Deep Yellow Limited - QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 31 DECEMBER 2023

Deep Yellow Limited (Deep Yellow or Company) is pleased to provide a summary of key activities completed in the December 2023 quarter.

FLAGSHIP TUMAS PROJECT (Namibia) Mining

Licence 237 Namibia's Ministry of Mines and Energy (MME) issued Reptile Uranium Namibia (Pty) Ltd (RUN), a 100% subsidiary of Deep Yellow, with its 20-year mining licence1 , (expiring 21 September 2043) for the Tumas Project (Tumas or Project). The environmental approvals for the Project, water pipeline and powerline were granted in late September/early October 2023, with the Environmental Clearance Certificates (ECC) for Tumas and the water pipeline received on 28 September 2023. The approval of the power line was received on 29 September 2023 and the ECC was issued 6 October 2023. The grant of ML 237 was subject to the provision of all relevant ECCs for the Project and associated infrastructure. The issue of ML 237, valid for 20 years, is a key step towards Deep Yellow commencing production at Tumas. Importantly, upon execution of the current timeline, Deep Yellow will establish Tumas as the 4th uranium mine in Namibia

The January 2023 DFS, announced on 2 February 2023, was presented with the full impact of the inflationary and supply chain pressures prevailing at that time. In July 2023 it was decided, with Ausenco Services Pty Ltd (Ausenco) (DFS Engineers), to review the results and obtain an updated costing profile as an addendum to the January DFS. The Re-Costing Study was undertaken as a collaborative effort by Deep Yellow and Ausenco (who undertook the original DFS) and was completed in accordance with Ausenco's costing standards for a DFS-level study. Ausenco consented to lead this program and be associated with the Addendum Report and its conclusion. Critical to the methodology used for the Re-Costing Study was that this work be sufficiently documented and supported, such that it is considered suitable for project funding due diligence. Deep Yellow and Ausenco performed a comprehensive market re-evaluation of the CAPEX and OPEX, one year after the initial DFS pricing study. This reassessment included revising procurement strategies, reorganising construction packages and negotiating shortlisted vendor agreements, especially in critical areas like bulk earthworks and Structural, Mechanical, Piping, and Platework (SMPP) packages. Mechanical equipment pricing that was not repriced was escalated by 2.2% to bring the overall estimate up to Q3 2023 base date. Importantly, the re-costed values still include an allowance for growth. The uranium market conditions were also reviewed due to the continued rapid increase in uranium price, which has accelerated further post the decision to re-cost the Project.

This led to a finding that the DFS base case assumption of a flat US$65/lb U3O8, had become overly conservative, with the uranium price environment continuing to strengthen in response to escalating demand and attractive future supply and demand forecasts. Significant value has been delivered from the Re-Costing Study, which provided an up-to-date status to the DFS outcomes. The Re-Costing Study identified a reduction in the capital cost estimate and a modest increase in the operating costs estimate (mostly due to increased fuel and power costs) for the first 10 years of operation (while the solar array and associated infrastructure is amortised), followed by a minor reduction in the operating cost estimate for the remainder of the Project. Financial modelling at US$65/lb validates the original DFS conclusions2 . The re-appraisal of the marketing outlook concluded that, in the uranium market conditions as of November 2023, a base case pricing deck based on US$75/lb was both conservative and suitable under the prevailing market outlook and further upside to this was considered likely.

Project Outlook

Following completion of the Re-Costing Study, Deep Yellow has engaged with selected engineering service providers that are suitably experienced to bid for the detailed engineering and EPCM phases of the Project. As anticipated, the Company expects to call for tenders for detailed engineering and project execution from the selected third-party engineering services providers in January 2024. During the Re-Costing Study, several opportunities for improvement were identified. These further potential improvements remain available for complete assessment during the detailed engineering phase. Key areas for reassessment include vendor packaged equipment requirements and financing and direct owner purchases of structural steel, platework, pipes, and pumping equipment. The Company also proposes to develop a detailed transport and logistics plan and continue to evaluate local procurement options. Ongoing metallurgical testwork is also indicating that a reduction of up to 2MW may be realised in the installed capacity of the beneficiation circuit. This will result in reduced operating and capital cost estimates. In addition, indicated improved performance from the membrane circuit (PLS concentration) suggests that the refining section may become physically smaller, and that CCD capacity may be reduced by one unit, importantly still using the same design criteria controls, which is also expected to provide further improvement to the project economics. With the Tumas Re-Costing Study completed, defining the Project more accurately, the Company has now intensified its activity to progress debt financing, building on the considerable groundwork already undertaken. This will be progressed in parallel with the Project detailed engineering with the aim of achieving FID by late Q3/2024.

