SOURCE: Silver Dragon Resources Inc.

August 30, 2006 08:00 ET

Silver Dragon to Commence NI 43-101 Technical Report for Cerro las Minitas

DURANGO, MEXICO -- (MARKET WIRE) -- August 30, 2006 -- Silver Dragon Resources Inc. (OTCBB: SDRG), through its wholly owned subsidiary, Silver Dragon Mining De Mexico S.A. de C.V., is pleased to announce the commencement of a National Instrument 43-101 technical report and review of the Company's Cerro las Minitas Project in Durango, Mexico. The NI 43-101 report will be prepared by Vector Engineering, Inc. of Grass Valley, California. Silver Dragon retained Vector Engineering to carry out an independent technical study of Cerro las Minitas, in particular to confirm previous mineral resource estimates and to reclassify the resulting mineral resource estimate in accordance with NI 43-101 classification criteria.

The NI 43-101 report will follow the guidelines specified by the Canadian Council of Professional Geoscientists ("CCPG") and will include property description and location, history, geological setting, deposit types, mineralization, exploration, drilling, sampling method and approach, sample preparation, analyses and security, data verification, adjacent properties, mineral processing and metallurgical testing, mineral resource and mineral reserve estimates, as well as other relevant data and information. General tasks to be completed include: (i) a geologic examination of the mineral property; (ii) a compilation and review of all existing documents and data; (iii) preparation of a summary of the documents and data in accordance with NI 43-101 requirements; and (iv) preparation and submission of the NI 43-101 technical report.

"Our hiring of Vector Engineering represents another important step in the development of our world-class Cerro las Minitas silver project," commented Marc M. Hazout, President and Chief Executive Officer of Silver Dragon Resources Inc. "We have been working to expedite the development of this project and are excited to have an independent firm complete a National Instrument 43-101 technical report. We expect the report to be completed over the next 6 - 8 weeks."

About Vector Engineering

Vector Engineering, Inc. is one of the leading engineering and consulting firms in the world specializing in the application of civil engineering, hydrogeology, geology, and geotechnical engineering to solid and mine waste management, heap leach pad tailings disposal system design, landfill design and closure, construction quality assurance (CQA), and construction management. The company also provides water and wastewater consulting, environmental and planning services, and has an extensive geotechnical laboratory. Founded in California in 1986, Vector quickly expanded to serve clients worldwide. Today, Vector has a staff of over 250 engineers, scientists and planners involved in major projects throughout the United States, Latin America, Asia and Africa. With offices across the Americas and in Asia, and 20 years of experience, Vector is one of the most geographically-diverse companies in its class. For more information, please visit the Company's website at: www.vectoreng.com

About Cerro las Minitas

Cerro las Minitas is comprised of 16 concessions covering 1423 Hectares. It is located 68 kilometers northeast of the city of Durango, Mexico and comprises the Cerro las Minitas mining district, part of the prolific silver belt of the Sierra Madre Occidental. Silver Dragon Resources Inc. through its wholly owned Mexican Subsidiary Silver Dragon Mining de Mexico S.A. De C.V. acquired the exploration and mining rights to the property in March 2006.

About Silver Dragon

Silver Dragon Resources Inc. is a mining and metal company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly leveraged, out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing the Cerro las Minitas and the Erbahuo projects in Mexico and China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).

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 with the Securities and Exchange Commission.

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