L A T E S T   N E W S 26 Aug  Option Issue 21 Aug  Australian & Namibian Exploration Update 29 Jul  Appendix 3B 29 Jul  June Quarter Appendix 5B 29 Jul  Form 604 Change in Substantial Shareholding Interactive Annual Report 2007 View Share Price: ASX - DYL View Uranium Price Company News Service

WELCOME TO DEEP YELLOW LIMITED

ABN: 97 006 391 948

Deep Yellow Limited (DYL) has rapidly established itself as a significant member of the international uranium industry being a well-funded prominent explorer in Australia and Namibia.

Nuclear energy (and uranium as fuel) is rapidly gaining ground as an alternate base load source of electricity as the effects of fossil fuel burning and its contribution to global warming is being recognised. This realisation and looming shortages of uranium led to a remarkable correction in its price in 2007. DYL expects that the present long term price of US$90 is sustainable and expects the price to stabilise around these levels through the remainder of 2008. DYL is setting itself up to be a supplier of this strategic metal through aggressive and successful exploration and project acquisition programmes.

EXPLORATION UPDATE (May 2008)

Namibia

• A JORC Code Inferred Mineral Resource of 77.3 million tonne at 0.023% (238 ppm) U₃O₈ at a cut-off grade of 100 ppm U₃O₈ for 17,600 tonne or 38.8 million pounds of contained U₃O₈ has been estimated for the Tubas Project.

• Exploration drilling from February to April resulted in 2,190 RC percussion holes for a total of 26,604 metre and 4 Diamond drill holes for 824 metre being completed. It is anticipated that the rate of drilling will steadily increase to the anticipated 20,000 metre per month as the crews of the five RC percussion rigs become more proficient.

• Results from all areas are either meeting expectations by confirming historic work and results, or in the case of the follow-up drilling programmes being conducted on previously unknown mineralisation the results are very encouraging given the grade and widths of the numerous intersections returned to date.

• A new mineralised palaeochannel discovery with uranium mineralisation over at least 3 km in the Tumas West and Northwest Prospect area is contiguous with the main historic Tumas deposit and will add significantly to the mineralisation outlined by Falconbridge for their historic estimate area.

Significant results in the main include:

14 m at 500 ppm eU₃O₈ from surface
10 m at 902 ppm eU₃O₈ from surface
12 m at 464 ppm eU₃O₈ from surface
10 m at 410 ppm eU₃O₈ from 1 m
11 m at 344 ppm eU₃O₈ from 1 m

Significant results in the palaeochannel include:

13 m at 1,722 ppm U₃O₈ from 13 m (XRF chemical assay)
11 m at 261 ppm eU₃O₈ from 12.1 m
6 m at 494 ppm eU₃O₈ from 9.6 m
9 m at 457 ppm eU₃O₈ from 14.4 m
12 m at 529 ppm eU₃O₈ from 14.3 m

• First stage reconnaissance drilling has also successfully located significant new zones of uranium mineralisation; in the Aussinanis North area; at the S-Bend (BA) prospect; at various magnetic anomalies; and in Alaskite at Tubas North.

• An airborne electromagnetic survey (AEM) totalling 6,200 line kilometre was completed over the entire area of the four Exclusive Prospecting Licences with early data from the survey indicating the existence of potentially deeper channel sections that could indicate buried palaeochannels that were not tested by previous explorers.

• Alaskite Discovery: The field teams have discovered, geologically mapped, radiometrically surveyed and sampled a previously unknown alaskite occurrence (a specific granite type that hosts the Rossing uranium mine and Bannerman's and Extract's uranium mineralisation to the north and northeast). The alaskite outcrop and sub-outcrop contains extensive secondary uranium mineralisation in its weathered crust present as abundant visual carnotite.

• Iron Oxide - Uranium Discovery: Potentially of great significance is the discovery by Reptile geologists of a uranium mineralised iron/magnetite outcrop while following up co-incident radiometric and magnetic anomalies. This occurrence in basement rocks was mined on a small-scale for iron in the last century. Composite dump samples returned assays of between 200 and 400 ppm U₃O₈.
  
  

Australia

• Commencement of diamond drilling on Queens Gift Prospect, Mt Isa with four holes for 796 metres completed to date. Initial results from the diamond drilling returned 21.0 m at 893 ppm eU₃O₈.

• Evaluation of historic data for the Isa West Project (Xstrata) has identified several targets on which mapping and ground radiometric surveys have been completed ahead of a July drilling programme.

• First access for uranium exploration to a number of tenements in the Alice Springs district has been achieved and field crews have commenced evaluation programmes.

• Toro Energy Ltd announced that it has commenced the outline of a planned scoping study for the Napperby Uranium Project and that an updated resource estimate would be released in the June quarter.

• DYL's joint venture partner Uranio Ltd completed an 8 hole rotary mud drill programme on the Siccus Joint Venture tenement in the Frome Basin, South Australia.
  

CORPORATE

• Option Issue to Employees and Contractors

The Directors resolved to issue 20,100,000 unlisted options to acquire ordinary shares in Deep Yellow Limited to employees, and contractors. The issue was made pursuant to the terms of the Deep Yellow Limited Directors, Employees and Other Permitted Persons Option Plan which was approved at the Company's Annual General Meeting held on 30 November 2006.

No Director or Director related entity participated in the issue.

• Release of Restricted Securities

The Company released the voluntary restriction applicable to 82 million ordinary shares during the quarter. The shares were part of the consideration paid in 2006 for the acquisition/merger of Raptor Minerals Limited and ultimately the Namibian subsidiary companies which own and control Namibian Exclusive Prospecting Licences (EPL's) 3496 Tubas, 3497 Tumas, 3499 Ripnes and 3498 Aussinanis.

Corporate Outlook

• With the admission of Uranio Limited (Uranio) to the ASX (29 January 2008) a joint venture has been formed with Uranio holding 70% and DYL 30% in the divestment tenements. In the case of the pre-existing Siccus JV, Uranio will hold 70%, DYL 20% and Signature Resources retain their 10% holding.

As part of the settlement Uranio issued DYL with 3,849,379 shares and 3,848,379 options plus $500,000 in cash. A further $1 million in cash is due by 29 January 2009.

FORWARD PROGRAMMES

• Results from DYL's wholly owned Namibian subsidiary Reptile Uranium Namibia (Pty) LTD (Reptile) exploration programmes in Namibia are either meeting expectations by confirming historic work and results, or in the case of the follow-up drilling programmes being conducted in areas of previously unknown mineralisation, the results are very encouraging given the grade and widths of numerous new intersections.

• The stated target objective of Reptile is to have outlined JORC Code resources of between 45,000 and 55,000 tonne U₃O₈ by end 2008 within its Namibian tenements. Given the rate of drilling and results being attained this objective remains on target.

• Downhole radiometric results (eU₃O₈) received from three of the first four holes drilled at Queens Gift Prospect, Mt Isa returned significant uranium mineralisation as follow-up to 2007 RC percussion drilling.

• RC percussion and diamond drilling of the Miranda prospect in Queensland will evaluate the economic potential of the deposit.

• RC percussion and RAB drilling of multiple targets both in Namibia and Australia will also provide a 'pipeline' of prospects for assessment during the 2008 field season.