DEEP YELLOW LIMITED — Interim / Quarterly Report 2010

Oct 27, 2009

==> picture [483 x 25] intentionally omitted <==

==> picture [483 x 25] intentionally omitted <==

==> picture [483 x 25] intentionally omitted <==

==> picture [483 x 25] intentionally omitted <==

Quarterly Report – 30 September 2009

Highlights

28 October 2009

Namibia

Highlights

• Drilling within the detailed INCA grid continued to intersect wide well-mineralised zones, e.g.:

Hole INCR230 121 metre intersection at 405 ppm eU3O8 from 64 metre Hole INCD15 50 metre intersection at 605 ppm eU3O8 from 40 metre Hole INCRD125 32 metre intersection at 624 ppm eU3O8 from 129 metre Hole INCR219 55 metre intersection at 502 ppm eU3O8 from 64 metre and 13 metre intersection at 642 ppm eU3O8 from 192 metre

• Reconnaissance drilling on the Tumas-Tubas palaeochannel system completed and detail drill-out for JORC Code resource estimate commenced on Tumas section.

• Reconnaissance drilling on three 4 to 6 km long lines across the strike of the stratigraphic horizons hosting the Rossing Uranium mine and Rossing South discovery has commenced.

• Resource Consultants appointed for JORC Code resource estimations on INCA, Tubas Red Sand and Aussinanis.

• Scoping on the INCA and Tubas Red Sand deposits well advanced and Engineering Consultants will be appointed shortly.

• The airborne geophysical survey on the Nova JV areas has been completed.

Level 1 329 Hay Street Subiaco WA 6008 / PO Box 1770 Subiaco WA 6904 Tel : 61 8 9286 6999 / Fax : 61 8 9286 6969 / ABN 97 006 391 948 Email: admin@deepyellow.com.au / Website: www.deepyellow.com.au

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

Australia

The current focussed drilling to delineate JORC Code mineral resources at various prospects in the Mount Isa district continues to achieve the primary objective by returning wide intercepts of ± 400 ppm U3O8 that are continuous to depth and which the Company believes is required for a viable open-pit mining operation.

Significantly, RC drilling at the Queens Gift Prospect has intersected ‘blind mineralisation’ at depth in the Eastern Zone with potential width and grade to sustain underground mining.

QUEENS GIFT PROSPECT

XRF chemical assays (cU3O8) from RC drilling at the Queens Gift Prospect continue to confirm and extend uranium mineralisation intersected in 2007/2008 programmes. Significant intercepts include:

• 19 metre at 502 ppm U3O8 from 64 metre

• 14 metre at 419 ppm U3O8 from 39 metre

• 45 metre at 344 ppm U3O8 from 152 metre

• 17 metre at 581 ppm U3O8 from surface

• **17 metre at 619 ppm U3O8 from 274 metre ***

• ‘Blind mineralisation’ in the Deep Eastern Zone

ISA WEST PROJECT

RC drilling at the Isa West Project is now complete (for 2009). Of significance are the deep intercepts at the Thanksgiving and Bambino Prospects at ± 200 metre vertical depth. Intercepts at the Thanksgiving Prospect include:

• 27 metre at 420 ppm U3O8 from 125 metre

• 39 metre at 394 ppm U3O8 from 183 metre

• 33 metre at 404 ppm U3O8 from 180 metre

and at the Bambino Prospect :

• 36 metre at 431 ppm U3O8 from 178 metre

• 26 metre at 406 ppm U3O8 from 190 metre

Corporate

• Cash position including liquid assets at 30 September 2009 - $42 million.

• Coffey Mining Pty Ltd has been appointed to carry out the JORC Code resource estimates for projects in the Mount Isa district. Modelling on the Bambino and Thanksgiving Prospects has already begun.

