DEEP YELLOW LIMITED — Interim / Quarterly Report 2016

Mar 10, 2016

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(ACN 006 391 948)

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HALF YEAR REPORT - 31 DECEMBER 2015

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Contents

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Corporate Information	1
Directors’ Report	2
Auditor’s Independence Declaration	4
Interim Consolidated Statement of Profit and Loss and	5
Other Comprehensive Income
Interim Consolidated Statement of Financial Position	6
Interim Consolidated Statement of Changes in Equity	7
Interim Consolidated Statement of Cash flows	8
Notes to the Half-Year Financial Statements	9
Directors’ Declaration	15
Independent Review Report	16

Corporate Information

Board of Directors

Mr Rudolf Brunovs Chairman (Non-executive) Mr Greg Cochran Managing Director Mr Mervyn Greene Non-executive Director Ms Gillian Swaby Non-executive Director Mr Christophe Urtel Non-executive Director

Company Secretary

Mr Mark Pitts

Stock Exchange Listings

Australian Securities Exchange (ASX) Namibian Stock Exchange (NSX)

Website Address

www.deepyellow.com.au

ASX and NSX Code

DYL

Australian Business Number

Registered Office

Level 4

502 Hay Street Subiaco Western Australia 6008 Telephone: + 61 8 9286 6999 Facsimile: + 61 8 9286 6969

Postal Address

PO Box 1770 Subiaco Western Australia 6904

Auditor

Ernst & Young 11 Mounts Bay Road Perth Western Australia 6000

Share Registry

Computershare Investor Services Pty Limited Level 2, Reserve Bank Building 45 St George’s Terrace Perth Western Australia 6000 Telephone: 1300 557 010 Facsimile: +61 8 9323 2033

97 006 391 948

Deep Yellow Limited

Half Year Report 2015

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Directors’ Report

The Directors of Deep Yellow Limited submit their report for the half-year ended 31 December 2015.

Directors

The names of the Company’s directors in office during the half-year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated.

Rudolf Brunovs Chairman (Non-Executive) (appointed as interim Chairman 1 January 2016) Tim Netscher Chairman (Non-Executive) (resigned 31 December 2015) Greg Cochran Managing Director Mervyn Greene Non-Executive Director Gillian Swaby Non-Executive Director Christophe Urtel Non-Executive Director

Review and results of operations

During the reporting period the Company continued to focus exclusively on its uranium projects in Namibia, making cautious and steady progress. The following highlights are worth noting:

Palaeochannel Project

• The results from a closely-spaced infill drilling program at Tumas Zone 1 and sophisticated geophysical modelling utilising modern processes led DYL to conclude that the Company’s palaeochannel resource potentially exceeds previous interpretations of this mineralisation.

• A small bulk sample was taken from within the Tumas Zone 1 resource infill drilling area and sent to Perth for metallurgical testwork to be conducted by Marenica Energy Ltd (“MEY”). The testwork is the first phase of a planned more extensive program designed to assess the amenability of MEY’s U-pgradeTM technology to effectively process Tumas’s calcrete ore.

• If the testwork is successful DYL’s ultimate objective is to develop an operation capable of cost effectively producing a high grade intermediate product for satellite supplementary supply to feed into any one of the existing Namibian uranium mines.

Omahola Project

• An internal review conducted on capital and operating cost estimates and pit optimisation studies, incorporating plant location modelling, was completed;

• An assessment to identify an optimal location for the Project’s processing plant, based on the existing resource base consisting of Ongolo, MS7 and INCA, concluded that a position between Ongolo and MS7 was best. Apart from minimising haulage costs the location also has another benefit in that it may allow other satellite deposits in the region, such as Garnet Valley or Ida Dome which are currently held by Swakop Uranium, to be processed at this location.

Australian tenements

• The Mount Isa Other Minerals Joint Venture agreement was dissolved and as a result the Company retained unencumbered ownership of tenements EPM14916 and EPM15070 in Queensland whilst Syndicated Metals Ltd acquired 100% of the Mineral Rights for EPM14281.

Deep Yellow Limited

Half Year Report 2015

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Directors’ Report

Results of operations

Exploration expenditure for the half-year was $433,469 (December 2014: $797,273).

Consolidated loss from continuing operations after income tax for the half-year was $881,331 (December 2014: $496,192). Included in the total expenses of $984,810 (December 2014: $1,127,768) for the period is exploration costs written off to the amount of $88,888 (December 2014: $159,469).

