Dragon Capital report on current status of operations

TORONTO, April 12 - Dragon Capital Corporation ("Dragon Capital" or "the Company"), (TSX: AHD) (the "Company") reported today on the current status and planned activities of Arehada Mining Corporation, its 100% indirectly owned subsidiary based in Inner Mongolia, China.

Arehada Mining Corporation has three distinct divisions of business and assets: mining and processing division, zinc smelter division, and exploration division. Arehada currently has 550 full time employees in the mining and processing division, 213 employees in the smelter division and 12 employees in the exploration division.

Production

Arehada currently operates a brand new 1,500 tonnes per day (t/d) mining and processing facility, to produce zinc concentrate and lead concentrate. Silver and indium are credited with lead concentrates.

The mining and processing pilot division commenced in July 2006 and has been profitable. The mining division is forecasted to generate significant after tax income for the fiscal year 2007.

The operating mining and processing facilities include:

- underground mine accessed by three vertical shafts and one inclined shaft;

- mine facilities including hoist room, compressor house, ore transport system;

- tailings pond facility with water reclamation system;

- service facilities including heating plant, coal/fuel storage, maintenance shop and assay laboratory;

- personnel facilities including offices, dormitory, dining hall, clinic and change houses;

- site infrastructure including access road, water supply system (8 wells), and electrical power transmission line with substation.

To date, capital expenditure for the mining operation is approximately $19 million. At the current rate of 1,500 t/d, the company expects to process 44.2 tonnes of ore in fiscal year ending December 31, 2007. The existing resources will be able to support 15 years of production at the current rate.

ZINC SMELTER DIVISION

Arehada plans to build a 100,000 tonnes per annum zinc smelter to process zinc concentrates from smaller zinc mines in the region, with potential processing for Mongolian zinc concentrates.

Phase I, with an anticipated 50,000 tons per annum production capacity, is currently under construction. The module to process zinc calcine and sulphic acid has been completed and fine-tuned. Arehada expects to commence operation of this module in the second quarter of 2007. Total capital cost for the smelter to date is approximately $17 million.

ZINC LEAD SILVER EXPLORATION PORTFOLIO

In addition to the existing operating mine and the smelter described above, Arehada has significant and promising zinc lead silver exploration properties. All these properties are in the same region of the existing mine and within hours of driving distance.

Exploration programs covering Arehada area II (to the east of Arehada I) since July 2006 have discovered 12 additional mineralized zones from line 39 to 71, and obtained significant zinc, lead and silver resources. The company is in the process of finalizing its data and will release its positive results soon.

ZINC LEAD SILVER EXPLORATION PORTFOLIO

The Company is planning to double its current mining operations to 3,000 tonnes per day in 2008 from the current 1,500 tonnes per day. To implement this strategy, the company has commenced its mining development by constructing the second major incline shaft in December 2006.

About Dragon Capital

Through its 100% owned subsidiary Arehada Mining Corporation, Dragon Capital is engaged in the exploration, development, extraction and refining of zinc, lead and silver in Dongwuzhumuqinqi, located in Inner Mongolia, China. Arehada produces zinc and lead concentrates, which is sold to smelters in China.

Forward-Looking Statements

Certain forward-looking statements are made in this news release, including statements regarding possible future business. Investors are cautioned that such forward looking statements involve risks and uncertainties detailed from time to time in the Company's periodic reports filed with Canadian regulatory authorities. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.

For further information:

Oliver Xing
Chief Financial Officer
Tel: (416) 510-2991
Email: oliverxing@bellnet.ca

Martti Kangas
Investor Relations
The Equicom Group
Tel: (416)815-0700 x 243
Email: mkangas@equicomgroup.com

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.