SOURCE: Silver Dragon Resources Inc.

May 23, 2006 08:00 ET

Silver Dragon Intersects New Mineralized Zone at Cerro Las Minitas Project, Mexico

DURANGO, MEXICO -- (MARKET WIRE) -- May 23, 2006 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce the progress achieved during the first week of its 5000 meter drilling program at its Cerro las Minitas Project in Durango, Mexico.

Advance during the week was 112 meters of reverse circulation drilling and 115 meters of HQ core drilling. A previously unknown zone of mineralization was intersected from 50 meters to 56 meters in drill hole LM-01, where 6 meters of oxidized breccia containing visible lead and zinc oxides was cut. Silver values in this interval will be determined by assay at ALS Chemex Laboratories. The intercept was cut below an area covered with overburden, where a fault intersection had been projected from data collected from surface exposures some distance from the drill hole collar.

Project geologists Ricardo Contreras and Oscar Jimenez were pleased to cut the fault intersection as predicted in the hole. Geologic analysis underway on the property suggests that such intersections may be the prime control of the localization of high-grade mineralized chimneys. Cuttings recovered from the new intersection display textures and mineralization seen in other known chimneys, but project geologists are reserving judgment on the significance of the intersection until assays are received and until core intersections of this zone can be made. The intersection was cut at shallow depth and is thoroughly oxidized. Another hole will be sited to cut the newly discovered mineralized zone at greater depth if assays warrant. Additional intercepts of the zone at greater depth will allow project geologists to make a preliminary assessment of the tonnage and grade potential of the new discovery. Due to heavy demand for analytical services, it is anticipated that 3 - 4 weeks will be required before preliminary assay results are returned.

The primary target of drill hole LM-01 is an intersection of the Puro Corazón chimney in the sulfide zone beneath the known workings. That intersection is expected to be reached next week.

Underground Sampling Program Planned

Underground sampling of the upper portions of the Puro Corazón chimney is scheduled to begin this month. Analysis of old sampling and production data from Puro Corazón indicates that there may be an enriched zone within the upper part of the oxide mineralization in the chimney that may contain a substantial amount of undeveloped mineralization grading in excess of 400 grams/ton silver. The sampling program is planned to assess the potential tonnage that may be developed there, as well as assess its potential for rapid extraction and processing.

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.

About Cerro las Minitas

Cerro las Minitas is comprised of 16 concessions covering 1394 Hectares. It is located in Durango, Mexico and comprises the Cerro Las Minitas mining district, part of the prolific silver belt of the Sierra Madre Occidental. Silver Dragon Resources Inc. through its wholly owned Mexican Subsidiary, Silver Dragon Mining de Mexico S.A. De C.V. acquired the exploration and mining rights to the 16 concessions in March 2006.

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. For more information, please visit www.silverdragonresources.com.

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