DNO ASA — Capital/Financing Update 2010

Nov 17, 2010

Contemplated Private Placement of Equity

DNO International ASA has retained ABG Sundal Collier Norge ASA as Lead Manager

and sole bookrunner and DnB NOR Markets as Co-Manager to advise on and effect a

contemplated private placement of up to 45 million new shares directed towards

Norwegian and international institutional investors in such jurisdictions as

permitted or catered for by exemption rules under applicable securities laws

(the "Private Placement").

The Private Placement will be carried out through a book-building process, and

will consist of up to 45 million new shares, equivalent to approximately 5% of

the number of outstanding shares in DNO International ASA. The minimum

subscription and allocation is the NOK or share equivalent to EUR 50,000.

Use of proceeds from the private placement will be exploration and appraisal

drilling beyond the current investment plans, new license entries and general

corporate purposes.

The book-building period will commence today 17 November 2010 at 17:30 CET and

close on 18 November 2010 at 07:30 CET. The Company may, however, at any time

resolve to close or extend the book-building period at its own discretion and

for any reason.

The new shares to be issued in connection with the Private Placement will be

issued pursuant to the authorization granted to the Board of Directors at the

annual general meeting on 18 June 2009.

Oslo, 17 November 2010

DNO International ASA

Corporate Communications

Contacts:

Media:

Communication Director Tom Bratlie

Phone: +47 905 21 904

Financial market:

CFO Haakon Sandborg

Phone: +47 23 23 84 80

IMPORTANT NOTICE:

This notice is not for distribution to United States new services or for

dissemination in the United States, Canada, Japan or Australia or elsewhere

where such dissemination is not appropriate.

The contents of this announcement have been prepared by and are the sole

responsibility of DNO International ASA ("DNO"). ABG Sundal Collier Norge ASA

and DnB NOR Markets are acting exclusively for DNO and no one else and will not

be responsible to anyone other than DNO for providing the protections afforded

to their respective clients, or for advice in relation to the contemplated

Private Placement and the contents of this announcement or any of the matters

referred to herein.

The distribution of this announcement and other information in connection with

the Private Placement may be restricted by law in certain jurisdictions.

Persons into whose possession this announcement or such other information should

come are required to inform themselves about and to observe any such

restrictions.

This announcement may not be used for, or in connection with, and does not

constitute, any offer to sell, or an invitation to purchase, any securities. The

Private Placement will not be made in any jurisdiction or in any circumstances

in which such offer or solicitation would be unlawful.

The securities referred to herein have not been and will not be registered under

the US  Securities Act of 1933, as amended, and may not be  offered or sold in

the United States or to US persons unless the securities are registered under

the Securities Act, or an exemption from the registration requirements of the

Securities Act is available. No public offering of the securities will be made

in the United States.

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1463560]