Issued share capital increased by $326,256 during the period. The increase relates to the issue of shares to employees in relation to the vesting of Performance Share Rights and the issue of shares in lieu of director fees and salaries.

Auditor’s Declaration

A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act 2001 is set out on page 4 and forms part of this Directors’ Report for the half year ended 31 December 2015.

This report is signed in accordance with a resolution of the Board of Directors.

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Greg Cochran Managing Director Dated this day 11 March 2016

Deep Yellow Limited

Half Year Report 2015

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Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

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Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Auditor’s independence declaration to the Directors of Deep Yellow Limited

As lead auditor for the review of Deep Yellow Limited for the half-year 31 December 2015, I declare to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Deep Yellow Limited and the entities it controlled during the financial year.

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Ernst & Young

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G H Meyerowitz Partner 11 March 2016

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GHM:JT:DEEPYELLOW:004

Interim Consolidated Statement of Profit and Loss and Other Comprehensive Income For the Half Year Ended 31 December 2015

	Consolidated
Notes	31 December 2015 $ 31 December 2014 $
Interest revenue Other income 2 Revenue and other income Depreciation and amortisation expenses 2 Marketing expenses Occupancy expenses Administrative expenses Employee expenses 2 Exploration costs written off 6 Loss before income tax Income tax expense 2 Loss for the period Other comprehensive income Items that may be reclassified subsequently to profit or loss Foreign currency translation (loss)/profit Other comprehensive (loss)/profit for the period Total comprehensive (loss)/profit for the period Earnings per share: Basic, loss for the period attributable to ordinary equity holders of the parent Diluted, loss for the period attributable to ordinary equity holders of the parent	51,326 59,889 52,525 571,932
	103,851 631,821 (16,506) (16,268) (5,227) (10,189) (49,222) (45,146) (469,696) (550,348) (355,271) (346,348) (88,888) (159,469)
	(880,959) (495,947)) (372) (245)
	(881,331) (496,192)
	(6,233,215) 1,836,065
	(6,233,215) 1,836,065
	(7,114,546) 1,339,873
	Cents Cents (0.05) (0.03)
	(0.05) (0.03)

The accompanying notes form part of these financial statements

Deep Yellow Limited

Half Year Report 2015

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Interim Consolidated Statement of Financial Position As at 31 December 2015

	Consolidated
Notes	31 December 2015 30 June 2015
	$ $
Assets Current Assets Cash and cash equivalents 4 Trade and other receivables 10 Other financial assets Total Current Assets Non-Current Assets Property, plant and equipment 5 Deferred exploration expenditure 6 Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables 10 Total Current Liabilities Total Liabilities Net Assets Equity Issued capital Accumulated losses Employee equity benefits reserve 7 Foreign currency translation reserve Total Equity	2,771,164 3,926,631 66,703 80,582 108,277 107,124
	2,946,144 4,114,337
	401,474 491,568 47,591,203 53,301,619
	47,992,677 53,793,187
	50,938,821 57,907,524
	252,818 307,035
	252,818 307,035
	252,818 307,035
	50,686,003 57,600,489
	221,928,083 221,601,827 (160,850,880) (159,969,549) 10,278,506 10,404,702 (20,669,706) (14,436,491)
	50,686,003 57,600,489

The accompanying notes form part of these financial statements

Deep Yellow Limited

Half Year Report 2015

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Interim Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2015

	Issued capital Accumulated losses Employee equity benefits reserve Foreign currency translation reserve Total Equity
	$ $ $ $ $
At 1 July 2015 Loss for the period Other comprehensive income/(loss) Total comprehensive (loss)/income for the period Transactions with owners in their capacity as owners: Vesting of performance rights Performance rights expensed Share based payments At 31 December 2015	221,601,827 (159,969,549) 10,404,702 (14,436,491) 57,600,489
	- (881,331) - - (881,331) - - - (6,233,215) (6,233,215)
	- (881,331) - (6,233,215) (7,114,546) 149,105 - (149,105) - - - - 56,342 - 56,342 177,151 - (33,433) - 143,718
	221,928,083 (160,850,880) 10,278,506 (20,669,706) 50,686,003
	Issued capital Accumulated losses Employee equity benefits reserve Foreign currency translation reserve Total Equity
	$ $ $ $ $
At 1 July 2014 Loss for the period Other comprehensive income/(loss) Total comprehensive (loss)/income for the period Transactions with owners in their capacity as owners: Share issues Share issue costs Vesting of performance rights Performance rights expensed Share based payments At 31 December 2014	216,816,003 (139,155,792) 10,652,329 (16,537,104) 71,775,436
	- (496,192) - - (496,192) - - - 1,836,065 1,836,065
	- (496,192) - 1,836,065 1,339,873 4,563,616 - - - 4,563,616 (254,134) - - - (254,134) 221,908 - (221,908) - - - - 124,859 - 124,859 111,237 - (5,607) - 105,630
	221,458,630 (139,651,984) 10,549,673 (14,701,039) 77,655,280

