Deep Yellow Limited · ASX:DYL
Deep Yellow — Merger or Acquisition (March 2022)
33 slides from Deep Yellow's merger presentation, Mar 31, 2022
Slide 1: Deep Yellow and Vimy Merger - Investor Presentation
ASX Announcement 31 March 2022 Deep Yellow and Vimy Merger - Investor Presentation Vimy Resources Limited (ASX:VMY, OTCQB:VMRSF) (Vimy) provides the Investor Presentation for the proposed Deep Yellow Limited and Vimy merger. Steven Michael Managing Director Tel: +61 8 9389 2700 Released for and on b
Slide 2: About Vimy Resources
About Vimy Resources Vimy Resources Limited (ASX: VMY, OTCQB: VMRSF) is a Perth-based resource development company. Vimy’s flagship project is the Mulga Rock Project (100%), one of Australia’s largest undeveloped uranium resources, which is located 290km by road ENE of Kalgoorlie in the Great Victor
Slide 3: Deep Yellow and Vimy Merger
Deep Yellow and Vimy Merger T HE EM ER GI NG I NDEP EN D ENT L EA D ER I N T HE GL O B A L U R A N I UM S ECT O R 31 MARCH 2022 Not for release to US wire services or distribution in the United States
Slide 4: Disclaimer
Disclaimer assurance that the Company and Vimy will be able to confirm the presence of mineral deposits, Disclaimer Past performance that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company’s or Vimy’s mineral properties. This presentation
Slide 5: Transaction Overview and Rationale
Transaction Overview 1 and Rationale 3
Slide 6: Transaction Overview
1 Transaction Overview ✓ Merger of Deep Yellow and Vimy to be effected via a Vimy Scheme of Arrangement (Scheme) under which Deep Yellow will acquire 100% of the fully paid ordinary shares in Vimy (Transaction) ✓ Vimy shareholders to receive 0.294 new fully paid ordinary shares in Deep Yellow for ea
Slide 7: A Sector Defining Transaction
1 A Sector Defining Transaction Compelling Market Fundamentals ktU Market Demand & Supply(1) 120 439 operable reactors 100 477 reactors under construction, planned or proposed Uranium industry is well positioned for significant potential value 80 ✓ uplift 60 40 Potential sanctions on uranium as a re
Slide 8: Increased Global Scale and Significance
1 Increased Global Scale and Significance ✓ Merger creates a uranium company with 389Mlbs(2) of attributable resource inventory − one of the largest in the world ✓ The Merged Group should benefit from the financial strength and stability of the combined platform ✓ Strong balance sheet size should en
Slide 9: Overview of Transaction Rationale
1 Overview of Transaction Rationale 1 Two Quality Assets Leveraged to the Uranium Price Recovery 2 Re-rating Potential with Increased Scale & Capital Markets Profile ✓ Two advanced uranium assets, with annual production capacity potential ✓ The Merged Group is estimated to have a Pro-Forma Market Ca
Slide 10: Overview of Transaction Rationale (cont’d)
1 Overview of Transaction Rationale (cont’d) 3 Highly Credentialled, Proven Uranium Team 4 Significant Growth Optionality through Exploration ✓ Combined Board and management team have a track record of successfully ✓ The Merged Group will have a highly prospective portfolio of exploration financing
Slide 11: Overview of Transaction Rationale (cont’d)
1 Overview of Transaction Rationale (cont’d) 5 Platform for Further Growth and Consolidation 6 Strong Commitment to Sustainability and ESG ✓ The Merged Group provides a company of scale with a platform able to pursue ✓ The Merged Group recognises the importance of Health and Safety, and ESG larger,
Slide 12: Indicative Timetable
1 Indicative Timetable* Scheme Booklet anticipated to be dispatched to Vimy Shareholders in late May / early June 2022 with completion targeted in July 2022 2022 May June July First Court Hearing Dispatch Scheme Booklet to Vimy Shareholders Scheme Meeting Second Court Hearing Effective Date Record D
Slide 13: Advanced Assets
Advanced Assets 2 Ready for Development 11
Slide 14: Globally Diversified, Independent, Advanced-Stage Portfolio
2 Globally Diversified, Independent, Advanced-Stage Portfolio Geographically diversified operations across two Tier-1 uranium mining jurisdictions, distinguishing the Merged Group from other single asset uranium juniors Advanced-stage Early-stage to continue Omahola organic pipeline Namibia Resource
Slide 15: Two Advanced World Class Projects
2 Two Advanced World Class Projects Completing Feasibility Studies by End CY22 / CY23 to Have Two Projects in the Development Pipeline Mulga Rock Project (Western Australia) Tumas Project (Namibia) ▪ Vimy completed a DFS in 2018 with a “Refresh” completed in 2020; ▪ DFS is confirming PFS results: an
Slide 16: Located in Highly Attractive Uranium Jurisdictions
2 Located in Highly Attractive Uranium Jurisdictions Australia Namibia ✓ Tier-1 uranium jurisdiction with a mature regulatory ✓ Australia is the Tier-1 mining jurisdiction of choice environment and a highly supportive government ✓ Economically developed and regulated region ✓ 4th largest producer of
Slide 17: Project Overview – Mulga Rock
