Document:

REGISTRATION RIGHTS AGREEMENT
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     Registration  Rights  Agreement  (the  "Agreement"), dated as of August 12,
                                             ---------
2004,  by  and between Hyperdynamics Corporation , a corporation organized under
the  laws  of  State  of  Delaware, with its principal executive office at ,9700
                                                                            ----
Bissonet,  Suite  1700,  Houston  TX 77036 (the "Company"), and Dutchess Private
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Equities  Fund,  II,  L.P.,  a  Delaware  limited partnership with its principal
office  at  312  Stuart  Street,  Boston,  MA  02116  (the  "Holder").
                                                             ------

     Whereas,  in  connection  with  the Investment Agreement by and between the
Company and the Investor of even date herewith (the "Investment Agreement"), the
                                                     --------------------
Company  has agreed to issue and sell to the Investor an indeterminate number of
shares  of  the  Company's Common Stock, $0.001 par value per share (the "Common
                                                                          ------
Stock"), to be purchased pursuant to the terms and subject to the conditions set
  ---
forth  in  the  Investment  Agreement;  and

     Whereas,  to  induce  the  Investor  to  execute and deliver the Investment
Agreement,  the  Company has agreed to provide certain registration rights under
the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations
thereunder, or any similar successor statute (collectively, the "1933 Act"), and
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applicable  state  securities  laws,  with respect to the shares of Common Stock
issuable  pursuant  to  the  Investment  Agreement.

     Now  therefore,  in  consideration of the foregoing premises and the mutual
covenants  contained  hereinafter and other good and valuable consideration, the
receipt  and  sufficiency  of which are hereby acknowledged, the Company and the
Investor  hereby  agree  as  follows:

SECTION  1.  DEFINITIONS.
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     As  used  in  this  Agreement, the following terms shall have the following
meanings:

     "Execution  Date"  means  the  date  first  written  above.
      ---------------

     "Investor"  means  Dutchess  Private  Equities  Fund,  II, L.P., a Delaware
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limited  partnership.

     "Person"  means a corporation, a limited liability company, an association,
      ------
a  partnership,  an  organization,  a business, an individual, a governmental or
political  subdivision  thereof  or  a  governmental  agency.

"Potential Material Event" means any of the following: (I) the possession by the
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Company  of  material  information  not  ripe for disclosure in the Registration
Statement, which shall be evidenced by determinations in good faith by the Board
of  Directors  of  the  Company  that  disclosure  of  such  information  in the
Registration  Statement  would be detrimental to the business and affairs of the
Company, or (II) any material engagement or activity by the Company which would,
in  the  good  faith  determination of the Board of Directors of the Company, be
adversely  affected  by  disclosure  in the Registration Statement at such time,
which  determination  shall  be accompanied by a good faith determination by the
Board  of  Directors  of  the  Company  that the Registration Statement would be
materially  misleading  absent  the  inclusion  of  such  information.

     "Principal  Market"  shall  mean  The  American  Stock  Exchange,  National
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Association  of  Securities  Dealer's, Inc. Over-the-Counter electronic bulletin
      -
board, the Nasdaq National Market or The Nasdaq SmallCap Market whichever is the
principal  market  on  which  the  Common  Stock  is  listed.

     "Register,"  "Registered,"  and  "Registration"  refer  to the Registration
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effected  by  preparing  and  filing  one (1) or more Registration Statements in
compliance  with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any
successor  rule  providing  for offering securities on a continuous basis ("Rule
                                                                            ----
415"),  and  the  declaration  or ordering of effectiveness of such Registration
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Statement(s)  by  the  United  States  Securities  and  Exchange Commission (the
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"SEC").
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     "Registrable  Securities"  means  (I)  the shares of Common Stock issued or
      -----------------------
issuable  pursuant  to  the Investment Agreement, and (II) any shares of capital
stock issued or issuable with respect to such shares of Common Stock, if any, as
a  result  of  any  stock  split,  stock dividend, recapitalization, exchange or
similar event or otherwise, which have not been (X) included in the Registration
Statement  that  has  been  declared  effective  by  the  SEC  or (Y) sold under
circumstances  meeting  all  of  the  applicable  conditions of Rule 144 (or any
similar  provision  then  in  force)  under  the  1933  Act.

     "Registration  Statement"  means  the registration statement of the Company
      -----------------------
filed  under  the  1933  Act  covering  the  Registrable  Securities.

     All  capitalized  terms  used  in  this Agreement and not otherwise defined
herein  shall  have  the  same  meaning  ascribed  to  them as in the Investment
Agreement.

     SECTION  2.  REGISTRATION.
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     (A)  The Company shall, within than fifteen (15) days of the Company filing
its  Form  10K for 2005, but in no event later than October 15, 2005 , file with
the  SEC the Registration Statement or Registration Statements (as is necessary)
on  Form  SB-2 (or, if such form is unavailable for such a registration, on such
other  form as is available for such a registration), covering the resale of all
of the Registrable Securities, which Registration Statement(s) shall state that,
in  accordance  with  Rule 416 promulgated under the 1933 Act, such Registration
Statement  also  covers such indeterminate number of additional shares of Common
Stock  as  may  become  issuable  upon  stock splits, stock dividends or similar
transactions.  The  Company shall initially register for resale 6,400,000 shares
of  Common Stock which would be issuable on the date preceding the filing of the
Registration  Statement  based  on the closing bid price of the Company's Common
Stock  on  such date and the amount reasonably calculated that represents Common
Stock  issuable to other parties as set forth in the Investment Agreement except
to  the  extent  that  the  SEC  requires  the  share  amount to be reduced as a
condition  of  effectiveness

     (B)  The  Company  shall  use  commercially  reasonable efforts to have the
Registration  Statement(s)  declared  effective  by  the  SEC within ninety (90)
calendar  days  after  the  Execution  Date.

     (C)  The  Company  agrees  not  to  include  any  other  securities  in the
Registration  Statement  covering  the Registrable Securities without Investor's
prior  written  consent  which  Investor  may  withhold  in its sole discretion.
Furthermore,  the  Company  agrees  that it will not file any other Registration
Statement  for  other  securities,  until  thirty  calendar  days  after  the
Registration  Statement  for the Registrable Securities is declared effective by
the  SEC.

     SECTION  3.  RELATED  OBLIGATIONS.
                  --------------------

     At  such  time  as  the  Company  is  obligated  to  prepare  and  file the
Registration  Statement  with the SEC pursuant to Section 2(a), the Company will
effect  the  registration  of  the Registrable Securities in accordance with the
intended  method  of  disposition thereof and, with respect thereto, the Company
shall  have  the  following  obligations:

     (A)  The  Company  shall  use commercially reasonable efforts to cause such
Registration  Statement  relating  to  the  Registrable  Securities  to  become
effective  within  ninety (90) days after the Execution Date and shall keep such
Registration  Statement  effective until the earlier to occur of (I) the date on
which  (A)  the Investor shall have sold all the Registrable Securities; and (B)
the Investor has no right to acquire any additional shares of Common Stock under
the  Investment  Agreement  (the  "Registration  Period").  The  Registration
                                   --------------------
Statement  (including  any  amendments  or  supplements thereto and prospectuses
contained  therein) shall not contain any untrue statement of a material fact or
omit  to  state  a  material fact required to be stated therein, or necessary to
make  the  statements  therein, in light of the circumstances in which they were
made,  not misleading. The Company shall use its commercially reasonable efforts
to  respond  to  all SEC comments within seven (7) business days from receipt of
such  comments by the Company. The Company shall use its commercially reasonable
efforts  to  cause  the  Registration  Statement  relating  to  the  Registrable
Securities  to  become  effective  no  later than five  (5)  business days after
notice  from  the SEC that the Registration Statement may be declared effective.
The  Investor  agrees  to provide all information which it is required by law to
provide  to  the  Company,  including  the intended method of disposition of the
Registrable  Securities,  and the Company's obligations set forth above shall be
conditioned  on  the  receipt  of  such  information.

