SOURCE: Earth Dragon Resources, Inc.

Earth Dragon Resources, Inc.

May 10, 2011 07:00 ET

Earth Dragon Resources Announces New Mineral Exploration Opportunity and Provides Corporate Advisory

TOKYO--(Marketwire - May 10, 2011) - Earth Dragon Resources, Inc. (OTCBB: EARH) (the "Company") is pleased to announce a joint venture agreement with Missouri-based OverThrust Mining Corporation, to develop a significant iron ore opportunity in the Province of Quebec, Canada.

The Properties comprise two separate claim blocks, designated "Brown1" with 23 claims over 1150 hectares, and "Brown2" with 10 claims over 500 hectares located in the northeastern part of the province, respectively about 13 km and 3 km north of the town of Schefferville, which is approximately 200 km north of Labrador City, NL, 225 km northwest of Churchill Falls, NL, and 500 km north of Sept-Iles, QC.

The prospect benefits greatly from historic operations in the area as Schefferville maintains a well-established mining infrastructure and both properties are serviced by year round roads as well as active rail spurs which terminate within the claim boundaries. The iron ore resources in the vicinity are being keenly evaluated by several exploration and development companies, and local governments show renewed investment interest with a number of infrastructural programs underway regionally.

Given the relentless demands for steel around the globe, the 5-year price of iron ("Fe") has grown from just over USD$31.00 (April '06) to recent highs over USD$180.00 per metric ton ("MT"). An initial assessment of the property leads Management to conclude that commercial mining is a potentially viable opportunity and regional geological data further indicates the presence of Manganese ("Mn") (recent price: USD$3,675/ton) may be present in quantities which could increase the overall asset value.

The Company intends to conduct a series of geologic studies with the intent to develop a regulatory compliant reserve estimate and asset valuation of any potential deposits in order to develop an exploitation plan for the development of a commercial mine.

In related news, the Company wishes to advise that based on a reassessment of conditions, the Company has elected to cancel a previously announced 3:1 dividend of its common stock. The Board of Directors arrived at the decision in the belief that a stock dividend at this time will have a negative effect on the value of its common stock and could hinder efforts to raise capital or to allow for the future use of common stock to acquire additional mining claims.

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.

Earth Dragon Resources is a mineral exploration company with a strategic focus on the purchase and development of high quality production-stage mineral projects. The Company is currently developing a highly prospective gold deposit in the Ashanti Gold Belt of Ghana and has recently entered into an iron and manganese joint venture project in Canada.

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.

Contact Information