The accompanying notes form part of these financial statements

Deep Yellow Limited

Half Year Report 2015

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Interim Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2015

	Consolidated
Notes	31 December 2015 31 December 2014
	$ $
Cash flows from operating activities Payments to suppliers and employees Interest received Research and development tax incentive Tax paid in foreign jurisdiction Net cash flows used in operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds on disposal of property, plant and equipment Payments for exploration expenditure Proceeds on disposal of security deposits Net cash flows used in investing activities Cash flows from financing activities Proceeds from issue of shares Capital Raising Costs Net cash flows from financing activities Net increase/(decrease) in cash held Net foreign exchange difference Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 4	(620,995) (653,682) 49,176 50,148 50,323 421,852 (372) (245)
	(521,868) (181,927)
	(9,341) (1,562) - 443,341 (581,427) (866,789) 2,500 6,209
	(588,268) (418,801)
	- 4,563,616 - (254,111)
	- 4,309,505
	(1,110,136) 3,708,777 (45,331) 33,928 3,926,631 1,235,654
	2,771,164 4,978,359

The accompanying notes form part of these financial statements

Deep Yellow Limited

Half Year Report 2015

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Notes to the Financial Statements for the Half Year ended 31 December 2015

Note 1 Summary of significant accounting policies

Corporate information

The interim condensed consolidated financial statements of Deep Yellow Limited and its subsidiaries (collectively, the Group) for the half year ended 31 December 2015 were authorised for issue in accordance with a resolution of the directors on 9 March 2016, subject to minor changes. Deep Yellow Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded. The Group’s principal activities are uranium mineral exploration and pre-development undertakings in Namibia.

Basis of preparation

The interim condensed consolidated financial statements for the half year ended 31 December 2015 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The interim condensed consolidated financial statements do not include all the information and disclosures normally included within the annual financial report statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

It is recommended that the interim condensed consolidated financial statements be read in conjunction with the annual report for the year ended 30 June 2015 and considered together with any public announcements made by Deep Yellow Limited during the half year ended 31 December 2015 in accordance with the continuous disclosure obligations of the ASX listing rules.

Changes in accounting policies, accounting standards and interpretations

The accounting policies adopted in the preparation of the half-year condensed consolidated financial report are consistent with those of the previous year.

New standards, interpretations and amendments thereof, adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 30 June 2015, except for the adoption of new standards and interpretations noted below:

Reference Title AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality

The Standard completes the AASB’s project to remove Australian guidance on materiality from Australian Accounting Standards.

The adoption of the above new standards and interpretations have not had a material impact on the financial position or performance of the Group.

Deep Yellow Limited has elected not to adopt any new standards or amendments that have been issued but are not yet effective.

Deep Yellow Limited

Half Year Report 2015

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Notes to the Financial Statements for the Half Year ended 31 December 2015

Note 2 Income and expenses

	Consolidated
	31 December 2015 31 December 2014
	$ $
Loss for the period includes: Other income Gain on sale of fixed assets - 149,616 Rental and sundry income 2,202 464 Research and development tax incentive 50,323 421,852 52,525 571,932 Depreciation expense Office equipment 4,574 3,563 Site equipment - 118 Buildings 11,932 12,587 16,506 16,268 Employee expenses Wages, salaries and fees 212,491 252,029 Superannuation 9,160 9,179 Share based payments 133,620 85,140 355,271 346,348 Income Tax The Group calculates the period income tax expense using the tax rate that would be applicable to the expected total annual earnings. Numerical reconciliation between aggregate tax expense recognised in the statement of profit and loss and other comprehensive income and tax expense calculated per the statutory income tax rate Loss before income tax (880,959) (495,947) Prima facie tax on result at 30% (2014: 30%) (264,288) (148,784) Effect of tax rates in foreign jurisdictions 67,034 69,540 Non-deductible share based payment expense 60,018 44,804 Under provision in prior year (372) (245) Carry forward tax losses not brought to account 143,867 153,863 Non-assessable income: Research and development incentive (15,097) (126,556) Other 8,466 7,133 Income tax expense recognised in statement of profit and loss and other comprehensive income (372) (245)	- 149,616 2,202 464 50,323 421,852
	52,525 571,932
	4,574 3,563 - 118 11,932 12,587
	16,506 16,268
	212,491 252,029 9,160 9,179 133,620 85,140
	355,271 346,348
	(264,288) (148,784) 67,034 69,540 60,018 44,804 (372) (245) 143,867 153,863 (15,097) (126,556) 8,466 7,133
	(372) (245)

