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

                                   FORM 10-KSB
(Mark  One)

[X]     ANNUAL  REPORT  UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
        OF  1934

               For  the  Fiscal  Year  Ended  March  31,  2004

[ ]     TRANSITION  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT  OF  1934

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

                        Commission File Number 333-107915

                           DRAGON GOLD RESOURCES, INC.
        ----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

           Nevada                                           88-0507007
-------------------------------                        ------------------
(State or other jurisdiction of                        (I.R.S.  Employer
incorporation  or  organization)                       Identification  No.)

       205-1072 Davie Street, Vancouver, British Columbia, Canada V6E 1M3
      --------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (604) 669-9029
                         -------------------------------
                         (Registrant's  telephone  number)

Securities  registered  under  Section  12(b)  of  the  Exchange  Act:

               NONE

Securities  registered  under  Section  12(g)  of  the  Exchange  Act:

               COMMON  STOCK,  $.001  PAR  VALUE  PER  SHARE

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 [ ]

Check  if there is no disclosure of delinquent filers in response to Item 405 of
Regulation  S-B  is  not  contained  in  this  form,  and  no disclosure will be
contained,  to  the  best  of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or  any  amendment  to  this  Form  10-KSB.  [ ]

<PAGE>

     The  issuer did not have any revenues for the most recent fiscal year ended
March  31,  2004.

     The  aggregate  market  value  of the issuer's voting and non-voting common
equity  held  by non-affiliates computed by reference to the average bid and ask
price  of such common equity as of June 14, 2004, was approximately $59,911,424.

     As of June 14, 2004 the issuer had 50,396,794 shares of common stock, $.001
par  value  per  share  outstanding.

Documents  Incorporated  by  Reference:  NONE

Transitional  Small  Business  Disclosure  Format:  Yes  [ ]  No  [X]

<PAGE>

                           DRAGON GOLD RESOURCES, INC.
                                   FORM 10-KSB
                            YEAR ENDED March 31, 2004
                                      INDEX

                                     Part I

    Item  1.          Description  of  Business                           3

    Item  2.          Description  of  Property                          12

    Item  3.          Legal  Proceedings                                 12

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


                                     Part II

    Item  5.          Market  for  Common  Equity  and  Related
                      Stockholder  Matters                               12

    Item  6.          Management's  Discussion  and  Analysis  or
                      Plan  of  Operation                                15

    Item  7.          Financial  Statements                              22

    Item  8.          Changes  in  and  Disagreements  with
                      Accountants  on  Accounting  and  Financial
                      Disclosure                                         23

    Item  8A.         Controls  and  Procedures                          24

                                    Part III

    Item  9.          Directors,  Executive  Officers,  Promoters
                      and  Control  Persons;  Compliance  with
                      Section  16(a)  of  the  Exchange  Act             25

    Item  10.         Executive  Compensation                            26

    Item  11.         Security  Ownership  of  Certain  Beneficial
                      Owners  and  Management  and  Related  Stockholder
                      Matters                                            27

    Item  12.         Certain  Relationships  and  Related
                      Transactions                                       27

    Item  13.         Exhibits  and  Reports  on  Form  8-K
                      (a)   Exhibits                                     28

                      (b)   Reports  on  Form  8-K                       29

    Item  14.         Principal  Accountant  Fees  and  Services         29

    Signatures                                                           29

<PAGE>

SPECIAL  NOTE  REGARDING  FORWARD-LOOKING  STATEMENTS

     Certain  statements  in  this  Annual  Report on Form 10-KSB (this "Form 10
KSB"),  including  statements under "Item 1. Description of Business," and "Item
6.  Management's  Discussion  and  Analysis  or  Plan  of Operation", constitute
"forward looking statements" within the meaning of Section 27A of the Securities
Act  of  1934,  as  amended, and the Private Securities Litigation Reform Act of
1995 (collectively, the "Reform Act"). Certain, but not necessarily all, of such
forward-looking  statements  can  be  identified  by  the use of forward-looking
terminology  such  as   "believes",   "expects",  "may",  "will",  "should",  or
"anticipates",  or  the  negative  thereof   or  other   variations  thereon  or
comparable  terminology,  or  by  discussions of strategy that involve risks and
uncertainties.  Such forward-looking statements involve known and unknown risks,
uncertainties  and other factors which may cause the actual results, performance
or  achievements  of  Dragon  Gold Resources, Inc. ("the Company", "we", "us" or
"our")  to  be  materially  different  from  any  future results, performance or
achievements  expressed   or   implied  by  such   forward-looking   statements.
References  in this form 10-KSB, unless another date is stated, are to March 31,
2004.


                                     PART  I

ITEM  1.  DESCRIPTION  OF  BUSINESS

BUSINESS  DEVELOPMENT

     The  Company  was originally incorporated in the State of Nevada, U.S.A. on
December 13, 2000 as Folix Technologies Inc.  On June 1, 2004, the Company filed
a  Certificate  of  Amendment  to change its name to Dragon Gold Resources, Inc.
which  change  became  effective  on  June  14,  2004.  The  Company is based in
Vancouver,  B.C., Canada. The Company's principal business is the development of
a  Linux  based   application   server   and  thin   client  computing  systems.

     On  March  9, 2001, the Company entered into an asset purchase agreement to
acquire  certain  hair  loss  prevention  and  hair  loss  regrowth intellectual
property.  The  Company  was to pay CDN$25,000 in monthly installments and issue
100,000  shares  of  common  stock.  The  Company paid CDN$2,000 (US $1,280) and
issued 100,000 shares of common stock before terminating the agreement on May 1,
2001.  The  Company   is  no   longer   involved  in  the  hair  loss  business.

     Effective June 14, 2004, the Company declared a 7 to 1 forward stock split.
The effect of the stock split has been retroactively reflected in this report on
Form  10-KSB  unless  otherwise  stated.

     The  Company  is  in  the  early  development stage. In a development stage
company,  management  devotes  most of its activities in developing a market for
its  products  and  services.  Planned  principal activities have not yet begun.

     On  June  15,  2004, the Company completed the Initial Public Offering (the
"IPO")  of  its  common  stock,  par value $.001 per share.  The Company offered
1,000,000  shares  for  sale  at  $0.20  per share in the IPO.  The Company sold
500,000  shares  of  common  stock  and raised a total of $100,000.  The Company
intends to use all of the net proceeds from the IPO during its development stage
to  develop  the  initial  product.

                                      -3-
<PAGE>

     The  ability  of  the  Company  to  emerge  from the development stage with
respect  to  any  planned  principal  business  activity  is  dependent upon its
successful efforts to raise additional equity financing and/or attain profitable
operations.  There is no guarantee that the Company will be able to complete any
of the above objectives.  As such, the Company is engaged in negotiations with a
merger and acquisition partner.  The transactions, if consummated, may result in
a  change  in   control  as  well  as  dilution   to  current  stockholders.  In
anticipation  of  such  a  change  in  control and change in business focus, the
Company  has  changed  its  name  to  Dragon  Gold  Resources,  Inc.

PRINCIPAL  PRODUCTS

     The  Company  is  developing a client-server system as its initial product.
The  system  is designed to run computer programs from a centralized on a user's
terminal.  The  Company's  initial product is a combination of both hardware and
software  and composed of two main components. The first component is called the
Central  Server,  which  hosts  all applications and provides storage, print and
other  facilities  depending  on customer requirements.  The second component is
called  the  Thin  Client,  which  is  a  medium  power diskless computer with a
monitor, mouse, keyboard and optional speakers.  A full description of these two
components  is  defined  below.

     The  Central  Server and the Thin Client perform as a system which allows a
target  customer  to  implement  a  computing  environment  that performs common
operations  such as word processing, email, web applications and other computing
tasks  within  an  easy to maintain and centrally upgradeable business computing
system.

Central  Server
---------------

     A Central Server is typically the main computer that a business uses in its
computing  environment.  This  main  computer  is  typically  used  to  run
applications,  store data files and to communicate with other computers and also
other  devices  such  as  printers and scanners.  For example, Microsoft makes a
product  called  Windows  2003  Server to fulfill this need in the market place.
This  main computer that we call a Central Server has large hard drive capacity,
has  large  amounts  of  memory  and a fast CPU typically made by companies like
Intel  or  AMD.

Our  Central Server design will be based on integration of one or more computers
running  Open  Source Software that is customized by us. Our Central Server will
be  remotely accessible via the Internet so that we don't have to visit customer
sites  to  make  adjustments,  install  additional  software or install software
upgrades.

The  hardware  specifications  for  the  Central  Server  are  expected to be as
follows:

     - Rack  mountable  chassis  with  power  supply
     - Pentium4  CPU
     - ABIT  IS7  Motherboard
     - SATA  120G  Hard  Disk

                                      -4-
<PAGE>

     The  software  specifications  of  the  software for the Central Server are
expected  to  be  as  follows:

     - Linux  version  2.6  Kernel  (Operating  System)
     - X-Windows  version  4.3  (Windowing  System)
     - OpenOffice  version  1.1(Office  Applications)
     - Mozilla  version  1.4  (Web  Browsing)
     - Evolution  version  1.45  (Email,  Contact  and  Time  Management)
     - RDesktop  version  1.2  (Windows  Terminal  Services  Connectivity)

Thin  Client
------------

     A  Thin  Client is the computer that people will use on their desks at work
that  will  connect  to  our  Central  Server.  The  Central  Server  runs  the
applications  leaving  the Thin Client only needing to draw the display and send
mouse and keyboard clicks back to the Central Server for processing. Because the
Central  Server  does  most  of application processing, the Thin Client does not
need to be a high powered computer and is typically smaller and cheaper to build
which  is  where  the  name  Thin  Client  is  derived  from.

Customers will also have an option to brand their Thin Client screens with their
own  corporate  logos,  on  start  up and login screens as well as the corporate
desktop  screen.

The  hardware  specifications for the Thin Client are expected to be as follows:

     - Mini-ITX  case  with  power  supply
     - VIA  Eden  CPU  and  Motherboard
     - Mouse
     - Flat  Panel  Display

     The  software  specifications  of  the  software for the central server are
expected  to  be  as  follows:

     - Grub  (Remote  Boot)

     We  are  aware  of  a  similar product that is available with all the above
hardware specifications. Such an example of a product is Hewlett Packard's T5700
thin client computer. We believe that we can integrate the above components less
expensively  than  purchasing  an  offering  products  such  as  the  T5700.

Open  Source  Software  Concept
-------------------------------

     There  is a new method of software development called Open Source Software.
Open Source Software requires that one understand the concept of source code and
software  licenses.  Source code is the set of commands or "blueprints" required
to  build a software program. A software license is the agreement one must abide
to  in  order  to be able to use the software. Open Source Software is generally
accepted  to  be  software  that  has  the  properties  listed  below.