     (B)  The  Company  shall  prepare  and  file  with  the SEC such amendments
(including  post-effective  amendments)  and  supplements  to  the  Registration
Statement  and  the  prospectus  used  in  connection  with  such  Registration
Statement,  which  prospectus  is  to  be filed pursuant to Rule 424 promulgated
under  the  1933  Act,  as  may be necessary to keep such Registration Statement
effective  during  the Registration Period, and, during such period, comply with
the  provisions  of  the  1933  Act  with  respect  to  the  disposition  of all
Registrable  Securities  of  the  Company covered by such Registration Statement
until  such  time as all of such Registrable Securities shall have been disposed
of  in  accordance  with  the  intended  methods  of disposition by the Investor
thereof as set forth in such Registration Statement.  In the event the number of
shares  of  Common Stock covered by the Registration Statement filed pursuant to
this  Agreement  is  at  any  time  insufficient to cover all of the Registrable
Securities,  the  Company shall amend such Registration Statement, or file a new
Registration Statement (on the short form available therefor, if applicable), or
both, so as to cover all of the Registrable Securities, in each case, as soon as
practicable,  but  in  any  event  within  thirty  (30)  calendar days after the
necessity  therefor arises (based on the then Purchase Price of the Common Stock
and  other  relevant  factors  on  which the Company reasonably elects to rely),
assuming  the  Company  has sufficient authorized shares at that time, and if it
does  not,  within  thirty  (30) calendar days after such shares are authorized.
The  Company  shall  use commercially reasonable efforts to cause such amendment
and/or  new  Registration  Statement  to become effective as soon as practicable
following  the  filing  thereof.

     (C)  The  Company  shall  make  available to the Investor whose Registrable
Securities  are  included  in  any  Registration Statement and its legal counsel
without charge (I) promptly after the same is prepared and filed with the SEC at
least  one (1) copy of such Registration Statement and any amendment(s) thereto,
including financial statements and schedules, all documents incorporated therein
by  reference  and  all  exhibits,  the prospectus included in such Registration
Statement  (including  each  preliminary  prospectus)  and, with regards to such
Registration  Statement(s), any correspondence by or on behalf of the Company to
the SEC or the staff of the SEC and any correspondence from the SEC or the staff
of the SEC to the Company or its representatives; (II) upon the effectiveness of
any  Registration  Statement,  the  Company  shall  make available copies of the
prospectus,  via  EDGAR,  included  in  such  Registration  Statement  and  all
amendments  and  supplements  thereto; and (III) such other documents, including
copies  of  any  preliminary or final prospectus, as the Investor may reasonably
request  from  time  to  time  in  order  to  facilitate  the disposition of the
Registrable  Securities.

     (D)  The  Company shall use commercially reasonable efforts to (I) register
and  qualify  the  Registrable  Securities covered by the Registration Statement
under  such  other  securities  or  "blue sky" laws of such states in the United
States  as  any  Investor  reasonably  requests;  (II) prepare and file in those
jurisdictions,  such  amendments  (including  post-effective  amendments)  and
supplements  to  such  registrations  and  qualifications as may be necessary to
maintain  the  effectiveness  thereof during the Registration Period; (III) take
such  other  actions  as  may  be  necessary  to maintain such registrations and
qualifications  in  effect at all times during the Registration Period, and (IV)
take  all  other  actions  reasonably  necessary  or  advisable  to  qualify the
Registrable  Securities  for sale in such jurisdictions; provided, however, that
the  Company  shall  not  be  required in connection therewith or as a condition
thereto  to  (X)  qualify  to do business in any jurisdiction where it would not
otherwise  be  required  to  qualify  but  for this Section 3(d), or (Y) subject
itself to general taxation in any such jurisdiction.  The Company shall promptly
notify  each  Investor  who  holds  Registrable Securities of the receipt by the
Company  of  any notification with respect to the suspension of the registration
or  qualification  of  any  of  the  Registrable  Securities  for sale under the
securities  or  "blue  sky" laws of any jurisdiction in the United States or its
receipt  of actual notice of the initiation or threatening of any proceeding for
such  purpose.

     (E)  As  promptly  as  practicable  after becoming aware of such event, the
Company  shall  notify  Investor  in  writing of the happening of any event as a
result  of  which the prospectus included in the Registration Statement, as then
in  effect, includes an untrue statement of a material fact or omission to state
a  material  fact  required  to  be  stated  therein  or  necessary  to make the
statements  therein,  in  light of the circumstances under which they were made,
not misleading ("Registration Default") and use all diligent efforts to promptly
                 --------------------
prepare  a  supplement  or amendment to such Registration Statement and take any
other  necessary  steps  to  cure  the  Registration  Default,  (which,  if such
Registration  Statement is on Form S-3, may consist of a document to be filed by
the  Company  with  the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the
1934  Act  (as  defined  below)  and  to  be  incorporated  by  reference in the
prospectus)  to  correct  such  untrue statement or omission, and make available
copies  of such supplement or amendment to each Investor. The Company shall also
promptly  notify  Investor (I) when a prospectus or any prospectus supplement or
post-effective  amendment has been filed, and when the Registration Statement or
any  post-effective  amendment  has  become  effective (the Company will prepare
notification  of  such effectiveness which shall be delivered to the Investor on
the  same  day  of  such effectiveness and by overnight mail), additionally, the
Company will promptly provide to the Investor, a copy of the effectiveness order
prepared  by  the SEC once it is received by the Company; (II) of any request by
the  SEC  for amendments or supplements to the Registration Statement or related
prospectus  or  related  information,  (III)  of  the  Company's  reasonable
determination  that  a  post-effective  amendment  to the Registration Statement
would  be appropriate, (IV) in the event the Registration Statement is no longer
effective,  or  (V)  if  Registration  Statement  is  stale  as  a result of the
Company's  failure  to  timely  file  its  financials  or otherwise. The Company
acknowledges  that  its failure to cure the Registration Default within ten (10)
business  days  will cause the Investor to suffer damages in an amount that will
be  difficult  to  ascertain.  Accordingly,  the  parties  agree  that  it  is
appropriate  to  include  a  provision  for  liquidated  damages.  The  parties
acknowledge  and  agree  that the liquidated damages provision set forth in this
section  represents the parties' good faith effort to quantify such damages and,
as  such,  agree  that  the  form  and  amount  of  such  liquidated damages are
reasonable  and  will  not  constitute  a  penalty.  It  is the intention of the
parties that interest payable under any of the terms of this Agreement shall not
exceed  the  maximum  amount permitted under any applicable law. If a law, which
applies  to  this  Agreement  which sets the maximum interest amount, is finally
interpreted  so  that the interest in connection with this Agreement exceeds the
permitted  limits,  then:  (1)  any such interest shall be reduced by the amount
necessary  to  reduce  the  interest  to  the  permitted limit; and (2) any sums
already  collected  (if  any) from the Company which exceed the permitted limits
will be refunded to the Company.  The Investor may choose to make this refund by
reducing  the  amount  that the Company owes under this Agreement or by making a
direct  payment to the Company.  If a refund reduces the amount that the Company
owes  the Investor, the reduction will be treated as a partial payment.  In case
any  provision of this Agreement is held by a court of competent jurisdiction to
be  excessive  in  scope  or  otherwise invalid or unenforceable, such provision
shall  be adjusted rather than voided, if possible, so that it is enforceable to
the  maximum  extent  possible,  and  the  validity  and  enforceability  of the
remaining  provisions  of  this  Agreement  will  not  in any way be affected or
impaired  thereby.

     (F)  The  Company  shall use commercially reasonable efforts to prevent the
issuance  of  any  stop  order  or  other  suspension  of  effectiveness  of the
Registration  Statement,  or  the  suspension of the qualification of any of the
Registrable  Securities  for  sale  in any jurisdiction and, if such an order or
suspension  is  issued,  to obtain the withdrawal of such order or suspension at
the  earliest  possible  moment and to notify the Investor who holds Registrable
Securities  being sold of the issuance of such order and the  resolution thereof
or  its  receipt  of actual notice of the initiation or threat of any proceeding
for  such  purpose.

