversize assay

• For all sample types, the nature, quality and samples. All sampling was dry. appropriateness of the sample preparation  The sampling techniques are common industry technique. practice.

• Quality control procedures adopted for all sub-  Sample sizes are considered appropriate to the sampling stages to maximise representivity of grain size of the material being sampled. samples.  Field duplicates were inserted into the assay

• Measures taken to ensure that the sampling is batch at an approximate rate of 1 for every 10 representative of the in situ material collected, samples which is compatible with industry including for instance results for field norm. duplicate/second-half sampling.  Blanks were inserted into the assay batch at an

• Whether sample sizes are appropriate to the approximate rate of 1: 10 which is compatible grain size of the material being sampled. with industry norm.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

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• ALS used eight different standards, namely:

• AMIS0076, AMIS0078, AMIS0087, AMIS0090, AMIS0114, AMIS0186, AMIS0208 and OREAS-122, see table below:

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APPENDIX 2

Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	     	The analytical method employed was XRF (PP). The technique is industry standard and considered appropriate. AUSLog downhole gamma tools were used as explained under ‘Sampling techniques’. This is the principal evaluation technique. AMIS standards AMIS0076, AMIS0078, AMIS0087, AMIS0090, AMIS0114, AMIS0186, AMIS0208 and OREAS-122 were used in a ratio of 1: 9. Duplicates performed with a regression line of R2=0.98 and a correlation coefficiency of 0.98% Blanks performed well below 4 ppm (U) with 2 outliers recorded at 20ppm (U) resulting in a 2.6% failure rate. All AMIS standards performed well within limits. AMIS0076, AMIS0087 and AMIS00186 performed excellent remaining within 2 standard deviations (2σ); AMIS0078, AMIS0090, AMIS0114 and AMIS0208 exceeded but remained within lab certified limits. OREAS-122 (expected value of 423ppm U) failed in 5 out of 8 samples and exceeded the lower limits by - 15ppm(U)
Verification of sampling and assaying	 The verification of significant intersections by		The geology logs were recorded directly into
	either independent or alternative company		digital tables in the field using pull down list
	personnel.		enforced logging spreadsheets.
	 The use of twinned holes.		Sample tag books were utilized for sample
	 Documentation of primary data, data entry		identification.
	procedures, data verification, data storage		The field drill data of those logs and tag books
	(physical and electronic) protocols.		(lithology, sample specifications etc.) is QA-ed
	 Discuss any adjustment to assay data.		and validated by the relevant project geologist
			before imported into a geological database.
			Twinning RC holes was not considered due to
			the nuggety nature of the mineralisation.
			Data was uploaded onto a file server following a
			strict validation protocol.
			Equivalent eU3O8values are calculated from
			raw gamma files by applying calibration factors
			and casingfactors where applicable.

