Deep Yellow Limited: Continuing Positive Drilling from Tumas 3 Area

Perth - Deep Yellow Ltd. (ASX:DYL) (OTCMKTS:DYLLF) (Deep Yellow) is pleased to report continued encouraging drilling results from the ongoing Tumas 3 resource extension drilling program carried out on EPL3496, held by its wholly-owned subsidiary Reptile Uranium Namibia (Pty) Ltd.

HIGHLIGHTS

- Resource drilling East and West of Tumas 3 has been completed for FY18.

o Uranium mineralisation identified in 46% of the holes in latest drilling.

o Mineralisation is closed off to the east and remains open to the west.

- Tumas 3 East extension drilling completed involving 3,892m in 153 holes carried out since 14 April announcement.

- Tumas 3 West extension commenced with 950m in 37 holes with mineralisation remaining open requiring further drilling.

- Strongest intersections from the latest drilling include:

o TB3R645 -- 7m at 366ppm eU3O8 from 5m.

-- 1m at 1,096ppm eU3O8 from 14m.

o TB3R751 -- 7m at 612ppm eU3O8 from 5m.

o TB3R808 -- 13m at 708ppm eU3O8 from 15m.

- Mineralisation is calcrete associated and hosted in palaeochannels, similar to the Langer Heinrich uranium mine located 30km to the north east.

Since the ASX release of 14 April 2018 resource upgrade drilling continued east and west of the Tumas 3 uranium discovery with 190 RC drill-holes for 4,842m to end June 2018. Total drilling on the Tumas palaeochannel for the 6 months ending 30 June 2018 amounted to 10,765m with 363 holes. Figure 1 (see link below) shows the palaeochannel system and prospect locations.

The resource drilling around Tumas 3 targeted further extending the mineralised zone which was delineated from the November 2017 drilling. The latest drilling confirmed additional continuous uranium mineralisation over more than 3km. The Tumas 3 mineralisation, including the newly identified tributaries, now occurs over 10.5km of continuous uranium mineralisation when using a cut-off of greater than 100ppm Equivalent Uranium Oxide (eU3O8) over 1m. This drilling has closed off the mineralisation to the east however remains open to the west, where further drilling is planned later in 2018.

Of the total 190 holes drilled since 14 April 2011, 75 returned positive results - a success rate of 40%. The reduced success rate compared to the initial Tumas 3 drilling is caused mainly by the narrower nature of the channel. eU3O8 ppm values as stated herein have been determined internally. The eU3O8 values as shown in Appendix 1 are based on down-hole radiometric gamma logging carried out with a fully calibrated Aus-Log gamma logging system. These results will be validated by a competent geophysicist for the forthcoming resource estimation. Figure 2 (see link below) shows the drill-hole locations in relation to the Tumas 3 resource. Figures 3 and 4 (see link below) show cross-sections through the mineralisation east and west of Tumas 3 and highlight the continuous nature of the mineralisation across the channel.

The results of the resource drilling are regarded as very encouraging confirming the continuous eastern extension of Tumas 3 and the strong potential of continuation of the uranium mineralisation further to the west, which remains open.

Analysis

The resource drilling east of the Tumas 3 resource identified new mineralisation and was eventually closed off in this direction. The total Tumas 3 mineralisation now extends over 10.5km including 3 associated tributary palaeochannels. The width of the mineralisation varies between 200 and 400m in the main channel and 100 to 200m within the tributaries. Thickness of the mineralisation is variable ranging 1 to 13m. Importantly, the mineralisation remains open to the west which will be tested with the next drilling program, scheduled for the second half of 2018.

The mineralisation that has been extended at Tumas since the November 2017 drilling has no surface radiometric expression. This confirms that, apart from the benefit gained by good reinterpretation of airborne EM data to locate the prospective palaeochannel systems more accurately, discovery is only possible by drilling.

The latest drilling extended the Tumas 3 mineralisation by 3km along the main Tumas channel. Importantly, the results are clearly showing that the mineralisation has the potential to extend over more than the 10.5km strike length currently identified, particularly to the west of Tumas 3. The additional mineralisation found in tributaries to the main channel has identified further targets not previously considered. As previously shown, the uranium mineralisation is not confined to one simple, single channel but rather is associated with a complex palaeodrainage system containing several channels that head westward toward the Pacific Ocean.

Drill-hole cross sections across the Tumas 3 East and West extensions (see Figures 3 and 4) shows the continuous nature of the uranium mineralisation and also the variability and complexity of the palaeochannel topography.

Appendix 1, Table 1 (see link below) lists location details of all holes drilled since 14 April 2018. Appendix 1, Table 2 (see link below) lists the drill-holes which returned uranium intersections above the cut-off as eU3O8 in ppm with downhole depth and thickness tabulated.

Conclusion

This, the third drilling campaign conducted since the change of strategic direction of Deep Yellow has again produced successful overall results, confirming that the previously discovered Tumas 3 resource can be expanded. The work to date not only shows ability to add to the current uranium resource base of this project but, as importantly, emphasises the strong exploration potential of the uranium-fertile, extensive palaeochannel system within which the expanding Tumas 3 discovery occurs.

There are now 4 distinct mineralised zones (Tumas 1 & 2, Tumas 3 and Tubas Sand/calcrete deposits) identified within the 125km of palaeochannels (see Figure 1 in link below) which occur within the Reptile project tenements. Some 70%, or approximately 85km, of these palaeochannels remain to be adequately tested.

An updated resource estimation to include the recent drilling results is in progress and expected to be released by mid July 2018.

A new drilling program with continued focus on the prospective palaeochannels is planned to start in the middle of July on EPL 3497. Initially this will test targets in the east of the S-Bend and Tumas 1 areas. This will be followed by more resource drilling west of Tumas 3.

To view tables and figures, please visit:
http://abnnewswire.net/lnk/11EFN4K4

About Deep Yellow Limited:

Deep Yellow Ltd. (ASX:DYL) (OTCMKTS:DYLLF) (Namibian Stock Exchange:DYL) is a specialist, differentiated uranium exploration company implementing a contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company's uranium projects in Namibia and the pursuit of accretive, counter-cyclical acquisitions to build a global, geographically diverse project portfolio during a time of depressed uranium outlook.

The Company's cornerstone suite of projects in Namibia are situated within a top-ranked African mining destination; in a country jurisdiction that has a long, well regarded history of safely and effectively developing, producing and regulating its considerable uranium mining industry.



Contact:

Deep Yellow Ltd.
John Borshoff Managing Director/CEO
T: +61-8-9286-6999
F: +61-8-9286-6969
Email: john.borshoff@deepyellow.com.au
www.deepyellow.com.au