SOURCE: Silver Dragon Resources, Inc.

November 13, 2006 08:00 ET

Silver Dragon Resources Inc. Receives Business License and Completes Final Closing of Equity Purchase in Sanhe Sino-Top Resources and Technologies Ltd.

BEIJING -- (MARKET WIRE) -- November 13, 2006 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce the completion of the purchase of Sino Silver Corp.'s 60% equity interest in Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top") following receipt of the business license from the local industrial and commercial administration in Langfang City, China.

After receiving the Certificate of Approval for the Establishment of Enterprises with Foreign Investment in the People's Republic of China from the Ministry Of Commerce ("MOC") (See press release September 28, 2006), Silver Dragon is now officially recognized by the MOC and the local industrial and commercial administration in Langfang City in China's Hebei province as the majority equity interest owner in Sino-Top.

In accordance with its obligations for the final segment of the closing under the Asset Purchase Agreement with Sino Silver, Silver Dragon paid US$400,000 and released 4,250,000 restricted shares of its common stock from escrow to Sino Silver.

"It is extremely gratifying to deliver on the commitments we made to our long-time shareholders and to our new shareholders when we announced our decision to proceed with the acquisition of these significant assets which will be included in our year-end financial statements," said Marc Hazout, President and CEO of Silver Dragon. "The Erbahuo Silver District is one of the most prolific silver districts in the world and we can now begin to pursue the monetization of these assets which are comprised of the exploration and mining rights in over 240 square kilometers of property which includes the operating Erbahuo silver mine."

About Silver Dragon Resources, Inc.

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, respectively. For more information, please visit the Company's website at: (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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