Asian Dragon Group Successful In Obtaining Majority Interest In Promising Luoning Xiayu Xiaowagou Mine - Sampling Results Returning As High As 7658.50 g/T Silver



    LUOYANG, CHINA, October 22 /CNW/ - Asian Dragon Group Inc., (OTCBB:AADG)
(FWB:P2J1) (WKN:A0KE7Z) a precious and base metals exploration, property
acquisition and mining development company, is excited to announce that it has
entered into an Agreement to acquire a 70% interest in the Xiaowagou ("XWG")
Mine, a Silver-Lead Property, holding a current 2.13 km2 Exploration Permit,
through its partner, Fuding Mining Development Limited, a China Base and
Precious Metal Development Company. The XWG Property is located in the area of
Xiayu and adjacent to the TSX listed Silvercorp Metals Inc.'s Ying Silver
Project, within 3 km from their world class HPG Silver-Lead Mine and 6 km
southwest of the SGX Silver-Lead Mine.

    The Xiayu region of Luoning County in the Henan Province of China
exhibits prolific Silver-Lead mineralization that is comparable to the mineral
deposit types similar to the mesothermal veins of the Coeur d'Alene District
in Idaho, U.S.A., where more than 1 billion ounces of silver have been mined
in the past 120 years.

    Director Daniel Hachey, who has been involved in numerous major corporate
financings including Glamis Gold, Canico Resource, Research in Motion, JDS
Fitel, Alliance Communications, commented on the latest acquisition, "We are
thrilled to add the XWG Property to our assets in China. Combined with the
recently acquired Fanggelewan Silver-Lead Mine (FGLW), we have significantly
increased the potential for a major discovery of a world class Silver-Lead
deposit. Asian Dragon continues to demonstrate their strong Chinese
connections as it is the only public company, other than Silvercorp, to have
acquired 2 prime prospect silver-lead properties in the Xiayu region. With the
recent additions of the Silver-Lead properties to the Luanchuan Mozigou (MZG)
Molybdenum Mine, Asian Dragon has dramatically enhanced its property
portfolio. As Asian Dragon continues its momentum in conjunction with the
increasing value of gold and silver on the worldwide market, key management
and operational prospects are being reviewed to accelerate Asian Dragon's push
to major mine discovery and resource production."

    Asian Dragon's Independent Qualified Person Mr. Christian Derosier,
P.Geo, recently visited the XWG Property where he had the opportunity to study
five tunnels and several trenches. Some of these tunnels and trenches were
sampled and assayed. He is pleased to report that the results from these
samples range as follows:

    
    0.16 - 30.1g/T Au
    10.35 - 7658.50 g/T Ag
    0.35% - 2.38% Cu
    0.22% - 12.11% Pb
    0.06% - 9.80% Zn
    

    Mr. Derosier stated on the XWG Mine, "Because of the presence of the
granitic intrusion, one can expect higher gold and copper values in the halo
of metamorphism with a diminution of silver and base metals grades." Based on
the previous Chinese Property Owner's preliminary work program, Mr. Derosier
is very excited about the potential of the property.

    About Asian Dragon

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

    Long standing relationships with the Gold Bureau and other Chinese
Partners have provided Asian Dragon with the exclusive opportunity to commence
due-diligence on several advanced Chinese 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. Max Sioson,
604-338-6281 (Investor Relations)

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ASIAN DRAGON GROUP INC.

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