SOURCE: Earth Dragon Resources, Inc.

Earth Dragon Resources, Inc.

March 07, 2011 18:19 ET

Earth Dragon Resources Poised to Benefit From Record Gold Prices as Ongoing Geopolitical Events Drive Rally

TOKYO--(Marketwire - March 7, 2011) - Earth Dragon Resources, Inc. (OTCBB: EARH) (the "Company") believes that gold prices rising to record heights for the third time in a week are a clear sign of the times and agrees with many industry experts that the ceiling is potentially much higher yet.

Gold reached an all-time high of US$1,445.70 an ounce on speculation that the turmoil in the Middle East is far from over. The potential for full blown civil war in Libya alongside ongoing unrest in other nations in the region has fuelled concerns that should civil action spread to mainstream oil producers such as Saudi Arabia that disruptions to global oil supply will send gold futures ever higher.

Gold futures for April delivery hit US$5.90, or 0.4 percent, to settle at US$1,434.50 at 1:32 p.m. on the Comex in New York on Monday. Last week, the metal climbed 1.4 percent, extending the rally to six weeks, the longest since September 2007.

Given that the Company's economic model was predicated on gold prices in the US$1200/oz range, Earth Dragon finds itself in an increasingly advantageous position to capitalize on high prices in the short term alongside enhanced ability and motivation to rapidly move the projects ahead with the knowledge that the Company's capacity to weather corrections during periods of potential instability is increasing daily every time the price rises.

The market outlook is also considerably bolstered when one considers that before much of the recent unrest had commenced many industry analysts and pundits alike were predicting $3,000/oz gold prices within the next 2 years driven by demand from the electronics and jewellery sectors in China and India combined with inflation fears in North America. With current global conditions, many experts are aggressively correcting their timeline estimates forward accordingly. 

As recently announced, the Company's strategic aim is to develop its gold ventures in both Ghana and Tanzania which are both moving ahead as scheduled. Plans to develop a technical report (N.I. 43-101) to develop a regulatory compliant resource estimate are moving ahead at the Chisu Gold Project in Tanzania and recent assays from the Nkwanta Concession have returned outstanding gold values generating great interest in the project and further accelerating efforts in Ghana.

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 gold projects in Africa. The Company is currently developing highly prospective gold deposits in the Ashanti Gold Belt of Ghana and the Lupa Goldfield in the Chunya Mining District of Tanzania with plans to expand ongoing exploration and mapping efforts to include pilot plant production. For more information visit:

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.


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

Contact Information