DEEP YELLOW LIMITED - Interim / Quarterly Report 2009

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Quarterly Report – 30 June 2009

Highlights

30 July 2009

Namibia

Drilling by Deep Yellow Ltd (DYL’s) wholly owned Namibian subsidiary Reptile Uranium Namibia (Pty) LTD (Reptile) continued on the INCA uraniferous magnetite and palaeochannel projects located near Swakopmund in Namibia with up to 8 RC and two diamond rigs operating during the quarter and completing 28,343 metre of drilling. Some spectacular results were announced during the quarter and are repeated in the body of this report.

The drill out for JORC Code resource estimation on the detail grid area at INCA should be completed in the next quarter after which exploration will be aimed at extensions to the mineralisation. Reconnaissance drilling on the palaeochannels will also be completed after which detail drilling on anomalous areas will be carried out for JORC Code resource estimation.

The three Reptile Exclusive Prospecting Licences (EPLs) that expired in June were renewed in their entirety for a further two years.

Reptile has entered into an agreement with a Namibian Black Economic Empowerment Group (BEE) and has agreed terms for the establishment of a Trust to address the local Community requirements as set out by the Ministry of Mines and Energy (MME).

Reptile and Nova Energy Namibia (a subsidiary of ASX listed Toro Energy Ltd (Toro)) have also entered into a Joint Venture on the three EPLs held by Nova which abut Reptile’s tenements. Nova has also entered into BEE agreements which met with the MME’s requirements to allow renewal of the EPLs to take place. The initial work on these tenements will be to carry out airborne geophysical surveys which will take place during the next quarter.

The Company appointed Pieter Niemann who is an ex-Rossing and Olympic Dam metallurgical engineer as Manager – Projects and his first job will be to develop the INCA and Tubas Red Sand scoping studies. This process will include the selection of the engineering group for the way forward. This will then also determine the consultant group to be used for the JORC Code estimation work not only on these two projects but also for the outstanding drill data from 2008.

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: [email protected] / Website: www.deepyellow.com.au

Quarterly Report - 30 June 2009

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Australia

Exploration programmes for the quarter comprised RC drilling (70 holes for 6,869 metre) and diamond drilling (5 holes for 454 metre) at the Isa West Project, Mount Isa. In addition siteworks were completed for a 5,000 metre RC drilling and 1,000 metre diamond drilling programme at the Queens Gift Prospect north of Mount Isa.

To date, 81 RC holes for 7,607 metre have been completed and 2,535 samples collected for assaying from the 2009 programme at Isa West. The drill programmes on 25 metre spaced sections and 25 metre centres is outlining well developed and robust mineralised zones/structures at the Bambino and Thanksgiving Prospects. The current Stage 1 drill programme will end on or about 31 July 2009 and a 1-2 week review of the results will be undertaken whilst siteworks for the Stage 2 programme are completed. Stage 2 of RC drilling on 50 metre sections will under-cut the Stage 1 programme holes with a view to evaluating resource potential down to 200 metre vertical depth.

Detail drill results for the quarter have been released in ASX announcements on the 19, 26 May and 21 July 2009.

RC percussion drilling (5,000 metre) commenced at Queens Gift on 18 July 2009. The programme will test to 150-200 metre vertical depth the two main mineralised shoots outlined by the 2007/2008 drill programmes. A 1,000 metre diamond drill programme will follow-on from the RC drilling.

Corporate

Cash position including liquid assets at 30 June 2009 - $47 million.
DYL sold its 9.8% shareholding in Uranio Limited off-market to private investors for $577,407. DYL also sold it’s 3.8 million 20 cent options in Uranio to Minvest Securities (New Zealand) Limited for $650,000.
The Board approved a 2009-2010 exploration budget of $20 million. Expenditure levels will approximate $2 million per month through to November as a result of the intensive drill programmes underway.

