Ann: Option to Acquire Dragon Mining's Stake , page-18

re: Ann: CHN: Option to Acquire Dragon Mining... Guys,

By Jun-10 DRA will have well enough cash to pay its way in the CHN project. Given its production output and costs per oz vs. Euro price of gold their profitability and cash flows have never been better.

I am not criticizing the numbers in the POTENTIAL transaction at all... they're fine.

My issue is that currently there is NO deal. DRA has given away its upside; CHN has locked in a deal/ price that it can walk away from and DRA has received NO compensation for providing this option.

I will only be impressed/ satisfied when the actual transaction has been completed.

If CHN was keen on buying the 20% interest then DRA should have negotiated the deal whilst keeping its options open.

How does this announcement benefit DRA?

(1) Does it lock in a commitment from CHN - NO
(2) Does it prevent DRA talking to other parties - YES
(3) Can DRA increase the price if new discoveries made - NO
(4) Could DRA have funded commitments by 06/10 - YES
(5) Has any cash been paid to DRA for this Option - NO

Just my thoughts, and by the way I am not selling.

Cheers
John