APPOINTMENT OF DIRECTOR

Dragon Mining Limited is pleased to announce the appointment of Professor Markku M�kel� as a non-executive director of the Board with immediate effect.

Prof.. M�kel� who majored in geology and mineralogy at the University of Helsinki in Finland has recently retired as a Director from the Geological Survey of Finland (GTK) where he was responsible for International Relations.

Prior to joining GTK in 1994, Prof. M�kel� spent six years as a Technical Manager and Alternate Director of the United Nations Revolving Fund for Natural Resources where he was responsible for project activities in a number of developing countries in Africa, Latin America and South East Asia.  He remains a member of the UN Committee on Energy and Natural Resources for Development.

Having completed his doctorate and spending a period at the Helsinki University of Technology he worked for ten years with Outokumpu Oy in various positions which culminated with the role of Manager, West Finland and as a member of the management group of the Exploration Department responsible for a staff of 30 exploration professionals.

Prof. M�kel�'s 35 years of professional experience from a wide variety of operational and administrative activities in the economic geological and mining sector will considerably strengthen the technical capability of the Board at a time when the success of exploration in Sweden and Finland for both additional reserves to extend mining operations and making new discoveries are important to the Company.

Chairman Andrew Daley said "We have been very fortunate in securing Professor M�kel�'s agreement to join the Dragon Mining board.  I am sure that his contribution will prove invaluable as the Company continues to develop its operations in Scandinavia and elsewhere."