Asian Dragon Group Inc. Enters Final Negotiations With Major China Gold Producer, Luoning Luyuangou Gold Mine With High Grade Gold Assay Values of 1,185 g/t



    LUOYANG, CHINA, March 5 /CNW/ - Asian Dragon Group Inc. (OTCBB:AADG)
(FWB:P2J1) (WKN:A0KE7Z) is excited to report Asian Dragon has entered final
negotiations with Luoning Huatai Mining Development Company Limited (Huatai),
to acquire an interest in the Luoning Luyuangou Gold Mine (Luyuangou). The
focus on immediate gold production complements the development of Project
Luogold in Luoning County. Asian Dragon continues to seek partnerships with
existing gold producers to finance operations and share revenue from newly
expanded gold production within the mine. Huatai operates a number of
profitable Gold and Silver Mines in Luoning County of Henan Province,
including their HPG Silver Mine, which recently joint ventured with Silvercorp
Metals Inc., on a 40 / 60 basis.

    The Luyuangou Gold Mine consists of a non-exploited, formerly state-owned
(Luoyang Lushi Geological Resource Co. Ltd., a subsidiary to the Sixth Team of
Nonferrous Geological and Mineral Resource Bureau) and now privatized gold
mine with fully equipped mining infrastructure including rail facilities for
main haulage and subordinate machinery for secondary haulage. The property is
approximately 10.83 km2 with gold mining operations from 6 tunnels from the
No. 1 and No. 2 veins. The daily total ore production is over 500 t/d which
exceeds the capacity of their newly constructed 300 t/d concentration mill
operation. The ore being mined averages over 15 g/t according to the
information provided by Huatai. The economics have led to dump trucks from as
far as away as 200 km to purchase these high-grade ore to haul back for
process.

    Mr. Christian Derosier, P.Geo, President of CDGC Inc., a world renowned
geology and mining company and Asian Dragon's appointed independent qualified
person, is finalizing detailed reports from his recent visit and review of the
Luyuangou Gold Mine. His initial comments after the tour were that the
Luyuangou Gold Mine is the best gold mine he has visited in China. The mine
facilities are new and modernly equipped. He was excited to obtain several
samples from the mining operation of the No.2 vein, of which one of the
samples returned an assay value of 1,185 g/t grade, the highest assay result
from a sample that he has taken in China.

    About Asian Dragon

    Asian Dragon was established to focus on China's explosive precious
metals reserves and markets and to become one of China's largest foreign gold
and precious metals producers through a series of joint ventures and mine and
property acquisitions.

    Long standing relationships with the Gold Bureau have provided Asian
Dragon with the exclusive opportunity to commence due-diligence on several
advanced Chinese Gold Mining Projects in one of the Country's most well-known
and prolific mineral production regions, the Xiaoqinling Region.

    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.




For further information:

For further information: Asian Dragon Group Inc. Investor Relations:
Badshah Communications Group Ltd., 866-857-7522

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ASIAN DRAGON GROUP INC.

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