Deep Yellow Delivers Large-Scale Uranium Resources in Namibia through Systematic Exploration

• Deep Yellow is a uranium development company operating in Namibia. Uranium's importance has surged due to its role in the nuclear industry, which is considered crucial in efforts to decarbonize societies.
• Contrary to popular belief, building nuclear power plants can be as efficient as other energy sources. As evidence, Germany's nuclear energy production in the 1970s and 1980s was compared to its wind and solar energy production from 2005 to 2020.
• Deep Yellow has a vision to become a significant uranium producer with projects in Namibia and Australia. Their main project in Namibia, the Tumas project, has a reserve of 67.3 million pounds and a projected life of 22.5 years.
• The success of the Tumas project is attributed to the team's expertise in understanding the complex geological formations, specifically the palu channels, which are key to uranium extraction.

Deep Yellow is a uranium development company focused on building a global, multi-project, tier-one production platform. The company’s main asset is the Tumas Project located in Namibia, which contains a large uranium deposit amenable to low-cost open-pit mining. Deep Yellow has systematically explored and significantly expanded resources at Tumas over the past five years, establishing the project as one of the largest undeveloped uranium deposits globally.

Tumas Uranium Project Overview

• Location: Tumas Project located in the Namib Desert, Namibia
• Current resource: 140 million lbs U3O8 in Measured, Indicated and Inferred categories
• Life of mine: 22.5 years based on existing Probable Reserves of 67.3 million lbs
• Infrastructure: Site located near major road, power and water infrastructure as well as Walvis Bay port
• Ownership: Deep Yellow 100% ownership

The Tumas uranium deposits are comprised of mineralized paleochannels - ancient river valleys filled with calcrete and alaskite sediments. The project contains four deposits - Tumas 1, 2 and 3 and Tumas East 1. Exploration drilling between 2016-2019 led to a greater than 10-fold increase in resources at Tumas 3 and the discovery of significant mineralization at Tumas East 1. Ongoing drilling continues to expand resources and extend potential mine life.

Uranium Demand Growth Driven by Nuclear Renaissance

The uranium market is on the cusp of a major supply deficit as demand for nuclear power expands while mines supplying the market face depletion. Nuclear energy is increasingly recognized as essential for achieving global carbon reduction targets and energy security objectives. This is evidenced by recent policy shifts in major markets like the U.S., Japan and across Europe now targeting nuclear growth.

Over 50 new reactors are now under construction globally in addition to further units planned and proposed. This nuclear growth could result in uranium demand exceeding 200 million lbs per annum within the next decade, well above the current mine supply of 122 million lbs. A supply shortfall of this magnitude will necessitate new mines to be built. With long permitting and development timelines, uranium prices must rise significantly to incentivize new production.

The uranium market is showing early signs of recovery with the spot price rising over 50% from 2021 lows. However, prices remain around US$50 per lb, well below the US$60-70/lb required to incentivize new conventional mining projects. With limited projects ready for development, Deep Yellow is positioned to be among the first significant new uranium producers globally.

Experienced Team to Execute Mine Development

Deep Yellow has assembled an accomplished and experienced team to advance Tumas to production. The management team and board collectively provide expertise spanning uranium exploration, project development, mining operations and nuclear fuel markets.

CEO John Borshoff is recognized as one of the uranium sector’s most experienced leaders, with decades of experience including founding and leading Paladin Energy during a period of rapid growth. The team has direct experience discovering, permitting, financing, constructing and operating similar uranium mines in Namibia including Paladin's Langer Heinrich Mine.

This experience allows Deep Yellow to understand the geological controls on uranium mineralization in Namibian palaeochannel deposits. The project team’s collective knowledge has underpinned the significant exploration success achieved at Tumas over recent years. Ongoing exploration continues to expand resources and extend potential mine life.

Methodical Exploration Strategy Results in Major Tumas Resource Growth

In late 2015, Deep Yellow acquired the Tumas Project which contained an identified resource of 14 million lbs U3O8. The company recognized the strong potential to significantly expand resources through systematic exploration targeting extensions of the known Tumas palaeochannel uranium deposits.

Exploration since 2016 has included airborne geophysics, ground radiometric surveys, geological mapping and over 700 resource drill holes. This work resulted in a greater than 10-fold increase in estimated uranium resources at Tumas to the current 140 million lbs U3O8. The deposits remain open with further resource upside.

• Tumas 3: Discovery drilling in 2017-2018 increased resources from 14Mlbs to 53Mlbs
• Tumas East 1: New discovery made in 2019, maiden resource of 28.4Mlbs defined
• Tumas 1 & 2: Additional drilling increased resources by 39% to current 59Mlbs

This exploration success demonstrates the significant potential to discover major new uranium deposits associated with the extensive paleochannel systems traversing Deep Yellow’s 3,645 km2 landholding in Namibia. Ongoing exploration aims to continue expanding resources at Tumas to extend the potential mine life beyond 25 years.

