UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


(X)  QUARTERLY  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934

                  For the quarterly period ended June 30, 2006

( ) TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT

                        For the transition period from to
                                                          --------  ----------

                        COMMISSION FILE NUMBER 000-50541

                           DRAGON GOLD RESOURCES, INC.
                 (Name of small business issuer in its charter)

      NEVADA                                                  88-0507007
-------------------------                                ----------------------
(State of incorporation or organization)                (IRS Identification No.)

                                 338 Euston Road
                                 London NW1 3BT
                                       UK
                    (Address of principal executive offices)

                               011-44-207-416-4920
                    ----------------------------------------
                           (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such Shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No

49,246,724 shares of issuer's common stock, $.001 par value, were outstanding as
of August 17, 2006. The Company has no other class of common equity.

       Transitional Small Business Disclosure Format (Check One) Yes   No X
                                                                   ---- ----



<PAGE>


Dragon Gold Resources, Inc.
(An Exploration Stage Company)
(Unaudited)
<TABLE>


                          PART I.  FINANCIAL INFORMATION

                                                                                          Index
<S>                                                                                       <C>

Item 1 Financial Statement
     Unaudited Consolidated Balance Sheet as of June 30, 2006                              3

     Unaudited Consolidated Statement of Operations for the three months ended
     June 30, 2006 and 2005 And from inception (June 13, 2000) to June 30, 2006            4

     Unaudited Consolidated Statement of Cash Flows for the three months ended
     in June 30, 2006  And June 30, 2005                                                   5

     Notes to the Unaudited Consolidated Financial Statements                          6 - 9

Item 2.  Management's Discussion and Analysis or Plan of Operation                        10

Item 3.  Controls and Procedures                                                          12

                        PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings                                                                 12

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                       12

Item 3.  Defaults upon Senior Securities                                                   12

Item 4.  Submission of Matters to a Vote of Security Holders                               12

Item 5.  Other Information                                                                 12

Item 6.  Exhibits                                                                          12

     Signatures                                                                            13

     Certifications                                                                     14-15

</TABLE>



<PAGE>



Dragon Gold Resources, Inc.
(An Exploration Stage Company)
Balance Sheet (Unaudited)
(expressed in U.S. dollars)


                                                                      June 30,
                                                                       2006
                                                                         $

Assets

Current Assets

Cash                                                                    23,962
Accounts receivable                                                      2,724
Prepaid expenses and deposits                                           16,497
Due from related parties                                                   376
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Total Current Assets                                                    43,559

Intangible Assets                                                        8,126
Property and Equipment                                                   2,658
--------------------------------------------------------------------------------

Total Assets                                                            54,343
--------------------------------------------------------------------------------


Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable                                                        20,080
Accrued liabilities                                                      3,000
Due to related parties                                                       -
--------------------------------------------------------------------------------

Total Current Liabilities                                               23,080
--------------------------------------------------------------------------------

Commitments

Stockholders' Equity

Common Stock,
500,000,000 common shares authorized with a par value of $0.001,
49,946,724 common shares issued and outstanding                         49,947

Additional Paid In Capital                                           2,672,947

Deficit Accumulated During the Exploration Stage                    (2,691,631)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Total Stockholders' Equity                                              31,263
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Total Liabilities and Stockholders' Deficit                             54,343
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------



       The accompanying notes are an integral part of the these unaudited
                              financial statements

<PAGE>



Dragon Gold Resources, Inc.
(An Exploration Stage Company)
Statements of Operations (Unaudited)
(expressed in U.S. dollars, except shares outstanding)
<TABLE>


                                                                  Three Months Ended            Accumulated From
                                                                                               December 13, 2000
                                                                                             (Date of Inception) to
                                                            ------------------------------
                                                            ------------------------------
                                                                  June 30,      June 30,            June 30,
                                                                   2006          2005                2006
<S>                                                          <C>               <C>              <C>


Revenue                                                                -             -                        -
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------


Expenses

   Accounting and audit                                          $14,425        $1,930                 $69,890
   Depreciation and amortization                                   1,430         1,430                  10,131
   Consulting                                                  1,260,633       398,778               1,978,661
   Foreign exchange                                                (485)         1,138                   3,969
   General and administrative                                        512        11,711                  47,050
   Legal and organizational                                        5,133         5,357                  75,650
   Impairment loss on mineral property acquisition costs               -        64,851                 282,141
   Rent                                                            3,000         9,403                  58,121
   Travel and promotion                                                -        50,629                 167,018
-----------------------------------------------------------------------------------------------------------------

