Silver Dragon Completes Erbahuo Mining License Transfer  

BEIJING - Silver Dragon Resources Inc. reported receipt of a new mining license for its 70%-owned Erbahuo silver mine, issued by the Department of Land & Resources, Inner Mongolia. The license has been transferred from the previous holder, Huaguan Industrial Corp. ("HIC"), a Chinese state-owned entity and Silver Dragon's joint venture partner, to Chifeng Silver Dragon Resources & Technologies, Ltd. ("Chifeng Silver"), a Sino-American joint venture. The mining license transfer process, which consummated in a change of the property title, constituted part of the permitting process for mine development and mill construction.

The Erbahuo mine is 70% owned by Silver Dragon and 30% by Chinese shareholders led by Huaguan Industrial Corp. ("HIC"), Silver Dragon's state-owned Chinese joint venture partner. According to the mining license, mineable ore types include silver, gold, and lead. A new business license has also been issued to Chifeng Silver by the local industrial and commercial administration, expanding Chifeng Silver's business scope to include silver mining and sales of mineral products.