DEEP YELLOW LIMITED — Capital/Financing Update 2017

May 21, 2017

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22 May 2017

ASX Market Announcements Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam,

NEW URANIUM DISCOVERY CONFIRMED AT TUMAS 3, NAMIBIA

Key Points

• Drilling at Tumas 3 has extended uranium mineralisation over a 1.9km strike and remains open to the west and east

• High drilling success rate with 128 out of 144 holes (100m by 100m spacing) returning positive results including:

• 12m at 1,239ppm eU3O8 from 5.1m

• 12m at 1,163ppm eU3O8 from 6.1m

• 14m at 999ppm eU3O8 from 6.1m

• Mineralisation is calcrete associated and hosted in palaeochannels, similar to the Langer Heinrich uranium mine located 30km to the north east

• Planned 10,000m drill program approximately 40% complete and maiden resource for Tumas 3 discovery expected in the September quarter

Deep Yellow Limited ( DYL ) is pleased to report continued encouraging drilling results from the 10,000m drilling program currently underway on EPL3496, held by DYL’s wholly-owned subsidiary Reptile Uranium Namibia (Pty) Ltd ( RUN ) (Figure 1).

The ongoing drilling of the Tumas 3 target zone has delineated additional uranium mineralisation, significantly extending the discovery since it was initially reported in April (see DYL ASX announcement 19 April 2017). Of the 144 vertical holes drilled for 3611m to 15 May 2017, 128 of these holes returned positive results – a very significant 88.9% success rate. This drilling has extended the palaeochannel associated mineralisation by 58% to 1.9km from the 1.2km previously reported. The Tumas 3 mineralisation still remains open, strongly justifying continued drilling and sourcing a second drilling rig to accelerate the program. Drilling is being conducted on a 100m x 100m spacing and on program completion is considered will be of sufficient resolution to estimate a maiden inferred resource in the September quarter.

Unit 1, 100-104 Railway Road 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

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Figure 1: Regional location showing Reptile EPLs, uranium deposits and prospects

This emerging discovery occurs as a distinct mineralised zone separate from the uranium resources the Company has identified within these palaeochannels in its Tumas 1 & 2 and Tubas Red Sands/Calcrete deposits (see Figures 1 and 2). The palaeochannels occurring away from these deposits have only been sparsely drilled along widely spaced regional lines, leaving opportunity for both continuing the extension of Tumas 3 and for further discoveries within what can now be seen as an inadequately tested, highly prospective palaeochannel of 100km in length.

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New Tumas 3
Discovery
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Figure 2 : EPLs 3496, 3497 showing Tumas 3, all previous drill hole and main prospect locations over palaeochannels.

The mineralisation at Tumas is essentially blind in nature with no surface radiometric expression. Apart from the enormous benefit gained from the now more accurately defined palaeochannel systems as outlined in Figure 2, resulting from the re-interpretation of the existing airborne geophysical data to concentrate the exploration effort, actual discovery has only been possible by drilling.

eU3O8 ppm Determinations

In the Company’s 19 April 2017 announcement advising of the Tumas 3 discovery, the mineralisation was referenced by the down-hole gamma counts per second (cps) giving only a semi-quantitative indication of the uranium presence. It was indicated in that release the eU3O8 determinations would follow once all necessary calibration factors were collected and verified for the conversion of cps to uranium grade.

The down-hole gamma data for 116 of the 144 holes drilled to 15 May 2017 have now been converted to equivalent uranium oxide values (eU3O8 ppm) and this work is confirming the ongoing encouraging results and the existence of an extensive mineralised system. The drilling has delineated a zone of continuous uranium mineralisation (see drill data results

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with eU3O8 determinations Table 1 in Appendix 1) with equivalent uranium grades ranging from 101ppm to 0.71% eU3O8 over 1m occurring within the 1.9km section tested to date of the 3km Tumas 3 target zone which the DYL is planning to drill in this current program. The mineralisation defined to date remains open to the west, north-west and south-east (see Figure 3). Mineralisation has been defined as anything having a grade thickness (GT) of greater than 100ppm eU3O8 over a 1m interval as determined using a fully calibrated Auslog gamma down-hole logging unit. These GT values (eU3O8ppm x thickness in metres) are shown in contoured form in Figure 3 and highlight the continuous, open nature of the uranium mineralisation. The results to date shows a robust mineralisation well within the norms of this style of uranium occurrence with average grade using a 100ppm eU3O8 cut-off being 358ppm and at a 200ppm eU3O8 cut-off rising to an average grade of 527ppm per metre comparing very favourably with the average grades of Langer Heinrich at similar cutoff grades.