Deep Yellow Limited

Half Year Report 2015

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Notes to the Financial Statements for the Half Year ended 31 December 2015

Note 3 Operating segment information

The following tables present revenue and profit information for the Group’s operating segments for the half years ended 31 December 2015 and 2014, respectively.

		Australia $ Namibia $	Total $
Half Year Ended 31 December 2015 Revenue Other income Unallocated Interest income Research and development tax incentive Total revenue Results Pre-tax segment profit and loss Unallocated Interest income Research and development tax incentive Income tax expense Loss from continuing operations after income tax		- 2,202	2,202 51,326 50,323
		(764,770) (217,838)
			103,851
			(982,608) 51,326 50,323 (372)
			(881,331)
		Australia $ Namibia $	Total $
Half Year Ended 31 December 2014 Revenue Other income Unallocated Interest income Research and development tax incentive Total revenue Results Pre-tax segment profit and loss Unallocated Interest income Research and development tax incentive Income tax expense Loss from continuing operations after income tax		79,209 70,871	150,080 59,889 421,852
		(761,936) (215,752)
			631,821
			(977,688) 59,889 421,852 (245)
			(496,192)

Deep Yellow Limited

Half Year Report 2015

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Notes to the Financial Statements for the Half Year ended 31 December 2015

Note 3 Operating segment information (cont.)

The following tables present assets information for the Group’s operating segments for the half years ended 31 December 2015 and 2014, respectively.

	Australia $ Namibia $	Total $
Half Year Ended 31 December 2015 Segment Assets Segment operating assets Unallocated assets Cash Receivables Total assets	105,955 47,994,999	48,100,954 2,771,164 66,703
		50,938,821
	Australia $ Namibia $	Total $
Year Ended 30 June 2015 Segment Assets Segment operating assets Unallocated assets Cash Receivables Total assets	93,595 53,806,716	53,900,311 3,926,631 80,582
		57,907,524

Adjustments and eliminations

The following items and associated assets are not allocated to individual segments as the underlying instruments are managed on an overall group basis:

• Interest income and finance costs

• Foreign currency gains and losses

• Cash

• Receivables

• Liabilities are not allocated to the segments as they are not monitored by the executive management team on a segment by segment basis

Note 4 Current assets – cash and cash equivalents

For the purpose of the interim consolidated statement of cash flows, cash and cash equivalents are compromised of the following:

	Consolidated
	31 December 2015 30 June 2015 31 December 2014
	$ $ $
Cash at bank and in hand Short term deposits Cash at bank and in hand	2,271,164 1,426,631 1,978,359 500,000 2,500,000 3,000,000
	2,771,164 3,926,631 4,978,359

Deep Yellow Limited

Half Year Report 2015

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Notes to the Financial Statements for the Half Year ended 31 December 2015

Note 5 Property, Plant and equipment

There had been no significant acquisitions or disposals of assets for the half year ended 31 December 2015.

Note 6 Deferred exploration expenditure

	Consolidated
	31 December 2015 30 June 2015 31 December 2014
	$ $ $
Cost brought forward at the start of the reporting period Exploration expenditure incurred during the period at cost Exchange adjustment Exploration expenditure written off Cost carried forward at the end of the reporting period	53,301,619 72,230,012 69,830,701 433,469 313,722 797,273 (6,054,997) 248,190 1,761,507 (88,888) (19,490,305) (159,469)
	47,591,203 53,301,619 72,230,012

The Group continues to restrict its exploration expenditure in Australia and continues to have the majority of its tenements lapse when they are due for renewal. It has therefore not budgeted or planned significant expenditure for the future given its intention to sell or have its remaining Australian tenements lapse.

Exploration expenditure written off relates to Australian tenements that have or will soon lapse and Namibian assets for which the expenditure is not expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale.

