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

                                  FORM 10-QSB/A
                                Amendment No. 1

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

                For  the  quarterly  period  ended  December  31,  2004

( ) 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

     51,096,724 shares of issuer's common stock, $.001 par value, were
outstanding as of February 6, 2005. The Company has no other class of common
equity.

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


<PAGE>


                          PART  I.  FINANCIAL  INFORMATION

Dragon  Gold  Resources,  Inc.
(formerly  Folix  Technologies,  Inc.)
(An  Exploration  Stage  Company)
(Unaudited)

                                                                     Index

Consolidated  Balance  Sheets                                         F-1

Consolidated  Statements  of  Operations                              F-2

Consolidated  Statements  of  Cash  Flows                             F-3

Notes  to  the  Consolidated  Financial  Statements                   F-4


<PAGE>


Dragon  Gold  Resources,  Inc.
(formerly  Folix  Technologies,  Inc.)
(An  Exploration  Stage  Company)
Consolidated  Balance  Sheets
(expressed  in  U.S.  dollars)




                                                      December 31,     March 31,
                                                          2004            2004
                                                            $               $
                                                       (Unaudited)
(Audited)

Assets

Current Assets

Cash                                                       38,303     101,029
Prepaid expenses and deposits                               4,240           -
------------------------------------------------------------------------------
Total Current Asset                                        42,543     101,029
------------------------------------------------------------------------------
Intangible Assets (Note 3)                                 13,751           -
Plant and Equipment (Note 4)                                4,979

Total Assets                                               61,273     101,029

Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable                                            5,626       1,478
Accrued liabilities                                         4,000      10,176
Due to related parties (Note 6(a))                          1,813       6,388
------------------------------------------------------------------------------
Total Current Liabilities                                  11,439      18,042
------------------------------------------------------------------------------
Commitments (Note 1 and 10)

Stockholders' Equity

Common Stock, 500,000,000 common shares
authorized with a par value of $0.001,
50,896,794 and 50,396,794 common shares issued and
outstanding, respectively                                  50,897      50,397

Additional Paid In Capital                                424,972      60,472

Deficit Accumulated During the Exploration Stage         (426,035)    (27,882)
------------------------------------------------------------------------------
Total Stockholders' Equity                                 49,834      82,987
------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity                 61,273     101,029
------------------------------------------------------------------------------



                                       F-1
    (The accompanying notes are an integral part of the financial statements)

<PAGE>



Dragon  Gold  Resources,  Inc.
(formerly  Folix  Technologies,  Inc.)
(An  Exploration  Stage  Company)
Consolidated  Statements  of  Operations
(expressed  in  U.S.  dollars)
(Unaudited)
<TABLE>


                                                                                                  Accumulated
                                                                                                      From
                                                                                                  December 13,
                                                Three Months Ended     Nine Months Ended          2000 (Date of
                                            ----------------------------------------------------   Inception) to
                                             December 31, December 31,  December 31, December 31, December 31,
                                               2004          2003         2004          2003          2004
                                                 $             $            $            $              $
<S>                                         <C>            <C>           <C>          <C>           <C>


Revenue                                             -             -             -             -           -
------------------------------------------------------------------------------------------------------------
Expenses
     Accounting  and  audit                     8,000             -        11,300             -      11,300
     Amortization                               1,286             -         1,598             -       1,598
     Consulting  (Note  6(b))                  53,614             -        93,414             -      93,414
     Foreign  exchange                            330             -           903             -         903
     General  and  administrative                 385             -        10,561             -      10,561
     Legal  and  organizational                 7,767             -        28,374             -      28,374
     Mineral  property  costs                       -             -       184,579             -     184,579
     Rent  and  utilities                      13,021             -        19,141             -      19,141
     Travel  and  promotion                    21,347             -        28,489             -      28,489
------------------------------------------------------------------------------------------------------------
Total Expenses                                105,750             -       378,359             -      378,359
------------------------------------------------------------------------------------------------------------
Net Loss Before Discontinued Operations      (105,750)            -      (378,359)            -     (378,359)

Discontinued operations (Note 9)                    -        (6,089)      (19,794)      (13,952)     (47,676)
------------------------------------------------------------------------------------------------------------
Net Loss for the Period                      (105,750)       (6,089)     (398,153)      (13,952)    (426,035)
------------------------------------------------------------------------------------------------------------
Net Loss Before Discontinued Operations             -             -         (0.01)            -
Net Loss From Discontinued Operations               -             -             -             -
Net Loss Per Share - Basic and Diluted              -             -         (0.01)            -
------------------------------------------------------------------------------------------------------------
Weighted Average Shares Outstanding        50,897,000    46,893,000    53,391,000    46,690,000
------------------------------------------------------------------------------------------------------------

</TABLE>


                                       F-2
    (The accompanying notes are an integral part of the financial statements)

<PAGE>



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


<TABLE>


                                                                Nine Months    Nine Months
                                                                   Ended          Ended
                                                                December 31,   December 31,
                                                                    2004          2003
                                                                     $             $
<S>                                                              <C>            <C>

Cash Flows to Operating Activities

Net loss for the period                                          (398,153)   (13,952)

Adjustments to reconcile net loss to net cash used
In operating activities
Amortization                                                        1,598          -
Mineral property costs                                            165,000          -

Change in operating assets and liabilities
(Increase) in deposits and prepaid expenses                        (4,240)      (765)
(Decrease) in accounts payable and accrued liabilities             (2,028)      (250)
(Decrease) in amounts due to related parties                       (4,575)       709
-------------------------------------------------------------------------------------
Net Cash Used in Operating Activities                            (242,398)   (14,258)
-------------------------------------------------------------------------------------
Cash Flows from Investing Activities

Purchase of property and equipment                                 (5,328)
Purchase of intangible assets                                     (15,000)         -
-------------------------------------------------------------------------------------
Net Cash Used in Investing Activities                             (20,328)         -
-------------------------------------------------------------------------------------
Cash Flows from Financing Activities

Proceeds from related party loan                                        -     10,008
Proceeds from issuance of common shares                           200,000      5,000
-------------------------------------------------------------------------------------
Net Cash Provided by Financing Activities                         200,000     15,008
-------------------------------------------------------------------------------------
Increase (decrease) in cash                                       (62,726)       750

Cash - beginning of period                                        101,029         87
-------------------------------------------------------------------------------------
Cash - end of period                                               38,303        837
-------------------------------------------------------------------------------------

Non-Cash Financing Activities
Issuance of common stock for acquisition of subsidiary            165,000          -
Issuance of common stock for settlement of related party loans          -      7,708
Cancellation of common stock                                      (16,400)         -
-------------------------------------------------------------------------------------
Supplemental Disclosures

Interest paid                                                           -          -
Income tax paid                                                         -          -


</TABLE>

                                       F-3
    (The accompanying notes are an integral part of the financial statements)


<PAGE>


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

1.   Development  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. During
     the nine month period ending December 31, 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 mineral property acquisition and
     exploration in China. Refer to Note 4.

