SOURCE: Silver Dragon Resources Inc.

February 14, 2007 09:00 ET

Silver Dragon Retains Ausenco International Pty Ltd. for the Erbahuo Silver Mine Project, China

BEIJING -- (MARKET WIRE) -- February 14, 2007 -- Silver Dragon Resources Inc. (OTCBB: SDRG) is pleased to announce that it has commissioned Ausenco International Pty Ltd. of Brisbane, Queensland, Australia to evaluate the current status and prepare a Project Development Plan which will outline the steps for executing a Chinese Feasibility Study for obtaining all necessary permits and the NI 43-101 technical report required for its Erbahuo Silver Mine Project in Northern China.

Marc M. Hazout, Company CEO and President, stated, "Our hiring of Ausenco International Pty Ltd. represents another important step in the development of our world-class Erbahuo silver project. We have been working on the project on a fast track basis and we are excited about hiring an independent firm to evaluate the current status and prepare a Project Development Plan. We estimate that the Status Evaluation and Project Development Plan should be completed in the next two months. This report will be a major input to our planning for expansion and further production. Once this initial NI 43-101 report has been completed at the Erbahuo silver mine we will proceed to convert the balance of our eight properties from the Chinese resource standard to NI 43-101 compliant standards."

About Ausenco International

Ausenco is an award-winning provider of innovative and high quality engineering and project management services to the global mining and minerals processing industry. Founded in 1991, it has enjoyed significant growth, undertaking projects with an Installed Capital Value of over $1 Billion in 33 countries covering the processing of minerals to produce gold, copper, nickel, silver, cobalt, lead, zinc, uranium and mineral sands, as well as the production of industrial minerals.

Today, Ausenco is involved in major projects throughout the globe including Latin America, Asia and Africa. With offices in Australia, across the Americas and in Asia, Ausenco is one of the most geographically diverse companies in its class. For more information, please visit the Company's website at: www.ausenco.com

About Erbahuo Silver Mine

Erbahuo Silver Mine covers an area of 1.2 square kilometers. It is located 120 kilometers northwest of the city of Chifeng, which is 450 kilometers northeast of Beijing, China and comprises the Erbahuo mining district, part of the prolific silver belt on the structural join where the north edge of the North China platform meets with the south edge of the Hercynian fold belt of the Great Xingan Mountains. Silver Dragon Resources Inc. owns a 60% equity interest in Sanhe Sino-Top Resources and Technologies Ltd., which owns the exploration and mining rights to the property.

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 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).

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.

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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