Note 7 Share based payment

(a) Performance rights

On 6 November 2015 43,900,000 performance rights were granted to employees under the Deep Yellow Limited Awards Plan (Awards Plan) for no consideration. The rights vest if certain time and market price measures are met in the measurement period. If these time and market price measures are not met, the rights lapse. The fair value of the rights granted is estimated using a hybrid employee share option pricing model that simulates the share price of Deep Yellow Ltd as at the test date using a Monte-Carlo model. The contractual life of each granted right is seven years with a performance period of three years. There is no cash settlement of the rights. The fair value of rights granted during the six months ended 31 December 2015 was estimated on the date of grant using the following assumptions:

Dividend yield (%)	-
Expected volatility (%)	95.00
Risk-free interest rate (%)	2.02 - 2.09
Expected life (years)	7.00
Underlying Security spot price ($)	0.010

The weighted average fair value of the performance rights granted during the six month period was 0.84 cents (year ended 30 June 2015: 1.45 cents). For the six months ended 31 December 2015, the Group has recognised $92,311 of performance rights transactions expense in the interim consolidated statement of profit and loss and other comprehensive income (30 June 2015: $82,525).

(b) Share rights

Share rights are allocated on a progressive monthly basis to directors in lieu of fees and salaries in a continued effort to conserve cash reserves. Shares to be issued in relation to the share rights are calculated based on the 5-Day VWAP for the relevant month and the accumulated shares are then issued twice a year. The 5-Day VWAP is the volume weighted average share price for the five days on which shares are traded up to but excluding the 20[th] of the relevant month. There were no outstanding share rights on 31 December 2015.

Deep Yellow Limited

Half Year Report 2015

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Notes to the Financial Statements for the Half Year ended 31 December 2015

Note 8 Contingent liabilities and contingent assets

(i) Contingent liabilities

There were no material contingent liabilities as at 31 December 2015 other than:

Native Title and Aboriginal Heritage

Native title claims have been made with respect to areas within Australia which include tenements in which the Group has an interest. The Group is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Group or its projects. Agreement is being or has been reached with various native title claimants in relation to Aboriginal Heritage issues regarding certain areas in which the Group has an interest.

(ii) Contingent asset

There were no material contingent assets as at 31 December 2015.

Note 9 Events after the reporting date

No event or circumstance has arisen since 31 December 2015 that would require disclosure in the financial report.

Note 10 Financial Instruments

Fair values

Set out below is a comparison of the carrying amounts and fair values of financial instruments as at 31 December 2015 and 30 June 2015:

Consolidated	December 2015 June 2015
	Carrying amount Fair value Carrying amount Fair value
	$ $ $ $
Cash and cash equivalents Trade and other receivables Trade and other payables	2,771,164 2,771,164 3,926,631 3,926,631 66,703 66,703 80,582 80,582 (134,976) (134,976) (183,399) (183,399)
	2,702,891 2,702,891 3,823,814 3,823,814

Determination of fair values

The determination of fair values for the above financial assets and liabilities have been performed on the following basis:

Cash and cash equivalents, trade and other receivables and trade and other payables approximate their carrying amounts largely due to the short term maturities of these instruments.

AASB 7 Financial Instruments require disclosure of fair value measurements by level of the following fair value measurement hierarchy:

• (a) Quoted prices in active markets (Level 1);

• (b) Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (Level 2); and

• (c) Inputs that are not based on observable market data (Level 3).

Deep Yellow Limited

Half Year Report 2015

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Director’s Declaration

In accordance with a resolution of the Directors of Deep Yellow Limited (‘the Company’), I state that:

In the opinion of the directors:

1. The financial statements and notes of the consolidated entity for the half year ended 31 December 2015 are in accordance with the Corporations Act 2001 , including:

2. a. giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half year ended on that date; and

3. b. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001

4. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board of Directors.

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Greg Cochran Managing Director Dated this day 11 March 2016

Deep Yellow Limited

Half Year Report 2015

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Ernst & Young Tel: +61 8 9429 2222 11 Mounts Bay Road Fax: +61 8 9429 2436 Perth WA 6000 Australia ey.com/au GPO Box M939 Perth WA 6843

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To the members of Deep Yellow Limited

Report on the half-year financial report

We have reviewed the accompanying half-year financial report of Deep Yellow Limited, which comprises the interim consolidated statement of financial position as at31 December 2015, the interim consolidated statement of profit and loss and other comprehensive income, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the halfyear ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Deep Yellow Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the Directors’ Report.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GHM:JT:DEEPYELLOW:005

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Deep Yellow Limited is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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Ernst & Young

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G H Meyerowitz Partner Perth 11 March 2016

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation