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

Phone: 416-223-8500
Toll Free(North America): 1-866-512-SDRG (7374)
Fax: 416-223-8507

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News Release

Shengda Group Acquires 52% of Sino-Top from Silver Dragon’s Chinese Joint Venture Partner

BEIJING, November 20, 2008 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce that Gansu Shengda Group Ltd. (Shengda), a private Chinese conglomerate, has agreed to acquire 52% of the equity interests in Sanhe Sino-Top Resources & Technologies, Ltd. (``Sino-Top'') from Huaguan Industrial Corp. (``HIC''), Silver Dragon’s state-owned Chinese joint venture partner.

Shengda and HIC have entered into an agreement whereby HIC will transfer 52% of its stake in Sino-Top to Shengda’s mining investment arm, Beijing Shengda Zhenxin Industrial Corporation.  As a future 40% minority owner of Sino-Top, Silver Dragon has consented to this transfer.  There will be no material impact on the original equity transfer agreement signed between Silver Dragon and HIC, which is currently undergoing the final stages of approval by the Chinese government (see press release dated July 14, 2008).

“We are excited that Shengda will become our main Chinese joint venture partner as we transition from an explorer to a producer," commented Mr. Marc Hazout, President and CEO of Silver Dragon Resources Inc. "  As a major Chinese silver producer, Shengda is well-funded as well as highly-experienced in mine development and production.  Shengda’s participation in our Sino-Top joint venture will no doubt magnify the value of our Chinese assets.”

“We are very pleased to acquire a majority stake in Sino-Top,” commented Mr. Mantang Zhao, chairman and chief executive of Shengda, who also serves as chairman of the board of Sino-Top.  “We are committed to accelerating the development of the Sino-Top properties and maximizing shareholder value.”

About Shengda
Gansu Shengda Group Ltd. (“Shengda”) has been one of the 500 largest privately-owned Chinese enterprises since 2001. Shengda is a Lanzhou city, Gansu province-based conglomerate, whose main operations are in the mining industry. Shengda currently owns eight producing mines, including a major interest in Bairendaba, and over 20 exploration properties, mostly in northern China. Bairendaba is a supersized Ag-Pb-Zn mine with proven reserves of over 4,000 tonnes of silver and 1.5 million tonnes of lead and zinc, and a milling capacity of over 1 million tonnes’ ore per year. Shengda is the operator and the largest shareholder of Bairendaba with a 42% ownership interest. Bairendaba is adjacent to the Erbahuo Silver District, where all of Sino-Top’s nine properties are located (see project location map on Silver Dragon’s homepage). Shengda intends to go public in China with some of its premium mining assets by the end of this year.

About Sino-Top
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 state-owned entity 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 90% and shall own 40% after receiving Ministry of Commerce approval as per the equity transfer agreement with Huaguan Industrial Corp. (see press release of July 14, 2008). The Chinese side led by Shengda and HIC collectively owns 60%. The company holds exclusive exploration rights to eight properties and mining rights to one property (Erbahuo Silver Mine) in northern China (Inner Mongolia), covering a total area of 261.25 km2.

Under the same agreement, however, Erbahuo Silver Mine will be spun off from Sino-Top and be put under a separate entity, i.e. Chifeng Silver Dragon Resources & Technologies, Ltd. (“Chifeng Silver”), an American-Chinese joint venture that will be 70% owned by Silver Dragon upon completion of the relevant government approval process.

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 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, such as statements regarding the exploration and development of the Liangdi 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
(416) 223-8500 or Toll Fee: 1-866-512- SDRG (7374)

Alessandro Motta
Investor Relations
(416) 223-8500 or Toll Fee: 1-866-512- SDRG (7374)


Cautionary Note to U.S. Investors
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