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JORC Resource Statement – June 2009

A schedule of DYL’s JORC Resources is given below:

		JORC RESOURCES	JORC RESOURCES	JORC RESOURCES
JORC Resources	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

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EXPLORATION - NAMIBIA

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

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

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SUMMARY AND STATISTICS

Drilling and Assaying

DRILLING SUMMARY	DRILLING SUMMARY
Project	Number of Holes	Total Metre Drilled
ALLpalaeochannel drilling	1,002	20,328
ALL diamond on Inca	9	1,364
ALL RC on Inca	31	6,651
Total	1,042	28,343

Laboratory Performance Indicators

Job Description	April	May	June	TOTAL
Samples Received (Total metre drilled for April to June 2009)	7,713	7,472	12,140	27,325
Samples Crushed	0	0	4	4
Samples Split	526	546	1,204	2,276
Samples Checked in Pb-Block	7,305	7,648	8,920	23,873
Samples > 10 CPS	1,186	545	1,399	3,130
Samples Weighed	1,271	546	1,411	3,228
Samplespacked & stored	7,358	7,419	8,915	23,692
Samples Milled	1,658	776	1,401	3,835
Samples Analysed (Repeats, QC’s & Daily checks included)	1,411	965	1,527	3,903
Sample results reported	167	1,346	1,005	2,518

INCA PROJECT

ASX announcements were made on the INCA Project on 23 and 29 April, 21 May and 22 July and the following summarises activities for the quarter.

Drilling to deeper depths than before has returned wide intersections of uranium mineralisation of around one pound (450 ppm) U3O8 or better at ±200 metre depth including exceptionally high grades of up to 3.2% U3O8 over 2 metre in hole INCR150.
The style of mineralisation at INCA is being classified as a metasomatic – magnetite skarn type which is distinct and different from the known lower grade alaskite hosted uranium mineralisation being mined at Rossing and on the projects controlled by other companies in the district with the exception of the recently announced higher grade Rossing South discovery of Extract Resources which exhibits some similarities to the INCA mineralisation.

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Reptile has been drilling out a portion of the INCA project area since January 2009 as followup to its limited initial drilling around the historic Von Stryk iron ore pit (ASX 13 March 2008) which returned 115 metre at 229 ppm eU3O8 from 14 metre in diamond drill hole ADM 02 . Results from the successful follow-up RC drill programme (Table 1) on 100 by 100 metre centres to a nominal 100 metre depth over an area in excess of four square kilometre in conjunction with Airborne Electromagnetic (AEM) data led to the interpretation of depth potential for the uranium and magnetite mineralised zone as well as an appreciation of the discovery of a new style of uranium mineralisation for the area.
The drill holes testing this theory returned early success indicating a zone of mineralisation towards the north that is ten’s of metre thick located approximately 200 metre below surface. XRF chemical assay and equivalent (radiometric logging) uranium results are contained in Tables 2 and 3.
The extent of the INCA Deeps mineralisation will be tested once the drill out of the 500 by 350 metre resource block grid area has been completed. Excessive water and the deeper than expected extent of the mineralisation has led to RC holes having to be deepened by diamond drilling which has slowed down the programme. It is now estimated that drilling should be completed during the next quarter.
The status of the drill programme is given in Figure 2. All holes already completed that finished above the marble marker will be deepened to the marble and where the mineralisation has not been intersected on the southern and western margins of the deposit, the hole spacing will be reduced to 25 metre. It is estimated that the grid drilling will be completed during the next quarter.

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Figure 2: Status of drilling completed within the detailed grid area

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Along with the drilling programme, metallurgical and other scoping studies have continued and a shortlist of consultants to undertake the detailed investigations leading to a DFS is almost complete. It is anticipated that an announcement with respect to the successful group will be made during the third quarter.
The conceptual/initial mine and production scenario that DYL has modelled is to combine ore from the Tubas Red Sand project with that from INCA to produce around 1,000 tonne per annum of U3O8 at a feed grade of +400 ppm . It is estimated that an initial resource of 8,000 to 10,000 tonne will suffice to fund this development while drilling will continue with a view to increasing the resource as regional holes indicate a much larger zone of alteration and mineralisation is present at INCA.
Shown in Figure 3 is a South to North section looking West depicting the mineralised envelopes. The main zone which contains extensive +500 ppm U3O8 zones will hopefully drive an open-pit down to levels where the high-grade INCA Deeps mineralisation starts.

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Figure 3: South to North section showing main rock types, alteration and mineralisation

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The outline of a potential starter open-pit is shown in Figure 4 and is based upon a grade in excess of 400 ppm eU3O8 over 6 metre but mostly with a GTM * over 5,000 above 120 metre. The INCA Deeps mineralised area is expected to grow as deeper drilling continues, but as can be seen using a grade of +1,000 ppm eU3O8 over 3 metre** (or GTM over 3,000) it appears to form an arcuate zone to the northeast of the potential open-pit that should then be readily accessible from the base of the pit.
Taking into consideration that many holes remain to be deepened to the marble ‘footwall’ marker and others remain to be drilled to infill the grid to the minimum spacing of 50 by 50 metre the models in Figures 3 and 4 are a ‘work in progress’, but as information flows the model is becoming more robust.

