**SECURITIES
      AND EXCHANGE COMMISSION**


Washington,
      D.C. 20549





FORM
      10-KSB





[
      X ] ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934





For
      the
      fiscal year ended March 31, 2007





OR





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





From
      the
      transition period from ____________ to ___________.





Commission
      File Number 000-50541





**Dragon
      Gold Resources, Inc.**


(Exact
      name of small business issuer as specified in its charter)





Nevada
            88-0507007(State
                or other jurisdiction of
              incorporation
                or organization)
            (IRS
                Employer Identification Number)





5075
      Westheimer Road, Suite 975, Houston, Texas 77056


(Address
      of principal executive offices)





(713)
      402-6700


(Issuer's
      telephone number)




Securities
        registered pursuant to Section 12(b) of the Act: None




Securities
      registered pursuant to Section 12(g) of the Act: $.001 Par Value Common
      Stock





Check
      whether the Issuer (1) has filed all reports required to be filed by Section
      13
      or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 o





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 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. o





Issuer’s
      revenues for the fiscal year ended March 31, 2007, were $0.00.





The
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates of the Issuer as of May 31, 2007, based upon the average bid
      and
      asked price as of such date on the OTC Bulletin Board, was
      $2,497,320.





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes x No o





The
      Registrant’s common stock outstanding as of May 31, 2007, was 500,000,000
      shares.





DOCUMENTS
      INCORPORATED BY REFERENCE:





The
      Registrant is incorporating by reference in Part III of this Form 10-KSB certain
      information contained in the Registrant’s definitive proxy statement for its
      annual meeting of shareholders, which was filed by the Registrant on June 1,
      2007.


Transitional
      Small Business Disclosure Format (Check One): Yes o No x





**DRAGON
      GOLD RESOURCES, INC.**


**INDEX
      TO FORM 10-KSB**


**March
      31, 2007**





**Page
                No.****Part
                I**
            Item
                1.
            Description
                of Business
            3Item
                2.
            Description
                of Property
            4Item
                3.
            Legal
                Proceedings
            5Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            5**Part
                II**
            Item
                5.
            Market
                for Common Equity, Related Stockholder Matters and
                Small Business Issuer Purchases of Equity Securities
            5Item
                6.
            Management’s
                Discussion and Analysis or Plan of Operations
            6Item
                7.
            Financial
                Statements
            7Item
                8.
            Changes
                in and Disagreements with Accountants on Accounting
                and Financial Disclosure
            22Item
                8A.
            Controls
                and Procedures
            23Item
                8B.
            Other
                Information
            24**Part
                III**
            Item
                9.
            Directors,
                Executive Officers, Promoters and Control
                Persons, and Corporate Governance; Compliance with Section 16(a)
                of the
                Exchange Act
            40Item
                10.
            Executive
                Compensation
            40Item
                11.
            Security
                Ownership of Certain Beneficial Owners and
                Management and Related Stockholder Matters
            40Item
                12.
            Certain
                Relationships and Related Party Transactions and
                Director Independence
            40Item
                13.
            Exhibits
            40Item
                14.
            Principal
                Accountant Fees and Services
            40








2


**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, 2007.





**PART
      I**





**ITEM
      1.****DESCRIPTION
      OF BUSINESS**





BUSINESS
      DEVELOPMENT





The
      Company was originally incorporated in Nevada in December 2000 as Folix
      Technologies Inc. In June 2004, the Company changed its name to Dragon Gold
      Resources, Inc. On May 31, 2007, the Company entered into and closed an
      agreement and plan of reorganization (the “Exchange Agreement”) with Secure
      Voice Communications, Inc., a Texas corporation (“Secure Voice”) and the
      stockholders of Secure Voice (the “Stock Transaction”). As a result of the Stock
      Transaction, Secure Voice became a wholly-owned subsidiary of the Company when
      the Company agreed to issue an aggregate of 3,207,840,000 shares of its common
      stock to the former shareholders of Secure Voice (in exchange for all the
      outstanding capital stock of Secure Voice), resulting in the former shareholders
      of Secure Voice owning approximately 98.8% of the issued and outstanding Dragon
      Gold common stock. As
      the
      articles of incorporation only authorized the issuance of 500,000,000 shares
      of
      common stock, the Company issued 450,053,276 shares of common stock and is
      obligated to issue an additional 2,757,786,724 shares of common stock. At the
      annual shareholders meeting scheduled for June 19, 2007, the shareholders are
      being asked to approve an 80-for-1 reverse split that will not reduce the number
      of authorized shares of common stock. If such reverse split is approved, the
      Company will issue the balance of these shares which will equate to 34,472,334
      shares on a post-split basis. Additionally,
      J. Leonard Ivins was appointed as a director and was also appointed to serve
      as
      chief executive officer and Carl A. Chase was appointed to serve as chief
      financial officer.





Subsequent
      to the acquisition of Secure Voice, the Company will focus its efforts for
      growth in the area of discovering and acquiring leading-edge niche technologies,
      acting as their incubator and nurturing those technologies into market ready
      applications.





EMPLOYEES





As
      of the
      date of this report, the Company has two employees who are J. Leonard Ivins
      and
      Carl A. Chase.





3




**ITEM
      2.****DESCRIPTION
      OF PROPERTY**





The
      Company does not currently own nor has any agreements which grant it any rights
      to mining operations. Following summarizes its previous mining agreements which
      have all been terminated as of March 31, 2007.







(a)
            On
                September 21, 2005, the Company entered into a cooperative agreement
                with
                Yinchuan Gaoxin District Shijin Mining Ltd. (“Yinchuan Mining”) to form a
                Sino-Foreign cooperative joint venture company (“JV Company”) for the
                exploration and development of the Xijishui Gold Property and its
                surrounding area located in Jingyuan County, Gansu Province, China.
                Pursuant to the agreement, the Company must pay $150,000 to Yinchuan
                Mining over a period of 12 months after Yinchuan Mining transfers
                its
                mineral exploration rights to the JV Company. The Company will have
                the
                right to earn an 80% interest in the JV Company by spending $1,200,000
                for
                exploration activities over a two year period. The term of the cooperation
                agreement was 30 years. In May 2006, the Company terminated the
                cooperative agreement with Yinchuan
                Mining.




(b)
            On
                September 10, 2005, the Company entered into a cooperative agreement
                with
                the Guilin Research Institute of Geology and Mineral Resources
                (“Institute”) to form a Sino-Foreign cooperative joint venture company
                (“JVC”) for the exploration and development of the Maling and Longhou Gold
                Properties located in Guangxi Province, China. Pursuant to the agreement,
                the Company must pay $800,000 to the Institute in stages over a period
                of
                30 months after the Institute transfers its mineral exploration rights
                to
                the JVC. The Company will have the right to earn a 75% interest in
                the JVC
                by spending $2,500,000 for exploration activities over a three year
                period. The term of the cooperation agreement was 30 years. In May
                2006
                the Company terminated the cooperative agreement with the
                Institute.




(c)
            On
                June 2, 2005, the Company entered into an Exploration License Transfer
                Agreement to acquire a 100% interest in two mining claims located
                in
                Mongolia. The Company is required to pay $9,500 on execution of the
                agreement, and an additional $9,500 upon the transfer of the exploration
                licenses. During the year ended March 31, 2007, the Company terminated
                the
                Agreement and recognized a recovery of $9,500, resulting from the
                reversal
                of the accrued acquisition cost.




(d)
            On
                March 15, 2005, the Company entered into a Letter of Intent with
                the
                Hanzhong Geological Brigade of the Bureau of Geology & Mineral
                Exploration of Shaanxi Province, China (“Brigade”) to form a Sino-Foreign
                cooperative joint venture company for the exploration and development
                of
                up to seven properties located in Hanzhong, Shaanxi Province. Pursuant
                to
                the Letter of Intent, the Company would contribute cash to the joint
                ventures and Brigade would contribute the Exploration Permit and
                their
                previous exploratory findings. In May 2006 the Company terminated
                the
                Letter of Intent with Brigade.




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







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





4




**ITEM
      3.****LEGAL
      PROCEEDINGS**





The
      Company is not aware of any legal proceedings, pending or threatened, which
      it
      is a party to.





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





None





**PART
      II**





**ITEM
      5.****MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER
      PURCHASES OF EQUITY SECURITIES**





The
      Company’s Common Stock is listed on the over-the-counter electronic bulletin
      board ("OTCBB") under the symbol "DRGO.OB". The following table sets forth
      the
      range of high and low bid prices for each quarter since April 1,
      2005.





**Year
                2007**
            
            **High**
            
            **Low**Quarter ended March 31, 2007
            
            $
            0.05
            
            $
            0.04Quarter ended December 31, 2006
            
            $
            0.07
            
            $
            0.04Quarter ended September 30, 2006
            
            $
            0.09
            
            $
            0.04Quarter ended June 30, 2006
            
            $
            0.12
            
            $
            0.07**Year
                2006**Quarter ended March 31, 2006
            
            $
            0.17
            
            $
            0.05Quarter ended December 31, 2005
            
            $
            0.12
            
            $
            0.05Quarter ended September 30, 2005
            
            $
            0.26
            
            $
            0.11Quarter ended June 30, 2005
            
            $
            0.67
            
            $
            0.20




The
      quotations reflect inter-dealer prices without retail mark-up, mark-down or
      commission and may not represent actual transactions. The quotations give effect
      to a seven-for-one stock split effective June 14, 2004.




At
      May 31,
      2007, the closing bid price of the common stock was $0.025. As of May 31, 2007,
      the Company estimates that there were in excess of 300 beneficial holders of
      its
      common stock. The Company did not re-purchase any of its shares of common stock
      during the last fiscal year.




On
      May 31,
      2007, the Company agreed to issue 3,207,840,000 shares of common stock pursuant
      to the Stock Transaction, pursuant to an exemption afforded under Section 4(2)
      of the Securities Act of 1933. No sales commissions were paid in connection
      with
      this transaction and the 14 purchasers were accredited investors that had access
      to all of the SEC filings of the Company. Only 450,053,276 shares were issued
      on
      May 31, 2007, and the balance will be issued if the reverse split is approved
      by
      the shareholders at the June 19, 2007 annual meeting.




In
      May 2006,
      the employment agreement that the Company entered into (Note 10) with the
      Chairman Non-Executive (the “Employee”) was terminated. Under the terms of the
      termination, the Company cancelled the stock options to acquire 3,000,000 shares
      of common stock that was issued to the Employee. The Company then issued
      5,000,000 shares of common stock to the Employee.




On
      May 5,
      2006, the Company cancelled 13,500,000 shares of common stock as part of the
      Agreement Termination with Dragon Minerals Holdings Inc. (Refer to Note
      5).