                                      -5-
<PAGE>

1.     Freely  redistributable  in  that the software license shall not restrict
       any party from selling or giving away the software. The license shall not
       require  a  royalty  or  other  fee  for  such  sale.
2.     All  software  programs  come  with  source  code  to build the software.
3.     Derived  works are allowed but any derived works must have the same terms
       of  the  license  of  the  original  software.
4.     The  software  license  must  explicitly  permit distribution of software
       built  from  modified  source  code.
5.     The license must not discriminate against any person or group of persons.
6.     The  license must not restrict anyone from making use of the program in a
       specific  field  of  endeavor.
7.     The  rights  attached to a software program must apply to all to whom the
       program is redistributed without  the need for execution of an additional
       license by  those  parties.
8.     The  rights  attached  to  a  software  program  must  not  depend on the
       program's  being  part  of  a  particular  software  distribution.
9.     The  license  must  not  place  restrictions  on  other  software that is
       distributed  along  with  licensed  software.
10.    No  provision  of  the  license  may  be  predicated  on  any individual
       technology  or  style  of  interface.

     Open  Source Software has been a very successful phenomenon since it allows
a community of users with a common need to share the cost of developing software
and  not  to  be held hostage by a single vendor of computer programs. In short,
the use of Open Source Software in our products allows us to dramatically reduce
our  research  and  development  expenditures.

Our  products  will contain commodity computer hardware components that run Open
Source  Software.  This  will  allow  us  to  offer  reliable  systems to future
customers  at  reasonable  prices.

PRINCIPAL  SERVICES
-------------------

     The  implementation  of  our  service  offerings  is  not  included  in the
development  stage.  The  funds  raised  in the IPO will not be used for service
development.  We  discuss  it here so that you can assess our longer-range plan.

     We  will  supply  services  to  deploy  our  products  and  build  customer
solutions.  The  Company  believes  that by supplying computing solutions to our
future  customers  it will be in an excellent position to learn about additional
customer  requirements  and have an opportunity to extend business opportunities
with  those  customers.  The  Company will be providing training, consulting and
network management which are described below. The Company can only provide these
services  after  it  has  developed  the  initial  product.

Training
--------

     We  will  supply training services. We believe that some large corporations
and  small  to  medium  enterprises  with sensitive data will not want to have a
vendor like us to have remote access into their private corporate network. Also,
some  corporations  will  want  to  have  their own information technology staff
trained  to operate the entire system including both the Central Server and Thin
Clients.  We  intend to be in a position to provide training programs to fulfill
this  demand  once  we  have  finished  developing  our  initial  product.

                                      -6-
<PAGE>

Consulting
----------

     We  intend  to supply general consulting services including but not limited
to  network  design  and  development services required to integrate our systems
into  our  future  customers'  computing  environments. Some customers will have
special requirements and perhaps will need the development of custom application
programs to run their businesses. We intend to be in a position to provide these
consulting  services  once  we  have  finished  developing  our initial product.

DISTRIBUTION

     After  we  have completed the development stage we intend to distribute our
product  ourselves  to business owners known by our president and sole director.
Our president will contact these business owners and advise them of the benefits
of  our  system.  After we are confident that the system will work in a customer
environment  we  will commence selling our system via our web site which will be
set  up  for  this  purpose.

RECENTRALIZATION  CONCEPT

     In  the  1960s  and  early  1970s  there  were relatively a small number of
computers  in the world as compared to today. Typically these types of computers
were  called  Mainframe  computers. The term "Mainframe computer" was originally
used  for  almost  any  computer  system  and  then later to describe only large
computer systems. These systems were mainly used by large corporations, academic
and government communities. A Mainframe computer was highly centralized with the
main  or  primary  computer  being  responsible  for  all  functions.

     In the mid 1970s through to  today the personal computer took center stage.
Computer  resources  became  decentralized with many smaller computers doing the
work  of  a  larger  one. Companies such as Microsoft and Intel became household
names  during  this  era.  The disadvantage of this decentralization was that in
many cases thousands of computers had to be individually managed and maintained.
The  maintenance  cost  of  a single personal computer is often greater than the
purchase  cost  of  the  personal  computer  itself  over  its  useful lifetime.

     The Company sees an opportunity to  recentralize  computing by centralizing
resources  in  the  style  of  a  Mainframe computer of the 1960s. This may seem
backwards  to  some,  but  considering  today's  maintenance  costs  in  the
decentralized  world,  centralization  makes a good deal of sense as maintenance
costs can be drastically reduced. Additionally, we will use Open Source Software
to  implement  our  vision.  There is an Open Source Software project called the
Linux  Terminal  Server  Project  that  we can leverage to build a recentralized
system  in  less  than  one  year  according  to  management's  projections.

                                      -7-
<PAGE>

TARGET  CUSTOMERS

     Our  target  customers will be businesses that operate computer networks of
between  3  and  50  desktop  computers.  Such offices are accounting firms, law
offices,  software  development  houses, call centers.  In the future we hope to
sell  to  our  product  to  Internet  service  providers  (ISPs).

     We believe that our product will appeal to many types of businesses because
we can reduce the maintenance costs since our system is centralized and services
personnel  need  only  manage  a  small number of Central Servers. An additional
benefit  will  be  that  computer  virus  and  patch management will become more
simplified  than  it  is  today.

CUSTOMER  EXAMPLE

   Our  system  can be  understood by reviewing the following usage example. Our
system  could  be  used  in a law office. In the server room, we would install a
central  server  configured  to  run a number of applications including a set of
office  applications,  email client and web browser. On the desks of the lawyers
and legal assistants are small diskless computer terminals that are connected to
the  central  server. Also attached to the network are devices such as printers,
scanners  and  other  hardware.

   When the end user turns on her terminal it connects to the central server and
shows  a  log  on  screen. The end user logs in to the server and her desktop is
displayed  in  the  system. The end user can choose from a number of programs to
run.  The  end user chooses a program and uses a keyboard and mouse to enter and
retrieve  data.

   We believe that the benefit of our system is that a customer will not need to
retain  an  in  house  computer  expert  to maintain the system. From our remote
office,  we  can  install  new applications, fine tune and configure or repair a
system.  For  example,  if the law office wanted a new version of an application
they  would  just  inform  us  and  we  would have it available on the terminals
shortly  afterwards.  The  law  firm would not have to buy and install software.
Rather,  the  software  would  be  installed  for  them  simply  and  easily.

   We could invoice the law  office with consistent and predictable monthly fees
similar  to  how they pay for their telephone, gas and power service. Our system
will  allow  us  to  offer  software  and  support as a monthly metered service.

BUSINESS  MODEL

     The basic business model is to sell both products and services. However, we
must  start  with  building our product first and if we are able to establish it
into the market place we will be able to service our product. Our business model
relies  on  us being successful in making a product that functions as specified.
This  is  the  primary  goal  of  our development stage, to make a recentralized
computer  system  that  we  can  sell  to  future  customers.

                                      -8-
<PAGE>

MARKET  ANALYSIS

     To  better  understand our plan it will help you to see our analysis of the
corporate  software  market.  We  believe  that  there  is  new  opportunity for
companies  like  us  to  compete  against  Microsoft.  The  mass  migration  to
non-Microsoft  technologies  has  yet to start in earnest. There are a small but
growing  number  of  businesses  that  are  converting over to using Open Source
Software  systems.  We  believe  that  Open  Source  Software  is  a significant
opportunity  for  us to gain a foothold in computer industry. However, Microsoft
is  a  formidable  competitor  and  the  outcome  is  far  from  decided.

COMPETITION

     We  fully expect to have competition in the recentralized market space from
both  large  and small companies. We have not identified direct competition.  We
anticipate  direct  competition  from  small  companies,  however, we are mainly
concerned with larger companies such as Sun Microsystems Inc., VA Software Corp.
and  Red  Hat  Inc.  to the extent that they see the market as we do. We are not
aware  of any products of these companies that directly compete with our product
concept.  They  do, however, have products that could be used as a foundation to
start  competing  with  us  if  our vision proves to be correct. The table below
outlines  the  products  which  could  be  modified  to  become  competitive.

COMPANY                        PRODUCT  NAME
                               (POTENTIAL  COMPETITION)
Sun  Microsystems  Inc.        Mad  Hatter  Linux  Desktop
VA  Software  Corp.            Custom work through their professional
                               services division
Red  Hat  Inc.                 Red  Hat  Enterprise  Linux

     We  are  a  much  smaller  company  than  the  firms  listed above. You are
encouraged  to  search  the term "Recentralized Computing" to see other possible
competitors. We believe that competition validates that we have identified a new
market  segment.  We  also  believe  that  any competition will drive us to make
better  products  for  our  future customers. We intend to identify and focus on
specialized  markets  such  as  call  centers  and  medical  labs as they become
apparent  to  mitigate  competition  risks.

INTELLECTUAL  PROPERTY

     We  do  not  own  any  intellectual property such as patents, trademarks or
copyrights.  In  fact,  the  use  of  Open Source Software in our products makes
owning  intellectual  property  more  difficult  than  it has been historically.

NEED  FOR  GOVERNMENT  APPROVAL

     The  Company  does  not  need  government  approval  for  its  products and
services.

RESEARCH  &  DEVELOPMENT

     The Company will use funds raised in the IPO to develop the initial product
during  the  next  twelve  months.

                                      -9-
<PAGE>

Central  Server  Technical  Development
---------------------------------------

     Of  the  two  components,  we  expect  that Central Server will be the more
difficult  component  to  develop  as it will contain more hardware and software
than  the Thin Client. We will design the Central Server to be easily expandable
in  terms  of  adding  processing  power, storage, backup facilities and network
bandwidth.  Mr.  Corcoran has completed substantial software work on the Central
Server  by  building  and  testing  a  number  of software programs on a partial
prototype  system  running  on  his own computer hardware. To date the following
have  been  tested  on  the  partial  prototype:

PROGRAM  OR  PROJECT  INTEGRATED           FEATURE  PROVIDED
OpenOffice                                 Word  processing,  spreadsheet  and
                                           presentation
Evolution                                  Email, personal information  manager,
                                           calendaring
GNUCash                                    Financial  Accounting
Mozilla                                    Web  Browsing  and  Web  Applications
Linux  Kernel  2.6  beta  5                OS  to  support  the  above  programs
Gentoo  Portage  Build  System             Build System to integrate  the  above

     In  order to complete the Central Server, we need to resolve how to support
different applications' versions on the same server and need to test and confirm
remote  boot  and  display plans. We expect that the Central Server will take an
additional  three  to  four  months  to  complete.

Thin  Client  Technical  Development
------------------------------------

     We  expect  that  the  Thin  Client development to be less complex than the
Central  Server.  We  aim  to keep the Thin Client hardware simple, low cost and
easy  to  use, install and maintain. No work has been done on the implementation
of  the  Thin  Client  to  date.  We  expect  that  the Thin Client will take an
additional  five  to  eight  months  to complete assuming sequential development
after  the  central  server  is  complete.

Prototype  System  Completion  Summary
--------------------------------------

     The  following is a summary of what has been completed and tasks that still
need  to be completed for a prototype system. The prototype system requires both
the  completion  of the central server and a thin client terminal. The following
table  provides  a  summary  of the tasks at hand and the status of these tasks.

