SOURCE: Drake Gold Resources, Inc.

January 24, 2007 16:00 ET

Drake Gold Dividend Issuance and the Jackpot Placer Permit Process

SCOTTSDALE, AZ -- (MARKET WIRE) -- January 24, 2007 -- Drake Gold Resources, Inc. (PINKSHEETS: DKGR) would like to make known the present state of affairs in regard to the recent announcement of its subsidiary dividend issuance. After the record date was established it became evident that shares held in escrow and those due for cancellation would dilute the dividend for the average shareholder. Upon further review of the current share structure and plans to cancel shares, Drake is rescinding the originally announced record date of January 3rd, 2007 to be replaced by an updated record date to be announced. Drake anticipates this change will allow more dividend shares to be issued to the common shareholder.

With regard to the Jackpot Placer project, it has become apparent to management that there exists a need to have a more measured expectation of the BLM permit filing and approval process. New standards and additional approval steps have been brought to light as staff changes occur at the BLM office. These changes are also affecting many other companies in the area. Therefore, Drake Gold Resources, Inc. has hired a local area professional geologist to work closely with the BLM, and obtain a clear understanding of all paperwork and filings necessary to acquire a permit for placer operations on the Jackpot property. In addition, this professional will fill out and submit these filings as well as monitor its approval status on a regular basis.

The professional geologist met with the Bureau of Land Management on January 17th to discuss in detail all necessary steps for obtaining the permits. This meeting has yielded the necessary information to enable Drake Gold to obtain approval without further delay. At this time Drake Gold is doing all it can to complete this process but will wait to release timeframes until it is closer to completion.

In this regard, interim CEO Clayton Smith stated that, "Though this temporary delay is very frustrating for management as well as shareholders, we value the BLM's desire to protect natural resources and ensure the well being of the environment. Bringing in a local geologist will grant us the ability to comply with all guidelines and expedite mining operations for the Jackpot Placer Project. We need to keep in mind that making sure we are in compliance insulates us from liabilities down the road."

While we continue the transition to becoming a precious metal producer, important updates on permitting, acquisitions, the OTCBB listing process and further developments will be posted at WWW.DRAKEGOLD.COM. Current and future shareholders are encouraged to submit comments and questions for review and public replies released via the CEO Corner and its eNewsletter, both available on the site.


The local geologist has over 24 years of experience in the geological sciences, waste management, site characterization, property assessments, design and permitting of remediation systems, soil and groundwater remediation and mining. He has been responsible for managing a professional staff to ensure regulatory compliance, quality assurance and maintenance of project schedule and costs. His project experience includes extensive work in soils and groundwater investigations, site mitigation modeling, site remediation selection and design, and site closure. His registrations include: Professional/Registered Geologist (Arizona and California), Certified Remediation Specialist (Arizona), Certified Professional Geologist (AIPG), Registered Environmental Assessor (California), Environmental Response Manager (EPA Certification).


Drake Gold Resources, Inc. (PINKSHEETS: DKGR) is an early-stage mining and energy company that focuses on the exploration and production of precious metals and energy, such as petroleum and coal. Drake Gold has acquired the rights to the Jackpot Placer Project (JPP) in a southwestern section of Arizona. Estimated reserves on the JPP are 205,000 oz. Operations to recover gold are planned as soon as possible.

DKGR intends to be a diversified company by operating in the natural resource, petroleum, and alternative energy markets. As a result of ever-increasing scarcity, the market for natural resources is clamoring for diversification and innovative exploration tactics. Potential opportunities for diversification include gold, silver and other minerals in areas such as Arizona, Oregon, Alaska, British Columbia, the Yukon Territories, and other affiliated sections throughout gold districts in Northern Mexico.

This press release contains forward-looking statements involving risks and uncertainties including statements regarding the Company's future performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors which include, but are not limited to, our ability to leverage our technology, manage our growth, protect our intellectual property rights, attract new customers and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.

Contact Information