The mineralised channel system that has been identified varies from 200m to 900m in width and ranges in thickness from 1m to 12m occurring at depths varying between 3m to 19m.

Analysis

The drilling continues to show that the Tumas 3 mineralisation is not confined to one simple, single channel but rather is associated with a complex palaeo-drainage system containing numerous intermingling channels heading westward toward the ocean. The drilling results indicate that the mineralised portion of the channel widens toward the west.

The original plan for the first phase of the current drilling program was to test a 3km section (to date only 1.9km tested) of the prospective palaeochannel at Tumas 3. However, should the strength and continuity of uranium mineralisation persist beyond the current 3km target zone, then this drilling program will be extended immediately to the west and east to delineate the full potential of what is emerging as a very significant exploration target. A second drill rig is currently being sourced in order to accelerate the current program. Drilling planned on the other targets (S Bend and S Bend East) that have been defined will accordingly need to be postponed.

Appendix 1 lists all 144 drill holes completed from commencement on 21 March 2017 to 15 May 2017 in Tables 1 and 2. Table 1 lists the 116 holes drilled to 3 May 2017 that have undergone eU3O8 determination and show depth and coordinates of the holes along with eU3O8 ppm values and the thickness of the mineralisation as calculated from down-hole gamma logging. Table 2 in Appendix 1 shows the additional 28 holes drilled between 3 May 2017 and 15 May 2017 for which eU3O8 determinations have not yet been calculated and uranium values are given semi-quantitatively in gamma counts per second (cps) from the down hole gamma logging also showing drill-hole locations, level of anomalous down hole gamma cps and thickness for each anomalous zone.

Drill hole cross sections (see Figures 4 and 5) show the continuous, flat lying nature of the uranium mineralisation and also the variability and complexity of the palaeochannel topography.

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Conclusion

The continuing positive drilling results from Tumas 3 again reinforce the strongly held belief of the new management and technical team that the palaeochannels occurring within the RUN held tenements present a valid and significant regional exploration target. These palaeochannels are showing they have previously been inadequately tested to the degree required, as evidenced by the discovery that has been made at Tumas 3. These new positive results, together with approximately 100km of prospective palaeo-drainage identified as still to be tested, provide management with increasing confidence that the existing uranium resource base within the Reptile project area can be increased.

Yours faithfully

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JOHN BORSHOFF Managing Director/CEO Deep Yellow Limited

Competent Persons’ Statement

Exploration Competent Persons’ Statement

The information in this report as it relates to exploration results was compiled 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 Exploration Manager for Reptile Uranium Namibia (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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hirsch consents to the inclusion in this announcement of the exploration results and supporting information in the form and context in which it appears.

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GT (eU308 ppm x m)
eU308 ppm
U308 Assay
eU308 ppm
Drill Spacing
• •
• •
100m x 100m
Mineralisation
Open
Area covered by the current eU308 determination
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Figure 3 : Tumas 3 - Drill Hole Location: Showing completed drill holes in solid colours reflecting eU3O8ppm x m thickness (GT) contours

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Figure 4: Tumas 3 – Long Section (drill hole spacing 140m) from 7465200N/507500E to 7463900N/509100E

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Figure 5 : Coss Section: 507,800E from 7,464,100N to 7,465,400N (drill hole spacing 100m)

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Appendix 1

TABLE 1 - Drill Hole Status: with the eU3O8 Determinations (116 holes drilled up to 3 May 2017)

