Dragon Energy Ltd : | Dragon commences gold drilling programme at Carters Well

ASX ANOUNCEMENT

Gang Xu

Managing Director

Tel: +61 8 9322 6009

Mobile: +61 411 039 645

Gang Xu

Managing Director

Tim Williams

COO, Executive Director

Computershare Investor Services

Level 2, Reserve Bank Building

45 St George's Terrace

Perth WA 6000

www-au.computershare.com

Dragon Energy Ltd

Suite 8, 1297 Hay Street

West Perth, WA 6005

PO Box 1968, WA 6872

Dragon Energy Limited ("Dragon", ASX: DLE) is pleased to announce that it has commenced a 1,000 metre RC drill programme on its Carters Well Project located 30km south of Mount Magnet, in the Yilgarn Craton of the Midwest.
The programme is targeting a series of gold and slightly elevated coincident silver anomalies which were identified from Mobile Metal Ion (MMI) soil sampling conducted in 2011. These surface gold anomalies are up to 50 times background and strike NNE and are up to 3km in length.
The tenement overlies the Coolaloo Dome, a granite batholith having a prominently magnetic margin. The aeromagnetic data clearly defines this structure and may reflect the presence of a hematite-magnetite-quartz shear (BIF) adjacent to the contact, although there is limited outcrop due to transported cover. This type of structure has the potential to host gold and base metal mineralisation.
Dragon's Managing Director, Mr Gang Xu, stated that this gold drilling programme is an important step for the company.
"While the development of the Pilbara Iron Project remains the focus of the company, we will have no hesitation to drill test quality exploration targets. We are committed to pursuing new discoveries."
"The commencement of the Carters Well gold drilling programme marks the first step in testing our gold and base metal targets on Dragon's projects in the Midwest".
Drilling is expected to take 5 days with the assay results are expected to be available 3 weeks after drilling concludes.

Tel: +61 8 9322 6009

Fax: +61 8 9322 6128

www.dragonenergyltd.com

ABN: 38 119 992 175

Authorised by:
Gang Xu
Managing Director

A C N 1 1 9 9 9 2 1 7 5

Suite 8 1297 Hay Street, West Perth, Western Australia, 6005

T: (61-8) 9322 6009 F: (61-8) 9322 6128

ASX Release- Carters Well Project - Drilling to Commence

The Carters Well Project is located
30km south of Mount Magnet, adjacent to the Great Northern Highway, in the Yilgarn Craton of the Midwest.
MMI soil sampling conducted in 2011 identified four anomalous zones; most notably a 3km, NNE striking gold and coincident silver anomaly in the southeast area of the project which returned gold values up to 50 times above background. In the Mt Magnet district potential path finder elements also includes Cu and Zn (Parkinson Pit) and Pb (Stellar and Quasar Deposits), and such geochemical anomalies exist in the project area.

Dragon Energy Limited ("Dragon") listed on the Australian Securities Exchange (ASX) in February 2009 (ASX: DLE). Dragon's flagship projects are Rocklea and Nameless iron projects in the Pilbara with sizeable JORC Resources defined at both the Rocklea and Nameless Projects. Dragon Energy's portfolio of tenements has numerous multi-commodity targets, including Fe, Mn, Au, base metals and U in Western Australia.

The information in the report to which this statement is attached that relates to Exploration Results is based on information compiled by Mr Mark Hafer, who is a Member of The Australian Institute of Geoscientists. Mr Hafer is a full- time employee of the company. Mr Hafer has sufficient experience which is relevant to the style of mineralisation 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hafer consents to the inclusion in the report of the matters based on his information in the form and

context in which it appears.

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