Silver Dragon Resources Inc. Closes $3 Million Financing Agreement 

TORONTO, April 21, 2011 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (the "Company") (OTCBB: SDRG) today announced that it has closed a convertible financing agreement for $3 million over a three-year period with JMJ Financial.

The total planned funding amount will be $3,000,000, with payment consisting of $1,000,000 cash consideration through a convertible promissory note (initial note) and four $500,000 promissory notes (subsequent notes), secured & collateralized by JMJ Financial that are to be funded at and/or after the time of execution of each note.

The initial note provides a $1 million consideration in the form of cash payments to be made to Silver Dragon according to a funding schedule expiring 180 days after an effective registration statement covering the resale of the shares of common stock issuable upon conversion of the note, assuming certain share volume and prices are met.

The subsequent notes each provide $500,000 consideration, totaling $2,000,000, which are secured and collateralized by JMJ Financial, over the remainder of the three-year period.

The total face amount of the convertible notes issued to JMJ is $3,150,000, which represents $3,000,000 to be paid to the Company and includes other fees and expenses to be paid to JMJ Financial.

The Company plans to use proceeds from the financing to: (i) apply for a listing on a Canadian Stock Exchange; (ii) continue the exploration, development and resource conversion program presently under way at the Erbahuo silver properties in China; and (iii) for general corporate purposes.

The securities referenced in this press release have not been registered under the Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About JMJ Financial

JMJ Financial is a privately held investment company in the southern United States.