Deep Yellow Limited Recently Picked As The Inside Trader Pick Of The Week

Symbol / Company

DYL / DEEP YELLOW LIMITED

Date Picked

30-10-2009

Price When Picked

$0.330

Company Overview

Todays pick is Deep Yellow (DYL), an Australian-based pure uranium exploration Company with extensive operations in the southern African nation of Namibia and in Australia. The last few days has seen the share price fall from 38c to 33c in line with the general market downturn. However, we have also seen a Director buy $5M worth of shares this week which is in addition to the million that he purchased earlier in the month. It is also looking well funded and supported by major shareholders including Paladin Energy which is being touted as a potential take over source. If you believe that Uranium will be a fuel of the future then have a look at this stock. ■Market Capitalisation ~ $393M (at 35 cents) ■Well-funded with ~ $42M in cash and liquid assets ■Top 10 shareholders hold ~58% (Paladin Energy largest at 19.61%) ■Top 40 shareholders hold ~ 71% DYL’s principal development focus in Namibia is through its 100% owned subsidiary Reptile Uranium Namibia P/L (Reptile) at the mid to high grade INCA primary uraniferous magnetite project and the extensive secondary calcrete deposits contained in the Tumas-Oryx-Tubas palaeochannel and fluviatile sheetwash systems. In Australia the Company is focused on resource delineation of discoveries in the Mount Isa district - Queensland, these include the Queens Gift, the Conquest and Slance Prospects and within the Isa West Project area, the Eldorado, Thanksgiving, Bambino and Turpentine Prospects. A pipeline of other projects and discoveries in both countries are continually being examined and there is extensive exploration potential for new, additional uranium discoveries in both Namibia and Australia. 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 bodes well for the future of uranium and its price. DYL is setting itself up to be a supplier of this strategic metal through aggressive and successful exploration and project acquisition programmes. The Board approved a 2009-2010 exploration budget of $20 million. Expenditure levels will approximate $2 million per month through to November as a result of the intensive drill programmes underway

Nielsen Indicator Buying Level

0.6 times more buyers than sellers but the buyers are showing aggression as the smart money indictor is above 1.3

Weekly Trend Analysis

uptrend

Daily Trend Analysis

downtrend

Short Term Support

32c

Short Term Resistance

38c