On
      May 5,
      2006, the Company issued 2,500,000 and 1,000,000 shares of common stock of
      the
      Company to the President and the Geological Director, respectively, as
      recognition of their efforts devoted to the Company.




On
      April
      18, 2006, the Company entered into a stock subscription agreement whereby the
      Company issued 700,000 shares of common stock at $0.05 per share for cash
      proceeds of $35,000.


5


**ITEM
      6.****MANAGEMENTS
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION**





***Twelve
      months ended March 31, 2007 compared to twelve months ended March 31,
      2006***





The
      Company had no revenues for either the twelve months ended March 31, 2007 or
      the
      twelve months ended March 31, 2006.





Expenses
      for the Company increased by $525,132 or 63% to $1,355,618 for the twelve months
      ended March 31, 2007 from $830,486 for the twelve months ended March 31, 2006.
      This increase consisted of increases in consulting of $715,221, an increase
      in
      accounting and auditing costs of $20,253, which were partially offset by
      decreases in legal and organizational costs of $8,506, foreign exchange costs
      of
      $2,670, general and administration expenses of $21,183, a reduction in
      impairment losses of $84,587, in rent of $14,277 and travel and promotion of
      $78,181.





As
      a result of the
      foregoing, the Company's net operating loss for the twelve months ended March
      31, 2007, increased to $1,355,618 or ($.03) per share from a loss of $830,486
      or
      ($.02) per share for the twelve months ended March 31, 2006.





***Liquidity
      and Capital Resources***





As
      of
      March 31, 2007, the Company had cash of $1,315 and negative working capital
      of
      $9,386.





Net
      cash
      used in operating activities decreased by $286,974 to $38,033 for twelve months
      ended March 31, 2007 from $325,007 for the twelve months ended March 31, 2006.
      Net cash used in operating activities for the 2007 period were comprised of
      a
      net loss of $1,355,618, and decreases in accounts payable and accrued
      liabilities and amounts due to related parties of $2,400 and $20,872,
      respectively. These amounts were partially offset by non-cash charges totaling
      $1,334,418 and decreases in accounts receivable and prepaid expenses of $2,610
      and $3,829, respectively.





Net
      cash
      used in investing activities decreased to $0 for the twelve months ended March
      31, 2007 from $81,925 for the twelve months ended March 31, 2006. For the 2007
      period the Company didn't purchase any minerals properties or equipment. This
      compares with mineral property acquisition costs of $81,338 and the purchase
      of
      equipment for $587 during the 2006 period.





Cash
      provided by financing activities totaled $35,000 for the twelve months ended
      March 31, 2007 and $400,000 for the twelve months ended March 31, 2006. All
      of
      the proceeds for each period were from the sale of common stock.





As
      a
      result of the Company executing termination agreements during the twelve months
      ended March 31, 20007, which effectively terminated all of the outstanding
      letters of intent and cooperative agreements, the Company's need for immediate
      cash has been reduced. However, administrative costs and expenses
      continue.





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


6


**ITEM
      7.****FINANCIAL
      STATEMENTS**





**REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**








The
      Board
      of Directors and Stockholders


Dragon
      Gold Resources, Inc.





We
      have
      audited the accompanying balance sheets of Dragon Gold Resources, Inc. (an
      exploration stage company) (the "Company"), as of March 31, 2007 and 2006 and
      the related statements of operations, shareholders' deficit and cash flows
      for
      the years then ended, and the period from inception (December 13, 2000) to
      March
      31, 2007. 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 Company's consolidated financial statements
      for the period December 13, 2000 through March 31, 2005 were audited by other
      auditors whose report, dated June 21, 2005, expressed an unqualified opinion
      on
      those statements, and included an explanatory paragraph describing the
      substantial doubt about the Company's ability to continue as a going concern.
      The financial statements for the period from inception (December 13, 2000)
      through March 31, 2005 reflect no revenue and a net loss of $576,497,
      respectively, of the related totals. The other auditors' report has been
      furnished to us, and our opinion, insofar as it relates to the amounts included
      for such prior period, is based solely on the report of such other
      auditors.





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
      consolidated financial statements are free of material misstatement. An audit
      includes examining, on a test basis, evidence supporting the amounts and
      disclosures in the consolidated financial statements. An audit also includes
      assessing the accounting principles used and significant estimates made by
      management, as well as evaluating the overall consolidated financial statement
      presentation. We believe that our audit provides a reasonable basis for our
      opinion.





In
      our
      opinion, based on our audit and the report of other auditors, the financial
      statements referred to above present fairly, in all material respects, the
      financial position of Dragon Gold Resources, Inc. as of March 31, 2007 and
      2006,
      and the results of its operations and its cash flows for the years then ended,
      and for the period from inception (December 13, 2000) to March 31, 2007, in
      conformity with accounting principles generally accepted in the United States
      of
      America.





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 revenue and has suffered recurring losses
      from operations and at March 31, 2007 is in a negative working capital position.
      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
      described in Note 1. The financial statements do not include any adjustments
      that might result from the outcome of this uncertainty.











Thomas
      Leger & Co. L.L.P.








May
      15,
      2007


Houston,
      Texas





7


Dragon
      Gold Resources, Inc.


(An
      Exploration Stage Company)


Balance
      Sheets


(Expressed
      in U.S. Dollars)








March
                31,2007
            
            2006AssetsCurrent
                assets:Cash
            
            $
            1,315
            
            $
            4,348Accounts
                receivable
            
            
            --
            
            
            2,610Prepaid
                expenses and deposits
            
            
            --
            
            
            3,829Total current assets
            
            
            1,315
            
            
            10,787Intangible
                assets
            
            
            --
            
            
            9,063Property
                and equipment
            
            
            1,179
            
            
            3,151Total
                assets
            
            $
            2,494
            
            $
            23,001Liabilities
                and Stockholders’ DeficitCurrent
                liabilities:Accounts
                payable
            
            $
            10,613
            
            $
            20,212Accrued
                liabilities
            
            
            --
            
            
            1,228Due
                to related parties (Note 6)
            
            
            88
            
            
            20,960Total current liabilities
            
            
            10,701
            
            
            42,400Stockholders’
                deficit:Common Stock, 500,000,000 common shares authorized with a par value
                of$0.001,
                49,946,724 and 54,221,724 common shares issued and outstanding
                at
              March 31, 2007 and 2006, respectively
            
            
            49,947
            
            
            54,222Additional paid-in capital
            
            
            2,704,447
            
            
            1,333,362Deficit accumulated during the exploration stage
            
            
            (2,762,601
            )
            
            (1,406,983
            )Total stockholders’ deficit
            
            
            (8,207
            )
            
            (19,399
            )Total
                liabilities and stockholders’ deficit
            
            $
            2,494
            
            $
            23,001





See
      accompanying notes to audited financial statements.


8


Dragon
      Gold Resources, Inc.


(An
      Exploration Stage Company)


Statements
      of Operations


(Expressed
      in U.S. Dollars)





Years
                Ended March 31,
            
            Accumulated
                From December 13, 2000 (Inception) to2007
            
            2006
            
            March
                31, 2007Revenue
            
            $
            --
            
            $
            --
            
            $
            --ExpensesAccounting
                and audit
            
            
            36,398
            
            
            16,145
            
            
            91,863Depreciation
                and amortization
            
            
            4,784
            
            
            5,722
            
            
            13,485Consulting
            
            
            1,295,633
            
            
            580,412
            
            
            2,013,661Foreign
                exchange
            
            
            (389
            )
            
            2,281
            
            
            4,065General
                and administrative
            
            
            1,867
            
            
            23,050
            
            
            48,405Legal
                and organizational
            
            
            8,574
            
            
            17,080
            
            
            79,091Impairment
                loss on intangible assets
            
            
            6,251
            
            
            -
            
            
            6,251(Recovery)
                impairment loss on mineral property acquisition costs
            
            
            (9,500
            )
            
            81,338
            
            
            272,641Rent
            
            
            12,000
            
            
            26,277
            
            
            67,121Travel
                and promotion
            
            
            --
            
            
            78,181
            
            
            167,018Total
                expenses
            
            
            1,355,618
            
            
            830,486
            
            
            2,763,601Gain
                on sale of assets
            
            
            --
            
            
            --
            
            
            1,000Net
                loss
            
            $
            (1,355,618
            )
            $
            (830,486
            )
            $
            (2,762,601
            )Net
                loss per share - basic and diluted
            
            $
            (0.03
            )
            $
            (0.02
            )Weighted
                average shares outstanding
            
            
            50,380,000
            
            
            54,260,000





See
      accompanying notes to audited financial statements.


9


Dragon
      Gold Resources, Inc.


(An
      Exploration Stage Company)


Statements
      of Cash Flows


(Expressed
      in U.S. Dollars)





For
                the Years Ended March 31,
            
            Accumulated
                From December 13, 2000 (Inception) to2007
            
            2006
            
            March
                31, 2007Operating
                activities:Net
                loss
            
            $
            (1,355,618
            )
            $
            (830,486
            )
            $
            (2,762,601
            )Adjustments
                to reconcile net loss to net cash used in
                operating activities:Depreciation
                and amortization
            
            
            4,784
            
            
            5,722
            
            
            13,485Deferred
                compensation
            
            
            --
            
            
            17,188
            
            
            --Expenses
                paid by related party
            
            
            64,500
            
            
            53,000
            
            
            117,500Impairment
                loss on intangible assets
            
            
            6,251
            
            
            --
            
            
            6,251(Recovery)
                impairment loss on mineral property acquisition costs
            
            
            (9,500
            )
            
            81,338
            
            
            272,641Shares
                issued to settle expenses
            
            
            --
            
            
            --
            
            
            5,070Shares
                issued for services
            
            
            1,268,383
            
            
            340,000
            
            
            1,627,133Shares issued for mineral property costs
            
            
            --
            
            
            --
            
            
            165,000Change
                in operating assets and liabilities:Accounts
                receivable
            
            
            2,610
            
            
            (2,610
            )
            
            --Deposits
                and prepaid expenses
            
            
            3,829
            
            
            3,977
            
            
            --Accounts
                payable and accrued liabilities
            
            
            (2,400
            )
            
            (12,943
            )
            
            19,040Amounts
                due to related parties
            
            
            (20,872
            )
            
            19,807
            
            
            (4,948
            )Net
                cash used in operating activities
            
            
            (38,033
            )
            
            (325,007
            )
            
            (541,429
            )Investing
                activities:Mineral
                property acquisition costs
            
            
            --
            
            
            (81,338
            )
            
            (282,141
            )Purchase
                of property and equipment
            
            
            --
            
            
            (587
            )
            
            (5,915
            )Purchase
                of intangible assets
            
            
            --
            
            
            --
            
            
            (15,000
            )Net
                cash used in investing activities
            
            
            --
            
            
            (81,925
            )
            
            (303,056
            )Financing
                activities:Proceeds
                from related party loan
            
            
            --
            
            
            --
            
            
            12,745Proceeds
                from issuance of common shares
            
            
            35,000
            
            
            400,000
            
            
            833,055Net
                cash provided by financing activities
            
            
            35,000
            
            
            400,000
            
            
            845,800Increase
                (decrease) in cash
            
            
            (3,033
            )
            
            (6,932
            )
            
            1,315Cash
                - beginning of year
            
            
            4,348
            
            
            11,280
            
            
            --Cash
                - end of year
            
            $
            1,315
            
            $
            4,348
            
            $
            1,315Supplemental
                disclosures:Interest paid
            
            $
            --
            
            $
            --
            
            $
            --Income tax paid
            
            $
            --
            
            $
            --
            
            $
            --Non-cash
                financing activities:Issuance
                of common stock for asset purchase
            
            $
            --
            
            $
            --
            
            $
            100Issuance
                of common stock for acquisition of subsidiary
            
            $
            --
            
            $
            --
            
            $
            165,000Issuance
                of common stock for settlement of related party loans
            
            $
            30,000
            
            $
            --
            
            $
            37,708





See
      accompanying notes to audited financial statements.