Page 2

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

JORC Resource Statement

A schedule of DYL’s JORC Resources, as previously released to ASX, is given below:

JORC RESOURCES

JORC RESOURCES	JORC RESOURCES	JORC RESOURCES	JORC RESOURCES	JORC RESOURCES	JORC RESOURCES	JORC RESOURCES	JORC RESOURCES	JORC RESOURCES
Deposit	Category	Tonne	U3O8 (ppm)	U3O8 (%)	U3O8 (kg/t)		U3O8 (t)	U3O8 (lb)
Reptile Uranium Namibia
Tubas #	Inferred	77,278,820	228	0.0228		0.228	17,620	38,852,100
Tumas*	Indicated	9,000,000	343	0.0343		0.343	3,087	6,806,835
Tumas*	Inferred	1,000,000	360	0.0360		0.360	360	793,800
Tubas Red Sand	Validating Data	-	-	-		-	-	-
Aussinanis	Validating Data	-	-	-		-	-	-
Inca	Drilling in Progress	-	-	-		-	-	-
Reptile Project Total		87,278,820	241	0.0241		0.241	21,067	46,452,735
Napperby Uranium Project
Napperby*	Inferred	9,340,000	359	0.0359		0.36	3,351	7,390,000
Napperby Project Total ‡		9,340,000	359	0.0359		0.36	3,351	7,390,000
TOTAL RESOURCES 96,618,820 253 0.0253 0.253 24,418 53,842,735

100 ppm cut-off Conversion 1 kg = 2.205 lb

• 200 ppm cut-off

‡ Napperby is subject to buy-out option agreement whereby Toro Energy Ltd can purchase the deposit

Page 3

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

Exploration - Namibia

DYL’s activities in Namibia are carried out by its wholly owned subsidiary Reptile Uranium Namibia (Pty) LTD (Reptile).

==> picture [331 x 371] intentionally omitted <==

Figure 1: Locality map showing Reptile’s 4 EPLs and projects, the 3 Nova JV EPLs plus uranium mines and projects held by other companies in the area.

SUMMARY AND STATISTICS

Drilling and Assaying

DRILLING SUMMARY	DRILLING SUMMARY
Project	Number of Holes	Total Metre Drilled
Palaeochannel drilling	1,289	25,606
Diamond on INCA	20	2,342
RC on INCA	69	11,777
Total	1,378	39,725

Page 4

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

Laboratory Performance Indicators

Job Description	July	August	September	TOTAL
Samples Received (total metre drilled for Julyto September 2009)	12,709	10,298	14,376	37,383
Samples Crushed	0	66	197	263
Samples Split	966	560	468	1,994
Samples Checked in Pb-Block	7,491	7,027	11,272	25,790
Samples > 10 CPS	1,257	1,620	1,833	4,710
Samples Weighed	1,216	1,720	2,371	5,307
Samplespacked & stored	7,491	6,976	6,479	20,946
Samples Milled	1,391	1,747	2,318	5,456
Samples Analysed (Repeats, QC’s & Daily checks included)	359	1,281	3,482	5,122
Sample results reported	92	813	3, 025	4,130

INCA PROJECT

Drilling within the detail grid continues with three RC and two DC rigs completing the drill-out of mineralisation in the shallow southern and deep northern zones. These holes have returned some impressive intersections during the quarter, including:

Hole	UTM East	UTM North	TD (m)	Dip	Azi	From (m)	To (m)	Interval (m)	eU3O8 ppm
INCD15	488878	7475738	92.3	-90	-	40	90	50	605
including						51	58	7	1,771
INCD20	488601	7476780	79.15	-90	-	43	71	28	735
including						43	55	12	1,339
INCR190	488906	7476706	259	-90	-	117	169	52	481
including						127	136	9	996
INCR223	489025	7476600	217	-90	-	71	111	40	420
including						71	85	14	981
INCR229	488600	7476725	130	-90	-	51	95	44	442
including						75	86	11	923
INCR230	488903	7476728	283	-90	-	64	185	121	405
including						125	147	-22	1,286
INCRD125	488950	7476700	278	-90	-	129	161	32	624
including						129	149	20	948
INCR219	488850	7476675	209	-90	-	54	132	78	376
including						54	119	65	439
including						64	119	55	502
Also including and open at depth due to hole failure						192	205	13	642

Page 5

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

The schematic south to north cross-section 488900E (Figure 2) indicates that it may be possible to economically strip and completely mine out the mineralised section by open-pit methods rather than go underground on the INCA Deeps section to the north. Resource estimation and modelling will ultimately determine those parameters as part of the feasibility study.

==> picture [479 x 184] intentionally omitted <==

==> picture [479 x 184] intentionally omitted <==

Figure 2: Schematic south to north cross-section on 488900E

Presently about three RC and five DC holes remain to be completed within the detail grid area. DYL has appointed MSA Consulting of South Africa as the consultants to complete the JORC Code resource estimation.

