buys convertible notes, page-12

Hi Guys,

A little clarification on DRA buying its own C Notes.

DRA, on maturity, will effectively cancel these notes that its 100% owned subsidiary now owns.

It will do this by the subsidiary taking the 'cash option' and not the 'shares option' on the Notes. The cash will then flow back to DRA on paper, although no real cash will change hands.

The DRA SP would have to appreciate to 17.5c (ie $1.05/6) before any C Note holder would opt for the 'share option'.

The reason why DRA is buying them now is that it has surplus cash and can save some expenses for current shareholders.

For example on today's purchase of 325,000 notes

Gain on face value of notes - 2c x 325,000 = $6,000

Approximate interest saving - $34,000

Thus reason for DRA to buy notes is the $40k savings.

Dott - I agree that EUG conducting any corporate takeover in CY 2010 will not be attractive to L/T shareholders. It is good to think, however, that between most of us HCer's we should have >10% of DRA and if we could act in unison could create a blocking stake, not allowing EUG to reach 90%...

Cheers
John