Total Expenses                                                 1,284,648       545,227                 2,692,631
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

Gain on sale of assets                                                 -             -                     1,000
-----------------------------------------------------------------------------------------------------------------

Net Loss                                                     $(1,284,648)   $(545,227)               $(2,691,631)
-----------------------------------------------------------------------------------------------------------------



Net Loss Per Share - Basic and Diluted                            $(0.02)       $(0.01)
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

Weighted Average Shares Outstanding                           52,490,000    51,533,000
-----------------------------------------------------------------------------------------------------------------

</TABLE>




       The accompanying notes are an integral part of the these unaudited
                              financial statements

<PAGE>



                                       15

Dragon Gold Resources, Inc.
(An Exploration Stage Company)
Statements of Cash Flows (Unaudited)
(expressed in U.S. dollars)
<TABLE>


                                                                                              Accumulated From
                                                                                              December 13, 2000
                                                                                                  (Date of
                                                                   Three Months Ended           Inception) to
                                                            ----------------------------------

                                                            -----------------------------------------------------
                                                            -----------------------------------------------------
                                                                June 30,        June 30,          June 30,
                                                                  2006            2005              2006
                                                                   $                $                 $
<S>                                                              <C>          <C>               <C>


Operating Activities

Net loss                                                       (1,284,648)          (545,227)      (2,691,631)

Adjustments to reconcile net loss to net cash used
in operating activities
   Depreciation and amortization                                    1,430              1,430           10,131
   Deferred compensation                                                -              4,688                -
   Expenses paid by related party                                  33,000                  -           86,000
   Impairment loss on mineral property acquisition costs                -             64,851          282,141
   Shares issued to settle expenses                                     -                  -            5,070
   Shares issued for services                                   1,255,883            340,000        1,614,633
   Shares issued for mineral property costs                             -                  -          165,000

Change in operating assets and liabilities
Accounts receivable                                                     -                  -           (2,610)
Deposits and prepaid expenses                                           -             (4,819)          (3,829)
Accounts payable and accrued liabilities                              567             (7,559)          22,007
Amounts due to related parties                                    (21,336)            (2,133)          (5,412)
-------------------------------------------------------------------------------------------------------------
-
Net Cash Used in Operating Activities                             (15,104)          (148,769)        (518,500)
-------------------------------------------------------------------------------------------------------------

Investing Activities

      Mineral property acquisition costs                              -              (64,851)        (282,141)
      Purchase of property and equipment                              -                 (587)          (5,915)
      Purchase of intangible assets                                   -                    -          (15,000)
-------------------------------------------------------------------------------------------------------------

Net Cash Used in Investing Activities                                 -              (65,438)        (303,056)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------

Financing Activities

   Proceeds from related party loan                                     -                  -          12,745
   Proceeds from issuance of common shares                         35,000            300,000         833,055
-------------------------------------------------------------------------------------------------------------

Net Cash Provided by Financing Activities                          35,000            300,000         845,800
-------------------------------------------------------------------------------------------------------------

Effect of Exchange Rate on Cash                                      (282)                -            (282)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------

Increase in cash                                                   19,614             85,793         23,962

Cash - beginning of period                                          4,348             11,280              -
-------------------------------------------------------------------------------------------------------------

Cash - end of period                                               23,962             97,073         23,962
-------------------------------------------------------------------------------------------------------------

Supplemental Disclosures
     Interest paid                                                      -              -                 -
     Income tax paid                                                    -              -                 -

Non-Cash Financing Activities

   Issuance of common stock for asset purchase                          -              -               100
   Issuance of common stock for payment of expenses                     -              -             4,970
   Issuance of common stock for services                        1,255,883        340,000         1,595,883
   Issuance of common stock for acquisition of subsidiary               -              -           165,000
   Issuance of common stock for settlement of related party                            -
   loans                                                           30,000                            7,708
-------------------------------------------------------------------------------------------------------------

</TABLE>

       The accompanying notes are an integral part of the these unaudited
                              financial statements


<PAGE>



Notes to the Unaudited Financial Statements

1.       Exploration Stage Company

     Dragon Gold Resources, Inc. (the "Company") was incorporated in the State
     of Nevada, U.S.A. on December 13, 2000 under the name "Folix Technologies,
     Inc." Effective June 14, 2004, the Company changed its name to Dragon Gold
     Resources, Inc. The Company's principal business was the development of a
     Linux based application server and thin client computing systems. On July
     14, 2004, the Company entered the mineral resource exploration business
     through the acquisition of a 100% interest in Dragon Minerals Holdings Inc.
     ("DMHI"), a private British Virgin Island company. DMHI is involved in the
     mineral property acquisition and exploration in China. On May 5, 2006, the
     Company and DMHI terminated their agreement dated July 14, 2004.