     (G)  The  Company  shall  permit  the  Investor  and one (1) legal counsel,
designated  by  the  Investor,  to  review  and  comment  upon  the Registration
Statement and all amendments and supplements thereto at least one  (1)  calendar
day  prior  to  their  filing  with  the  SEC.
However,  any  postponement  of  a  filing  of  a  Registration Statement or any
postponement  of a request for acceleration or any postponement of the effective
date  or  effectiveness  of  a  Registration Statement by written request of the
Investor  (collectively,  the  "Investor's  Delay") shall not act to trigger any
penalty  of  any  kind,  or  any  cash  amount due or any in-kind amount due the
Investor  from  the  Company  under any and all agreements of any nature or kind
between the Company and the Investor.  The event(s) of an Investor's Delay shall
act  to  suspend  all obligations of any kind or nature of the Company under any
and  all  agreements of any nature or kind between the Company and the Investor

     (H)  At  the  request  of  the  Investor,  the  Company  shall  cause to be
furnished  to  Investor,  on  the  date of the effectiveness of the Registration
Statement,  a  legal  opinion,  in  form  and substance reasonably acceptable to
Investor's  counsel,  dated as of such date, of counsel representing the Company
for  purposes  of  such  Registration  Statement.

     (I)  The  Company  shall  hold in confidence and not make any disclosure of
information  concerning a Investor provided to the Company unless (I) disclosure
of  such  information  is  necessary  to comply with federal or state securities
laws, (II) the disclosure of such information is necessary to avoid or correct a
misstatement  or  omission  in  any Registration Statement, (III) the release of
such  information  is  ordered  pursuant  to  a  subpoena  or  other  final,
non-appealable  order  from  a  court  or  governmental  body  of  competent
jurisdiction,  or (IV) such information has been made generally available to the
public  other  than  by  disclosure  in violation of this Agreement or any other
agreement.  The  Company  agrees that it shall, upon learning that disclosure of
such  information  concerning  a  Investor  is  sought  in  or  by  a  court  or
governmental  body of competent jurisdiction or through other means, give prompt
written  notice  to  such  Investor  and  allow such Investor, at the Investor's
expense,  to undertake appropriate action to prevent disclosure of, or to obtain
a  protective  order  for,  such  information.

     (J)  The  Company  shall  use  commercially  reasonable efforts to maintain
designation  and  quotation  of  all  the  Registrable Securities covered by any
Registration  Statement  on  the  Principal  Market.  If,  despite the Company's
commercially  reasonable  efforts, the Company is unsuccessful in satisfying the
preceding  sentence,  it  shall use commercially reasonable efforts to cause all
the Registrable Securities covered by any Registration Statement to be listed on
each  other national securities exchange and automated quotation system, if any,
on  which  securities of the same class or series issued by the Company are then
listed,  if any, if the listing of such Registrable Securities is then permitted
under  the rules of such exchange or system.  The Company shall pay all fees and
expenses  in  connection with satisfying its obligation under this Section 3(j).

     (K)  The Company shall cooperate with the Investor to facilitate the prompt
preparation and delivery of certificates representing the Registrable Securities
to  be  offered  pursuant  to  the  Registration  Statement  and  enable  such
certificates  to be in such denominations or amounts, as the case may be, as the
Investor  may  reasonably  request  (and  after  any  sales  of such Registrable
Securities  by  the  Investor,  such  certificates  not  bearing any restrictive
legend).

     (L)  The  Company  shall  provide  a transfer agent for all the Registrable
Securities not later than the effective date of the first Registration Statement
filed  pursuant  hereto.

     (M)  If  requested  by  the  Investor,  the  Company  shall  (I) as soon as
reasonably  practical  incorporate  in a prospectus supplement or post-effective
amendment  such  information  as  such  Investor reasonably determines should be
included  therein  relating  to  the  sale  and  distribution  of  Registrable
Securities,  including,  without  limitation,  information  with  respect to the
offering  of  the  Registrable Securities to be sold in such offering; (II) make
all  required  filings of such prospectus supplement or post-effective amendment
as  soon  as  reasonably  possible  after  being  notified  of the matters to be
incorporated  in  such  prospectus  supplement  or post-effective amendment; and
(III)  supplement or make amendments to any Registration Statement if reasonably
requested  by  such  Investor.

     (N)  The  Company  shall  use  commercially reasonable efforts to cause the
Registrable  Securities  covered  by the applicable Registration Statement to be
registered  with  or approved by such other governmental agencies or authorities
as  may  be  necessary  to  consummate  the  disposition  of  such  Registrable
Securities.

     (O)  The  Company  shall  otherwise  use commercially reasonable efforts to
comply  with  all applicable rules and regulations of the SEC in connection with
any  registration  hereunder.

     (P)  Within  one  (1)  business  day after the Registration Statement which
includes  Registrable  Securities  is declared effective by the SEC, the Company
shall deliver to the transfer agent for such Registrable Securities, with copies
to the Investor, confirmation that such Registration Statement has been declared
effective  by  the  SEC.

     (Q)  The  Company  shall  take  all  other  reasonable actions necessary to
expedite  and  facilitate  disposition by the Investor of Registrable Securities
pursuant  to  the  Registration  Statement.

SECTION  4.  OBLIGATIONS  OF  THE  INVESTOR.
             ------------------------------

     (A)  At  least five (5) calendar days prior to the first anticipated filing
date  of  the  Registration  Statement  the Company shall notify the Investor in
writing  of  the  information  the  Company  requires from Investor if  Investor
elects  to  have any of the Registrable Securities included in such Registration
Statement.  It  shall be a condition precedent to the obligations of the Company
to  complete  the  registration  pursuant  to this Agreement with respect to the
Registrable  Securities of the Investor and Investor shall furnish in writing to
the  Company  such information regarding itself, the Registrable Securities held
by  it and the intended method of disposition of the Registrable Securities held
by  it  as  shall  reasonably  be  required  to  effect the registration of such
Registrable  Securities and shall execute such documents in connection with such
registration  as  the  Company  may  reasonably request.  Investor covenants and
agrees  that,  in  connection  with  any  sale  of  Registrable Securities by it
pursuant  to  the  Registration  Statement,  it  shall  comply with the "Plan of
Distribution"  section  of  the current prospectus relating to such Registration
Statement.

     (B)  The  Investor, by Investor's acceptance of the Registrable Securities,
agrees  to  cooperate with the Company as reasonably requested by the Company in
connection  with  the  preparation  and  filing  of  any  Registration Statement
hereunder, unless Investor has notified the Company in writing of an election to
exclude  all Investor's Registrable Securities from such Registration Statement.

     (C)  The  Investor  agrees  that,  upon  receipt of written notice from the
Company  of  the happening of any event of the kind described in Section 3(f) or
the  first  sentence  of  3(e),  such  Investor  will  immediately  discontinue
disposition  of Registrable Securities pursuant to any Registration Statement(s)
covering  such  Registrable Securities until Investor's receipt of the copies of
the supplemented or amended prospectus contemplated by Section 3(f) or the first
sentence  of  3(e)

     SECTION  5.  EXPENSES  OF  REGISTRATION.
                  --------------------------

     All  expenses,  other than underwriting discounts and commissions and other
than  as  set  forth  in  the  Investment Agreement, incurred in connection with
registrations including comments, filings or qualifications pursuant to Sections
2  and  3,  including,  without  limitation,  all  registration,  listing  and
qualifications fees, printing and accounting fees, and fees and disbursements of
counsel  for  the  Company  or  for  the  Investor shall be paid by the Company.