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APPENDIX 2

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 The adjustment factors are stored on a file
server.
 Equivalent U3O8 data is composited to 1m
intervals.
 The ratio of eU3O8 versus assayed U3O8 for
matching composites is used to quantify the
statistical error. It was found that they all lie
within statistically acceptable margins.
Location of data points  Accuracy and quality of surveys used to locate  The collars were surveyed by an in-house
drill holes (collar and down-hole surveys), surveyor using a differential GPS.
trenches, mine workings and other locations used  All drill holes are vertical and shallow; therefore,
in Mineral Resource estimation. no down-hole surveying was required.
 Specification of the grid system used.  The grid system is World Geodetic System
 Quality and adequacy of topographic control. (WGS) 1984, Zone 33.
Data spacing and distribution  Data spacing for reporting of Exploration Results.  The data spacing and distribution is optimized
 Whether the data spacing and distribution is along the Tumas palaeochannel direction. The
sufficient to establish the degree of geological drill grid is close to 100m by 100m in EW and
and grade continuity appropriate for the Mineral NS rectangular directions following the main
Resource and Ore Reserve estimation channel.
procedure(s) and classifications applied.  The drill pattern is considered sufficient to
 Whether sample compositing has been applied. establish a maiden Mineral Resource.
 The total gamma count data, which is recorded
at 5 cm intervals, is converted to equivalent
uranium value (eU3O8) and composited to 1 m
intervals.
Orientation of data in relation to geological  Whether the orientation of sampling achieves  Uranium mineralisation is strata bound and
structure unbiased sampling of possible structures and the distributed in a fairly continuous horizontal layer.
extent to which this is known, considering the Holes were drilled vertically and mineralised
deposit type. intercepts represent the true width.
 If the relationship between the drilling orientation  All holes were sampled down-hole from surface.
and the orientation of key mineralised structures Geochemical samples were collected at 1 m
is considered to have introduced a sampling bias, intervals. Total-gamma count data was
this should be assessed and reported if material. collected at 5 cm intervals.
Sample security  The measures taken to ensure sample security.  1m RC drill chip samples were prepared at the
drill site. The assay samples were stored in
plastic bags. Sample tags were placed inside
the bags. The samples were placed into plastic
crates and transported from the drill site to
RMR’s site premises in Swakopmund by
company personnel. Sample preparation for
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APPENDIX 2

				dispatch to ALS laboratories in South Africa was done at RMR’s own prep-lab facility. Upon completion of the preparation work the remainder of the drill chip sample bags for each hole was packed back into crates and then stored in designated containers in chronological order, locked up and kept safe at RMR’s sample storage yard at Rocky Point located outside Swakopmund.
Audits or reviews		The results of any audits or reviews of sampling		Dr J Corbin from GeoViz Consulting Australia
		techniques and data.		undertook a drilling data review. He concluded
				his audit commenting: “Overall, the data
				available are of reasonably good quality and
				easilyaccessible.”

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APPENDIX 2

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	   	The work to which the Exploration Results relate was undertaken on exclusive prospecting grant EPL3496, (Tumas Zone 3). The EPL was originally granted to Reptile Uranium Namibia (Pty) Ltd (RUN) in 2006. The EPL is in good standing and is valid until 5thJune 2019. The EPL is located within the Namib Naukluft-National Park in Namibia. There are no known impediments to the project beyond Namibia’s standardpermitting procedures.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 	Prior to RUN’s ownership of these EPLs, some work was conducted by Anglo American Prospecting Services (AAPS), General Mining and Falconbridge in the 1970s. Assay results from the historical drilling are incomplete and available on paper logs only. There are no digital records available from this period.
Geology	 Deposit type, geological setting and style of mineralisation.		Tumas mineralisation occurs as secondary carnotite enrichment of
			variably calcretised palaeochannel and sheet wash sediments and
			adjacent weathered bedrock.
			Uranium mineralisation at Tumas is surficial and stratabound in
			Cenozoic sediments, which include from top to bottom scree, sand,
			gravel, gypcrete, various intercalated calcareous sand and calcrete
			horizonts overlying discordant Damaran age folded sequences of
			meta-volcanics and meta-sediments. Predominant basement
			stratigraphy is Nosib-Swakop Group with Chuos Fm being the
			highest lithostratigraphic level in the project area exposed. East of
			Tumas 3 is Kuiseb Fm exposed forming the highest lithostratigraphic
			levels. All sequences are highly metamorphosed and characterized
			by isoclinal folding in partly over thrusted sheets lying staggered on
			top of each other. Strike is generally NE-SW to NNE-SSW, mostly
			steep dipping. 3 different folding events are observed.
			The majority of the mineralisation in the project area is hosted in
			calcrete. Locally, the underlying Proterozoic bedrock shows traces
			of mineralisation in weathered contact zones of more schistose
			basement types;this however occurs onlyseldom.

