SOURCE: Earth Dragon Resources, Inc.

Earth Dragon Resources, Inc.

March 31, 2011 16:05 ET

Earth Dragon Reduces Exposure to Risk

TOKYO--(Marketwire - March 31, 2011) - Earth Dragon Resources, Inc. (OTCBB: EARH) (the "Company"), wishes to advise that effective March 30, 2011 it has terminated the Joint Venture Agreement entered into on January 21, 2011 regarding the Chisu Gold Project in Tanzania. 

Company Management believes that Tanzania's economic and geopolitical environment may suffer adverse short term effects stemming from regional unrest including recent events in North Africa and the Middle East. These conditions come at a time when the Company feels prudent in concentrating its focus on efforts in Ghana and increasing its portfolio with increased activity towards the examination of resource development opportunities in mining-friendly regions of the globe.

Under the terms of the JV Agreement, Earth Dragon had a ninety (90) day period to conduct its due diligence of the project. As a result of such due diligence review, Earth Dragon has elected not to proceed with the JV Agreement and it is now terminated.

In Ghana, conditions remain stable and safely exceed the underlying risk management criteria of the Company. Earth Dragon remains committed in its efforts at the Nkwanta concessions where development activity is ongoing at its property located within the Ashanti Gold belt.

Additional details regarding the Company, its business and its agreements are filed as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database.

ABOUT EARTH DRAGON RESOURCES, INC. (OTCBB: EARH)
Earth Dragon Resources is a mineral exploration company with a strategic focus on the purchase and development of high quality production-stage gold projects in Africa. The Company is currently developing a highly prospective gold deposit in the Ashanti Gold Belt of Ghana with plans to expand ongoing exploration and mapping efforts to include pilot plant production. For more information visit: www.earthdragonresources.com.

Notice Regarding Forward-Looking Statements
Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

ON BEHALF OF THE BOARD

Earth Dragon Resources, Inc.
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Thomas W. Herdman, President & CEO

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