Drake Gold Resources: Company Update

Some questions have arisen about our disclosure statement. The following section in particular:

The Company does not operate, or own, or have the present intention to operate or own a mine, plant or other significant property for carrying out its business plan for mining operations.

A number of individuals have singled out this section and have read into it that Drake Gold Resources has no intention of developing its projects. This could not be further from the truth. The above portion of the disclosure statement simply points out that the company will be leasing land and then will make arrangements for mining, most likely contracting the work or aspects of it. This is simply a legal clarification of the nature of how this undertaking will be structured so that there is not a misunderstanding when statements are made referring to projects, i.e. our project does not mean we own the land only or that we have a right to the minerals extracted from it. We do not want to give the impression that the company owns the land, even if it does have the right to earn revenues from it. This is done mostly so that no one believes we could profit from the sale of these lands but only the leases.

We also wanted to point out that as of November, Chairman and Director Clayton Smith has not been involved with any other businesses other than that of Drake Gold Resources. He has not been involved in any of the research required for Clayton’s Corner or any of the other newsletters other than those related to Drake Gold Resources. The continuation of any newsletters outside those related to DKGR is performed with the assistance of others for the sake of the subscriber base and its maintenance.

We also want to give our best to John Cerenzia as he has left the company for personal reasons. He has done an exemplary job in his contributions to DKGR and has given us a great deal of value. This has been in the form of both expertise and wisdom that we carry forward into all of our present and future dealings.

Drake Gold Resources Announces Significant Gold Discoveries in Georgia

We see the Richard Claus estimates as our conservative baseline. He limited the samples to a bit over 44 acres and gave us figures that were not only encouraging but a starting point from which we could provide a rationale for moving forward. We look at the amount of gold Claus estimates and we can translate 1.3 grams to approximately .05 ounces. When the minimum per ton target for profitability is .01 ounces the decision becomes clear. Moving forward when we have a project that is projected to be 500% more productive than the minimum is still a very good idea.

We expect though the truth lies somewhere north of the 1.3 grams. Not that we couldn't be more than successful with recovering 54,000 ounces from the initial 44 acres but we are aiming higher. With our Gault Group samples as well as internal samples taken by our geologist Dr. McLemore coming in at between 10 and 15 grams per ton, we would come in a bit conservative with our high-end projections aiming at the 10 gram/540,000 ounces it would yield.

These numbers provide clarity to the decisions we have made so far. The decisions Drake Gold Resources has made are based on our in-house regional expertise. Both our local prospector and former Georgia State Geologist bring extensive knowledge and connections to the table. We have built this knowledge base, with deep ties in the area, so that we could ensure that we could side step complications. Our assets on the ground in the Southeastern United States hold in common with our shareholders an interest in maximizing the profitability of these projects. With the help of both Jan Yarrington and William McLemore PhD, Drake Gold Resources is moving forward with a project that has valuable implications for all of our shareholders.