Deep Yellow Limited: Tumas Pre-Feasibility Study Commences

Perth, Australia - On 21 January 2020 Deep Yellow Ltd. (ASX:DYL) (FRA:JMI) (OTCMKTS:DYLLF) announced completion of a positive Tumas Project Scoping Study on its Reptile Uranium Project in Namibia. The Company further advised that it will proceed with a Pre-Feasibility Study (PFS) commencing late January 2020, expected to be completed in the December quarter of this year.

The PFS has now been initiated and Deep Yellow advises the following with regard to advancing this study.

Resource Drilling

Resource RC drilling commenced on 27 January 2020. The drill program is focused on upgrading 40 to 50% of the Inferred Resource base at the Tumas 3 deposit to an Indicated Resource status. This is estimated to require 5,000m of drilling and is scheduled for completion in March/April 2020.

A further 5,000m is budgeted for ongoing resource identification and upgrade drilling. The triple-tube diamond drilling program recommenced on 12 January and is scheduled for completion by the end of January. This program is generating samples for mineralogical studies, as well as approximately 1,000kg of mineralised core (590kg collected by December 2019) required for initial metallurgical test work (primarily leaching and beneficiation work).

When available, the balance of the metallurgical samples will be shipped to Perth for testing.

Baseline Studies

Data gathering surveys will commence in late February 2020 to establish essential baseline data for ground water, flora/fauna, air quality and radiological aspects for incorporation into the Environmental Impact Assessment.

PFS Objectives

The Company's stated objective is to establish a multi-platform, low-cost, global uranium company with multiple mines producing in aggregate 5-10Mlb per annum, with the expectation of each project achieving a minimum 2-3Mlb per annum production capability.

This growth strategy is similar to what the current Deep Yellow management team established as objectives previously when working with Paladin.

However, those objectives have been further refined and now stipulate a potential life-of-mine greater than 20 years, cash costs of sub US$30/lb U3O8 and capital requirements of US$115M to US$130M per 1Mlb U3O8 per annum design capacity and a minimum IRR of 20%.

These objectives provide clear guidelines as the threshold measures for determining the success of the Tumas PFS.

About Deep Yellow Limited:

Deep Yellow Ltd. (ASX:DYL) (OTCMKTS:DYLLF) (Namibian Stock Exchange:DYL) is a specialist differentiated uranium company implementing a new 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 asset portfolio. The Company's cornerstone suite of projects in Namibia is situated within a top-ranked African mining destination in a jurisdiction that has a long, well regarded history of safely and effectively developing and regulating its considerable uranium mining industry.

Source:

Deep Yellow Ltd.

Contact:

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