SOURCE: Silver Dragon Resources Inc.

January 24, 2007 11:00 ET

Silver Dragon Identifies 612,000 Tonne Ore Reserve Containing Ag-Pb-Zn Deposits From Initial Exploration Work at Dadi, China

BEIJING, CHINA -- (MARKET WIRE) -- January 24, 2007 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce the identification of 612,000 tonnes of industrial grade Ag-Pb-Zn deposits from initial exploration work at Dadi at the Sino-Top projects in the Erbahuo Silver District in Northern China.

Dadi is one of the nine properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company which holds the exclusive exploration and mining rights to nine properties 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 Dadi exploration area, covering 12.48 square kilometers, is located in Chifeng, Inner Mongolia. Mineralization anomalies of tin, copper, silver, lead and zinc have been found in different zones covering a total area of 2.5 square kilometers. The initial exploration work in 2006, which included a small-scale trenching project combined with geophysical and geochemical exploration, has revealed five Ag-Pb-Zn ore bodies on the surface within a one-square-kilometer area. Calculations based on the recent assay results have identified an industrial grade ore reserve of 612,000 tonnes, containing 47.59 tonnes of silver with an average grade of 77.76 g/t and a total of 6,000 tonnes of lead (0.76%) and zinc (0.46%). The resource calculations are compliant with China's national standards 334 for prospective resource.

Assay Results from the Trenching Project at Dadi

Ore                      Position                     Assay Results
Body   Trench   Sample  From    To     Length
                        (m)     (m)     (m)    Ag(g/t)  Pb(%)  Zn(%)  Cu(%)
V       TC5     DP019   23.9    24.9    1.0     168.0   6.62   0.77
                DP020   24.9    25.9    1.0      15.2   0.10   0.14
IV      TC7     DP026   3.4     4.3     0.9     182.0   2.52   0.27   0.04
                DP027   4.3     5.1     0.8      48.8   0.98   0.32
III             DP033   9.4     10.2    0.8      50.8   0.42   0.14
                DP034   10.2    11.1    0.9     216.0   1.52   0.24
                DP035   11.1    11.9    0.8     123.0   0.77   0.16   0.01
                DP036   11.9    12.8    0.9      31.0   0.28   0.12
                DP037   12.8    13.6    0.8      30.6   0.28   0.11
                DP038   13.6    14.5    0.9     102.0   0.35   0.22
                DP039   14.5    15.3    0.8      63.6   0.11   0.48
                DP040   15.3    16.2    0.9      80.6   0.48   0.22
                DP041   16.2    17.0    0.8      14.6   0.17   0.14
II              DP042   17.0    17.8    0.8      54.0   0.50   0.18
                DP047   21.2    22.1    0.9      78.6   0.32   0.38
                DP048   22.1    22.9    0.8      26.8   0.11   0.38
I       TC9     DP063   19.1    20.0    0.9      15.9   0.38   0.16
                DP064   20.0    20.9    0.9      77.4   1.19   0.70


Weighted Average (Composite) Assay Values for the Five Ore bodies

Ore Body        Horizontal
                Thickness (m)    Ag (g/t)     Pb (%)     Zn (%)
V                    2              91.7       3.36       0.46
IV                 1.7             119.3       1.80       0.30
III                8.4              78.1       0.50       0.20
II                 1.7             49.09       0.22       0.38
I                  1.8             46.65       0.78       0.43


Table of Resource Calculations

Ore      Dimension (m)    Average Grade    Ore         Metal (tonne)
Body     L.    W.   D.   Ag     Pb   Zn  (1,000     Ag      Pb      Zn
                        (g/t)  (%)   (%)  tonnes)
I       100   1.8   50  46.65  0,78  0.43    27    1.26   210.6   116.1
II      100   1.7   50  46.09  0.22  0.38  25.5    1.18    56.1    96.9
III     200   8.4  100   78.1  0.57  0.20   504   39.36  2872.8  1008.0
IV      100   1.7   50  119.3  1.80  0.29  25.5    3.04   459.0    74.0
V       100   2.0   50   91.7  3.36  0.46     3    2.75  1008.0   138.0
Total                   77.76  0.75  0.23   612   47.59  4606.5  1433.0


Interpretation of Exploration Results

Calculations based on currently available data reveal an ore reserve of 612,000 tonnes, with the metal content being 47.59t silver, 4,606.5t lead and 1,433t zinc. Analyses of the ore bodies in the area, which is a typical volcanic sediment area containing strata-bound mineral deposits, have led to the speculation that the actual ore and metal resources may be at least double the current findings.

"Our achievement at Dadi in 2006 was very impressive considering the fact that our initial exploration project was limited to a small surface area. In 2007, we intend to intensify our exploration effort at this property to further define the extensions of the Ag-Pb-Zn ore bodies," 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: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information