     SECTION  6.  INDEMNIFICATION.
                  ---------------

     In  the  event  any Registrable Securities are included in the Registration
Statement  under  this  Agreement:

     (A)  To  the  fullest extent permitted by law, the Company will, and hereby
does,  indemnify,  hold  harmless  and  defend  Investor  who  holds Registrable
Securities,  the  directors,  officers,  partners,  employees,  counsel, agents,
representatives  of,  and each Person, if any, who controls, any Investor within
the  meaning  of the 1933 Act or the Securities Exchange Act of 1934, as amended
(the  "1934  Act")  (each, an "Indemnified Person"), against any losses, claims,
       ---------               ------------------
damages,  liabilities,  judgments,  fines, penalties, charges, costs, attorneys'
fees,  amounts  paid  in settlement or expenses, joint or several (collectively,
"Claims"),  incurred in investigating, preparing or defending any action, claim,
  -----
suit,  inquiry,  proceeding, investigation or appeal taken from the foregoing by
or  before any court or governmental, administrative or other regulatory agency,
body  or  the  SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("Indemnified Damages"), to which any of them
                                     -------------------
may  become  subject  insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (I)
any  untrue  statement  or  alleged  untrue  statement of a material fact in the
Registration  Statement or any post-effective amendment thereto or in any filing
made  in  connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which the Investor has requested
in  writing that the Company register or qualify the Shares ("Blue Sky Filing"),
                                                              ---------------
or  the  omission  or  alleged  omission to state a material fact required to be
stated  therein  or  necessary  to  make the statements therein, in light of the
circumstances under which the statements therein were made, not misleading, (II)
any untrue statement or alleged untrue statement of a material fact contained in
the  final  prospectus  (as  amended  or  supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or alleged
omission  to  state  therein  any material fact necessary to make the statements
made  therein,  in light of the circumstances under which the statements therein
were  made,  not  misleading, or (III) any violation or alleged violation by the
Company  of  the  1933  Act,  the  1934  Act,  any other law, including, without
limitation,  any  state  securities  law,  or  any rule or regulation thereunder
relating  to  the  offer  or  sale of the Registrable Securities pursuant to the
Registration  Statement  (the matters in the foregoing clauses (i) through (iii)
being,  collectively,  "Violations").  Subject  to the restrictions set forth in
                        ----------
Section  6(c) the Company shall reimburse the Investor and each such controlling
person,  promptly as such expenses are incurred and are due and payable, for any
reasonable  legal  fees  or  other  reasonable  expenses  incurred  by  them  in
connection  with  investigating  or  defending  any  such Claim. Notwithstanding
anything  to  the  contrary  contained  herein,  the  indemnification  agreement
contained in this Section 6(a): (I) shall not apply to a Claim arising out of or
based  upon  a  Violation  which  is  due  to  the inclusion in the Registration
Statement  of the information furnished to the Company by any Indemnified Person
expressly  for  use  in  connection  with  the  preparation  of the Registration
Statement or any such amendment thereof or supplement thereto; (II) shall not be
available  to the extent such Claim is based on (A) a failure of the Investor to
deliver or to cause to be delivered the prospectus made available by the Company
or  (B)  the  Indemnified  Person's use of an incorrect prospectus despite being
promptly  advised in advance by the Company in writing not to use such incorrect
prospectus;  (III)  any  claims  based  on the manner of sale of the Registrable
Securities  by the Investor or of the Investor's failure to register as a dealer
under  applicable  securities  laws; (IV) any omission of the Investor to notify
the  Company  of  any  material  fact  that should be stated in the Registration
Statement  or prospectus relating to the Investor or the manner of sale; and (V)
any  amounts  paid  in  settlement  of  any Claim if such settlement is effected
without  the  prior  written  consent of the Company, which consent shall not be
unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless  of  any investigation made by or on behalf of the Indemnified Person
and  shall  survive  the  resale  of  the Registrable Securities by the Investor
pursuant  to  the  Registration  Statement.

          (B)  In  connection  with any Registration Statement in which Investor
is  participating,  Investor  agrees  to  severally  and jointly indemnify, hold
harmless  and defend, to the  same extent and in the same manner as is set forth
in  Section  6(a), the Company, each of its  directors, each of its officers who
signs  the Registration Statement, each Person, if any, who controls the Company
within  the  meaning  of  the  1933 Act or the 1934 Act and the Company's agents
(collectively  and together with an Indemnified Person, an "Indemnified Party"),
                                                            -----------------
against  any  Claim  or  Indemnified  Damages  to  which  any of them may become
subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or
Indemnified  Damages  arise out of or are based upon any Violation, in each case
to  the  extent,  and  only  to  the  extent,  that such Violation is due to the
inclusion  in the Registration Statement of the written information furnished to
the  Company  by  such  Investor  expressly  for  use  in  connection  with such
Registration  Statement;  and,  subject  to  Section  6(c),  such  Investor will
reimburse  any legal or other expenses reasonably incurred by them in connection
with  investigating  or  defending  any  such Claim; provided, however, that the
indemnity  agreement  contained  in  this  Section  6(b)  and the agreement with
respect  to  contribution contained in Section 7 shall not apply to amounts paid
in  settlement  of  any  Claim  if such settlement is effected without the prior
written  consent  of  such  Investor,  which  consent  shall not be unreasonably
withheld;  provided,  further,  however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does
not  exceed  the  net  proceeds  to  such  Investor  as  a result of the sale of
Registrable  Securities pursuant to such Registration Statement.  Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on  behalf  of  such  Indemnified  Party  and  shall  survive  the resale of the
Registrable  Securities  by the Investor pursuant to the Registration Statement.
Notwithstanding  anything  to the contrary contained herein, the indemnification
agreement  contained  in  this  Section  6(b)  with  respect  to any preliminary
prospectus shall not inure to the benefit of any Indemnified Party if the untrue
statement  or  omission of material fact contained in the preliminary prospectus
were  corrected  on  a  timely  basis  in  the  prospectus,  as  then amended or
supplemented.  This  indemnification  provision  shall  apply separately to each
Investor  and  liability  hereunder  shall  not  be  joint  and  several.

     (C)  Promptly  after  receipt by an Indemnified Person or Indemnified Party
under  this  Section 6 of notice of the commencement of any action or proceeding
(including  any  governmental  action  or  proceeding)  involving  a Claim, such
Indemnified  Person or Indemnified Party shall, if a Claim in respect thereof is
to  be  made against any indemnifying party under this Section 6, deliver to the
indemnifying  party  a  written  notice  of  the  commencement  thereof, and the
indemnifying  party  shall  have the right to participate in, and, to the extent
the  indemnifying  party  so  desires, jointly with any other indemnifying party
similarly  noticed,  to  assume  control  of  the  defense  thereof with counsel
mutually  satisfactory  to  the indemnifying party and the Indemnified Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person  or Indemnified Party shall have the right to retain its own
counsel  with the fees and expenses to be paid by the indemnifying party, if, in
the  reasonable  opinion  of  counsel  retained  by  the  Indemnified  Person or
Indemnified  Party,  the  representation by counsel of the Indemnified Person or
Indemnified  Party  and  the  indemnifying  party  would be inappropriate due to
actual  or  potential  differing  interests  between  such Indemnified Person or
Indemnified  Party  and  any  other  party  represented  by such counsel in such
proceeding.  The  indemnifying  party  shall pay for only one (1) separate legal
counsel  for  the Indemnified Persons or the Indemnified Parties, as applicable,
and such counsel shall be selected by the Investor, if the Investor are entitled
to  indemnification  hereunder,  or  the  Company, if the Company is entitled to
indemnification  hereunder, as applicable.  The Indemnified Party or Indemnified
Person  shall cooperate fully with the indemnifying party in connection with any
negotiation or defense of any such action or Claim by the indemnifying party and
shall  furnish to the indemnifying party all information reasonably available to
the  Indemnified  Party  or  Indemnified  Person which relates to such action or
Claim.  The  indemnifying  party shall keep the Indemnified Party or Indemnified
Person  fully  appraised  at  all  times  as to the status of the defense or any
settlement  negotiations  with  respect thereto.  No indemnifying party shall be
liable  for  any  settlement of any action, claim or proceeding effected without
its  written  consent,  provided, however, that the indemnifying party shall not
unreasonably  withhold,  delay  or  condition its consent. No indemnifying party
shall,  without  the  consent  of  the  Indemnified Party or Indemnified Person,
consent  to  entry  of  any  judgment  or  enter  into  any  settlement or other
compromise which does not include as an unconditional term thereof the giving by
the  claimant  or plaintiff to such Indemnified Party or Indemnified Person of a
release  from all liability in respect to such Claim.  Following indemnification
as  provided  for  hereunder,  the indemnifying party shall be surrogated to all
rights  of the Indemnified Party or Indemnified Person with respect to all third
parties,  firms or corporations relating to the matter for which indemnification
has  been made.  The failure to deliver written notice to the indemnifying party
within  a  reasonable  time  of  the  commencement  of any such action shall not
relieve  such  indemnifying  party of any liability to the Indemnified Person or
Indemnified  Party  under  this  Section  6,  except  to  the  extent  that  the
indemnifying  party  is  prejudiced  in  its  ability  to  defend  such  action.