     The Company was previously in the development stage as defined by Statement
     of Financial Accounting Standard ("SFAS") No.7 "Accounting and Reporting by
     Development Stage Enterprises" related to its Linux based business. The
     Company changed to the exploration stage during the year ended March 31,
     2005 with the acquisition of its interest in DMHI. These financial
     statements have been prepared on a going concern basis, which implies the
     Company will continue to realize its assets and discharge its liabilities
     in the normal course of business. The Company has never generated revenues
     since inception and is unlikely to generate earnings in the immediate or
     foreseeable future. The continuation of the Company as a going concern is
     dependent upon the continued financial support from its shareholders, the
     ability of the Company to obtain necessary equity financing to continue
     operations and to determine the existence, discovery and successful
     exploitation of economically recoverable reserves in its resource
     properties, confirmation of the Company's interests in the underlying
     properties, and the attainment of profitable operations. As of June 30,
     2006, the Company has accumulated losses of $2,691,631 since inception.
     These financial statements do not include any adjustments to the
     recoverability and classification of recorded asset amounts and
     classification of liabilities that might be necessary should the Company be
     unable to continue as a going concern. These factors raise substantial
     doubt regarding the Company's ability to continue as a going concern.

2.   Basis of Presentation

     The accompanying unaudited condensed financial statements have been
     prepared in accordance with the generally accepted accounting principles
     for interim financial information and with the instructions to Form 10 QSB
     and Article 10 of Regulation S-X. Accordingly, they do not include all of
     the information and footnotes required by generally accepted accounting
     principles for complete financial statements. In the opinion of management,
     all adjustments (consisting of normal recurring accruals) considered
     necessary for a fair presentation have been included. Operating results for
     the three month period ended June 30, 2006 are not necessarily indicative
     of the results that may be expected for the year ended March 31, 2007.

     On May 5, 2006, the Company terminiated its agreement with its 100% wholly
     owned subsidary, Dragon Minerals Holdings Inc. Refer to Note 3. Comparative
     amounts, for the statement of operations and statement of cash flows for
     the three months ending June 30, 2005, are shown on a consolidated basis.


3.   Acquisition and Termination of Business

     On July 15, 2004, the Company purchased 100% of the issued and outstanding
     common shares of Dragon Minerals Holdings Inc. ("DMHI"), a private British
     Virgin Islands company. DMHI owns 100% of the issued and outstanding common
     shares of Dragon Minerals Inc. ("DMI"), a private British Virgin Islands
     company. Accordingly, the results of operations for DMHI have been included
     in the accompanying consolidated financial statements from the date of
     acquisition. DMI is involved in mineral property acquisition and
     exploration in China. The purchase price was $184,579 which included the
     issue of 16,500,000 common shares at a fair value of $165,000, acquisition
     costs of $12,235 and negative book value of DMHI of $7,344. The common
     shares were valued at a nominal $0.01 per share as the Company had just
     disposed of its Linux based business and had no significant assets,
     liabilities, nor operations. The Company used the purchase method of
     accounting for this acquisition and the purchase price was allocated to
     mineral property costs. As the mineral property did not have any proven or
     probable reserves, the costs have been charged to operations.

