Magnum d'Or Resources, Inc. (fka MDOR)

[dshmd50]

following the money trail, as best as one is able...............


April 30, 2009

http://finance.yahoo.com/news/Magnum-Retires-Debt-prnews-15095743.html?.v=1

"In an effort to continue creating shareholder value, Magnum has reduced the amount of outstanding debt through re-evaluation of its agreements. By exercising certain rights to those obligations the Company and its debtors were able to convert their debt to equity.

The company has officially retired, as of April 29, 2009, $927,000 US of $12% Note obligations. This equates to an approximate 55% reduction in the amount of outstanding debt held by investors of the company."

Cash in the treasury as of September 30, 2008 was reported as $510,042.00. Two subsequent financings ( unsecured 12% Promissory Notes with attached $1.00 warrants exercisable for two years ), back-to-back end September and early October 2008 generated $1,382,000.00 of debt.

The wording "By exercising certain rights to those obligations the Company and its debtors were able to convert their debt to equity." is vague. One is lead to believe that the $1.00 warrants were possibly repriced and exchanged for MDOR paper with additional funds entering the treasury. Exactly how much money is anyone's guess. These figures and the recent changes in share capital unfortunately may not be apparent in the anticipated but again late filing for activities end March 2009. ( The moderator for the IHUB MDOR BB should request an update on share capital ).

Nevertheless, the 55% debt reduction estimate is reasonably accurate and suggests that ~$760,000.00 of debt remains.

As an aside, the filing for end December 2008 states:

"the Company had total assets of $1,615,746, comprised of $5,647 in receivables, $85,195 in prepaid expenses, $983,372 in property and equipment, and $541,159 in equipment and utility deposits." Property and equipment figures appeared to increase by ~$300,000.00.

Profitability at Magog is both unknown and uncertain at this time. Expanding operations there and purchasing the Colorado facility will take money. Exactly how much share capital has been recently used and how much will be utilized to fund MDOR's future business is anyone's guess. Equity dilution is important and critical.

With a significant positive cash flow from Magog and Colorado at least six months in the making, the current bottom-line is that 'cash is the key'.

Best of luck,

DSH