It is the opinion of the DYL technical team that a grade of 400 ppm U3O8 will suffice for a viable open-pit operation for the near-surface portion of the INCA project. The higher density of mineralised material due to the presence of abundant iron (up to an SG of five where magnetite is dominant) means less volume to be removed per tonne and there is also potential to sell the magnetite (iron) as well. DYL’s target is still for 8,000 to 10,000 tonne contained U3O8 to trigger a study into a mining operation to produce between 1,000 and 1,500 tonne of U3O8 per annum. Should this proceed, additional feed for the plant will be sourced from the Tubas Red Sand deposit some 10 kilometre to the south of INCA. Chemical and metallurgical trials are being conducted on both deposits and the various ore-types present and to date no show-stoppers have been encountered.

Page 6

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

==> picture [492 x 403] intentionally omitted <==

Figure 3: Status of INCA detail grid drilling showing various zones of mineralisation

PALAEOCHANNEL DRILLING

Reconnaissance drilling on the Tumas-Tubas palaeochannel system has been completed and drilling with 2 RC rigs is now being conducted within the Tumas EPL back towards the south to complete 50 by 50 metre drill-out of the mineralisation found to date (Figure 4). A completion date for the drilling and the JORC Code Resource estimation depend on results and how many holes are ultimately required to drill-off the mineralisation found and to complete the programme.

Page 7

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

==> picture [429 x 303] intentionally omitted <==

Figure 4: Area for detail RC drilling on the Tumas palaeochannel system

REGIONAL EXPLORATION

Reptile EPLs

A RC rig with good depth drilling capability is being used to drill test the prospectivity of the southern continuation of the stratigraphic belts which host the Rossing mine and exciting Rossing South discovery of Extract Resources immediately north of Reptile’s tenements. The holes are top-to-tail 60 degree angle towards the west across approximately 4 km long sections. Three lines are planned which will entail about 30,000 metre of drilling and take until about June 2010 to complete.

Nova JV

DYL is earning 65% in EPLs 3668, 3669 and 3670 through Reptile from Toro Energy’s subsidiary Nova Energy (Namibia) Pty Ltd). Application has been made for the renewal of the three EPLs.

The contracted +6,000 line kilometre heliborne electromagnetic, magnetic and radiometric geophysical survey over two of the three Nova JV EPLs is now complete. The purpose of the survey is to delineate surface radiometric anomalies; outline magnetic and electromagnetic anomalies and to facilitate mapping of prospective stratigraphic units under the extensive areas of desert sand cover. The JV is targeting secondary uranium mineralisation in palaeochannels and sheetwash sediments and primary mineralisation in metasomatically altered host rocks (as occur at INCA and in alaskites such as at Rossing and Rossing South).

Interpretation of the data will take about 3 months. Field checking of anomalies will occur during the first quarter 2010. Drilling should begin during second quarter 2010.

Page 8

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

Exploration - Australia

EXPLORATION SUMMARY

Mount Isa – 2009 RC Drilling Programme Summary

To date the Mount Isa 2009 RC drill programmes totals 152 holes for 21,622 metre and 6,568 samples collected. The RC programme has concluded at the Isa West and Queens Gift Prospects.

Table 1: Summary of 2009 RC drilling to date

Project	Prospect Name	No. RC Holes	Metre Drilled	Samples collected
Isa West	Bambino	46	6,138	1,901
IsaWest	EldoradoNorth	11	738	200
IsaWest	Thanksgiving	44	5,411	1,500
Isa West	Turpentine	10	822	358
IsaNorth	Queens Gift	41	8,513	2,609
	**Total **	**152 **	21,622	6,568

Table 2 - Summary of RC Drilling from July-October 2009

Project	Prospect Name	No. RC Holes	Metre Drilled	Samples collected
IsaWest	Bambino	31	4,494	1,377
Isa West	Thanksgiving	9	2,160	479
IsaNorth	Queens Gift	41	8,513	2,609
	**Total **	**81 **	**15,167 **	4,465

Coffey Mining Pty Ltd has been retained to carry out JORC Code resource estimates for five prospects within the Mount Isa District.

As previously announced, the 2009 RC and diamond drill programmes have primarily been focussed on proving to depth (~ 200 metre) shallow intersections of + 400 ppm U3O8 which DYL believe will sustain future open pit mining operations.