     On May 5, 2006, the Company and its wholly owned subsidiary, Dragon
     Minerals Holdings Inc. ("DMHI") terminated their agreement dated July 14,
     2004 whereby the Company acquired all the issued and outstanding shares of
     DMHI for 16,500,000 shares of the Company's common stock. Pursuant to the
     Termination Agreement, the Company returned to the Shareholders their
     shares in DMHI and the Shareholders returned 13,500,000 shares of the
     Company's common stock. A director of the Company and the director's spouse
     retained 3,000,000 shares of the Company's common stock. The director was
     issued an additional 1,000,000 shares for services performed (Note 4(d)).
     As a result of the termination, the Letter of Intents entered by Dragon
     Minerals Inc., DMHI's wholly-owned subsidiary, with Northwest Geology &
     Exploration Bureau for Nonferrous Metals Party and Bureau of Geology &
     Mineral Exploration & Development of Shaanxi Province were returned to the
     shareholders of DMHI (Notes 5 (f) and (g), respectively). During the year
     ended March 31, 2006 and the three months ended June 30, 2006, DMHI
     incurred expenses of $3,307 and $3,500, respectively.
<PAGE>

4.       Related Party Transactions
(a)      The amount due from related parties at June 30, 2006 of $376 represents
         expenses of $159 paid on behalf of the Company by a former Director and
         offset by $535 advanced to current directors. These amounts are
         non-interest bearing, unsecured and have no specific terms of
         repayment.
(b)      During the three months ended June 30, 2006, the Company incurred
         $804,633 (2005 - $347,500) for consulting services provided by the
         Chairman of the Board of Directors of the Company, which includes
         $5,000 as part of an employment agreement and a modified bonus for
         prior services of 5,000,000 shares of restricted common stock with a
         value of $829,633 that replaced 3,000,000 stock options. Included in
         prior services was $25,000 which was previously recorded as a
         liability.
(c)      During the three months ended June 30, 2006, the Company incurred
         $330,000 (2005 - $30,000) for consulting services provided by the
         President of the Company, which included a one time bonus of 2,500,000
         restricted common shares with a fair value of $300,000 for prior
         services and three month's services donated by the President.
(d)      During the three months ended June 30, 2006, the Company incurred
         $120,000 (2005 - $16,590) for consulting services provided by a
         director of the Company, which includes a one time bonus of 1,000,000
         restricted common stock with a fair value of $120,000
(e)      During the three months ended June 30, 2006, the Company  recognized
         $30,000 for donated services and $3,000 for donated rent provided by
         the President of the Company.

5.       Mineral Properties
(a)      On September 21, 2005, the Company entered into a cooperative agreement
         with Yinchuan Gaoxin District Shijin Mining Ltd. ("Yinchuan Mining") to
         form a Sino-Foreign cooperative joint venture company ("JV Company")
         for the exploration and development of the Xijishui Gold Property and
         its surrounding area located in Jingyuan County, Gansu Province, China.
         Pursuant to the agreement, the Company must pay $150,000 to Yinchuan
         Mining over a period of 12 months after Yinchuan Mining transfers its
         mineral exploration rights to the JV Company. The Company will have the
         right to earn an 80% interest in the JV Company by spending $1,200,000
         for exploration activities over a two year period. The term of the
         cooperation agreement was 30 years. In May 2006, the Company terminated
         the cooperative agreement with Yinchuan Mining.
(b)      On September 10, 2005, the Company entered into a cooperative agreement
         with the Guilin Research Institute of Geology and Mineral Resources
         ("Institute") to form a Sino-Foreign cooperative joint venture company
         ("JVC") for the exploration and development of the Maling and Longhou
         Gold Properties located in Guangxi Province, China. Pursuant to the
         agreement, the Company must pay $800,000 to the Institute in stages
         over a period of 30 months after the Institute transfers its mineral
         exploration rights to the JVC. The Company will have the right to earn
         a 75% interest in the JVC by spending $2,500,000 for exploration
         activities over a three year period. The term of the cooperation
         agreement was 30 years. In May 2006 the Company terminated the
         cooperative agreement with Institute.
(c)      On March 15, 2005, the Company entered into a Letter of Intent with the
         Hanzhong Geological Brigade of the Bureau of Geology & Mineral
         Exploration of Shaanxi Province, China ("Brigade") to form a
         Sino-Foreign cooperative joint venture company for the exploration and
         development of up to seven properties located in Hanzhong, Shaanxi
         Province. Pursuant to the Letter of Intent, the Company would
         contribute cash to the joint ventures and Brigade would contribute the
         Exploration Permit and their previous exploratory findings. In May 2006
         the Company terminated the Letter of Intent with Brigade.



