Black Dragon Announces Revenues for First Six Months of 2006; 400% Year to Year Growth.

AUSTIN, Texas -- Black Dragon Resource Companies, Inc. (OTCPK: BDGR)-today announced unaudited revenue results for the first six months of the calendar year 2006 ending on June 30, 2006. Revenues for the period were approximately $1,644,543 compared to $406,336 for the same period in 2005, or a 400% year to year increase, and a 450% increase in the second quarter from the same period in 2005.

Rick Michael, President of Black Dragon stated, "Our revenue results show that Black Dragon is experiencing rapid growth based on our previously announced acquisitions and our commitment of resources to bring these properties into production. During the quarter, we were able to raise over $900,000 of additional equity which we employed in purchasing and in bringing the companies Caddo Lakes and Hosston Field properties into production.

The Company's previously announced target of $4 million of revenues for the quarter ended June 30, 2006 was impacted by various unanticipated factors that delayed the bringing on line of certain of its properties. The $4 million had anticipated production during the quarter from the Haynesville Field which was offline for a period of time during the quarter due to an unexpected breakdown of its salt water disposal system that has subsequently been placed back into service. This Field is now in full production and is producing at the rate of 2,000 barrels of oil per month as had been expected.

A similar delay was encountered in closing the purchase of the shallow rights beneath Caddo Lake while counsel for both buyer and seller resolved outstanding issues with potential third party claimants. Black Dragon did not get credit for the production from those wells until after the closing. "The Caddo Lake property is now also in full production and is generating 2,000 barrels per month as originally anticipated. We expect to show additional progress and growth with both the Caddo Lakes and Hosston Field properties in the second half of the year," said Mr. Michael. "The Company is also connecting its recently acquired Arkana field gas wells to the sales line, will acquire new properties on a regular basis and will soon begin its drilling program on Caddo Lake. The Company continues to maintain its target of 30,000 barrels per month production rate by the end of 2006," added Mr. Michael. The revenue target for 2006 is now expected to be at an annual revenue run rate by the end of the calendar year of approximately $14 million in light of the delays experienced, as discussed above.

The Company expects the near term completion of its audit and all of the numbers outlined above are subject to such audit.

About Black Dragon:

Black Dragon Resource Companies, Inc. is oil and gas production company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.

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.