SOURCE: Earth Dragon Resources, Inc.

Earth Dragon Resources, Inc.

January 24, 2011 06:00 ET

Earth Dragon Resources Enters Into Gold Venture in Tanzania

TOKYO--(Marketwire - January 24, 2011) - Earth Dragon Resources, Inc. (OTCBB: EARH) (the "Company") is pleased to announce the signing of a joint venture agreement with Chisu Gold Mines Limited ("Chisu") in order to conduct mining operations on certain mineral concessions prospective for gold located in Tanzania, Africa.

As part of the agreement, Earth Dragon Resources shall commit a minimum of US$2 million over the next 2 years to earn a 20% ownership plus first right of refusal to undertake all remaining financing requirements of the project.

The prospect location is known as the Chisu Gold Project and consists of a contiguous area encompassing gold deposits in the Chunya Mining District straddling part of SW and Eastern Tanzania over an area of approximately 60 hectares in a region known as the Lupo Goldfields where gold was mined between 1922 until about 1962. The average ore grade during the production period was 13.4g/t. The gold occurs in quartz veins ranging between 30‐180cm in width. The region has been indigenously mined for over 40 years with recent studies revealing the underlying geology with increasing accuracy and detail.

Under the terms of the agreement Chisu has primary responsibility for compliance with applicable mining, environmental, business and tax rules, regulations and laws. Earth Dragon shall advise on management of the mining site, facilities, equipment and all mining operations including exploration and eventual development of a pilot production facility.

Company President & CEO Thomas Herdman states, "Along with historically high gold prices come many pure exploration opportunities. However, our aim has remained focused on advanced stage gold prospects offering near term production. Our studies show that even a relatively modest pilot plant could generate significant returns and create considerable impetus for growth. Accordingly, we are taking a page from the major regional players who have long understood that a diverse portfolio is a requirement for successful growth. As a junior, we are agile enough to geographically deploy our resources across multiple projects as circumstances warrant and can affect considerable cost advantages in so doing. Adding Tanzania is a perfect fit as the Chunya District is a well-known region rich in historic mining activity and the property has recently been studied in-depth and even includes some preliminary infrastructure to build upon. We look forward to getting the project off the ground in order to prove the location's feasibility by pilot production as soon as possible."

In related news, the Company is further pleased to announce the launch of its corporate website. For additional information about the company, please visit:

Additional details regarding the Company 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, development and production of high quality end-stage gold projects in West Africa. The Company is currently developing a highly prospective deposit in the Ashanti Gold Belt of Ghana and plans to expand ongoing exploration and mapping efforts to include pilot plant production facilities. The Ashanti Belt is one of the most prolific gold belts in the world with over 100 million proven ounces uncovered and current investment in excess of $2.5 Billion USD. For more information visit:

Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. 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.


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

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