DNO International ASA - Update on the notice from KRG dated 21 September 2009

Reference is made to the Stock Exchange Notice dated 21 September 2009 in relation with the Notice from Kurdistan Regional Government (KRG).
 
The Notice dated 21 September 2009 from KRG is a direct consequence of Oslo Stock Exchange (OSE) disclosing selective confidential information to the media, which is causing the media to publish speculative, misleading and incorrect information. This, according to the KRG Notice, is causing unjustifiable and incalculable harm to the reputation of the KRG and the Minister of Natural Resources. Dr. Ashti A Hawrami.
 
Furthermore, OSE had no rights to disclose confidential information relating to a foreign authority and one of its officials, without consulting or advising the relevant Norwegian authorities or the KRG itself.
 
The Board of DNO has submitted a letter to the Board of OSE requesting that the suspension of trading the DNO shares must be maintained for a few more days until the situation caused by the notice from KRG is resolved. Until then the pricing of the shares will be difficult and could lead to unpredictable price variations.
 
Despite such request from DNO and the fact that the Notice from KRG is caused by the wrongful doings by OSE, the suspension of trading the DNO shares has been lifted by OSE.
 
DNO is now in discussions with KRG with to resolve the situation as soon as possible. According to the KRG Notice, the full rights to the PSC will be reinstated once this has been achieved.
 
DNO is preparing for legal actions against OSE for damages as a result of willful breach of confidentiality, and the Company expects to submit a letter to OSE during the next few days.
 
The Board of Directors in DNO will now investigate strategic options including moving the listing of the Company's shares to another exchange. Such alternative listing may be the whole Company or alternatively the Subsidiary holding the licenses within the Kurdistan Region.
 
The content of this Stock Exchange Notice is without prejudice.
 
 
DNO International ASA
24 September, 2009