     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 period with the
     acquisition of its interest in Dragon Minerals Holdings, Inc. The Company
     has not presently determined whether its properties contain mineral
     reserves that are economically recoverable. 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 has never paid any dividends and is unlikely to pay dividends
     or 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 at December 31 2004, the Company has
     accumulated losses of $426,035 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

     During the prior fiscal year, the Company raised $100,000 from an offering
     under an SB-2 Registration Statement that was declared effective December
     19, 2003. During the three month period ending September 30, 2004, the
     Company sold 400,000 common shares for cash proceeds of $200,000.

2.   Summary  of  Significant  Accounting  Policies
     (a)  Basis  of  Presentation
          These  financial  statements  and  related  notes  are  presented  in
          accordance with accounting principles generally accepted in the United
          States, and are expressed in US dollars. The Company's fiscal year end
          is  March  31.  These financial statements include the accounts of the
          Company and its wholly-owned subsidiary, Dragon Minerals Holdings Inc.
          ("DMHI").  Dragon  Minerals Inc. is a wholly owned subsidiary of DMHI.
          During the three months ended December 31, 2004, DMHI formed three new
          wholly  owned  subsidiaries  ("subsidiaries") each incorporated in the
          British Virgin Islands. These subsidiaries are Dragon Minerals-Shiquan
          Inc.,  Dragon Minerals-Taiyu Inc. and Dragon Minerals-Xunyang Inc. All
          intercompany  transactions  and  balances  have  been  eliminated.
<PAGE>

     (b)  Use  of  Estimates
          The preparation of financial statements in conformity with accounting
          principles generally accepted in the United States requires management
          to make estimates and assumptions that affect the reported amounts of
          assets and liabilities and disclosure of contingent assets and
          liabilities at the date of the financial statements and the reported
          amounts of revenues and expenses during the periods. Actual results
          could differ from those estimates.

     (c)  Cash  and  Cash  Equivalents

          The Company considers all highly liquid instruments with a maturity of
          three months or less at the time of issuance to be cash equivalents.

     (d)  Foreign  Currency  Translation

          The Company's functional and reporting currency is the United States
          dollar. Monetary assets and liabilities denominated in foreign
          currencies are translated using the exchange rate prevailing at the
          balance sheet date. Gains and losses arising on translation or
          settlement of foreign currency denominated transactions or balances
          are included in the determination of income. Foreign currency
          transactions are undertaken primarily in Canadian dollars and British
          pounds. The Company has not, to the date of these financials
          statements, entered into derivative instruments to offset the impact
          of foreign currency fluctuations.

     (e)  Basic  and  Diluted  Net  Income  (Loss)  Per  Share

          The Company computes net income (loss) per share in accordance with
          SFAS No. 128, "Earnings per Share" (SFAS 128). SFAS 128 requires
          presentation of both basic and diluted earnings per share (EPS) on the
          face of the income statement. Basic EPS is computed by dividing net
          income (loss) available to common shareholders (numerator) by the
          weighted average number of shares outstanding (denominator) during the
          period. Diluted EPS gives effect to all dilutive potential common
          shares outstanding during the period including stock options, using
          the treasury stock method, and convertible preferred stock, using the
          if-converted method. In computing Diluted EPS, the average stock price
          for the period is used in determining the number of shares assumed to
          be purchased from the exercise of stock options or warrants. Diluted
          EPS excludes all dilutive potential shares if their effect is anti
          dilutive.

     (f)  Financial  Instruments

          Financial instruments which include cash and equivalents, prepaid
          expenses, deposits, accounts payable, accrued liabilities, and due to
          related parties were estimated to approximate their carrying values
          due to the immediate or short-term maturity of these financial
          instruments. Virtually all of the Company's assets and liabilities are
          giving rise to significant exposure to market risks from changes in
          foreign currency rates. The financial risk is the risk to the
          Company's operations that arise from fluctuations in foreign exchange
          rates and the degree of volatility of these rates. Currently, the
          Company does not use derivative instruments to reduce its exposure to
          foreign currency risk.
<PAGE>

     (g)  Comprehensive  Loss

          SFAS No. 130, "Reporting Comprehensive Income," establishes standards
          for the reporting and display of comprehensive loss and its components
          in the financial statements. As of December 31, 2004 the Company has
          no items that represent comprehensive loss and, therefore, has not
          included a schedule of comprehensive loss in the financial statements.

     (h)  Mineral  Property  Costs

          The Company has been in the exploration stage since its acquisition of
          Dragon Minerals Holdings, Inc. on July 15, 2004 and has not yet
          realized any revenues from its planned operations. It is primarily
          engaged in the acquisition and exploration of mining properties.
          Mineral property acquisition and exploration costs are expensed as
          incurred. When it has been determined that a mineral property can be
          economically developed as a result of establishing proven and probable
          reserves, the costs incurred to develop such property, are
          capitalized. Such costs will be amortized using the
          units-of-production method over the estimated life of the probable
          reserve.

     (i)  Interim Financial Statements These interim unaudited financial
          statements have been prepared on the same basis as the annual
          financial statements and in the opinion of management, reflect all
          adjustments, which include only normal recurring adjustments,
          necessary to present fairly the Company's financial position, results
          of operations and cash flows for the periods shown. The results of
          operations for such periods are not necessarily indicative of the
          results expected for a full year or for any future period.