10


Dragon
      Gold Resources, Inc.


(An
      Exploration Stage Company)


Statements
      of Stockholders’ Equity (Deficit)


From
      December 13, 2000 (Inception) to March 31, 2007


(Expressed
      in U.S. Dollars)





DeficitAdditional
            
            
            
            
            
            AccumulatedPaid
                In
            
            Stock
            
            
            
            During
                theCapital
            
            Subscription
            
            Deferred
            
            DevelopmentShares
            
            Amount
            
            (Discount)
            
            Receivable
            
            Compensation
            
            Stage
            
            TotalBalances
                - December 13, 2000 (Inception)
            
            
            --
            
            $
            --
            
            $
            --
            
            $
            --
            
            $
            --
            
            $
            --
            
            $
            --Common
                stock issued for cash
            
            
            10,962,000
            
            
            10,962
            
            
            (9,396
            )
            
            --
            
            
            --
            
            
            --
            
            
            1,566Common
                stock issued for organizational expenses
            
            
            6,790,000
            
            
            6,790
            
            
            (5,820
            )
            
            --
            
            
            --
            
            
            --
            
            
            970Common
                stock issued for asset purchase
            
            
            700,000
            
            
            700
            
            
            (600
            )
            
            --
            
            
            --
            
            
            --
            
            
            100Net
                loss for the period
            
            
            --
            
            
            -
            
            
            --
            
            
            --
            
            
            --
            
            
            (3,437
            )
            
            (3,437
            )Balances
                - 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
            )
            
            --
            
            
            --
            
            
            --
            
            
            4,000Net
                loss for the year
            
            
            --
            
            
            -
            
            
            --
            
            
            --
            
            
            --
            
            
            (5,508
            )
            
            (5,508
            )Balances
                - March 31, 2002
            
            
            46,452,000
            
            
            46,452
            
            
            (39,816
            )
            
            --
            
            
            --
            
            
            (8,945
            )
            
            (2,309
            )Net
                loss for the year
            
            
            --
            
            
            -
            
            
            --
            
            
            --
            
            
            --
            
            
            (1,244
            )
            
            (1,244
            )Balances
                - March 31, 2003
            
            
            46,452,000
            
            
            46,452
            
            
            (39,816
            )
            
            --
            
            
            --
            
            
            (10,189
            )
            
            (3,553
            )Common
                stock issued for cash, netof
                offering costs of $8,476
            
            
            3,675,000
            
            
            3,675
            
            
            92,849
            
            
            --
            
            
            --
            
            
            --
            
            
            96,524Common
                stock issued for debt settlement
            
            
            269,794
            
            
            270
            
            
            7,439
            
            
            --
            
            
            --
            
            
            --
            
            
            7,709Net
                loss for the year
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            (17,693
            )
            
            (17,693
            )Balances
                - March 31, 2004
            
            
            50,396,794
            
            
            50,397
            
            
            60,472
            
            
            --
            
            
            --
            
            
            (27,882
            )
            
            82,987Cancellation
                of common stock by former director
            
            
            (16,400,000
            )
            
            (16,400
            )
            
            16,400
            
            
            --
            
            
            --
            
            
            --
            
            
            -Common
                stock issued for acquisition
              of
                subsidiary
            
            
            16,500,000
            
            
            16,500
            
            
            148,500
            
            
            --
            
            
            --
            
            
            --
            
            
            165,000Common
                stock issued for cash
            
            
            799,930
            
            
            800
            
            
            399,165
            
            
            (100,000
            )
            
            --
            
            
            --
            
            
            299,965Common
                stock issued for services
            
            
            25,000
            
            
            25
            
            
            18,725
            
            
            --
            
            
            17,188
            
            
            --
            
            
            1,562Net
                loss for the year
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            (548,615
            )
            
            (548,615
            )Balances
                - March 31, 2005
            
            
            51,321,724
            
            
            51,322
            
            
            643,262
            
            
            (100,000
            )
            
            17,188
            
            
            (576,497
            )
            
            899Cash
                received for stock subscription receivable
            
            
            --
            
            
            --
            
            
            --
            
            
            100,000
            
            
            --
            
            
            --
            
            
            100,000Common
                stock issued for cash
            
            
            1,900,000
            
            
            1,900
            
            
            298,100
            
            
            --
            
            
            --
            
            
            --
            
            
            300,000Common
                stock issued for services
            
            
            1,000,000
            
            
            1,000
            
            
            339,000
            
            
            --
            
            
            --
            
            
            --
            
            
            340,000Deferred
                compensation
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            (17,188
            )
            
            --
            
            
            17,188Expenses
                paid by related party
            
            
            --
            
            
            --
            
            
            53,000
            
            
            --
            
            
            --
            
            
            --
            
            
            53,000Net
                loss for the year
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            (830,486
            )
            
            (830,486
            )Balances
                - March 31, 2006
            
            
            54,221,724
            
            
            54,222
            
            
            1,333,362
            
            
            --
            
            
            --
            
            
            (1,406,983
            )
            
            (19,399
            )Common
                stock issued for services
            
            
            8,525,000
            
            
            8,525
            
            
            1,259,858
            
            
            --
            
            
            --
            
            
            --
            
            
            1,268,383Common
                stock issued for cash
            
            
            700,000
            
            
            700
            
            
            34,300
            
            
            --
            
            
            --
            
            
            --
            
            
            35,000Return
                and cancellation of shares
            
            
            (13,500,000
            )
            
            (13,500
            )
            
            12,427
            
            
            --
            
            
            --
            
            
            --
            
            
            (1,073
            )Expenses
                paid by third party
            
            
            --
            
            
            --
            
            
            64,500
            
            
            --
            
            
            --
            
            
            --
            
            
            64,500Net
                loss for the year
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            --
            
            
            (1,355,618
            )
            
            (1,355,618
            )Balances
                - March 31, 2007
            
            
            49,946,724
            
            $
            49,947
            
            $
            2,704,447
            
            $
            --
            
            $
            --
            
            $
            (2,762,601
            )
            $
            (8,207
            )





See
      accompanying notes to audited financial statements.


11





Dragon
      Gold Resources, Inc.


(An
      Exploration Stage Company)


Notes
      to
      the Financial Statements


(Expressed
      in U.S. Dollars)





1.  Exploration
      Stage Company




Dragon
      Gold Resources, Inc. (“Dragon Gold” or the “Company”) was incorporated in the
      State of Nevada, U.S.A. on December 13, 2000, under the name “Folix
      Technologies, Inc.” Effective June 14, 2004, the Company changed its name to
      Dragon Gold Resources, Inc. The Company's principal business was the development
      of a Linux based application server and thin client computing systems. During
      the year ended March 31, 2005, the Company entered the mineral resource
      exploration business through the acquisition of a 100% interest in Dragon
      Minerals Holdings Inc. (“DMHI”), a private British Virgin Island company. DMHI
      is involved in the mineral property acquisition and exploration in China. On
      May
      5, 2006, the Company and DMHI terminated their agreement dated July 14, 2004.
      Refer to Note 5.




These
      financial statements have been prepared on a going concern basis, which implies
      the Company will continue to realize its assets and discharge its liabilities
      in
      the normal course of business. The Company has never generated revenues since
      its inception and is unlikely to generate earnings in the immediate or
      foreseeable future. The continuation of the Company as a going concern is
      dependent upon the continued financial support from its shareholders, the
      ability of the Company to obtain necessary equity financing to continue
      operations and to determine the existence, discovery and successful exploitation
      of economically recoverable reserves in its resource properties, confirmation
      of
      the Company's interests in the underlying properties, and the attainment of
      profitable operations. As of March 31, 2007, the Company has accumulated losses
      of $2,762,601 since inception. These financial statements do not include any
      adjustments to the recoverability and classification of recorded asset amounts
      and classification of liabilities that might be necessary should the Company
      be
      unable to continue as a going concern. These factors raise substantial doubt
      regarding the Company's ability to continue as a going concern.





2.  Summary
      of Significant Accounting Policies




*(a)*
            *Basis
                of presentation*




These
      financial statements and related notes are presented in accordance with
      accounting principles generally accepted in the United States of America, and
      are expressed in US dollars. On May 5, 2006, the Company terminated its
      agreement with its 100% wholly owned subsidiary, Dragon Minerals Holdings Inc.
      (Refer to Note 5.) Comparative amounts, for the statements of operations and
      statements of cash flows for the year ended March 31, 2006 are shown on a
      consolidated basis.




*(b)*
            *Use
                of Estimates*




The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America 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 materially from those
      estimates.




*(c)*
            *Cash
                and Cash Equivalents*




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


12




*(d)*
            *Foreign
                Currency Translation*




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




*(e)*
            *Income
                Taxes*




The
      Company uses the liability method of accounting for income taxes. Under this
      method, deferred income taxes are recorded to reflect the tax consequences
      on
      future years of temporary differences between the tax basis of assets and
      liabilities and their financial amounts at year-end. The Company provides a
      valuation allowance to reduce deferred tax assets to their net realizable
      value.




*(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 potential dilutive 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 issued from the exercise of stock options or
      warrants. Diluted EPS excludes all potential dilutive shares if their effect
      is
      anti-dilutive.




*(g)*
            *Financial
                Instruments*




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




*(h)*
            *Concentrations
                of Credit Risk*




The
      Company maintains its cash in well known banks selected based upon management’s
      assessment of the banks’ financial stability. Balances periodically exceed the
      $100,000 federal depository insurance limit, however, the Company has not
      experienced any losses on deposits.




*(i)*
            *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, 2007 and 2006,
      the
      Company had no items that represent comprehensive loss and, therefore, has
      not
      included a schedule of comprehensive loss in the financial
      statements.


