Reserves and Resources - Dragon Mining

Gold Reserves — 1 August 2009

Project	Classification	Tonnes	Grade (g/t Gold)	Ounces
SVARTLIDEN
Svartliden - Open Pit (1)	Proved	56,200	3.4	6,100
	Probable	320,700	3.9	40,200
	Total	376,900	3.8	46,300

Svartliden - Stockpiles (2)	Proved	46,900	4.0	6,000
	Probable
	Total	46,900	4.0	6,000

Total Svartliden Reserve Inventory		423,800	3.8	52,300

VAMMALA
Orivesi - Sarvisuo Lodes (3)	Proved
	Probable	127,300	7.6	31,100
	Total	127,300	7.6	31,100

Orivesi - Kutema Lodes (4)	Proved
	Probable	3,700	6.6	800
	Total	3,700	6.6	800

Jokisivu - Kujankallio (5)	Proved	56,000	5.3	9,500
	Probable	33,500	4.9	5,300
	Total	89,500	5.2	14,800

Total Orivesi Reserve Inventory		220,500	6.6	46,700

Group Total	Proved	159,100	4.2	21,600
	Probable	485,200	5.0	77,400
	Total	644,300	4.8	99,000

(1-2)

The grade estimates provided in the Mineral Resource model incorporates dilution and ore loss for the appropriate selective mining unit (SMU) size for open pit mining equipment and no additional dilution was added. Ore loss was set at 7% in line with reconciliation figures. Metallurgical recoveries average 92%, with ore processed through a 300kt/yr CIL plant. The Ore Reserves that have been declared are based on a gold price of US$900/oz and a gold cut-off grade of 1.8g/t gold.

(5)	Dilution was set at 28% and ore loss at 10%. Metallurgical recoveries average 85% from test work, with ore to be processed through a 200kt/yr Flotation plant. The Ore Reserves that have been declared are based on a gold price of US$900/oz and a gold cut-off grade of 2g/t.

(1 and 2)

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

(3 and 4-5)

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Gold Resources — 1 August 2009 (Inclusive of Reserves)

Project	Classification	Tonnes	Grade (g/t Gold)	Ounces
SVARTLIDEN
Svartliden - Near Surface (1)	Measured	124,800	3.1	12,400
	Indicated	611,500	3.2	63,700
	Inferred	57,200	1.9	3,400
	Total	793,500	3.1	79,500

Svartliden - Depth Extensions (2)	Measured
	Indicated	259,000	7.2	59,700
	Inferred	53,000	6.8	11,700
	Total	312,000	7.1	71,400

Svartliden — Stockpiles (3)	Measured	46,900	4.0	6,100
	Indicated	254,100	1.8	14,900
	Total	301,000	2.2	21,000

Svartliden Total	Measured	171,700	3.3	18,500
	Indicated	1,124,600	3.8	138,300
	Inferred	110,200	4.2	15,100
	Total	1,406,500	3.8	171,900

Orivesi - Kutema Pillars (4)	Measured
	Indicated	71,300	3.0	6,900
	Total	71,300	3.0	6,900

Orivesi — Kutema Deeps (5)	Indicated	310,400	5.1	50,800
	Inferred	515,000	6.0	100,100
	Total	825,400	5.7	150,900

Orivesi — Sarvisuo Lodes (6)	Measured	79,500	6.9	17,600
	Indicated	180,000	6.0	34,700
-280 to 380 m Levels	Inferred	54,600	7.2	12,600
	Total	314,100	6.4	64,900

Jokisivu - Kujankallio (7)	Measured	88,000	6.5	18,300
	Indicated	303,000	5.5	53,300
	Inferred	687,000	6.6	146,700
	Total	1,077,000	6.3	218,300

Jokisivu - Arpola (8)	Indicated	354,000	6.3	71,700
	Inferred	136,000	8.0	35,000
	Total	490,000	6.8	106,700

Kaapelinkulma (9)	Indicated	78,000	8.4	21,000
	Inferred	83,000	4.1	10,900
	Total	161,000	6.2	31,900

Vammala Total	Measured	167,500	6.7	35,900
	Indicated	1,296,700	5.7	238,500
	Inferred	1,475,600	6.4	305,300
	Total	2,939,800	6.1	579,700

KUUSAMO
Juomasuo (10)	Inferred	779,000	4.2	105,200
	Total	779,000	4.2	105,200

Hangaslampi (11)	Inferred	176,000	6.0	34,000
	Total	176,000	6.0	34,000

Pohjasvaara (12)	Inferred	82,000	3.2	8,400
	Total	82,000	3.2	8,400

Meurastuksenaho (13)	Inferred	284,000	2.3	21,000
	Total	284,000	2.3	21,000

Sivakkaharju (14)	Inferred	28,000	11.3	10,200
	Total	28,000	11.3	10,200

Kuusamo Total	Inferred	1,349,000	4.1	178,800
	Total	1,349,000	4.1	178,800

Total - Nordic	Measured	339,200	5.0	54,400
	Indicated	2,421,300	4.8	376,800
	Inferred	2,934,800	5.3	499,200
	Total	5,695,300	5.1	930,400

