First you are going to position your dies like this in your Cuttlebug or other similar tool, on top of whatever paper you desire. I am using kraft paper.
Now run it through your machine.
And this is what you will end up with
I have cut a second piece with out the cut out to place behind my tag and highlight the cut out. If you were making an accent for a layout or card you would really only need to add a scrap of paper behind the cut out, But I am using this for another project that I will be sharing with you next Wednesday.