Dragon Mining Limited released the December 2008 quarterly report which highlights record quarterly gold production for the group of 21,061 oz at an average cash cost of $520/oz. At Svartliden in Sweden gold production for the quarter was 11,332 oz at an average cash cost of $476/oz. Encouraging final results were received from diamond core drilling to improve confidence in the resource estimate and upgrade the reource catgories in preparation for open pit mining at the Jokisivu gold project in Finland.

At Dragon’s Vammala processing centre in Finland record gold production was achieved for the quarter – 9,729 oz at an average cash cost of $570/oz (including refining costs of $106/oz).

Diamond drilling focused on the depth extensions at Svartliden returned high grade intercepts including 5 m @ 11.24 g/t Au, 4 m @ 7.39 g/t Au, 4 m @ 18.23 g/t Au and 11m @ 9.83 g/t Au. Diamond drilling has also confirmed the discovery of a previously unknown zone of precious metal mineralisation within the Hanhimaa Project in northern Finland.  The drilling program which targeted the Kiimakuusikko area, intercepted zones of hydrothermally altered rocks with elevated gold and silver contents, including a best intercept of 3.45 m @ 3.94 g/t Au and 5.26 g/t Ag.