INTERVIEW WITH ANDREW RICHARDS, MANAGING DIRECTOR OF DRAGON MOUNTAIN GOLD LIMITED (DMG)

“Drilling Delivers Positive Assay Results”

http://www.brr.com.au/event/51535

TUESDAY, SEPTEMBER 16, 2008, 09:00 AM.

            BRR    Good afternoon and welcome to Boardroom Radio. Today, we’re speaking with Mr. Andrew Richards, Managing Director of Dragon Mountain Gold.

10                    Thanks for joining us today, Andrew.

            DMG    Oh Eddie, I’m pleased to be here.

            BRR    Andrew, we see that today you’ve released a very significant announcement with returning some fantastic drilling results from your Lixian Project in China.

15                    Could you give us some update on these results?

            DMG    Yes, certainly Eddie. Look, we’re very pleased these are -- we’re catching with our backlog with some of our assays that has caused -- have been in the lab for a while and these are the latest results that have come through, there are more that are being checked at the moment, but we’re very, very pleased

20                    with these, they just keep adding confirmation of much as the size and scale and grade of this deposit, but the fact that within the resource we announced recently, the last two drill holes we released here were also the last three drill holes results here, really emphasize and support the significant high grade component that we’re seeing within that resource and which is open to the

25                    eastern margin.

                        The one in particular we did obviously focused on because it’s the great result is the 172 m at 3 g, that also contained some very high grade within it, 68 m over 6 g. It also supports other -- some very significant results that we’ve

30                    announced previously which is the 116 m at 4 g and 57 m at 6 g, 43 m at 4 g, just some great results from what is turning into a very, very good deposit.

                        Now, these are, as I’ve said, recently drilled and they were not included in the calculation for the JORC Resource that was announced in June and that was

35                    a total 1.1 million ounces within that Inferred mineral resource. So again, what we’re seeing here is not just a confirmation of the size and scale, but also increasing confidence in terms of going from Inferred to Indicated and having some high-grade components to the overall grade.

40        BRR    And Andrew, how is the overall progress of this resource currently going?

            DMG    Very well. It’s been very hard and I sympathize with our shareholders in terms of the current market situation, but I have to reiterate the fundamental sign evident that we’re doing on site significantly confirms what we have in terms of the deposit, we’re moving forward with our mining, our last application, our

45                    first has been a mining area demarcation application which in channel is the first step towards the ML, that’s progressing through the approval system and we’re having the usual discussions on that as we go to the system, but nothing else has really changed to adverse effect to fundamentals. We now have a sizeable resource which we would like to have increase significantly. I think, we will do something towards that this year given the current kilometre and where we are at, we’re actually in a position that where we can reduce a number of rigs to continue our resource extension and exploration, but we just actually can now come into terms with getting into development so we’re

5                      just having a bit of a natural hiatus here as we study our results and what it really means before we launch into the next phase of drilling and resource definition.

            BRR    Andrew, you spoke a little bit there that’s been well publicised that the market

10                    is a bit tougher at the moment such as for the resources. I guess how does Dragon Mountain see itself positioned and where do they see themselves moving forward?

            DMG    Look, I don’t think anybody would deny that the market is now, we’re in a terrible situation and it just is a more of a perception as well. I guess, it

15                    depends what is your view of gold is going forward. I think we are extremely well placed having fundamental asset as being so (inaudible) (00:03:40) and so strong. All the preliminary work we’re doing in the mining suggest that the cost here will be quite low and the throughput including eventually mill we end up with will be quite substantial as well. But right now the current market is

20                    causing everyone concern. I don’t think they will doubt that we have a project and a good company half but there’s some nervousness that prevail the whole market, and we’re not the only ones that have been impacted by this. It will certainly have an impact from an inherent company’s valuation. And I think previously, the classic example of that – difference with our value and

25                    our market cap. I think if you look at any recent transactions done in China or elsewhere, I would suggest that our resource and our basic assets would be worth far more than our market cap at the moment, but we’re not alone in that. I think if you look at a lot of companies in the market, everyone is on the same boat. And I think for many companies, it’s going to be quite difficult for

30                    them going forward in terms of raising funds and develop new projects.

            BRR    Andrew, we thank you for your time today and congratulations on the good results and hopefully, we speak to you soon.

            DMG    Well, hopefully we speak to you very soon, yes. There are a lot of things

35                    happening up there. We’re very proud of the project and the way it’s developing. We’re very happy with that.

            BRR    That was Mr. Andrew Richards, Managing Director of Dragon Mountain Gold. If you have any questions about this broadcast or any other broadcast, please

40                    feel free to contact us on brr@brr.com.au. I’m Eddie Saade and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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