SOURCE: Silver Dragon Resources Inc.

February 06, 2007 09:00 ET

Silver Dragon Completes 43-101 Report for Cerro Las Minitas Silver Project

TORONTO -- (MARKET WIRE) -- February 6, 2007 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to report that it has completed a technical report on the Cerro Las Minitas silver, lead and zinc project in Durango, Mexico. The Technical Report was prepared in accordance with Canadian National Instrument 43-101 by Vector Engineering, Inc., an independent engineering firm based in Grass Valley, California.

A highlight of the Technical Report is the presentation of the results of analysis of drill and underground sample data in the area of the Puro Corazon mine. Drilling and underground sampling during 2006 confirmed that contact mineralization at grades like those previously mined in the Puro Corazon mines extends to a vertical depth of more than 350 meters and is still open at depth. Drill data indicate that the contact mineralization is present for at least 450 meters along strike, but its full extent has not yet been determined and it is still open to the north and south.

Of particular interest was the discovery of high-grade silver-lead-zinc manto mineralization in previously unexplored ground to the west of the Puro Corazon mine. Silver grades were found to be higher than in contact mineralization previously mined at Puro Corazon. A sampling of drill intercepts (previously reported) illustrates the quality of mineralization intercepted in the manto deposits.

The presence of Ag-Pb-Zn manto mineralization was previously unknown at Cerro Las Minitas and represents a new discovery which significantly enhances the potential of the property. Following the discovery of manto mineralization in the Puro Corazon area, additional manto mineralization was discovered in the La Bocona area. Exploration geologists on the project now believe that undiscovered manto mineralization may be widespread on the property, but has escaped detection until now because all previous exploration on the property was done in the contact zone of the Cerro Las Minitas intrusive. The manto deposits have been discovered at a distance of 30 meters or more from the intrusive contact.

An underground drilling program of 1,200 meters is scheduled to begin on February 10th to further explore and define the manto mineralization west of the Puro Corazon mine. Drilling will be done from stations cut underground in the existing Puro Corazon workings to accomplish this exploration at significantly lower cost than could be done by surface drilling. As manto deposits are located and defined, plans are in hand to access them by short drifts driven from the existing workings at Puro Corazon. Direct access to the deposits will allow engineers to define grades and tonnages rapidly and convert these discoveries to reserve classification.

The Technical Report points out that the mineralized material that has been defined in the Puro Corazon area is only a small portion of the potential believed to exist at Cerro Las Minitas. Additional mineralization known in the La Piña - La Bocona and other areas of the property have not yet been tested in sufficient detail to be presented in the Technical Report in accordance with Canadian NI 43-101. We anticipate that additional work scheduled for 2007 will add significantly to mineralized material.

Exploration is proceeding on the property with very encouraging results. Of particular interest, a new discovery of mineralization has been made as a result of the first geochemical orientation soil survey run on the property as we prepare for large-scale geochemical surveys at Cerro Las Minitas. The new discovery has been made in a previously unexplored area approximately 300 meters southeast of the La Bocona workings. Highly anomalous values in zinc, lead and silver have been found in soils over an area measuring approximately 300 X 100 meters. This area is completely covered by alluvium and trenching will begin shortly to expose bedrock in that area to allow us to evaluate the significance of the new geochemical discovery. The new discovery has only just been made and so was not reported in the NI 43-101 Technical Report.

Investors are cautioned that the Technical Report contains qualifications, assumptions and exclusions that may be relevant to an investment decision.

Mr. Douglas R. Wood, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.

Statements contained in this news release that are not historical fact, such as statements regarding the economic prospects of the company's projects, future plans or future revenues, future exploration plans and prospects, timing of development or potential expansion or improvements, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the company's ability to raise sufficient capital to fund development, changes in economic conditions or financial markets, changes in prices for the company's mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in Mexico, technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labour relations matters, and changing foreign exchange rates, all of which are described more fully in the company's filings with the Securities and Exchange Commission.

