TORONTO, May 25 - Dragon Capital Corporation ("Dragon Capital"), a capital pool company, announces that, on May 25, 2006, it completed its initial public offering by issuing 5,860,000 common shares at a price of $0.25 per share, for gross proceeds to Dragon Capital of $1,465,000.

The common shares of Dragon Capital will be admitted for trading on the TSX Venture Exchange under the trading symbol "DGN.P" at opening of the market on May 29, 2006.

The net proceeds of the offering will be used to provide Dragon Capital with a minimum of funds with which to identify and evaluate assets or businesses, for acquisition with a view to completing a "Qualifying Transaction" under the capital pool company program of the TSX Venture Exchange.

Fraser Mackenzie Limited acted as lead agent for the initial public offering. In connection with the offering, Dragon Capital granted Fraser Mackenzie, as lead agent, an option to acquire 586,000 common shares at a price of $0.25 per share. The option may be exercised for a period of 18 months from the date of listing of the common shares on the TSX Venture Exchange.

At the closing of the initial public offering, Dragon Capital also granted incentive stock options to its four directors and one technical consultant to acquire a total of 986,000 common shares. The options may be exercised for a period of five years at a price of $0.25 per share.

At the closing of the offering, there were 9,860,000 common shares issued and outstanding in the capital of Dragon Capital, 4,156,600 of which, including 4,000,000 seed shares issued to the founders of Dragon Capital at $0.125 per share, were placed in escrow in accordance with the policies of the TSX Venture Exchange.

For further information:
Mr. Barry M. Polisuk
Director,
Dragon Capital Corporation
(416) 869-1234

Neither the TSXV or the TSX has in any way passed upon the merits of this press release and has neither approved nor disapproved the contents of this press release.