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Figure 4: Outline of areas with potential open-cut and underground grade based on drilling to date

* GTM - a measure of U3O8 present expressed as grade in ppm x width of intersection

Some of the GTM values are quite phenomenal (up to almost 40,000) and when the higher than normal densities of the host rock due to the abundant presence of iron (magnetite), is taken into consideration, it can be expected that the tonnages of metal present once the JORC Code resource work is complete will be favourable towards an early development schedule.

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A conceptual flow-sheet and plant design is portrayed in Figures 5 and 6 based upon the testwork completed to date. The recovery of iron has important economic implications as existing and potential new acid treatment uranium plants in the area require iron in their oxidation process.

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Figure 5: Front-end flow-sheet assuming heap leach extraction of uranium and iron

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Figure 6: Back-end uranium extraction and ammonium diuranate (ADU) precipitation

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Heap leach trials have been carried out in columns using a blend of 20% Tubas Red Sand and 80% INCA uraniferous magnetite which was acid cured and then agglomerated. As can be seen in Figure 7 the agglomerate essentially remained intact after 17 days of leaching and washing. All testwork has been completed on unscreened and uncrushed RC drill chips with excellent recoveries of above 80%. This would appear to indicate that milling which is a highly energy intensive and expensive step may not be required.

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Figure 7: Agglomerate from column leach trials to test suitability for heap leach extraction of uranium and iron. The column was emptied into a plastic container with the drainage material on the left.

Mineralogical and microprobe investigations on the massive uraniferous magnetite (with lesser hematite) as seen in the core photo in Figure 8 shows the primary uranium mineral to be coarse uraninite with minor pitchblende as can be seen in the microprobe photograph in Figure 9. The secondary minerals present are uranophane and beta-uranophane. No refractory uranium minerals have been identified to date.

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Figure 8: Well-mineralised uraniferous magnetite/hematite in HQ diamond core from INCA Deeps

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Figure 9: Microprobe photo showing coarse uraninite

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Table 1: INCA Project - RC Holes

Drillhole	Location – WGS84 (m E) (m N)	Location – WGS84 (m E) (m N)	From (m)	To (m)	Width (m)	eU3O8 ppm	cU3O8 ppm
INCR105	488900	7476650	183	196	13	1,576
INCR106	488700	7476650	36	48	12	1,089
INCR107	488901	7476549	38	50	12	471
INCR108	488801	7476549	50	66	16	1,056
and			143	148	5	638
INCR109	488700	7476549	26	34	8	1,130
INCR111	488850	7476650	87	98	11	509
INCR139	488700	7476900	206	226	20		1,734
INCR147	488800	7476900	210	234	24		544
INCR150	488750	7476950	228	238	10		7,293
INCR150R	488745	7476950	233	269	36	634
INCR152	488700	7476950	204	263	59		604
INCR156	488750	7476900	209	252	43		424
INCR160	488700	7476750	81	92	11	2,819
INCR161	488750	7476750	115	118	3	582
			133	136	3	661
INCR162	488800	7476750	97	101	4	622
			121	126	5	903
			151	160	9	531
			195	204	9	496
INCR163	488850	7476750	152	160	8	502
			194	200	6	457
INCR164	488900	7476750	139	155	16	724
			167	170	3	521
			176	181	5	441
INCR167	488750	7476850	195	210	15	540
INCR169	488650	7476650	169	191	21		906
INCR178	489000	7476750	159	177	18	573
INCR183	488550	7476800	57	68	11	405
INCR187	489146	7476648	136	147	11	415

Table 2: INCA Diamond Drill Holes

Hole ID*	Location WGS84	Location WGS84	From (m)	To (m)	Interval (m)	eU3O8 (ppm)
	UTM East	UTM North
INCD9	488695	7476922	212	217	5	1,316
			232	239	7	788
			251	259	8	400

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Table 3: INCA Project – RC/Diamond Tails

Hole ID	Location WGS84	Location WGS84	From (m)	To (m)	Interval (m)	eU3O8 (ppm)
	UTM East	UTM North
INCRD140	488702	7476804	135	139	4	841
INCRD155	488650	7476900	186	241	55	722
			200	216	16	1,938
INCRD172	488750	7477000	251	261	10	574
			266	269	3	462
			303	309	6	584
INCRD173	488650	7477000	255	263	8	995

