Southern Finland

Dragon Mining holds a portfolio of exploration tenements surrounding and within vicinity of the Orivesi Gold Mine.

From the mine, exploration drill holes have been designed to follow-up previously obtained intercepts and to locate new pipes in close proximity to the existing infrastructure. A result of 1.20 metres @ 7.81 g/t gold in drill hole KU-867 was one of the more encouraging intercepts, highlighting a narrow zone of mineralisation in an area previously untested, 200 metres north of the Kutema Lode System.

Orivesi Gold Mine Plan at the 300m Level

Though proximal to the Orivesi Gold Mine, exploration on the Orivesi Regional Claim holding remains at an early stage of systematic evaluation. An exploration program consisting of bedrock chip and basal till sampling was completed in 2008 across several prospects in this region.

Orivesi Regional Project Outline and Geological Setting

Results indicate that the more promising prospects appear to be Iso-Teerijärvi, Ruohosuo and Koukkujärvi, which display elevated copper, lead, zinc, silver and gold values from bedrock chips. A more detailed review of these results will be carried out, with view to undertaking follow-up geochemical and deeper drilling activities.

Data from historic diamond core holes drilled in the Orivesi region have been reviewed. This data is now being digitised to assist in the interpretation of the geology of this region.

Kaapelinkulma is Dragon’s most advanced exploration project in close proximity to the Vammala Production Centre, hosting an Indicated and Inferred resource of 161,000 tonnes grading 6.20g/t gold. Planning is now underway to undertake further drilling at Kaapelinkulma with view of increasing the existing resource base.

Mineralisation at Kaapelinkulma is associated with a north-northwest trending shear zone, which returned encouraging intercepts including recent results 4.55m @ 13.80 g/t gold, 4.00m @ 5.19 g/t gold and 9.95m @ 46.28 g/t gold.

Kaapelinkulma Drill Hole Cross Section

Following a review of exploration results, the excavation of trenches examining the northern extensions of known mineralisation was completed. Shallow percussion drilling of these trenches returned a best intercept of 4.00m @ 5.88 g/t gold. Some intercepts exceeding 2.00 g/t gold were also received from the northern part of the new trenches, which is located approximately 250 metres north of the Kaapelinkulma North area. Channel sampling within those trenches that contained over 1.00 g/t gold from shallow percussion drilling returned three results of significance including 1.05m @ 2.88 g/t gold, 0.40m @ 1.40 g/t gold and 1.85m @ 8.77 g/t gold. The latter result is located in a trench where a percussion drill sample contained 102.76 g/t gold.

Four new trenches were excavated at Kaapelinkulma during June 2009, returning from percussion drilling significant intercepts of 2.00 metres @ 1.89g/t gold and 4.00 metres @ 1.63g/t gold.

Known Mineralised Zones at Kaapelinkulma

The Ritakallio gold occurrence is located 5 kilometres east of the Jokisivu Gold Mine, within a structural and lithological setting similar to that as observed at Jokisivu.

Channel sampling of trenches and outcrops have returned encouraging intercepts of 1.20m @ 14.87 g/t gold and 2.40m @ 7.92 g/t gold and diamond core drilling programs have yielded modest returns including 3.65m @ 1.62 g/t gold.

Ritakallio Drill and Trench Results

Since the 1940s exploration has been conducted in the Tammijärvi area, on the eastern side of the Päijänne Lake, following the discovery of boulders rich in arsenopyrite and chalcopyrite and significant amounts of tin and tungsten.

In 2008, Dragon implemented a trenching and shallow percussion drilling program in this area, the location of the trenches based on historic till geochemistry, diamond drilling, and outcrop and boulder samples. The best result obtained from this program was 1.00m @ 5.8 g/t gold, whilst re-sampling of historic drill core returned a number of narrow intercepts above 1.00 g/t gold. Results have also been received for the heavy mineral samples collected from the Lepola Claim, returning low gold grades.

A detailed review of historic exploration data was conducted indicating that the area southwest of previous exploration work is considered to posses the best potential for gold, copper and tungsten mineralisation. Further testing of this area is warranted.