Jun. 27, 2007  ?Asian Dragon Group Inc.'s<AADG> Fuding Mining Development Co. (FMDC) has acquired a 70% interest in Luanchuan Mozigou (MZG) Molybdenum Mine.

The MZG Molybdenum mine, located in Jiaohe Village of Luanchuan County, Henan Province, currently has an exploration license for a perimeter of 14.09 sq km by 4 sq km. The overburden is largely thin and bare on the surface, allowing projects of large-scale opencast mining to be carried out.

According to Asian Dragon's statement, after acquiring, upgrading and transporting a local 2000-ton-per-day iron mill, costing US$4 million, to the site, the company could be generating up to US$216,000 of total profits a day.

The region, which exhibits prolific molybdenum mineralization, is also home to the Luoyang Luanchuan Molybdenum Group Co. Ltd.'s (China Molybdenum)<3993> Sandaozhuang Mine. The 24-million-pound-per-year molybdenum mine is only 6 km away from the MZG Molybdenum Mine.

China Molybdenum is a single mine producer which recently completed its IPO to raise over US$900 million on the Hong Kong Stock Exchange. The Sandaozhuang Mine is one of the largest pure molybdenum mines worldwide.

Vancouver-based Asian Dragon focuses on developing mining properties in China through joint ventures with local Chinese partners. In May, the company had acquired FMDC, a Chinese base metal mining company, with access to properties containing molybdenum, vanadium, silver and lead.

Under the agreement, Asian Dragon would invest US$10 million and a pre-determined allotment of shares to Fuding within a year. An additional US$20 million is payable in the subsequent two years should Asian Dragon opt to increase the stake to 70%.