DNO International ASA - Stock Exchange Release from Audax Resources LTD

Reference is made to a stock exchange release issued by Audax Resources LTD ("Audax") to the Australian Stock Exchange (ASX) on 16 October 2009, confirming that DNO and Audax have signed a letter of intent on the Chorbane Exploration Permit in Tunisia.
Audax is an oil, gas, gold and base metal exploration company with operated assets in Australia, Italy and Tunisia. The company is headquartered in Perth, Western Australia and is listed on the Australian Stock Exchange. A second technical office is operated out of Vienna, Austria.
Audax is the operator and holds a 100% interest for the Chorbane Exploration Permit onshore Tunisia. Under the LOI, DNO would earn a 50% interest in the Permit by paying 100% of the costs for the first exploration well. The LOI is subject to a number of conditions precedent including the signing of a farm in agreement. The execution of the farm in agreement would be subject to board approval, all necessary government authorizations and formal documentation.
The forward work commitment for the Chorbane permit requires reprocessing of 1000km of 2D seismic processing and the drilling of one exploration well.
DNO International ASA
16 October 2009