Deep Yellow Delivers Robust DFS for Flagship Namibian Project

• Deep Yellow (DYL) is a uranium-focused company with projects in Namibia and Western Australia.
• The CEO, John Borshoff, discusses the positive results of the DFS (Definitive Feasibility Study) and the company's progress.
• The DFS exceeded expectations due to realistic planning, optimizing the project, and up-to-date pricing.
• There's a growing interest in uranium due to the global resurgence of nuclear energy and the need for secure energy sources.
• Deep Yellow aims to sustainably deliver on its operations, benefit from rising uranium prices, and contribute to the changing energy landscape.

About Deep Yellow

Deep Yellow Limited is a uranium-focused mining company advancing its flagship Tumas Project in Namibia as well as the acquired Mulga Rock Project in Western Australia. With a strategic focus on executing and optimizing these projects, Deep Yellow aims to become a globally significant uranium producer.

Interview with CEO John Borshoff

Strong Economics Reaffirmed for Tumas DFS

The recently completed definitive feasibility study (DFS) for the Tumas Project has reaffirmed robust economics for the project. As CEO John Borshoff commented, the DFS economics represent "a 25% rate of return" which is critical for providing shareholders value. Importantly, Borshoff also noted that the DFS pricing was largely derived from tenders conducted in Dec 2021 - Jan 2022. So there is minimal inflation factored into the estimates.

Borshoff attributed the positive DFS surprise versus the preceding preliminary feasibility study to two factors. First was having a realistic baseline from the PFS conducted two years prior. And second was the project team’s diligence in incorporating the impact of inflationary pressures seen since early 2022. As Borshoff summarized, "I think it's one of the most up-to-date DFS’s."

The DFS also optimized plans to expand production capacity at Tumas from 3Mlb/year to 3.6Mlb/year. While requiring more upfront capital, this increased scale is expected to enhance the project's overall economics.

Strategic Growth Through Merger

The merger with Vimy Resources last year was an important strategic milestone, providing Deep Yellow with the Mulga Rock Project to complement Tumas. Borshoff explained that having multiple projects across jurisdictions is advantageous compared to being a single project company.

While Mulga Rock requires further optimization over the next couple years, Borshoff sees strong long term potential. The merger has positioned Deep Yellow with a global portfolio and pipeline for continued growth.

Uranium Fundamentals Continue to Strengthen

‍
Borshoff sees uranium demand fundamentals steadily improving, supported by more countries embracing nuclear power. Compared to the China-centric demand growth of the past decade, the next wave is being driven by broader global adoption of nuclear energy. With utilities and buyers recognizing this trend, Borshoff expects they will be keen to engage with emerging uranium producers like Deep Yellow.

A key lesson from the challenges faced by aspiring lithium producers is that bringing new mines online is complex. As Borshoff observed, "it’s not easy, it’s very technical." Given Deep Yellow's proven technical expertise and commitment to stakeholder relationships, the company is strongly positioned to be among the next uranium projects coming online.

5 Key Takeaways For Investors

1. Tumas DFS demonstrates robust economics with 25% rate of return. Pricing reflects minimal inflation impact.
2. Strategic merger secured second core asset at Mulga Rock to complement Tumas. Establishes global multi-project pipeline.
3. Uranium demand outlook remains positive with more countries adopting nuclear power.
4. Technical expertise and stakeholder relationships are competitive advantages for development.
5. Near-term producer status, tier-1 mining jurisdictions, and growth strategy provide compelling investor value proposition.

Conclusion

With its DFS confirming robust project economics and uranium market fundamentals steadily improving, Deep Yellow presents a compelling investment case. Investors have an opportunity to get in early on an emerging producer with operations in top-tier mining jurisdictions. As Deep Yellow works to further enhance its project pipeline over 2023, the company’s multi-asset growth strategy should unlock significant value for shareholders.

‍