Nirek Resources Inc.
FRANKFURT : 3N6

March 26, 2010 14:30 ET

Nirek Resources Inc. and Guardians of Gold Inc. Exchange Offer for 20% of Silver Dragon Resources Inc.

ONTARIO, CANADA--(Marketwire - March 26, 2010) - Both Nirek Resources Inc. ("NRI") (FRANKFURT:3N6)and Guardians of Gold Inc. ("GOG") have offered, upon certain conditions, an exchange offer for a maximum of 20% of the issued and outstanding unrestricted common shares of Silver Dragon Resources Inc. ("SDRG")(OTCBB:SDRG) at the exchange ratio of for each 100 shares of SDRG common stock, for:

  • fifty (50) shares of Grit International Inc. ("GII") (FRANKFURT:3GR1) common stock,
  • one (1) share of Millstream Mines Ltd. ("MLM")(TSX VENTURE:MLM)common stock,
  • one (1) Silver Certificate. Each silver certificate shall be issued by NRI and will be for ten (10) grams of silver, deliverable March 31, 2014
  • one (1) NRI Gold Warrant. Each gold warrant shall be issued by NRI and shall be exercisable on or before April 30, 2010. The exercise price for each gold warrant shall be $190.00 USD and will be for ten (10) grams of gold, deliverable March 31, 2014.

THIS OFFER IS BEING MADE SOLELY TO US SHAREHOLDERS. The Offer commenced on March 22, 2010 and be open for acceptance until 1:00 p.m., Toronto time, April 8, 2010, the "Expiry Time", unless the Offer is extended, withdrawn or terminated by the Offeror. The Offer is subject to certain conditions which are described in the Registration Statement, Form S-4, filed with the United States Securities and Exchange Commission ('SEC'). The number of Shares validly deposited pursuant to the terms of the Offer and not withdrawn plus the number of Shares deposited will result in the Offerors holding not less than 20% of the SDRG Shares on a fully diluted basis on the Expiry Time.

The exchange offer is a significant premium to SDRG's closing price of March 18, 2010.

About Nirek Resources Inc.
Nirek Resources Inc. ("Nirek") is a Canadian mining exploration company specializing in exploring for precious and base metals. The company is focused on acquiring and developing gold and precious metal properties with proven reserves through a series of joint ventures, mine and property acquisitions. For more information, please visit the Company's website at: www.nirekresources.com

About Guardians of Gold Inc.
Guardians of Gold Inc. ("Guardian") is a Canadian based mining company that is focused on exploring and extracting precious and base metals. The company is focused on acquiring precious metal properties with proven reserves through strategic joint ventures and property acquisitions. For more information, please visit the Company's website at: www.guardiansofgold.com

About Silver Dragon Resources Inc.
 
Silver Dragon Resources Inc. is a mining and metals company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. For more information, please visit the Company's website at: www.silverdragonresources.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings.

Outstanding Shares: 17,634,808

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