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Criteria JORC Code explanation Commentary
Drill hole  A summary of all information material to the understanding of the  400 RC holes over 10,557m were used for estimating the Tumas
Information exploration results including a tabulation of the following information Zones 3, with all relevant drilling being done between March 2017
for all Material drill holes: and August 2017. Reconnaissance drilling in 2011/12 traversed the
o easting and northing of the drill hole collar area and 54 1m composited assay samples were added to the
o elevation or RL (Reduced Level – elevation above sea level in dataset (originating from 20 historical holes). Description of sampling
meters) of the drill hole collar protocol and analytical process applied for these 54 samples at the
o dip and azimuth of the hole time differed slightly with 90 grams being pulverized form a 1kg
o down hole length and interception depth sample instead of 120 grams and the laboratory used being Bureau
o hole length. Veritas in Swakopmund instead of ALS in Johannesburg.
 If the exclusion of this information is justified on the basis that the  Furthermore an additional 77 RC holes from the 2011 historical
information is not Material and this exclusion does not detract from campaign were processed and incorporated, resulting in use of
the understanding of the report, the Competent Person should clearly additional 82 equivalent uranium intervals over 236m in total being
explain why this is the case. added to the newly, through drilling derived dataset.
 All holes were drilled vertically and intersections measured present
true thicknesses.
Data  In reporting Exploration Results, weighting averaging techniques,  5 cm gamma intervals were composited to 1 m intervals.
aggregation maximum and/or minimum grade truncations (eg cutting of high  1 m composites of eU3O8 were used for the estimate.
methods grades) and cut-off grades are usually Material and should be stated.  No grade truncations were applied.
 Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used
for such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
 The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship  These relationships are particularly important in the reporting of  The mineralisation is sub-horizontal and all drilling vertical,
between Exploration Results. therefore, mineralised intercepts are considered to represent true
mineralisatio  If the geometry of the mineralisation with respect to the drill-hole widths.
n widths and angle is known, its nature should be reported.
intercept  If it is not known and only the down hole lengths are reported, there
lengths should be a clear statement to this effect (eg ‘down hole length, true
width not known’).
Diagrams  Appropriate maps and sections (with scales) and tabulations of  All relevant intercepts were included within the text and appendices
intercepts should be included for any significant discovery being of previous releases.
reported These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional views.
Balanced  Where comprehensive reporting of all Exploration Results is not  Comprehensive reporting, including 4 announcements of all
reporting practicable, representative reporting of both low and high grades Exploration Results was practised throughout the drilling program.
and/or widths should be practiced to avoid misleading reporting of
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Criteria	JORC Code explanation Exploration Results.	Commentary
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	The wider area of the Tumas palaeochannel was subject to some drilling in the 1970s and 1980s by Anglo American Prospecting Services, Falconbridge and General Mining. Downhole gamma-gamma density logging for bulk density was derived from earlier work at Tumas 1 and 2 and in analogy to Langer Heinrich uranium mine mining in same lithologies and geological settings East and North-East of Tumas Zone 3.
Further work	 The nature and scale of planned further work (eg tests for lateral	The mineralisation is open to the East and West and further work is
	extensions or depth extensions or large-scale step-out drilling).	planned eastwards of the current discovery and an area extending
	 Diagrams clearly highlighting the areas of possible extensions,	for another 12km towards the West known to contain carnotite
	including the main geological interpretations and future drilling areas,	mineralisation in calcrete.
	provided this information is not commercially sensitive.	All the above areas are planned for inclusion in a future drilling
		program as mineralisation is open to the East and West along
		strike.

