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 September 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)

                              +44 (0) 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 November 10, 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.
(Formerly Folix Technologies, Inc.)
(An Exploration Stage Company)
(Unaudited)

                          PART I. FINANCIAL INFORMATION

                                      Index

Item 1 Financial Statements
     Unaudited Balance Sheet as of September 30, 2006                         3

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

     Unaudited Statements of Cash Flows for the six months ended in September
     30, 2006 And September 30, 2005                                          5

Notes to the Financial Statements                                             6

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





<PAGE>




                          Part I. Financial Statements

Item 1.  Financial Statements

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


                                                                September 30,
                                                                    2006
                                                                      $

Assets

Current Assets

Cash                                                                  6,942
Prepaid expenses and deposits                                         7,813
Due from related parties                                                334
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Total Current Assets                                                 15,089

Intangible Assets                                                     7,188
Property and Equipment                                                2,165
--------------------------------------------------------------------------------

Total Assets                                                         24,442
--------------------------------------------------------------------------------


Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable                                                     14,582
--------------------------------------------------------------------------------

Total Current Liabilities                                            14,582
--------------------------------------------------------------------------------

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                                        2,683,447

Deficit Accumulated During the Exploration Stage                 (2,723,534)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Total Stockholders' Equity                                            9,860
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Total Liabilities and Stockholders' Equity                           24,442
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------





                 The accompanying notes are an integral part of
                           the financial statements.


                                       3
<PAGE>

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

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


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


Expenses

   Accounting and audit                       $12,958           $8,365           $27,383        $10,295                $82,848
   Depreciation and amortization                1,431            1,431             2,861          2,861                 11,562
   Consulting                                  12,187           77,733         1,272,820        476,511              1,990,848
   Foreign exchange                                78              855             (407)          1,993                  4,047
   General and administrative                     383            7,074               895         18,785                 47,433
   Legal and organizational                     1,866            8,675             6,999         14,032                 77,516
   Impairment loss on mineral property
   acquisition costs                                -           14,219                 -         79,070                282,141
   Rent                                         3,000            9,157             6,000         18,560                 61,121
   Travel and promotion                             -           27,552                 -         78,181                167,018
--------------------------------------------------------------------------------------------------------------------------------

Total Expenses                                 31,903          155,061         1,316,551        700,288              2,724,534
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

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

Net Loss                                     $(31,903)      $(155,061)       $(1,316,551)    $(700,288)            $(2,723,534)
--------------------------------------------------------------------------------------------------------------------------------



Net Loss Per Share - Basic and Diluted         $(0.00)         $(0.00)            $(0.03)        $(0.01)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------

Weighted Average Shares Outstanding        49,950,000       53,630,000        57,350,000     50,630,000
--------------------------------------------------------------------------------------------------------------------------------

</TABLE>


                 The accompanying notes are an integral part of
                           the financial statements.



                                       4
<PAGE>


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

<TABLE>

                                                                                                   Accumulated From
                                                                       Six Months Ended           December 13, 2000
                                                                                                  Date of Inception)
                                                                                                          to
                                                              ------------------------------------
                                                                September 30,     September 30,     September 30,
                                                                     2006             2005               2006
                                                                      $                 $                 $
<S>                                                                <C>             <C>              <C>


Operating Activities

Net loss                                                             (1,316,551)            (700,288)      (2,723,534)

Adjustments to reconcile net loss to net cash used
in operating activities
   Depreciation and amortization                                          2,861                2,861           11,562
   Deferred compensation                                                      -                9,376                -
   Expenses paid by related party                                        43,500                    -           96,500
   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                                             8,516               (1,886)           4,687
Accounts payable and accrued liabilities                                 (7,931)               1,571           13,509
Amounts due to related parties                                          (21,294)              (1,833)          (5,370)
----------------------------------------------------------------------------------------------------------------------
-
Net Cash Used in Operating Activities                                   (32,406)            (285,348)        (535,802)
----------------------------------------------------------------------------------------------------------------------

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 received on stock subscription receivable                         -              100,000                -
   Proceeds from issuance of common shares                               35,000              300,000          833,055
----------------------------------------------------------------------------------------------------------------------

Net Cash Provided by Financing Activities                                35,000              400,000          845,800
----------------------------------------------------------------------------------------------------------------------

Increase in cash                                                          2,594               49,214            6,942

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

Cash - end of period                                                      6,942               60,494            6,942
----------------------------------------------------------------------------------------------------------------------

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        1,614,633
   Issuance of common stock for acquisition of subsidiary                     -                -          165,000
   Issuance of common stock for settlement of related party
   loans                                                                 30,000                -           37,708
----------------------------------------------------------------------------------------------------------------------
</TABLE>

                 The accompanying notes are an integral part of
                            the financial statements.


                                       5
<PAGE>



Dragon Gold Resources, Inc.
(An Exploration Stage Company)
Notes to the Financial Statements
(expressed in U.S. dollars)



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 September
     30, 2006, the Company has accumulated losses of $2,723,534 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 six month period ended September 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 terminated its agreement with its 100% wholly
     owned subsidiary, Dragon Minerals Holdings Inc. Refer to Note 3.
     Comparative amounts, for the statement of operations and statement of cash
     flows for the three months and six months ending September 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 (d) and (e), respectively). During the year
     ended March 31, 2006 and the six months ended September 30, 2006, DMHI
     incurred expenses of $3,307 and $3,500, respectively.


