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Silver Dragon Resources Inc.
200 Davenport Road
Toronto, Ontario M5R 1J2
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News Release

Silver Dragon Resources Completes Independent Review of 2009 Exploration Program and Reports Bonanza Drill Intersection Averaging 2,937gpt Silver, 25.96% Lead and 29.95% Zinc over 2.9 metres on its Dadi Property, Inner Mongolia, China

BEIJING, May 6, 2010 (PRIME NEWSWIRE) – Silver Dragon Resources Inc. (OTCBB:SDRG) (“the Company”) is pleased to report the results of an independent review  of the 2009 exploration program completed at its Dadi poly-metallic silver property in Inner Mongolia, China.  The review was completed in Q1-2010, with the results presented in a Technical Report prepared by Southampton Associates Inc. of Toronto, Canada.  The NI 43-101 report is filed on the Company web site at www.silverdragonresources.com.

Silver, lead, and zinc mineralization is exposed on surface and underground as both oxides and sulphides in two deposits referred to a PD-1 and PD-2.  Both deposits exhibit good continuity along strike and down dip, each with excellent potential for additional discoveries, as well as along parallel structures.  The following are the highlights of Southampton’s 43-101 report:

  • The weighted average grade of all of the samples collected during the 2009 exploration program is 187.75 gpt silver (Ag), 1.98% lead (Pb), and 2.34% Zinc (Zn);
  • The most significant drill intercept was 2,937 g/t silver, 25.96% lead, and 29.95% zinc over a 2.9 meter interval
  • Independent confirmation sampling by Southampton Associates Inc., and assaying by SGS Toronto (an ISO approved Laboratory),  confirms the order of magnitude of the assay results reported;
  • The proposed 2010 surface and underground exploration program, which includes 10,000 meters of drilling, 2,000 meters of tunnelling, and 2,000 meters of trenching are designed to define and optimize the variables required to support a scoping study by Q-4, 2010; and
  • The proposed Dadi exploration program budget of $US3.3 million, of which Silver Dragon’s 40% share is fully-funded, commenced in April 2010.

Within the recently completed exploration program at Dadi, extensive surface trenching and chip sampling was carried out at both the PD-1 and PD-2 deposits, as well as surface and underground diamond drilling at PD2.  The following tables summarize the significant results generated from this program.

Significant Trench Assays
Silver Dragon Resources Inc. - Dadi Property, Inner Mongolia, China
Deposit Trench Width Silver Lead Zinc
Name Number (m) (gpt) (%) (%)
PD1 DTC-021 3.1 530.0 8.35 0.45
PD1 DTC-021 2.8 841.8 2.5 0.58
PD1 DTC-021 2.5 208.7 1.41 0.58
PD1 DTC-021 9.7 195.2 1.76 0.37
PD1 DTC-021 25.3 357.4 2.55 0.26
PD2 DTC-024 7.2 740.6 5.85 0.82
PD2 DTC-025 5.8 691.9 3.11 2.03
PD2 DTC026-2 5.0 311.1 2.79 0.93

The weighted average grade of the significant trench samples above is 140.3 gpt silver (Ag), 1.2% lead (Pb) and 2.3% zinc (Zn) over a true width of 8.3 meters

All drill holes encountered significant mineralization, particularly ZK0401 which discovered bonanza grades of 2,937 g/t silver, 25.96% lead, and 29.95% zinc over a 2.9 meter interval at a depth of approximately 237 meters below the surface.

Significant Diamond Drill Hole Assays
Silver Dragon Resources Inc. - Dadi Property, Inner Mongolia, China
Deposit Hole Width Silver Lead Zinc
Name Number (meters) (gpt) (%) (%)
PD2 ZK0001 14.20 67.30 0.95 1.15
PD2 ZK0001 3.60 113.80 0.98 4.32
PD2 ZK0001 8.00 84.82 1.26 1.59
PD2 ZK0401 6.60 517.46 1.10 4.71
PD2 ZK0401 13.50 13.40 0.17 1.22
PD2 ZK0402 9.10 15.97 0.57 1.44
PD2 ZK0402 2.50 37.15 1.41 1.39
PD2 ZK0801 22.00 245.06 1.93 3.16
PD2 ZK01201 2.30 84.87 2.09 1.51
PD2 ZK01202 0.70 158.00 3.70 11.46

The weighted average grade of the significant drill assays above is 429.3gpt silver (Ag), 3.1% lead (Pb) and 0.6% zinc (Zn) over a true width of 7.7 metres.