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APPENDIX 2

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	Commentary	Commentary
Database integrity	 Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.  Data validation procedures used.	A set of SOPs (Standard Operating Procedures) were defined that safeguard data integrity which cover the following aspects:  Capturing of all exploration data; geology and probing;  QA/QC of all drilling, geophysical and laboratory data;  Data storage (database management), security and back-up; and  Reporting and statistical analyses used Micromine (MM) software and Minestis Software.
Site visits	 Comment on any site visits undertaken by the Competent Person and the outcome of those visits.  If no site visits have been undertaken indicate why this is the case.	 	During all drilling programs regular site visits were conducted by the Company’s Competent Person who signed off on all exploration data. More recently, the Company’s current Competent Person has undertaken regular visits since with the most recent visit being in early September 2017.
Geological interpretation	 Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.  Nature of the data used and of any assumptions made.  The effect, if any, of alternative interpretations on Mineral Resource estimation.  The use of geology in guiding and controlling Mineral Resource estimation.  _The factors affecting continuity both ofgrade andgeology. _	 	Confidence in the geological interpretation and modeling of the sedimentary channel fill is very high. This type of geology is well known and readily recognized in the RC drill chips. The factors affecting grade distribution are channel morphology and bedrock profile, with bedrock “highs” indicative forming areas of mineralisation traps.
Dimensions	 The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	 	The drilled orebody has a strike length of 4.4 km, 200 to 900 m wide and 3 to 20m deep. The main mineralised calcrete reaches from a shallow depth below surface of -2 to -3m deepdown to -20m/25m.
Estimation	 The nature and appropriateness of the estimation technique(s)		The present estimates is based on grade/lithology domains restricting
and	applied and key assumptions, including treatment of extreme grade		geostatistical interpolations into blocks estimates bound to domain
modelling	values, domaining, interpolation parameters and maximum distance		solids. Block sizes used are 50m East x 50m West x 2m elevation
techniques	of extrapolation from data points. If a computer assisted estimation		Resources were estimated by Ordinary Kriging (OK) using a 100ppm
	method was chosen include a description of computer software and		lower limit without any grade capping. Search ranges remained
	parameters used.		restricted to max 1½ drill-hole spaces and remained restricted to
	 The availability of check estimates, previous estimates and/or mine		geology via defined calcrete solids and grade shells.
	production records and whether the Mineral Resource estimate takes		Omnidirectional variograms were used in the current estimates.
	appropriate account of such data.