                        TASK                          COMPLETE     INCOMPLETE
Central Server :: Application Selection and               X
Testing
Central Server :: Terminal Boot Support                                 X
Central Server :: Remote Display                                        X
Thin Client :: Hardware Selection                                       X
Thin Client :: Remote Boot                                              X

                                      -10-
<PAGE>

     In  order  to  complete  the  prototype  we  need  to finalize the hardware
selection  and  integrate  the system software from freely available open source
code.  We  do  not  anticipate  having  to develop our own software programs. We
estimate  the time to complete the prototype system to be eight to twelve months
depending  on  the  number  of  unanticipated  problems  encountered.

STRATEGIC  TECHNICAL  PARTNERSHIPS

     We  will  seek  to  partner  with some computer hardware companies and Open
Source  Software  projects in software, hardware and network component areas. We
will  not  be developing our own hardware but will be buying it from a series of
suppliers.  These  computer  hardware  suppliers  may  need  to  support us with
technical  support  if  we  run  into issues in the development stage. We do not
currently  have  contracts  with  any computer hardware suppliers or Open Source
Software  projects.

     We  expect  the  partners will be either hardware or software partners. Our
future  hardware  partners will likely be CPU and motherboard manufacturers. The
role  we  expect  they  will play going forward will be to provide us with early
versions  of  their hardware products. In order, to get access to early versions
we  will  need to show that we are capable of developing a system that increases
demand  for  their  hardware products. Alternately, we may consider paying a fee
for  early  access  to  new  hardware  technologies.

     Our  future  software  partners will be Open Source Software projects. As a
company  that  uses  Open Source Software we can directly effect the role such a
project  will play. For example, if we develop custom code that improves an Open
Source  Software  project  we  will  be required to donate that code back to the
project.  Additionally,  if  we  require  certain  features  in  the Open Source
Software  project  that  do  not yet exist we can donate money to the project to
influence  the  project's development. In general, Open Source Software projects
will  be  the  source  of  our  software  components.

OPEN  SOURCE  SOFTWARE

     As  discussed,  we  will  make  use  of  Open  Source Software technologies
wherever  possible in an effort to completely eliminate software-licensing costs
and  to have access to source code so our solutions can be easily customized for
specialized  vertical markets. The primary benefit to using Open Source Software
is  that  our  research and development budget can be reduced substantially when
compared  to  propriety  technical  development  processes. Open Source Software
gives  us  the  means  to  develop  our  products  for  less  cost.

EMPLOYEES

     The  Company  does not have any full-time employees.  Gregory Corcoran, our
Chief  Executive  Officer,  devotes  approximately  30  hours  per  week  to our
business.  The Company will use a small number of consultants when needed during
the  development  stage.

                                      -11-
<PAGE>

ITEM  2.  DESCRIPTION  OF  PROPERTY

     The  Company  currently  occupies  approximately  120 square feet of office
space and has access to a 90 square foot electronics test and assembly area on a
rent-free  basis  in  the home of Gregory Corcoran, our Chief Executive Officer.

ITEM  3.  LEGAL  PROCEEDINGS

     The  Company  is  not  aware  of  any  legal  proceedings.

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

     On  June  1,  2004,  a  majority of shareholders of the Company, via signed
written consent to action without a meeting of the shareholders, approved a name
change to Dragon Gold Resources, Inc., a 7:1 forward stock split, an increase in
the  authorized  shares  to  500,000,000  shares  of  common  stock,  and  a
reauthorization  of  $.001  par  value per share of common stock.  The number of
pre-split  shares  consenting  to  the action was 4,000,000 out of 7,199,542 (or
55.6%)  pre-split  shares  that were eligible to vote.  There were no votes cast
against or withheld, and there were no abstentions or broker non-votes as to the
matters.


                                     PART II

ITEM  5.  MARKET  FOR  COMMON  EQUITY  AND  RELATED  STOCKHOLDER  MATTERS

     "Bid"  and  "asked"  offers  for  the common stock are listed on the NASDAQ
OTC-Bulletin Board published by the National Quotation Bureau, Inc.  The trading
symbol  for  the common stock was "FOLX" and was changed to "DRGO" in connection
with  the Company's name change in June 2004.  The Company's common stock became
eligible  for  trading  in  March,  2004.

     The  following  table  sets  forth  the  high  and  low  bid prices for the
Company's  common  stock  for  the  periods  indicated as reported by the NASDAQ
OTC-Bulletin  Board.  The quotations reflect inter-dealer prices, without retail
mark-up,  mark-down  or  commission  and  may not represent actual transactions.

                                             Bid  Prices

 Quarter  Ended                     High                        Low
------------------                  -----                      -----
March  31,  2004                    $1.429                     $0.029


     There  were  26  holders of record of the common stock as of June 14, 2004.
The  Company  has  never  paid  a cash dividend on its common stock and does not
anticipate the payment of a cash dividend in the foreseeable future. The Company
intends  to  reinvest in its business operations any funds that could be used to
pay  a  cash dividend.  The Company's common stock is considered a "penny stock"
as  defined  in certain rules (the "Rules") under the Securities Exchange Act of
1934.  In  general,  a  security  which  is not quoted on NASDAQ or has a market
price  of  less  than  $5  per share where the issuer does not have in excess of
$2,000,000  in  net tangible assets (none of which conditions the Company meets)
is  considered  a  penny  stock.  The  SEC's rules regarding penny stocks impose
additional  sales  practice  requirements  on  broker-dealers  who  sell  such

                                      -12-
<PAGE>

securities  to persons other than established customers and accredited investors
(generally  persons  with  net worth in excess of $1,000,000 or an annual income
exceeding  $200,000  or  $300,000  jointly with their spouse).  For transactions
covered  by  the  rules,  the  broker-dealer  must  make  a  special suitability
determination for the purchaser and receive the purchaser's written agreement to
the  transaction  prior  to  the  sale.  Thus  the  Rules  affect the ability of
broker-dealers to sell the Company's shares should they wish to do so because of
the  adverse  effect that the Rules have upon liquidity of penny stocks.  Unless
the  transaction  is  exempt  under  the Rules, under the Securities Enforcement
Remedies  and  Penny Stock Reform Act of 1990, broker-dealers effecting customer
transactions  in  penny  stocks are required to provide their customers with (i)
a risk disclosure document; (ii) disclosure of current bid and ask quotations if
any;  (iii)  disclosure  of  the compensation of the broker-dealer and its sales
personnel  in  the  transaction; and (iv) monthly account statements showing the
market value of each penny stock held in the customer's account.  As a result of
the  penny  stock rules the market liquidity for the Company's securities may be
severely  adversely  affected  by limiting the ability of broker-dealers to sell
the  Company's  securities  and  the  ability of purchasers of the securities to
resell  them.

RECENT  SALES  OF  UNREGISTERED  SECURITIES

     On  September  30,  2003  we  issued  269,794 shares of our common stock to
convert  $7,709 in shareholder debt to equity at a rate of approximately $0.0286
per  share.  No underwriters or agents were involved in the foregoing issuances.
The  Company  claims  an exemption from registration afforded by Section 4(2) of
the  Act,  since  the foregoing issuances did not involve a public offering, the
recipient  took  the  shares  for investment and not resale and the Company took
appropriate measures to restrict transfer.  The Company also claims an exemption
from  registration  afforded  by  Regulation  S  promulgated  under  the  Act.

     On  April  7,  2003  we  issued  175,000  shares of our common stock to Don
Peterson  for  total proceeds of $5,000. No underwriters or agents were involved
in the foregoing issuance and no underwriting discounts or commissions were paid
by  the  Company.  The Company claims an exemption from registration afforded by
Section  4(2) of the Act, since the foregoing issuances did not involve a public
offering,  the  recipient  took the shares for investment and not resale and the
Company  took appropriate measures to restrict transfer. The Company also claims
an  exemption  from  registration afforded by Regulation S promulgated under the
Act.

     On  May  1,  2001  we  issued  28,000,000 shares of our common stock to our
president and sole director, Greg Corcoran, pursuant to a Business Plan Purchase
Agreement  dated  May  1,  2001.  No underwriters or agents were involved in the
foregoing  issuance.  The Company claims an exemption from registration afforded
by Section 4(2) of the Securities Act of 1933, as amended (the "Act"), since the
foregoing  issuances  did  not involve a public offering, the recipient took the
shares  for  investment and not resale and the Company took appropriate measures
to  restrict  transfer.

                                      -13-
<PAGE>

USE  OF  PROCEEDS  FROM  THE  SALE  OF  REGISTERED  SECURITIES

     Our  Registration  Statement  on  Form  SB-2,  as  amended,  Securities and
Exchange  Commission  File  Number  333-107915  became effective on December 19,
2003.  The  IPO commenced in December, 2003.  We terminated the offering on June
15,  2004,  before  the  sale  of  all  securities  registered.  The  IPO  was
self-underwritten.  We  registered  1,000,000  shares of our common stock for an
aggregate  offering  price  of  $200,000.  We  sold 500,000 shares of our common
stock  in  the  IPO  for  an  aggregate  price  of  $100,000.

                                      -14-
<PAGE>

     From  the  effective  date of the registration statement to March 31, 2004,
the  Company  paid  or incurred $8,476 of expenses in connection with the IPO as
follows: $6,050 for legal fees, $900 for consulting fees, and $1,526 for general
services  provided  by  591519  B.C.  Ltd. Gregory Corcoran, our Chief Executive
Officer  and  sole  Director, is the beneficial owner of 591519 B.C. Ltd.; thus,
Mr.  Corcoran indirectly received the $1,526 paid to 591519 B.C. Ltd.  All other
amounts were directly paid to persons who are not directors or officers or their
associates,  persons  owning  ten  (10)  percent or more of the Company's common
stock,  or  affiliates of the Company.  The net offering proceeds to the Company
after  deducting  the  amounts  discussed  above were $91,524 (the "Net Offering
Proceeds").  As  of  March  31,  2004, the Company had not used the Net Offering
Proceeds.

     Subsequent  to March 31, 2004, the Company has indirectly paid Mr. Corcoran
an  aggregate  of $2,224 of the Net Offering Proceeds through 591519 B.C Ltd. to
satisfy  an  outstanding loan due 591519 B.C. Ltd. in the amount of $224 and for
consulting services in the amount of $2,000.  Likewise, the Company has directly
paid  Mr.  Corcoran $1,028 to satisfy an outstanding loan due Mr. Corcoran.  The
Company  has  paid  $2,736  and  $2,400  (or  an aggregate of $5,136) of the Net
Offering  Proceeds  to satisfy two loans due shareholders who each own less than
ten  (10)  percent  of  the  Company's  common  stock.

     The  Company  currently  has  remaining  approximately  $83,136  of the Net
Offering  Proceeds,  $22,000  of  which  it  expects to use to pay Mr. Corcoran,
directly  or  indirectly  through  591519  B.C.  Ltd.,  for consulting services.