13




*(j)*
            *Mineral
                Property Costs*




The
      Company has been in the exploration stage since its acquisition of Dragon
      Minerals Holdings, Inc. on July 15, 2004, and has not yet realized any revenues
      from its planned operations. It is primarily engaged in the acquisition and
      exploration of mining properties. Mineral property exploration costs are
      expensed as incurred. Mineral property acquisition costs are initially
      capitalized when incurred using the guidance in EITF 04-02, “ *Whether
      Mineral Rights Are Tangible or Intangible Assets* ”.
      The
      Company assesses the carrying costs for impairment under SFAS 144, “ *Accounting
      for Impairment or Disposal of Long Lived Assets* ”
at
      each
      fiscal quarter end. When it has been determined that a mineral property can
      be
      economically developed as a result of establishing proven and probable reserves,
      the costs incurred to develop such property, are capitalized. Such costs will
      be
      amortized using the units-of-production method over the estimated life of the
      probable reserve. If mineral properties are subsequently abandoned or impaired,
      any capitalized costs will be charged to operations.




*(k)*
            *Website
                Development Costs*




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




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




*(l)*
            *Property
                and Equipment*




Property
      and equipment consists of computer hardware and is recorded at cost. The
      computer hardware is being amortized on a straight-line basis over its estimated
      useful life of three years. Expenditures for major renewals and betterments
      that
      extend the original estimated economic useful lives of the applicable assets
      are
      capitalized. Expenditures for normal repairs and maintenance are charged to
      expense as incurred. The cost and related accumulated depreciation of assets
      sold or otherwise disposed of are removed from the account, and any gain or
      loss
      is included in operations.




*(m)*
            *Long-Lived
                Assets*




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




*(n)*
            *Stock-Based
                Compensation*




Prior
      to
      April 1, 2006, the Company accounted for stock-based awards under the
      recognition and measurement provisions of Accounting Principles Board Opinion
      (“APB”) No. 25, “ *Accounting
      for Stock Issued to Employees* ”
using
      the intrinsic value method of accounting. No stock-based compensation cost
      was
      recognized in the consolidated statements of operations for the year ended
      March
      31, 2006 as all options granted had an exercise price equal to the market value
      of the underlying common stock on the date of grant. Effective April 1, 2006,
      the Company adopted the fair value recognition provisions of SFAS No. 123R
      “ *Share
      Based Payment* ”,
      using
      the modified prospective transition method. Under that transition method,
      compensation cost is recognized for all share-based payments granted prior
      to,
      but not yet fully vested as of April 1, 2006, based on the grant date fair
      value
      estimated in accordance with the original provisions of SFAS No. 123, and
      compensation cost for all share-based payments granted subsequent to April
      1,
      2006, based on the grant date fair value estimated in accordance with the
      provisions of SFAS 123R. Results for prior periods have not been restated.
      The
      Company had 3,000,000 outstanding and non-vested stock options at the time
      of
      adoption of SFAS No. 123R which were cancelled in full on May 18,
      2006.




14




The
      following table illustrates the effect on net loss and loss per share if the
      Company had applied the fair value recognition provisions of SFAS 123 to options
      granted in the year ended March 31, 2006. For purposes of this pro forma
      disclosure, the value of the options was estimated using a Black-Scholes
      option-pricing formula with the following assumptions: dividend yield of 0%;
      risk-free interest of 3.71%; expected volatility of 114%; and weighted average
      life of 3 years.





Year
                Ended
              March
                31, 2006Net
                loss - as reported
            
            $
            (830,486
            )Add:
                Stock-based compensation expense included in net loss - as
                reported
            
            
            --Deduct:
                Stock-based compensation expense determined under fair value
                method
            
            
            (156,319
            )Net
                loss - pro-forma
            
            $
            (986,805
            )





Basic
                and diluted net loss per share -as
                reported
            
            $
            (0.02
            )Basic
                and diluted net loss per share - pro-forma
            
            $
            (0.02
            )









*(o)*
            *Recent
                Accounting Pronouncements*




In
      February 2007, the Financial Accounting Standards Board (FASB) issued SFAS
      No.
      159, “ *The
      Fair Value Option for Financial Assets and Financial Liabilities - Including
      an
      Amendment of FASB Statement No. 115* ”.
      This
      statement permits entities to choose to measure many financial instruments
      and
      certain other items at fair value. Most of the provisions of SFAS No. 159 apply
      only to entities that elect the fair value option. However, the amendment to
      SFAS No. 115 “ *Accounting
      for Certain Investments in Debt and Equity Securities* ”
applies
      to all entities with available-for-sale and trading securities. SFAS No. 159
      is
      effective as of the beginning of an entity’s first fiscal year that begins after
      November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
      year that begins on or before November 15, 2007, provided the entity also elects
      to apply the provision of SFAS No. 157, “ *Fair
      Value Measurements* ”.
      The
      adoption of this statement is not expected to have a material effect on the
      Company's financial statements.




In
      September 2006, the SEC issued Staff Accounting Bulletin (“SAB”) No. 108,
“ *Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements* .”
SAB
      No. 108 addresses how the effects of prior year uncorrected misstatements should
      be considered when quantifying misstatements in current year financial
      statements. SAB No. 108 requires companies to quantify misstatements using
      a
      balance sheet and income statement approach and to evaluate whether either
      approach results in quantifying an error that is material in light of relevant
      quantitative and qualitative factors. SAB No. 108 is effective for fiscal years
      ending after November 15, 2006. The Company is currently evaluating the impact
      of adopting SAB No. 108 but does not expect that it will have a material effect
      on its financial statements.




In
      September 2006, the FASB issued SFAS No. 158, “ *Employers’
      Accounting for Defined Benefit Pension and Other Postretirement Plans - an
      amendment of FASB Statements No. 87, 88, 106, and 132(R)* ”.
      This
      statement requires employers to recognize the overfunded or underfunded status
      of a defined benefit postretirement plan (other than a multiemployer plan)
      as an
      asset or liability in its statement of financial position and to recognize
      changes in that funded status in the year in which the changes occur through
      comprehensive income of a business entity or changes in unrestricted net assets
      of a not-for-profit organization. This statement also requires an employer
      to
      measure the funded status of a plan as of the date of its year-end statement
      of
      financial position, with limited exceptions. The provisions of SFAS No. 158
      are
      effective for employers with publicly traded equity securities as of the end
      of
      the fiscal year ending after December 15, 2006. The adoption of this statement
      did not have a material effect on the Company's reported financial position
      or
      results of operations.




15




In
      September 2006, the FASB issued SFAS No. 157, “ *Fair
      Value Measurements* ”.
      The
      objective of SFAS No. 157 is to increase consistency and comparability in fair
      value measurements and to expand disclosures about fair value measurements.
      SFAS
      No. 157 defines fair value, establishes a framework for measuring fair value
      in
      generally accepted accounting principles, and expands disclosures about fair
      value measurements. SFAS No. 157 applies under other accounting pronouncements
      that require or permit fair value measurements and does not require any new
      fair
      value measurements. The provisions of SFAS No. 157 are effective for fair value
      measurements made in fiscal years beginning after November 15, 2007. The
      adoption of this statement is not expected to have a material effect on the
      Company's future reported financial position or results of
      operations.




In
      June
      2006, the FASB issued FASB Interpretation No. 48, “ *Accounting
      for Uncertainty in Income Taxes, an interpretation of FASB Statements No.
      109* ”.
      FIN 48
      clarifies the accounting for uncertainty in income taxes by prescribing a
      two-step method of first evaluating whether a tax position has met a more likely
      than not recognition threshold and second, measuring that tax position to
      determine the amount of benefit to be recognized in the financial statements.
      FIN 48 provides guidance on the presentation of such positions within a
      classified statement of financial position as well as on derecognition, interest
      and penalties, accounting in interim periods, disclosure, and transition. FIN
      48
      is effective for fiscal years beginning after December 15, 2006. The adoption
      of
      this statement is not expected to have a material effect on the Company's future
      reported financial position or results of operations.




In
      March
      2006, the FASB issued SFAS No. 156, " *Accounting
      for Servicing of Financial Assets, an amendment of FASB Statement No. 140,
      Accounting for Transfers and Servicing of Financial Assets and Extinguishments
      of Liabilities* ".
      This
      statement requires all separately recognized servicing assets and servicing
      liabilities be initially measured at fair value, if practicable, and permits
      for
      subsequent measurement using either fair value measurement with changes in
      fair
      value reflected in earnings or the amortization and impairment requirements
      of
      Statement No. 140. The subsequent measurement of separately recognized servicing
      assets and servicing liabilities at fair value eliminates the necessity for
      entities that manage the risks inherent in servicing assets and servicing
      liabilities with derivatives to qualify for hedge accounting treatment and
      eliminates the characterization of declines in fair value as impairments or
      direct write-downs. SFAS No. 156 is effective for an entity's first fiscal
      year
      beginning after September 15, 2006. The adoption of this statement is not
      expected to have a material effect on the Company's future reported financial
      position or results of operations.




In
      February 2006, the FASB issued SFAS No. 155, " *Accounting
      for Certain Hybrid Financial Instruments-an amendment of FASB Statements No.
      133
      and 140* ",
      to
      simplify and make more consistent the accounting for certain financial
      instruments. SFAS No. 155 amends SFAS No. 133, " *Accounting
      for Derivative Instruments and Hedging Activities* ",
      to
      permit fair value re-measurement for any hybrid financial instrument with an
      embedded derivative that otherwise would require bifurcation, provided that
      the
      whole instrument is accounted for on a fair value basis. SFAS No. 155 amends
      SFAS No. 140, " *Accounting
      for the Impairment or Disposal of Long-Lived Assets* ",
      to
      allow a qualifying special-purpose entity to hold a derivative financial
      instrument that pertains to a beneficial interest other than another derivative
      financial instrument. SFAS No. 155 applies to all financial instruments acquired
      or issued after the beginning of an entity's first fiscal year that begins
      after
      September 15, 2006, with earlier application allowed. The adoption of this
      statement is not expected to have a material effect on the Company's future
      reported financial position or results of operations.




*(p)*
            *Reclassifications*




Certain
      reclassifications have been made to the prior year’s financial statements to
      conform to the current year’s presentation.