The various prospects comprise:

Isa West Project (earning 100% uranium rights from Xstrata) where the Thanksgiving and Bambino Prospects have been targeted RC and diamond drilling has been completed.

Prospector EPM 15070 – At the Queens Gift Prospect RC drilling has been completed for 2009. There remain six diamond drill holes for 800 m to supplement the 2008 core drilling programme.

Page 9

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

Ewen EPM 14916 – Slance NW and NE Prospects where the RC rig from the Queens Gift programme is scheduled to commence drilling a 30 hole – 3,700 metre drill programme over the two prospects. Diamond drilling comprising three holes for 350 metre is also planned on the two prospects. The current schedule will see the Ewen drilling completed in late November.

Coffey Mining have visited Mount Isa and carried out an audit of the drill rigs, the sampling procedures, the in-house QA/QC programme and DYL’s contract laboratory. In addition, each prospect has been visited and available drill core inspected in order to characterise the geology, alteration and structural setting of the uranium mineralisation. Database interrogation has also commenced for the Bambino and Thanksgiving Prospects with preliminary mineralisation envelopes being generated.

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

==> picture [483 x 27] intentionally omitted <==

Figure 5: Queensland Projects

ISA WEST PROJECT (earning 100% of uranium rights from Xstrata)

The planned RC drilling programme at Isa West was completed with a total of 111 RC holes for 13,109 metre and 3,959 samples being collected for assaying from the 2009 programme.

Page 10

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

Table 3: Summary of 2009 RC Drilling

Prospect Name	No. RC Holes	Metre Drilled	Samples Collected
Bambino	25	2,796	956
Eldorado North	11	738	200
Thanksgiving	35	3,251	1,021
Turpentine	10	822	358
Total	81	7,607	2,535

Detail drill results for the quarter have been released in ASX announcements on the 27 August and 15 October 2009. Summary tables highlighting significant results only are given below.

Bambino Prospect

• BBRC005 30 m at 410 ppm U3O8 from 36 m

• • BBRC006 25 m at 409 ppm U3O8 from 65 m • BBRC010 10 m at 537 ppm U3O8 from 78 m • BBRC018 15 m at 413 ppm U3O8 from 125 m • BBRC023 7 m at 422 ppm U3O8 from 106 m • BBRC025 11 m at 662 ppm U3O8 from 71 m • BBRC029 25 m at 532 ppm U3O8 from 107 m • BBRC030 27 m at 464 ppm U3O8 from 0 m • BBRC034 19 m at 411 ppm U3O8 from 113 m • BBRC035 11 m at 495 ppm U3O8 from 9 m • BBRC043 17 m at 428 ppm U3O8 from 201 m • BBRC044 11 m at 543 ppm U3O8 from 184 m • BBRC054 15 m at 509 ppm U3O8 from 194 m

Thanksgiving Prospect

• TGRC001 42 m at 400 ppm U3O8 from 15 m

• • TGRC007 9 m at 640 ppm U3O8 from 40 m • TGRC009 55 m at 555 ppm U3O8 from 27 m • TGRC015 11 m at 495 ppm U3O8 from 55 m • TGRC023 21 m at 490 ppm U3O8 from 51 m • TGRC030 10 m at 515 ppm U3O8 from 65 m • TGRC045 27 m at 420 ppm U3O8 from 125 m • TGRC046 27 m at 471 ppm U3O8 from 183 m • TGRC047 33 m at 404 ppm U3O8 from 180 m • TGRC051 18 m at 454 ppm U3O8 from 246 m

Page 11

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

As previously reported, the RC drilling at Bambino and Thanksgiving successfully outlined + 400 ppm U3O8 mineralisation down to ± 200 metre vertical depth at each prospect. An intensive QA/QC programme is being undertaken comprising internal check analysis and re-sampling and assay of drill cuttings from retention bags.

==> picture [435 x 199] intentionally omitted <==

==> picture [435 x 198] intentionally omitted <==

==> picture [435 x 199] intentionally omitted <==

Figure 6: Mount Isa District Geology and Prospects

Page 12

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

ISA NORTH PROJECT

Prospector EPM 15070 – Queens Gift Prospect

Detail results from the RC drill programme have previously been announced to the ASX (27 August, 15 October 2009).

