buys convertible notes, page-36

Morning guys,

As per Green Leaders June 2009 report I suspect that mine development will be funded from operational cash flow.

(Refer their cash flow report - can be found on Dragon's website).

Their assumptions are further strengthened due to the stronger Euro metrics experienced by DRA than Green Leader's assumptions provided for.

CHN Quarterly Report interesting.

Expecting some significant Resource upgrade soon (before 30-June when DRA option expires?). Reading their report some statements give me confidence that they will exercise the Option. My expectations are:

(1) Improved Resource upgrade
(2) Capital raising to sophisticated investors (Canadian?)
(3) Exercise of DRA Option
(4) Increase in CHN share price

Thus, I expect prior to 30-June for DRA:

(1) $8m Australian received.
(2) 2 million CHN shares (current value approx $1m)

Questions for DRA are all good thanks. Will call asap after the Quarterly comes in.

Also, an aside - the 'temporary' halt on buying the Con Notes at $1.03 by DRA may not be cash flow related, may simply be due to Company policy regarding trading close to ASX announcements. Market Sensitive QR less than 1 week away.

Good to see this morning that POG in EURO within 2 euro of its all time high. Very fat EURO margins for DRA.

Cheers
John