Deep Yellow Hits 60% Engineering Completion at Tumas, Confirms New Uranium Zones

Tumas Project Development Accelerates

Deep Yellow Limited has made significant strides in advancing its Tumas Project in Namibia during the December 2025 quarter. Detailed engineering work is now more than 60% complete, with over 70% of major process plant equipment tendered. Bulk earthworks, which commenced in October 2025, have reached 24% completion, including critical site preparation such as excavation, terracing, and access road construction. These developments underscore the company’s commitment to derisking the project ahead of a final investment decision (FID), which remains contingent on uranium market conditions.

Complementing the physical progress, Deep Yellow’s subsidiary, Reptile Uranium Namibia, executed a Transmission Power Supply Agreement with Namibia Power Corporation. This agreement, subject to FID and other conditions, secures the essential power infrastructure for Tumas, supplemented by plans for an onsite solar farm under a Build, Own, Operate and Transfer (BOOT) contract. Water supply negotiations are also advancing, with preliminary pipeline designs completed and tenders received, reflecting thorough preparation for operational needs.

Exploration Success at Tinkas and Regional Projects

Exploration drilling at the Tinkas Prospect, adjacent to Tumas, has confirmed uranium mineralisation with encouraging thicknesses up to 11 metres from surface. The mineralised zones average 260 ppm eU₃O₈, with standout intercepts such as 11m at 777 ppm and 2m at 1,273 ppm eU₃O₈. These results validate the presence of a shallow palaeochannel system, broadening the resource potential near the flagship project.

Elsewhere, broad-spaced drilling west of Tumas identified the palaeochannel but found limited high-grade mineralisation, suggesting this corridor has been sufficiently explored. Meanwhile, the Mulga Rock Project in Western Australia progressed with ground gravity and passive seismic surveys, supporting ongoing trade-off studies for its Definitive Feasibility Study. The Alligator River Project in the Northern Territory completed extensive drilling, revealing hydrothermal alteration systems analogous to known uranium deposits, bolstering its exploration promise.

Financial Position and Leadership Transition

Deep Yellow ended the quarter with a robust cash balance of A$187.1 million, reflecting prudent financial management as it advances multiple projects. The company also announced a key leadership change, Greg Field will assume the role of Managing Director and CEO from 2 February 2026, succeeding John Borshoff who stepped down in October 2025. This transition is supported by interim leadership and board adjustments, aiming to maintain strategic momentum during this pivotal phase.

Market Outlook and Strategic Positioning

The uranium market continues to show strength, with spot prices rising to US$81.40 per pound by year-end 2025 and term prices for new contracts climbing to US$86-87 per pound. Global nuclear power demand remains robust, driven by reactor restarts in Japan, ambitious capacity targets in India, and emerging interest from hyperscale data centres in small modular reactors. Supply constraints and geopolitical factors, including sanctions on Russian uranium, further underpin the market’s positive trajectory.

Deep Yellow’s diversified portfolio and ongoing project developments position it well to capitalise on these market dynamics. The company’s focus on establishing a Tier-1 uranium producer status with geographic and development diversity aligns with the growing global need for secure, low-emission energy sources.