Highlights from the drill programme are given below:

• DQRC-055 27 m at 569 ppm U3O8 from 79 m

• • DQRC-056 51 m at 422 ppm U3O8 from 8 m • DQRC-057 27 m at 408 ppm U3O8 from 74 m • DQRC-060 58 m at 449 ppm U3O8 from 74 m • DQRC-061 12 m at 483 ppm U3O8 from 50 m • DQRC-064 27 m at 430 ppm U3O8 from 69 m • DQRC-069 17 m at 759 ppm U3O8 from 62 m • DQRC-071 19 m at 502 ppm U3O8 from 64 m • DQRC-078 17 m at 619 ppm U3O8 from 278 m • DQRC-079 17 m at 581 ppm U3O8 from 0 m

Ewen EPM 14916 – Slance NW and NE Prospects

An RC drill programme totalling 30 holes for 3,700 metre will commence shortly at the Slance NW Prospect. The programme also includes 3 diamond holes for 350 metre.

Leichhardt River Project Leichhardt JV – EPM 14367 (DYL earning 50%)

The JV Agreement between DYL and Universal Resources Limited (Universal) was finalised and signed in late September. DYL will now arrange for the work area clearance by the Kalkadoon Community of the A25 and Big Dip radiometric anomalies (Figures 5 and 6) ahead of a planned 800 metre (8-10 holes) RC drill programme scheduled to commence in mid-November.

In August, a 340 line kilometre airborne radiometric and magnetic survey was flown over three ‘target zones’ (including A25 and Big Dip) identified from regional datasets and from previous work by Universal. The helicopter survey flown on 25 metre spaced lines at ~10 metre terrain clearance has outlined zones of intense deformation which are coincident with the known uranium anomalism at A25 and Big Dip.

Napperby Deeps JV Project

EL’s 24246 and 24606 (DYL 100% - Toro Energy Limited Option to Purchase, 50% on Deeps JV Toro and DYL)

Drilling of the three magnetic and gravity targets defined during the previous quarter will commence shortly with results expected during the next quarter.

Page 13

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

DECEMBER QUARTER PROGRAMME

The following are planned activities for the December Quarter.

• Complete 3,700 metre of RC drilling on the Slance NW and NW Prospects – EPM 14916.

• Complete 350 metre of core drilling on the Slance NW and NE Prospects.

• Finalise QAQC programmes for the designated JORC resource prospects.

• RC percussion drill the A25 and Big Dip Prospects on the Leichhardt JV ~ 800 metre.

Corporate

UNLISTED OPTIONS

DYL issued 7,275,000 unlisted options to acquire ordinary shares in Deep Yellow Limited to Employees and Contractors.

The issue was made in four tranches with differing vesting conditions and is pursuant to the Deep Yellow Limited - Employees and Other Permitted Persons Option Plan, and was made on the following terms:

• 600,000 Options to employees with an exercise price of 45 cents and which expire on 30 June 2012, the options vest on issue;

• 625,000 Options to employees with an exercise price of 60 cents and which expire on 30 June 2012, the options vest on 1 June 2010;

• 2,650,000 Options to employees with an exercise price of 35 cents and which expire on 30 June 2012, the options vest on 1 December 2009; and

• 3,400,000 Options to employees with an exercise price of 45 cents and which expire on 30 June 2012, the options vest on 1 June 2010.

No Director or Director related entity participated in the issue.

Options Lapse

65,000 employee options have recently lapsed in accordance with the terms of the Deep Yellow Limited Directors, Employees and Other Permitted Persons Option Plan.

Page 14

09-46

Quarterly Report - 30 September 2009

==> picture [43 x 12] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

==> picture [43 x 12] intentionally omitted <==

==> picture [127 x 39] intentionally omitted <==

Dr Leon Pretorius Managing Director

Further Information: Mr Martin Kavanagh Executive Director (61 8) 9286 6999

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Leon Pretorius a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Pretorius has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Pretorius consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Where eU3O8 is reported it relates to values attained from radio-metrically logging boreholes with Auslog equipment using an A675 slimline gamma ray tool. The probe has been calibrated at the Pelindaba Calibration facility in South Africa with calibration certification provided by Geotron Systems (Pty) Ltd a geophysical consultancy based in South Africa. All eU3O8 results reported are affected by issues pertaining to possible disequilibrium and uranium mobility which should be taken into account when interpreting those pending confirmatory chemical analyses.