ITEM  6.  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  "Item  7.  Financial  Statements."

OVERVIEW

     The Company was incorporated in the State of Nevada, U.S.A. on December 13,
2000  as  Folix  Technologies  Inc.  On  June  1,  2004,  the  Company  filed  a
Certificate of Amendment to change its name to Dragon Gold Resources, Inc. which
change  became  effective  on June 14, 2004.  The Company is based in Vancouver,
B.C.,  Canada.  The  Company's  principal business is the development of a Linux
based  application  server  and  thin  client  computing  systems.

     Our  initial  product  is  a  client-server  system  that  can run computer
programs  from  a  centralized server on a user terminal. We believe the primary
benefit  to our future customers is that we offer a system that can be centrally
managed  and in some cases we can offer software applications for a low cost. We
build our products using a new method of software development called Open Source
Software.  Open  Source  Software has been a very successful phenomenon since it
allows  a  community of users with a common need to share the cost of developing
software  and not to be held hostage by a single vendor of computer programs. We
believe  that  the  use of Open Source Software in our products will allow us to
dramatically reduce our research and development expenditures. Our products will
contain commodity computer hardware components that run Open Source Software. We
also  believe  that  this  will  allow  us  to  offer reliable systems to future
customers  at  reasonable  prices.

                                      -15-
<PAGE>

     The  Company  is  in  the  early  development stage. In a development stage
company,  management  devotes  most of its activities in developing a market for
its  products and services. Planned principal activities have not yet begun. The
ability  of the Company to emerge from the development stage with respect to any
planned  principal business activity is dependent upon its successful efforts to
raise  additional equity financing and/or attain profitable operations. There is
no  guarantee  that  the  Company  will  be  able  to  complete any of the above
objectives.

     During  the  period since inception on December 13, 2000 to March 31, 2004,
the  Company  has accumulated a deficit during the development stage of $27,882.
The Company's auditors in their Independent Auditors' Report dated June 2, 2004,
have  expressed substantial doubt regarding the Company's ability to continue as
a  going  concern.

PLAN  OF  OPERATION

     We  define our development stage as the twelve-month period of time that we
believe it will take us to develop our initial product.  We raised $100,000 from
an  offering  under  an  SB-2 Registration Statement that was declared effective
December  19,  2003.  We believe that we have enough cash on hand to cover basic
operating  expenses  during  our  development  stage.  We intend to complete the
development  stage  of  our  initial  product  during  the  next  twelve months.

     Our business plan is to proceed with the development of our initial product
so  it  can  be sold.  Development of our initial product is expected to cost us
$20,000  for computer hardware plus an additional $68,000 in consulting fees. We
expect  that over the next twelve months the consulting fees will be broken down
as  follows:

                                                              ANTICIPATED FEES
CONSULTANT                                                  IN  NEXT  12  MONTHS
Mr. Corcoran - Project Management and Development Work             $24,000
Consultant 1 - Central Server Build System                         $16,000
Consultant 2 - Thin Client Boot System                             $16,000
Consultant 3 - Testing and Quality Assurance                       $12,000

     In  addition, the Company anticipates that it will incur aggregate expenses
of  $12,000  for  legal  and  accounting  fees  to  fulfill  its  SEC  reporting
obligations  in  the  next  twelve  months.

     During  the  next twelve months, the Company will perform approximately 720
hours  of  research  and  development  of  a  central  server  and  thin client.

                                      -16-
<PAGE>

     The  Company  does  not plan on hiring any full-time or part-time employees
during  the next twelve months.  The Company will continue to use consultants or
service  providers  for  its  required  services.

COMPARISON  OF  OPERATING  RESULTS

FISCAL  YEAR  ENDED  MARCH 31, 2004 COMPARED TO FISCAL YEAR ENDED MARCH 31, 2003

     The  Company had no revenues during the fiscal year ended March 31, 2004 or
the  fiscal  year  ended  March  31,  2003.

     Expenses  increased  $16,449 from $1,244 during the fiscal year ended March
31,  2003, to $17,693 (or 1,322%) for the fiscal year ended March 31, 2004.  The
increase  in  expenses  was  directly  attributable  to  costs  that the Company
incurred  in  connection with filing its Registration Statement on Form SB-2 and
the  cost  of  periodic  reporting  under  the  Exchange  Act  of  1934.

     The  expenses  incurred  during  the  fiscal  year  ended  March  31, 2004,
consisted of accounting and audit of $8,600, bank charges of $308, consulting of
$1,200,  foreign  exchange  of  $139,  investor  relations  of $1,307, legal and
organizational  of  $4,598,  office and telephone of $838, transfer agent filing
fees  of $679, and travel and promotion of $24  The expenses incurred during the
fiscal  year  ended March 31, 2003, consisted of accounting and audit of $1,000,
bank  charges  of $23, foreign exchange of $21 and office and telephone of $200.

     The  Company  had a net loss of $17,693 for the fiscal year ended March 31,
2004,  as  compared  to a net loss of $1,244 for the fiscal year ended March 31,
2003.  The  Company  had an accumulated deficit of $27,882 as of March 31, 2004.

LIQUIDITY  AND  CAPITAL  RESOURCES

     As  of March 31, 2004, the Company had cash of $101,029, which was its only
current  asset.  As of March 31, 2004, the Company had total current liabilities
of  $18,042,  consisting  of  accounts payable of $1,478, accrued liabilities of
$10,176  and  an  amount  due  to  related  parties  of  $6,388.

     As  of March 31, 2004, the Company had $82,987 of working capital, compared
to  a  working capital deficiency of $3,553 as of March 31, 2003.  The change is
due  to  the  proceeds  from  the  Company's  IPO.

     For  the  fiscal year ended March 31, 2004, the Company used $8,327 of cash
in  its  operations, which consisted of its $17,693 net loss for the period that
was offset by a $32 decrease in prepaid deposits, an $8,654 increase in accounts
payable  and  accrued liabilities, and a $680 increase in amounts due to related
parties.

     The  Company  did  not have any cash flows from investing activities during
the  fiscal  year  ended  March  31,  2004.

     The  Company  had  $109,269  of  net  cash provided by financing activities
during  the  fiscal  year  ended March 31, 2004, which consisted of $12,745 from
related  party  loans  made  to  the  Company, $91,524, net of offering costs of
$8,476,  from the issuance of common stock in connection with the IPO and $5,000
from  a  sale  of  restricted  shares  to  an  individual  investor.

                                      -17-
<PAGE>

     The funds raised in our IPO cover only the development of the client-server
system.  If  after  completing the development stage, the Company cannot sustain
itself  through  cash  flows  from  operations,  the  Company  will  require
approximately  $     250,000  of  additional  capital  resources to continue its
operations.  At  this  time,  the  Company  has  not  secured  or identified any
additional  financing for use after the Company completes the development stage.
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.

     The  Company  is exploring merger and acquisition opportunities.  There can
be no assurance that a merger and acquisition transaction will be completed.  If
a  transaction  is  completed,  it will likely result in a change in control and
dilution  to  the  current  stockholders.

RISK  FACTORS

     We  are subject to all the risks inherent to a development stage company in
the  computer  products industry. 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:

WE  ARE  A NEW BUSINESS WITH A LIMITED OPERATING HISTORY AND NO REVENUES TO DATE
AND ARE NOT LIKELY TO SUCCEED UNLESS WE CAN OVERCOME THE MANY OBSTACLES WE FACE.
IF  WE  FAIL TO OVERCOME THESE OBSTACLES, IT WILL HAVE A MATERIAL ADVERSE EFFECT
ON  OUR  BUSINESS  OPERATIONS.

     We  are  a development-stage company with limited prior business operations
and  no  revenues.  We  commenced  our  operations  relating  to our open source
software  business  plan  on  May 1, 2001. We are presently engaged in the early
stage  development  of  certain computer products and services. After completing
our  development  stage,  unless  we  are able to sustain our business from cash
flows  from  operations  or  raise $250,000 of additional funding, we may not be
able  to  successfully implement our longer-range business plan and our business
will  most  likely  fail.  Because of our limited operating history, you may not
have  adequate  information  on which you can base an evaluation of our business
and  prospects.  In  order  to  establish ourselves in the computer products and
services  market,  we  are  dependent  upon continued funding and the successful
development  and  marketing of our products. If we cannot overcome the increased
risks,  uncertainties,  difficulties  and  expenses  we  face  as a research and
development  company,  it  will  have a material adverse effect on our business.

WE  HAVE  A  HISTORY  OF  LOSSES AND AN ACCUMULATED DEFICIT AND WE EXPECT FUTURE
LOSSES  THAT  MAY  CAUSE  OUR  STOCK  VALUE  TO  DECLINE.

                                      -18-
<PAGE>

     Since  inception  on  December  13,  2000,  we  have incurred a net loss of
$27,882.  We expect to lose more money as we spend additional capital to develop
and  market  our  products  and establish our infrastructure and organization to
support anticipated operations. We cannot be certain whether we will ever earn a
significant  amount of revenues or profit, or, if we do, that we will be able to
continue  earning  such revenues or profit. Such economic weakness may limit our
ability to develop and ultimately market our products which will have a material
adverse  effect  on  our  business.

OUR  INABILITY  TO  RETAIN  AND ATTRACT KEY PERSONNEL COULD ADVERSELY AFFECT OUR
BUSINESS  AND  WE  MAY  NOT  BE  ABLE  TO  COMPLETE  OUR  PRODUCT  DEVELOPMENT.

     We  are heavily dependent on the continued efforts of Gregory Corcoran, our
President,  Chief  Executive  Officer,  Secretary,  Treasurer,  Chief  Financial
Officer and our sole Director.  We have no formal employment agreements with Mr.
Corcoran.  Mr. Corcoran's departure would result in us being non-operational. We
believe  that our future success will also depend on the abilities and continued
service consultants involved in the research and development of our products. If
we  are  unable  to retain the services of these persons, or if we are unable to
attract  additional  qualified employees, researchers and consultants, we may be
unable  to  successfully  finalize  and  eventually market our computer products
being  developed,  which  will  have  a material adverse effect on our business.

OUR  RESEARCH  AND  DEVELOPMENT  EFFORTS  MAY  NOT RESULT IN COMMERCIALLY VIABLE
PRODUCTS  AND  WE  WOULD  NOT  BE  ABLE  TO  GENERATE  REVENUE.

     Our products are in the development stage. Further research and development
efforts  will  be required to develop these products to the point where they can
be incorporated into commercially viable or salable solutions. We have set forth
in  this  report of Form 10-KSB our proposed research and development program as
it is currently conceived. We cannot assure you, however, that this program will
be  accomplished  in  the  order  or in the time frame set forth. We reserve the
right  to  modify  the  research  and development program. We may not succeed in
developing  commercially  viable  products.  If  not,  our  ability  to generate
revenues  from  our  products  will  be  severely  limited.

