SOURCE: Silver Dragon Resources Inc.

November 09, 2006 08:00 ET

Silver Dragon Resources Inc. Closes Further Financing for a Total of US$6.5 Million to Date in 2006

TORONTO -- (MARKET WIRE) -- November 9, 2006 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce that it has closed a financing consisting of 500,000 units and Class A, B, and C Warrants. Each Unit was priced at $1.00 and consists of one common share of the Company and share purchase warrants. One Class A Warrant was issued for each two shares and will entitle the holder to purchase an additional common share of the Company at any time over a period of five years from the date of closing of the private placement at an exercise price of $2.00. One Class B Warrant was issued for each two shares and will entitle the holder to purchase an additional common share of the Company at any time over a period of five years from the date of closing at an exercise price of $5.00. Two Class C Warrants were issued for each share issued on closing. The per Warrant Share exercise price to acquire a Class C Warrant Share shall be $1.00 and shall be exercisable until one year from the date of closing. US$500,000 was advanced on closing which has resulted in the Company receiving a total of $6.5 Million in financing to date in 2006.

The Company has the option to call the exercise of the shares pursuant to the Class C Warrant commencing 30 trading days after the effective date of a registration statement which the Company intends to file, and which may result in the advance of a further $1 Million from the subscriber subject to certain conditions.

"The Company plans to use the proceeds of the financing towards the production and development of the Cerro las Minitas silver mine in Durango, Mexico, to continue the exploration and development program presently under way at the Erbahuo silver project in China, as well as for general corporate purposes," stated Marc Hazout, President and CEO. "We are financed for our plans for the balance of this year and look forward to executing our vision for the company in the new year."

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.

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