PALAEOCHANNEL DRILLING

ASX announcements on the ongoing reconnaissance drilling on the extensive Tumas-Oryx-Tubas palaeochannel systems on wide-spaced lines were made on 9 June, 16 June and 20 July 2009. The drilling being undertaken with four RC rigs continues to intersect high-grade and/or wide zones of carnotite mineralisation. The holes listed in the Table 4 below are some of those highlighted in Figure 10 which indicates the widespread prospectivity of the system. There now remains about 20 kilometre of untested channel system to be reconnaissance drilled prior to the commencement of detail infill drilling around the mineralised holes to generate JORC Code resources. The detail drilling is expected to commence during the next quarter.

Table 4: Tumas to Oryx Palaeochannel Drilling

Drillhole	Location (mE)	– WGS84 (mN)	From (m)	To (m)	Width (m)	U3O8 ppm
TUMR328	511800	7456300	13	20	7	313
TUMR332	512000	7456275	4	43	39	1,254
		Inc	15	31	16	2,969
		Inc	19	22	3	13,856 or 1.4%
TUMR333	512036	7456297	13	21	8	353
TUMR450	510688	7458294	15	18	3	1,501
TUMR478	510843	7458094	4	11	7	578
TUMR636	511800	7461500	4	17	13	882
TUMR858	507200	7463700	11	17	6	459
TUMR860	507300	7463700	12	20	8	438
TUMR1041	505247	7464900	30	31	1	570
TUMR1063	506347	7464898	11	20	9	1,171
TUMR1064	506390	7464897	13	20	7	464
TUMR1073	506784	7464894	14	22	8	540
TUMR1088	507594	7464897	9	16	7	532
TUBR608	509000	7464150	5	10	5	659

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Drillhole	Location (mE)	– WGS84 (mN)	From (m)	To (m)	Width (m)	U3O8 ppm
TUBR697	506997	7464245	12	20	8	2,360
TUBR698	506993	7464294	12	19	7	853
TUBR703	507000	7464550	12	23	11	474
TUBR713	507000	7465050	8	16	8	325
TUBR842	503000	7466050	24	31	7	398
TUBR849	503000	7466400	21	32	11	471

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Figure 10: Location plan of reconnaissance lines and recent highly anomalous holes

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NOVA ENERGY JOINT VENTURE

Toro and DYL announced on 28 May that they had entered into a JV whereby DYL through their wholly owned Namibian subsidiary Reptile will spend A$3.5 million over the next two and a half years on three EPLs held by Toro’s Namibian subsidiary Nova. Reptile will then be entitled to earn a 65% share of the Joint Venture. Toro will retain 25% with Namibian BEE Company, Sixzone Investments Proprietary Limited, holding a 10% share.

Reptile is now able to commence work following the grant of renewals for the three Nova-held EPLs, (3668, 3669 and 3670) by the MME and the approval of the joint venture agreement by the Minister.

The location of Nova’s EPLs in relation to Reptile’s uranium tenements and to other significant uranium projects and mines, is shown in Figure 1 and include:

EPL 3668 lies immediately downstream of the operating Langer Heinrich Uranium mine with the potential for the discovery of a similar style mineralisation. Exploration will focus on fully evaluating the buried palaeochannels within this tenement.
EPL 3669 is located immediately south of where Bannerman Resources are exploring uranium rich granites known as Alaskites at their Etango Project. There is also potential for uranium mineralisation associated with magnetite-skarn mineralisation similar to the INCA Project discovery announced by DYL. (ASX release 23 April 2009).
EPL 3670 is in the southern part of the Erongo district adjacent to the Aussinanis calcrete deposit being explored by DYL. The tenement has similar radiometric anomalies that could be evaluated with shallow drilling as well as buried Alaskite potential.

Exploration Programme

Reptile has entered into an agreement with Geotech Airborne Limited to undertake a helicopterborne electromagnetic, radiometric and magnetic geophysical survey for approximately 6,087 linekilometre over the two western Nova JV tenements (Figure 1).

The survey has commenced and is estimated to be completed within about 4 to 6 weeks pending weather conditions (wind and mist).

The survey areas are mostly sand covered and the survey is primarily aimed at ‘mapping out’ prospective lithologies and conductive zones similar to those hosting the INCA uraniferous magnetite discovery made by Reptile and to the stratigraphy hosting Extract Resources’ Rossing South discovery further to the north.

Once interpretation of the data is complete drill testing of geophysical anomalies will be undertaken.