The weighted average grade of all of the samples collected during the 2010 exploration program is 187.75 gpt silver (Ag), 1.98% lead (Pb), and 2.34% Zinc (Zn).

PD1 Underground Chip-Channel samples Assays
Silver Dragon Resources Inc - Dadi Property, Inner Mongolia, China
Deposit Sample Sample Width Silver Lead Zinc
Name Location Number (m) (gpt) (%) (%)
PD1 Section 1 PD1CM01 5.80 339.86 5.66 0.56
PD1 Section 3 PD1CM031 0.93 98.33 0.61 0.81
PD1 Section 3 PD1CM03 3.70 8.62 0.15 1.60
PD1 Section 5 PD1CM05 4.00 51.18 0.64 3.57
PD1 Section 7 PD1CM07 6.00 19.22 0.28 4.27
PD1 Section 9 PD1CM09 1.00 19.80 0.36 1.29

The weighted average grade of the significant underground PD1 chip-channel samples above is 113.6 gpt silver (Ag), 1.8% lead (Pb) and 2.4% zinc (Zn) over a true width of 3.5 metres.

PD2 Underground Chip-Channel samples Assays
Silver Dragon Resources Inc - Dadi Property, Inner Mongolia, China
Deposit Sample Sample Width Silver Lead Zinc
Name Location Number m gpt % %
PD2 Section 2 PD2YM2 1.30 113.46 1.43 1.72
PD2 Section 12 PD2CM12 7.10 39.65 0.49 0.52
PD2 Section 8 PD2CM08 6.80 441.62 5.69 1.20
PD2 Section 6 PD2CM06 0.50 61.10 0.78 1.22
PD2 Section 4 PD2CM04 3.40 356.00 9.85 6.66
PD2 Section 2 PD2CM02 1.00 516.21 4.62 11.80
PD2 Section 0 PD2NCM00 8.20 25.74 0.46 0.74
PD2 Section 1 PD2NCM01 14.00 72.73 0.77 1.16

The weighted average grade of the significant underground PD2 chip-Channel samples above is 151.7 gpt silver (Ag), 2.3% lead (Pb) and 1.7% zinc (Zn) over a true width of 5.3 metres.

The Dadi Property has demonstrated exploration and development potential, and further work is recommended to advance the project to production. To accomplish this goal, Southampton Associates Inc. recommends an integrated surface and underground exploration-development program during 2010, including the sinking of a 500-meter shaft and metallurgical testing.

The objective of the proposed program which commenced in April 2010 is to define and optimize the variables required to support a scoping study. The cost of the recommended program is as follows:

SURFACE EXPLORATION $ 726,000
UNDERGROUND EXPLORATION $ 925,000
METALLURGICAL TESTING $ 100,000
PURCHASE UNDERGROUND & SURFACE DIAMOND DRILLS $ 1,250,000
SUBTOTAL $ 3,000,000
CONTINGENCIES 10 % $ 300,000
TOTAL $ 3,300,000

The proposed exploration and development program is fully funded

Mr. Marc Hazout President, CEO, and Director of the Company, reports that "Silver Dragon, along with its partners HIC and Gansu Shengda Group, are very excited about the 2009 exploration results at the Dadi project, which was awarded Prospector/Explorer of the year at the China Mining Congress and Expo last October. Silver Dragon is fully funded to complete the proposed 2010 exploration/development program, and looks forward to working with its partners towards advancing the project to a production decision in 2011".

Mr. David G. Wahl, P.Eng., P.Geo., ICD, is Silver Dragon Resources' independent Qualified Person under the requirements of National Instrument 43-101 and is responsible for this press release.

3D Model, PD1 and PD2
(Looking Northwest)
(PD1 is the Red mass in the middle; PD2 is the larger red Mass to the right of PD1)

Sampling and Analytical Procedures:

The samples were taken by qualified geologists and technicians of The North China Geological Exploration Bureau* under the direction of Dr. Tiebing Liu, P. Geo, a Chinese National educated at the University Of Cincinnati, USA, who is an independent advisor to the Joint Venture.  Dr. Liu is a senior member in good standing with Geological Society of China – Mining Geology Division.

