Asian Dragon Group Finalizes Negotiations For Major China Vanadium Project, Lushi Jiashapa Vanadium Mine With World Class Deposit Potential.

LUOYANG, China -- Asian Dragon Group Inc., (OTCBB: AADG) (FWB:P2J1) (WKN: A0KE7Z) is excited to announce its newly negotiated majority owned China Base Metal Development Company, Fuding Mining Development Limited has entered an acquisition Agreement for a 70% interest in Lushi Jiashapa (JSP) Vanadium Mine, located in area of Wenguxiang to Dashihe of Lushi County, Henan Province, China. The region exhibits prolific surface Coal containing Vanadium mineralization discovered only in 2005. Local village residents have been selectively mining rich pockets of coal in the area, as fuel for generations.

Asian Dragon will earn 51% of the newly formed Fuding by investing an initial US$10 million within 1 year and increasing to 70% by a further investment of US$20 million for a total of US$30 million within the next 3 years. This assertive move to base metals further displays Asian Dragon's focus on increasing shareholder value.

The JSP Vanadium Property contains a current Exploration License comprised of 8.3 km2 with an approximate 1km wide by 8 km long covered east-west trend ore body which extends over a 42 km area that sometimes widens up to 3 km wide. The overburden is mostly thin and bare on the surface which makes the project suitable for large-scale opencast mining with 3 exposed veins on the surface, each of which are 60m and 150m or wider and only a few hundred meters apart, indicating the potential of a consolidated ore body below surface. Current Chinese reports estimate the size of the Vanadium ore body deposit within the JSP Property above surface level at over 50,000 tonnes of Vanadium, while preliminary work projects confirm the whole ore body contains in excess of 2 million tones of Vanadium.

About Vanadium: Used in metal alloys, and important in the production of aerospace titanium alloys, as a catalyst for production of maleic anhydride and sulfuric acid, in dyes and mordants, as target material for X-rays. Russia and South Africa are the world's largest producers of Vanadium. Large reserves are also found in the U.S., Canada, and China. The management of Asian Dragon believes Vanadium is "the next" important strategic metal to be used in many new and improved products. The Chinese Government has already mandated small amounts of Vanadium to be added to every screw produced in China by 2010.

About Asian Dragon

Asian Dragon was established to focus on China's explosive precious and base metals reserves and markets and to become one of China's largest foreign metals producers through a series of joint ventures and mine and property acquisitions.

Long standing relationships with the Gold Bureau have provided Asian Dragon with the exclusive opportunity to commence due-diligence on several advanced Chinese Mining Projects in one of the Country's most well known and prolific mineral production regions, the Xiaoqinling Region.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.