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EXPLORATION - AUSTRALIA

EXPLORATION SUMMARY

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Figure 11: Queensland Projects

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

To date, 81 RC holes for 7,607 metre have been completed and 2,535 samples collected for assaying from the 2009 programme (see Table 5).

The current drill programmes on 25 metre spaced sections and 25 metre centres is outlining well developed and robust mineralised zones/structures at the Bambino and Thanksgiving Prospects.

The current Stage 1 drill programme will end on or about 31 July 2009 and a 1-2 week review of the results will be undertaken whilst siteworks for the Stage 2 programme are completed.

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Table 5: 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

Stage 2 RC drilling on 50 metre spaced sections and 50 metre centres will under-cut the Stage 1 programme holes with a view to evaluating resource potential down to 200 metre vertical depth.

Detail drill results for the Quarter have been released in ASX announcements on the 19, 26 May and 21 July 2009. Summary tables highlighting significant results only are given below.

Bambino Prospect

At the Bambino Prospect (Figure 12) 25 RC holes (BBRC013 to 037) have been drilled in 2009 totalling 2,796 metre. Significant intercepts are given in Table 6. Equivalent U3O8 (eU3O8) values are provided where chemical results (cU3O8) are unavailable. Geological and radiometric logging of the drill holes indicate that mineralisation is hosted by albitite-hematite-magnetite altered amphibolite. The mineralised zone appears to be dipping to the west at about 60 degrees. Elevated values (+400 ppm U3O8) were returned from drilling over 250 metre strike.

Table 6: Summary of Bambino Prospect Drill Intercepts

Dillhl	MGA Zone 54	MGA Zone 54	Ai	Di	TD	Depth (m)	Depth (m)	Interval (m)	cU3O8 (ppm)
roe	mE	mN	z	p	(m)	From	To
BBRC014	335545	7712430	64	-60	108	53	58	5	631
						62	69	7	475
BBRC018	335525	7712351	64	-60	162	125	140	15	413
BBRC021	335554	7712564	91	-60	72	20	21	1	1,250
						47	51	4	473
BBRC024	335571	7712642	91	-60	78	29	35	6	396
BBRC025	335524	7712492	91	-60	108	71	82	11	698
BBRC029	335504	7712490	91	-60	150	107	132	25	532
BBRC030	335579	7712472	64	-60	60	0	27	27	464
BBRC031	335483	7712425	64	-60	216	161	172	11	438
BBRC032	335517	7712413	64	-60	132	97	110	13	403
BBRC034	335511	7712381	64	-60	168	115	134	19	411
BBRC035	335601	7712411	66	-60	66	9	20	11	495
BBRC036	335519	7712362	66	-60	180	148	157	9	426*

* Downhole gamma eU3O8 value

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Figure 12: Isa West Uranium Prospects

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Thanksgiving Prospect

At the Thanksgiving Prospect (Figure 12) 35 RC holes (TGRC009 to 043) have been completed in 2009 totalling 3,251 metre. Significant intercepts are given in Table 7. Alteration/mineralisation assemblages are the same as those seen at Bambino.

The mineralised zone appears to be dipping to the west at about 55-60 degrees. Elevated values (+400 ppm U3O8) were observed in the drilling for 300 metre along strike.

Table 7: Summary of Thanksgiving Prospect Drill Intercepts

Dillhl	MGA Zone 54	MGA Zone 54	Ai	Di	TD	Depth(m)	Depth(m)	Interval (m)	cU3O8 (ppm)
roe	mE	mN	z	p	(m)	From	To
TGRC009	336826	7712508	66	-60	120	27	82	55	555
TGRC012	336824	7712560	66	-60	84	40	47	7	607
TGRC015	336871	7712409	66	-60	96	55	66	11	495
TGRC017	336832	7712599	66	-60	102	58	67	9	399
TGRC023	336806	7712498	66	-60	127	51	72	21	490
TGRC024	336800	7712483	66	-60	156	79	95	16	402
TGRC030	336855	7712431	66	-60	102	65	75	10	515
TGRC035	336827	7712531	66	-60	102	44	53	9	417
TGRC037	336798	7712548	66	-60	114	71	81	10	413
TGRC038	336855	7712611	66	-60	72	45	53	8	436
TGRC040	336839	7712624	66	-60	72	27	35	8	493

Turpentine Prospect

Ten RC holes were drilled in 2009 at the Turpentine Prospect (Figure 12). The results (Table 8) show good continuity of mineralisation along strike and to depth. The grade returned so far is not as high as at the Thanksgiving and Bambino Prospects.

