Press Releases

Perth, Aug 17, 2011 (ABN Newswire) - As reported in the June Quarterly Report, Dragon Energy Limited (ASX:DLE) made an in principle decision to pursue rapid development of its Pilbara Iron Project (the "Project"). To progress this initiative, Dragon is pleased to announce the appointment of GHD Pty Ltd ("GHD") as lead consultant for the scoping study of the Project. This study is expected to be completed in late September and will examine Dragon's options for developing the Project. The scoping study will take into consideration Dragon's objectives, specifically:

- Early development with emphasis on speed to market; and

- Maximise self-determination for transportation infrastructure.

Dragon selected GHD after reviewing proposals from five competing consulting groups. Commenting on this appointment, Dragon's Managing Director, Mr Gang Xu said: "Dragon is very pleased to engage the services of GHD, a highly reputable engineering group, to conduct the scoping study on our flagship Pilbara Iron Project."

About the Pilbara Iron Project

Dragon's Pilbara Iron Project consists of two advanced iron ore exploration projects (Rocklea and Nameless) located in Central Pilbara.

The projects are in close vicinity to Rio Tinto's (ASX:RIO) Tom Price and Paraburdoo mines.

Both Rocklea and Nameless host channel iron style mineralisation, which is typically found and mined in Western Pilbara. Drilling by the previous owner defined the iron ore mineralisation on both projects.

At Rocklea, the current JORC inferred Resource is 63.1Mt @ 53.4% Fe (60.4% caFe). At Nameless, Dragon defined an exploration target of 140-190Mt @ 48-52% Fe (54-56% caFe). Dragon is about to launch its own drilling programmes aiming to increase the confidence level of the Resource at Rocklea, and to delineate a maiden resource at Nameless.

The Project is located within major public and private transportation infrastructure corridors. As part of the scoping study, Dragon will determine the most suitable transportation solution consistent with its stated objectives.

About GHD

GHD is one of the world's leading engineering, architecture and environmental consulting companies. Established in 1928, GHD employs more than 6,000 people across five continents and serves clients in the global markets of energy and resources, water, environment, property and buildings, and transportation.

Wholly-owned by its people, GHD is focused on client success. GHD's global network of engineers, architects, planners, scientists, project managers and economists collaborate to deliver sustainable outcomes for its clients and the community.

For the complete Dragon Energy Limited announcement including figures and tables, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/69019-ASX-DLE-553484.pdf

Contact

Gang Xu Managing Director Tel: +61-8-9322-6009 Mob: +61-411-039-645 http://www.dragonenergyltd.com/