Black Dragon's December Oil Production Reaches Record Levels; Fourth Quarter Net Income Expected to Exceed Combined Level for First Nine Months of the Year.

AUSTIN, Texas -- Black Dragon Resource Companies, Inc. (OTC: BDGR) announced today that production for the month of December will exceed 5,000 barrels of oil, the highest level in the Company's history.Black Dragon reached production in excess of 5000 barrels today. As a result of reaching this goal, the Company expects fourth quarter net income will exceed the combined earnings for the Company for the first nine months of fiscal 2005.

"We are pleased that we were able to reach record production levels, despite losing several days due to the holidays," said Rick Michael, Black Dragon's President. "The success in the month of December represents the culmination of our year-long efforts, which have seen us acquire interests in 1,087 wells. Of these wells, only 285 are currently producing, giving us significant upside potential. Our goal in 2006 is to get all 1,087 wells producing at three quarters to one barrel a day. Our existing production will also support many of our growth initiatives, including completing the purchase of minerals in the lake which will enable us to commence a major drilling campaign. We will also seek to grow during 2006 through acquisitions, as we have targeted operators producing in excess of 150 barrels a day. We believe that through existing production, along with an aggressive drilling program and complimentary acquisitions that we can reach a production level of 30,000 barrels per month by the end of next year.

Black Dragon is focused on the recovery of oil and gas reserves through acquisition and project development, specializing in mature and marginal field enhancement, developmental exploitation drilling and low-risk exploration opportunities in the Texas and Louisiana regions.

Forward-Looking Statements 

Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.