                                       6
<PAGE>


4.       Related Party Transactions
(a)      The amount due from related parties at September 30, 2006 of $334
         represents expenses of $159 paid on behalf of the Company by a former
         Director and offset by $493 advanced to current directors. These
         amounts are non-interest bearing, unsecured and have no specific terms
         of repayment.
(b)      During the six months ended September 30, 2006, the Company incurred
         $804,633 (2005 - $372,500) 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 six months ended September 30, 2006, the Company incurred
         $337,500 (2005 - $60,000) 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 six months' services donated by the President.
(d)      During the six months ended September 30, 2006, the Company incurred
         $120,000 (2005 - $33,860) 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 six months ended  September 30, 2006, the Company recognized
         $37,500 for donated  services and $6,000 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.
(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.


                                       7
<PAGE>



5.        Mineral Properties
(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 a 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:

                                             Six Months Ended
                                            September 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 September 30, 2006, there were no stock options outstanding.



                                       8
<PAGE>


7.       Stock Options (continued)

     The following table illustrates the effect on the September 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>

                                                                           Six Months Ended
                                                                          September 30, 2005
<S>                                                                       <C>

      Net Loss - as reported                                                 $ (700,288)
        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                                                    $(856,607)
                                                                          ==================

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

      Basic and diluted net loss per share - Pro-Forma                          $ (0.02)
                                                                          ==================
</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.


                                       9
<PAGE>


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

This report contains forward looking statements within the meaning of Section
27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act
of 1934. These forward looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical results or anticipated results, including those set forth under "RISK
FACTORS" in this "Management's Discussion and Analysis or Plan of Operation" and
elsewhere in this report. The following discussion and analysis should be read
in conjunction with the Company's financial statements and notes thereto
included in Form 10-KSB for the year ended March 31, 2006.

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

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

Expenses for the Company decreased by $123,158 or 79.4% to $31,903 for the three
months ended September 30, 2006 from $155,061 for the three months ended
September 30, 2005. This decrease consisted of decreases in consulting of
$65,546, in foreign exchange costs of $777, in general and administration
expenses of $6,691, in legal and organizational costs of $6,809, a reduction in
impairment losses of $14,219, in rent of $6,157 and in travel and promotion of
$27,552. These decreases were partially offset by an increase in accounting and
audit costs of $4,593.

As a result of the foregoing, the Company's net operating loss for the three
months ended September 30, 2006 decreased to $31,903 from a loss of $155,061 for
the three months ended September 30, 2005.

Six months ended September 30, 2006 Compared to six months ended September 30,
2005

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

Expenses for the Company increased by $616,263 or 88% to $1,316,551 for the six
months ended September 30, 2006 from $700,288 for the six months ended September
30, 2005. This increase consisted of an increase in consulting of $796,309, and
an increase in accounting and auditing costs of $17,088. These increases were
partially offset by decreases in legal and organizational costs of $7,033,
foreign exchange costs of $2,400, general and administration expenses of
$17,890, a reduction in impairment losses of $79,070, in rent of $12,560 and in
travel and promotion of $78,181.

As a result of the foregoing, the Company's net operating loss for the six
months ended September 30, 2006 increased to $1,316,551 or ($.03) per share from
a loss of $700,288 or ($.01) per share for the six months ended September 30,
2005.

Liquidity and Capital Resources

As of September 30, 2006, the Company had cash of $6,942 and positive working
capital of $507.

Net cash used in operating activities decreased by $252,942 to $32,406 for the
six months ended September 30, 2006 from $285,348 for the six months ended
September 30, 2005.

This decrease resulted from an increase in the net operating loss of $616,263, a
reduction in deferred compensation of $9,376, a reduction in impairment loss on
mineral property acquisition costs of $64,851, net changes in the current
accounts of $15,951. The aforementioned changes were in great measure offset by
an increase in shares issued for services of $915,883 and in expenses paid by
related parties of $43,500.

Net cash used in investing activities decreased to $0 for the six months ended
September 30, 2006 from $65,438 for the six months ended September 30, 2005. For
the six months ended September 30, 2006, the company didn't purchase any mineral
properties or equipment. This compares with the purchase of mineral properties
for $64,851, and the purchase of plant and equipment for $587 during the six
months ended September 30, 2005.

                                       10
<PAGE>

Cash provided by financing activities totaled $35,000 for the six months ended
September 30, 2006 and $400,000 for the six months ended September 30, 2005. All
of the proceeds for each period were from the sale of common stock.

As a result of the Company executing termination agreements during the six
months ended September 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
dependant on the sale of its shares on 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.

RISK FACTORS

We are subject to all the risks inherent to an 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 property
acquisition and exploration efforts, failure to complete adequate financings and
failure to meet contractual obligations. Our operating results may be materially
affected by such risk factors.


                                       11
<PAGE>


ITEM 3.   CONTROLS AND PROCEDURES

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 weakness 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.

     (a) Evaluation of disclosure controls and procedures. Due to the material
weaknesses in our internal control over financial reporting described above, 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.

     (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.

     None

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

     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 Accounting Officer
         pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
         of the Sarbanes-Oxley Act of 2002


                                       12
<PAGE>

                                   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: November 14, 2006             Chief Executive Officer
                                     and Chief Financial Officer


                                       13
<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: November 14,  2006

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


                                       14
<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 THE
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  September 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
November 14, 2006


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