Tumas 3 Drilling Achieves Measured Resource Target

Deep Yellow Limited (Deep Yellow or Company) is pleased to announce an updated Mineral Resource Estimate (MRE) for the Tumas 1, 1 East, 2 and 3 Deposits (refer Figure 1), located on Mining Licence 237 (ML237) in the Erongo Region of Namibia. The deposit is held by Deep Yellow through its wholly owned subsidiary Reptile Uranium Namibia (Pty) Ltd (RUN).

HIGHLIGHTS

• Tumas 3 Measured Mineral Resource upgraded to 22.5 Mlb at 300 ppm eU₃O₈
  • At a 100 ppm cut-off, the updated Tumas 3 MRE has a Measured and Indicated Mineral Resource totalling 58.2 Mlb at 320 ppm eU3 O8
• Tumas 1, 2 and 3 Measured Mineral Resource upgraded to 38.5 Mlb at 253 ppm eU₃O₈
  • Remaining Indicated Mineral Resources include 63.6 Mlb at 278 ppm eU3 O8
  • Total Measured and Indicated Mineral Resources of Tumas 1, 1 East, 2 and 3 at 102.1 Mlb at 268 ppm eU₃O₈
• Mineral Resource Estimate upgrade follows 660 hole, 12,727 m RC resource infill drill program completed in June 2024
• Tumas Project successfully achieves targeted +30-year Life-of-Mine
• Significant upside potential remains to further increase the resource base associated with this highly prospective target
• Ongoing resource drilling is planned to the west of Tumas 3 during FY2025, focusing on identifying an additional 30 Mlb to achieve a +35-year Life-of-Mine
• The Ore Reserve Estimate for the Project, using current pricing points, will now be revised based on this upgraded Mineral Resource Estimate

The Mineral Resource status upgrade is required to enable the definition of sufficient Proven Mineral Reserves for the first six years of operation and to support project financing. The objective of the program was to improve drill spacing in parts of Tumas 3 to 50 m x 50 m to enable the conversion of approximately 20 Mlb U₃O₈ from the Indicated to Measured JORC Mineral Resource status and collect additional core samples to enhance the density database of the orebodies.

The resource drilling has covered the pit locations which are planned to be mined in the initial six years of operations, as defined in the Tumas Definitive Feasibility Study (DFS). By the end of June 2024, 100% of the program, including 660 RC holes for 12,727 m and six diamond core holes for 144.1 m, was completed. After all outstanding data, including density determinations, had been received and validated the drilling program was followed by a mineral resource estimation with the results reported in this announcement.

Tables 1, 2 and 3 in Appendix 3 list the RC drill hole locations and intersections greater than 100 ppm U₃O₈. Diamond core holes were completed for density determinations only.

Based on this work, the drill program has successfully established a measured mineral resource for Tumas 1, 2 and 3, whilst materially maintaining the overall grade and uranium content of the deposits. While the resource status upgrade to Measured Resources at Tumas 3 is based on increased drill density, an upgrade to Measured Resource category was also achieved at Tumas 1 and 2, due to better definition of ore densities.

Overall, at a 100 ppm eU3 O8 cut-off grade, the Tumas 1, 1 East, 2 and 3 Mineral Resource now stands at Measured and Indicated Mineral Resources of 102.1 Mlb grading 268 ppm, and an Inferred Mineral Resource of 16.1 Mlb at 196 ppm eU₃O₈, totalling 118.2 Mlb at 255 ppm eU₃O₈.

A reserve update based on the new mineral resource is currently in progress. This reserve update will be based on the DFS metrics, incorporating the DFS review impact (December 2023) and involve a re-optimisation of the Ore Reserve Estimate in preparation for the expected commencement of mining operations in the pre-production phase of project execution next calendar year.

The Company is confident that the reserve update will extend the operating life of Tumas to over 35 years. The detailed engineering for the Project, which is currently underway, will provide a control capital estimate and detailed execution schedule. In parallel, marketing enquiries, funding advancement (announced July 2024) and re-running of the Project financial model will be undertaken.

Deep Yellow Managing Director Mr John Borshoff commented: “Tumas is a standout, Tier-1, long-life Project and the team continues to tick all the boxes as we progress with project financing and marketing ahead of a final investment decision (FID) later this year.

“Delivery of the Tumas Mineral Resource upgrade across the areas earmarked for the initial six years of mining highlights the potential of the mineralised system identified at Tumas to deliver quality uranium resources.

“Remarkably, even with the detailed infill drilling on the Tumas 3 deposit to convert resources from Indicated to the more stringent Measured category, the quantity and quality of the Tumas 3 resource has remained well within the acceptable range.”

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