Red Dragon Resources Corp. (the "Company") is pleased to announce the initiation of a diamond core drilling program on the Shanchuan lead-zinc project in northern Yunnan Province, China. This project is under joint venture with Yunnan Diqing Shanchuan Zinc Co. Ltd., a company controlled by Yunnan Zinc, which is a wholly owned subsidiary of Yunnan Copper. The properties cover an area of 85 square kilometers and are contiguous with and north of the Company's Baoming Project.

Diamond drill testing will initially be in the Dadihua area where earlier trench results returned up to 8.6% zinc, 10.3% lead, and 78 grams per tonne silver over three metres (News Release 18/06, Sept. 21, 2006). An initial contract for 5,000 metres has been signed for the Shanchuan Project with further drilling dependent upon results.

An extensive surface soil sampling and mapping program has been undertaken on the project over the last couple of months and as these results are compiled additional targets are expected to be developed.

On the Baoming Project additional mapping, soil and stream sediment sampling have been completed over the last two months. It is anticipated that drilling will commence on this project shortly.