The rock and core samples collected on the Dadi property were delivered to the Yanjiao Central Laboratory of North China Nonferrous Geological Bureau in Sanhe for analysis. The Yanjiao Central Laboratory of North China Nonferrous Geological Bureau is not an ISO approved Laboratory; however, it has been recognized by the government of China for the quality of its work.  Southampton visited the Lab, held discussions with the management and staff, and reviewed the sample QA/ QC flow sheet from sample arrival to sample archive.  The lab is equipped with modern analytical instrumentation similar to what would be operating in a modern North American Laboratory.

The ground material, from the crushing and grinding section, is delivered to the analysis section of the lab for further processing.  The assay procedure for lead, zinc and silver is as follows:

From the 400-gram sample generated from the crushing and grinding circuit, a 0.2 gram sample is taken for analysis.  The sample is digested in Aqua Regia (3HCl + HNO3).  Following complete digestion, 50 milliliters of water is added to the sample.  The sample is then analyzed using Atomic Absorption Spectroscopy (“AAS”).  The grades for contained lead, zinc, and silver are calculated and report the following elemental accuracy; silver (Ag) is reported in parts per million (ppm) with an accuracy of 1 part per million, while lead (Pb) and zinc (Zn) are reported in percent (%) with an accuracy of 0.01 %.

The Yanjiao Central Laboratory of North China Nonferrous Geological Bureau is an independent government run laboratory and is not related either to Silver Dragon, Sino-Top or the Joint Venture.   No aspect of the sample preparation or the analytical procedure was carried out by an employee, officer, director or associate of the Silver Dragon, Sino-Top or the Joint Venture.

About Dadi Property

Dadi is one of the six exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company that holds exclusive exploration rights to these properties, located in the prolific Erbahuo Silver District in Inner Mongolia, China.  Silver Dragon Resources Inc. has a 40% ownership interest in Sino-Top.  The Laopandao exploration area covers 44.79 square kilometers and is located approximately 650 kilometers north by northeast of Beijing in Chifeng, Inner Mongolia.  Mineralization zones have been identified in the northern, central, and southern portions of the exploration area.  The most significant recent discovery was the existence of Ag-Sn-Cu-Pb mineralization on the peripheries of a previously identified tin mineralized zone.  The mineralization is mainly a continental volcanic-sedimentary rock altered strata-bound mineral type.
About Sino-Top – China Mining 2009 Award Winner

Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top") was originally incorporated in 2003 as a Chinese company wholly owned by Huaguan Industrial Corp. (``HIC''), a subsidiary of the state-owned North China Geological Exploration Bureau.  Sino-Top became an American-Chinese joint venture in 2005.  Silver Dragon Resources Inc. acquired Sino-Top in 2006, and currently owns 40% of Sino-Top after having sold 50% of its ownership interest to its Chinese partners.  The Chinese side, led by Gansu Shengda Group Ltd. (“Shengda”), at 52%, and HIC, at 8%, collectively own 60% of Sino-Top.  Sino-Top holds exclusive exploration and development rights to six properties in northern China (Inner Mongolia), covering a total area of 139 km2.  Sino-Top won the prestigious Prospector/Explorer of the Year Award for its Dadi Silver Polymetallic Project at the China Mining Congress & Expo 2009 held in Tianjin, China, during October 20-22, 2009.

About Silver Dragon Resources Inc.:
Silver Dragon Resources Inc. is a mining and metals 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 Cerros las Minitas project in Mexico, its six Sino-Top properties in China ( particularly Dadi and Laopandao), and its Erbahuo Silver mine (via its Chifeng Silver Dragon subsidiary), also in 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, such as statements regarding the exploration and development of the Dadi Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results, are forward-looking statements.  Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur. Information inferred from the interpretation of assay results and information concerning mineralization zones may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.  Forward-looking statements 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 future assay results, delays in testing and evaluation of assays, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.  

Contact Silver Dragon Resources Inc.

Marc Hazout
President
(416) 223-8500 or Toll Free: 1-866-512- SDRG (7374)
Email: info@silverdragonresources.com

Alessandro Motta
Investor Relations
(416) 223-8500 or Toll Free: 1-866-512- SDRG (7374)
Email: info@silverdragonresources.com

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The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically or legally extract or produce. We may use certain terms on this website such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated" or "inferred," which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K. You can review and obtain copies of the latest Form 10-K filing from the SEC's website at http://www.sec.gov/edgar.shtml.