VAMMALA

Dragon Mining announced quarterly gold production for 15,313 ounces at an average cash cost of US$635 per ounce. In addition results were received from diamond core drilling at the Orivesi Gold Mine, Finland including 4.95m @ 17.95 g/t gold from the 525m level at Sarvisuo and 19.30m @ 6.10 g/t gold between the 700m and 800m levels at Kutema Deeps. And also drilling of depth extension resumed at the Svartliden mine with results for 5 of the 9 holes returning 5.00m @ 8.67 g/t gold, 5.00m @ 12.85 g/t gold and 4.00m @ 12.11g/t gold.

Reported to have produced 9,729 ounces of gold from 47,486 tonnes of ore milled at a head grade of 7.3g/t. Mining was mainly from the Sarvisuo stopes between the 300m and 320m level and the first stope was extended to the 420m level in ore lode number two. A small amount of mining was also conducted at the Kutema area.

Advised that dewatering activities at the Mine have been suspended until at least May 2009 as a result of significant fall in nickel prices. Dewatering had commenced with the objective of assessing the condition of the decline and main production levels to determine the practicability of re-opening the Vammala mine to access the remaining ore and to explore for additional resource