Black Dragon Updates Status of Management Change.

OIL CITY, La. -- Clyde Smith, President of Black Dragon Resource Companies, Inc (BDGR: Pink Sheets), announced today that he has completed his initial survey of Black Dragon's properties and is confident that he will be able to increase the production of the Company's existing wells and intends to increase the number of wells in operation in the very near future including completing two new drilled wells in the next few weeks. He reported that he has received the cooperation of Joseph Lanza, the former President of the Company and all field personnel. Smith also announced that Frohling Associates, LLC continues to serve as Corporate and Securities Counsel to the Company.

Mr. Lanza stated that he was very pleased that Clyde Smith has taken over the Company's operations, as he has extensive field experience and an excellent handle on operations. He is providing the day-to-day leadership for the operations.

Mr. Smith has over 14 years experience in the oil and gas business. He was president and owner of an oil and gas operation company involved in leasing, drilling and reworking oil and gas wells in Mississippi, Louisiana, and Texas for independent and major oil companies. Mr. Smith was one of the first to successfully utilize satellite imaging to assist in the determination of drilling sites. Mr. Smith's career also includes 22 years in research and development with Monsanto Corporation. Mr. Kelsoe has forty years experience in process engineering and chemical manufacturing. He has worked in North America, Central America, and South America in the chemical manufacturing for the wood-treating, pulp and paper and down hole oil well solvents. He has engineered and constructed projects for International Paper Company, Beaverbrook Foundation (London) and other fortune 500 companies. He also holds many current US Patents for the manufacture of cellulose treatment processes and down hole solvents.

"I am extremely excited about the prospects of the Black Dragon properties and will make every attempt to regain shareholders confidence and increase share value," stated Mr. Smith, CEO of Black Dragon Resource Companies, Inc. Our new management team will immediately begin to execute our strategic plan of increasing current production, putting additional leases in production and exploring the potential of additional deeper pay zones.

The Board of Directors has approved of President Smith's plan whereby he has agreed, at his own expense, to complete two wells, one of which has been drilled and the second which has been sputted with drilling and completion expected to be accomplished within the next two weeks.

Mr. Smith has agreed to purchase Joseph Lanza's stock position and has committed to advance substantial additional funds to the Company to provide the capital needed to improve the Company's present production level and to expand the operations. No details of the financial arrangement between Messers Lanza and Smith were released nor has Mr. Smith stated when he will contribute any additional funds needed but agreed to complete the two new wells in progress and to fund any of the Company's future short falls, as needed. Mr. Lanza will remain a Director until Mr. Smith's commitments are fulfilled, but has resigned as President.

About Black Dragon Resource Companies, Inc.

(www.black-dragonoil.com) Black Dragon specializes in increasing the production of crude oil and natural gas from wells whose production amounts to 15 barrels of crude oil or less per day. The reduced production of these wells, a result of abandonment or plugging because of dropping prices of crude oil through the 1980s, represents a significant opportunity to capitalize on local resources, while lessening domestic dependence on foreign oil. Black Dragon continues to acquire wells in the oil-rich regions of Louisiana and Eastern Texas, augmenting its portfolio to over 400 operating oil wells.

Forward Looking Statements:

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.