Drill Results from the Shanchuan Project, China


    VANCOUVER, Oct. 22 /CNW/ - Red Dragon Resources Corp. (the "Company")
reports drill results from the first phase of drilling on the Shanchuan
Project in northern Yunnan Province, China. This project is under joint
venture with Yunnan Diqing Shanchuan Zinc Co. Ltd., a Chinese private company,
whose major shareholder is Yunnan Copper Ltd. The project is contiguous with
and north of the Company's Baoming Project.
    The first phase drill program consisted of 29 drill holes totaling 2,420
metres. These relatively short reconnaissance holes were designed to test four
separate prospects, three of which (Momihua, Nunohua, and Dadihua) had
previously been the focus of local mining. The fourth prospect (Wanghua) was
an area where sulphide float was identified during this summer's prospecting
program. A plan map and table containing the collar location, azimuth, dip and
length is available on the Company's website (www.reddragonresources.com).
    The prospects are located at the northern end of the project and occur
over a 1 kilometre distance; the prospects from north to south are briefly
described below.
    The Momihua prospect was tested by sixteen drill holes (1,330.5m) over a
strike length of 100 metres. Dolomite altered and brecciated limestone
intervals up to 70 metres were intersected in a number of drill holes on three
sections. The altered zone appears to strike north and dip moderately to the
east. Drill hole MMH0702 intersected 9 metres grading 7.4% zinc starting at
3.0 metres depth and MMH0710 intersected 3 metres grading 5.1% zinc starting
at 14.6 metres depth.
    The Nunohua prospect was tested by four drill holes (213.4m) that
intersected weak dolomite altered limestone, however no significant assays
were returned.
    The Wanghua prospect was tested by five drill holes (329.2m) to identify
the source of sulphide float samples located in a small creek drainage. Three
of the drill holes were terminated at shallow depths because of drilling
difficulties and two of the drill holes did not intersect significant
alteration or mineralization. The source of the sulphide float samples remains
    The Dadihua prospect was tested by four drill holes (547.1m) a short
distance ((less than)100m) below historic surface workings. Drill hole DDH0703
intersected 4.23m grading 58g/t silver, 11.0% lead and 1.9% zinc starting at
66.0 metres depth. The other drill holes intersected thick intervals (30m) of
dolomite altered and brecciated limestone with anomalous concentrations of
zinc ((less than)0.5%).
    Further evaluation of these results and the recently received geochemical
analysis from an extensive soil survey completed across the entire property
this summer will be undertaken prior to the next phase of drilling. A number
of coincident multi-element anomalies have been identified by the geochemical
program and crews are currently prospecting and mapping these anomalies to
identify drill targets.

    Baoming Project

    The Company has completed 8 drill holes (1,020m) since the start of the
drill program on September 20th. These initial drill holes were designed to
test a coincident lead and zinc soil anomaly that is north of and on strike to
the Baluo Prospect. The drill holes intersected thick intervals of dolomite
altered and brecciated limestone similar to nearby surface outcrops; assay
results are pending. The drill program is planned to continue through to the
end of the year.

    Laboratory Procedures

    Drill core samples were analyzed by International Plasma Labs Ltd. in
Kunming, China. Rock samples arriving at the laboratory in Kunming are sorted,
dried and crushed to -20 mesh. The sample is then reduced to a 250 gram charge
by repeated passes through a riffle splitter and then pulverized to 90%
passing -200 mesh. The sample is then rolled to assure a homogeneous particle
distribution and transferred to a bag for analysis. Total copper, lead and
zinc were analyzed by atomic absorption spectroscopy (AAS). Silver was
analyzed by fire assay with atomic absorption spectrometer (AAS) finish. Red
Dragon Resource Corp. has inserted quality control samples in addition to
quality control samples inserted by the laboratory.

    Red Dragon Resources Corp. is a mineral exploration company actively
involved in base metal and uranium exploration in China and Canada.

    On Behalf of the Board
    Red Dragon Resources Corp.

    Per: Alvin Jackson, Chairman and Chief Executive Officer

    The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements as set out in National
Instrument 43-101 and reviewed by Garnet Dawson, P.Geo., Vice President of
Exploration for Red Dragon Resources Corp.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of the
    information contained herein. The statements made in this press release
    may contain certain forward-looking statements that involve a number of
    risks and uncertainties. Actual events or results may differ from the
    Company's expectations.

For further information:

For further information: Red Dragon Resources Corp., Tel: (604) 602-8188
or Harbour Financial Inc., Brian N Barbour, Tel: (403) 813-5832

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