Tumas Deposit Geology Favorable for Low-Cost Mining

The Tumas deposits comprise shallow channels filled by porous sediments (calcrete) which host uranium mineralization in the form of carnotite. The calcrete layers range from 5 to 30 metres thick, averaging 15 metres. The shallow, flat-lying nature of the Tumas deposits makes them highly amenable to extraction via conventional open-pit mining methods.

Metallurgical test work has demonstrated the uranium at Tumas can be efficiently extracted using a simple process flow sheet comprising alkaline leaching, resin-in-pulp recovery followed by precipitation and drying to produce a saleable uranium product. The alkaline leach process does not require acid or pressure oxidation, enabling lower processing costs.

The paleochannel setting results in limited waste rock volumes, allowing for low-cost mining and simple rehabilitation. Processing studies indicate optimized processing routes can achieve operating costs in the lowest industry quartile, maximizing project margins.

Infrastructure Advantages Support Development

The Tumas Project benefits from nearby infrastructure including grid power, bitumen roads and water sources. Namibia’s well-established uranium mining industry also provides a skilled workforce and engineering/technical support services to facilitate development. Uranium exports would utilize the Port of Walvis Bay located 60km east of the project site via sealed road.

Deep Yellow has established a joint venture agreement with Japan’s JOGMEC which provides funding support for evaluation activities including resource drilling, metallurgical testwork, mining studies and permitting requirements. The studies aim to complete a definitive feasibility study and support project financing.

Environmental assessments and mining license applications for Tumas are progressing well. Deep Yellow continues engagement with local communities and regulators as the project advances towards a near-term development and construction decision.

Exploration Upside Across Deep Yellow’s Namibian Portfolio

In addition to the flagship Tumas Project, Deep Yellow controls a vast exploration portfolio covering 3,645km2 within Namibia’s prime uranium belt. This includes early-stage targets across two project areas - Nova Joint Venture and Omahola Project. Airborne surveys have identified over 150km paleaochannel targets that represent priority exploration targets.

Targeted exploration drilling has intersected uranium mineralization at several prospects across Deep Yellow’s tenements confirming the strong potential for further discoveries. Ongoing exploration aims to define additional satellite uranium deposits that could supplement the Taumas resource base and extend project life.

Western Australia Asset Provides Production Optionality

Deep Yellow’s growth strategy includes progressing the Mulga Rock Project in Western Australia towards a major production center. A definitive feasibility study was completed in 2018 outlining production of 2.4Mlbs U3O8 per year over 16 years. Work is underway to refresh the study ahead of a development decision in the coming years.

Mulga Rock contains 36Mlbs of uranium resources amenable to conventional acid leach processing. The project is approved by both State and Federal regulators with expansive infrastructure in place. Developing Mulga Rock in parallel with Tumas provides Deep Yellow flexibility to sequence the two projects and achieve its targeted production profile.

Deep Yellow Poised to be a New Tier-One Uranium Producer

Deep Yellow has a clear path forward to achieve its goal of establishing a multi-project, tier-one uranium production platform:

• Advance Tumas to development supported by ongoing resource expansion
• Complete feasibility studies and permitting to enable project funding
• Progress Mulga Rock refresh study towards parallel development
• Continue exploration across high-potential targets in Namibia
• Align the first production with forecasted rising uranium prices from the mid-2020s

With its quality asset base, experienced team, exploration upside and sound funding position, Deep Yellow is strongly placed to capitalize on the pending uranium market recovery. As one of the few projects globally that can be developed to help meet significant impending supply shortages, Deep Yellow represents an attractive investment opportunity in the uranium sector.

The Investment Thesis for Deep Yellow

Favourable Uranium Market Fundamentals

• Global uranium demand is forecast to rise significantly with nuclear power growth, resulting in a large supply deficit emerging within the next 5 years. This will require new mines to be developed.
• Current low uranium prices are well below incentive levels for new mine development. Prices must rise materially to drive new supply, which creates substantial upside potential.

Quality Asset Base

• Deep Yellow's Tumas Project in Namibia contains a very large, high-grade uranium resource amenable to low-cost mining. Ongoing exploration continues to expand the resource.
• The project benefits from excellent infrastructure and previous uranium mining experience in the region. This supports timely, lower-risk development.

Clear Path to Production

• Deep Yellow aims to complete feasibility studies and permitting to enable a near-term development decision on Tumas by 2025. First production would be timed to benefit from forecast rising uranium prices.

Strong Cash Position

• Deep Yellow has a solid cash balance to fund activities through the finalization of permitting/approvals and project financing. This reduces funding risk.

Experienced Management Team

• Deep Yellow's board and management have decades of direct uranium discovery, development and production experience. This provides expertise to maximize Tumas' value.

Exploration Upside

• Deep Yellow's large Namibian landholding has demonstrated potential for further major uranium discoveries to grow resources beyond Tumas.

Western Australia Asset Provides Production Optionality

• The Mulga Rock project provides a second production centre option to complement Tumas. This delivers Deep Yellow production flexibility and scalability.

Deep Yellow offers investors quality uranium assets, experienced management, exploration growth potential and coming production aligned with an anticipated uranium market recovery.