     (j)  Website  Development  Costs

          The Company recognizes the costs associated with developing a website
          in accordance with the American Institute of Certified Public
          Accountants ("AICPA") Statement of Position ("SOP") No. 98-1,
          "Accounting for the Costs of Computer Software Developed or Obtained
          for Internal Use". Relating to website development costs the Company
          follows the guidance pursuant to the Emerging Issues Task Force (EITF)
          No. 00-2, "Accounting for Website Development Costs".

          Capitalized costs associated with the website consist primarily of
          payments to a third party for development of web pages. These
          capitalized costs will be amortized based on their estimated useful
          life over four years. Payroll and related costs are not capitalized,
          as the amounts principally relate to maintenance. Internal costs
          related to the development of website content are expensed as
          incurred.

     (k)  Property  and  Equipment

          Property and equipment consists of computer hardware and is recorded
          at cost. The computer hardware is being amortized on a straight-line
          basis over its estimated life of three years.
<PAGE>

     (l)  Long-Lived  Assets

          In accordance with SFAS No. 144, "Accounting for the Impairment or
          Disposal of Long Lived Assets", the carrying value of long-lived
          assets is reviewed on a regular basis for the existence of facts or
          circumstances that may suggest impairment. The Company recognizes
          impairment when the sum of the expected undiscounted future cash flows
          is less than the carrying amount of the asset. Impairment losses, if
          any, are measured as the excess of the carrying amount of the asset
          over its estimated fair value.

     (m)  Recent  Accounting  Pronouncements

          In December 2004, FASB issued SFAS No. 153, "Exchanges of Nonmonetary
          Assets - An Amendment of APB Opinion No. 29". The guidance in APB
          Opinion No. 29, "Accounting for Nonmonetary Transactions", is based on
          the principle that exchanges of nonmonetary assets should be measured
          based on the fair value of the assets exchanged. The guidance in that
          Opinion, however, included certain exceptions to that principle. SFAS
          No. 153 amends Opinion No. 29 to eliminate the exception for
          nonmonetary exchanges of similar productive assets and replaces it
          with a general exception for exchanges of nonmonetary assets that do
          not have commercial substance. A nonmonetary exchange has commercial
          substance if the future cash flows of the entity are expected to
          change significantly as a result of the exchange. The provisions of
          SFAS No. 153 are effective for nonmonetary asset exchanges occurring
          in fiscal periods beginning after June 15, 2005. Early application is
          permitted and companies must apply the standard prospectively. The
          adoption of this standard is not expected to have a material effect on
          the Company's results of operations or financial position.

      (l)  Recent  Accounting  Pronouncements

In December 2004, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard (SFAS) No. 123R, "Share Based
Payment". SFAS 123R is a revision of SFAS No. 123 "Accounting for Stock-Based
Compensation", and supersedes APB Opinion No. 25, "Accounting for Stock Issued
to Employees" and its related implementation guidance. SFAS 123R establishes
standards for the accounting for transactions in which an entity exchanges its
equity instruments for goods or services. It also addresses transactions in
which an entity incurs liabilities in exchange for goods or services that are
based on the fair value of the entity's equity instruments or that may be
settled by the issuance of those equity instruments. SFAS 123R focuses primarily
on accounting for transactions in which an entity obtains employee services in
share-based payment transactions. SFAS 123R does not change the accounting
guidance for share-based payment transactions with parties other than employees
provided in SFAS 123 as originally issued and Emerging Issues Task Force Issue
No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than
Employees for Acquiring, or in Conjunction with Selling, Goods or Services".
SFAS 123R does not address the accounting for employee share ownership plans,
which are subject to AICPA Statement of Position 93-6, "Employers' Accounting
for Employee Stock Ownership Plans". SFAS 123R requires a public entity to
measure the cost of employee services received in exchange for an award of
equity instruments based on the grant-date fair value of the award (with limited
exceptions). That cost will be recognized over the period during which an
employee is required to provide service in exchange for the award - the
requisite service period (usually the vesting period). SFAS 123R requires that
the compensation cost relating to share-based payment transactions be recognized
in financial statements. That cost will be measured based on the fair value of
the equity or liability instruments issued. The scope of SFAS 123R includes a
wide range of share-based compensation arrangements including share options,
restricted share plans, performance-based awards, share appreciation rights, and
employee share purchase plans. Public entities (other than those filing as small
business issuers) will be required to apply SFAS 123R as of the first interim or
annual reporting period that begins after June 15, 2005. Public entities that
file as small business issuers will be required to apply SFAS 123R in the first
interim or annual reporting period that begins after December 15, 2005. For
nonpublic entities, SFAS 123R must be applied as of the beginning of the first
annual reporting period beginning after December 15, 2005. The adoption of this
standard is not expected to have a material effect on the Company's results of
operations or financial position.
<PAGE>

3.     Intangible  Assets

<TABLE>



                                                                  December  31,     March  31,
                                                                      2004           2004
                                                 Accumulated     Net Carrying     Net Carrying
                                       Cost     Amortization         Value           Value
                                        $             $                 $               $
<S>                                  <C>       <C>              <C>               <C>


Website development costs            15,000         1,249             13,751             -
-----------------------------------------------------------------------------------------------



4.     Property  and  Equipment




                                                                   December  31,     March  31,
                                                                       2004             2004
                                                   Accumulated    Net  Carrying     Net  Carrying
                                       Cost        Amortization        Value           Value
                                         $               $                $               $

Computer equipment                    5,328            349             4,979             -
-------------------------------------------------------------------------------------------------------
</TABLE>



                                       F-7
<PAGE>




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

5.   Acquisition  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 Company
     used the purchase method of accounting for this acquisition and the
     purchase price was allocated to mineral property costs and charged to
     operations.

