Executive Summary

Drake Gold Resources’ focus is the development of a portfolio of precious and industrial metal mining projects for the benefit of its shareholders. Company executives are continually acquiring rights and leases to a multitude of projects.

Drake Gold Resources’ business is based on two simple facts,

* Precious and Industrial metals become more scarce with each passing year making their recovery increasingly lucrative.
* Formerly productive areas provide renewed profitability that are risk-managed opportunities for emerging mining companies.

Current projects have remained in focus as well. The company will use a specific set of formulation criteria in order to evaluate testing samples with an eye towards moving forward with bulk sampling. For those projects that meet this criteria the necessary steps will be followed resulting in eventual full-scale production. Those that fail to fulfill these predetermined specifications must be reevaluated with an eye towards dropping them altogether.

DKGR Formulation Criteria

* Identify specific projects showing merit. (Includes release information to the public)
* Begin initial exploration by performing grab samples and in-depth onsite investigation. (provide assays for public view)
* Consider feasibility as it relates to whether a bulk-sampling program is warranted.
* Bulk sampling would then be performed giving the company the best preliminary information for scaling up to production.
* Then the decision is made for the project to move into production. At this point we will also decide whether to find joint venture capital partners or to form a subsidiary that will then be subject to an initial public offering and finally distributed to DKGR shareholders in the form of a stock dividend.

Not performing each of these steps can too often lead to projects that under perform or fail to perform at all. Taking care to complete each step in the formulation is the first aspect of an exhaustive risk management program that results in the highest return for the company and its shareholders. Once the steps have been completed the risk management program will then require that an assessment of whether arrangements should be made to place the new project within a subsidiary or JV partnership, as described in step five of the DKGR Formulation Criteria.

Addressing this program of risk management in regard to the company’s substantial project acquisition and expansion plan was the motivation for the formation of the company’s newly augmented operations management team. A list of appropriate strategies will be considered including partnering with outside capital, whether they be through the aforementioned joint ventures or through a DKGR subsidiary. This will effectively expand the capacity of the organization while also limiting downside exposure.

Drake Gold Resources will also package certain projects, which do not fit with the company’s core business, within their own corporate structure. Funds raised through (both complimentary as well as non-core business) subsidiary IPO’s can be used to facilitate bringing these and other projects to fruition. This will essentially limit risk and provide capital for further project development, all of which will increase value for DKGR shareholders.