Table 8: Summary of Turpentine Prospect Drill Intercepts

MGA Zone 54	MGA Zone 54	Azi	Dip	TD (m)	Depth (m)	Depth (m)	Interval (m)	cU3O8 (ppm)
mE	mN				From	To
335098	7713419	50	-60	72	29	38	9	444
335117	7713349	50	-60	90	41	51	10	482
335145	7713447	50	-60	60	28	37	9	505
335077	7713466	50	-60	60	37	41	4	470

Diamond Drilling Programme

Thanksgiving Prospect: Three diamond holes for 270.6 metre have been drilled at the Thanksgiving Prospect. The diamond holes are designed to intersect known areas of mineralisation and provide a detailed view of the mineralisation/alteration style and to collect structural information. Downhole gamma (eU3O8) results for the holes are given in Table 9.

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Quarterly Report - 30 June 2009

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Table 9: Summary of Thanksgiving Core Drilling

Dillhl	MGA	Zone 54	Ai	Di	TD	Depth (m)	Depth (m)	Interv al (m)	cU3O8 (ppm)	eU3O8 (ppm)
roe	mE	mN	z	p	(m)	From	To
TGDC001	336831	7712514	66	-60	90.2	24	70	46	-	523
TGDC002	336830	7712564	66	-60	90.2	51	56	5	-	679
						66	79	13	-	615
TGDC003	336884	7712416	66	-60	90.2	47	56	9	-	459

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Diamond Drilling – Thanksgiving Prospect

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High Grade Mineralisation with intense alteration – Hole TGDC001

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Quarterly Report - 30 June 2009

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Bambino Prospect: Three diamond holes for 270 metre will be drilled at the Bambino Prospect. The holes are designed to intersect known areas of mineralisation and provide a detailed view of the mineralisation/alteration style and to collect structural information. Downhole gamma results for the first two holes have been received and are given in Table 10.

Table 10: Summary of Bambino Prospect

Dillhl	MGA Zone 54	MGA Zone 54	Ai	Di	TD	Depth (m)	Depth (m)	Interval (m)	cU3O8 (ppm)	eU3O8 (ppm)
roe	mE	mN	z	p	(m)	From	To
BBDC001	335575	7712371	64	-60	90.2	59	66	17	-	605
BBDC002	335540	7712455	64	-60	93.2	42	82	40	-	405

Drill Results: The orientated HQ drill core from Thanksgiving and Bambino is providing quality information on the style and intensity of albitite-hematite ± quartz/carbonate alteration associated with uranium mineralisation. Structural information is also being collected with a view to identifying mineralising structures at prospect scale. When the detail logging programme is complete the core will be cut and half-core sent for assay.

The diamond holes have been collared midway between mineralised RC holes. The results from the downhole gamma logging (eU3O8) correlate well with the widths and grades returned from the RC drilling.

Quarter core samples will also be submitted for mineragraphic analysis with a view to identifying the uranium minerals present. Previous work (2008) on RC drill chips identified the principal uranium mineral present as uraninite.

ISA NORTH PROJECT

Prospector EPM 15070 – Queens Gift Prospect

SEPTEMBER QUARTER PROGRAME

The following items comprise the major activities planned for the September quarter in Australia.

Stage 2 RC and diamond Drilling Isa West.
Stage 1 RC and Diamond drilling at the Queens Gift Prospect.
Downhole surveying of RC drill holes at the Isa West, Queens Gift and Ewen Projects.
Low level helicopter-borne magnetic and radiometric surveys of the selected targets on the Ewen EPM and on the Universal Resources JV tenement (EPM 14367).
Siteworks for the RC drill programmes on the Ewen EPM.
Aircore drilling (5,000 metre) on the Mt Liebig tenements in the Northern Territory.

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Quarterly Report - 30 June 2009

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CORPORATE

UNIVERSAL RESOURCES JV – MOUNT ISA

JV documentation has been received from the party’s respective lawyers. It is anticipated that the Agreement will be finalised in the next two weeks.

MATRIX METALS NW QUEENSLAND JV

During the quarter the Company received notice from the Queensland Minister that the transfer of ownership of Ewen (EPM 14916) and Yamamilla (EPM 14281) from Matrix to DYL could go ahead pending ‘completion’ of statutory documentation and assignment of Native Title Agreements. The ‘transfer’ process is well advanced and should be completed in early August. DYL will pay the Receivers of Matrix $1.3 million on transfer of title. (Total consideration for the purchase is $1.4 million).