6.   Related  Party  Transactions

     a)   The amount due to related parties represents expenses of $159 (March
          31, 2004 - $6,388) paid on behalf of the Company by a former Director
          and $1,654 paid on behalf of the Company by current directors. The
          amounts due are non-interest bearing, unsecured and have no specific
          terms of repayment.

     b)   During  the  three  month  period ended December 31, 2004, the Company
          paid  $30,000  (December  31,  2003  -  nil)  for  consulting services
          performed by a director of the Company, $1,200 for consulting services
          performed  by  a  former  director  of  the  Company  and  $14,132 for
          consulting  services  provided  by  a  company  owned by a significant
          shareholder  of  the  Company.  During  the  nine  month  period ended
          December  31,  2004,  the  Company  paid  $65,000 (December 31, 2003 -
          $1,200)  for  consulting  services  performed  by  a  director  of the
          Company,  $8,000  for  consulting  services  performed  by  a  former
          director  of  the Company and $14,132 for consulting services provided
          by  a  company  owned  by a significant shareholder of the Company. Of
          these  amounts,  $2,000  is  included  in  results  from  discontinued
          operations.

     c)   On July 19, 2004 the Company sold to a former director, all rights
          related to the Linux based application server and thin client
          computing system business plan in consideration for $1,000, which is
          included in results from discontinued operations.

7.   Mineral  Properties

     (a)  On February 24, 2004, the Company's wholly-owned subsidiary Dragon
          Minerals Inc. ("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 ("JVC1") for the exploration and development of up to twelve
          properties (the "Permits") located in the Southern Shaanxi Province.
          Pursuant to the Letter of Intent, the Company would contribute cash to
          the joint venture and Bureau would contribute the Permits and their
          previous exploratory findings.
<PAGE>

     (b)  On March 1, 2004, 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 ("JVC2") for the exploration and development of a property
          (the "Permit") 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.

8.   Common  shares

     (a)  On September 6, 2004, the Company cancelled 16,400,000 common shares
          owned by a former Director.

8. Common shares (continued)

     (b)  On August 16, 2004, the Company issued 400,000 common shares at $0.50
          per share for cash proceeds of $200,000.

     (c)  On July 15, 2004, the Company acquired 100% of the issued and
          outstanding shares of Dragon Minerals Holdings Inc., in exchange for
          16,500,000 common shares of the Company. Refer to Note 4.

     (d)  On June 14, 2004, the Company completed a forward split of its common
          stock on a seven for one basis whereas every share of fully paid
          common stock issued and outstanding immediately prior to the forward
          split was changed into seven new shares of the Company. All share
          amounts have been retroactively adjusted for all periods presented.
          The increase in common shares was accounted for as a reduction in
          Additional Paid in Capital for all periods presented. Additionally,
          the authorized common shares were increased to 500,000,000 shares of
          common stock and the par value was re-authorized at $0.001 per common
          share.

9.   Discontinued  Operations

     Discontinued operations consist of the Company's former operations in the
     development of a Linux based application server and thin client computing
     systems. In July 2004, the Company sold all rights to certain intangible
     assets related to the Linux business to a former director for consideration
     of $1,000. The results of discontinued operations are summarized as
     follows:

<PAGE>

<TABLE>

                                                                                                  Accumulated From December
                                      Three Months    Three Months     Nine Months     Nine Months    13, 2000 (Date of
                                         Ended           Ended            Ended           Ended       Inception) to
                                       December 31,    December 31,     December 31,     December 31,  December 31,
                                          2004            2003             2004             2003         2004
                                          $                $                $                 $           $
<S>                                    <C>            <C>               <C>            <C>            <C>


Revenue                                   -                  -                 -               -            -
----------------------------------------------------------------------------------------------------------------------------
Net Operating Loss                        -             (6,089)          (20,794)         (13,952)    (48,676)
Gain on disposal                          -                  -             1,000                -       1,000
----------------------------------------------------------------------------------------------------------------------------
Loss From Discontinued Operations         -             (6,089)          (19,794)         (13,952)    (47,676)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

10.     Commitments

     (a)  During the three months ended December 31,2004, the Company entered
          into a consulting agreement ("the Agreement") with a company owned by
          a significant shareholder of the Company, for management and
          geological services. The Agreement is for a period of one year
          commencing October 1, 2004 at $5,625CND per month. Either side can
          terminate the Agreement with 60 days written notice.

     (b)  During the three months ended December 31, 2004, the Company entered
          into a consulting agreement ("the Agreement") with an investor
          relations company. The Agreement is for a period of three months
          commencing December 1, 2004 at $10,000CND per month.

10. Commitments (continued)

     (c)  On January 20, 2005, the Company entered into an option agreement (the
          "Agreement") to acquire a 100% interest, subject to a 2% net smelter
          royalty, in certain mining claims located in Mongolia. Refer to Note
          11.

11.  Subsequent  Event

     (a)  On January 20, 2005, the Company entered into an option agreement (the
          "Agreement") to acquire a 100% interest, subject to a 2% net smelter
          royalty, in certain mining claims located in Mongolia. To acquire its
          interest, the Company must pay CDN$20,000 upon execution of the
          Agreement (paid), CDN$30,000 on or before January 20, 2006, and a
          further CDN$50,000 on or before January 20, 2007. The Company has the
          right to purchase the first two-thirds of the royalty interest at any
          time in consideration of payments of CDN$300,000 for each one-third
          portion. The Company also has the right of first refusal for the
          remaining one-third royalty interest.

     (b)  On January 31, 2005, the Company issued a private placement of 199,930
          common shares at $0.50 per shares for total proceeds of $99,965.

                                      F-10


<PAGE>


ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS.

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. is a corporation originally formed as Folix
Technologies Inc., under the laws of the State of Nevada on December 13, 2000.
We were formed as a high technology development stage company engaged in the
development of an initial product. We have since changed our business focus
pursuant to an exchange agreement entered into on July 15, 2004, where the
Company acquired 100% of the issued and outstanding common stock of Dragon
Minerals Holdings, Inc. ("Dragon"). The Company is a holding company for Dragon
which in turn holds all of the common stock of Dragon Minerals Inc., an
international business company incorporated under the laws of the British Virgin
Islands ("Dragon Minerals").

DESCRIPTION  OF  THE  PRINCIPAL  PRODUCTS  AND  SERVICES

     The Company does not currently offer any products or services. The Company
has signed two letters of intent (the "Letters of Intent") to enter into joint
ventures for gold exploration and potential development of properties located in
Shaanxi, China, discussed in more detail below. Additionally, the Company has
entered into an option agreement for the right to purchase five (5) licenses to
mining claims in Mongolia, discussed below under "subsequent events." The
Letters of Intent anticipate that the Company will contribute cash to the joint
ventures. The other parties to the joint ventures would contribute permits for
exploration and development on an aggregate of up to thirteen (13) properties
(the "Permits"). The Company has also been studying another property in the same
region as the Permits, but has not entered into any agreements or joint ventures
in connection with that property.

