Silver Dragon Resources Inc. reports progress of its ongoing comprehensive exploration program at Liangdi project.

The tunneling project PD1 has further revealed the extensions of mineralized bodies No.4, No.5, No.6, No.7 and No.8 (see Figure 1). In particular, the length of the indicated part of mineralized body No.6 is now 120 meters, and that of No.7 is 80 meters. The grades of mineralized body No.6 are up to 663g/t Ag, 15.63% Pb and 18.38% Zn (see sample LH220 in Table 1). The horizontal thicknesses of the mineralized bodies are mostly between 2 and 3.6 meters.

Silver Dragon's geological advisor, Dr. Tiebing Liu says:

"We are excited about the latest results of our trenching and tunneling projects." "which have shown that the mineralized bodies have a tendency of extending in thickness from surface to underground, with increasing grades of Silver, Lead and Zinc. This further strengthened our belief that the Liangdi Silver-Lead-Zinc exploration area has very good ore-forming potentials."

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