SOURCE: Black Dragon Resource Companies, Inc.

September 27, 2007 14:31 ET

Black Dragon Sets Record Straight on Michael Ellis Resignation

OIL CITY, LA--(Marketwire - September 27, 2007) - The Executive Committee of the Board of Directors of Black Dragon Resource Companies, Inc. (PINKSHEETS: BDGR) announced today corrections to the unauthorized release by Michael Ellis, former President, Treasurer and Director of the Company.

Through his associate, Mr. Joel Pensley, an attorney from Connecticut, Mr. Ellis caused a release to be issued which was erroneous as to facts and circumstances regarding his departure from the Presidency and Board of Black Dragon.

At no time, since his appointment to the Presidency by the Board, did Mr. Ellis come to Oil City to commence taking over the day-to-day operations of the Company.

Mr. Ellis was in fact paid the sum of $50,000 for purported services rendered to Black Dragon and to this date, has not forwarded to the Company any or all of the geological and geophysical research work purported to have been done by himself on behalf of Black Dragon.

Mr. Ellis was hired, at the behest of the Board, to implement a program for increasing production on existing shallow wells and to develop an operational plan which would facilitate the evaluation of reserves at depth to further develop and produces reserves which the Company owns.

Mr. Ellis indicated that interim funding would be forthcoming, pending the development of a drilling program. To this date, no interim funding has materialized nor has a comprehensive drilling program been developed.

Mr. Ellis further insisted that all present board members submit their resignations to allow for his associates to be appointed to the Board, issuing 100 Million shares of New Stock as compensation for services to his new Board.

Additionally, Mr. Ellis indicated that he would dispose of all of the leases located in Louisiana, regardless of the outcome, to provide funds for drilling exploratory wells in other regions of the country.

None of his intentions or plans were disclosed to the Board prior to his appointment as President of Black Dragon. These intentions were clearly not in the best interest of the Company and its shareholders.

At a special meeting of the Board of Directors on September 24, 2007, Mr. Ellis, though notified, elected not to participate. The Board discussed terminating Mr. Ellis for cause, but decided to offer Mr. Ellis the opportunity to resign, which apparently he did, without notifying the Company directly, but instead through an unauthorized release.

The Executive Committee expressed regret that Mr. Ellis had taken unilateral action without regard to the effect it might have on the Company and its stockholders.

Repeated attempts to reach Mr. Ellis by Corporate Counsel have been unsuccessful.

About Black Dragon:

Black Dragon Resource Companies, Inc. is an oil and gas exploration and production company currently focused on the acquisition of mature, producing and existing domestic oil and gas fields. This focus has eliminated exploration risk, reduced costs of completion, and provided rapid generation of income in a niche market where larger independent and major oil companies are not positioned to compete. Black Dragon intends to recomplete additional shallow producing wells and to expand its focus to include drilling of new wells some to deeper levels and to purchase additional leases.

Forward-Looking Statements:

Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although Black Dragon believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, oil and gas reserves and revenues to be derived therefrom, plans to drill additional oil and gas wells, acquisition of additional oil or gas leases, maintaining mineral lease rights, continued maintenance of the oil field and properties, price of oil and gas, marketing and sales of oil and gas produced, government regulation, future financial and operational results, competition, general economic conditions, and the ability to manage continued growth. In addition, the Company's ability to produce audited financial statements, its ability to accurately forecast its operating results, and its ability to achieve profitability or generate positive cash flow are uncertain. Black Dragon assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Readers are cautioned not to place undue reliance on these forward-looking statements.

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