Zara JV - DRA 20%
Koka (15) 0 to 150 m	Inferred	490,000	4.9	77,000
	Total	6,100,000	3.2	620,000

Koka < 150 m	Inferred	490,000	4.9	77,000
Total	900,000	5.1	140,000

Zara JV Total
Koka	Inferred	490,000	4.9	77,000
	Total	5,040,000	5.8	944,000

Group Total*	Measured	339,200	5.0	54,400
	Indicated	3,331,300	5.1	550,200
	Inferred	3,032,800	5.3	514,600
	Total	6,703,300	5.2	1,119,200

* Group Total includes 20% of the Zara JV Total

Notes
(1)	Svartliden In-situ Mineral Resource reported above a nominal 1.3 g/t gold lower cut of grade. MIK derived SMU model estimates using a 12.5mE x 5mN x 2.5mRL SMU dimension to emulate open pit mining selectivity. Gold grade tonnage distributions are subdivided by JORC resource categories.
(2)	Gold Tonnage Distributions subdivided by JORC Categories; Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 2g/t gold cut-off and a minimum down hole length of 2 metres. Block dimensions used in the model were 2m NS x 10m EW x 10 m Vertical. A high grade cut of 70g/t was utilised.
(3)	Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 5mN x 10mRL Block Dimensions; Reported at a 3.0 g/t Au Cut Off. A minimum down hole width of two metres was used. The resource is reported using high grade cuts 80 g/t Au for Lode 1 and 110 g/t Au for Lode 2 (Main Lode).
(4)	Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 5mN x 10mRL Block Dimensions; Reported at a 3.0 g/t Au Cut Off. A minimum down hole width of two metres was used. The resource is reported using high grade cuts 80 g/t Au for Lode 1 and 110 g/t Au for Lode 2 (Main Lode).
(5)	Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 5mN x 10mRL Block Dimensions; Reported at a 3.0 g/t Au Cut Off. A minimum down hole width of two metres was used. The resource is reported using high grade cut of 70 g/t gold.
(6)	Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 2mE x 5mN x 5mRL Block Dimensions; Reported at a 2.0 g/t Au Cut Off. The resource is reported using high grade cut of 50-90 g/t gold.
(7)	Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 1mN x 10mRL Block Dimensions; Reported at a 2.0 g/t Au Cut Off. The resource is reported using high grade cut of 50 g/t gold.
(8)	Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 2mN x 5mRL Block Dimensions; Reported at a 1.0 g/t Au Cut Off. The resource is reported using high grade cut of 20-60 g/t gold.
(9)	Juomasuo mineral resource estimate by Outokumpu Mining Services. Ordinary Kriging estimate using 5mE x 2.5mN x 12mRL Block Dimensions. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co %) cut-off. A minimum down hole width of two metres was used. The resource is reported using high grade cut of 33 g/t gold, the cut made prior to calculation of AuEq. Tonnage Distributions subdivided by JORC Categories.
(10)	Hangaslampi mineral resource estimate by Outokumpu Mining Services. Ordinary Kriging estimate using 3mE x 3mN x 4mRL Block Dimensions. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co %) cut-off. A minimum down hole width of two metres was used. The resource is reported using high grade cut of 33 g/t gold, the cut made prior to calculation of AuEq. Tonnage Distributions subdivided by JORC Categories.
(11)	Mineral resource estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 10 g/t gold. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co % + Cu %) cut-off. Tonnage Distributions subdivided by JORC Categories.
(12)	Mineral resource estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 10 g/t gold. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co % + Cu %) cut-off. Tonnage Distributions subdivided by JORC Categories.
(13)	Mineral resource estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 14 g/t gold. Reported at 3 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co% + 2 * Cu %). Tonnage Distributions subdivided by JORC Categories.
(14)	Mineral resources estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 21 g/t gold. Reported at 3 g/t gold cut-off. Tonnage Distributions subdivided by JORC Categories.
(15)	Koka In-situ Mineral Resource reported above a nominal 1.2 g/t gold lower cut of grade. MIK derived SMU model estimates using a nominal 5mE x 10mN x 5mRL SMU dimension to emulate assumed open pit mining selectivity. Bulk density of 2.73t/m³ has been applied to mineralised zones. Gold grade tonnage distributions are subdivided by JORC resource categories. Depletion is to the natural surface, with no mining assumed to date. The reported resource is otherwise unconstrained but limited by depth of drilling and model extents.