     (D)  The  indemnity agreements contained herein shall be in addition to (I)
any  cause  of  action  or similar right of the Indemnified Party or Indemnified
Person  against  the  indemnifying party or others, and (II) any liabilities the
indemnifying  party  may  be  subject  to  pursuant  to  the  law.

SECTION  7.  CONTRIBUTION.
             ------------

     To the extent any indemnification by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6  to  the  fullest  extent  permitted  by  law; provided, however, that: (I) no
contribution  shall  be  made under circumstances where the maker would not have
been  liable  for indemnification under the fault standards set forth in Section
6;  (II)  no  seller  of  Registrable  Securities  guilty  of  fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled  to  contribution from any seller of Registrable Securities who was not
guilty  of fraudulent misrepresentation; and (III) contribution by any seller of
Registrable  Securities shall be limited in amount to the net amount of proceeds
received  by  such  seller  from  the  sale  of  such  Registrable  Securities.

     SECTION  8.     REPORTS  UNDER  THE  1934  ACT.
                     ------------------------------

     With  a  view  to making available to the Investor the benefits of Rule 144
promulgated  under  the  1933 Act or any other similar rule or regulation of the
SEC  that  may at any time permit the Investor to sell securities of the Company
to  the  public  without  registration  ("Rule 144"), provided that the Investor
                                          --------
holds any Registrable Securities are eligible for resale under Rule 144 (k), the
Company  agrees  to:

     (A)     make  and  keep  public  information  available, as those terms are
understood  and  defined  in  Rule  144;

     (B)     file  with  the  SEC  in  a  timely  manner  all  reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the  Company  remains  subject  to  such  requirements (it being understood that
nothing  herein  shall limit the Company's obligations under Section 5(c) of the
Investment  Agreement)  and  the  filing  of such reports and other documents is
required  for  the  applicable  provisions  of  Rule  144;  and

     (C)     furnish  to  the  Investor,  promptly  upon  request, (I) a written
statement by the Company that it has complied with the reporting requirements of
Rule  144,  the 1933 Act and the 1934 Act, (II) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed
by  the Company, and (III) such other information as may be reasonably requested
to  permit  the  Investor  to  sell such securities pursuant to Rule 144 without
registration.

SECTION  9.  NO  ASSIGNMENT  OF  REGISTRATION  RIGHTS.
             ----------------------------------------

     The  rights  under  this  Agreement  shall  not  be  assignable.

SECTION  10.  AMENDMENT  OF  REGISTRATION  RIGHTS.
              -----------------------------------

     Provisions  of  this Agreement may be amended only with the written consent
of  the  Company  and  Investor.

SECTION  11.  MISCELLANEOUS.
              -------------

     (A)  Any  notices or other communications required or permitted to be given
under the terms of this Agreement that must be in writing will be deemed to have
been  delivered  (I) upon receipt, when delivered personally; (II) upon receipt,
when  sent by facsimile (provided a confirmation of transmission is mechanically
or electronically generated and kept on file by the sending party); or (III) one
(1)  day  after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same.  The addresses
and  facsimile  numbers  for  such  communications  shall  be:

If  to  the  Company:

     Hyperdynamics  Corporation
     9700  Bissonet
     --------------
Suite  1700
-----------
Houston  TX  77036
------------------
Telephone:  713-353-9400
Facsimile:  713-353-9421

If  to  the  Investor:

     Dutchess  Private  Equities  Fund,  II,  LP
     312  Stuart  St,  Third  Floor
     Boston,  MA  02116
     Telephone:     617-960-3570
     Facsimile:     617-960-3772

     Each  party  shall provide five (5) business days prior notice to the other
party  of  any  change  in  address,  phone  number  or  facsimile  number.

     (B)  Failure  of  any  party  to  exercise  any  right or remedy under this
Agreement  or otherwise, or delay by a party in exercising such right or remedy,
shall  not  operate  as  a  waiver  thereof.

     (C)    The  laws  of  the  Commonwealth  of  Massachusetts shall govern all
issues  arising  from  or  related  to  this  Agreement  without  regard  to the
principles  of  conflict  of  laws. Each party hereby irrevocably submits to the
exclusive  jurisdiction  of  the state and federal courts sitting in the City of
Boston,  County  of Suffolk, for the adjudication of any dispute hereunder or in
connection  herewith  or  with  any transaction contemplated hereby or discussed
herein,  and  hereby  irrevocably  waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that  it  is  not personally subject to the
jurisdiction  of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each  party hereby irrevocably waives personal service of process and
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service  of process and notice thereof. Nothing contained herein shall be deemed
to  limit  in any way any right to serve process in any manner permitted by law.
If  any  provision  of  this  Agreement shall be invalid or unenforceable in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity  or  enforceability  of  any  provision  of this Agreement in any other
jurisdiction.

     (D)  This  Agreement  and  the  Transaction Documents constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
thereof.  There are no restrictions, promises, warranties or undertakings, other
than  those  set  forth  or  referred  to  herein  and  therein.

     (E)  This  Agreement  and  the  Transaction  Documents  supersede all prior
agreements  and  understandings  among  the  parties  hereto with respect to the
subject  matter  hereof  and  thereof.

     (F)  The  headings  in this Agreement are for convenience of reference only
and  shall  not limit or otherwise affect the meaning hereof.  Whenever required
by  the  context  of  this  Agreement, the singular shall include the plural and
masculine  shall include the feminine.  This Agreement shall not be construed as
if  it had been prepared by one of the parties, but rather as if all the parties
had  prepared  the  same.

     (G)  This  Agreement may be executed in two or more identical counterparts,
each  of which shall be deemed an original but all of which shall constitute one
and  the  same  agreement.  This  Agreement,  once  executed  by a party, may be
delivered  to the other party hereto by facsimile transmission of a copy of this
Agreement  bearing  the  signature  of  the  party so delivering this Agreement.

     (H)  Each  party  shall  do and perform, or cause to be done and performed,
all  such  further acts and things, and shall execute and deliver all such other
agreements,  certificates,  instruments  and  documents,  as the other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of  this Agreement and the consummation of the transactions contemplated hereby.

SECTION  12.  DISPUTES  SUBJECT  TO  ARBITRATION  GOVERNED  BY MASSACHUSETTS LAW
              ------------------------------------------------------------------

     All  disputes  arising  under  this  agreement  shall  be  governed  by and
interpreted  in  accordance  with the laws of the Commonwealth of Massachusetts,
without regard to principles of conflict of laws.  The parties to this agreement
will  submit all disputes arising under this agreement to arbitration in Boston,
Massachusetts before a single arbitrator of the American Arbitration Association
("AAA").  The  arbitrator  shall  be selected by application of the rules of the
AAA, or by mutual agreement of the parties, except that such arbitrator shall be
an  attorney  admitted to practice law in the Commonwealth of Massachusetts.  No
party  to  this agreement will challenge the jurisdiction or venue provisions as
provided  in  this  section.

SECTION  13.  WAIVER  OF  JURY  TRIAL.
             -------------------------

AS  A  MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE
PARTIES  HERETO  HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
RELATED  IN  ANY  WAY  TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS
ASSOCIATED  WITH  THIS  TRANSACTION.

                                      * * *

                                 SIGNATURE PAGE OF REGISTRATION RIGHTS AGREEMENT

Your  signature  on  this Signature Page evidences your agreement to be bound by
the terms and conditions of the Investment Agreement and the Registration Rights
Agreement  as  of  the  date  first  written  above.
The  undersigned signatory hereby certifies that he has read and understands the
Registration  Rights  Agreement, and the representations made by the undersigned
in  this  Registration  Rights Agreement are true and accurate, and agrees to be
bound  by  its  terms.