WE  MAY  NOT  BE ABLE TO DEVELOP A VIABLE MARKET FOR OUR PRODUCTS AND THIS WOULD
ADVERSELY  EFFECT  OUR  RESULTS  OF  OPERATIONS.

     The  demand  and price for our products will be based upon the existence of
viable  markets. The extent to which we may gain a share of our intended markets
will  depend,  in  part,  upon  the  cost  effectiveness  and performance of our
products  when  compared  to  known  or unknown alternatives. If the products of
other companies provide more cost-effective alternatives or otherwise outperform
our  products, the demand for our products maybe adversely affected. Our success
will  be  dependent  upon  market  acceptance  of  our  products. Failure of our
products  to  achieve  and maintain meaningful levels of market acceptance would
materially  and  adversely  affect our business, financial condition, results of
operations  and  market  penetration.

                                      -19-
<PAGE>

WE  MAY  NOT BE ABLE TO COMPETE EFFECTIVELY IN THE COMPETITIVE COMPUTER PRODUCTS
INDUSTRY  AND  THIS  WOULD  ADVERSELY  EFFECT  OUR  RESULTS  OF  OPERATIONS.

     Our future success depends on our ability to compete effectively with other
manufacturers  of  computer  products, including major manufacturers of computer
hardware and Linux distributions that may have internal development programs. We
are  an  early-stage  research and development company engaged in developing our
initial  products.  We  have  not  yet  completed  our first product and have no
revenue  from  operations.  As  a  result, we may have difficulty competing with
larger,  established  computer companies. Most of our potential competitors will
be  established,  well-known  companies  that  have:

    - Substantially  greater  financial,  technical  and  marketing  resources;
    - Larger  customer  bases;
    - Better  name  recognition;
    - Related  product  offerings;  and
    - Larger  marketing  areas.

     Companies  such  as  Sun  Microsystems,  VA Software and Red Hat are major,
international  providers of active computer products in the Linux product arena.
Because  these  companies may possibly develop recentralized computing solutions
for  their  own  product  lines,  they may ultimately be in competition with us.
These  companies  represent  a wide array of computer products, technologies and
approaches.  Most  of  these  companies  have  more  resources  than  we do and,
therefore,  a greater opportunity to develop comparable products and bring those
products  to  market  more efficiently than us. If we do not compete effectively
with  current  and future competitors, it will have a material adverse effect on
our  future  growth  and  results  of  operations.

WE  MAY  INFRINGE THE PROPRIETARY RIGHTS OF OTHERS AND MAY HAVE TO PAY ROYALTIES
OR  STOP SHIPMENT OF OUR PRODUCTS AND THIS WOULD ADVERSELY AFFECT OUR RESULTS OF
OPERATIONS.

     Our  business  plans  call  for the use of Open Source Software technology.
This  technology  is  generally  accepted  to  be "freely" available in terms of
access  to  the  technology  and  in  price. However, it is possible that in the
future  others  may  claim ownership rights to portions of this technology. This
means  that  we  may  infringe  on proprietary rights of others. If an entity is
deemed  to own these rights we may have to pay a royalty or stop shipment of our
products all together. If this occurs, it will have a material adverse effect on
our  future  growth  and  results  or  operations.

BECAUSE  MR.  CORCORAN  OWNS 55.6% OF OUR COMMON STOCK, HE WILL EXERCISE CONTROL
OVER  CORPORATE  DECISIONS  THAT  MAY  BE  DISADVANTAGEOUS  TO  OTHER  MINORITY
SHAREHOLDERS.

     Gregory  Corcoran,  the  Company's  President,  Chief  Executive  Officer,
Secretary,  Treasurer,  Chief  Financial  Officer  and  sole  Director,  owns
approximately  55.6%  of  the issued and outstanding shares of our common stock.
Accordingly,  he  will  exercise  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 interests of Mr. Corcoran may differ
from  the  interests  of  the  other  stockholders  and thus result in corporate
decisions  that  are  disadvantageous  to  other  shareholders.

                                      -20-
<PAGE>

IF  THERE  IS  A  MARKET  FOR OUR COMMON STOCK, OUR STOCK PRICE MAY BE VOLATILE.

     If  there's  a  market for our common stock, we anticipate that such market
would be subject to wide fluctuations in response to several factors, including,
but  not  limited  to:

    - actual  or  anticipated  variations  in  our  results  of  operations;
    - our  ability  or  inability  to  generate  new  revenues;
    - increased  competition;  and
    - conditions  and  trends  in  the  computer products and services industry.

     Further,  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.

WE  ARE  EXPLORING  MERGER  AND  ACQUISITION  OPPORTUNITIES.

     We  are  exploring  merger  and acquisition opportunities.  There can be no
assurance  that  a  merger  and acquisition transaction will be completed.  If a
transaction  is  completed,  it  will  likely  result in a change in control and
dilution  to  the  current  stockholders.  If  we  do  not complete a merger and
acquisition  transaction,  it may have a material adverse effect on our business
operations  as  there is no assurance that we will be able to obtain the funding
necessary  to  take  our  initial  product  to  market.

CRITICAL  ACCOUNTING  POLICIES

     Our  discussion  and  analysis  of  our  financial condition and results of
operations  is  based  upon  our  audited  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.

     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 attain 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.

                                      -21-
<PAGE>

     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. Foreign currency transactions are primarily undertaken
in  Canadian  dollars.  The  Company  has  not,  to  the  date of the financials
statements  provided  herein,  entered into any derivative instruments to offset
the  impact  of  foreign currency fluctuations.  Significant fluctuations in the
price  of  the  Canadian  Dollar  relative  to  the  U.S.  Dollar  would  have a
substantial  impact  on  the Company's account balances that have been converted
into  U.S.  Dollars.

ITEM  7.  FINANCIAL  STATEMENTS

     The  financial statements for the fiscal year ended March 31, 2004, audited
by  Manning  Elliot,  Chartered  Accountants,  and  the  comparative  financial
statements  for  the  fiscal  year  ended  March  31,  2003, and the period from
December  13, 2000 (Date of Inception) to March 31, 2003, audited by Lancaster &
David,  Chartered  Accountants,  are  included  herein.

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)


                                      Index


Independent  Auditors'  Report                                       F-1

Balance  Sheets                                                      F-2

Statements  of  Operations                                           F-3

Statements  of  Cash  Flows                                          F-4

Statements  of  Stockholders'  Equity                                F-5

Notes  to  the  Financial  Statements                                F-6

                                      -22-
<PAGE>

MANNING ELLIOTT
CHARTERED ACCOUNTANTS
11th floor, 1050 West Pender Street
Vancouver, BC, Canada V6E 3S7
Phone: 604.714.3600
Fax: 604.714.3669
Web: manningelliott.com

                          Independent Auditors' Report
                          -----------------------------


To  the  Stockholders  and  Board  of  Directors  of
Dragon Gold Resources, Inc. (formerly Folix Technologies, Inc.) (A Development
Stage  Company)

We  have  audited  the accompanying balance sheet of Dragon Gold Resources, Inc.
(formerly  Folix  Technologies,  Inc.) (A Development Stage Company) as of March
31,  2004  and the related statement of operations, cash flows and stockholders'
equity  for  the  year  then  ended.  These  financial  statements  are  the
responsibility  of the Company's management. Our responsibility is to express an
opinion  on  these  financial  statements  based  on our audit. The accompanying
balance  sheet of Dragon Gold Resources, Inc. (formerly Folix Technologies, Inc.
as  of  March  31,  2003 and the related statements of operations, stockholders'
deficit  and  cash flows accumulated for the period from December 13, 2000 (Date
of  Inception) to March 31, 2003 and the year ended March 31, 2003, were audited
by  other  auditors.  Those  auditors  expressed an unqualified opinion on those
financial  statements  in  their  report  dated  May  5,  2003  and  included an
explanatory  paragraph  describing  the  substantial  doubt  about the Company's
ability  to  continue  as  a  going  concern.

We  conducted  our  audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements  are free of material misstatement. An audit includes examining, on a
test  basis,  evidence  supporting  the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made  by  management,  as well as evaluating the overall
financial  statement  presentation.  We  believe  that  our  audit  provides  a
reasonable  basis  for  our  opinion.

In  our  opinion, the aforementioned financial statements present fairly, in all
material  respects,  the  financial  position  of  Dragon  Gold  Resources, Inc.
(formerly  Folix  Technologies,  Inc.), as of March 31, 2004, and the results of
its  operations  and  its cash flows for the year then ended, in conformity with
accounting  principles  generally  accepted  in  the  United  States.

The  accompanying  financial  statements have been prepared assuming the Company
will  continue  as  a  going  concern.  As  discussed in Note 1 to the financial
statements,  the  Company  has  never  generated  any  revenues and has incurred
operating  losses  since  inception. These factors raise substantial doubt about
the  Company's  ability  to  continue  as a going concern. Management's plans in
regard  to  these matters are also discussed in Note 1. The financial statements
do  not  include  any  adjustments  that  might  result from the outcome of this
uncertainty.


/s/  "Manning  Elliott"


CHARTERED  ACCOUNTANTS
Vancouver,  Canada
June  2,  2004, except as to Note 6
which is as of June 14, 2004

                                      F-1

<PAGE>

<TABLE>
<CAPTION>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Balance  Sheets
(expressed  in  U.S.  dollars)

                                                                March 31,   March 31,
                                                                  2004       2003
                                                                    $          $
<S>                                                             <C>        <C>
Assets

Current Assets

Cash                                                             101,029         87
Amount due from related party                                          -         64
Deposits                                                               -         32

Total Assets                                                     101,029        183


Liabilities and Stockholders' Equity (Deficit)

Current Liabilities

Accounts payable                                                   1,478          -
Accrued liabilities                                               10,176      3,000
Due to related parties (Note 4)                                    6,388        736

Total Current Liabilities                                         18,042      3,736

Commitments (Note 1)

Stockholders' Equity (Deficit)

Common Stock, 500,000,000 common shares authorized with a par
value of $0.001, 50,396,794 and 46,452,000 common shares issued
and outstanding respectively                                      50,397      46,452

Additional Paid In Capital (Discount) (Note 3 (a))                60,472     (39,816)

Deficit Accumulated During the Development Stage                 (27,882)   (10,189)


Total Stockholders' Equity (Deficit)                              82,987     (3,553)


Total Liabilities and Stockholders' Equity                       101,029        183


</TABLE>

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

                                      F-2

<PAGE>

<TABLE>
<CAPTION>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Statements  of  Operations
(expressed  in  U.S.  dollars)


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

Revenue                                          -             -               -

Expenses

Accounting and audit                          8,600        1,000          11,600
Bank charges                                    308           23             380
Consulting (Note 4(c))                        1,200            -           5,200
Foreign exchange                                139           21             214
Investor relations                            1,307            -           1,307
Legal and organizational                      4,598            -           5,568
Office and telephone                            838          200           1,363
Transfer agent and filing fees                  679            -             679
Travel and promotion                             24            -             191
Write-off of assets                               -            -           1,380
                                             17,693        1,244          27,882
Net Loss for the Period                     (17,693)      (1,244)        (27,882)

