TORONTO, March 15 - Dragon Capital Corporation ("Dragon") is pleased to announce that effective March 14, 2007 it completed the previously announced indirect acquisition of all of the issued and outstanding securities of Arehada Mining Corporation ("Arehada") together with a concurrent financing by way of private placement of $5,000,000 (the "Transaction"). Arehada is engaged in the exploration, development, extraction and refining of base metals in Dongwuzhumuqinqi, located in Inner Mongolia, China. The Transaction constituted the Qualifying Transaction of Dragon for the purposes of Policy 2.4 of the TSX Venture Exchange (the "TSXV").

The common shares of Dragon will commence trading on the Toronto Stock Exchange under the symbol "AHD" at the opening on Friday, March 16, 2007 at which time the common shares will be delisted from the TSXV.

Pro Forma Capitalization

Dragon issued an aggregate of 141,832,308 Dragon shares to the Arehada shareholders and an aggregate of 10,000,000 shares (forming part of the Units (defined below)) to purchasers in connection with the concurrent private placement. Following the completion of the Transaction, 161,692,308 shares are outstanding and 20,772,000 are reserved for issuance. The former Arehada shareholders own approximately 90.29% of the shares, while former Dragon shareholders and purchasers under the financing hold approximately 9.71% of the shares.

The Transaction was negotiated on an arm's length basis by parties dealing at arm's length and therefore was not a Non-Arm's Length Qualifying Transaction under the policies of the Exchange. As a result, no meeting of Dragon shareholders was required as a condition to the completion of the Transaction.

Concurrent Financing

Concurrent with the closing of the Transaction, Dragon issued and sold, through Standard Securities Capital Corporation and PowerOne Capital Markets Limited, as agents, 10,000,000 units (the "Units") by way of private placement at a price of $0.50 per Unit (the "Private Placement") for aggregate gross proceeds of $5,000,000.

Each Unit is comprised of (i) one common share and one common share purchase warrant (a "Warrant") with each such Warrant entitling the holder thereof to acquire one share at a price of $1.00 for a period of 24 months following the closing of the Private Placement.

Board of Directors

The board of directors of Dragon has accepted the resignations of Barry Polisuk and Lawrence Cyna from the board. Messrs. Zhen Wang and Fan Wang have joined the board of directors, filling the vacancies created by such resignations. Going forward, the board of Dragon will consist of the following individuals.

Fan Wang
Mr. Wang is the Chairman and Chief Executive Officer of the company. He is currently the Chairman and Chief Executive Officer of Baiyinhanshan Mining Ltd. based in Nei Mongol, China. In 2003, Mr. Wang received an MBA from the Beijing University.

Zhen Wang
Mr. Wang is the President and General Manager of Arehada and since 1998, he has acted as General Manager of Nei Mongol Baiyinhan Mountain Mining (Group) Corporation in Linxi County. In 2002, Mr. Wang received his MBA from Peking University in Beijing.

Peter Dimmell
Peter Dimmell's experience in mineral exploration has spanned more than 30 years. He started with Noranda Mining Corporation in Eastern Canada in 1969. Seventeen years later, he left the company to work as an exploration and technical consultant and director/officer with other mining companies. Guiding on-site operations from exploration through to production, Mr. Dimmell has been involved in all aspects of the industry, both in Canada and around the world. He has served on numerous boards for public companies and professional organizations and currently holds the title of President for the Prospectors and Developers Association of Canada. Mr. Dimmell earned his Bachelor of Science from the University of New Brunswick. Now living in St. John's he is a professional geoscientist registered with the Association of Professional Engineers and Geoscientists of Newfoundland.

Kak Fung Wong
Mr. Kak Fung Wong has been Vice Chairman and Director of China Youth Travel Group Investment Corporation since 1998. The Corporation has investment interests in gold mines, hotels and new technology companies. From 1996 to 1998, Mr. Wong was Chairman and CEO of China's Shenzhen Securities Corporation, a fully licensed investment dealer in China. Under Mr. Wong's leadership, the dealer successfully led a number of high profile IPO underwritings. From 1992 to 1998, Mr. Wong was president of Huaneng Finance Corporation, a subsidiary of Huaneng Power International (NYSE listed). Mr. Wong has served on the boards of numerous public companies that are listed on China's Shanghai and Shenzhen Stock Exchanges. Mr. Wong received a Masters Degree in International Finance from the Graduate School of Money and Banking, People's Bank of China in Beijing.

Business of Arehada

Arehada is engaged in the exploration, development, extraction and refining of base metals in Dongwuzhumuqinqi, located in Inner Mongolia, China. The ore being mined by Arehada is predominately zinc, lead, silver and indium. Arehada then processes the ore through its processing plant to produce zinc concentrate and lead concentrate, which is then sold to smelters in China.

Arehada is currently constructing a zinc smelter with a designed processing capacity of 100,000 tons per annum. The first phase of 50,000 tons per annum is currently under construction with an initial test run to commence in the second quarter of 2007.

Further information regarding the Transaction may be found in Dragon's filing statement on SEDAR at www.sedar.com.

For further information:
Oliver Xing
Chief Financial Officer
Dragon Capital Corporation
(416) 510-2991

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.