Deep Yellow Limited For personal use only 2015 Annual General Meeting Perth Greg Cochran – Managing Director ASX: DYL www.deepyellow.com.au
Disclaimer This document has been prepared by Deep Yellow Limited (Deep Yellow, DYL or the Company) in connection with providing an overview to interested analysts and investors. For personal use only This presentation is being provided for the sole purpose of providing information to enable recipients to review the business activities of Deep Yellow. This presentation is thus by its nature limited in scope and is not intended to provide all available information regarding Deep Yellow. This presentation is not intended as an offer, invitation, solicitation, or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating Deep Yellow. Deep Yellow and its affiliates, subsidiaries, directors, agents, officers, advisers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability or responsibility for any statement made in, or omitted from, this presentation. Deep Yellow accepts no obligation to correct or update anything in this presentation. No responsibility or liability is accepted and any and all responsibility and liability is expressly disclaimed by Deep Yellow and its affiliates, subsidiaries, directors, agents, officers, advisers or employees for any errors, misstatements, misrepresentations in or omissions from this presentation. Any statements, estimates, forecasts or projections with respect to the future performance of Deep Yellow and/or its subsidiaries contained in this presentation are based on subjective assumptions made by Deep Yellow’s management and about circumstances and events that hav e not yet taken place. Such statements, estimates, forecasts and projections involve significant elements of subjective judgement and analysis which, whilst reasonably formulated, cannot be guaranteed to occur. Accordingly, no representations are made by Deep Yellow or its affiliates, subsidiaries, directors, officers, agents, advisers or employees as to the accuracy of such information; such statements, estimates, forecasts and projections should not be relied upon as indicative of future value or as a guaranteed of value or future results; and there can be no assurance that the projected results will be achieved. Prospective investors should make their own independent evaluation of an investment in Deep Yellow. Nothing in this presentation should be construed as financial product advice, whether personal or general, for the purposes of section 766B of the Corporations Act 2001 (Cth). This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. This presentation does not take into account the objectives, financial situation or needs of any person, and independent personal advice should be obtained. This presentation and its contents have been made available in confidence and may not be reproduced, or disclosed to third parties or made public in any way without the express written permission of Deep Yellow. 2
Executive Summary For personal use only ASX listed advanced stage uranium exploration company Namibian-focussed, with three projects: • Palaeochannels – shallow, extensive, low capex potential • Omahola Project – heap leach alaskite, due south of Husab • Tubas Sand Project – shallow, free dig, low capex potential Large exploration area with high prospectivity Experienced board & management Highly leveraged to the uranium spot price 3
Presentation Overview For personal use only Corporate Snapshot Financial Year Highlights Project Locations DYL’s Strategic Evolution Palaeochannel Project Conclusions 4
Corporate Snapshot For personal use only Capital Structure – as at 04 Nov 2015 The Board 1,918M Shares on Issue Tim Netscher Chairman (Independent) 36.6M Performance Rights Greg Cochran Managing Director ~ AUD 21.1M Market Cap (@ 1.1c/share) Gillian Swaby N.E.D ~AUD 3.4M Net Cash Rudolf Brunovs N.E.D (Independent) Major shareholders: Christophe Urtel N.E.D 16.7% Paladin Energy Limited Mervyn Greene N.E.D 13.1% HSBC* 9.2% National Nominees** Executives & Management * Including Raptor Partners Limited Greg Cochran Managing Director ** Including Laurium L.P. Fund Peter Christians Country Manager: Namibia Financial Controller Ursula Pretorius Martin Hirsch Exploration Manager Mark Pitts Company Secretary 5
