SOURCE: Drake Gold Resources, Inc.

December 19, 2006 16:15 ET

Drake Gold Signs Joint Venture With North Star Strategic Minerals Inc.

SCOTTSDALE, AZ -- (MARKET WIRE) -- December 19, 2006 -- Drake Gold Resources, Inc. (PINKSHEETS: DKGR) is pleased to announce a new joint venture with North Star Strategic Minerals Inc., a subsidiary of North Star Diamonds Inc., to begin exploration and mining operations on the Gold Star Property located in southeastern Manitoba.


Located 200 meters west of the Falcon Lake intrusive complex, the Gold Star property consists of quartz stringers within a shear zone found amongst volcanic conglomerates. Mineralization consists of pyrite, chalcopyrite and arsenopyrite. Volcanic regions such as this typically produce consistent amounts of ore and other minerals. Mines in the area confirm this trend. The neighboring Gem property has assayed 8.09 oz/ton gold. The Gem property is surrounded on three sides by the Gold Star property leading Drake Gold to believe a large potential for gold retrieval exists on this property. In addition to mining gold and other precious metals, the process should produce ornamental rock, which could be used to supply the landscaping and building industry.


The Gold Star property was first staked in 1890 and a sample taken assayed 5.30 oz/ton gold with traces of silver. Through the years, several additional samples have been taken by independent parties revealing results of up to 11.78 oz/ton. As recent as 1986, Troymin Resources Ltd. performed an evaluation report on the star group of claims including the Rad and Sheba occurrences, both of which are on the Gold Star property. Chip samples revealed assays ranging from trace to .28 oz/ton while a grab sample with quartz from the Rad trench assayed .77 oz/ton. In addition, Mag and VLF surveys were performed and magnetic trends and conductive zones revealed folding. This report recommends detailed mapping and sampling and soil geochemical surveys.


The potential of the Gold Star property is enticing. This property has never been commercially mined and preliminary results from other mines in the area seem to indicate great opportunity. Although a full geologist report has not been conducted on the property, the preliminary opinion of geologists who have spent time on the property is that the property rates between good and excellent for producing significant amounts of gold. Drake Gold Resources will spend the next several months conducting in-depth surveys and geological evaluations to determine a long-term plan for this property. Initially, Drake Gold Resources estimates it will be spending the next 7-10 years developing this property as a producing mine. This time commitment should benefit long-term shareholders as the price of gold continues to rise.


Drake Gold Resources Inc. will have a 50% working interest split equally with North Star Strategic Minerals Inc. It is planned that an exploration program will begin and will translate into gold recovery, as target locations are determined. The work program will be jointly funded between both Drake Gold and North Star Strategic Minerals Inc.


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.

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