(1)	This Mineral Resource Statement has been compiled in accordance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition). All information in this Statement which relates to Mineral Resources is based on, and accurately reflects reports prepared by the persons named below. All of the persons listed are Members of the Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists and have the necessary experience relevant to the style of mineralisation, the type of deposit and the activity undertaken to qualify as a ‘Competent Person’ under the JORC Code, 2004. Svartliden Drill hole Database and Geology – Neale Edwards, Chief Geologist, Dragon Mining Limited Svartliden Resource Estimate - Ingvar Kirchner, Manager Resource Geology, West Perth, Coffey Mining Ltd Each of the Competent Persons has given their consent for the inclusion of the material in the form and context in which it appears.
(3, 16)	The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(2, 4 to 7, and 9)	The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Paul Payne BAppSc, a Member of the Australian Institute of Mining and Metallurgy, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Paul Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(8)	The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Ms Ivy Chen Bsc (Hons) in 2005. Ms Ivy Chen, a Member of the Australian Institute of Mining and Metallurgy, was then a full time employee of Maxwell Geoservices Pty Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. The Arpola Mineral Resource remains unchanged since that date. Maxwell Geoservices Pty Ltd has verified the form and context in which the information regarding the Arpola Mineral Resource has been used and considers it to be consistent with the original work undertaken in 2005.
(10 to 11)	The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Esa Sandberg, formerly of Outokumpu Mining Services. The Juomasu and Hangaslampi Mineral Resources has remained unchanged since estimation. Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen have verified the form and context in which the information regarding the Juomasu and Hangaslampi Mineral Resources have been used and consider it to be consistent with the original work undertaken.
(12 to 14)	The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Jarmo Lahtinen and Rauno Hugg both formerly of Outokumpu Finnmines. The Pohjasvaara, Meurastuksenaho and Sivakkaharju Mineral Resources has remained unchanged since estimation. Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen have verified the form and context in which the information regarding the Pohjasvaara, Meurastuksenaho and Sivakkaharju Mineral Resources have been used and consider it to be consistent with the original work undertaken.
(15)	The information in this report that relates to the Mineral Resource is based on information compiled by Brian Wolfe, who is a Member of the Australasian Institute of Mining and Metallurgy. Brian Wolfe is an employee of Coffey Mining Ltd. Brian Wolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and for the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, mineral Resources and Ore Reserves – The JORC Code”. Brian Wolfe consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Resources - Other Metals - 1 August 2009

Project	Classification	Tonnes	Nickel  (%)	Copper (%)	Nickel (t)	Copper (t)
VAMMALA
Stormi (1)	Inferred	1,600,200	0.40	0.30	7,000	4,600
	Total	1,600,200	0.40	0.30	7,000	4,600

Ekojoki (2)	Inferred	1,095,900	0.50	0.40	5,600	4,600
	Total	1,095,900	0.50	0.40	5,600	4,600

Vammala Total	Inferred	2,696,100	0.47	0.34	12,600	9,200
	Total	2,696,100	0.47	0.34	12,600	9,200

KUHMO JV
Vaara (3)	Indicated	2,432,000	0.37	0.03	9,000	700
	Inferred	3,694,000	0.33	0.02	12,200	700
	Total	6,126,000	0.35	0.03	21,200	1,400

Peura-aho (4)	Indicated	371,000	0.42	0.20	1,600	700
	Inferred	171,000	0.44	0.23	700	400
	Total	542,000	0.43	0.21	2,300	1,100

Hietaharju (5)	Indicated	413,000	0.56	0.31	2,300	1,300
	Inferred	590,000	0.38	0.19	2,200	1,100
	Total	1,095,900	0.45	0.24	4,500	2,400

Kuhmo JV Total	Indicated	3,216,000	0.40	0.09	12,900	2,700
	Inferred	4,455,000	0.34	0.05	15,200	2,200
	Total	7,671,000	0.37	0.07	28,100	4,900

Group Total	Indicated	160,800	0.40	0.09	645	135
	Inferred	2,918,850	0.46	0.32	13,360	9,310
	Total	3,079,650	0.46	0.31	14,005	9,445

(1)	Tonnage distributions subdivided by JORC Categories, ID2 estimate using 10mE x 10mN x 10mRL block dimensions and a minimum downhole width of approximately two metres.
(2)	Tonnage distributions subdivided by JORC Categories, ID2 estimate using 10mE x 10mN x 10mRL block dimensions and a minimum downhole width of approximately two metres.
(3 to 5)	The Resources are reported above a nicjkel equivalent (NiEq) cut-off of 0.3%. Nickel equivalent was estimated by Snowden mining Industry Consultants using the following formula – NiEq = Ni% = (Cu % * 0.2) + (Co % * 2,727) + (((Pd g/t * 523,636) + (Pt g/t * 232,727) + (Au g/t * 1,221,818))/1000). All three resources were estimated using Ordinary Kriging. Estimated block sizes were 25mN x 20mE x 10mRL. Classification has been carried out according to JORC Guidelines.

(1 & 2)

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Paul Payne BAppSc, a Member of the Australian Institute of Mining and Metallurgy, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Paul Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

(3 to 5)

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information as lodged with the ASX on August 22, 2006 by Vulcan Resources Limited “Vulcan’s First Nickel Estimate Contains 30,000t Nickel and 120,000 ounces Platinum and Palladium” and “Annoucement Ammendment – First Nickel Estimate”. These resources have been reported according to the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (2004 JORC Code). The Resource estimates were supervised and have been authorised by Ian Glacken, FAusImMM (CP), CEng, who is a Fellow of the Australian Institute of Mining and Metallurgy and who has over five years experience in the mining, interpretation and estimation of nickel sulphide deposits. Mr Glacken consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.