let's ask some questions, page-25

Hi Guys,

Talked to Mike and Peter today. Some notes below are from parts they were happy to be shared and not confidential:

(1) Production target of 75k will be solely dependent upon the grades at Orivesi. Svartliden going well and will easily produce the 39-40k oz target. Grades have improved in April at Orivesi compared to prior quarter and they are trying to work out why grades dropped so much and whether it is temporal or not.

(2) EURO and USD exchange rates have the affect of lowering cost per oz by about USD $30 all else being equal, so margins improving, although of course they are reliant upon good oz production per Quarter. Thus, cost per oz will also be reliant on Orivesi head grade for remainder of year.

(3) Directors are gold bulls and happy to operate at spot rates.

(4) Mine development moving to underground at Svartliden and Jokivisu should be funded out of cash flow along with exploration. So no need for capital raising. However, they have very good relationship with a Nordic bank and can access debt at very low (by Ozzie standards) rates, eg 3-4% so with such low cost of debt may utilise it.

(5) Going underground will raise cost per oz about $50. Expecting Finland cost per oz at high 600's and Svartliden at mid 600's; all else being equal.

(6)Resources and Reserves up until now, whilst cashflow issues were about, DRA only focused on having enough to maintain production. Now in FY10 spending (out of cashflow) a lot on exploration to increase both Resources and Reserves.

(7) Management expectations (from geo's) in recent presentation still hold from coming drilling programmes: Svartliden (+340k oz) and Jokisvu (+300k oz).

(8) Also expect a lot of resources to be transfered into Reserves category in FY10.

(9) Possible/ Probable that DRA will have 1.5-2.0m oz Resource (of differing qualities) by end of FY10 in Scandinavia.

(10) Management haven't provided expectations on coming drilling at Orivesi due to variable grade and difficulty in locating vertical lodes underground. However, safe to say that there is more there. In current Sarvisuo pipe expect 250 oz per vertical meter and targeting 15,000 oz from next 60m to warrant extending pipe down from 540m level.

(11) Because a lot of DRA's Resources are at brownfield operations with existing mine infrastructure and the ore bodies are known means that there is little relative risk in improving resources to reserves compared to some other mines.

(12) Zara Option - CHN currently listing on TSX. This will involve capital raising. If CHN successful then Option will be exercised before 30-June. +$8m to DRA immediately.

(13) Weld Range a possible 'sleeper'. Doesn't represent large value on balance sheet currently but if current majority project stakeholder can successfully raise project equity then will provide the market with a benchmark valuation. Could be good upside here.

(14) Possible dual listing attractive on Oslo market. However, need to place at least $20m with Norwegians. Don't want to unnecessarily dilute current holders at current depressed prices thus LT option. Possibly coincide with development of Kuusamo.

(15) ST priority - Svartliden, Orivesi, Jokisvu. MT priority - Kuusamo. LT priority - Hannhima and regional exploration.

(16) Con Notes now manageable, but expensive debt especially considering ability to access the Nordic debt cheaply. Management may look at options here.

(17) Buy back a possibility of head shares at low prices if/ when surplus cash is present.

(18) Very disappointed with current SP like all of us. However, big vote of confidence that both Peter and Mike are now buying on market... along with Eurogold// Brinkley.

(19) Vision is 250k oz producer with a couple more Scandinavian mines operational and a market cap 4-5 times the current over a several year time frame.

I bought more today at 6.7c (before the phone call).

Cheers
John