Envela Corp — Director's Dealing 2010

Jun 3, 2010

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DGSE COMPANIES INC (DGSE)
CIK: 0000701719
Period of Report: 2010-06-02

Reporting Person: SMITH L S (Director, CEO and Chairman, 10% Owner)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2010-06-02	Call option (obligation to sell)	$	S	1	Disposed		Common Stock (1000000)	Direct

Footnotes

F1: According to the terms of the option, the exercise price of the option depends upon date the option is exercised, as set
forth in that certain Option Contract, dated May 25, 2010, by and between the option holder and the Reporting Person, filed
as Exhibit 99.2 to the Schedule 13D/A filed with the SEC by the Reporting Person on June 3, 2010.

F2: The option was sold to the option holder in return for the option holder's grant of an irrevocable proxy, as represented by
that certain Irrevocable Proxy to Vote Shares, dated May 25, 2010, by and between the option holder and the Reporting
Person, filed as Exhibit 99.1 to the Schedule 13D/A filed with the SEC by the Reporting Person on June 3, 2010, over
3,000,000 shares of the common stock of the Issuer, par value $0.01 per share.