SOURCE: Silver Dragon Resources Inc.

February 12, 2007 08:00 ET

Silver Dragon Identifies 429,800 Tonne Ore Reserve Containing Ag-Cu Deposits from Initial Exploration Work at Zhuanxinhu, China

BEIJING -- (MARKET WIRE) -- February 12, 2007 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce the assay results from initial exploration work at Zhuanxinhu at the Sino-Top projects in the Erbahuo Silver District in Northern China.

Zhuanxinhu is one of the nine properties which Sanhe Sino-Top Resources and Technologies, Ltd. ("Sino-Top"), a Chinese company, holds the exclusive exploration and mining rights to, including a silver mine located in the prolific Erbahuo Silver District in Inner Mongolia, China. Silver Dragon has a 60% ownership interest in Sino-Top.

The Zhuanxinhu exploration area, covering 6.24 square kilometers, is located in Chifeng, Inner Mongolia. It is a typical volcanic sediment area containing strata-bound mineral deposits. The initial exploration work in 2006, which focused on the central part of the area with a small-scale trenching project combined with a 3-hole drilling program, has revealed the following assay results.

Assay Results from the Exploration Projects in 2006

                     Sampling Interval   Assay
                           (m)           Results
                     ----------------- -----------   Grade(Ag g/t Cu%)
         Proj- Samp-                               ---------------------
         ect   le N-             Leng- Ag(g-  Cu       Thickness (m)
Ore Body No.    o.   From   To    th   /t)   (%)
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
         TC1   ZP013  17.0  18.0   1.0  19.2  0.35     Ag19.2Cu0.35
         ----- ----- ----- ----- ----- ----- -----     ------------
                                                            1.0
               ZP051  25.0  26.4   1.4  27.2  0.40     Ag40.5Cu0.32
  II     TC2   ----- ----- ----- ----- ----- -----     ------------
               ZP052  26.4  27.5   1.1  57.4  0.23          2.5
         ----- ----- ----- ----- ----- ----- -----
         TC3   ZP043  34.5  35.5   1.0  13.8  0.25     Ag13.8Cu0.25
                                                       ------------
                                                            1.0
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
               ZP009   9.0  10.0   1.0  12.8  0.25
               ----- ----- ----- ----- ----- -----
               ZP010  10.0  11.0   1.0 106.0  0.36     Ag129.84Cu0.57
III - 1  TC11  ----- ----- ----- ----- ----- -----     --------------
               ZP011  11.0  12.0   1.0  59.6  0.10          4.0
               ----- ----- ----- ----- ----- -----
               ZP012  12.0  13.0   1.0 341.0  1.58
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
                                                       Ag43.20Cu0.24
III - 3  Zk7-1 ZP208 66.14 68.14   2.0  43.2  0.24     --------------
                                                            2.0
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
               ZP211 72.14 73.14   1.0  61.4  0.66
               ----- ----- ----- ----- ----- -----     Ag50.11Cu0.56
III - 2  Zk7-1 ZP212 73.14 74.14   1.0   6.0  0.05     -------------
               ----- ----- ----- ----- ----- -----          3.65
               ZP213 74.14 75.79  1.65  70.0  0.80
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
                                                       Ag55.4Cu0.11
IV       Zk7-1 ZP201  39.2  41.0  1.80 55.41  0.11     ------------
                                                            1.8
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
                                                       Ag73.3Cu0.68
V        Zk7-1 ZP216 106.8 107.9  1.10  73.3  0.68     ------------
                                                            1.1
-------- ----- ----- ----- ----- ----- ----- ----- ---------------------
Interpretation of Exploration Results

"We have achieved significant findings at Zhuanxinhu despite the small scale of our initial exploration project last year. In 2007, we intend to intensify our exploration effort at this property with the purpose of developing it into a Ag-Cu mine in the near future," stated Mr. Yang Guofu, Sino-Top's Chief Geologist.

CAUTIONARY NOTE TO U.S. INVESTORS

The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this press release, such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated," and "inferred," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 000-29657. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.

About Silver Dragon

Silver Dragon Resources Inc. is a mining and metal company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly leveraged, out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing the Cerro las Minitas and the Erbahuo projects in Mexico and China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: 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 China, 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.

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