     DUTCHESS  PRIVATE  EQUITIES  FUND,  II,  L.P.,
     BY  ITS  GENERAL  PARTNER,
DUTCHESS  CAPITAL  MANAGEMENT,  LLC

     By:/s/Douglas Leighton
        -------------------
     Douglas  H.  Leighton,  Managing  Member

HYPERDYNAMICS  CORPORATION

By:/s/Kent Watts
   --------------
   Kent  Watts,  Chief  Executive  OfficerIRREVOCABLE TRANSFER AGENT INSTRUCTIONS
August  12,  2005
Fidelity  Transfer
Ms.  Heidi  Sadowski
1800  South  West  Temple  #301
Salt  Lake  City,  UT  84115

(801)  484-7222  x20
Fax  (801)  466-4122  or  801.484.0294
RE:  HYPERDYNAMICS  CORP.
Ladies  and  Gentlemen:
Reference  is  made  to  that  certain Subscription Agreement (the "Subscription
Agreement") of even date herewith by and between Hyperdynamics Corp., a Delaware
corporation  (the  "Company"),  and  Dutchess Private Equities Fund, II, LP (the
"Holder").  Pursuant  to  the  Subscription Agreement, the Company shall sell to
the  Holder,  an  the  Holder  shall  purchase  from  the  Company,  convertible
debentures (collectively, the "Debentures") in the aggregate principal amount of
One  Million  Five Hundred Thousand Dollars ($1,500,000), plus accrued interest,
which  are  convertible  into  shares  of  the Company's common stock, par value
$0.001  per  share (the "Common Stock"), at the Holder's discretion. The Company
has  also  issued  to  the  Holder a warrant to purchase up to 500,000 shares of
Common  Stock, at the Holder's discretion ("Warrant"). These instructions relate
to  the  following  stock  or  proposed  stock  issuances  or  transfers:
1.  The  Company  has agreed to issue to the Holder up to: that number of shares
included  in  the  registration  statement  for the Debentures based on the Face
Amount divided by the Fixed Conversion Price, of the Company's Common Stock upon
conversion  of  the  Debentures  ("Conversion Shares") plus the shares of Common
Stock  to  be  issued  to  the  Holder  upon  conversion of accrued interest and
liquidated  damages  into  Common  Stock  (the  "Interest  Shares").
2.  Up  to  500,000 shares of Common Stock to be issued upon the exercise of the
Warrant  ("Warrant  Shares").
This  letter  shall  serve  as  our  irrevocable  authorization and direction to
Fidelity  Transfer  (the  "Transfer  Agent")  to  do  the  following:
1.  Conversion  Shares.
a.  Instructions  Applicable  to  Transfer Agent. With respect to the Conversion
Shares  and  the  Interest Shares, the Transfer Agent shall issue the Conversion
Shares  and the Interest Shares to the Holder from time to time upon delivery to
the  Transfer  Agent of a properly completed and duly executed Conversion Notice
(the  "Conversion  Notice"), in the form attached hereto as Exhibit 1, delivered
on  behalf  of  the Company to the Transfer Agent.  Upon receipt of a Conversion
Notice,  the  Transfer  Agent  shall within three (3) Trading Days thereafter to
issue  and  surrender  to  a national recognized overnight carrier for overnight
delivery  to  the  address as specified in the Conversion Notice, a certificate,
registered  in  the  name  of  the  Holder or their designees, for the number of
shares of Common Stock to which the Holder shall be entitled as set forth in the
Conversion Notice  For purposes hereof "Trading Day" shall mean any day on which
the  US Stock Markets are open for customary trading.   The Transfer agent shall
promptly  give  the  Company  notice  of  all  new security issuances hereunder.
b.  The  Company  hereby  confirms  to  the  Transfer  Agent and the Holder that
certificates  representing  the  Conversion  Shares  shall  not  bear any legend
restricting transfer and should not be subject to any stop-transfer restrictions
and  shall  otherwise  be  freely  transferable  on the books and records of the
Company;  provided  that  counsel  to  the  Company  delivers  (i) the Notice of
Effectiveness  set  forth  in  Exhibit  2 attached hereto and (ii) an opinion of
counsel  in  the  form  set  forth  in Exhibit 3 attached hereto and (iii) board
resolutions  authorizing  the  issuance  of  such  shares until such time as the
Maturity Date of the Debentures, as set forth in Exhibit 4 or (iv) the Share are
deemed  sellable  under an exemption from the Securities Act of 1993, as amended
(the  "Act") when accompanied with the proper paperwork for that exemption.  The
Shares  shall be issued free-trading directly from Fidelity Transfer, as no sale
is  necessary  for  the  Shares to be issued without legend free trading and all
requirements  for  delivery of a Prospectus pursuant to the Shares have been met
and  satisfied.   If  the  Conversion  Shares  and  the  Interest Shares are not
registered  for  sale  under the Act , as amended, then the certificates for the
Conversion  Shares  and  Interest  Shares  shall  bear  the  following  legend
substantially  as  follows:
"THE  SECURITIES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES  HAVE  BEEN  ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
SOLD,  TRANSFERRED  OR  ASSIGNED  IN  THE  ABSENCE  OF AN EFFECTIVE REGISTRATION
STATEMENT  FOR  THE  SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM REASONABLY
ACCEPTABLE  TO  THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
APPLICABLE  STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT."
c.  In  the  event  that  counsel  to  the Company fails or refuses to render an
opinion  as  required  to  issue  the  Conversion  Shares in accordance with the
preceding paragraph (either with or without restrictive legends, as applicable),
then  the  Company irrevocably and expressly authorizes counsel to the Holder to
render  such opinion. The Transfer Agent shall accept and be entitled to rely on
such  opinion  for  the  purposes  of issuing the Conversion Shares and Interest
Shares.  Any  costs incurred by Holder for such opinion letter shall be added to
the  Face  Amount  of  the  Debenture.
2.  Warrant  Shares.
a.  Instructions  Applicable  to  Transfer  Agent.  With  respect to the Warrant
Shares,  the  Transfer  Agent  shall issue the Warrant Shares to the Holder from
time  to  time  upon  delivery to the Transfer Agent of a properly completed and
duly  executed  notice  of  the  Holder's  election to exercise the Warrant (the
"Exercise  Notice"),  in  the  form attached hereto as Exhibit 5, specifying the
number of Warrant Shares to be issued, delivered on behalf of the Company to the
Transfer  Agent.  Upon  receipt  of an Exercise Notice, the Transfer Agent shall
within  three (3) Trading Days thereafter to issue and surrender to a nationally
recognized  carrier  for  overnight  delivery to the address as specified in the
Exercise  Notice,  a  certificate,  registered  in the name of the Holder or its
designees, for the number of shares of Common Stock to which the Holder shall be
entitled as set forth in the Exercise Notice . For purposes hereof "Trading Day"
shall  mean any day on which the US Markets are open for customary trading.  The
Transfer  agent  shall  promptly  give  the  Company notice of all new issuances
hereunder.
The  Company  hereby confirms to the Transfer Agent and Holder that certificates
representing  the  Warrant Shares shall not bear any legend restricting transfer
and  should not be subject to any stop-transfer restrictions and shall otherwise
be  freely  transferable  on the books and records of the Company; provided that
counsel  to  the  Company  delivers (i) the Notice of Effectiveness set forth in
Exhibit  2  attached  hereto  and
(ii)  an  opinion of counsel in the form set forth in Exhibit 3 attached hereto,
and  that if the Warrant Shares are not registered for sale under the Securities
Act of 1933, as amended, then the certificates for the Warrant Shares shall bear
the  restrictive  legend  referenced  above  in  Section  1b.
b.  In  the  event  that  counsel  to  the Company fails or refuses to render an
opinion as required to issue the Warrant Shares in accordance with the preceding
paragraph  (either with or without restrictive legends, as applicable), then the
Company  irrevocably  and  expressly  authorizes counsel to the Holder to render
such  opinion.  The  Transfer Agent shall accept and be entitled to rely on such
opinion  for the purposes of issuing the Warrant Shares.   Any costs incurred by
Holder  for  such  opinion  letter  shall  be  added  to  the Face Amount of the
Debenture.
3.  All  Shares.
a.  The  Transfer  Agent shall reserve for issuance to the Holder the Conversion
Shares  and the Warrant Shares. All such shares shall remain in reserve with the
Transfer  Agent  until  the Holder provides the Transfer Agent instructions that
the shares or any part of them shall be taken out of reserve and shall no longer
be  subject  to  the  terms  of  these  instructions.
b.  The  Transfer  Agent  shall rely exclusively on the Conversion Notice or the
Exercise  Notice  and  shall have no liability for relying on such instructions.
Any Conversion Notice or Exercise Notice delivered hereunder shall constitute an
irrevocable  instruction to the Transfer Agent to process such notice or notices
in  accordance with the terms thereof. Such notice or notices may be transmitted
to the Transfer Agent by facsimile, email or any commercially reasonable method.
c.  The  Company  hereby  confirms  to the Transfer Agent and the Holder that no
instructions  other  than as contemplated herein will be given to Transfer Agent
by the Company with respect to the matters referenced herein. The Company hereby
authorizes  the  Transfer  Agent,  and the Transfer Agent shall be obligated, to
disregard  any  contrary  instructions  received by or on behalf of the Company.
The  Company  hereby  agrees that it shall not replace the Transfer Agent as the
Company's  transfer  agent  without  the  prior  written  consent of the Holder.
The  Company  does  hereby agree to keep up-to-date with all payments due to the
Transfer  Agent during this period.  In the event, the Company is not current in
all  its  outstanding  payment obligations for services provided by the Transfer
Agent,  and  the  Transfer Agent refuses issuance of Common Shares to the Holder
due  to  the unpaid balance, the Company does hereby authorize Holder to pay any
amounts  due to Transfer Agent directly from the Closing of a Put (as defined in
the  Investment  Agreement).  The  Transfer  Agent hereby acknowledges that upon
receipt  of  confirmation  of  a  Put  Settlement which includes instructions of
payment  toward  the delinquent account, the Transfer Agent will issue Shares in
accordance  with  Section  1(a)  and  2(a).
The  Transfer Agent shall provide ten days' advance written notice to the Holder
before  any  attempt  by  the Transfer Agent to cease to provide any issuance or
transfer  agent  services  as  contemplated  by  this  agreement  shall  become
effective.  Upon  notice that the Transfer Agent is resigning, the Company shall
have  the  obligation to retain a new transfer agent that will agree to be bound
by  the  terms  of  this  agreement.
The Company and the Transfer Agent hereby acknowledge and confirm that complying
with  the  terms  of this Agreement does not and shall not prohibit the Transfer
Agent  from  satisfying any and all fiduciary responsibilities and duties it may
owe  to  the  Company.
The Company and the Transfer Agent acknowledge that the Holder is relying on the
representations  and  covenants  made  by  the  Company  and  the Transfer Agent
hereunder  and  are  a  material inducement to the Holder purchasing convertible
debentures under the Subscription Agreement and Debenture Agreement. The Company
and the Transfer Agent further acknowledge that without such representations and
covenants of the Company and the Transfer Agent made hereunder, the Holder would
not  purchase  the  Debentures.
Each  party  hereto  specifically acknowledges and agrees that in the event of a
breach  or  threatened  breach  by  a  party hereto of any provision hereof, the
Holder  will  be  irreparably  damaged  and  that  damages  at  law  would be an
inadequate  remedy  if  these  Irrevocable  Transfer Agent Instructions were not
specifically  enforced. Therefore, in the event of a breach or threatened breach
by  a  party hereto, including, without limitation, the attempted termination of
the  agency  relationship  created  by  this  instrument,  the  Holder  shall be
entitled,  in  addition  to  all  other  rights  or  remedies,  to an injunction
restraining  such breach, without being required to show any actual damage or to
post  any bond or other security, and/or to a decree for specific performance of
the  provisions  of  these  Irrevocable  Transfer  Agent  Instructions.
                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN  WITNESS  WHEREOF,  the  parties  have caused this letter agreement regarding
Irrevocable  Transfer Agent Instructions to be duly executed and delivered as of
the  date  first  written  above.  Duly  authorized  to  sign  on  behalf  of:
COMPANY:
HYPERDYNAMICS  CORP.

