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Drake Gold Resources Inc. Announces Completion of the 100% Acquisition of Pegasus Oil Well Services with Projected Revenue of $2.3 Million for 2006
Monday July 10, 12:01 pm ET


CENTURY CITY, CALIFORNIA--(MARKET WIRE)--Jul 10, 2006 -- Drake Gold Resources, Inc. (Other OTC:DKGR.PK - News) is pleased to announce the 100% acquisition of Pegasus Cementers Inc. D.B.A. Pegasus Oil Well Services which is projected to do up to $2,300,000 USD of revenues for 2006.
The projections are based on the current contracts and the expansion model with Drake Gold over the next 6 months and will increase as new contracts are signed for Pegasus Oil Well Services (POWS). Drake Gold plans to purchase and develop 4 cementers, 1-2 fracturing units and one coiled tubing unit to fulfill existing contracts and new business. Drake also has plans to manufacture or purchase drilling rigs as Drake Oil starts to expand into the purchase of new leases and the development of those leases.

Pegasus is a San Antonio based company that services all of South Texas with a growing list of services. Most up to date information will be on the website. (http://www.pegasusoilwellservices.com) Drake Gold plans to expand both to Midland Texas and North Texas with the oil well services. The known petroleum deposits of Texas--about 8 billion barrels--make up approximately one-third of the known U. S. supply. The size of the market for oil well services is massive to say the least and Drake Gold plans to capitalize on it to the fullest.

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The acquisition is for all restricted stock which is restricted for over 2 years. The purchase price for Pegasus Oil Well Services is $1.8 M and will be paid in 4 restricted stock payments between now and the end of the year.

Thomas Gouger IV, Drake Gold's subsidiaries president and operator commented on the acquisition, "This is a great day for Pegasus Oil Well Services to be allied with an emerging company like Drake Gold, we are very excited about our new parent company and our plans to further grow together!"

As previously mentioned,

"The company plans to expand operations to include complete well services for wells above 10,000 ft. in depth including acidization treatments, cementing, and drilling operations. Pegasus is a growing service provider specializing in cementing for shallow oil, gas, and water wells in the South Texas area.

The company began operations in November of 2001 with the first several months being devoted to training personnel, acquiring, and modifying needed equipment. The company became more active over the first 3 years solidifying its foundation in 2004. Operating with only one cementing unit, its sales for 2005 exceeded $600,000 over a shortened year due to a mechanical rebuild of its main unit.

The company plans on adding additional cementing units, hydraulic fracturing units, drilling rigs, and other needed services, with the intent of becoming a one-stop shop for the oil business. With the growing demand for oil and gas operations in the Texas arena revenues are expected to continue to rise.

For Drake, the addition of a full service oil well company will make the advancements into oil and gas development hastened and is lowering capital needed to begin operations. The market today makes it very difficult to schedule equipment needed to perform these services so having them in-house gives Drake the ability to move consistently from project to project without any delays while minimizing risk.

Furthermore, Drake has already made a series of advancements into acquiring oil and gas leases, projects and potential joint ventures to build its portfolio of petroleum operations. The current acquisition and connections already within the industry have located prime targets in South Texas, the Barnett Shale in Texas, California and Louisiana. With the new service division it makes it very easy to obtain projects for low costs and entice current operators to entertain joint ventures.

The Drake team believes acquiring Pegasus Well Services is a step in the right direction -- it minimizes the risk of oil and gas exploration while building solid well-margined cash flows."

Current and future shareholders are encouraged to sign up for email updates. The new Company website provides current news releases, reports, interviews, industry news and market related information. To sign up, click on the link located under the main menu at www.drakegold.com.

Shareholder inquiries and suggestions are welcome and should be directed to the Drake Gold, Investor Relations Team at (toll free) 1-888-601-9983, internationally at 1-503-618-0370, or via email at [e-mail].