Net Loss Per Share - Basic and Diluted            -            -

Weighted Average Shares Outstanding       47,145,000    46,452,000

</TABLE>

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

                                      F-3

<PAGE>

<TABLE>
<CAPTION>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Statements  of  Cash  Flows
(expressed  in  U.S.  dollars)


                                                                                  Accumulated From
                                                        Year           Year       December 13, 2000
                                                        Ended          Ended     (Date of Inception)
                                                       March 31,      March 31,      to March 31,
                                                         2004           2003            2004
                                                           $              $               $
<S>                                                    <C>        <C>       <C>
Cash Flows to Operating Activities

Net loss for the period                                 (17,693)      (1,244)          (27,882)

Adjustments to reconcile net loss to cash

Expenses settled with issuance of stock                       -           -             5,070

Change in operating assets and liabilities
Decrease in prepaid deposit                                  32            -                -
Increase in accounts payable and accrued liabilities      8,654        1,000           11,654
Increase in amounts due to related parties                  680          263            1,352
-
Net Cash Provided by (Used in) Operating Activities      (8,327)          19           (9,806)

Cash Flows from Financing Activities

Proceeds from related party loans                        12,745            -           12,745
Proceeds from issuance of common shares, net             96,524            -           98,090

Net Cash Provided by Financing Activities               109,269            -          110,835

Increase in cash                                        100,942           19          101,029

Cash - beginning of period                                   87           68                -

Cash - end of period                                    101,029           87          101,029

Non-Cash Financing Activities

Common stock issued for asset purchase                        -            -              100
Common stock issued for related party debt settlement     7,708            -            7,708
Common stock issued for payment of expenses                   -            -            4,970

Supplemental Disclosures

Interest paid                                                 -            -                -
Income tax paid                                               -            -                -
</TABLE>

    (The accompanying notes are an integral park of the financial statements)

                                      F-4

<PAGE>

<TABLE>
<CAPTION>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Statement  of  Stockholders'  Equity
From  December  13,  2000  (Date  of  Inception)  to  March  31,  2004
(expressed  in  U.S.  dollars)



                                                                                                   Deficit
                                                                                      Additional   Accumulated
                                                                                      Paid In      During the
                                                                                      Capital      Development
                                                                  Shares      Amount  (Discount)    Stage          Total
                                                                     #          $          $           $              $
<S>                                                             <C>        <C>     <C>       <C>        <C>
Balance - December 13, 2000 (Date of Inception)                         -         -           -         -               -

Common stock issued for cash                                    10,962,000     10,962    (9,396)        -            1,566

Common stock issued for organizational expenses                  6,790,000      6,790    (5,820)        -              970

Common stock issued for asset purchase                             700,000        700      (600)        -              100

Net loss for the period                                                 -         -           -     (3,437)         (3,437)


Balance - March 31, 2001                                        18,452,000     18,452   (15,816)    (3,437)           (801)

Common stock issued for services                                28,000,000     28,000   (24,000)        -            4,000

Net loss for the year                                                   -         -           -     (5,508)         (5,508)


Balance - March 31, 2002                                        46,452,000     46,452   (39,816)    (8,945)         (2,309)

Net loss for the year                                                   -         -           -     (1,244)         (1,244)


Balance - March 31, 2003                                        46,452,000     46,452   (39,816)   (10,189)         (3,553)

Common stock issued for cash, net of offering costs of $8,476    3,675,000      3,675    92,849          -          96,524

Common stock issued for debt settlement                            269,794        270     7,439          -           7,709

Net loss for the year                                                   -         -           -    (17,693)        (17,693)


Balance - March 31, 2004                                        50,396,794     50,397    60,472    (27,882)         82,987

</TABLE>

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

                                      F-5

<PAGE>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Notes  to  the  Financial  Statements
For  the  Year  Ended  March  31,  2004
(expressed  in  U.S.  dollars)


1.     Development  Stage  Company
Folix Technologies Inc. (the "Company") was incorporated in the State of Nevada,
U.S.A.  on  December  13,  2000  and  is  based  in Vancouver, B.C., Canada.
Effective June 14, 2004, the Company changed its name to Dragon Gold Resources,
Inc.  The Company's  principal  business  is  the development of a Linux based
Application server and thin client computing systems.

On  March  9,  2001,  the  Company  entered  into an asset purchase agreement to
acquire  certain  hair  loss  prevention  and  hair  loss  regrowth intellectual
property.  The Company was to pay CDN$25,000 in monthly installments and issue
700,000  shares  of  common  stock.  The  Company paid CDN$2,000 (US $1,280) and
issued 700,000 shares of common stock before terminating the agreement on May 1,
2001.  The  Company  is  no  longer  involved  in  the  hair  loss  business.

The  Company  is in the early development stage. In a development stage company,
management  devotes  most  of  its  activities  in  developing  a market for its
products  and  services.  Planned  principal  activities have not yet begun. The
ability  of the Company to emerge from the development stage with respect to any
planned  principal business activity is dependent upon its successful efforts to
raise  additional equity financing and/or attain profitable operations. There is
no  guarantee  that  the  Company  will  be  able  to  complete any of the above
objectives.  During the period since inception on December 13, 2000 to March 31,
2004,  the  Company  has incurred operating losses aggregating $27,882. There is
substantial  doubt  regarding  the  Company's  ability  to  continue  as a going
concern.

During  the  year,  the  Company  raised $100,000 from an offering under an SB-2
Registration  Statement  that  was  declared  effective  December  19, 2003. The
Company  has  enough cash on hand to cover basic operating expenses for the next
twelve  months.


2.  Summary  of  Significant  Accounting  Policies
(a)  Basis  of  Presentation

    The Company has not produced any revenues from its principal business and is
    a development stage company as defined by Statement of Financial Accounting
    Standard  ("SFAS")  No.  7.

(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)  Year  End

     The  Company's  fiscal  year  end  is  March  31.

(d) Cash  and  Cash  Equivalents

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

(e) 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 primarily undertaken in Canadian dollars. The Company
has  not,  to  the  date of these financials statements, entered into derivative
instruments  to  offset  the  impact  of  foreign  currency  fluctuations.

                                      F-6

<PAGE>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Notes  to  the  Financial  Statements
For  the  Year  Ended  March  31,  2004
(expressed  in  U.S.  dollars)


2.  Summary  of  Significant  Accounting  Policies  (continued)

(f)     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.

(g)     Financial  Instruments

Financial  instruments  which include cash and equivalents, accounts payable and
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. The Company's operations are in Canada and virtually all
of  its 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.

(h)     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  March  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.

(i)     Recent  Accounting  Pronouncements

In  December  2003,  the United States Securities and Exchange Commission issued
Staff  Accounting  Bulletin  No.  104,  "Revenue  Recognition"  (SAB 104), which
supersedes  SAB  101, "Revenue Recognition in Financial Statements." The primary
purpose  of  SAB  104  is  to  rescind  accounting guidance contained in SAB 101
related  to  multiple  element  revenue  arrangements, which was superseded as a
result  of the issuance of EITF 00-21, "Accounting for Revenue Arrangements with
Multiple  Deliverables." While the wording of SAB 104 has changed to reflect the
issuance  of  EITF  00-21,  the revenue recognition principles of SAB 101 remain
largely  unchanged  by  the issuance of SAB 104. The adoption of SAB 104 did not
have  a  material  impact  on  the  Company's  financial  statements.

In  May  2003,  the  FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments  with  Characteristics of both Liabilities and Equity". SFAS No. 150
establishes  standards  for  how  an  issuer  classifies  and  measures  certain
financial  instruments  with  characteristics of both liabilities and equity. It
requires that an issuer classify a financial instrument that is within its scope
as a liability (or an asset in some circumstances). The requirements of SFAS No.
150  apply  to issuers' classification and measurement of freestanding financial
instruments,  including  those  that  comprise  more  than one option or forward
contract.  SFAS  No.  150  does  not  apply  to  features that are embedded in a
financial  instrument  that is not a derivative in its entirety. SFAS No. 150 is
effective for financial instruments entered into or modified after May 31, 2003,
and  otherwise  is  effective  at  the  beginning  of  the  first interim period
beginning  after  June  15,  2003,  except  for  mandatory  redeemable financial
instruments  of  non-public  entities.  It is to be implemented by reporting the
cumulative  effect  of  a  change  in  an  accounting  principle  for  financial
instruments  created before the issuance date of SFAS No. 150 and still existing
at  the  beginning  of  the  interim  period  of  adoption.  Restatement  is not
permitted.  The  adoption of this standard did not have a material effect on the
Company's  results  of  operations  or  financial  position.

                                      F-7

<PAGE>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Notes  to  the  Financial  Statements
For  the  Year  Ended  March  31,  2004
(expressed  in  U.S.  dollars)


3.     Common  shares

     (a)    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 $.001 per share of common
stock.

     (b)    Pursuant  to  an  SB-2 Registration Statement, on February 20, 2004,
the  Company  issued  3,500,000 shares of its common stock at $0.0286 per common
share  for  total  proceeds  of  $91,524  net  of  offering  costs  of  $8,476.

     (c)    On September 30, 2003, the Company issued 269,794 shares of its
common  stock to settle shareholder loans of $7,709. The loans were converted to
common  shares  at  $0.0286  per  common  share.

     (d)    On April 7, 2003, the Company issued, under Regulation S, a total
of 175,000 shares of its common stock at $0.0286 per share for total proceeds of
$5,000.


4.     Related Party Transactions/Balances

(a)     Due to director

The amount due to a director represents expenses of $1,028 (2003 - $636) paid on
behalf of the Company. The amount due is non-interest bearing, unsecured and has
no specific terms  of  repayment.

(b)     Due to stockholder

The amount due to a shareholder represents expenses of $5,136 (2003 - $100) paid
on  behalf of the Company. The amount due is non-interest bearing, unsecured and
has  no  specific  terms  of  repayment.

(c)     Transactions  with  director

During  the  year,  the Company paid $1,200 for consulting services performed by
the  sole  director  of  the  Company.

(d)     Due  to  affiliated  company

The  amount due to a company controlled by the sole director represents expenses
of  $224  paid on behalf of the Company. The amount is non-interest bearing with
no  specific  terms  of  repayment.

(e)     Common shares issued to shareholders

On  September 30, 2003, the Company issued 269,794 shares of its common stock to
settle shareholder loans of $7,709. The loans were converted to common shares at
$0.0286 per common share.

5.     Income  Tax

Potential benefits of income tax losses are not recognized in the accounts until
realization  is  more  likely  than  not.  The  Company has adopted Statement of
Financial  Accounting  Standards  No.  109 ("SFAS 109") as of its inception. The
Company  has  incurred net operating losses of $27,882, which expire starting in
2020. Pursuant to SFAS 109 the Company is required to compute tax asset benefits
for  net  operating  losses  carried forward. Potential benefit of net operating
losses  have  not  been  recognized  in  these  financial statements because the
Company  cannot  be  assured  it is more likely than not it will utilize the net
operating  losses  carried  forward  in  future  years.