<PAGE>

5.        Mineral Properties

(d)       On March 1, 2004, Company's wholly-owned subsidiary Dragon Minerals
          Inc. ("DMI") entered into a Letter of Intent with the Northwest
          Geology and Exploration Bureau for Nonferrous Metals Party ("Party")
          in China to form a Sino-Foreign cooperative joint venture company for
          the exploration and development of a property located in Southern
          Shaanxi Province. Pursuant to the Letter of Intent, the Company would
          contribute cash to the joint venture and Party would contribute the
          Permit and their previous exploratory findings. In May 2006, the
          Company returned the Letter of Intent to the shareholders of DMI when
          the Company terminated the acquisition agreement of DMI.

(e)       On February 24, 2004, DMI entered into a Letter of Intent with the
          Bureau of Geology and Mineral Exploration & Development of Shaanxi
          Province ("Bureau") in China to form a Sino-Foreign cooperative joint
          venture company for the exploration and development of up to twelve
          properties located in the Southern Shaanxi Province. Pursuant to the
          Letter of Intent, the Company would contribute cash to the joint
          ventures and Bureau would contribute the Permits and their previous
          exploratory findings. In May 2006, the Company returned the Letter of
          Intent to the shareholders of DMI when the Company terminated the
          acquisition agreement of DMI.

6.        Common Stock
(a)       In May 2006, the employment agreement that the Company entered into
          (Note 8) with the Chairman Non-Executive (the "Employee") was
          terminated. Under the terms of the termination, the Company cancelled
          the stock options to acquire 3,000,000 shares of common stock that was
          issued to the Employee. The Company then issued 5,000,000 shares of
          common stock to the Employee. The Employee will remain as a director
          of the Company.
(b)       On May 5, 2006,  the Company  cancelled  13,500,000  shares of common
          stock as part of the Agreement  Termination  with Dragon
          Minerals Holdings Inc. Refer to Note 3.
(c)       On May 5, 2006, the Company issued 2,500,000 and 1,000,000 shares of
          common stock of the Company to the President and the Geological
          Director, respectively, as recognition of their efforts devoted to the
          Company.
(d)       On April 18, 2006, the Company entered into a stock subscription
          agreement whereby the Company issued 700,000 shares of common stock at
          $0.05 per share for cash proceeds of $35,000.

7.        Stock Options

     During the year ended March 31, 2006, the Company granted stock options to
     acquire up to 3,000,000 shares of common stock exercisable at $0.366 per
     share on or before May 12, 2010. One-third of the options vest each year,
     for the first three years, on the anniversary date of the agreement. On May
     5, 2006, the 3,000,000 stock options were cancelled as the employment
     agreement referred to Note 8 was terminated.

     A summary of the Company's stock option activity is as follows:

                                                Three Months Ended
                                                   June 30, 2006
                                           ------------------------------
                                           -------------- ---------------
                                               Number of        Weighted
                                                                 Average
                                                 Options  Exercise Price
   --------------------------------------- -------------- ---------------
   --------------------------------------- --------------

   Balance, beginning of period                3,000,000  $        0.366

   Granted                                             -               -

   Cancelled / Forfeited                      (3,000,000)          0.366

   Exercised                                           -               -
   --------------------------------------- -------------- ---------------
   --------------------------------------- -------------- ---------------

   Balance, end of period                              -  $            -
   --------------------------------------- -------------- ---------------

     As at June 30, 2006, there were no stock options outstanding.

<PAGE>




7.       Stock Options (continued)

     The following table illustrates the effect on the June 30, 2005 net loss
     and loss per share if the Company had applied the fair value recognition
     provisions of SFAS 123 to options granted under the Company's stock option
     plans in all periods presented. For purposes of this pro forma disclosure,
     the value of the options is estimated using a Black-Scholes option-pricing
     formula and amortized to expense over the options' service period.

     The fair value of the options granted during the period was estimated at
     the date of the grant using the Black-Scholes option pricing model with the
     following assumptions: dividend yield of 0%; risk-free interest of 3.71%;
     expected volatility of 114%; and weighted average life of 3 years.
<TABLE>

                                                                              Three Months Ended
                                                                                June 30, 2005
<S>                                                                             <C>

      Net Loss - as reported                                                    $ (545,227)
        Add: Stock-based compensation expense included in net loss - as
        reported                                                                          -
        Deduct: Stock-based compensation expense determined under fair
        value method                                                              (156,319)
                                                                             ------------------
                                                                             ------------------

      Net Loss - Pro-Forma                                                       $(701,546)
                                                                             ==================

