Perth, Feb 27, 2008 AEST (ABN Newswire) - Dragon Mountain Gold (ASX: DMG) received further positive results from its confirmation drilling program at the Zhao Gou and Ma Gou deposits within the Lixian Project in central-west China. The latest batch of drilling assays again confirms previous results and demonstrates the continuity and scale of gold mineralisation.

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In particular, Zhao Gou hole ZHG006DD followed up the previously reported intersection of 23.95m at 3.95 g/t Au in ZHG003DD with an intersection of 44.0m at 4.26 g/t Au. Both of these intercepts occur outside of mineralisation identified by previous workers.

The Ma Gou drilling program also intersected high grade intervals including in holes redrilled to test the main zone.

The drilling program is currently focused on confirming and extending the gold mineralisation outcrop at the Zhao Gou and Ma Gou gold deposits. These deposits are part of the widespread gold mineralisation outlined at the Lixian Project by the Gansu Non- Ferrous Metallurgical Bureau and which are described in detail in the Company's Prospectus.

The gold mineralisation is fine grained and found associated with pyrite and lesser arsenopyrite in a major shear system within sandstones and siltstones of the Qinling Fold Belt. Table 1 summarises the main mineralised intercepts encountered in the holes drilled at Zhao Gou and Ma Gou. Assay results were received from Intertek Laboratories at Beijing who used aqua regia analysis with fire assay checks.

The composited intercepts show significant intersections above a cut-off grade of 0.5 g/t Au, inclusive of internal sub-grade mineralisation of up to 2m. Within these intersections notable high grade sections are highlighted.

Assay results from Z5170D2 had been previously reported to 309m down hole where it ended in mineralisation. The outstanding assays have since been received and are reported here, extending the previously described intercept by 4m.

Drilling has resumed following the Chinese New Year break and abnormally bad winter conditions. Diamond drill rigs from the Sichuan Huafeng drilling company have resumed drilling and are currently achieving high meterage rates.

Australian Independent Diamond Drilling Company (AIDD) have mobilised to site and will commence drilling at the Jinshan deposit.

Contact

Andrew Richards
TEL: +61(0)42 3044879

Kevin Tomlinson
Chairman
TEL: +44 787 6344700


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