X0202 3 2007-10-26 0 0001187520 DENALI FUND INC. DNY 0001292288 Horejsi John 2344 SPRUCE ST, STE A BOULDER CO 80302 1 0 0 0 Common Stock 2939220 I By Self as Beneficiary The shares listed are owned by the Lola Brown Trust No. 1B. The trustees of the Lola Brown Trust No. 1B (the "Brown Trust") are Badlands Trust Company LLC ("Badlands"), Susan L. Ciciora and Larry Dunlap. Such trustees may be deemed to control the Brown Trust and may be deemed to possess indirect beneficial ownership of the Shares held by the Brown Trust. However, none of the trustees, acting alone, can vote or exercise dispositive authority over Shares held by the Brown Trust. Accordingly, Badlands, Ms. Ciciora and Mr. Dunlap disclaim beneficial ownership of the Shares beneficially owned, directly or indirectly, by the Brown Trust. Mr. Horejsi is a beneficiary of the Brown Trust. John Horejsi 2007-11-02