2 Project Overview – Mulga Rock Mulga Rock Project - 100% Project Location Page 1 of 2 ✓ Located in the Tier-1 mining jurisdiction of Western Australia ✓ Globally significant Mineral Resource of 71.2Mt @ 570ppm for 90.1Mlbs U3O8 positioning Mulga Rock as one of the largest uranium projects in Austra
Slide 18: Project Overview – Tumas
2 Project Overview – Tumas Channel Tumas Project - 100% Reptile(1) 26 Year LOM Achieved with Strong Page 1 of 2 Upside • Tumas Project is similar to the Langer Heinrich deposit and very well understood ✓ Ore Reserves of 68.4Mlbs increased by 121% in CY2021 by the Deep Yellow team ✓ 48.2Mlbs Inferred
Slide 19: Exploration Pipeline
Exploration Pipeline 3 Building Production Organically 17
Slide 20: Australian Project Pipeline
3 Australian Project Pipeline Alligator River Project, Northern Territory – 100% Project Location ✓ Located in the world class uranium province of Alligator River, which hosts some of the highest grade uranium deposits in Australia ✓ High-grade, unconformity uranium-gold deposits (Athabasca-style) ✓
Slide 21: Namibian Exploration Pipeline
3 Namibian Exploration Pipeline Omahola Basement Project - New Focus • Measured, Indicated and Inferred Resource base of 125Mlbs at 190ppm U3O8 across the Ongolo, MS7 and Inca deposits • 50km prospective zone with strong potential for additional discoveries • Shallow drilling program of ~200-holes f
Slide 22: Summary
Ambassador Pit North Works 4 Summary 20
Slide 23: Compelling Opportunity to Build the Leading Global Uranium Platform
4 Compelling Opportunity to Build the Leading Global Uranium Platform Unique Opportunity to Unlock High Value with the Emergence of a Major Global Platform Able to Attract Investors, Capital and Large Off-takers Key Benefits to Shareholders ✓ ✓ Merger creates a uranium company with a 389Mlbs Resourc
Slide 24: Appendix
Appendix ae ww’ ; Di Ww ap eep Yello VIMY
Slide 25: Board Composition of the Merged Group
Board Composition of the Merged Group Highly Experienced Leadership Team of Seasoned Industry Veterans(1) Highly experienced mining Chris executive, with over 30 Salisbury years of global experience across senior strategic and Non-Executive operational roles for the Chairman Rio Tinto Group. He is a
Slide 26: Enhanced Scale and Financial Profile
Enhanced Scale and Financial Profile Strong Combined Financial Profile, Increased Scale, and Enhanced Global Significance Deep Yellow Vimy Pro-Forma Share price A$ 0.970 0.240 N/A (as of close 25 March 2022) No. of shares on issue M 388(1) 1,171(2) 733(3) (fully diluted) Market capitalisation(4) A$M
Slide 27: Future M&A Strategy
Future M&A Strategy Our M&A Strategy to Acquire Further Assets ✓ Merger to provide a platform for disciplined, value-accretive acquisitions ✓ Establishing a multi-project, global uranium company aiming to sustain up to 10+ Mlbs per annum with multi-mine capability ✓ Dual pillar approach focussed on
Slide 28: Deep Yellow JORC Mineral Resource Table
Deep Yellow JORC Mineral Resource Table (released to ASX on 9 March 2022) Figures have been rounded and totals may reflect small rounding errors. XRF chemical analysis unless annotated otherwise. eU3O8 – equivalent uranium grade as determined by downhole gamma logging. # Combined XRF Fusion Chemical
Slide 29: Vimy Resources JORC Mineral Resource Table
Vimy Resources Mulga Rock – Uranium Resource (released to ASX on 11 July 2017) JORC Mineral Deposit Resource Resource category Cut-off Grade Tonnes (Mt)(1) U3O8 (ppm)(2) U3O8 (Mlbs) (ppm U3O8) Resource Mulga Rock East Princess Indicated Inferred 150 150 2 1.3 820 420 3.6 1.2 Table Ambassador Measure
Slide 30: Peer Comparison Information – Mineral Resource Estimates
Peer Comparison Information – Mineral Resource Estimates Total 100% 100% 100% 100% Total Att. Att. Att. Attributable Company Stage Measured Indicated Inferred Resources(3) Measured Indicated Inferred Information Source Resources(3) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) Bannerman En
Slide 31: Peer Comparison Information – Mineral Resource Estimates (cont’d)
Peer Comparison Information – Mineral Resource Estimates (cont’d) Total 100% 100% 100% 100% Total Att. Att. Att. Attributable Company Stage Measured Indicated Inferred Resources(2) Measured Indicated Inferred Information Source Resources(2) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) (Mlbs) SED
Slide 32: Peer Comparison Information – Production Capacity
Peer Comparison Information – Production Capacity Company Company Code Announcement Title Announcement Date Ownership Production (attr.) Berkeley Energia BKY-AU Investor Presentation 18 October 2018 100% 4.4 Bannerman Energy BMN-AU Etango 8 Accelerated Pathway to Development 3 February 2022 95% 3.3
Slide 33: Deep Yellow Limited Vimy Resources Limited
Deep Yellow Limited Vimy Resources Limited For further information: For further information: T: +61 8 9286 6999 T: +61 8 9389 2700 E: info@deepyellow.com.au E: info@vimyresources.com.au W: www.deepyellow.com.au W: www.vimyresources.com.au : @deepyellowltd : @Vimy_Resources : deep-yellow-limited : vi