nice timing anncmts.havnt read em yet, page-3

re: cripes Dear Sir / Madam

NAPPERBY DRILLING DATA DISCREPANCY

The Directors wish to advise that the resource calculations undertaken by Mineral
Resource evaluation specialists, Hellman and Schofield on the assays from the
recent drilling at Napperby are vastly different to those previously reported based on
the information supplied by Paladin Resources Ltd, which in turn based its
information on that gathered from 3 different drilling campaigns and a Pre-Feasibility
Study carried out by Uranerz during its substantial evaluation of the project in the
period 1977 to 1981.

The Directors, company employees, consultants and contractors that have been
involved in Deep Yellow’s exploration programme aimed at verifying about 4,000t of
the reported 6,000t of U3O8 resources to a JORC (1999, 2000) Code reporting status
are at a loss at this stage to explain this quantum discrepancy.

The full evaluation of the geochemical analyses was only completed yesterday (14
November) and the directors have had insufficient time to evaluate sources of
possible error. To resolve this issue all facets of Deep Yellow’s work are being
audited.

It is common practice for both the laboratory and client to acquire internationally
verified and certificated samples containing known amounts of the elements they are
prospecting for. This material is then used as a standard by the laboratory to verify
the correctness of their analytical methods and equipment.

In this case Deep Yellow purchased Australian Nuclear Science and Technology
Organisation’s (ANSTO) standard OKA2 with a quoted value of 258 ppm contained
U3O8 and it was routinely analysed in between the drill samples sent for analyses by
a reputable Australian commercial analytical laboratory.


At this point it can be reported that assay values for the certified standard returned
values well below the contained 258ppm U3O8 and both ANSTO and the laboratory
have this morning reanalysed the standard and confirm its uranium content as
correct.

A selected range of samples will now be submitted to another laboratory for
reassaying. Should this prove to be the source for the discrepancy, all the samples
will have to be reanalysed. Unfortunately all this takes time and it is impossible to say
when the outcome will be known. For this reason, a temporary suspension from
trading has been requested.

In light of this delay the Shareholder Purchase Plan (SPP) will be withdrawn and all
monies received will be returned to the shareholders.

It must be stressed that the Directors have no reason to disbelieve the authenticity of
the original data.


Yours faithfully
Deep Yellow Limited


LEON PRETORIUS
Executive Chairman


Code: Basic Detailed Market Depth Market Detail Options
D YELLOW FPO Code Last +/- % Bid Ask Open High Low Trades Volume OpEst SurVol VWAP Status
DYL 11.5 0.0 0.0% 12.5 10 - - - 0 0 11.5 88,082 0 Suspended

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