     The Company has also completed the review of fifteen (15) other properties
in several Chinese provinces and has discarded them for the purpose of any
future joint venture formation because they failed to satisfy the Company's
investment criteria.

     The Company anticipates forming a separate joint venture for each property
the Company decides to develop. The government of China owns the properties to
which the Permits relate. The Permits grant the right to the mineral resources
found below the surface of the properties.

     The Company has performed a due diligence review of the Permits, and plans
to proceed in establishing sino-foreign joint-ventures for the purpose of
developing one (1) of the properties covered by the Permits and one (1) new
property offered in Shaanxi province, China, which is not covered by the
Permits. However, as of the date of this report, neither of these joint-ventures
have been established, and the Company can make no assurances one or both of
them ever will. The due diligence review involved hiring external consultants to
visit the properties and trips to China by both the Company's Chief Executive
Officer, Johannes Petersen and the Company's Director, Albert Cui, who both
determined that the two (2) properties meet the Company's investment criteria.
The Company anticipates the need for a substantial amount of additional
financing, if the Company decides to proceed with the licensing and exploration
of these properties, of which there can be no assurance. Additionally, the
Company can give no assurance that this substantial amount of additional
financing will be available on favorable terms, if at all.

<PAGE>



     The Letters of Intent contemplate two phases of activities: the exploration
phase and the development phase. The development phase is contingent upon, and
will not proceed unless there are, positive results from the exploration phase.
At this time, the Company has not entered into any joint ventures, contributed
any cash to any joint ventures, selected any properties for gold exploration and
potential development, or started exploration phase activities. However, on
August 30, 2004, the Company sold 400,000 shares of common stock for $200,000
and on January 31, 2005, the Company sold 199,930 shares of common stock for
$99,965. There can be no assurance that these funds will be able to sustain our
business operations until more money is be raised, provided that we will raise
any additional funds at all.

     In addition, the Company has entered into an option agreement for the right
to purchase five (5) licenses to mining claims in Mongolia, discussed below
under "Subsequent Events." The Company is also reviewing geological information
on other mineral properties in other Chinese provinces. We expect these events
to expand the Company's intended area of operations throughout China.

MARKET  OVERVIEW

     Most multi-metallic and gold deposits in the Shaanxi Province of China are
located in the Qinling Mountain belt and surrounding regions. The gold deposits
can be divided into three (3) gold provinces: Xiao Qinling, Qinling and Southern
Shaanxi gold provinces. The Xiao Qinling gold province is currently the second
largest gold producing area in China. The Qinling gold province is west of the
Xiao Qinling gold province. Explorers unrelated to the Company have recently
discovered gold deposits in the Qinling gold province. The Company has entered
into two (2) agreements whereby the Company will enter into joint ventures for
the exploration and development of up to thirteen (13) properties.

     One (1) of the properties covered by the agreements to enter into joint
ventures is located within the Xiao Qinling gold province. Seven (7) of the
properties are located within the Qinling gold province. Four (4) of the
properties are located within the Southern Shaanxi gold province. A fifth (5th)
property is also located within the Southern Shaanxi gold province, but more
specifically, in an area called Chuan-Shaan-Gan gold triangular zone.

The newest property the Company has been looking at is located in Shaanxi
Province, but is not covered by the agreements.

RESEARCH  &  DEVELOPMENT

     The Company has not conducted any research and development activities since
inception. The Company does not have plans to conduct any research and
development during the next twelve months. However, the Company is in
negotiations in connection with two properties in Shaanxi, China, which the
Company may pursue licenses on during the next twelve months, financing
permitting. The Company can give no assurances that the Company's negotiations
will be successful, that the Company will be able to raise the substantial
financing needed to obtain licenses on these properties, that the Company will
be able to obtain these licenses if the financing is raised, if the licenses are
obtained that the Company will explore the properties covered by the licenses,
or if explored that the properties will contain any gold reserves.

     The Company has also entered into an option agreement for the right to
purchase five (5) licenses to mining claims in Mongolia, and is developing an
exploration plan to start exploring some or all of these areas within the next
twelve months. The Company can give no assurances that the Company will be able
to raise sufficient funding to carry out the exploration activities in any of
these areas, that the Company will explore the properties covered by the
licenses, or if explored that the properties will contain any gold reserves.
<PAGE>

EMPLOYEES

     The Company does not currently have any employees on either a part-time or
full-time basis. The Company intends to use consultants and other forms of
contract or outsourced labor during the next twelve months (see "Agreements"
below).

AGREEMENTS

     Effective October 1, 2004, the Company entered into a consulting agreement
with Sagit Investment Management Ltd, a company owned by Raoul Tsakok, a
significant shareholder of the Company for management and geological services.
The agreement is for a period of one year at a cost of $5,625 (CDN) per month.
Either the Company or the consultant may terminate the agreement with sixty (60)
days written notice to the other party.

     Effective December 1, 2004, the Company entered into an investor relations
agreement with Skyline Marketing, Inc. ("Skyline"), an investor relations
company. The agreement is for a period of three months at a cost of $10,000
(CDN) per month. The services provided to the Company by Skyline will include
contacting persons registered to trade in securities and informing them of the
development of the Company's projects and business and circulating them
quarterly reports and other material financial and other information, acting as
a liaison between directors and senior officers of the Company, as well as
assisting in arranging equity financing for the Company.

                                SUBSEQUENT EVENTS
OPTION  AGREEMENT

     On January 20, 2005, the Company entered into an Option Agreement with
Jaroslav Ruza (the "Optionor"), to purchase an option to acquire a 100% right,
title and interest in the Optionor's mining claims (the "Option Agreement"). The
Optionor owns five licenses to mining claims, representing approximately 47,848
hectares or approximately 118,235 acres, in Mongolia (the "Properties"). Under
the Option Agreement, the Company paid the Optionor $20,000 (CDN) on January 20,
2005, upon the execution of the Option Agreement, and is required to pay the
Optionor an additional $30,000 (CDN) on or before January 20, 2006, and $50,000
(CDN) on or before January 20, 2007 (collectively the "Purchase Price").
However, the Option Agreement represents only an option and the Company is under
no obligation to make any additional payments under the Option Agreement, other
than the $20,000 (CDN) already paid.