Where eU3O8 is reported it relates to values attained from radiometrically logging boreholes with Auslog equipment using an A675 – slimline gamma ray tool. The probe has been calibrated at the Adelaide Calibration facility in South Australia with calibration certification provided by Geotron Systems (Pty) Ltd a geophysical consultancy based in South Africa. All eU3O8 results reported are affected by issues pertaining to possible disequilibrium and uranium mobility which should be taken into account when interpreting those pending confirmatory chemical analyses.

Deep Yellow Limited is an Australian-based pure uranium exploration company with extensive advanced operations in Namibia and in Australia.

In Namibia the Company’s principal development focus is through its 100% owned subsidiary Reptile Uranium Namibia P/L at the mid to high grade INCA primary uraniferous magnetite and secondary Red Sand projects and the extensive secondary calcrete deposits contained in the Tumas-Oryx-Tubas palaeochannel and fluviatile sheetwash systems.

In Australia the Company is focused on resource delineation of mid to high grade discoveries in the Mt Isa district - Queensland, these include the Queens Gift, Conquest, Slance, Eldorado, Thanksgiving, Bambino and Turpentine Prospects.

A pipeline of other projects and discoveries in both countries are continually being examined and there is extensive exploration potential for new, additional uranium discoveries in both Namibia and Australia.

Page 15

09-46

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Name of entity	Name of entity
DEEP YELLOW LIMITED
ABN 97 006 391 948	Quarter ended (“current quarter”)
97 006 391 948	30 SEPTEMBER 2009

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other income Net Operating Cash Flows	Current quarter $A’000	Year to date (3 months) $A’000
	- (4,547) - - (624) - 362 - - 7	- (4,547) - - (624) - 362 - - 7
	(4,802)	(4,802)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) tenements (b) equity investments (c) other fixed assets (d) environmental and other bonds 1.9 Proceeds from sale of: (a) tenements (b) equity investments (c) other fixed assets (d) environmental and other bonds 1.10 Loans to other entities 1.11 Loans repaid from other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	(1,300) - (102) (5) 99 - - - - -	(1,300) - (102) (5) 99 - - - - -
	(1,308)	(1,308)
	(6,110)	(6,110)

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(6,110)	(6,110)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Share issue costs Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(6,110) 47,416 188	(6,110) 47,416 188
	41,494	41,494

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		232
		-
1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

No material transactions took place

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

NIL

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	N/A
	N/A

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 2

Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	3,500
	-
Total	3,500

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	6,494	5,416
	35,000	42,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	41,494	47,416

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	EL24547 EL25702 EL6573 EL9836 EPM17860	Partial relinquishment Partial relinquishment Outright relinquishment Outright relinquishment Outrightwithdrawal	200 blocks 58 blocks 90% 100% 100%	178 blocks 27 blocks 0% 0% 0%
	EPM18127	Application	0%	100%

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs,redemptions	NIL
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	1,123,376,958	1,123,376,958		-	-
	- -	- -
7.5 +Convertible debt securities(description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Lapsed during quarter	Unlisted options 16,000,000 2,912,500 2,437,500 787,500 12,500,000 612,500 10,180,000 3,405,000 2,145,000 2,145,000 2,350,000 885,000	- - - - - - - - - - - -	Exercise Price 55.1 cents 44.6 cents 59.6 cents 64.6 cents 59.5 cents 74.6 cents 27.5 cents 40.0 cents 45.0 cents 60.0 cents 27.5 cents 27.5 cents		Expiry Date 30/11/2009 31/12/2009 31/12/2010 30/06/2010 30/11/2010 30/06/2011 30/06/2011 30/06/2011 30/06/2011 30/06/2011 31/12/2011 30/06/2012
	2,650,000 4,000,000 625,000	- - -	35.0 cents 45.0 cents 60.0 cents		30/06/2012 30/06/2012 30/06/2012
	-	-	-		-
	65,000	-	27.5 cents		30/06/2012
7.11 Debentures (totals only)	NIL
7.12 Unsecured notes (totals only)	NIL

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 4

Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

==> picture [148 x 27] intentionally omitted <==

==> picture [148 x 26] intentionally omitted <==

Sign here: ............................................................ (Company Secretary)

Date: 28 October 2009

MARK PITTS

Print name:

………….............................

Notes:

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 5