16





3.
            Intangible
                Assets consist of the following:





Cost
            
            Accumulated
              Amortization
            
            March
                31,2007
              Net
                Carrying
              Value
            
            March
                31, 2006
              Net
                Carrying
              ValueWebsite
                development costs
            
            $
            15,000
            
            $
            (15,000
            )
            $
            --
            
            $
            9,063







4.
            Property
                and Equipment consist of the
                following:





Cost
            
            Accumulated
              Depreciation
            
            March
                31, 2007
              Net
                Carrying
              Value
            
            March
                31, 2006
              Net
                Carrying
              ValueComputer
                equipment
            
            $
            5,915
            
            $
            (4,736
            )
            $
            1,179
            
            $
            3,151







5.  Acquisition
      and Termination of Business




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




On
      May 5,
      2006, the Company and its wholly owned subsidiary, Dragon Minerals Holdings
      Inc.
      (“DMHI”) terminated their agreement dated July 14, 2004, whereby the Company
      acquired all the issued and outstanding shares of DMHI for 16,500,000 shares
      of
      the Company’s common stock. Pursuant to the Termination Agreement, the Company
      returned to the Shareholders their shares in DMHI and the Shareholders returned
      13,500,000 shares of the Company’s common stock. A director of the Company and
      the director’s spouse retained 3,000,000 shares of the Company’s common stock.
      The director was issued an additional 1,000,000 shares for services performed
      (Refer to Note 4(d)). As a result of the termination, the Letter of Intents
      entered by Dragon Minerals Inc., DMHI’s wholly-owned subsidiary, with Northwest
      Geology & Exploration Bureau for Nonferrous Metals Party and Bureau of
      Geology & Mineral Exploration & Development of Shaanxi Province were
      returned to the shareholders of DMHI (Refer to Notes 7 (e) and (f),
      respectively). During the years ended March 31, 2007 and 2006, DMHI incurred
      expenses of $3,307 and $3,500, respectively.




17




6.  Related
      Party Transactions




(a)
            The
                amount due to related parties at March 31, 2007 of $88 represents
                expenses
                of $159 paid on behalf of the Company by a former Director, $402
                paid on
                behalf of the Company by the President and offset by $473 advanced
                to a
                current director. These amounts are non-interest bearing, unsecured
                and
                have no specific terms of repayment.




(b)
            During
                the fiscal year ended March 31, 2007, the Company incurred $804,633
                (2006
                - $402,500) for consulting services provided by the Chairman of the
                Board
                of Directors of the Company, which includes $5,000 as part of an
                employment agreement and a modified bonus for prior services of 5,000,000
                shares of restricted common stock with a value of $829,633 that replaced
                3,000,000 stock options. Included in prior services was $25,000 which
                was
                previously recorded as a liability.




(c)
            During
                the fiscal year ended March 31, 2007, the Company incurred $352,500
                (2006
                - $120,000) for consulting services provided by the President of
                the
                Company, which included a one time bonus of 2,500,000 restricted
                common
                shares with a fair value of $300,000 for prior services and twelve
                months’
                services donated by the President.




(d)
            During
                the fiscal year ended March 31, 2007, the Company incurred $120,000
                (2006
                - $39,650) for consulting services provided by a Director of the
                Company,
                which includes a one time bonus of 1,000,000 shares of restricted
                common
                stock with a fair value of
                $120,000.




(e)
            During
                the fiscal year ended March 31, 2007, the Company recognized $52,500
                for
                donated services and $12,000 for donated rent provided by the President
                of
                the Company.







7.  Mineral
      Properties




(g)
            On
                September 21, 2005, the Company entered into a cooperative agreement
                with
                Yinchuan Gaoxin District Shijin Mining Ltd. (“Yinchuan Mining”) to form a
                Sino-Foreign cooperative joint venture company (“JV Company”) for the
                exploration and development of the Xijishui Gold Property and its
                surrounding area located in Jingyuan County, Gansu Province, China.
                Pursuant to the agreement, the Company must pay $150,000 to Yinchuan
                Mining over a period of 12 months after Yinchuan Mining transfers
                its
                mineral exploration rights to the JV Company. The Company will have
                the
                right to earn an 80% interest in the JV Company by spending $1,200,000
                for
                exploration activities over a two year period. The term of the cooperation
                agreement was 30 years. In May 2006, the Company terminated the
                cooperative agreement with Yinchuan
                Mining.




(h)
            On
                September 10, 2005, the Company entered into a cooperative agreement
                with
                the Guilin Research Institute of Geology and Mineral Resources
                (“Institute”) to form a Sino-Foreign cooperative joint venture company
                (“JVC”) for the exploration and development of the Maling and Longhou Gold
                Properties located in Guangxi Province, China. Pursuant to the agreement,
                the Company must pay $800,000 to the Institute in stages over a period
                of
                30 months after the Institute transfers its mineral exploration rights
                to
                the JVC. The Company will have the right to earn a 75% interest in
                the JVC
                by spending $2,500,000 for exploration activities over a three year
                period. The term of the cooperation agreement was 30 years. In May
                2006
                the Company terminated the cooperative agreement with
                Institute.




(i)
            On
                June 2, 2005, the Company entered into an Exploration License Transfer
                Agreement to acquire a 100% interest in two mining claims located
                in
                Mongolia. The Company is required to pay $9,500 on execution of the
                agreement, and an additional $9,500 upon the transfer of the exploration
                licenses. During the year ended March 31, 2007, the Company terminated
                the
                Agreement and recognized a recovery of $9,500, resulting from the
                reversal
                of the accrued acquisition cost.




(j)
            On
                March 15, 2005, the Company entered into a Letter of Intent with
                the
                Hanzhong Geological Brigade of the Bureau of Geology & Mineral
                Exploration of Shaanxi Province, China (“Brigade”) to form a Sino-Foreign
                cooperative joint venture company for the exploration and development
                of
                up to seven properties located in Hanzhong, Shaanxi Province. Pursuant
                to
                the Letter of Intent, the Company would contribute cash to the joint
                ventures and Brigade would contribute the Exploration Permit and
                their
                previous exploratory findings. In May 2006 the Company terminated
                the
                Letter of Intent with Brigade.




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







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







18




8.  Common
      Stock




(a)
            In
                May 2006, the employment agreement that the Company entered into
                (Note 10)
                with the Chairman Non-Executive (the “Employee”) was terminated. Under the
                terms of the termination, the Company cancelled the stock options
                to
                acquire 3,000,000 shares of common stock that was issued to the Employee.
                The Company then issued 5,000,000 shares of common stock to the Employee.
                The Employee will remain as a director of the
                Company.




(b)
            On
                May 5, 2006, the Company cancelled 13,500,000 shares of common stock
                as
                part of the Agreement Termination with Dragon Minerals Holdings Inc.
                (Refer to Note 5).




(c)
            On
                May 5, 2006, the Company issued 2,500,000 and 1,000,000 shares of
                common
                stock of the Company to the President and the Geological Director,
                respectively, as recognition of their efforts devoted to the
                Company.




(d)
            On
                April 18, 2006, the Company entered into a stock subscription agreement
                whereby the Company issued 700,000 shares of common stock at $0.05
                per
                share for cash proceeds of
                $35,000.


19


9.  Stock
      Options




During
      the year ended March 31, 2006, the Company granted stock options to acquire
      up
      to 3,000,000 shares of common stock exercisable at $0.366 per share on or before
      May 12, 2010. One-third of the options vest each year, for the first three
      years, on the anniversary date of the agreement. On May 5, 2006, the 3,000,000
      stock options were cancelled as the employment agreement. (Refer to Note 8.)
      was
      terminated. The Company recorded $829,633 as compensation expense in connection
      with the cancellation and issuance of 5,000,000 shares of common stock in
      accordance with SFAS 123R.




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




For
                the Year Ended
              March
                31, 2007Number
                of Options
            
            Weighted
                Average Exercise PriceBalance,
                April 1, 2006
            
            
            3,000,000
            
            $
            0.366Granted
            
            
            --
            
            
            --Cancelled
                / Forfeited
            
            
            (3,000,000
            )
            
            0.366Exercised
            
            
            --
            
            
            --Balance,
                March 31, 2007
            
            
            --
            
            $
            --





As
      of
      March 31, 2007, there were no stock options outstanding.





10.  Termination
      of Employment Agreement




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





11.  Income
      Tax




The
      Company has incurred losses since its inception and, therefore, has not been
      subject to federal income taxes. The Company has net operating loss carry
      forwards of approximately $986,000, which expire beginning in 2020. Under the
      provisions of Section 382 of the Internal Revenue Code, any significant
      ownership change in the Company could severely limit the Company’s ability to
      utilize its NOL carryforward to reduce future taxable income and related tax
      liabilities. Additionally, because United States tax laws limit the time during
      which NOL carryforwards may be applied against future taxable income, the
      Company may be unable to take full advantage of its NOL for federal income
      tax
      purposes should the Company generate taxable income.


20




The
      composition of deferred tax assets and liabilities and the related tax effects
      at March 31, 2007 and 2006 are as follows:





March
                31,2007
            
            2006Deferred
                tax assets:Net operating losses
            
            $
            335,272
            
            $
            300,299Valuation allowance
            
            
            (335,272
            )
            
            (300,299
            )Total
                deferred tax assets
            
            
            --
            
            
            --Deferred
                tax liability
            
            
            --
            
            
            --Net
                deferred tax asset (liability)
            
            $
            --
            
            $
            --









The
      difference between the income tax benefit in the accompanying statement of
      operations and the amount that would result if the U.S. Federal statutory rate
      of 34% was applied to pre-tax loss for the years ended March 31, 2007 and 2006
      is as follows:







March
                31, 2007
            
            March
                31, 2006Amount
            
            %
            
            Amount
            
            %Provision
                (benefit) for income tax at federal statutory rate:
            
            $
            (460,910
            )
            
            (34.0
            )
            
            (282,365
            )
            
            (34.0
            )Non-deductible
                compensation expense
            
            
            425,938
            
            
            31.0
            
            
            121,444
            
            
            20.0Increase
                (decrease) in valuation allowance
            
            
            34,972
            
            
            3.0
            
            
            160,921
            
            
            14.0$
            --
            
            
            --
            
            $
            --
            
            
            --







12.  Subsequent
      Events





On
      May
      31, 2007 (the “Closing Date”), Dragon Gold Resources, Inc., a Nevada corporation
      (the "Company" or “Dragon Gold”) entered into and closed an Agreement and Plan
      of Reorganization (the “Exchange Agreement”) with Secure Voice Communications,
      Inc., a Texas corporation (“Secure Voice”) and the stockholders of Secure Voice
      (the “Stock Transaction”). As a result of the Stock Transaction, Secure Voice
      became a wholly-owned subsidiary of the Company when the Company agreed to
      issue
      an aggregate of 3,207,840,000 shares of its common stock to the former
      shareholders of Secure Voice (in exchange for all the outstanding capital stock
      of Secure Voice), resulting in the former shareholders of Secure Voice owning
      approximately 98.8% of the issued and outstanding Dragon Gold common stock.
      As
      the articles of incorporation only authorized the issuance of 500,000,000 shares
      of common stock, the Company issued 450,053,276 shares of common stock and
      is
      obligated to issue an additional 2,757,786,724 shares of common stock. At the
      annual shareholders meeting scheduled for June 19, 2007, the shareholders are
      being asked to approve an 80-for-1 reverse split that will not reduce the number
      of authorized shares of common stock. If such reverse split is approved, the
      Company will issue the balance of these shares which will equate to 34,472,334
      shares on a post-split basis.


