valuation, page-23

Hi mate,

A good question. Many of us have been debating it for months and a few of us have indulged in a little too much navel gazing, and tea-leave reading.

What I can tell you from analysing the Broker trades is that since start of February, and probably even further back, there has been no major buying or selling. There is complete dis interest in the stock. None of the major holders have bailed, and no new money coming into the stock. The broker analysis suggests small buyers/sellers have been entering and exiting.

The market has zero interest at this time.

And so, I would think that any drilling success could potential catch a lot of people short - I do think there are people sitting on the sidelines, who - like yourself - sold much higher and continue to watch. But overall, I don't think the market knows very much about this story at all.

Finally, as a reminder to those that may have forgotten.....the stock was trading at 4.5/5cc at the time it went into a trading halt - equivalent to 90c/$1.00. At it was only trading at that level after the announcement of the CR was done because CEO had actually been stabilising around the 7c mark ($1.40) long after the massive stock dump by Pattersons, and after teh "heat" of +10c prices had come out of it.

For the stock to then come out of the share reconstruction trading at the 2.5c (50c)placement price has surprised all of us, but market sentiment globally AT THAT TIME was horrible and lots of stocks struggled to raise capital. That CEO/DRG returned to the bourse at 2.5c supports my view that no-one outside the select few have any interest in teh story. Those that wanted to get out left a long time ago. No new buyers have yet stepped up to the plate, hence - no liquidiy and no interest.

It leads me to conclude that people could get "caught short" if DRG's drilling is successful.

Good luck