Dragon Energy Ltd.'snonrenounceable entitlement issueto raise up to A$1 million received valid applications for only about 7% of theshares offered.

Of the maximum 206,426,374 new shares offered on the basis of1 new share for each share held, applications were received for only 14,642,250shares, according to the July 20 statement.

The company is looking to fund development of its iron ore projectin Western Australia.