/s/Kent Watts
-------------
KENT  WATTS,  CEO

FIDELITY  TRANSFER

/s/Heidi Sadowski
-----------------
Ms.  Heidi  Sadowski

EXHIBIT  1

Date:

Pursuant  to  terms and conditions outlined in the Form of Debenture, we are now
submitting  you  a  Conversion  Notice  for  Debenture  Number  ____________.

Please  have  Dutchess'  common shares listed on following page delivered via an
nationally  recognized  overnight carrier (with a tracking number sent to me) to
within  three  days  of  the  Conversion  Date:

[delivery  address}

NOTICE  OF  CONVERSION
----------------------

(To  be  Executed  by  the  Registered  Owner  in  order  to  Convert Debenture)

     The  undersigned  hereby  irrevocably  elects,  as  of ________________, to
convert  $________________  of  its convertible debenture (the "Debenture") into
Common  Stock  of  Virtra  Systems,  Inc.  (the  "Company")  according  to  the
conditions  set  forth  in  the  Debenture  issued  by  the  Company.

Date  of  Conversion________________________________________________

Applicable  Conversion  Price________________________________________

Number  of  Debentures  Issuable  upon  this  Conversion_______________________

Name(Print)___________Dutchess  Private  Equities Fund, II, LP _________________
                      ----------------------------------------

Address______________312  Stuart  St,  3rd  Floor____________________________
                     ----------------------------

Phone_____617-960-3570_____________  Fax________617-249-0947___________
          -------------------------             ------------

                    By: /s/Douglas Leighton
                        -------------------
                        Douglas  Leighton

EXHIBIT  2  FORM  OF  NOTICE  OF  EFFECTIVENESS  OF  REGISTRATION  STATEMENT

                                             Date:  __________
[TRANSFER  AGENT]

     Re:     Hyperdynamics  Corp
             --------------------

Ladies  and  Gentlemen:

     We  are  counsel  to  Hyperdynamics  Corp.,  a  Delaware  corporation  (the
                           ---------------------
"Company"),  and  have  represented  the Company in connection with that certain
Subscription Agreement (the "Subscription  Agreement") entered into by and among
the  Company  and _________________________ (the "Holder") pursuant to which the
Company  has agreed to issue to the Holder shares of the Company's common stock,
$.0001  par value per share (the "Common Stock") on the terms and conditions set
forth  in  the  Subscription Agreement.  Pursuant to the Subscription Agreement,
the  Company  also  has  entered  into  a Registration Rights Agreement with the
Holder  (the  "Registration  Rights  Agreement")  pursuant  to which the Company
agreed,  among  other things, to register the Registrable Securities (as defined
in  the  Registration  Rights  Agreement),  including the shares of Common Stock
issued  or issuable under the Subscription Agreement under the Securities Act of
1933, as amended (the "1933 Act").  In connection with the Company's obligations
under  the Registration Rights Agreement, on ____________ ___, 2005, the Company
filed  a  Registration  Statement  on  Form  S- ___ (File No. 333-________) (the
"Registration  Statement")  with  the  Securities  and  Exchange Commission (the
"SEC")  relating  to  the  Registrable  Securities  which  names the Holder as a
selling  shareholder  thereunder.

     In connection with the foregoing, we advise you that [a member of the SEC's
                                                          =
staff  has  advised  us by telephone that the SEC has entered an order declaring
the  Registration  Statement  effective]  [the Registration Statement has become
                                       =========================================
effective] under the 1933 Act at [enter the time of effectiveness] on [enter the
   =======                        -------------------------------      ---------
date  of  effectiveness]  and  to  the  best  of our knowledge, after telephonic
-----------------------
inquiry  of  a  member  of  the  SEC's  staff,  no  stop  order  suspending  its
------
effectiveness  has  been  issued and no proceedings for that purpose are pending
------
before,  or  threatened by, the SEC and the Registrable Securities are available
--
for  resale  under  the  1933  Act  pursuant  to  the  Registration  Statement.

