Oslo Stock Exchange

DNO received notice today from KRG (Kurdistan Regional Government ) and to the attached Press Release published by KRG on 19 September 2009. In these documents KRG refers to the recent publications made by Oslo Stock Exchange ("OSE") in connection with the sale of treasury shares by DNO on 10 October 2008.

DNO notes the reaction by KRG to the recent publications by OSE and the media, and the perceived consequences thereof to KRG. DNO will direct its full attention to the situation and the requirements of KRG. DNO will explore all options available to protect the interests of DNO shareholders.

DNO strongly rejects that OSE had any rights to make public the content of the decision made by the Board of Directors of OSE and decision made by Oslo Stock Exchange Appeal Committee (OSEAC). By doing so OSE has breached its confidentiality obligations and released misleading and incomplete information. This has caused the media to publish speculative, misleading and incorrect information causing unjustifiable and incalculable harm to the reputation of DNO as well as the KRG and the Minister of Natural Resources.

As reported on Friday 19 September 2009, the Oslo Stock Exchange Appeal Committee (OSEAC) concluded that DNO did not hold insider information related to the sales of the shares from the transaction date in October 2008 and until the Company released the Stock Exchange Notice on 6 April 2009. However, OSE itself has now published confidential information which is far beyond what OSE required to be disclosed by DNO. It has been concluded by OSEAC that this was not required to be disclosed by DNO. OSE has however, intentionally decided to ignore applicable laws and regulations and DNO's warning of possible consequences by breach of confidentiality.

DNO is highly critical of OSEs conduct in this process. DNO has advocated strongly that confidentiality obligations imposed by law restrict public access to information in this matter. Until recently, OSE also shared DNOs view on this issue, and had decided to black out sections of the decision of the OSE Board of Directors of 17 June this year. However and without forewarning DNO was on the evening of 16 September, the day before the meeting of the OSEAC, informed by OSE that they had decided to grant full disclosure to all parts of the decision.

The wrongful undertakings by OSE have now lead to serious consequences to DNO. DNO is now considering initiating legal actions against OSE for damages as a result of willful breach of confidentiality. The claim for damages may be substantial.

Tags: DNO International