Arehada Mining Limited changes name and reports on current operations

TORONTO, May 31 - Dragon Capital Corporation (TSX: AHD), (the "Company") reported today that shareholders have approved the company's change of name to Arehada Mining Limited to reflect the firm's origins. Arehada Mining Corporation, its 100% subsidiary based in Inner Mongolia, China has 550 full time employees in the mining and processing division, 213 employees in the zinc plant and 12 employees in the exploration division.

Production

The Company is currently operating a 1,500 tonnes per day mining and milling operation producing zinc and lead concentrate which generated earnings of $0.015 per share in that period.

Based on the 43-101 report, the Company has indicated and inferred resources of 11 million tonnes with an average grade of 3.08% zinc, 2.07% lead and 57 g/t of silver supporting a 14.5 year mine life from the currently producing Arehada North(*) deposit.

The Company currently has six drills working to the east of the defined resource seeking to prove sufficient additional resource to support expansion of the mining and milling operation in Arehada North.

Construction of a new incline shaft and a vertical shaft has commenced with a view to doubling the capacity to 3,000 tonnes per day by the end of 2008.

To date, 31 new holes have been drilled with a further six scheduled to be completed by the end of this month. Shortly thereafter these results will be released and an internal estimate of the new resource will be calculated. Based on early drill results we anticipate seeing grades as those encountered in the current area of mining.

A further 33 holes are planned for Arehada Central(*) and Arehada South(*) plus the periphery of North during the balance of this year. Two holes previously drilled in Central returned 2.4% zinc, 1.6% lead and 44g/t silver. Three holes previously drilled in South returned 2.2% zinc, 1.5% lead and 38g/t silver.

Zinc Plant

The 50,000 tonnes per annum capacity zinc plant producing zinc oxide and sulphuric acid from zinc concentrate was completed in May of this year.

The Chinese government is actively promoting the building of new, efficient and environmentally friendly zinc plants with a variety of measures. As a consequence of this policy, once Arehada's plant is operational, all zinc concentrate in the region must be processed through the Company's mill.

The plant is expected to be profitable at an early stage and will greatly assist the Company in achieving its ultimate objective of being the dominant regional zinc producer.

Intermediate term plans include building out the refinery phase so that the plant will produce 50,000 tonnes per annum of high grade zinc with a longer term view to a full 100,000 ton per annum expansion.

Dasaituo Property

The Company has been continuing its drilling program on its 60% owned Dasaituo zinc lead silver prospect having completed four of eight drill holes planned for 2007 in addition to 21 previously drilled holes.

We expect a detailed report in November on the property, which is approximately 55 km northeast of the Arehada mine, in order to assess whether a small (500 tonnes per day) mining and milling operation would be justified.

The Company is looking at acquiring the remaining 40% interest in Dasaituo. A final acquisition price will be determined in conjunction with a review of the detailed exploration study.

(*) The deposits referred to as Areas I, II and III in the RPA 43-101 Qualifying Report have been renamed Arehada North, Central and South respectively.

About Dragon Capital (Arehada)

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 are then sold to smelters in China.

Arehada is currently constructing its own zinc plant with a designed processing capacity of 100,000 tons per annum. The first phase, with a rated capacity of 50,000 tons per annum, will produce zinc oxide and sulphuric acid.

For further information:

Forward Looking Statements - The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, extent of resources actually contained in mineral deposits, actual recoveries achieved in processing ore, technological change, change to regulations affecting the mining industry, risks associated with mining operation in China, and environmental and safety regulations and risks. Forward-looking statements in this release include statements regarding future programs, review completion dates and opportunities. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

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.