Value 1 applies when the demonstrative is used with an anaphoric value, e.g. mi laik da 'I like that' in a context where the speaker is referring to something such as a joke, that has already been uttered.
When used with a strictly demonstrative meaning, as when pointing to some entity in view of the interlocutors, there is a tendency to supplement da with de (distal demonstrative) as in the example da bai de paas ii egzam 'That boy passed his exam'. Da alone is possible in this context but the more complex comstruction is often preferred.