      Basic and diluted net loss per share - as reported                           $ (0.01)
                                                                             ------------------

      Basic and diluted net loss per share - Pro-Forma                             $ (0.01)
                                                                             ==================
</TABLE>

8.       Termination of Employment Agreement

     On May 12, 2005, the Company entered into a five-year employment agreement
     for the position of Chairman Non-Executive (the "Employee") for the
     provision of services for 52 days per year in consideration for an annual
     salary of $60,000. The Company will pay $500 per day for each day in excess
     of 52 days. The Employee received 1,000,000 shares of common stock of the
     Company upon execution of the agreement. The Company also granted stock
     options to acquire 3,000,000 shares of common stock for a term of 5 years,
     exercisable at $0.366 per share. One-third of the options vest each year,
     for the first three years, on the anniversary date of the agreement. In May
     2006, the employment agreement that the Company entered into with the
     Employee was terminated. Under the terms of the termination, the Company
     cancelled the stock options to acquire 3,000,000 shares of common stock
     that was issued to the Employee. The Company then issued 5,000,000 shares
     of common stock to the Employee. The Employee remains as a director of the
     Company.


<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD LOOKING STATEMENTS

THIS REPORT CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF SECTION
27A OF THE SECURITIES ACT OF 1933, AS AMENDED AND SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. THE COMPANY'S ACTUAL RESULTS COULD DIFFER
MATERIALLY FROM THOSE SET FORTH ON THE FORWARD LOOKING STATEMENTS AS A RESULT OF
THE RISKS SET FORTH IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION, GENERAL ECONOMIC CONDITIONS, AND CHANGES IN THE ASSUMPTIONS USED IN
MAKING SUCH FORWARD LOOKING STATEMENTS.

As used in this quarterly report, the terms "we", "us", "our", "our company",
and "Company" mean Dragon Gold Resources, Inc., unless otherwise indicated.

GENERAL

     Dragon Gold Resources, Inc. was originally incorporated under the laws of
the state of Nevada as Folix Technologies Inc. ("Folix"), on December 13, 2000.
Under the terms of an exchange agreement executed on July 14, 2004, the Company
acquired 100% of the issued and outstanding common stock of Dragon Minerals
Holdings, Inc. ("Dragon"), the holding company for Dragon Minerals Inc., an
international business company incorporated under the laws of the British Virgin
Islands ("Dragon Minerals"). Simultaneous thereafter, Folix changed its name to
Dragon Gold Resources, Inc. On May 5, 2006, the Company and Dragon Mineral
Holdings, Inc. terminated their agreement dated July 14, 2004.

RISK FACTORS

     We are subject to all the risks inherent to a Exploration stage company.
These risks include, but are not limited to, a limited operating history,
dependency on key personnel, limited resources, possible failure of our research
and Exploration efforts, failure to complete adequate financings and failure to
meet contractual obligations. Our operating results may be materially affected
by the "RISK FACTORS" discussed below as well as other risks and uncertainties
not discussed herein:

RISKS RELATED TO OUR BUSINESS

     NEED FOR ADDITIONAL FINANCING. Because the Company has not yet generated
either revenues or earnings, it has been dependent on the sale of shares, or
loans from related parties. While the Company no longer has any development
obligations, administration costs continue. There can be no guaranty that the
Company will be able to sell stock or obtain such loans in the future. However,
unless it is able to procure funds from these or other sources, it will be
unable to execute its business plan for the next twelve months or continue as a
going concern.

  RELIANCE ON KEY MANAGEMENT. The Company's success depends upon the personal
efforts and abilities of Johannes Petersen, a Director of the Company and the
Company's Chief Executive Officer and President, and Xiaojun ("Albert") Cui, a
Director of the Company. The Company's ability to operate and implement its
business plan is heavily dependent on the continued service of Messrs. Petersen
and Cui, and the Company's ability to attract, retain and motivate qualified
consultants and other outsourced labor. The Company faces aggressive and
continued competition for such personnel, qualified consultants and other
outsourced labor. The Company cannot be certain that it will be able to attract,
retain and motivate such personnel, qualified consultants and other outsourced
labor. The loss of Mr. Petersen or Mr. Cui, or the Company's inability attract,
retain and motivate such personnel, qualified consultants and other outsourced
labor would have a material adverse effect on the Company's business and
operations.

