DNO, Audax Nix Tunisian Farm-In Discussions

Reference is made to DNO's stock exchange notice dated October 16, 2009, concerning signing of a letter of intent between Audax Resources Ltd and DNO for a farm-in transaction for the Chorbane permit in Tunisia. The farm-in discussions have now been terminated, as the parties failed to agree on the transaction terms.

DNO continues to see Tunisia as an interesting country for new business development and other Tunisian license opportunities will be pursued going forward.