21


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





On
      April
      8, 2005, the Company terminated the engagement of Manning Elliot, Chartered
      Accountants from its position as the Company's independent
      accountants.





The
      audit
      report of Manning Elliot, on June 2, 2004, for the year ended March 31, 2004
      contained no adverse opinion, disclaimer of opinion or modification of the
      opinion except for concerns expressed about the Company's ability to continue
      as
      a going concern.





The
      Board
      of Directors participated in and approved the decision to change independent
      accountants.





In
      connection with its audit for the fiscal year ended March 31, 2004 and the
      interim period until the date of dismissal, there have been no disagreements
      with Manning Elliot, Chartered Accountants on any matter of accounting principle
      or practice, financial statement disclosure, or auditing scope or procedure,
      which disagreement if not resolved to the satisfaction of Manning Elliot,
      Chartered Accountants would have caused them to make reference thereto in their
      report on the financial statements nor were any reportable events (as defined
      in
      Regulation S-K Item 304(a)(1)(v) .





The
      Company requested that Manning Elliot, Chartered Accountants furnish it with
      a
      letter addressed to the SEC stating whether or not it agrees with the above
      statements. A copy of such letter was filed as an Exhibit to the Form 8-K filed
      on April 13, 2005.




On
      April
      8, 2005, the Company engaged Ham, Langston, & Brezina, L.L.P. to audit its
      financial statements for the year ended March 31, 2005. Prior to such
      engagement, the Company had not consulted with Ham, Langston, & Brezina,
      L.L.P regarding (i) the application of accounting principles to a specified
      transaction, either completed or proposed or the type of audit opinion that
      might be rendered on the Company’s financial statements, and no written report
      or oral advice was provided to the Company by concluding there was an important
      factor to be considered by the Registrant in reaching a decision as to an
      accounting, auditing or financial reporting issue; or (ii) any matter that
      was
      either the subject of a disagreement, as that term is defined in item 304
      (a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of
      Regulation S-K, or a reportable event, as that term is defined in Item 304
      (a)(1)(v) of Regulation S-K.





On
      April
      18, 2006 Ham, Langston Brezina LLP resigned as the Company's independent
      certifying accountants.





On
      May
      24, 2006, the Board of Directors of the Company engaged Thomas Leger & Co.
      LLP to be its independent certifying accountants for the year ended March 31,
      2006.





During
      the two most recent fiscal years and through March 31, 2006, the Company did
      not
      consult with Thomas Leger & Co. LLP, regarding (i) the application of
      accounting principles to a specified transaction, either completed or proposed
      or the type of audit opinion that might be rendered on the Company’s financial
      statements, and no written report or oral advise was provided to the Company
      by
      concluding there was an important factor to be considered by the Registrant
      in
      reaching a decision as to an accounting, auditing or financial reporting issue;
      or (ii) any matter that was either the subject of a disagreement, as that term
      is defined in item 304 (a)(1)(iv) of Regulation S-K and the related instructions
      to Item 304 of Regulation S-K, or a reportable event, as that term is defined
      in
      Item 304 (a)(1)(v) of Regulation S-K.


22


**ITEM
      8A.****MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
      REPORTING**





In
      connection
      with the annual review for the year ended March 31, 2007, our independent
      registered public accounting firm informed us that we have significant
      deficiencies constituting material weakness as defined by the standards of
      the
      Public Company Accounting Oversight Board. The material weaknesses were in
      our
      internal controls over accounting for non-routine transactions and preparation
      of certain financial statement disclosures in accordance with U.S. G.A.A.P.




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




(b)
      Changes in
      internal control over financial reporting. We have not experienced any changes
      in our internal control over financial reporting during our most recent fiscal
      year that materially affected, or were reasonably likely to materially affect,
      our internal control over financial reporting. However, the Company has taken
      the decision of hiring an external accounting firm to review the accounting
      of
      non-routine transactions in order to address the deficiencies found by our
      independent registered public accounting firm.




23


**ITEM
      8B.****OTHER INFORMATION**





**CHANGES
      IN CONTROL OF REGISTRANT.**





On
      May
      31, 2007, the Company entered into and closed on the Exchange Agreement with
      Secure Voice and the stockholders of Secure Voice (the “Stock Transaction”). As
      a result of the Stock Transaction, Secure Voice became a wholly-owned subsidiary
      of Dragon Gold.





As
      a
      result of the closing of the Stock Transaction, we agreed to issue an aggregate
      of 3,207,840,000 shares of our common stock to the former shareholders of Secure
      Voice (in exchange for all the outstanding capital stock of Secure Voice),
      resulting in the former shareholders of Secure Voice owning approximately 98.8%
      of the issued and outstanding Dragon Gold common stock. Additionally, J. Leonard
      Ivins was appointed as a director and was also appointed to serve as chief
      executive officer and Carl A. Chase was appointed to serve as chief financial
      officer.





**OFFICERS
      AND DIRECTORS**





The
      Company's executive officers and directors are as follows:





**Name**
            **Age**
            **Position**
            **Position
                Held Since**J.
                Leonard Ivins
            70
            Chief
                Executive Officer and Director
            May
                2007Carl
                A. Chase
            57
            Chief
                Financial Officer
            May
                2007Hank
                Vanderkam
            63
            Director
            May
                2007





*J.
      Leonard Ivins* - Mr.
      Ivins has served as Chief Executive Officer and a director since May 2007.
      From
      November 2000 until September 2006, Mr. Ivins served as a director to of
      eLinear, Inc., an integrated technology solutions provider of security, IP
      Telephony and network and storage solutions infrastructure. Mr. Ivins was also
      a
      member of the audit and compensation committees of eLinear. In September 2006,
      eLinear filed for protection under Chapter 7 of the Bankruptcy
      Code. Since
      1995, he has been a private investor. Previously, Mr. Ivins was a founder and
      co-owner of a privately held company that was an FDIC and RTC contractor. From
      1979 to 1981, Mr. Ivins was a turnaround and workout consultant to small,
      publicly held oil and gas companies. From 1970 to 1975, Mr. Ivins was president
      of The Woodlands Development Corporation and a director of Mitchell Energy
      and
      Development Corp.




*Carl
      A. Chase* **** -
      Mr.
      Chase has served as Chief Financial Officer since May 2007. Mr. Chase also
      serves as Chief Financial Officer and a director of Unicorp, Inc., an
      independent oil and gas company since August 2004. From August 2000 to May
      2006,
      Mr. Chase served as a consultant and senior vice president to Rockport
      Healthcare Group, Inc., a preferred provider organization for work-related
      injuries and illnesses. From April 2003 until September 2006, Mr. Chase served
      as a director of eLinear, Inc., an integrated technology solutions provider
      of
      security, IP Telephony and network and storage solutions infrastructure and
      from
      December 2005 until September 2006, Mr. Chase served as chairman. In September
      2006, eLinear filed for protection under Chapter 7 of the Bankruptcy
      Code. From
      August 1999 to May 2000, Mr. Chase was chief financial officer of
      ClearWorks.net, Inc. From December 1992 to August 1999 Mr. Chase served as
      chief
      financial officer of Bannon Energy Incorporated, a private independent oil
      and
      gas company where his primary responsibilities included acquisitions, financing
      and accounting and administration. Mr. Chase is a graduate of the University
      of
      Oklahoma in 1975 with a Bachelor of Accountancy degree.




*Hank
      Vanderkam* - Mr.
      Vanderkam served as the Company’s sole officer and director since May 2007. Mr.
      Vanderkam has practiced law for thirty-eight years specializing in securities
      law. He is also a certified public accountant and a former partner with Deloitte
      & Touche.




Mr.
      Johannes Peterson resigned his positions as Chief Executive Officer, Chief
      Financial Officer and Director effective May 31, 2007.





24




**BOARD
      COMPOSITION**




The
      Company's
      board of directors currently consists of two (2) members. Each of its directors
      is elected annually at its annual meeting. There are no family relationships
      between any of the Company's officers and directors. The board of directors
      has
      not established any committees but plans to establish an audit committee,
      compensation committee, nominating and governance committees in the near future.
      Mr. Chase will be the audit committee financial expert serving on its board
      of
      directors, if elected at the next shareholders’ meeting on June 19,
      2007.





**DIRECTOR
      AND EXECUTIVE COMPENSATION**




Directors
      who
      are also employees do not receive any additional compensation for serving as
      a
      director. No director received any fee for his services during the last fiscal
      year.





**OPTION
      GRANTS, LONG-TERM INCENTIVE PLANS AND EMPLOYMENT
      AGREEMENTS**




The
      Company
      currently does not have any stock options outstanding pursuant to any stock
      option plan or long-term incentive plans.





On
      May 10,
      2007, the Company and Mr. Ivins entered into an employment agreement where
      it
      agreed to employ Mr. Ivins as its Chief Executive Officer, commencing on May
      10,
      2007 and terminating on May 9, 2010 .
      Under
      his employment agreement, Mr.
      Ivins
      has the right to terminate his employment agreement at any time upon fourteen
      days written notice and the Company may terminate his employment agreement
      immediately upon fourteen days written notice . The
      employment agreement entitles Mr. Ivins to a monthly base salary of $5,000
      and a
      stock bonus of 1,600,000 post-split shares of Company common stock upon
      execution of his employment agreement.




On
      May 10,
      2007, the Company and Mr. Chase entered into an employment agreement where
      it
      agreed to employ Mr. Chase as its Chief Financial Officer, commencing on May
      10,
      2007 and terminating on May 9, 2010 .
      Under
      his employment agreement, Mr.
      Chase
      has the right to terminate his employment agreement at any time upon fourteen
      days written notice and the Company may terminate his employment agreement
      immediately upon fourteen days written notice . The
      employment agreement entitles Mr. Chase to a monthly base salary of $5,000
      and a
      stock bonus of 1,600,000 post-split shares upon execution of his employment
      agreement





**PRINCIPAL
      STOCKHOLDERS**




The
      following
      table sets forth, as of June 1, 2007, **** the
      number and percentage of outstanding shares of Company common stock owned by:
      (a) each person who is known by the Company to be the beneficial owner of more
      than 5% of its outstanding shares of common stock; (b) each of the Company’s
      directors; (c) the named executive officers as defined in Item 402 of Regulation
      S-B; and (d) all current directors and executive officers, as a group. As of
      June 1, 2007, there were 500,000,000 shares of common stock issued and
      outstanding.


