DEEP YELLOW LIMITED — Capital/Financing Update 2021

Oct 7, 2021

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NEWS RELEASE

8 October 2021

REPTILE BASEMENT TARGET OFFERS RESOURCE UPGRADE OPPORTUNITY – REVISED TO INCLUDE ADDITIONAL JORC DISCLOSURE

Deep Yellow Limited (ASX:DYL) ( Deep Yellow or Company ) advises that on 7 October 2021 it released an announcement to the market noting that as a result of a review of existing exploration data management believe that there is significant upside for the additional discovery of additional mineral resources.

The announcement made reference to previous exploration work carried out by the Company in 2012/13 and to the existing JORC Mineral Resource estimate for Omahola.

The announcement is appended with additional disclosures to accommodate an expanded competent person reference for the exploration results and the Mineral Resource estimate.

This ASX announcement was authorised for release by Mr John Borshoff, Managing Director/CEO, for and on behalf of the Board of Deep Yellow Limited.

For further information contact:

John Borshoff Managing Director/CEO T: +61 8 9286 6999 E: john.borshoff@deepyellow.com.au

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NEWS RELEASE

7 October 2021

REPTILE BASEMENT TARGET OFFERS RESOURCE UPGRADE OPPORTUNITY

HIGHLIGHTS

• Tumas DFS resource upgrade drilling completed, now enabling consideration of a 20+ years LOM operation

• Tumas Project remains the ongoing priority, with key focus on progression and completion of the current DFS

• Exploration can now start on the next major Reptile exploration target, the Omahola Project, to unlock further value

• Previous exploration between 2009-2013 at Omahola established a Measured, Indicated and Inferred Resource base of 45Mlb at 420ppm U3O8

• Sparse pre-2016 semi-regional drilling indicates strong potential for additional discoveries. Best intersections from previous semi-regional drilling include:

• INCR454: 65m @ 550ppm eU3O8 from 1m

• INCR430: 11m @ 1973ppm eU3O8 from 44m

• INCH138: 14m @ 633ppm eU3O8 from 38m

• ALAD1612: 24m @ 258ppm eU3O8 from 77m

• A shallow RC drilling program of 7,100m and 200 holes commenced 5 October and is aimed at identifying new mineralised areas outside existing deposits for follow-up drilling

INTRODUCTION

Since late 2016, current management of Deep Yellow Limited (ASX: DYL) ( Deep Yellow ) have focused on the progression of a dual-pillar growth strategy involving organic growth of the Company’s Namibian project portfolio and inorganic growth through targeted merger and acquisitions, to establish a global, multi-platform 5-10Mlb per annum, low-cost, tier one uranium producer.

The Company has experienced excellent growth through the successful execution of its unique strategy, particularly through the organic pillar and exploring and developing shallow targets occurring within the Tumas palaeochannel (located within EPLs 3496 and 3497), which has resulted in a near four-fold increase in the Mineral Resource, demonstrating similar characteristics to Langer Heinrich-style deposits (see Figure 1).

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The Tumas Project is the priority focus for Deep Yellow with the continued progression of the DFS, which is expected to be completed during the latter part of CY2022.

From 2009 to 2013 previous management of Deep Yellow identified significant uranium mineralisation in basement lithologies, having alaskite association of Rössing/Husab style. Three discrete deposits were discovered, collectively called the Omahola Project and located on EPL 3496, which is held by Deep Yellow through its wholly owned subsidiary Reptile Uranium Namibia (Pty) Ltd ( RUN ).

OMAHOLA BASEMENT PROJECT (OMAHOLA)

Omahola (Figure 1) has a current Measured, Indicated and Inferred Resource base of 45Mlb U3O8 at 420ppm (Annexure 1), occurring from a depth of 20m to 250m, which is typical for these types of deposits. Omahola provides Deep Yellow with another significant exploration target due to the significant accumulation of uranium and the partially drilled nature of the extensive prospective target zone extensions which remain underexplored, with potential for resource expansion.

