Drake Gold Resources Inc. - Announces Decrease of Both Authorized and Outstanding Shares

Monday's press release announces a stock buyback and cancellation that was made possible with personal assets held by Chairman and Director Clayton Smith. With the use of his personal assets, Mr. Smith was able to negotiate the company's purchase of shares held by individuals who came by these shares as part of a deal with the previous corporate entity. This stands in stark contrast to other companies trading over the counter that often have little control of large blocks of stock and in turn see short price per share growth punctuated by long-term diminished value.

With the completion of the buyback of 70 million shares we have shown that we share the same perspective as that of our investors (because we are investors,) we want share price to continually improve over the long-term. As opposed to many other small companies that issue stock that diminishes value. Unfortunately they do this in an effort to make short-term gain at the expense of those who take a long-term position in these companies. These companies often point at phantom naked short sellers when the reality is that they have issued huge blocks of stock to promoters. These promoters in turn sell into a market populated with those who fall prey to these thin promotional tactics that are preformed many times to falsely inflate prices so these promoters can sell their holdings. Companies and their investors both become victims of the tactic. By sidestepping the need to exchange stock for promotional services provided by third parties who have none but the shortest term interests, we have eliminated much of the downward pressure that can brutalize share price.

We have done this not for some altruistic impulse but as part of a strategy that will provide both cash flow and higher share price for the company and its biggest shareholders. The largest of which is the company's chairmen Clayton Smith who went on to state. "I have put up my own assets to secure these shares as the culmination of a desire to build a lasting organization that can pay its principles and be a great long-term investment. I take great pride in what we have done in securing all non-friendly blocks of shares, devising a long-term strategy and securing a slate of projects that we believe will create a long lasting business that is unparalleled."