Beneficial
      ownership has been determined in accordance with Rule 13d-3 under the Exchange
      Act. Under this rule, certain shares may be deemed to be beneficially owned
      by
      more than one person (if, for example, persons share the power to vote or the
      power to dispose of the shares). In addition, shares are deemed to be
      beneficially owned by a person if the person has the right to acquire shares
      (for example, upon exercise of an option or warrant) within 60 days of the
      date
      as of which the information is provided. In computing the percentage ownership
      of any person, the amount of shares is deemed to include the amount of shares
      beneficially owned by such person by reason of such acquisition rights. For
      purposes of beneficial ownership calculations herein, it is assumed that the
      1
      for 80 reverse stock split will be effected within 60 days from June 1, 2007.
      As
      a result, the percentage of outstanding shares of any person as shown in the
      following table does not necessarily reflect the person’s actual voting power at
      any particular date.


25





To
      the
      Company’s knowledge, except as indicated in the footnotes to this table and
      pursuant to applicable community property laws, the persons named in the table
      have sole voting and investment power with respect to all shares of common
      stock
      shown as beneficially owned by them.





**Name
                and Address of Beneficial Owner****(1)**
            
            **Number
                of Shares**
              **Owned**
            
            **Percentage
                of**
              **Class**
            
            **Percentage
                of**
              **Class****(2)**Beneficial
                Owners of more than 5%:Silver Star Holdings(3)
            
            
            247,956,930
            
            
            49.6
            %
            
            54.3
            %Trevor D. Ling(4)
            
            
            44,850,439
            
            
            9.0
            %
            
            9.8
            %Jonathan Camarillo Trust(5)
            
            
            39,956,847
            
            
            8.0
            %
            
            8.7
            %Danny Chan(6)
            
            
            31,426,734
            
            
            6.3
            %
            
            6.9
            %Officers
                and Directors:J. Leonard Ivins
            
            
            17,958,134
            
            
            3.6
            %
            
            3.9
            %Carl A. Chase
            
            
            17,958,134
            
            
            3.6
            %
            
            3.9
            %Hank Vanderkam
            
            
            --
            
            
            0.0
            %
            
            0.0
            %All directors and executive officers asa
                group (3 persons)
            
            
            35,916,268
            
            
            7.2
            %
            
            7.8
            %


_________





(1)
            Unless
                otherwise indicated, the mailing address of the beneficial owner
                is c/o
                Dragon Gold Resources, Inc., 5075 Westheimer, Suite 975, Houston,
                Texas
                77056.


(2)
            This
                column reflects the percentage ownership giving effect to the issuance
                of
                the 2,757,786,724 additional shares of common stock required to be
                issued
                pursuant to the Reorganization that will be issued, on a post-split
                basis,
                assuming that Proposal 2 is adopted by the shareholders pursuant
                to its
                proxy statement.


(3)
            The
                business address of Silver Star Holdings is PO Box 27949, Houston,
                Texas
                77227-7949.


(4)
            The
                business address of Mr. Ling is 5050 Westheimer, Houston, Texas
                77056.


(5)
            The
                business address of Jonathan Camarillo Trust is 5023 Polk Street,
                Houston,
                Texas 77023.


(6)
            The
                business address of Mr. Chan is 255 G Street, Suite 366, San Diego,
                California 92101.





**DESCRIPTION
      OF SECURITIES**





*General*





The
      Company is authorized to issue 500,000,000 shares of common stock, $.001 par
      value.





*Common
      stock*





The
      authorized capital stock of the Company currently consists of 500,000,000 shares
      of common stock, par value $.001 per share, of which prior to the Exchange
      there
      are 49,246,724 issued and outstanding shares of common stock. After giving
      effect to the Exchange, there are 500,000,000 issued and outstanding shares
      of
      common stock. All of the issued and outstanding shares of common stock of Secure
      Voice will be held by the Company as a result of the Exchange. The following
      statements relating to the capital stock set forth the material terms of these
      securities; however, reference is made to the more detailed provisions of,
      and
      these statements are qualified in their entirety by reference to, the
      Certificate of Incorporation and Bylaws of the Company copies of which are
      filed
      as exhibits to its SEC reports.





Holders
      of shares of the common stock of the Company are entitled to one vote for each
      share on all matters to be voted on by the stockholders. Holders of common
      stock
      do not have cumulative voting rights. Holders of common stock are entitled
      to
      share ratably in dividends, if any as may be declared from time to time by
      the
      Board in its discretion from funds legally available therefore. In the event
      of
      any liquidation, dissolution or winding up, the holders of common stock are
      entitled to a pro-rata share of all assets remaining after payment in full
      of
      all liabilities an preferential payments, if any, to holders of preferred stock.
      All of the outstanding shares of common stock are fully paid and
      non-assessable.





26





Holders
      of common
      stock have no preemptive rights to purchase our common stock. There are no
      conversion or redemption rights or sinking fund provisions with respect to
      our
      common stock.





Dividends,
      if any, will be contingent upon our revenues and earnings, if any, capital
      requirements and financial conditions. The payment of dividends, if any, will
      be
      within the discretion of our Board. We presently intend to retain all earnings,
      if any, for use in our business operations and accordingly, our Board does
      not
      anticipate declaring any cash dividends for the foreseeable future. We have
      not
      paid any cash dividends on our common stock.





*Transfer
      agent*





The
      Company’s transfer agent is Holliday Stock Transfer, Inc. whose address is 2939
      North 67 th Place,
      Suite C, Scottsdale, AZ 85251.





*Disclosure
      Of Commission Position On Indemnification For Securities Act
      Liabilities*





Section
      78.7502 of the Nevada Revised Statutes contains provisions for indemnification
      of the officers and directors of the Company. Nevada law provides for
      indemnification (which may eliminate any personal liability of a director to
      the
      Company or its shareholders for monetary damages for gross negligence or lack
      of
      care in carrying out the director's fiduciary duties) if a director or officer
      acts in good faith in a manner reasonably believed to be in, or not opposed
      to,
      the best interests of the Company. A director or officer may be indemnified
      as
      to any matter in which he successfully defends himself.





The
      officers and directors of the Company are accountable to the shareholders of
      the
      Company as fiduciaries, which means such officers and directors are required
      to
      exercise good faith and integrity in handling the Company's
      affairs.





A
      shareholder may be able to institute legal action on behalf of himself and
      all
      other similarly situated shareholders to recover damages where the Company
      has
      failed or refused to observe the law. Shareholders may, subject to applicable
      rules of civil procedure, be able to bring a class action or derivative suit
      to
      enforce their rights, including rights under certain federal and state
      securities laws and regulations. Shareholders who have suffered losses in
      connection with the purchase or sale of their interest in the Company due to
      a
      breach of a fiduciary duty by an officer or director of the Company in
      connection with such sale or purchase including, but not limited to, the
      misapplication by any such officer or director of the proceeds from the sale
      of
      any securities, may be able to recover such losses from the
      Company.





Insofar
      as indemnification for liabilities arising under the Securities Act may be
      permitted to directors, officers and controlling persons of the Company pursuant
      to the foregoing provisions, or otherwise, the Company has been advised that
      in
      the opinion of the Commission such indemnification is against public policy
      as
      expressed in the Securities Act and is, therefore, unenforceable. In the event
      that a claim for indemnification against such liabilities (other than the
      payment by the Company of expenses incurred or paid by a director, officer
      or
      controlling person of the Company in the successful defense or any action,
      suit
      or proceeding) is asserted by such director, officer or controlling person
      in
      connection with the securities being registered, the Company will, unless in
      the
      opinion of its counsel the matter has been settled by controlling precedent,
      submit to a court of appropriate jurisdiction the question whether such
      indemnification by it is against public policy as expressed in the Securities
      Act and will be governed by the final adjudication of such issue.





The
      Company has no agreements with any of its directors or executive officers
      providing for indemnification of any such persons with respect to liability
      arising out of their capacity or status as officers and directors.





At
      present, there is no pending litigation or proceeding involving a director
      or
      executive officers of the Company as to which indemnification is being
      sought.





27




*Shares
      Eligible for Future Sale*





Of
      the
      500,000,000 shares of common stock outstanding, a total of 450,053,276 shares
      were issued in the Stock Transaction with an additional 34,472,334 post-split
      shares to be issued if the shareholders approve the 80-for-1 reverse split
      and
      all the shares issued in the Stock Transaction are "restricted securities"
      subject to the resale limitations of Rule 144. Of the 3,207,840,000 pre-split
      shares issued in the Stock Transaction, all of the shares are subject to lock-up
      agreements that preclude any sales prior to May 10, 2008 and until May 10,
      2010,
      limits sales of up to a maximum amount per day up to a maximum of 3% of the
      holders common stock per 30-day period and does not exceed 7% of the holders
      common stock per 90-day period. Thereafter, the holder may sell a maximum of
      1%
      of the issued and outstanding shares of common stock per quarter subject to
      the
      restrictions of SEC Rule 144.





In
      general, restricted securities may be sold pursuant to Rule 144 after they
      have
      been fully paid for and beneficially owned for one year and the shares are
      sold
      in brokers' transactions or to market makers in an amount per quarter not to
      exceed the greater of 1% of the number of shares of common stock then
      outstanding or the average weekly trading volume for a four-week period prior
      to
      such sale.





The
      Company is unable to estimate the number of shares to be sold in the future
      by
      its stockholders, since this will depend upon the market price for the common
      stock, the personal circumstance of the sellers and other factors. Previously,
      there has been a limited market for the common stock and the sale of a
      substantial number of shares on the market may significantly reduce the market
      price.


28





**SECURE
      VOICE COMMUNICATIONS, INC. - BUSINESS**





*Organizational
      History*





Secure
      Voice Communications, Inc. ("Secure Voice") was founded in the State of Texas
      on
      May 9, 2007. The authorized capitalization of Secure Voice was 50,000,000 shares
      of common stock, of which 40,098,000 shares were outstanding prior to the merger
      with Dragon Gold. On May 31, 2007, Dragon Gold closed on a transaction acquiring
      all of the common stock of Secure Voice pursuant to a plan of reorganization
      by
      and among Dragon Gold, Secure Voice and the stockholders of Secure Voice (the
      “Stock Transaction").





As
      a
      result of the Stock Transaction, Secure Voice became a wholly-owned subsidiary
      of the Company when the Company agreed to issue an aggregate of 3,207,840,000
      shares of its common stock to the former shareholders of Secure Voice (in
      exchange for all the outstanding capital stock of Secure Voice), resulting
      in
      the former shareholders of Secure Voice owning approximately 98.8% of the issued
      and outstanding Dragon Gold common stock. As the articles of incorporation
      only
      authorized the issuance of 500,000,000 shares of common stock, the Company
      issued 450,053,276 shares of common stock and is obligated to issue an
      additional 2,757,786,724 shares of common stock. At the annual shareholders
      meeting scheduled for June 19, 2007, the shareholders are being asked to approve
      an 80-for-1 reverse split that will not reduce the number of authorized shares
      of common stock. If such reverse split is approved, the Company will issue
      the
      balance of these shares which will equate to 34,472,334 shares on a post-split
      basis. Additionally, J. Leonard Ivins was appointed as a director and was also
      appointed to serve as chief executive officer and Carl A. Chase was appointed
      to
      serve as chief financial officer.





