DNO INTERNATIONAL ASA - STATUS ARBITRATION PROCEEDINGS

As previously reported DNO Iraq AS (DNOI), a subsidiary of DNO International ASA
(DNO) is involved in arbitration proceedings related to certain third party
interests in Kurdistan. Such third parties were not approved to be part of nor
have any rights in the Production Sharing Contracts (PSC) signed by DNOI
following the reviews which were completed in March 2008.

DNOI has rejected the basis for any claims from such third parties, but the
first part of the arbitration ruled that the third parties have the right to
seek compensation for damages from DNOI.

The arbitration process has now reached a point whereby both parties have filed
their submissions regarding damages based on work undertaken be their respective
third party experts. The claimants' submission for damages is approximately USD
144 million. DNOI has responded that the damages should be at a level of
approximately USD 12 million.

The arbitration proceedings will now continue with the hearing scheduled for
last week of February and a final award with respect to compensation for damages
is expected during April or May.

The ongoing arbitration proceedings are confidential as is any award, subject of
course to any legal obligation on DNO to disclose or report the final award To
meet legal disclosure requirements, DNO has concluded that the parties'
submission for damages should be reported through this notification. DNO is
however not able to provide any further comments related to the arbitration at
this point in time.


DNO International ASA
25 January, 2010

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)


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