       OUR AUDITORS HAVE EXPRESSED SUBSTANTIAL DOUBT AS TO WHETHER OUR COMPANY
CAN CONTINUE AS A GOING CONCERN. Our Company is in its early Exploration stage,
as the Company does not currently offer any products or services and planned
principal activities have not begun. We have not generated any revenues since
inception and have incurred substantial losses. The Company had accumulated
losses of $2,691,631 as of June 30, 2006. Additionally, the Company has no
current prospects for future revenues. These factors among others indicate that
the Company may be unable to continue as a going concern, particularly in the
event that it cannot raise capital through debt or equity financing to conduct
its operations.
<PAGE>

RISKS RELATED TO OUR COMMON STOCK

     WE HAVE NOT CREATED A MARKET TO SUSTAIN THE SIGNIFICANT AMOUNT OF SHARES IN
OUR PUBLIC FLOAT. We have a substantial amount of shares of common stock in our
public float that were issued prior to the acquisition of Dragon and our change
in business focus, however, we have not created a market for our common stock.
We may not have adequate time to create such a market prior to the time our
shareholders resell their shares. If our shareholders resell their shares before
we can create a market, it may exert downward pressure on the price of our
common stock.

     IF THERE'S A MARKET FOR OUR COMMON STOCK, OUR STOCK PRICE MAY BE VOLATILE.
If there is a market for our common stock, we anticipate that such market will
be subject to wide fluctuations in response to several factors, including, but
not limited to:
     (1) Actual or anticipated variations in our results of operations; (2) Our
     ability or inability to generate new revenues; (3) Increased competition;

Furthermore, because our common stock is traded on the NASD over the counter
bulletin board, our stock price may be impacted by factors that are unrelated or
disproportionate to our operating performance. These market fluctuations, as
well as general economic, political and market conditions, such as recessions,
interest rates or international currency fluctuations may adversely affect the
market price of our common stock.

Three months ended June 30, 2006 Compared to three months ended June 30, 2005

The Company had no revenues for either the three months ended June 30, 2006 or
the three months ended June 30, 2005.

Expenses for the Company increased by $739,421 or 135.61% to $1,284,648 for the
three months ended June 30, 2006 from $545,227 for the three months ended June
30, 2005. This increase consisted of increases in consulting of $861,855, and an
increase in accounting and auditing costs of $12,495 which were partially offset
by decreases in legal and organizational costs of $224, foreign exchange costs
of $1,623, general and administration expenses of $11,199, a reduction in
impairment losses of $64,851, in rent of $6,403 and travel and promotion of
$50,629.

As a result of the foregoing, the Company's net operating loss for the three
months ended June 30, 2006 increased to $1,284,648 or ($.02) per share from a
loss of $545,227 or ($.01) per share for the three months ended June 30, 2005.

Liquidity and Capital Resources

As of June 30, 2006, the Company had cash of $23,962 and working capital of
$20,479.

Net cash used in operating activities decreased by $133,665 to $15,104 for the
three months ended June 30, 2006 from $148,769 for the three months ended June
30, 2005. This decrease resulted from an increase in the net operating loss of
$739,421, a reduction in deferred compensation of $4,688, a reduction in
impairment loss on mineral property acquisition costs of $64,851 and net changes
in the current accounts of $6,258, which were offset by an increase in shares
issued for services of $915,883 and in expenses paid by related parties of
$33,000.

Net cash used in investing activities decreased to $0 for the three months ended
June 30, 2006 from $65,438 for the three months ended June 30, 2005. During the
three months ended June 30, 2005, the Company purchased mineral properties for
$64,851, and plant and equipment for $587.

Cash provided by financing activities totaled $35,000 for the three months ended
June 30, 2006 and $300,000 for the three months ended June 30, 2005. All of the
proceeds for each period were from the sale of common stock.
<PAGE>

As a result of the Company executing termination agreements during the three
months ended June 30, 2006, which effectively terminated all of the outstanding
letters of intent and cooperative agreements, the Company's need for immediate
cash has been reduced. However, administrative costs and expenses continue.

Because the company has not yet generated revenue or earnings, it has been
dependent on the sale of its shares or loans from related parties. There is no
guaranty that the Company will be able to procure such loans or sell its shares
in the future. However, unless it is able to generate funds from such sources in
the future, it will be unable to execute its business plan or continue its
operations for the next twelve months.

