Stock Exchange Notice

DNO International ASA

(DNO or "the Company")

DNO

Oslo, 11 November 2010

DNO International ASA in Q3 2010: Higher production and solid cash flow from operations

As a result of higher production DNO International ASA delivered increased revenues and improved results from operations in the third quarter.

"I am pleased to note that the good trend in our financial results and cash flow from operations continued into the third quarter. DNO will now enter a period of increased exploration activities and we are also about to secure new exploration acreage both in Mozambique and Yemen. This forms a solid platform for further growth of our Company", says Managing Director Helge Eide.

Key figures (NOK million)

	Q3 2010	Q2 2010	Q3 2009	YTD 2010	YTD 2009
Sales	406.6	284.7	235.5	949.8	643.1
Gross profit	221.4	129.0	86.1	475.8	119.6
EBITDA before special items	309.2	171.7	64.6	636.3	149.6
Netback before special items	281.9	141.1	35.7	561.5	93.0
Net profit before special items	180.3	78.1	-119.2	272.5	-266.7
Special items^{1)}	-326.0	-199.3	-19.0	-525.1	381.4
Net profit (loss) as reported	-145.7	-121.1	-138.2	-252.0	114.9
WI production (bopd)	24,956	15,748	13,413	17,761	11,848
---	---	---	---	---	---

1) Special items relate to accruals according to IFRS related to the ongoing arbitration process, as well as impairment of financial assets, in 2010 and 2009.

The cash position increased by NOK 114 million in the third quarter, bringing DNO's cash position to NOK 936 million by end the period. The year to date cash position has increased by NOK 633 million.

The financial results in the quarter are affected by special items. To comply with the IFRS accounting standards, a provision of NOK 322 million related to claims and legal costs in connection with the ongoing arbitration process has been recorded in the third quarter accounts. DNO continues to dispute the terms and conditions in the arbitration process.

DNO's working interest production increased to 24,956 bopd in the third quarter, up from 15,748 bopd in the second quarter.

Deliveries from the Tawke field in the Kurdistan Region of Iraq showed a significant increase from the second to the third quarter. All recent crude oil deliveries from Tawke are based on short-term delivery arrangements for the local market and supply to the Tawke refinery

DNO has previously communicated that the crude oil deliveries from Tawke may show significant fluctuations, and that the Company's WI production for October is expected to be in the range of 16 000 – 18 000 bopd due to lower crude oil deliveries from Tawke. So far in November Tawke has been delivering crude oil to the Tawke refinery only, at a gross rate of around 4 000 bopd. However, DNO is currently working together with the Kurdistan Regional Government to secure arrangements to again increase the crude oil deliveries to the local market. The Company will update the market further on this when releasing the monthly production report for October.

DNO International ASA

Stranden 1, Aker Brygge

0250 Oslo

Norway

P.O Box 1345

Vika

N-0113 Oslo

Phone: +47 23 23 84 80

Fax: +47 23 23 84 81

www.dno.no

DNO

The production from Yemen continued to decline into the third quarter as expected. This trend will continue until new fields can be brought on stream. The Company has one field development ongoing in Yemen, which is expected to be in production by end 2011.

DNO is at present drilling the exploration well Bastora-1 in the Erbil license in the Kurdistan Region of Iraq. The Summail-1 well site in the Dohuk license is prepared for drilling, estimated to commence in the first quarter of 2011. In Mozambique, DNO will commence drilling of the Chite-1 exploration well by the end of November.

In the third quarter, DNO was awarded exclusive rights to negotiate for the Lower Zambesi block in Mozambique and Block 48 in Yemen. The two new licenses will add another 19,181 sq km of exploration acreage in Mozambique, and 3,767 sq km in Yemen.

For more information, see the attached Q3 2010 Interim Report.

DNO International ASA will hold a presentation at 08:00 CEST today at the Oslo Konserthus in Oslo. A webcast of the presentation is available on DNO's web site, www.dno.no.

Oslo, 11 November 2010