Silver Dragon Reports Assay Results at Erbahuo Silver Mine, China



    BEIJING, CHINA, March 21 /CNW/ - Silver Dragon Resources Inc.
(OTCBB:SDRG) is pleased to announce assay results from comprehensive
exploration work at Erbahuo Silver Mine at the Sino-Top projects in the
Erbahuo Silver District in Northern China.

    Erbahuo Silver Mine covers an area of 1.2 square kilometers. It is
located 120 kilometers northwest of the city of Chifeng, Inner Mongolia, which
is 450 kilometers northeast of Beijing, China and comprises the Erbahuo mining
district, part of the prolific silver belt on the structural join where the
north edge of the North China platform meets with the south edge of the
Hercynian fold belt of the Great Xingan Mountains. Silver Dragon Resources
Inc. owns a 60 % equity interest in Sanhe Sino-Top Resources and Technologies
Ltd., which owns the exclusive exploration and mining rights to the property
as well as the exclusive exploration rights to eight other properties in the
same mining district.

    The comprehensive exploration work in 2006 was focused on the No. II Ore
Body and included a 1,900m trenching project, a 865m drilling project, a 187m
tunneling project, as well as geological and geochemical surveying. The
following are the latest assay results:

    
    Weighted Average Assay Results from Exploration of the No. II Ore Body

                         Sampling Position (m)           Assay Results
                  --------------------------------------------------------
       Project        From         To       Length    Ag (g/t)    Pb (%)
    ----------------------------------------------------------------------
    Drill ZK1-1           33.9       35.2        1.3        126       N/A
    ----------------------------------------------------------------------
    Drill ZK1-1           63.0       65.5        2.5         83       0.6
    ----------------------------------------------------------------------
    Drill ZK1-1           67.8      68.75       0.95        116       N/A
    ----------------------------------------------------------------------
                   Branch Tunnel CM1-1 at
    Tunnel PD8    18.75m into Main Tunnel        0.4        249      1.68
    ----------------------------------------------------------------------
    

    Silver Dragon has commissioned Ausenco International Pty Ltd of Brisbane,
Queensland, Australia to evaluate the current status under NI 43-101 compliant
standards and prepare a Project Development Plan which will outline the steps
for executing a Chinese Feasibility Study for obtaining permits and the NI
43-101 technical reports required for its Erbahuo Silver Mine Project.

    "Our achievement over the past year has not been limited to the latest
findings. While our current assay results at Erbahuo Silver Mine show
potential resources mainly consisting of oxides, we have also found sulfides
in greater depths with our tunneling project, revealing the potential for
finding major silver and multi-metal ores with further in-depth exploration.
In 2007, we intend to bring Erbahuo mine into full production while
intensifying our in-depth exploration efforts," stated Mr. Yang Guofu,
Sino-Top's Chief Geologist.

    About Silver Dragon

    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 the Erbahuo projects in Mexico and 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: Statements contained in this news release that are not historical
fact, such as statements regarding the economic prospects of the company's
projects, future plans or future revenues, future exploration plans and
prospects, timing of development or potential expansion or improvements, are
forward-looking statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from estimated results. Such risks and uncertainties include, but are not
limited to, the company's ability to raise sufficient capital to fund
development, changes in economic conditions or financial markets, changes in
prices for the company's mineral products or increases in input costs,
litigation, legislative, environmental and other judicial, regulatory,
political and competitive developments in China, technological and operational
difficulties or inability to obtain permits encountered in connection with
exploration and development activities, labour relations matters, and changing
foreign exchange rates, all of which are described more fully in the company's
filings with the Securities and Exchange Commission.




For further information:

For further information: Silver Dragon Resources Inc. Marc Hazout,
President, 416-223-8500 or Toll Fee: 1-866-512-SDRG (7374) Email:
info@silverdragonresources.com

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SILVER DRAGON RESOURCES INC.

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