ITEM 3.   CONTROLS AND PROCEDURES

(a)  Evaluation  of  disclosure  controls and  procedures.  Our chief  executive
     officer and principal financial officer, after evaluating the effectiveness
     of the Company's  "disclosure  controls and  procedures" (as defined in the
     Securities  Exchange Act of 1934 Rules  13a-15(e) and  15d-15(e)) as of the
     end of the period covered by this quarterly report (the "Evaluation Date"),
     have concluded that as of the Evaluation Date, our disclosure  controls and
     procedures  were  not  effective  and  designed  to  ensure  that  material
     information  required to be disclosed by the Company in the reports that it
     files or submits under the Exchange Act of 1934 is 1) recorded,  processed,
     summarized  and  reported,   within  the  time  periods  specified  in  the
     Commission's rules and forms; and 2) accumulated and communicated to him as
     appropriate to allow timely decisions regarding required disclosure.

In connection with the quarterly review for the period ended June 30, 2006, our
independent registered public accounting firm informed us that we have
significant deficiencies, constituting material weaknesses as defined by the
standards of the Public Company Accounting Oversight Board. The material
weaknesses were in our internal controls over accounting for non-routine
transactions and preparation of certain financial statement disclosures in
accordance with U.S.G.A.A.P.


(b)  Changes  in  internal  control  over  financial  reporting.   We  have  not
     experienced  any changes in our internal  control over financial  reporting
     during our most recent fiscal  quarter that  materially  affected,  or were
     reasonably likely to materially affect, our internal control over financial
     reporting.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

     The Company currently is not a party to any material legal proceedings and,
to the Company's knowledge; no such proceedings are threatened or contemplated.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

     During the three months ended June 30, 2006, the Company issued 700,000
shares of its common stock for $35,000.

ITEM 3.  DEFAULT UPON SENIOR SECURITIES.

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 5.  OTHER INFORMATION.

None.

ITEM 6.  EXHIBITS
<PAGE>

     a.   Exhibits

Exhibit Number              Description of Exhibit
----------------------            ------------------------------

31.1 Certification  of Chief  Executive  Officer  and  Chief  Financial  Officer
     pursuant to 18 U.S.C.  Section 1350, as adopted  pursuant to Section 302 of
     the Sarbanes-Oxley Act of 2002

32.1 Certification  of Chief  Executive  Officer  and  Chief  Financial  Officer
     pursuant to 18 U.S.C.  Section 1350, as adopted  pursuant to Section 906 of
     the Sarbanes-Oxley Act of 2002


                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                  DRAGON GOLD RESOURCES, INC.

                                                   By:  /s/ Johannes Petersen
                                                 ----------------------------
                                                            Johannes Petersen
                                                       Dated: August 21, 2006
                                                      Chief Executive Officer
                                                  and Chief Financial Officer


<PAGE>



Exhibit  31.1  Certification  of Chief  Executive  Officer  and Chief  Financial
Officer  pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 302
of the Sarbanes-Oxley Act of 2002

I, Johannes Petersen, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Dragon Gold
Resources, Inc.

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and I have:

         a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, is made known to me by others
within those entities, particularly during the period in which this quarterly
report is being prepared;

         b) evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

         c) presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on my evaluation
as of the Evaluation Date;

5. I have disclosed, based on my most recent evaluation, to the registrant's
auditors and the audit committee of registrant's board of directors (or persons
performing the equivalent function):

         a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

         b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

6. I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

Dated: August 21, 2006

By: /s/ Johannes Peterson
Johannes Peterson
Chief Executive Officer and Chief Financial Officer



<PAGE>



Exhibit  32.1  Certification  of Chief  Executive  Officer  and Chief  Financial
Officer  pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002

--------------------------------------------------------------------------------

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO
18  U.S.C.   SECTION  1350,   AS  ADOPTED   PURSUANT  TO  SECTION  906  OF  TEHE
SARBANES-OXLEY ACT OF 2002

I, Johannes Petersen, certify, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly
Report of Dragon Gold Resources, Inc. on Form 10-QSB for the quarterly period
ended June 30, 2006 fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934 and that information contained in
such Form 10-QSB fairly presents in all material respects the financial
condition and results of operations of Dragon Gold Resources, Inc.

----------------------------

By: /s/ Johannes Petersen
Name: Johannes Petersen
Title: Chief Executive Officer

And Chief Financial Officer

August 21, 2006