                                      F-8

<PAGE>

Dragon Gold Resources, Inc.
(Formerly Folix  Technologies,  Inc.)
(A  Development  Stage  Company)
Notes  to  the  Financial  Statements
For  the  Year  Ended  March  31,  2004
(expressed  in  U.S.  dollars)


5.     Income  Tax  (continued)

The components of the net deferred tax asset at March 31, 2004 and 2003, and the
statutory  tax  rate,  the  effective  tax  rate  and  the elected amount of the
valuation  allowance  are  scheduled  below:
                                            2004           2003
                                              $              $

               Net Operating Loss          17,693          1,244

               Statutory Tax Rate            34%            34%

               Effective Tax Rate             -              -

               Deferred Tax Asset           6,016           423

               Valuation Allowance         (6,016)         (423)

               Net Deferred Tax Asset         -              -

6.  Subsequent Event

     Effective  June  14,  2004,  the  Company  changed  its name to Dragon Gold
Resources,  Inc. and also affected a forward stock split on a seven to one basis
where  one  fully  paid common share was changed into seven common shares of the
Company. All share amounts have been retroactively adjusted to reflect the stock
split.  The  Company  also  increased  the amount of authorized common shares to
500,000,000  and  reauthorized the par value of $.001 per share of common stock.

                                       F-9

<PAGE>


ITEM  8.  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
FINANCIAL  DISCLOSURE.

     Effective  May  26,  2004,  the  client-auditor  relationship  between  the
Company  and  Lancaster  & David, Chartered Accountants ("Lancaster"), ceased as
the  former  accountant  declined  to stand for re-election.   On that date, the
Company's  Board of Directors approved a change of accountants and the Company's
management  engaged  Manning  Elliott, Chartered Accountants ("Manning"), as its
principal  independent  public  accountant  for  the fiscal year ended March 31,
2004.  Lancaster  had served as the Company's auditor for the fiscal years ended
March  31,  2003  and  2002.

     Manning is succeeding Lancaster. Lancaster audited the balance sheet of the
Company  as  of  March 31, 2003 and March 31, 2002 and the related statements of
operations,  statement of stockholders' equity, and the statements of cash flows
for  the years then ended. Lancaster's report on the financial statements of the
Company  for  the  fiscal years ended March 31, 2003 and March 31, 2002, and any
later  interim period, including the interim period up to and including the date
the  relationship  with  Lancaster ceased did not contain any adverse opinion or
disclaimer of opinion and was not qualified or modified as to uncertainty, audit
scope  or  accounting principles except for concerns about the Company's ability
to  continue  as  a  going  concern.

     In  connection with the audit of the Company's fiscal years ended March 31,
2004  and 2003, and any later interim period, including the interim period up to
and  including  the date the relationship with Lancaster ceased, there have been
no  disagreements  with  Lancaster  on  any  matters of accounting principles or
practices,  financial statement disclosure of auditing scope or procedure, which
disagreement(s),  if  not  resolved  to the satisfaction of Lancaster would have
caused  Lancaster to make reference to the subject matter of the disagreement(s)
in  connection with its report on the Company's financial statements. There have
been  no  reportable  events  as  defined in Item 301(a)(1)(v) of Regulation S-K
during  the Company's two most recent fiscal years ended March 31, 2004, and any
later  interim period, including the interim period up to and including the date
the  relationship  with  Lancaster  ceased.

                                      -23-
<PAGE>

     The  Company  authorized Lancaster to respond fully to the inquiries of the
new  auditors hired by the Company relating to their engagement as the Company's
independent  accountant.  The  Company   requested  that  Lancaster  review  the
disclosure  in  the report of Form 8-K filed by the Company on May 27, 2004, and
Lancaster  was  given  an  opportunity  to  furnish  the  Company  with a letter
addressed to the Commission containing any new information, clarification of the
Company's expression of its views, or the respect in which it did not agree with
the  statements made by the Company therein. Such letter was filed as an exhibit
to  such  report  on  Form  8-K.

     The  Company had not previously consulted with Manning regarding either (i)
the  application  of  accounting  principles  to a specified transaction, either
completed  or proposed; or (ii) the type of audit opinion that might be rendered
on  the  Company's financial statements; or (iii) any matter that was either the
subject matter of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation
S-K  and  the  related  instructions)  between  the  Company  and Lancaster, the
Company's  previous independent accountant, as there were no such disagreements,
or an other reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K)
during  the  Company's two most recent fiscal years ended March 31, 2004 and any
later  interim period, including the interim period up to and including the date
the relationship with Lancaster ceased. The Company had not received any written
or  oral advice concluding there was an important factor to be considered by the
Company  in  reaching  a  decision  as  to an accounting, auditing, or financial
reporting  issue.


     Manning  reviewed  the disclosure required by Item 304(a) before the report
of  Form  8-K  was  filed  by  the  Company on May 27, 2004, and was provided an
opportunity  to  furnish  the  Company with a letter addressed to the Commission
containing any new information, clarification of the Company's expression of its
views,  or  the  respects  in which it did not agree with the statements made by
the  Company in response to Item 304(a).  Such letter was filed as an exhibit to
such  report.

ITEM  8A.  CONTROLS  AND  PROCEDURES

     (a)     Evaluation  of  disclosure  controls  and procedures. The Company's
chief  executive  officer  and  chief  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 annual report (the "Evaluation Date"), has
concluded  that as of the Evaluation Date, the Company's disclosure controls and
procedures  were  adequate  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. There were no
significant  changes  in the Company's internal control over financial reporting
during  the  fourth  fiscal  quarter  that materially affected, or is reasonably
likely  to  materially  affect,  the  Company's  internal control over financial
reporting.

                                      -24-
<PAGE>

                                    PART III

ITEM  9.  DIRECTORS,  EXECUTIVE  OFFICERS,  PROMOTERS  AND  CONTROL  PERSONS;
         COMPLIANCE  WITH  SECTION  16(a)  OF  THE  EXCHANGE  ACT.

     Each  of our directors is elected by the stockholders to a term of one year
and  serves  until  his  or  her successor is elected and qualified. Each of the
officers  is  elected by the Board of Directors to a term of one year and serves
until  his or her successor is duly elected and qualified, or until he or she is
removed  from  office.  The  Board  of  Directors has no nominating, auditing or
compensation  committees.

The  Directors  and  Officers  of  the  Company  are  as  follows:

                                                                 Served  as  a
 Name                   Age      Position                       Director  Since:
 ----                   ---      --------                        ---------------
Gregory  Corcoran       41       President,  Chief  Executive    December  2000
                                 Officer,  Secretary,
                                 Treasurer,  Chief  Financial
                                 Officer  and  Director

     Gregory  Corcoran  founded  the  Company  in  December  2000.  Mr. Corcoran
currently  devotes 30 hours per week to the Company's business.  During the last
five years from 1998 to the present Gregory Corcoran has been self-employed as a
technology  consultant  through Spidex Technologies ("Spidex"), which he founded
in  1996.  Spidex  sold  web  server  technology  for  the  Microsoft Windows CE
operating system to Intrinsyc Software ("Intrinsyc"). This web server technology
allowed  Intrinsyc  to  become  a  leader  within  the  Windows  CE industry and
establish  Intrinsyc as a leader in the Windows CE market space.  The web server
product  won  industry  recognition.  From  December  1999 to September 2001 Mr.
Corcoran also served as director and CEO of AudioMonster Online, Inc., a company
working  in the MP3 music market area.  Mr. Corcoran has been published in trade
journals  including  the  CE  Tech Journal, a Microsoft sponsored trade journal.

     Mr.  Corcoran  received  a  B.Sc.  Degree  majoring  in  Physics  from  the
University  of  British Columbia in 1986 and a Diploma of Technology in Robotics
from  the  British  Columbia  Institute  of  Technology  in  1989.

EMPLOYMENT  AND  CONSULTING  AGREEMENTS

     The  Company  plans  to  pay Gregory Corcoran, its Chief Executive Officer,
$2,000  per  month  during  the  fiscal  year ending March 31, 2005, for project
management  and  development  services.  The  Company,  however, does not have a
formal  employment  or  consulting  agreement  with  Mr. Corcoran regarding such
compensation.  The  Company  will pay Mr. Corcoran prospectively without regards
to  past  services  that  Mr.  Corcoran  provided  to  the  Company.

                                      -25-
<PAGE>

SECTION  16  (A)  BENEFICIAL  OWNERSHIP  REPORTING  COMPLIANCE

     Section  16(a) of the securities Exchange Act of 1934, as amended, requires
the Company's directors, executive officers and persons who own more than 10% of
a  class  of  the  Company's  equity  securities  which are registered under the
Exchange Act to file with the Securities and Exchange Commission initial reports
of  ownership and reports of changes of ownership of such registered securities.
Such  executive  officers,  directors and greater than 10% beneficial owners are
required  by  Commission  regulation  to  furnish the Company with copies of all
Section  16(a)  forms  filed  by  such  reporting  persons.

     To  the Company's knowledge, based solely on a review of the copies of such
reports  furnished  to  the Company and on representations that no other reports
were  required,  no  person required to file such a report failed to file during
fiscal  2003.  Based  on  stockholder  filings with the SEC, Gregory Corcoran is
subject  to  Section  16(a)  filing  requirements.

CODE  OF  ETHICS

     The  Board  of Directors adopted a Code of Ethics in June 2004, meeting the
requirements  of Section 406 of the Sarbanes-Oxley Act of 2002. The Company will
provide  to  any  person  without  charge,  upon request, a copy of such Code of
Ethics.  Persons wishing to make such a request should contact Gregory Corcoran,
Chief  Executive Officer, at 205-1072 Davie Street, Vancouver, British Columbia,
Canada  V6E  1M3.

ITEM  10.  EXECUTIVE  COMPENSATION

     Compensation  paid  to  Officers  and Directors is set forth in the Summary
Compensation  Table below.  The Company may reimburse its Officers and Directors
for  any and all out-of-pocket expenses incurred relating to the business of the
Company.

<TABLE>
<CAPTION>

                           SUMMARY COMPENSATION TABLE

                                                        LONG-TERM COMPENSATION
                                                   ----------------------------------
                            ANNUAL COMPENSATION          AWARDS        PAYOUTS
                          -----------------------  ------------------  -------

                                                            SECURITIES
                                                              UNDERLY-
                                            OTHER    RE-        ING              ALL
                                            ANNUAL STRICTED   OPTIONS/           OTHER
 NAME AND PRINCIPAL                        COMPEN-  STOCK      SARs     LTIP    COMPEN-
     POSITION       YEAR  SALARY   BONUS   SATION   AWARD(S) (NUMBER)  PAYOUTS  SATION
------------------  ----  -------  -----   ------  --------  --------  -------  ------
<S>                      <C>                          <C>                       <C>
Gregory Corcoran,  2004  $2,726(1)  --        --      --        --       --       --
CEO, President,    2003  $0.00      --        --      --        --       --       --
Secretary,         2002  $0.00      --        --      --        --       --       --
Treasurer and
Director
</TABLE>


(1)  The  Company  paid  or  incurred  $1,200 to 591519 B.C. Ltd. for consulting
services  and  $1,526  to  591519  B.C. Ltd. for Form SB-2 development and EDGAR
services  as  of  March  31,  2004.  Gregory Corcoran is the beneficial owner of
591519  B.C.  Ltd.

