Eastern Finland

The Kuusamo area hosts a number of known gold-cobalt occurrences, the most significant of which is the 100,000 ounce Juomasuo gold deposit. Located in north eastern Finland, Kuusamo is sited in the Proterozoic Kuusamo Schist Belt. This Belt consists of a volcano-sedimentary package that has been folded into a series of anticlinal structures, the Käylä area being the most prospective identified to date. Recent work has shown that the mineralised structures appear to be near vertical type lodes and because of this may have significant depth extensions, which to date have not been fully evaluated by drill testing.

Kuusamo Gold-Cobalt Project Geological Setting

Selected drill core from the Hangaslampi area was re-examined during October and November 2008. Assay results have now been received for all 468 samples collected from 9 historical drill holes. The samples from drill hole R398 returned the highest gold content of 1.50m @ 1.3 g/t gold from 60.10m. In the other drill holes gold content was mostly under detection limit (<0.2ppm). The highest uranium content obtained was 5.79ppm.

Dragon retains a 5% free carried interest in the Kuhmo Nickel Joint Venture, managed by ASX listed Vulcan Resources Limited (95%). The joint Venture’s entire holding is located within the 150 kilometres long Kuhmo-Suomussalmi Greenstone Belt, an Archaean belt which is analogous to the greenstone belts found in the Yilgarn Block in Western Australia.

Independent consultants, Snowden Mining Consultants calculated a global mineral resource estimate on shallow open pittable nickel sulphide mineralisation at the Vaara, Peura-aho and Hietaharju deposits during late 2006. The resources above a nickel equivalent grade of 0.3% nickel total 7.6 million tonnes grading 0.4% nickel, 0.1% copper, 0.3 g/t palladium and 0.2 g/t platinum.