     If the Company chooses to pay the entire Purchase Price, the Company will
be deemed to have exercised the option and will own 100% of the Optionor's
right, title and interest to the Properties, except for a two percent (2%)
royalty which the Optionor will retain on any proceeds received by the Company
from any smelter from the sale of any ores, concentrates or minerals produced
from the Properties after deducting certain expenses (the "Royalty").

     Under the Option Agreement, the Company has the right to purchase one-third
(1/3) of the Royalty from the Optionor at any time for the sum of $300,000
(CDN), an additional one-third (1/3) of the Royalty from the Optionor at any
time for the sum of $300,000 (CDN), and the right of first refusal to purchase
the remaining one-third (1/3) of the Royalty from the Optionor, in the event the
Optionor wishes to sell his remaining interest in the Royalty.

<PAGE>

     Under the Option Agreement, the Optionor agreed to provide the Company with
all of the necessary geological information on the Properties, provide up to a
maximum of fifteen (15) working days of his time to the Company to assist in
matters related to the Properties, and the Company agreed to pay the Optionor
$300 (CDN) for each day of assistance provided to the Company.

     If the Company fails to make any payments toward the Purchase Price, which
are required by the Option Agreement, the Optionor may give the Company a notice
of default and if the Company does not cure the default within ten (10) days
following delivery of the notice, the Optionor may terminate the Option
Agreement. The Company then will have six (6) months from the termination date
of the Option Agreement to leave the Properties in good standing, and three (3)
months to return copies of all of the reports, maps and other relevant documents
in the possession of the Company at the time the option is terminated.

THREE MONTHS ENDED DECEMBER 31, 2004 COMPARED TO THREE MONTHS ENDED DECEMBER 31,
2003

     The Company earned no revenue for the three months ended December 31, 2004
or the three months ended December 31, 2003.

     Expenses increased $105,750 from $0 during the three months ended December
31, 2003, to $105,750 for the three months ended December 31, 2004. The Company
had $0 in expenses for the three months ended December 31, 2003 because the
Company discontinued its operations related to the development of a Linux based
application server and thin client computing systems. As a result, expenses in
the comparable prior year period have been recorded as a loss from discontinued
operations of $6,089. The increase in expenses was attributable to increases of
$0 in mineral property costs, $53,614 in consulting expenses, $7,767 legal and
organizational expenses, $8,000 in accounting and auditing expenses, $1,286 of
amortization expense, $330 of foreign exchange expense, $385 of general and
administrative expense, $13,021 of rent and utilities expense, and $21,347 of
travel and promotional expenses. The consulting expenses included $30,000 for
consulting services performed by a director of the Company, $1,200 for
consulting services performed by a former director of the Company and $14,132
for management and geological services provided by a company owned by a
significant shareholder of the Company.

     The Company had a net loss of $105,750 for the three months ended December
31, 2004, as compared to a net loss of $6,089 for the three months ended
December 31, 2003, from the Company's discontinued operations. The increase in
net loss from the three months ended December 31, 2004, was $99,661. The
increase in net loss was due to the increase in expenses in connection with the
fact that the Company had no revenue for the three months ended December 31,
2004.

NINE  MONTHS  ENDED DECEMBER 31, 2004 COMPARED TO NINE MONTHS ENDED DECEMBER 31,
2003

     The Company earned no revenue for the nine months ended December 31, 2004
or the nine months ended December 31, 2003.

     Expenses increased $378,359 from $0 during the nine months ended December
31, 2003, to $378,359 for the nine months ended December 31, 2004. The Company
had $0 in expenses for the nine months ended December 31, 2003 because the
Company discontinued its operations related to the development of a Linux based
application server and thin client computing systems. As a result, expenses in
the comparable prior year period have been recorded as a loss from discontinued
operations of $13,952. The increase in expenses was attributable to increases of
$184,579 in mineral property costs, $93,414 in consulting expenses, $28,374
legal and organizational expenses, $11,300 in accounting and auditing expenses,
$1,598 of amortization expense, $903 of foreign exchange expense, $10,561 of
general and administrative expense, $19,141 of rent and utilities expense, and
$28,489 of travel and promotional expenses. The consulting expenses included
$65,000 in consulting services performed by a director of the Company, $14,132
for management and geological services provided by a company owned by a
significant shareholder of the Company, and $8,000 for consulting services
provided by a former director of the Company. Of these amounts, $2,000 is
included in results from discontinued operations.
<PAGE>

     The Company had a net loss of $378,359 for the nine months ended December
31, 2004, before discontinued operations, and a net loss of $398,153 after
taking into account a loss of $19,794 due to the Company's discontinued
operations, which includes $1,000 received from a former director for all rights
related to the Linux based application server, as compared to a net loss of
$13,952 for the nine months ended December 31, 2003. The results from
discontinued operations includes $2,000, which was paid to a current director
and former director for consulting services concerning the Company's
discontinued operations. The increase in net loss compared to the earlier nine
month period was $384,201, which was due to increases in expenses and the fact
that the Company had no revenues for the nine month period ended December 31,
2004.

LIQUIDITY  AND  CAPITAL  RESOURCES

     We have not earned any revenue since inception on December 13, 2000 and we
are presently in the development stage of our business.

     As of December 31, 2004, the Company had total current assets of $42,543,
which consisted of $38,303 in cash and $4,240 of prepaid expenses and deposits.
The Company also had $13,751 of intangible assets, which consisted of the net
carrying value of the Company's website development costs, and $4,979 of plant
and equipment, which consisted of the net carrying value of the Company's
computer equipment. The Company had total assets of $61,273 as of December 31,
2004.

     As of December 31, 2004, the Company had total current liabilities of
$11,439, consisting of accounts payable of $5,626, accrued liabilities of $4,000
and an amount due to related parties of $1,813, which includes $159 paid on
behalf of the Company by a former director and $1,654 paid on behalf of the
Company by a current director. The amount due is non-interest bearing, unsecured
and has no specific terms of repayment.

     As of December 31, 2004, the Company had $31,104 of working capital and a
ratio of current assets to current liabilities of 3.72.