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100 ppm eU3O8 cut-off over 1m
Hole ID From Thickness eU3O8 eU3O8 max Easting Northing RL TD (m)
(m) (m) (ppm) (over 1m)
TB3R001 7.0 1 177 177 509100 7464200 426 26
TB3R002 6.0 4 181 198 509100 7464100 425 31
TB3R003 5.0 2 161 174 509105 7464000 425 10
TB3R004 6.1 5 382 1389 508900 7464200 424 16
TB3R005 6.1 1 101 101 508900 7464100 424 36
9.1 1 133 133
TB3R006 No mineralisation above 100 ppm cut-off 508900 7464000 423 21
TB3R007 No mineralisation above 100 ppm cut-off 508903 7464399 424 26
TB3R008 6.0 3 223 352 508800 7464200 422 11
TB3R009 5.0 2 266 324 508800 7464100 422 16
TB3R010 5.0 1 101 101 508800 7464000 422 51
TB3R011 7.0 2 151 153 508800 7464400 422 26
14.0 2 211 245
TB3R012 7.1 3 261 335 508705 7464411 421 36
TB3R013 No mineralisation above 100 ppm cut-off 508700 7464500 421 41
TB3R014 5.1 3 177 252 508698 7464197 421 11
TB3R015 5.0 1 278 228 508700 7464100 420 11
8.0 1 447 447
TB3R016 4.0 3 488 892 508699 7464000 421 41
TB3R017 4.1 3 203 293 508608 7464205 420 16
11.1 1 172 172
TB3R018 3.1 2 275 323 508607 7464101 420 11
TB3R019 7.0 5 1194 4663 508600 7464400 420 21
TB3R020 7.0 1 216 216 508594 7464500 420 40
15.0 4 217 302
TB3R021 5.0 8 656 2001 508500 7464200 419 16
TB3R022 4.0 2 1045 1198 508500 7464100 419 11
TB3R023 6.0 3 180 233 508500 7464400 419 16
12.0 2 172 177
TB3R024 6.1 2 198 257 508500 7464500 419 26
16.1 3 192 232
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Appendix 1

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100 ppm eU3O8 cut-off over 1m
Hole ID From Thickness eU3O8 eU3O8 max Easting Northing RL TD (m)
(m) (m) (ppm) (over 1m)
TB3R025 0.1 11 422 2443 508398 7464400 417 26
TB3R026 5.1 4 203 294 508400 7464500 417 21
TB3R027 6.1 2 129 146 508400 7464600 417 26
TB3R028 5.1 4 253 413 508400 7464700 417 41
TB3R029 8.1 1 154 154 508400 7464800 417 26
TB3R030 5.1 5 418 517 508398 7464200 417 30
TB3R031 5.1 2 301 441 508302 7464200 417 51
TB3R032 6.1 2 168 191 508307 7464400 417 11
TB3R033 5.1 3 229 285 508303 7464500 416 16
10.1 1 281 281
13.1 1 103 103
TB3R034 6.2 3 202 317 508300 7464600 416 21
15.2 3 530 1012
TB3R035 7.0 1 123 123 508298 7464700 416 26
TB3R036 No mineralisation above 100 ppm cut-off 508300 7464800 416 41
TB3R037 No mineralisation above 100 ppm cut-off 508300 7465000 416 26
TB3R038 6.1 1 110 110 508200 7465000 415 16
8.1 3 118 183
TB3R039 No mineralisation above 100 ppm cut-off 508200 7465100 415 35
TB3R040 5.1 4 313 459 508195 7464798 415 37
TB3R041 5.1 4 243 358 508200 7464700 415 16
TB3R042 No mineralisation above 100 ppm cut-off 508199.9 7464600 415 13
TB3R043 6.1 2 181 246 508100 7464801 414 31
TB3R044 5.1 5 389 1108 508100 7464700 414 16
TB3R045 5.1 6 281 447 508103 7465000 413 19
TB3R046 5.1 6 218 507 508100 7465100 413 16
TB3R047 4.1 3 236 306 508103 7464399 414 13
TB3R048 No mineralisation above 100 ppm cut-off 508098.3 7464200 415 7
TB3R049 6.1 1 241 241 508000 7464200 414 16
TB3R050 9.1 5 516 1179 507999 7464400 413 16
TB3R051 5.1 5 175 240 507996 7464801 413 22
16.1 4 219 343
TB3R052 4.1 5 279 414 508000 7464700 413 13
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Appendix 1

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100 ppm eU3O8 cut-off over 1m
Hole ID From Thickness eU3O8 eU3O8 max Easting Northing RL TD (m)
(m) (m) (ppm) (over 1m)
TB3R053 4.1 6 214 287 508000 7465000 412 31
12.1 1 126 126
TB3R054 5.1 3 320 557 508000 7465100 412 13
TB3R055 4.1 12 203 364 507899 7465000 411 40
TB3R056 4.1 10 245 655 507897 7465101 411 28
TB3R057 4.1 7 262 453 507900 7464800 411 34
16.1 1 100 100
TB3R058 4.1 9 149 212 507900 7464700 412 28
TB3R059 15.1 3 335 396 507900 7464400 413 28
TB3R060 6.1 1 218 218 507899 7464199 413 19
TB3R061 7.1 2 174 236 507800 7464200 412 13
TB3R062 6.1 14 999 5459 507799 7464400 411 34
22.1 2 279 289
31.1 1 108 108
TB3R063 4.1 10 152 312 507800 7464800 410 31
TB3R064 5.1 10 227 597 507800 7464700 411 22
17.1 1 106 106
TB3R065 5.1 8 258 386 507799 7465000 410 43
TB3R066 6.1 13 545 2367 507698 7465000 409 40
TB3R067 6.1 9 232 404 507700 7464800 409 28
TB3R068 7.1 5 265 402 507700 7464700 410 22
14.1 2 106 107
TB3R069 21.2 2 413 463 507700 7464400 410 28
TB3R070 No mineralisation above 100 ppm cut-off 507700 7464200 411 31
TB3R071 16.1 1 142 142 507600 7464200 410 37
TB3R072 14.2 1 123 123 507600 7464400 409 28
22.2 2 151 190
TB3R073 9.1 4 160 252 507601 7464800 408 31
TB3R074 6.1 12 1163 5514 507601 7465000 408 40
TB3R133 No mineralisation above 100 ppm cut-off 509098 7463901 425 16
TB3R138 3.0 2 428 652 508604 7464000 420 41
TB3R139 3.0 1 106 106 508600 7463904 421 26
TB3R140 No mineralisation above 100 ppm cut-off 508600 7464600 420 36
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Appendix 1

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100 ppm eU3O8 cut-off over 1m
Hole ID From Thickness eU3O8 eU3O8 max Easting Northing RL TD (m)
(m) (m) (ppm) (over 1m)
TB3R141 3.1 1 102 102 508498 7464000 419 51
TB3R144 5.1 2 119 136 508500 7464600 419 37
TB3R145 No mineralisation above 100 ppm cut-off 508400 7464100 417 43
TB3R148 No mineralisation above 100 ppm cut-off 508300 7464100 417 37
TB3R152 6.1 2 171 189 508200 7464500 415 16
TB3R153 6.0 2 135 160 508203 7464397 415 10
TB3R154 5.1 6 212 465 508100 7464500 414 16
TB3R156 No mineralisation above 100 ppm cut-off 508202 7464206 416 13
TB3R158 No mineralisation above 100 ppm cut-off 508000 7464100 414 46
TB3R159 6.0 5 299 443 507999 7464500 413 22
TB3R160 7.1 6 176 463 507905 7464499 412 15
TB3R162 20.1 2 212 276 507802 7464100 413 46
TB3R163 No mineralisation above 100 ppm cut-off 507801 7464500 411 13
TB3R164 5.1 12 1239 7123 507800 7465101 410 22
TB3R165 7.1 8 405 1039 507700 7465100 408 22
TB3R166 10.1 6 327 618 507698 7464501 410 22
TB3R169 11.1 4 163 236 507600 7464500 409 16
TB3R170 8.1 3 220 278 507600 7464700 409 25
20.1 1 113 113
TB3R171 7.1 9 364 857 507599 7465100 407 28
TB3R427 5.1 3 219 281 508098 7465200 413 16
TB3R428 6.1 2 108 110 508100 7465300 413 13
TB3R429 5.1 6 422 608 508000 7465200 412 16
11.2 3 124 132
TB3R430 5.1 3 186 280 508000 7465300 412 10
TB3R431 5.1 4 347 431 507900 7465200 411 13
TB3R432 5.1 7 169 228 507901 7465295 411 16
TB3R433 8.1 8 257 471 507800 7464600 411 19
TB3R434 10.2 5 160 290 507700 7464600 410 25
17.2 4 112 177
TB3R435 12.1 1 454 454 507600 7464600 409 16
TB3R436 6.1 9 264 536 507800 7465200 409 25
TB3R437 6.1 1 154 154 507800 7465300 409 16
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Appendix 1

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100 ppm eU3O8 cut-off over 1m
Hole ID From Thickness eU3O8 eU3O8 max Easting Northing RL TD (m)
(m) (m) (ppm) (over 1m)
9.1 1 151 154
TB3R438 6.1 5 174 327 507700 7465300 408 16
TB3R439 7.2 8 296 606 507705 7465200 409 22
TB3R440 7.1 9 227 440 507600 7465200 407 22
TB3R441 7.1 9 329 725 507600 7465200 407 22
TB3R442 7.1 5 193 268 507600 7465400 407 19
TB3R930 5.1 6 360 902 508096 7464597 414 16
TB3R931 5.1 5 187 297 508007 7464590 413 19
TB3R932 6.1 8 456 1119 507906 7464588 412 25
17.1 3 613 1269
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Appendix 1

TABLE 2 - Drill Hole Status: additional 28 holes (making 144 holes in total) drilled from 3 to 15 May 2017 but without eU3O8 determination. Anomalous mineralised zones indicated by gamma counts per second (cps) from down hole logs

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Down Hole Gamma Counts (inside
Gamma max Hole Location (DGPS)
rods)
Average
Thickness From TD
Hole ID From (m) counts. cps Easting Northing RL
(m) (m) (m)
(cps)
TB3R443 8.4 3.7 206 8.9 285 507600 7465500 406 14
TB3R444 5.6 2.3 193 7.6 250 507700 7465400 408 11
TB3R445 7.5 0.2 156 7.6 187 507799 7465400 409 11
TB3R446 6.8 2.1 225 7.9 371 507900 7465400 410 11
TB3R447 8.1 9.5 324 17.1 1483 507502 7465200 406 21
TB3R448 8.4 3.7 483 10.6 764 507500 7465300 406 16
TB3R449 No mineralisation above 150cps cut-off 507500 7465400 406 11
TB3R172 7.4 12.5 729 17.4 3157 507500 7465100 406 31
TB3R078 No mineralisation above 150cps cut-off 507496 7464500 408 26
TB3R450 14.3 1.1 685 14.6 1591 507500 7464600 408 21
TB3R173 11.9 1.0 306 12.6 596 507499 7464700 407 21
TB3R076 13.4 0.7 171 13.4 233 507501 7464800 408 36
TB3R075 7.4 8.7 394 10.1 2755 507501 7465000 407 36
TB3R077 No mineralisation above 150cps cut-off 507502 7464401 409 26
TB3R079 No mineralisation above 150cps cut-off 507499 7464201 409 46
TB3R083 18.2 5.0 503 21.8 3681 507400 7464200 409 56
TB3R084 No mineralisation above 150cps cut-off 507400 7464400 408 46
TB3R179 22.4 1.0 343 23.1 869 507400 7464100 409 56
TB3R308 21.7 0.5 511 21.9 915 507400 7464000 409 46
TB3R180 No mineralisation above 150cps cut-off 507400 7464500 407 41
TB3R451 18.8 0.7 145 18.9 232 507400 7464600 407 36
TB3R181 13.6 0.1 133 13.6 153 507400 7464700 406 41
9.7 1.5 158 10.8 187
TB3R085 507400 7464800 407 41
15.2 0.1 139 15.2 161
TB3R183 8.7 7.8 307 13.7 1352 507400 7465000 406 31
TB3R452 8.0 5.3 149 8.4 355 507400 7465200 405 21
TB3R238 8.7 4.0 182 11.0 308 507400 7465300 405 16
TB3R453 8.9 1.4 211 9.6 313 507400 7465400 405 16
TB3R454 9.3 1.2 174 10.3 285 507400 7465500 405 14
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Appendix 2: Table 1 Report (JORC Code 2012 addition)

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

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

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Criteria JORC Code explanation  Commentary
Sampling techniques  Nature and quality of sampling (eg cut channels, random  The current drilling relies only on U3O8 values derived from down-hole total
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Sampling techniques 	Nature and quality of sampling (eg cut channels, random		The current drilling relies only on U3O8values derived from down-hole total
	chips, or specific specialised industry standard measurement		gamma counting (eU3O8). First geochemical assay data are expected towards
	tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample		the end of the June quarter. Previous drill data used in this report includes both geochemical assay data (U3O8) and down hole gamma equivalent uranium derived values (eU3O8). Appropriate factors were applied to all downhole gamma counting results to
	representivity and the appropriate calibration of any		make allowance for drill rod thickness, gamma probe dead times and
	measurement tools or systems used.		incorporating all other applicable calibration factors.
	Aspects of the determination of mineralisation that are Material to the Public Report.	Total gamma eU3O8
	In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where	 	33 mm Auslog total gamma probes were used and operated by company personnel. Gamma probes were calibrated at Pelindaba, South Africa, in May 2007 and in December 2007.
	there is coarse gold that has inherent sampling problems.		Between 2008 and 2013 sensitivity checks were conducted by periodic re-
	Unusual commodities or mineralisation types (eg submarine		logging of a test hole (Hole-ALAD1480) to confirm operation.
	nodules) may warrant disclosure of detailed information.		Auslog probes were re-calibrated at the calibration pit located at Langer
			Heinrich Mine site in December 2014 and again in May 2015.
			Three probes (T010, T030 and T165) which are used at the current program
			were calibrated again at the Langer Heinrich calibration pit in early April 2017
			shortly after the start of the current drilling program.
			During drilling, probes were checked daily against a standard source. Majority
			of probing was done with probe T010,T030 and T165.
			Gamma measurements were taken at 5 cm intervals at a logging speed of
			approximately 2 m per minute.
			Probingwas done immediatelyafter drillingmainlythrough the drill rods and in

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Appendix 2: Table 1 Report (JORC Code 2012 addition)

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Criteria JORC Code explanation  Commentary
some cases in the open holes. Rod factors have be established once
sufficient in rod and open hole data were available to compensate for the
reduced gamma counts when logging was done through the rods. No
correction for water was done. The drill holes were dry.
 All gamma measurements were corrected for dead time which is unique to
each probe.
 All corrected (dead time and rod factor) gamma values were converted to
equivalent eU3O8 values over the same intervals using the probe-specific K-
factor.
 The corrections and conversions to eU3O8 ppm values were carried out by
Resource Potentials, a Perth based geophysics consulting group that has the
required expertise in this area.
 Disequilibrium studies on 22 samples by ANSTO Minerals in 2008 confirmed
that the U [238] decay chains of the wider Tumas deposit are within an analytical
error of ± 10%, in secular equilibrium.
Chemical assay data
 Geochemical samples are currently being derived from Reverse Circulation
(RC) drilling at intervals of 1 m. Samples are being spilt at the drill site using
either a riffle or cone splitter to obtain a 1 to 4 kg sample from which 90 g will
be pulverized to produce a subset for XRF-analysis.
 It is planned that 10 to 20% of the mineralisation from the Tumas 3 drilling will
be assayed for U3O8 by loose powder XRF or ICP-MS.
 In the 2014 drill program 240 samples were taken for confirmatory assay and
submitted to Bureau Veritas laboratory in Swakopmund for U3O8 ICP-MS
following the procedure above.
 These previous assay results confirm equivalent uranium grades correctly
correlated to the assay results and remain within a statistically acceptable
margin of error.
Drilling techniques  Drill type (e.g. core, reverse circulation, open-hole hammer,  RC drilling is being used for the Tumas 3 drilling program.
rotary air blast, auger, Bangka, sonic, etc.) and details (e.g.
core diameter, triple or standard tube, depth of diamond tails,
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Appendix 2: Table 1 Report (JORC Code 2012 addition)

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Criteria JORC Code explanation  Commentary
face-sampling bit or other type, whether core is oriented and  All holes are being drilled vertically and intersections measured present true
if so, by what method, etc.). thicknesses.
Drill sample recovery  Method of recording and assessing core and chip sample  Drill chip recoveries are good at around 90%.
recoveries and results assessed.  Drill chip recoveries were assessed by weighing 1 m drill chip samples at the
 Measures taken to maximise sample recovery and ensure
drill site. Weights were recorded in sample tag books.
representative nature of the samples.  Sample loss was minimized by placing the sample bags directly underneath
 Whether a relationship exists between sample recovery and
cyclone/splitter
grade and whether sample bias may have occurred due to
preferential loss/gain of fine/coarse material.
Logging  Whether core and chip samples have been geologically and  All drill holes are being geologically logged.
geotechnically logged to a level of detail to support  The logging is qualitative in nature. The lithology type is being determined for
appropriate Mineral Resource estimation, mining studies and
all samples.
metallurgical studies.
 Whether logging is qualitative or quantitative in nature. Core  Other parameters routinely logged include colour, colour intensity, weathering,
oxidation, grain size, carbonate (CaCO3) content, sample condition (wet, dry)
(or costean, channel, etc.) photography.
 The total length and percentage of the relevant intersections and total gamma count (by Rad-eye monitor).
logged.  Lithology codes were used to generate wireframes for the paleontography of
the palaeochannel.
 This information was used in planning drill hole locations.
Sub-sampling  If core, whether cut or sawn and whether quarter, half or all  A portable 2-tier (75%/25%) splitter is used to treat a full 1m sample from the
techniques and core taken. cyclone into an appropriate size assay sample. All sampling was dry.
sample preparation  If non-core, whether riffled, tube sampled, rotary split, etc and  The above sub-sampling techniques are common industry practice and
whether sampled wet or dry.
appropriate.
 For all sample types, the nature, quality and appropriateness
 Sample sizes are considered appropriate to the grain size of the material
of the sample preparation technique.
 Quality control procedures adopted for all sub-sampling being sampled.
stages to maximise representivity of samples.  In field duplicates will be inserted into the assay batch at an approximate rate
 Measures taken to ensure that the sampling is representative of one for every 10 samples which is compatible with industry norm.
of the in situ material collected, including for instance results
for field duplicate/second-half sampling.
 Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data  The nature, quality and appropriateness of the assaying and  The analytical method employed will be XRF. The technique is industry
laboratory procedures used and whether the technique is standard and considered appropriate.
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Appendix 2: Table 1 Report (JORC Code 2012 addition)

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Criteria JORC Code explanation  Commentary
and laboratory tests considered partial or total.  The analytical method employed for the 2014 drill program was ICP-MS which
 For geophysical tools, spectrometers, handheld XRF is also considered industry standard and appropriate as well.
instruments, etc, the parameters used in determining the  Downhole gamma tools were used as explained under ‘Sampling techniques’.
analysis including instrument make and model, reading
This is the principal evaluating technique.
times, calibrations factors applied and their derivation, etc.
 Nature of quality control procedures adopted (e.g. standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (i.e. lack of bias) and precision
have been established.
Verification of  The verification of significant intersections by either  Geology was directly recorded into a tablet in the field and sample tag books
sampling and independent or alternative company personnel. filed in at the drill site.
assaying  The use of twinned holes.  The drill data of those logs and tag books (lithology, sample specifications
 Documentation of primary data, data entry procedures, data
etc.) is transferred by designated personnel into a geological database.
verification, data storage (physical and electronic) protocols.
 Discuss any adjustment to assay data.  Twinning RC holes was not considered due to the high variability in grade
distribution.
 Equivalent eU3O8 values have been calculated from raw gamma files by
applying calibration factors and casing factors where applicable .
 The adjustment factors were stored in the database.
 Equivalent U3O8 data will be composited to 1m intervals.
 The ratio of eU3O8 vs assayed U3O8 for matching composites will be used to
quantify the statistical error.
Location of data  Accuracy and quality of surveys used to locate drill holes  The collars are being surveyed by in-house operators using a differential
points (collar and down-hole surveys), trenches, mine workings and GPS.
other locations used in Mineral Resource estimation.  All drill holes are vertical and shallow; therefore, no down-hole surveying was
 Specification of the grid system used.
required.
 Quality and adequacy of topographic control.
 The grid system is World Geodetic System (WGS) 1984, Zone 33.
Data spacing and  Data spacing for reporting of Exploration Results.  The data spacing and distribution is optimized along channel direction. The
distribution  Whether the data spacing and distribution is sufficient to drill grid is close to 100m by 100m in EW and NS rectangular directions
establish the degree of geological and grade continuity following the main target channel.
appropriate for the Mineral Resource and Ore Reserve  The drill pattern is considered sufficient to eventually establish an inferred
estimation procedure(s) and classifications applied.
Mineral Resource.
 Whether sample compositing has been applied.
 The total gamma count data, which is recorded at 5 cm intervals, was used to
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Appendix 2: Table 1 Report (JORC Code 2012 addition)

Criteria	JORC Code explanation		Commentary
			calculate equivalent uranium values (eU3O8) which will be composited to 1 m composites down hole.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 	Uranium mineralisation is strata bound and distributed in fairly continuous horizontal layers. Holes are being drilled vertically and mineralised intercepts represent the true width. All holes are sampled down-hole from surface. Geochemical samples are being collected at 1 m intervals. Total-gamma count data is being collected at 5 cm intervals.
Sample security	 The measures taken to ensure sample security.	 	1m RC drill chip samples are being prepared at the drill site. The assay samples are stored in plastic bags. Sample tags are placed inside the bags. The samples are placed into plastic crates and transported from the drill site to RUN’s site premises in Swakopmund by company personnel, prior to analyses and from there to the external laboratories when used. Upon completion of the assay work the remainder of the drill chip sample bags for each hole will be packed back into crates and then stored in designated containers in chronological order, locked up and kept safe at RUN’s dedicated sample storage yard at Rocky Point located outside Swakopmund.
Audits or reviews	 The results of any audits or reviews of sampling techniques		D. M. Barrett (PhD MAIG) conducted an audit of gross count gamma logging
	and data.		procedures and log reduction methods used by Deep Yellow Limited.
			He concludes his audit commenting: “In summary, it is my belief that the
			equivalent uranium grades reported by Reptile from their gamma logging
			program are reliable and are probably within a few percent to the true grade”.

