Black Dragon Resource Companies Inc. announced that Chairman and CEO Dr. Gerald R. Bailey tendered his resignation on October 26, 2009 in order to assume immediate responsibility as CEO for a major oil company. While he was CEO, Dr. Bailey set the tone for a new direction at Black Dragon. Director Thomas Neely accepted Dr. Bailey's resignation, but the Board of Directors took swift action in appointing Dr. Bailey's principal assistant as the new Chief Executive Officer, Mr. Scott D. Smith. The Board made this move rapidly to ensure an effective transition of competent management.

Black Dragon Resource Companies, Inc. announced it has been in ongoing talks with the new acquisition operating company (doing about 2,000bls a month) for the past 2-3 months. The company is getting a details list and break down of all assets and equipment. Black Dragon is moving fast in order to close this deal in an expedited fashion. Black Dragon feels this is a lucrative deal with instantaneous profits and looks to update the market with more details in the coming days.

Black Dragon Resource Companies, Inc. has announced that its agreement with Kingdom Energy Partners LLC on the previously announced participation in the Humble Project on September 9, 2009 has been terminated by mutual agreement. Because of Black Dragon CEO's one-third interest in KEP, certain shareholders of Black Dragon raised issues about a possible conflict of interest. While full disclosure was made by Dr. Bailey to all parties regarding the potential conflict, in order to avoid any questions, both parties believed that it was appropriate to terminate the arrangement at this time. Counsel for the Company had opined that based on the facts presented, there appeared to be no violation of Delaware Law, based upon the absence of any special benefit to either party. However, there had been some negative pressure on KEP and Dragon from Black Dragon Stockholders about the possible conflict of interest, in light of Black Dragon CEO's executive position in both companies. This original KEP agreement was reached through the mutual contacts the CEO has in each entity and the Black Dragon Board was aware of this connection. Dr. Bailey was to receive no special benefit from the arrangement, but rather believed it was a good economic decision for Dragon that would otherwise not have been available. However, in the best interest of all, KEP has advised it preferred not to go forward with the deal with Black Dragon.