Resource Expansion

Following the second phase of the drill program involving 8 holes for 1,558m completed in September 2023, Deep Yellow announced an updated MRE for the Tumas 3 Deposit, located within EPL3496 and EPL34974 . The program successfully increased the Tumas 3 MRE by delivering an 11% uplift in Indicated Mineral Resources to 60.6Mlb at 325ppm eU3O8, using a 100ppm cut-off grade. The drill program also identified a further 1.2Mlb of Inferred Mineral Resources in the same area. Overall, at a 100ppm eU3O8 cut-off grade, the Tumas 3 MRE stands at an Indicated Mineral Resource of 60.6Mlb grading 325ppm and an Inferred Mineral Resource of 6.2Mlb at 170ppm eU3O8, totalling 66.8Mlb at 300ppm eU3O8. The primary objective of the drill program was to identify additional resources to the immediate west of Tumas 3 to eventually extend the overall Tumas Project to a +30-year LOM from its current 22.5 years.

Resource Drilling

All samples for multiple element geochemistry from the 656-hole aircore drill program announced on 14 August are at the laboratory for assay analysis. All assay results are expected to become available by mid-January for a MRE update scheduled to be completed early-to-mid February. These drill programs were undertaken to better define reserve/resource variability factors, upgrade the resource base for uranium and the targeted critical minerals and allow resource estimation to be completed to an Indicated Resource category. All drill holes have been preliminary assayed by portable XRF and typically logged downhole for gamma radioactivity, density, induction and deviation. By November 2023, all 11,600 samples had been transported to Perth and received by the laboratory. The Ambassador and Princess deposits comprise of higher grades associated with the critical minerals and uranium more than the deposits occurring to the west (Emperor and Shogun deposits) and represent the major portion of the known mineral resources for the MRP. Consequently, The Ambassador and Princess deposits will likely be mined before the lower grade deposits of Emperor and Shogun to the west in the MRP's mining schedule

Exploration Update

No site activities were carried out during the quarter, other than a heritage survey of proposed ground to be excised from a no-go area on EL5893. This survey was managed by the Northern Lands Council (NLC) and the results of this survey are pending. Generally work continues as previously reported, combining and merging local, semi-regional and regional radiometric, magnetic and gravity data to produce new geophysical images of the region centred on the Deep Yellow tenements, to support the identification of prospective corridors. Desktop studies are ongoing and will delineate the priority prospective corridors to concentrate the effort in finding further discoveries in this important uranium province. Furthermore, this work will result in a multiple approach with short, medium and long-term exploration objectives defined for the investigation of the Alligator River Project (ARP) to explore for large uranium resources.

Contact:

John Borshoff

Managing Director

Tel: [phone]

Email: [e-mail]

Cameron Gilenko

Tel: [phone]

Email: [e-mail]

About Deep Yellow Limited

Deep Yellow Limited is successfully progressing a dual-pillar growth strategy to establish a globally diversified, Tier-1 uranium company to produce 10+Mlb p.a. The Company's portfolio contains the largest uranium resource base of any ASX-listed company and its projects provide geographic and development diversity. Deep Yellow is the only ASX company with two advanced projects - flagship Tumas, Namibia (FID expected in Q3/CY24) and MRP, Western Australia (advancing through revised DFS), both located in Tier-1 uranium jurisdictions. Deep Yellow is well-positioned for further growth through development of its highly prospective exploration portfolio - ARP, Northern Territory and Omahola, Namibia with ongoing M&A focused on high-quality assets should opportunities arise that best fit the Company's strategy. Led by a best-in-class team, who are proven uranium mine builders and operators, the Company is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets. Importantly, Deep Yellow is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity.

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