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Appendix 2: Table 1 Report (JORC Code 2012 addition)

Section 2 Reporting of Exploration Results

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

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Criteria JORC Code explanation Commentary
Mineral tenement and land  Type, reference name/number, location and  The work to which the Exploration Results relate was undertaken on exclusive
tenure status ownership including agreements or material issues prospecting grant EPL3496 (Tumas Zone 3).
with third parties such as joint ventures, partnerships,  The EPL was originally granted to Reptile Uranium Namibia (Pty) Ltd (RUN) in
overriding royalties, native title interests, historical
2006. The EPLs are in good standing and are valid until 05 June 2017. A
sites, wilderness or national park and environmental
renewal application has been submitted to the MME in March 2017
settings.
 The security of the tenure held at the time of  The EPL is located within the Namib Naukluft-National Park in Namibia.
reporting along with any known impediments to  The EPL is subject to an agreement with a Namibian Black Empowerment
obtaining a licence to operate in the area. partner whereby the partner has the right to acquire 5% of the project for
historical costs.
 There are no known impediments to the project beyond Namibia’s standard
permitting procedures.
Exploration done by other  Acknowledgment and appraisal of exploration by  Prior to RUN’s ownership of these EPL, extensive work was conducted by
parties other parties. Anglo American Prospecting Services (AAPS), General Mining and
Falconbridge in the 1970s.
 Assay results from the historical drilling are available to RUN on paper logs.
They were not captured digitally and were not used for resource estimation.
Geology  Deposit type, geological setting and style of  Tumas 3 mineralisation occurs as secondary carnotite enrichment of variably
mineralisation. calcretised palaeochannel and sheet wash sediments and adjacent
weathered bedrock.
 Uranium mineralisation at Tumas is surficial, stratabound and hosted by
Cenozoic and possibly Tertiary sediments, which include from top to bottom
scree sand, gypcrete, calcareous sand and calcrete.
 The majority of the mineralisation is hosted in calcrete. Locally, the underlying
weathered Proterozoic bedrock is occasionally also mineralized.
Drill hole Information  A summary of all information material to the  144 holes for a total of 3611m have been drilled up to 15 May 2017
understanding of the exploration results including a  All holes were drilled vertically and intersections measured present true
tabulation of the following information for all Material
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Appendix 2: Table 1 Report (JORC Code 2012 addition)

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Criteria JORC Code explanation Commentary
drill holes: thicknesses.
o easting and northing of the drill hole collar  The Tables in Appendix 1 and 2 lists the holes, their locations and relevant
o elevation or RL (Reduced Level – elevation above results.
sea level in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
 If the exclusion of this information is justified on the
basis that the information is not Material and this
exclusion does not detract from the understanding of
the report, the Competent Person should clearly
explain why this is the case.
Data aggregation methods  In reporting Exploration Results, weighting averaging  5 cm gamma intervals were composited into down hole intervals showing
techniques, maximum and/or minimum grade greater than 150 cps down hole gamma counts over 1m.
truncations (eg cutting of high grades) and cut-off  No grade truncations were applied.
grades are usually Material and should be stated.
 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 between  These relationships are particularly important in the  The mineralisation is sub-horizontal and all drilling vertical, therefore,
mineralisation widths and reporting of Exploration Results. mineralised intercepts are considered to represent true widths.
intercept lengths  If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be
reported.
 If it is not known and only the down hole lengths are
reported, there should be a clear statement to this
effect (eg ‘down hole length, true width not known’).
Diagrams  Appropriate maps and sections (with scales) and  Appendix (Tables 1 and 2) show all drill holes including anomalous intervals
tabulations of intercepts should be included for any  Maps and sections are included in the text
significant discovery being reported These should
include, but not be limited to a plan view of drill hole
collar locations and appropriate sectional views.
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Appendix 2: Table 1 Report (JORC Code 2012 addition)

Criteria	JORC Code explanation	Commentary
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Comprehensive reporting of all Exploration Results was practiced throughout the program.
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 and Tumas deposit was subject to extensive drilling in the 1970’s and 1980’s by Anglo American Prospecting Services, Falconbridge and General Mining. An airborne EM survey conducted in 2009 better defined the broad palaeochannel system. Downhole gamma-gamma density logging for bulk density was conducted by Terratec on the Tumas 1 and 2 resources.
Further work	 The nature and scale of planned further work (eg	Further drilling work is planned west and east of the currently defined Tumas 3
	tests for lateral extensions or depth extensions or	Zone.
	large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological	Further extension drilling is expected as mineralisation is open along strike to the east and west.
	interpretations and future drilling areas, provided this
	information is not commercially sensitive.

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