Exploration work will focus on establishing the full potential of the basement targets associated with the Omahola project to unlock further value for Deep Yellow.

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Alaskite Alley
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Figure 1: EPLs 3496, 3497 showing Tumas deposits and main prospect locations over palaeochannels.

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Deep Yellow will commence exploration through initiation of a shallow RC drilling program at Omahola, targeting the NW portion of EPL 3496.

Omahola occurs within the highly prospective “Alaskite Alley” corridor within which major uranium deposits including Rössing, Husab, Etango and Valencia deposits are located. These deposits contain in excess of 800Mlb U3O8 with the Rössing mine alone having produced in excess of 200Mlb U3O8.

Omahola occupies a 35 x 14km northwest-southeast trending zone within the Alaskite corridor (see Figure 1).

Uranium mineralisation at Omahola occurs across three deposits including Ongolo, MS7 and Inca and amounts to a Measured, Indicated and Inferred Resource base of 45.1Mlb U3O8 at 420ppm as shown in Figure 2.

Uranium mineralisation is associated with sheeted leucogranites, known locally as alaskites, and hydrothermal skarn formation. Details of the current JORC Mineral Resource status of Omahola are listed in Appendix 1.

Results of Historic Data Re-Interpretation

Historical results from the sparse, pre-2016 semi-regional drilling program carried out away from the known deposits, based on >1km spaced lines, indicates very strong potential for new discoveries to be made along this highly prospective zone (Figure 2). In several areas, the previous drilling intersected significant mineralisation in multiple drillholes.

A comprehensive review of existing data is showing both the alaskite and skarn hosted uranium mineralisation is fundamentally structurally controlled. Apart from presence of mineralised intersections, key criteria guiding delineation of this prospective zone includes the importance of structurally weak zones e.g. marble–gneiss contacts and the localisation of deposits near fold hinge zones. Approximately 15km of the favourable horizon has been adequately tested. The re-interpretation has shown the remaining area has clearly been inadequately tested, leaving significant scope for both expansion of existing deposits and discovery of new deposits in what is seen to be a major prospective zone of 50 km strike length.

Re-evaluation of existing data indicates significant upside for the discovery of additional resources over a medium-term timeframe.

A study of the historical drill results to identify the minimum drilling depth required to isolate the geochemical footprint of the existing deposits (Ongolo, MS7, Inca), showed that general outlines of the deposits are recognisable at a drilling depth of 25m.

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Figure 2: Omahola Project area showing deposits and significant regional multiple drillhole intercepts on magnetic imagery as well as planed drill hole locations

SHALLOW RC DRILLING PROGRAM

To date, only a minor strike length of prospective lithological contacts has been drill-tested. To identify areas hosting potential deposits, Deep Yellow will complete a shallow 7,100m ~200hole program on generally 400m x 50m hole spacing drilling to a 25m depth.

The drill program commenced on 5 October and, as a first pass, will cover the structural target zone occurring between the known deposits of the Omahola Project which are under cover extending over a 10km strike length toward the SSE. This program is expected to be completed by early December 2021.

Concurrent Work

Together with the shallow drilling program, the following workstreams have also been commenced at Omahola to assist in reaching a better understanding of the prospective basement target zone:

• i. Review and digitisation of existing geological mapping with targeted field verification.

• ii. Photography of selected core holes aimed at sampling key intersections for further investigation, to ascertain the relationship between uranium and alteration, mineralogy/geochemistry, and structure.

• iii. Resource re-estimation work to upgrade the currently identified uranium resources from JORC 2004 to JORC 2012 reporting status.

Yours faithfully

JOHN BORSHOFF Managing Director/CEO Deep Yellow Limited

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This ASX announcement was authorised for release by Mr John Borshoff, Managing Director/CEO, for and on behalf of the Board of Deep Yellow Limited.