     For the nine months ended December 31, 2004, the Company spent $242,398 in
its operating activities, which included a net loss of $398,153, amortization
adjustments of $1,598, mineral property costs of $165,000, an increase in
deposits and prepaid expenses of $4,240, a decrease in accounts payable of
$2,028, and a decrease in amounts due to related parties of $4,575.

     The Company had ($20,328) in net cash used in investing activities, due to
a purchase of intangible assets of $15,000 and a purchase of property and
equipment of $5,328, for the nine months ended December 31, 2004.
<PAGE>

     The Company had $200,000 in net cash provided by financing activities for
the nine months ended December 31, 2004, which was from the proceeds from the
sale of 400,000 shares of the Company's common stock.

     The Company had accumulated losses as of December 31, 2004 of $426,035.

     Subsequent to the three months ended December 31, 2004, on January 31,
2005, the Company entered into an offshore subscription agreement with an
unrelated party for the sale of 199,930 shares of the Company's common stock for
$99,965.

     However, the Company cannot make any assurance that financing will be
available on terms favorable to the Company, or at all. The Company has no
commitments from officers, directors or affiliates to provide funding. There can
be no assurance that any new capital will be available to the Company or that
adequate funds will be sufficient for Company operations, whether from the
Company's financial markets or private sources, or that other arrangements will
be available when needed or on terms satisfactory to the Company. If adequate
funds are not available to the Company on acceptable terms, the Company will
have to delay, curtail or scale back some or all of its operations.

RISK  FACTORS

     We are subject to all the risks inherent to a development 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 development 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. The Company will be required to contribute
cash to the joint ventures on a continuing basis, however, the exact amount of
continued capital commitment required by the Company is not known at this time.
The Company believes it can continue for approximately six (6) months if no
additional financing is raised, due to the $299,965 the Company has raised
throughout the last six (6) months in connection with offshore subscription
agreements, and will require approximately $200,000 of additional financing to
continue administrative activities for the next twelve (12) months, which does
not include any additional amounts which will be required for exploration
activities or the formation of joint ventures, which the Company anticipates
being substantial.

     Additionally, if the Company does enter into joint ventures or the
Company's management decides to acquire licenses to the Mongolian Properties,
the Company will need a substantial amount of additional financing, which the
Company will determine if the joint ventures are entered into. The Company does
not have any commitments or identified sources of capital from third parties or
from the Company's officers, directors or majority shareholders. There is no
assurance that financing will be available on favorable terms, if at all. If the
Company is unable to raise such financing, it will not be able to enter into the
joint ventures, complete the purchase of the Mongolian licenses or continue
business operations and its business will fail.

     LETTERS OF INTENT. The Company has entered into two (2) letters of intent
whereby the Company will enter into joint ventures for the exploration and
development of up to thirteen (13) properties in Shaanxi, China. Pursuant to one
letter of intent, the Company will enter in a Sino-Foreign cooperative joint
venture company with the Bureau for the exploration and development of up to
twelve (12) properties. Pursuant to the other letter of intent, the Company will
enter into a Sino-Foreign cooperative joint venture company with Northwest for
exploration and development of one (1) property. Pursuant to the letters of
intent, the Company will contribute cash to the joint ventures. The other
parties to the joint ventures will contribute up to thirteen (13) properties on
which the gold exploration and potential development will be conducted. The
Company has not currently entered into any definitive agreements or joint
ventures.
<PAGE>

     The Company is in continued negotiations with the other parties to the
letters of intent regarding contributions of the properties and the Company's
contribution of cash. Currently, the joint ventures have not been formed, the
Company has not contributed any cash, none of the properties have been
contributed, and there is no program of exploration and development. There can
be no assurance that the Company will enter into any definitive agreements or
joint ventures, or that the Company will make any cash contributions or that
other parties to the letters of intent will contribute any property. In the
event that any of the foregoing events do not occur, the Company's business will
fail.

     TITLE TO THE PROPERTIES. The government of China owns the land on which the
Company intends to conduct exploration and development through a joint venture
with the Bureau and a joint venture with Northwest. The Bureau and Northwest are
local government departments. They have permits that give them the right to the
mineral resources found under the surface of the properties. Pursuant to the
letters of intent, the Bureau and Northwest will contribute Permits for up to an
aggregate of thirteen (13) properties and the Company will contribute cash to
the joint venture. The Company has not currently entered into any definitive
agreements or joint ventures. The Company is in continued negotiations with the
Bureau and Northwest regarding contributions of the properties and the Company's
contribution of cash. Currently, the joint ventures have not been formed, the
Company has not raised or contributed any cash, none of the properties have been
contributed, and there is no program of exploration and development. However,
after a due diligence review of the prospective properties, the Company has
determined that one (1) of the thirteen (13) properties and one (1) additional
property meet the Company's criteria for investment, and the Company plans to
proceed in establishing joint ventures for the purpose of developing these two
(2) properties, which the Company can make no assurances that it will be
successful in establishing. If the Company, the Bureau or Northwest do not make
the contributions contemplated under the letters of intent, the Company will not
have any rights with respect to the properties.

     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, particularly in the area of gold
exploration and development. 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.
<PAGE>

     BECAUSE MR. TSAKOK OWNS 22.5% OF THE COMPANY'S OUTSTANDING COMMON STOCK, HE
WILL EXERCISE SIGNIFICANT CONTROL OVER CORPORATE DECISIONS THAT MAY BE ADVERSE
TO OTHER MINORITY SHAREHOLDERS. Raoul Tsakok beneficially owns 22.5% of the
issued and outstanding shares of the Company's common stock. Accordingly, he
will exercise significant control in determining the outcome of all corporate
transactions or other matters including mergers, consolidations and the sale of
all or substantially all of our assets, and also the power to prevent or cause a
change in control. The interest of Mr. Tsakok may differ from the interests of
the other stockholders and thus result in corporate decisions that are adverse
to other shareholders.

     OUR AUDITORS HAVE EXPRESSED SUBSTANTIAL DOUBT AS TO WHETHER OUR COMPANY CAN
CONTINUE AS A GOING CONCERN. Our Company is in its early development 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 $426,035, as of December 31, 2004. 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.