Schedule "A" - Drill Hole results

Drill Hole LM-01:

-- @ 261.2 metres downhole: 2.80 metres grading 185 g/t (5.94 oz/ton)
   silver, 6.58% lead, 8.21% zinc, and 1.23% copper

-- @ 311.1 metres downhole: 2.60 metres grading 133 g/t (4.28 oz/ton)
   silver, 5.48% lead, 13.54% zinc, and 0.65% copper

-- @ 361.1 metres downhole: 3.70 metres grading 179 g/t (5.76 oz/ton)
   silver, 0.35% lead, 12.28% zinc, and 2.35% copper

Drill Hole LM-02:

-- @ 158.8 metres downhole: 3.55 metres grading 271 g/t (8.71 oz/ton)
   silver, 9.15% lead, 8.0% zinc, and 0.59% copper

-- @ 274 metres downhole: 1.89 metres grading 408 g/t (13.11 oz/ton)
   silver, 12.4% lead, 9.83% zinc, and 0.1% copper

-- @ 333.25 metres downhole: 1.45 metres grading 617 g/t (19.83 oz/ton)
   silver, 17.5% lead, 16.07% zinc, and 0.57% copper
      Including: 1.00 metres grading 804 g/t (25.84 oz/ton) silver,
                 21.2% lead, 19.5% zinc, and 0.36% copper

-- @ 338.5 metres downhole: 1.30 metres grading 442 g/t (14.20 oz/ton)
   silver, 12.01% lead, 9.63% zinc, and 0.11% copper
      Including: 0.65 metres grading 751 g/t (24.13 oz/ton) silver,
                 21.2% lead, 16.5% zinc, and 0.19% copper

Drill Hole LM-03:

-- @ 238.75 metres downhole: 1.15 metres grading 862 g/t (27.7 oz/ton)
   silver, 17.07% lead, 18.97% zinc, and 0.10% copper
      Including: 0.45 metres grading 683 g/t (21.95 oz/ton) silver,
                 12.6% lead,  4.92% zinc, and 0.17% copper
            And: 0.70 metres grading 977 g/t (31.4 oz/ton) silver,
                 19.95% lead, 28.0% zinc, and 0.09% copper

-- @ 298.15 metres downhole:   1.50 metres grading 1318 g/t (42.35 oz/ton)
   silver, 25.11% lead, 17.27% zinc, and 0.3%copper

      Including: 0.80 metres grading 1435 g/t (46.1 oz/ton) silver,
                 > 30% lead,  21.0% zinc, and 0.11% copper
            And: 0.70 metres grading 1185 g/t (38.1 oz/ton) silver,
                 18.95% lead, 13.0% zinc, and 0.54% copper

Drill Hole LM-04

-- @ 378.0 metres downhole: 1.90 metres grading 734 g/t (23.5 oz/ton)
   silver, 3.38% lead, 0.227% zinc, and 0.03% copper

      Including: 0.90 metres grading 1220 g/t (39.2 oz/ton) silver, 5.84%
                 lead, 0.27% zinc, and 0.06% copper
            And: 1.00 metres grading 297 g/t (9.5 oz/ton) silver, 1.17%
                 lead, 0.18% zinc, and 0.02% copper

Drill Hole LM-05

-- @ 72.35 metres downhole: 1.05 metres grading 128 g/t (4.11 oz/ton)
   silver, 0.93% lead, 0.80% zinc, and 0.21% copper

      Including: 0.50 metres grading 208 g/t (6.69 oz/ton) silver, 1.71%
                 lead, 21.0% zinc, and 0.33% copper

-- @ 77.15 metres downhole: 2.30 metres grading 569 g/t (18.29
   oz/ton) silver, 4.53% lead, 0.62% zinc, and 0.90% copper

      Including: 0.55 metres grading  1465 g/t (47.11 oz/ton) silver,
                 1.41% lead, 0.65% zinc, and 0.20% copper
            And: 1.10 metres grading 353 g/t (11.35 oz/ton) silver, 6.54%
                 lead, 0.42% zinc, and 1.03% copper

-- @ 99.15 metres downhole: 1.25 metres grading 110 g/t (3.5 oz/ton)
   silver, 2.01% lead, 0.18% zinc, and 0.08% copper

Drill Hole LM-06

-- @ 2.0 metres downhole:  2.90 metres @ 2895 g/t (93.1 oz/ton)
   silver, 339 ppm lead, 1172 ppm zinc,
   and 3678 ppm copper

      Including: 1.00 metres grading 911 g/t (29.3 oz/ton) silver, 35
                 ppm lead,  1005 ppm zinc, and 1220 ppm copper
            And: 1.90 metres grading 3940 g/t (126.7 oz/ton) silver,
                 499 ppm lead, 1260 ppm zinc, and 5110 ppm copper

-- @ 102.85   metres downhole:   2.25 metres grading  378 g/t (12.15
   oz/ton) silver, 7.75% lead, 6.56%
   zinc, and 0.02% copper

      Including: 0.65 metres grading  527 g/t (16.95 oz/ton) silver,
                 13.6% lead,  10.5% zinc, and 0.20% copper
            And: 1.05 metres grading  405 g/t (13.02 oz/ton) silver,
                 6.27% lead,  4.19% zinc, and 0.03% copper

Contact Information