For further information contact:

John Borshoff Managing Director/CEO

T: +61 8 9286 6999 E: john.borshoff@deepyellow.com.au

About Deep Yellow Limited

Deep Yellow Limited is a differentiated, advanced uranium exploration company, in predevelopment phase, implementing a contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company’s uranium projects in Namibia and the pursuit of accretive, counter-cyclical acquisitions to build a global, geographically diverse asset portfolio. A PFS was completed in early 2021 on its Tumas Project in Namibia and a Definitive Feasibility Study commenced February 2021. The Company’s cornerstone suite of projects in Namibia is situated within a top-ranked African mining destination in a jurisdiction that has a long, well-regarded history of safely and effectively developing and regulating its considerable uranium mining industry.

ABN 97 006 391 948

Unit 17, Spectrum Building 100–104 Railway Road Subiaco, Western Australia 6008

PO Box 1770

Subiaco, Western Australia 6904

DYL: ASX & NSX (Namibia) DYLLF: OTCQX

www.deepyellow.com.au @deepyellowltd deep-yellow-limited

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Competent Person’s Statement

The information in this announcement as it relates to exploration results and Mineral Resource estimates was compiled by Martin Hirsch, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Hirsch, who is currently the Manager, Resources & Pre-Development for Reptile Mineral Resources and Exploration (Pty) Ltd (RMR), 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 matters based on the information in the form and context in which it appears. M Hirsch holds shares in the Company.

The JORC 2004 classified resources have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, however as noted these are currently being reviewed to bring all resources up to JORC 2012 standard.

Where exploration results previously reported by the Company are noted reference is made to several prior ASX releases including the following: 30 April 2012; 27 July 2012; 30 October 2012; 30 January 2013 and 4 February 2013. It is noted that this information was first reported under JORC 2004 and has not been updated since to comply with JORC 2012 on the basis that it has not materially changed since it was last reported.

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APPENDIX 1

JORC Resources

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Cut-off Tonnes U3O8 U3O8 U3O8 Resource Categories (Mlb U3O8)
Deposit Category
(ppm
U3O8) (M) (ppm) (t) (Mlb) Measured Indicated Inferred
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
Omahola Project Sub-Total 48.7 420 20,400 45.1 11.0 16.0 18.1
CALCRETE MINERALISATION Tumas 3 Deposit - JORC 2012
Tumas 3 Deposits ♦ Indicated 100 78.0 320 24,900 54.9 - 54.9 -
Inferred 100 10.4 219 2,265 5.0 - 5.0
Tumas 3 Deposits Total 88.3 308 27,170 59.9
Tumas 1 & 2 Project – JORC 2012
Tumas 1 & 2 Deposit ♦ Indicated 100 54.1 203 10,987 24.2 - 24.2 -
Tumas 1 & 2 Deposit ♦ Inferred 100 2.4 206 503 1.1 - - 1.1
Tumas 1 & 2 Project Total 56.5 203 11,499 25.3
Tumas 1E Project – JORC 2012
Tumas 1E Deposit ♦ Indicated 100 36.3 245 8,873 19.6 19.6
Tumas 1E Deposit ♦ Inferred 100 19.4 216 4,189 9.2 9.2
Tumas 1E Deposit Total 55.7 235 13,061 28.8
Sub-Total of Tumas 1, 2 and 3 200.6 258 51,736 114.1
Tubas Red Sand Project - 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
Tubas Red Sand Project Total 34.0 170 5,800 12.7
Tubas Calcrete Resource - JORC 2004
Tubas Calcrete Deposit Inferred 100 7.4 374 2,800 6.1 - - 6.1
Tubas Calcrete Total 7.4 374 2,800 6.1
Aussinanis Project - JORC 2004
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
Aussinanis Project Total 34.6 237 8,200 18.0
Calcrete Projects Sub-Total 276.6 248 68,536 150.9 - 105.5 45.3
GRAND TOTAL RESOURCES 325.3 273 88,936 196.0 11.0 121.5 63.4
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August 2021

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 originally calibrated at Pelindaba, South Africa in 2007. Recent calibrations were carried out at the Langer Heinrich Mine calibration facility in July 2018 and September 2019.

Sensitivity checks are conducted by periodic re-logging of a test hole to confirm operations.

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