                                   Very  truly  yours,

                                   [Company  Counsel]

     By:____________________

cc:     [Holder]
EXHIBIT  3
TO  TRANSFER  AGENT  INSTRUCTIONS
FORM  OF  OPINION
________________  2005
VIA  FACSIMILE  AND  REGULAR  MAIL
[Transfer  Agent]
Attention:  George  Johnson
RE:  HYPERDYNAMICS  CORP
Ladies  and  Gentlemen:
We  have  acted  as  special counsel to Hyperdynamics Corp.. (the "Company"), in
connection  with  the  registration  of  ___________shares (the "Shares") of its
common  stock  with  the Securities and Exchange Commission (the "SEC"). We have
not  acted  as  your  counsel. This opinion is given at the request and with the
consent  of  the  Company.
In  rendering  this  opinion  we  have  relied  on the accuracy of the Company's
Registration  Statement on Form SB-2, as amended (the "Registration Statement"),
filed  by  the  Company  with  the  SEC  on _________ ___, 2005 with file number
333-____________.  The  Company  filed  the  Registration Statement on behalf of
certain  selling  stockholder  (the "Selling Stockholder"). This opinion relates
solely  to  the  Selling  Shareholder listed on Exhibit "A" hereto and number of
Shares  set forth opposite such Selling Stockholder' names. The SEC declared the
Registration  Statement  effective  on  __________  ___,  2005.
We  understand  that  the  Selling  Stockholder acquired the Shares in a private
offering  exempt from registration under the Securities Act of 1933, as amended.
Information  regarding  the  Shares  to  be  sold  by the Selling Shareholder is
contained under the heading "Selling Stockholder" in the Registration Statement,
which  information  is  incorporated  herein by reference. This opinion does not
relate  to  the  issuance of the Shares to the Selling Stockholder. The opinions
set  forth  herein  relate  solely  to  the  sale  or  transfer  by  the Selling
Stockholder pursuant to the Registration Statement under the Federal laws of the
United  States  of  America. We do not express any opinion concerning any law of
any  state  or  other  jurisdiction.
In  rendering  this  opinion  we  have relied upon the accuracy of the foregoing
statements.  Based on the foregoing, it is our opinion that the Shares have been
registered  with the Securities and Exchange Commission under the Securities Act
of  1933,  as  amended,  and  that  Fidelity Transfer may remove the restrictive
legends  contained  on  the  Shares.

This  opinion  relates  solely  to  the  number of Shares set forth opposite the
Selling  Stockholder  listed  on  Exhibit  "A"  hereto.

This  opinion  is furnished to Fidelity Tranfer, specifically in connection with
the  issuance  of  the  Shares, and solely for your information and benefit. The
Shares  shall be issued free-trading directly from Fidelity Transfer, as no sale
is  necessary  for  the  Shares to be issued without legend free trading and all
requirement  for  delivery  of a Prospectus pursuant to the Shares have been met
and  satisfied.  This  letter may not be relied upon by Fidelity Transfer in any
other  connection,  and  it may not be relied upon by any other person or entity
for  any  purpose  without  our  prior  written consent. This opinion may not be
assigned,  quoted  or  used  without our prior written consent. The opinions set
forth  herein are rendered as of the date hereof and we will not supplement this
opinion  with respect to changes in the law or factual matters subsequent to the
date  hereof.

Very  truly  yours,

____________________

     Exhibit 4 RESOLUTIONS OF THE BOARD OF DIRECTORS OF HYPERDYANMICS CORP.
                            EFFECTIVE AUGUST 12, 2005

The undersigned Directors of Hyperdynamics Corp., Inc. (the "Company") takes the
following  actions  by  consent  with  a  meeting.

IT  HAS  BEEN  RESOLVED:

The  officers  of  the  Company  are instructed to take all actions necessary to
execute,  deliver,  and  perform the steps required of the Company in connection
with  registration  of  shares  pursuant  to  the  Debenture  Agreement, Warrant
Agreement  and  Subscription Agreement of even date.  All shares have been fully
paid and should be issued without restrictive legend, or if the shares have been
not  registered  for sale under the Securities Act of 1933, as amended, then the
certificates  shall  be  marked  with  proper  legend.

FURTHER,  IT  HAS  BEEN  RESOLVED:

That each member of the Board jointly and individual hereby agree not to issue a
stop  transfer  order  on  any  of the shares defined herein, if the to Dutchess
Private  Equities  Fund,  II,  LP.  ("Dutchess")

FURTHER,  IT  HAS  BEEN  FURTHER  RESOLVED:

The  officers  do  hereby  consent  to  the  appointment  of Douglas Leighton of
Dutchess  Capital  Management, LLC to issue shares pursuant to the shares due to
the  Holder  as  outlined in the Irrevocable Transfer Agent Agreement solely for
the  benefit  of  Dutchess.

FURTHER,  IT  HAS  BEEN  RESOLVED:

That  the  board has given the requisite authority for the Company to enter into
the  Subscription  Agreement,  Warrant  Agreement, Security Agreement, Debenture
Agreement,  Debenture  Registration  Rights  Agreement,  Stock  Transfer  Agent
Agreement,  Investment  Agreement  and Equity Line Registration Rights Agreement
(collectively, the "Transaction Documents") with Dutchess Private Equities Fund,
II,  LP  ("Dutchess")  dated  August  12,  2005

FURTHER,  IT  HAS  BEEN  RESOLVED:

That  in  the  event  counsel  for  the  Company  is  unable to write an opinion
regarding  the  issuance  of Shares for any of the Transactions Documents, where
required,  that  the  Transfer  Agent  shall  accept the opinion of the Holder's
counsel.

FURTHER,  IT  HAS  BEEN  RESOLVED:

That  the board shall issue up to 500,000 shares of Common Stock pursuant to the
Warrant  Agreement  between  the  Company and Dutchess; and, up to the amount of
shares  registered  for  resale  in  the  SB-2  filed  for  Dutchess' underlying
Debentures.

This  resolution  is  signed by the Board, to be effective as of August 12, 2005

Date:     August 12,  2005

/s/Kent  Watts
---------------------------------
By:     Kent  Watts,  CEO  &  Chairman

/s/Albert  F.  Young
----------------------------------
By:  Albert  F.  Young    Director

/s/Harry  J.  Briers
----------------------------
Harry  J.  Briers   Director

/s/Harold  A.  Poling
---------------------
Harold  A.  Poling  Director

EXHIBIT  5

FORM  OF  ELECTION  TO  PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock  under  the  foregoing  Warrant)

To:  Hyperdynamics  Corp

     In  accordance  with  the  Warrant  enclosed  with this Form of Election to
Purchase,  the  undersigned hereby irrevocably elects to purchase  _____________
shares  of  Common  Stock  ("Common  Stock"),  $.001  par  value  per  share, of
Hyperdynamics  Corpand,  if  such Holder is not utilizing the cashless exercise
provisions  set  forth  in  this  Warrant,  encloses herewith $________ in cash,
certified  or  official bank check or checks, which sum represents the aggregate
Exercise  Price  (as  defined in the Warrant) for the number of shares of Common
Stock  to  which  this  Form  of Election to Purchase relates, together with any
applicable  taxes  payable  by  the  undersigned  pursuant  to  the  Warrant.

     The  undersigned  requests that certificates for the shares of Common Stock
issuable  upon  this  exercise  be  issued  in  the  name  of

                         PLEASE  INSERT  SOCIAL  SECURITY  OR
                         TAX  IDENTIFICATION  NUMBER

     (Please  print  name  and  address)

     If  the  number of shares of Common Stock issuable upon this exercise shall
not  be  all  of the shares of Common Stock which the undersigned is entitled to
purchase  in accordance with the enclosed Warrant, the undersigned requests that
a  New  Warrant (as defined in the Warrant) evidencing the right to purchase the
shares of Common Stock not issuable pursuant to the exercise evidenced hereby be
issued  in  the  name  of  and  delivered  to:

     (Please  print  name  and  address)

Dated:  _____________,  _____               Name  of  Holder:

     (Print)

     (By:)
     (Name:)
(Title:)

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