EXPLORATION BUDGET 2009-2010

At the July Board meeting the Directors approved a 2009-2010 exploration budget of $20 million for Namibia and Australia. Expenditure through to November 2009 will approximate $2 million per month as current operations comprise 7 drill rigs in Namibia and 3 drill rigs in the Mount Isa district. The budget also allows for the move to a scoping study for the INCA/Tubas Red Sand Project.

APPOINTMENT OF MANAGER PROJECTS- NAMIBIA

During the quarter it was announced that Mr Pieter Niemann had been appointed as Manager – Projects (ASX 29 June 2009).

Reporting to DYL and Reptile’s Managing Director Dr Leon Pretorius, Mr Niemann will work closely with Mr Klaus Frielingsdorf (Reptile’s General Manager) to advance the scoping studies and evaluation of the primary INCA uraniferous magnetite and Tubas Red Sand deposits which Mr Frielingsdorf commenced several months ago. Mr Niemann will also be responsible for selection of the consulting engineers to complete the initial scoping study and ongoing liaison with them during the subsequent feasibility studies on these projects.

He will also advance parallel in-house scoping studies on the Tubas-Oryx-Tumas palaeochannel secondary calcrete hosted uranium deposits.

RENEWAL OF EPL’S - NAMIBIA

The Namibian Ministry of Mines and Energy (MME) has extended three EPLs held by Reptile in their entirety for a further two years. These EPLs namely EPL 3496 Tubas, EPL 3497 Tumas and EPL 3499 Ripnes (see Figure 1) came due for renewal on 5 June 2009 after expiration of their first three-year grant period. Application and motivation for their renewal without reduction in area was lodged by Reptile management in March.

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Quarterly Report - 30 June 2009

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Since March any application to the MME for a new EPL or renewal of any existing EPL once processed by the MME has appended to it three new conditions, namely that any funds raised in respect of the EPL be deposited in Namibia; the EPL shall not be issued unless the applicant proves it has allocated certain previously disadvantaged Namibians (Black Economic Empowerment or BEE) shares in the applicant; and, have in place a plan and commitment to empower the nearby community (Broad Based Economic Empowerment or BBEE) once a mineable deposit is found. No percentages or prescribed formula is given.

Reptile, in a proactive approach, met with the Deputy Minister of the MME and other senior officials in February 2009 to discuss BEE and BBEE involvement in its activities once projects had been defined and Mining Licences were applied for.

Reptile then set about formulating a BEE and BBEE Charter which it presented to the MME and subsequently entered into an agreement with local BEE Company Oponona (Pty) LTD whereby it would acquire a 5% interest in any and all projects within the three EPL boundaries upon Reptile applying for a Mining Licence.

The Directors and principals of Oponona, namely Ambassador Monica Nashandi, Dr Ben Mulongeni and Mr Jason Nandago are well respected Namibians with whom Reptile has built a good working relationship.

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Historic signing ceremony between Oponona and Reptile Front: Ambassador Monica Nashandi and Dr Ben Mulongeni Rear: Mr Jason Nandago and Dr Leon Pretorius.

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Quarterly Report - 30 June 2009

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There is no immediate local community associated with these three EPL areas that could become directly involved in Reptile’s activities, but 40% of Oponona has been set aside for a BBEE Trust that will benefit previously disadvantaged Namibians and specifically assist with educating the youth of the general community closest to Reptile’s activities. Reptile has undertaken to fund the Trust immediately after making its first sales.

The Directors and management of Reptile are very appreciative of the relationship it has built up with the various Ministries it works with in Namibia, and in particular the MME and Ministry of Environment and Tourism (MET). Both the MME and MET will be closely involved in Reptile’s requisite permitting processes should the INCA and Red Sand projects prove viable.

UNLISTED OPTIONS

During the quarter, 6,975,000 unlisted options lapsed in accordance with their terms, 975,000 unlisted options were issued to new employees and Dr Pretorius exercised 2,150,000 options.

Further Information: Mr Martin Kavanagh Executive Director Dr Leon Pretorius (61 8) 9286 6999 Managing Director

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 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.