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; and
     (4) conditions and trends in the gold exploration, development  and
         production  industry.

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.

CRITICAL  ACCOUNTING  POLICIES

     Our discussion and analysis of our financial condition and results of
operations is based upon our unaudited financial statements, which have been
prepared in accordance with accounting principals generally accepted in the
United States. The preparation of these financial statements requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of any contingent assets and
liabilities. On an on-going basis, we evaluate our estimates. We base our
estimates on various assumptions that we believe to be reasonable under the
circumstances, the results of which form the basis for making judgments about
carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates under different
assumptions or conditions.
<PAGE>

     We believe the following critical accounting policies affect our more
significant judgments and estimates used in the preparation of our financial
statements:

     Going Concern. The Company is in its early development stage as the
Company's management devotes most of its activities developing a market for its
products and services and planned principal activities have not begun. The
Company has not generated any revenues since inception and has incurred
substantial losses. These factors among others indicate that the Company may be
unable to continue as a going concern, particularly in the event that it cannot
obtain additional financing and/or acquire profitable operations. The Company's
continuation as a going concern depends upon its ability to generate sufficient
cash flow to conduct its operations and its ability to obtain additional sources
of capital and financing. The accompanying financial statements do not include
any adjustments that might result from the outcome of this uncertainty.

     Foreign Currency Translation. The Company's primary functional currency is
the United States Dollar. Monetary assets and liabilities denominated in foreign
currencies are translated using the exchange rate prevailing at the balance
sheet date. Gains and losses arising on translation or settlement of foreign
currency denominated transactions or balances are included in the determination
of income. The change in location of the Company's headquarters to London will
result in the Company transacting business in British Pounds which may result in
foreign currency translation risks. The Company has not, to the date of this
filling, entered into any derivative instruments to offset the impact of foreign
currency fluctuations. Significant fluctuations in the price of British Pounds
relative to the U.S. Dollar would have a substantial impact on the Company's
account balances that will be converted into U.S. Dollars.

     Mineral Property Costs. The Company has been in the exploration stage since
its acquisition of Dragon Minerals Holdings, Inc. on July 15, 2004 and has not
yet realized any revenues from its planned operations. It is primarily engaged
in the acquisition and exploration of mining properties. Mineral property
acquisition and exploration costs are expensed as incurred. When it has been
determined that a mineral property can be economically developed as a result of
establishing proven and probable reserves, the costs incurred to develop such
property, are capitalized. Such costs will be amortized using the
units-of-production method over the estimated life of the probable reserve.

     Long-Lived Assets. In accordance with SFAS No. 144, "Accounting for the
Impairment or Disposal of Long Lived Assets", the carrying value of long-lived
Assets is reviewed on a regular basis for the existence of facts or
Circumstances that may suggest impairment. The Company recognizes impairment
when the sum of the expected undiscounted future cash flows is less than the
carrying amount of the asset. Impairment losses, if any, are measured as the
excess of the carrying amount of the asset over its estimated fair value.

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"), has concluded that as
of the Evaluation  Date, our disclosure  controls and procedures  were 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.

<PAGE>

     (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.

     The Company had no unregistered sales of equity securities during the three
month period ended December 31, 2004.

SUBSEQUENT  EVENTS

     On January 31, 2005, pursuant to an Offshore Subscription Agreement, the
Company agreed to issue 199,930 restricted shares of the Company's common stock
to Paramount Trading Company Inc, in a transaction not registered under the
Securities Act of 1933 (the "Act"). The Company claims an exemption from
registration afforded by Regulation S of the Act ("Regulation S"), since the
foregoing issuance will be made to a non-U.S. person (as defined under Rule 902
section (k)(2)(i) of Regulation S), pursuant to an offshore transaction, and no
directed selling efforts were made in the United States by the issuer, a
distributor, any of their respective affiliates, or any person acting on behalf
of any of the foregoing.

ITEM  3.  DEFAULT  UPON  SENIOR  SECURITIES.

None.

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

None.

ITEM  5.  OTHER  INFORMATION.

None.
<PAGE>

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     a.   Exhibits

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

     2.1        Exchange  Agreement  (1)

     3.1        Articles  of  Incorporation   (2)

     3.2        Certificate  of  Amendment  (3)

     3.3        By-Laws  (2)

    10.1        Business  Plan  Purchase  Agreement     (2)

    10.2        Option  Agreement  (4)

    10.3        Consulting  Agreement  with  Sagit  Investment  Management
                Ltd.  (*)

    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  (*)

(1) Filed as Exhibit 2.1 to our report on Form 8-K filed on July 30, 2004, and
incorporated herein by reference.

(2) Filed as Exhibits 3.1, 3.2 and 10.1 to our SB-2 Registration Statement filed
on August 13, 2003, and incorporated herein by reference.

(3) Filed as Exhibit 3.1 to our report on Form 8-K filed on June 14, 2004, and
incorporated herein by reference.

(4) Filed as Exhibit 10.1 to our report on Form 8-K filed on January 25, 2005,
and incorporated herein by reference.

(*) Filed as an Exhibit to this Quarterly Report as filed on February 14, 2005

     b. Reports on Form 8-K

     (1) The Company filed a Form 8-K/A on November 17, 2004, to amend the
report of the acquisition of Dragon Minerals Holdings Inc., to take into account
the audited financial statements of Dragon Mineral Holdings Inc. as well as to
reflect a change in control of the Company.


          THE COMPANY FILED THE FOLLOWING REPORTS ON 8-K SUBSEQUENT TO
                      THE QUARTER ENDED DECEMBER 31, 2004:

     (1) The Company filed a Form 8-K on January 25, 2005, to report that the
Company entered into an Option Agreement with Jaroslav Ruza, to purchase an
option to acquire a 100% right, title and interest in five mining claims,
representing approximately 47,848 hectares or approximately 118,235 acres, in
Mongolia.

     (2) The Company filed a Form 8-K on February 4, 2005, to report that the
Company issued 199,930 restricted shares of the Company's common stock in a
transaction that was not registered under the Securities Act of 1933 to an
entity unrelated to the Registrant in exchange for $ $99,965.

                                   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: July 21, 2005                          Chief  Executive  Officer
                                              and  Chief  Financial  Officer