Financial Year Highlights Corporate For personal use only Operational goals achieved despite continued focus on cost controls reducing cash burn Relatively strong cash position with balance in excess of $3M Additional overhead cash cost savings recently achieved at board and management level Palaeochannels Omahola Project Geophysical modelling program generates Independent consultants confirm heap leach as improved understanding of basement profile preferred development approach Tumas Zone 1 Infill drill program confirms Capital costs estimate reduced by assuming use resource grade and continuity of grass hopper over stacker reclaimer system DYL assessing intermediate product offtake Targets identified – to be drilled once market operational strategy for fast track development conditions improve Tubas Sand Project Exploration No offtakers willing to commit primarily due to Competed extensive ground work on targets relatively high logistics costs identified in predicative modeling exercise Infill drill program and next phase of One drill program completed but with metallurgical testwork planned but paused disappointing results Remains an important asset as supplemental Renewals submitted for RUN and Nova EPLs with feed for a DYL project approvals pending 6
Project Locations For personal use only 3,109 km 2 in exploration area* 93.8 Mlbs at 306ppm in resources** Notes: Exploration in Namibia is conducted by DYL’s wholly- owned subsidiary Reptile Uranium Namibia (RUN) * On a 100% basis – EPL Renewals Pending 7 ** Assuming tank leach for Omahola
DYL’s Strategic Evolution Progressing projects cautiously to be well positioned at market recovery Tubas Sand Project: Summary For personal use only Prior to Fukushima, Omahola Project focus : • Hard rock, open pit, acid tank leach • Supplementary supply planned from Tubas Sand Project Alaskite focussed exploration to boost Omahola resource base Fukushima prompted cautious approach & cash conservation Search for low cost, low technical risk project for earlier cashflow Tubas Sand Project: • Satellite supply business model adopted • No offtake commitment – Project suspended Reassessment of Omahola Project – heap leach Palaeochannel Review • Marenica Testwork – possible amenability of U-pgrade TM process • Successful Infill drilling program & geophysical interpretation • Test market appetite for satellite supply business model – higher grades and potential for cleaner product, lower transport costs 8
Palaeochannels: Introduction 1 JORC 2004 Palaeochannel Resource: 22.2 Mt at 368 ppm for 18 Mlbs U 3 O 8 * Tubas Sand Project: Summary For personal use only * Excluding Tubas Sand Deposit 9
Palaeochannels: Introduction 2 JORC 2004 Palaeochannel Resource: 22.2 Mt at 368 ppm for 18 Mlbs U 3 O 8 * Tubas Sand Project: Summary For personal use only Known deposits from 1970’s/80’s Reason behind original claims being lodged DYL’s primary focus (with the Tubas Sand) prior to Omahola discoveries AeroTEM HEM Survey flown & Interpreted 2008 Extensive drilling campaigns 2008 - 2010 Scoping EIA completed Intermittent Metallurgical testwork over the years Recent mineral characterisation to assess amenability to various forms of physical beneficiation, including Marenica’s U -pgrade TM process * Excluding Tubas Sand Deposit 10
Palaeochannels: Marenica U-pgrade TM tests Tubas Sand Project: Summary For personal use only Marenica U-pgrade TM Physical Beneficiation Process Development closely monitored by DYL Process potentially more effective than Schauenburg (used on the Tubas Sand Project) DYL’s palaeochannels are higher grade (almost double) than the Tubas Sand deposit 2014 Testwork completed Ore characterisation tests completed by Marenica in Australia Concluded process may be applicable to DYL palaeochannels Operating & transport costs could be lower than the Tubas Sand Project Same strategy – Satellite supply of intermediate product to existing producer Current Status 60 Resource review – completed Tumas 1 50 Infill grade control drill program – completed Tumas 2 Tumas 3 Geophysics Assessment – completed 40 Assess market for potential offtakers (underway) Mass % 30 Plan further metallurgical testwork (underway) 20 Plan follow-up exploration program (underway) 10 0 <= 10% <= 20% <= 30% <= 40% <= 50% <= 60% <= 70% <= 80% <= 90% < 100% 100% Liberation Class Marenica tests in the sub 125μ fraction were successful 11
Palaeochannels – Potential Offtakers For personal use only Given its prior offtake discussions for the Tubas Sand Project DYL has a good understanding of the potential for offtake 12
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