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Drake Gold Resources, Inc. CEO Issues Urgent Letter to Shareholders


July 23, 2012 08:30 AM Eastern Daylight Time

CARSON CITY, Nev.--(BUSINESS WIRE)--Drake Gold Resources (OTC: DKGR) announces immediately herein a letter from the company’s CEO to shareholders regarding recent material events:

Dear Shareholders of Drake Gold Resources Inc. (Pinksheets:DKGR),

We put out an update yesterday through Wordpress, http://drakegoldblog.wordpress.com/ , due to the fact that all the passwords have been changed for our website to our surprise.

Tom Smith is no longer a part of the corporation in spite of his insistence and misguided belief that he is. Below are excerpts of Tom agreeing to resign once he was wired funds. Tom has resigned from the corporation once these funds were wired to him as per his numerous instructions and we accepted his resignation.

On another note, as previously stated, only $2000 approximately has been spent on the development of the lease. I have not had access to Drake's bank account at all so any implication that i misappropriated funds are completely false and baseless. In fact, Clayton Timothy Smith is the only individual that performed transactions on the account in spite of numerous requests to transfer this account so as to be under Tom's control.

Tom has stated that I have disappeared for eight weeks. This has not been the case. I cannot and will not hire workers in Pennsylvania without adequate funding in place to make sure that these individuals are paid in full. I had previously outlined a budget to Real Resource Fund as per their request but they never provided the required funds. Any statements to the contrary are completely false. We cannot develop the leases on such small budgets and I refused to be a part of any situation in which the oil workers will not be paid due to the inherent liability that will ultimately affect Drake. In addition, I have always attempted to maintain that all the stakeholders in the corporation were effectively remunerated and proper protocols adhered to which made other individuals attempt to circumvent me, specifically Clayton Timothy Smith, with his close relationship with Tom Smith. This union had conflicts of interest that were unacceptable to me such as, but not limited to, the following: Clayton's control of Drake's bank account; Clayton's exclusive control of the website; Clayton's withdrawal of funds without any oversight; the issuance of any press releases without my consent; and Clayton's attempt to control the development of the leases.

Now that we have access to funding from an investment firm based in New York, I would like to start developing the leases. If we are delayed due to Tom's actions, there is a strong possibility that we will lose the leases as clearly outlined in the previous press release.

Yours Truly,

Robert Jackson
Chief Executive Officer

P.S. below are the excerpts from Tom Smith’s emails as referenced above.

“I am aware I can be sued by anyone for anything anytime. I can walk out of my office and get shot. I am a big boy, and can and will defend myself. In this case, there is nothing to defend. Please arrange for my extremely overdue payment. Since inception, I have always been shorted. That is not your fault, but I want paid, I will resign, and then whatever else comes along, I will deal with that then

I am awaiting final payment whereupon I intend to resign at the behest of XXXXXX

All XXX and I want is for me to get paid and resign- can we please accommodate

I SPOKE TO CHRIS TODAY- HE WANTED ME TO LET HIM KNOW ABOUT THE FUNDING-SINCE YOU WILL BE MORE AWARE OF THE TIMING- PERHAPS YOU, OR PETER, OR BOB SHOULD CALL AND APPRAISE HIM-WHOEVER THAT IS SHOULD LET HIM KNOW THE NEW CONTACT SINCE I AM DONE- IF YOU NEED HIS NUMBER PLEASE ADVISE

If you would be kind enough to advise when the wire I WILL THEN FORWARD RESIGNATION

Best wishes- I know this thing will do well when or if some money gets to the field-someone should contact Rick and Chris and give them the game plan- they called me and I told them to stand by- someone would reach out to them

Get me paid the 999.00 I am owed today, and you will have my resignation in a New York minute.

Otherwise, pay me the 999.00 I am owed, and you shall have my resignation on confirmation of receipt.”

Please read the Forward Looking Statements & Risk Factors: http://DrakeGold.com/Risk_Factors

Contacts

Drake Gold Resources
Peter Matousek, 530-405-3547
Investor Relations manager
[e-mail]