2010-04-05-2010-03-31-2010-03-31

Bought producing and nonproducing mineral and royalty interests in 206 counties and parishes in 17 states covering 700,000 gross acres, primarily in TX and ND.

Dorchester Minerals LP, Dallas, (Nasdaq: DMLP) has acquired producing and nonproducing mineral and royalty interests in 206 counties and parishes in 17 states from multiple parties for US$17.7 million in units.

Dorchester Minerals issued 835,000 units in exchange for the assets. Units are currently trading at $21.18 each. The contributing entities conveyed their interests in a partnership that now owns the properties.

The properties consist of varying undivided interests in approximately 700,000 gross acres primarily in Texas and North Dakota. The Texas properties are concentrated in the Permian Basin and include interests in the Seminole (San Andres) Unit and Goldsmith Fields in Gaines and Ector counties.

The North Dakota properties include interests in the Cedar Hills South Unit and portions of the Bakken shale trend. The properties were acquired by the parties in a series of transactions in the early 1990s in which one of Dorchester's predecessors also acquired an undivided interest; consummation of this transaction results in Dorchester increasing its current interest by approximately 25%.

Oil and gas sales volumes attributable to the properties during 2009 were approximately 18,000 barrels and 130 million cubic feet, respectively.

The transaction is structured as a non-taxable contribution and exchange.