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Criteria JORC Code explanation Commentary
 The assumptions made regarding recovery of by-products.  Block validation was done using qualitative drill-hole displays over block
 Estimation of deleterious elements or other non-grade variables of estimates. The current block estimates correlate perfectly with
economic significance (eg sulphur for acid mine drainage
composited eU3O8 GT (Grade Thickness) data.
characterisation).
 In the case of block model interpolation, the block size in relation to
the average sample spacing and the search employed.
 Any assumptions behind modelling of selective mining units.
 Any assumptions about correlation between variables.
 Description of how the geological interpretation was used to control
the resource estimates.
 Discussion of basis for using or not using grade cutting or capping.
 The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of
reconciliation data if available.
Moisture  Whether the tonnages are estimated on a dry basis or with natural  An optical assessment of sample material was done during the
moisture, and the method of determination of the moisture content. sampling process and samples were classified as either “dry” or “wet”.
 Tonnages are estimated dry.
Cut-off  The basis of the adopted cut-off grade(s) or quality parameters  1m composites below eU3O8 of 100ppm were excluded from the
parameters applied. estimation process.
 The range of cut-off grades were chosen based on “potentially
economic” criteria and the fact that mineralisation is continuous.
Mining  Assumptions made regarding possible mining methods, minimum  Potential scenarios are open cast mining with one, two or three-metre
factors or mining dimensions and internal (or, if applicable, external) mining mining bench heights.
assumptions dilution. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider
potential mining methods, but the assumptions made regarding
mining methods and parameters when estimating Mineral Resources
may not always be rigorous. Where this is the case, this should be
reported with an explanation of the basis of the mining assumptions
made.
Metallurgical  The basis for assumptions or predictions regarding metallurgical  Detailed mineralogical characterization tests were conducted from the
factors or amenability. It is always necessary as part of the process of upper Tumas areas which allowed the Company to derive a sound
assumptions determining reasonable prospects for eventual economic extraction understanding of how a calcrete ore from Tumas would respond to
to consider potential metallurgical methods, but the assumptions beneficiation and further downstream processing.
regarding metallurgical treatment processes and parameters made  Also, the nearby Langer Heinrich uranium mine has successfully mined
when reporting Mineral Resources may not always be rigorous. and processed calcrete ore for almost a decade. Although its grade is
Where this is the case, this should be reported with an explanation of higher the mineralogical characteristics are very similar.
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Criteria JORC Code explanation Commentary
the basis of the metallurgical assumptions made.
Environmen-  Assumptions made regarding possible waste and process residue  Independent consultant SoftChem completed a scoping level
tal factors or disposal options. It is always necessary as part of the process of Environmental Impact Assessment for the Tumas Project in 2013.
assumptions determining reasonable prospects for eventual economic extraction  As the mining progresses to different sections of the mine, waste
to consider the potential environmental impacts of the mining and
material will be backfilled into some of the mined-out areas.
processing operation. While at this stage the determination of
potential environmental impacts, particularly for a greenfield project,  Rehabilitation of the mined-out areas and stockpile facility will be
may not always be well advanced, the status of early consideration of progressive throughout the life of the mine. Any remaining waste rock
these potential environmental impacts should be reported. Where stockpiles will be shaped and contoured to blend into the surrounding
these aspects have not been considered this should be reported with environment.
an explanation of the environmental assumptions made.
Bulk density  Whether assumed or determined. If assumed, the basis for the  Bulk density was derived from borehole density logging (gamma-
assumptions. If determined, the method used, whether wet or dry, the gamma) from drilling at Tumas 1 and 2 in 2014.
frequency of the measurements, the nature, size and  284 1m composites where measured resulting in an average density of
representativeness of the samples.
2.35.
 The bulk density for bulk material must have been measured by
 2.3 was used for the current estimate
methods that adequately account for void spaces (vugs, porosity,
etc), moisture and differences between rock and alteration zones  At the Langer Heinrich uranium, mine bulk density is defined as 2.35
within the deposit. after mining geologically equivalent material for 10 years.
 Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.
Classification  The basis for the classification of the Mineral Resources into varying  This mineral resource estimate reflects an inferred resource.
confidence categories.  Semi-variography presented structures with ranges of up to 155m.
 Whether appropriate account has been taken of all relevant factors  Search ranges were used accordingly to drilling data-density at max of
(ie relative confidence in tonnage/grade estimations, reliability of
1 ½drill positions.
input data, confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).  A search of up to 145m over minimum 4 sectors was applied to assign
 Whether the result appropriately reflects the Competent Person’s eU3O8 grades to blocks; sub-searches were restricted to 8 1m
view of the deposit.
composites per sector.
 The average mineralised seam thickness is in the order of 2 to 10m.
 The Competent Person is satisfied that the applied methodology is
appropriate and the resulting block estimate is a true reflection of the
drilling data.
Audits or  The results of any audits or reviews of Mineral Resource estimates.  No additional reviews were conducted beyond those carried out by the
reviews various Competent Persons over time.
Discussion of  Where appropriate a statement of the relative accuracy and  The applied geostatistical approach to arrive at the maiden mineral
relative confidence level in the Mineral Resource estimate using an approach
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Criteria JORC Code explanation Commentary
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accuracy/		or procedure deemed appropriate by the Competent Person. For	resource is considered sound and reflects industry standard approaches
confidence		example, the application of statistical or geostatistical procedures to	across the globe and industry.
		quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.	The resulting block model presents a true representation of drilling data. It is this Competent Person’s opinion that the classification of this inferred resource can improve by adding limited infill drilling to improve
		The statement should specify whether it relates to global or local	continuity definition.
		estimates, and, if local, state the relevant tonnages, which should be
		relevant to technical and economic evaluation. Documentation should
		include assumptions made and the procedures used.
		These statements of relative accuracy and confidence of the estimate
		should be compared withproduction data, where available.

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