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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 JUNE 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 (12 months) $A’000
	- (2,900) - - (405) - 578 - - -	- (14,631) - - (2,068) 16 3,378 - - 500
	(2,727)	(12,805)
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)	(100) - (19) - 650 1,227 - 3 - - -	(100) - (700) (78) 650 1,227 1 10 - - -
	1,761	1,010
	(966)	(11,795)

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)	(966)	(11,795)
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	591 - - - - -	1,604 - - - - -
	591	1,604
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	(375) 47,510 281	(10,191) 57,062 545
	47,416	47,416
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		Current quarter $A'000
		247
		-
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
	7,046
	-
Total	7,046

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)	5,416	4,330
	42,000	45,000
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	47,416	49,330

See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 3

Appendix 5B Mining exploration entity quarterly report

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
	EL23923 EL23924 EL23991 EL10360 EL22918 EL23636 EL23637 E80/1735 E80/3275 E80/3817 E80/4081 E39/1140 E39/1141 E39/1142 E39/1143 E39/1144 EL3288 EPM17155 EPM17293 EPM17714 EPM17785 EPM17923 E45/2887 E45/2888 E45/2889 E45/2890 E45/2891 E45/2892 E45/2893 E45/2894 E45/2895 E45/2896 E45/2897	Partial relinquishment Partial relinquishment Partial relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright relinquishment Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outright withdrawal Outrightwithdrawal	210 blocks 169 blocks 33 blocks 50% 50% 100% 100% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 100% 100% 100% 100% 100% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30%	29 blocks 56 blocks 17 blocks 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
	EL27334 EL18127	Application Application	0% 0%	100% 100%

See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 4

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		-	-
	2,150,000 -	2,150,000 -
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 2,350,000 950,000	- - - - - - - - - - - -	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
	950,000	-	27.5 cents		30/06/2012
	2,150,000	-	27.5 cents		30/06/2011
	375,000 175,000 150,000 1,600,000 1,675,000 1,675,000 1,325,000	- - - - - - -	59.5 cents 74.6 cents 27.5 cents 40.0 cents 45.0 cents 60.0 cents 27.5 cents		31/12/2010 30/06/2011 30/06/2011 30/06/2011 30/06/2011 30/06/2011 31/12/2011
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 5

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.

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Sign here: ............................................................ Date: 30 July 2009 (Company Secretary)

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 6

AI assistant

DEEP YELLOW LIMITED — Interim / Quarterly Report 2009

64808_rns_2009-07-29_db64feec-9770-4a00-8ecc-64acc691ab5e.pdf

Quarterly Report – 30 June 2009

Highlights

Namibia

Quarterly Report - 30 June 2009

Australia

Corporate

Quarterly Report - 30 June 2009

JORC Resource Statement – June 2009

100 ppm cut-off

Quarterly Report - 30 June 2009

EXPLORATION - NAMIBIA

Quarterly Report - 30 June 2009

SUMMARY AND STATISTICS

Drilling and Assaying

Laboratory Performance Indicators

INCA PROJECT

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

Figure 4: Outline of areas with potential open-cut and underground grade based on drilling to date

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

Table 1: INCA Project - RC Holes

Table 2: INCA Diamond Drill Holes

Quarterly Report - 30 June 2009

PALAEOCHANNEL DRILLING

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

NOVA ENERGY JOINT VENTURE

Exploration Programme

Quarterly Report - 30 June 2009

EXPLORATION - AUSTRALIA

EXPLORATION SUMMARY

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

Quarterly Report - 30 June 2009

Bambino Prospect

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

Thanksgiving Prospect

Turpentine Prospect

Table 8: Summary of Turpentine Prospect Drill Intercepts

Diamond Drilling Programme

Quarterly Report - 30 June 2009

ISA NORTH PROJECT

Prospector EPM 15070 – Queens Gift Prospect

SEPTEMBER QUARTER PROGRAME

Quarterly Report - 30 June 2009

CORPORATE

UNIVERSAL RESOURCES JV – MOUNT ISA

MATRIX METALS NW QUEENSLAND JV

EXPLORATION BUDGET 2009-2010

APPOINTMENT OF MANAGER PROJECTS- NAMIBIA

RENEWAL OF EPL’S - NAMIBIA

Quarterly Report - 30 June 2009

Quarterly Report - 30 June 2009

UNLISTED OPTIONS

Appendix 5B

Mining exploration entity quarterly report

Name of entity

Consolidated statement of cash flows

Non-cash financing and investing activities

Financing facilities available

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

Issued and quoted securities at end of current quarter

Compliance statement

MARK PITTS

Notes:

More from DEEP YELLOW LIMITED

DEEP YELLOW LIMITED Interim / Quarterly Report 2009