Silver Dragon Resources Completes Geological Report for Dadi Polymetallic Project, China

Silver Dragon Resources Inc. (OTCBB:SDRG) has announced that it has completed a geological report on the results from the 2010 drilling program at its award-winning Dadi Silver-Lead-Zinc Polymetallic project in Inner Mongolia, Northern China.

Highlights

• Extensive exploration work has been carried out during the 2010 season with the major focus on mineralization zones I and II. These zones show the most significant mineralization so far. Although mineralization zones (III, IV, and V) also show significant potential, they were not the focus of the 2010 season.
• Additional resource estimation based on the Chinese National Non-ferrous Metal Resource Estimation Standards indicates that mineralization zones I and II contain 3,375,000t ore with 358.4 metric tonnes (11.5 million ounces) silver;  42,621 metric tonnes (93.9 million pounds) lead, and 60,240 metric tonnes (132.8 million pounds)  zinc. These estimates are in addition to previous estimates disclosed in the Company's NI 43-101 released in Q1 2010.
• An associated element, cadmium, was found in the polymetallic ores. The cadmium resource could be of significant industrial and economic value.

Dadi Polymetallic Silver Property

Dadi is one of the six exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company that holds exclusive exploration rights to these properties, located in the prolific Erbahuo Silver District in Inner Mongolia, China.  Silver Dragon Resources Inc. has a 40% ownership interest in Sino-Top. The Dadi exploration area, covering 12.48 square kilometers, is located in the Mesozoic volcanic basin in Keshiketeng County, Inner Mongolia, China.

Geologically, the Dadi property is located in the south edge of the Daxinganling metallogenic belt and at the joint between the Daxinganling mountain chain (with north-east direction) and the Xilamulunhe structure belt which trends in an east-west direction.

An independent review of the Dadi property was completed in Q1-2010, with the results presented in a Technical Report prepared by Southampton Associates Inc. of Toronto, Canada (see press release of May 6, 2010).

The Company has retained Southampton Associates Inc. to revise its National Instrument 43-101 report on the Dadi Property, as well as to evaluate the viability of a central mill complex to process future production from the Dadi Polymetallic-silver Property and the Company's Laopandao Property.