Red Dragon Resources Corp. (the "Company") is pleased to announce the following updates for the Company's Liaoning gold project located in northeastern China.

Diamond drill testing of the Dingtun prospect began in mid-August with two drills. The targets being tested are induced polarization chargeability anomalies which are associated with the known mineralization and geological targets from past trenching. These IP anomalies extend over two kilometers along strike from the area of previous limited underground workings. Gold mineralization is associated with pyritic quartz stockworks and veins. Previous trench sampling by the Company returned up to 2.99 grams/tonne gold over 7 metres.

To date one hole has been completed to a depth of 106 metres and the second is nearing completion at 104 metres. Pyritic quartz stockworks and quartz veins were intersected over 30 metres in the first hole and 50 metres in the second. These may not be true widths and assays have not yet been received. The initial program will involve drilling approximately ten holes, with further drilling dependent upon results.

Barry Price, P.Geo., is the Qualified Person pursuant to NI 43-101 and has recommended the initial drill program. Jim Cuttle, P.Geo, is the Qualified Person that is supervising the drill program and is responsible for establishing the sampling procedures and quality assurance.

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