                                      -26-
<PAGE>

ITEM  11.  SECURITY  OWNERSHIP  OF  CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED  STOCKHOLDER  MATTERS

     The  following  table  sets  forth  information  as  of June 14, 2004, with
respect to the beneficial ownership of the common stock by (i) each director and
officer  of  the  Company,  (ii) all directors and officers as a group and (iii)
each  person  known  by the Company to own beneficially 5% or more of the common
stock:

    Name  and  Address  of                 Shares Owned               % of Class
    Beneficial  Owner                      Beneficially(1)               Owned
    -------------------                    ---------------             ---------
    Gregory  Corcoran                        28,000,000                  55.6%
    205-1072  Davie  Street
    Vancouver,  B.C.
    Canada  V6E  1M3

    All  Officers  and  Directors            28,000,000                  55.6%
    as  a  Group  (1  person)

(1)     Beneficial  ownership  has been determined in accordance with Rule 13d-3
of  the  Securities  Exchange  Act  of 1934, as amended.  Generally, a person is
deemed  to  be the beneficial owner of a security if he has the right to acquire
voting  or  investment  power  within 60 days of the date of this report on Form
10-KSB.

     This  table  is  based  upon  information  derived  from our stock records.
Unless  otherwise  indicated,  we believe that each of the stockholders named in
this  table  has  sole or shared voting and investment power with respect to the
shares  indicated  as  beneficially  owned.

     The Company is engaged in negotiations regarding certain transactions that,
if  consummated,  will result in a change in control.  In anticipation of such a
change in control and change in business focus, the Company has changed its name
to  Dragon  Gold  Resources,  Inc.

ITEM  12.  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

     On  December  18,  2000,  the  Company  issued  970,000 pre-split shares to
Gregory  Corcoran,  its  Chief  Executive Officer.  The 970,000 pre-split shares
issued  at  a par value of $0.001 represented a payment of $970 to reimburse Mr.
Corcoran  for  organizational  fees  paid  by  him  on  behalf  of  the company.

     On  May  1,  2001  the  Company  issued  4,000,000 pre-split shares to Greg
Corcoran  pursuant  to a Business Plan Purchase Agreement dated May 1, 2001. The
4,000,000 pre-split shares issued at a par value of $0.001 represented a payment
of  $4,000  pursuant  to  the  Business Plan Purchase Agreement.  In return, Mr.
Corcoran  provided  the Company with the exclusive right to develop the Business
Plan provided the Company is able to raise a minimum of $100,000 before December
31,  2004.  The  Company  has  raised  $100,000  from its IPO for such purposes.

     In  fiscal  year  2004  which ran from April 1, 2003 to March 31, 2004, the
Company  paid  $1,200  to  Mr. Corcoran's management company 591519 B.C. Ltd. to
compensate  Mr.  Corcoran  for  24 hours of work that he performed in connection
with  preparation  of  the  Company's  prospectus.

                                      -27-
<PAGE>

     As  of  March  31, 2004, the Company owed $224 directly to Mr. Corcoran and
$1,028  to  a  company  controlled  by  Mr. Corcoran for amounts paid by them on
behalf of the Company. The Company has since repaid this amount using funds from
the  IPO. The amount due was non-interest bearing, unsecured and had no specific
terms  of  repayment.


     In  June  2004, the Company paid $2,000 to 591519 B.C. Ltd. as compensation
for  consulting  services performed by Mr. Corcoran relating to audit management
and  other  management  services.  The  Company  intends to pay 591519 B.C. Ltd.
and/or  Mr.  Corcoran  $2,000  per  month  during  the next eleven months (or an
aggregate  of  $22,000)  for  consulting  services.


ITEM  13.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

     (a)  EXHIBITS

         Exhibit  No.       Description  of  Exhibit
         ----------         ----------------------

     3.1                    Articles  of  Incorporation             (1)

     3.2                    Certificate  of  Amendment              (2)

     3.3                    By-Laws                                 (1)

     10.1                   Business  Plan  Purchase  Agreement     (1)

     16.1                   Letter  from  Lancaster  &  David,
                            Chartered  Accountant                   (3)

     16.2                   Letter  from  Manning  Elliott,
                            Chartered  Accountant                   (3)

     31                     Certificate  of  the  Chief  Executive
                            Officer  and  Chief  Financial  Officer
                            pursuant  Section  302  of  the
                            Sarbanes-Oxley  Act  of  2002             *

     32                     Certificate  of  the  Chief  Executive
                            Office  and  Chief  Financial  Officer
                            pursuant  to  Section  906  of  the
                            Sarbanes-Oxley  Act  of  2002             *

(1)  Filed  as  Exhibits  3.1,3.2 and 10.1 to registration statement on Form SB-
     2  filed  on  August  13,  2003,  as  amended,  and  incorporated herein by
     reference.

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

(3)  Filed  as  Exhibits  16.1  and  16.2 to report on Form 8-K filed on May 27,
     2004,  and  incorporated  herein  by  reference.

*    Filed  herewith  as  an  exhibit.

                                      -28-
<PAGE>

     (b)  REPORTS  ON  FORM  8-K

     The Company did not file any reports on Form 8-K during the last quarter of
the  period  covered  by  this  report.

     The  Company  filed the following two (2) reports of Form 8-K subsequent to
the  period  covered  by  this  report:

     (1)  Form  8-K  filed  on  May  27,  2004,  to report a change of auditors.

     (2)  Form  8-K  filed  on  June  14, 2004, to report a name change, forward
          stock split, increase in authorized shares, reauthorization of the par
          value  of  the  Company's  common  stock  and  a  new  ticker  symbol.

ITEM  14.  PRINCIPAL  ACCOUNTANT  FEES  AND  SERVICES

AUDIT  FEES

     The aggregate fees billed for each of the fiscal years ended March 31, 2004
and  2003 for professional services rendered by the principal accountant for the
audit  of  the  Company's  annual  financial  statements  was $3,000 and $1,500,
respectively.  The  aggregate  fees  billed  for  each of the fiscal years ended
March  31,  2004  and  2003  for professional services rendered by the principal
accountant  for  review of the financial statements included in the registrant's
Form  10-QSB  or  for  services  that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years  was  $1,000  and  $0,  respectively.

AUDIT  RELATED  FEES

None

TAX  FEES

None

ALL  OTHER  FEES

     The Company's principal accountant billed an aggregate of $1,600 during the
fiscal  years  ended  March  31,  2004  and 2003 as a fee for its consent to the
inclusion  of  its  Auditors'  Report in the Company's Registration Statement on
Form  SB-2,  as  amended.

                                   SIGNATURES

     In  accordance  with  Section 13 or 15(d) of the Securities Exchange Act of
1934,  the  Registrant  caused  this  report  to  be signed on its behalf by the
undersigned,  thereunto  duly  authorized.


                                             DRAGON  GOLD  RESOURCES,  INC.

DATED:  June  25  2004                      By:  /s/  Gregory  Corcoran
                                                  ------------------------
                                                  Gregory  Corcoran
                                                  Chief  Executive  Officer

                                      -29-
<PAGE>

In  accordance  with  the  Securities Exchange Act of 1934, this report has been
signed  below  by  the  following persons on behalf of the Registrant and in the
capacities  and  on  the  dates  indicated.

NAME                       TITLE                          DATE

/s/  Gregory  Corcoran     Chief  Executive  Officer,     June  25,  2004
----------------------     Chief  Financial  Officer,
Gregory  Corcoran          and  Director
                           (Principal  Executive  and
                           Financial  Officer)


                                      -30-
<PAGE>

EXHIBIT  31

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I,  Gregory  Corcoran,  certify  that:

1.     I  have  reviewed  this  annual  report  on  Form  10-KSB  of Dragon Gold
Resources,  Inc.;

2.     Based  on my knowledge, this 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 report;

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

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

a)     Designed  such  disclosure  controls  and  procedures,  or  caused  such
disclosure  controls  and  procedures  to  be  designed under my supervision, to
ensure  that  material  information  relating  to  the  small  business  issuer,
including  its  consolidated  subsidiaries, is made known to me by others within
those  entities,  particularly  during  the period in which this report is being
prepared;

b)     Paragraph  omitted  in  accordance  with  SEC  transition  instructions
contained  in  SEC  Release  No.  33-8238;

c)  Evaluated  the  effectiveness  of  the  small  business  issuer's disclosure
controls  and  procedures  and presented in this report my conclusions about the
effectiveness  of  the  disclosure controls and procedures, as of the end of the
period  covered  by  this  report  based  on  such  evaluation;  and

d)  Disclosed  in this report any change in the small business issuer's internal
control  over  financial  reporting  that  occurred  during  the  small business
issuer's  fourth  fiscal  quarter that has materially affected, or is reasonably
likely  to  materially affect, the small business issuer's internal control over
financial  reporting;  and

<PAGE>

5.     I  have disclosed, based on my most recent evaluation of internal control
over  financial reporting, to the small business issuer's auditors and the audit
committee  of  small business issuer's board of directors (or persons performing
the  equivalent  functions):

a)     All  significant  deficiencies  and  material weaknesses in the design or
operation  of  internal  control  over  financial reporting which are reasonably
likely  to  adversely  affect  the  small  business  issuer's ability to record,
process,  summarize  and  report  financial  information;  and

b)     Any  fraud,  whether  or  not material, that involves management or other
employees  who  have  a significant role in the small business issuer's internal
control  over  financial  reporting.

Date:  June  25,  2004


                                   By:  /s/Gregory  Corcoran
                                   -------------------------------
                                        Gregory  Corcoran,
                                        Chief  Executive  Officer  and
                                        Chief  Financial  Officer

<PAGE>

Exhibit  32


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,  Gregory  Corcoran,  certify,  pursuant to 18 U.S.C. Section 1350, as adopted
pursuant  to  Section  906  of  the  Sarbanes-Oxley Act of 2002, that the Annual
Report  of  Dragon Gold Resources, Inc. on Form 10-KSB for the fiscal year ended
March 31, 2004 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-KSB  fairly  presents  in  all  material respects the financial condition and
results  of  operations  of  Dragon  Gold  Resources,  Inc.


                                     By:/s/  Gregory  Corcoran
                                     --------------------------
                                     Name:  Gregory  Corcoran
                                     Title: Chief  Executive  Officer  and
                                            Chief  Financial  Officer
June  25,  2004

<PAGE>