Zinc

[Lone Clone]

Arehada Mining Limited changes name and reports on current operations

http://www.newswire.ca/en/releases/archive/July2007/03/c3135.html

TORONTO, July 3 /CNW/ - 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

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.

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.

%SEDAR: 00023101E



For further information: Christopher Harrop, Chairman, Dragon Capital
Corporation, Tel.: [phone], Email: [e-mail]; Martti Kangas,
Investor Relations, The Equicom Group, Tel: [phone] x 243, Email:
[e-mail]