*Business
      Strategy*





Secure
      Voice is founded on the mission of discovering and acquiring leading-edge niche
      technologies, acting as their incubator and nurturing those technologies into
      market ready applications. The Company’s value proposition stems from its
      leading engineering and consulting talent pool that is embedded within its
      focus
      sectors, allowing for the identification and development of such technologies.
      Security is the underlying theme in all its endeavors. Secure Voice’s employees,
      consultants and partners allow us to participate effectively in the following
      technology sectors:





v
            VoIP
                and IP Telephony


v
            Biometrics


v
            Information
                Security


v
            Wireless/WiFi


v
            RFID





Based
      in
      Houston, Texas, Secure Voice will have research and development efforts spanning
      from California and Texas to international locations. Its capability to conduct
      business in a borderless world truly opens its horizons to include what it
      believes to be the latest in technology. More importantly, it will focus on
      technologies that it feels have a value add to current market-proven
      technologies, effectively reducing the risk inherent in research and design
      efforts.





Currently
      its primary focus will be on developing and readying for market a SIP (Session
      Initiation Protocol) based approach to defending voice traffic and voice packets
      against deliberate attacks such as DoS (Denial of Service).





IP
      telephony is a revolutionary technology with the potential to completely rework
      the world's phone systems. It is constantly gaining popularity and the number
      of
      IP telephony enabled networks continues to grow rapidly. It should come as
      no
      surprise that these networks are a prime target for different types of attacks.
      IP telephony enabled networks are complex. The potential targets and
      vulnerabilities are numerous and so are the different types of attacks that
      might be utilized. The objective of Secure Voice developing technology is to
      detect a subset of these attacks, known as flood attacks. These are classified
      as DoS attacks and builds upon the idea of sending data from one or several
      attackers at a higher rate than the target can process the received data. This
      will prohibit voice systems from being able to maintain the intended service
      level. The importance of this kind of product to the market is obvious, knowing
      the availability demands put on the telephony services of today. Secure Voice’s
      approach is unique and the Company will be pursuing a patent for this unique
      technology.





29




*Competition*





The
      marketplace in which the Company will compete is intensely competitive and
      subject to rapid technological change. The Company's competitors include other
      technology development and software firms. These competitors are national,
      regional and local. The Company anticipates that it will face additional
      competition from new entrants that provide significant performance, price,
      creative or other advantages over those offered by the Company. Many of these
      competitors have greater name recognition and resources than the
      Company.





*Employees*





The
      Company currently has two employees. In order to implement its business
      plan, the Company will be required to employ qualified technical and
      administrative employees or retain the services of qualified consultants with
      the technical expertise to evaluate the technologies which the Company is
      seeking.





*Insurance*





The
      Company currently does not have any insurance coverage to cover losses or risks
      incurred in the ordinary course of business. The Company intends to obtain
      insurance customary to its industry.





*Facilities*





The
      Company’s current headquarters are located at 5075 Westheimer Rd., Suite 975,
      Houston, Texas 77056. The Company has no cost associated with its current
      facilities. Should the Company be required to obtain suitable facilities in
      the
      future, it believes it can obtain the required facilities at competitive
      rates.





**RISK
      FACTORS**





The
      Company's business, financial condition and results of operations could be
      materially adversely affected if any of these risks materialized, which could
      result in the trading price of its common stock to decline.





*The
      company has a history of operating losses and does not expect to be profitable
      in the near future.*





The
      Company has not generated any profits since its inception, has no source of
      revenues, and has incurred significant operating losses. Furthermore, due to
      the
      nature of leading-edge niche technologies, the Company does not expect to
      generate significant revenue until future years. As the Company begins to
      develop its business strategy, it expects its expenses to increase in the next
      few years.





*Failure
      to raise additional capital will prevent the Company from implementing its
      business strategy.*





The
      Company needs to obtain significant additional capital resources through equity
      and/or debt financings. As of May 31, 2007, the Company had no assets in cash
      and cash equivalents. The Company plans to use its best efforts to obtain debt
      and/or equity financing in order to support its future operations and business
      strategies. There is no assurance that the Company will be successful in raising
      the funds necessary to meet its short-term (and long-term) working capital
      needs.





The
      Company believes that it will need to raise substantial capital to fund its
      business strategy for subsequent years. At this time, it is unable to estimate
      the amount of additional capital that will be required to fund its business
      strategy... Failure to obtain such funding could adversely affect the business
      strategy of the Company.





30




*The
      Company’s management is currently unproven.*





The
      Company has a limited history of operations under the management and control
      of
      the new officers and directors of the Company. The Company believes that the
      combined skill, education and experience of the new management team will be
      successful in is endeavors, however, there is no guarantee that the new
      management team will be successful.





*The
      Company’s stock price is highly volatile.*





The
      market price of the Company's common stock has fluctuated and may continue
      to
      fluctuate. These fluctuations may be exaggerated since the trading volume of
      its
      common stock is volatile. These fluctuations may or may not be based upon any
      business or operating results. Its common stock may experience similar or even
      more dramatic price and volume fluctuations in the future.





*The
      Company is unlikely to pay dividends on its common stock.*





The
      Company does not anticipate paying any cash dividends on its common stock in
      the
      foreseeable future. While its dividend policy will be based on its operating
      results and capital needs, the Company anticipates that all earnings, if any,
      will be retained to finance its future operations.


31


**FINANCIAL
      STATEMENTS**


SECURE
      VOICE COMMUNICATIONS, INC.





**REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**








The
      Board
      of Directors and Stockholders


Secure
      Voice Communications, Inc.





We
      have
      audited the accompanying balance sheet of Secure Voice Communications, Inc.
      (a
      development stage company) (the "Company"), as of May 9, 2007 (inception) to
      May
      30, 2007, and the related statements of operations, shareholders' deficit and
      cash flows from inception (May 9, 2007) to May 30, 2007. 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.





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, based on our audit, the financial statements referred to above present
      fairly, in all material respects, the financial position of Secure Voice
      Communications, Inc. as of May 30, 2007, and the results of its operations
      and
      its cash flows from inception (May 9, 2007) to May 30, 2007, in conformity
      with
      accounting principles generally accepted in the United States of
      America.




The
      accompanying financial statements have been
      prepared assuming that the Company will continue as a going concern.  As
      discussed in Note 1 to the financial statements, the Company is in the
      development stage, has no established source of revenue and has suffered a
      loss
      from operations that raises substantial doubt about its ability to continue
      as a
      going concern.  The financial statements do not include any adjustments
      that might result from the outcome of this uncertainty.














Thomas
      Leger & Co. L.L.P.








June
      6,
      2007


Houston,
      Texas








32


**SECURE
      VOICE COMMUNICATIONS, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**BALANCE
      SHEET**


**MAY
      30, 2007**











**ASSETS**Cash
            
            $
            1,165License
                agreement
            
            
            80,100Total
                assets
            
            $
            81,265**LIABILITIES
                AND SHAREHOLDERS’ DEFICIT**Note
                payable - related party
            
            $
            200,000Shareholders’
                deficit:Common stock
            
            
            2,045Deficit accumulated during development stage
            
            
            (120,780
            )Total shareholders’ deficit
            
            
            (118,735
            )Total
                liabilities and shareholders’ deficit
            
            $
            81,265





See
      accompanying notes to audited financial statements.


33


**SECURE
      VOICE COMMUNICATIONS, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENT
      OF OPERATIONS**


**PERIOD
      FROM MAY 9, 2007 (INCEPTION) THROUGH MAY 30, 2007**











Revenue
            
            $
            --Expenses:Compensation expense
            
            
            120,220Consulting and legal fees
            
            
            560Total expenses
            
            
            120,780Net
                loss
            
            $
            (120,780
            )Net
                loss per share - basic and diluted
            
            $
            (0.00
            )Weighted
                average shares outstanding - basic and diluted
            
            
            35,823,000





See
      accompanying notes to audited financial statements.


34


**SECURE
      VOICE COMMUNICATIONS, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENT
      OF STOCKHOLDERS’ DEFICIT**


**PERIOD
      FROM MAY 9, 2007 (INCEPTION) THROUGH MAY 30, 2007**











Common
            
            Common
            
            AccumulatedStock
            
            Stock
            
            Deficit
            
            TotalCommon
                stock issued to founders
            
            
            29,648,000
            
            $
            1,000
            
            $
            --
            
            $
            1,000Common
                stock issued for cash
            
            
            1,650,000
            
            
            165
            
            
            --
            
            
            165Common
                stock issued for services
            
            
            8,800,000
            
            
            880
            
            
            --
            
            
            880Net
                loss
            
            
            --
            
            
            --
            
            
            (120,780
            )
            
            (120,780
            )Balance
                May 30, 2007
            
            
            40,098,000
            
            $
            2,045
            
            $
            (120,780
            )
            $
            (118,735
            )





See
      accompanying notes to audited financial statements.





35


**SECURE
      VOICE COMMUNICATIONS, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**STATEMENT
      OF CASH FLOWS**


**PERIOD
      FROM MAY 9, 2007 (INCEPTION) THROUGH MAY 30, 2007**











Operating
                activities:Net
                loss
            
            $
            (120,780
            )Adjustments
                to reconcile net loss to net cash provided by (used in) operating
                activities:Compensation expense relating to license agreement
            
            
            119,900Common stock issued for services
            
            
            560Common stock issued pursuant to employment agreements
            
            
            320Net
                cash provided by (used in) operating activities
            
            
            --Net
                cash provided by (used in) investing activities
            
            
            --Financing
                activities:Common stock issued to founders for cash
            
            
            1,000Common stock issued for cash
            
            
            165Net
                cash provided by financing activities
            
            
            1,165Cash
                - beginning of period
            
            
            --Cash
                - end of period
            
            $
            1,165Supplemental
                disclosures:Interest paid
            
            $
            --Taxes paid
            
            $
            --Non-cash
                financing activities:Issuance of note payable for license agreement
            
            $
            200,000





See
      accompanying notes to audited financial statements.





36


**SECURE
      VOICE COMMUNICATIONS, INC.**


**(A
      DEVELOPMENT STAGE COMPANY)**


**NOTES
      TO FINANCIAL STATEMENTS**





**NOTE
      1.**  **SUMMARY
      OF ACCOUNTING POLICIES**





*Nature
      of business*





On
      May 9,
      2007, Secure Voice Communications, Inc. ("Secure Voice") was incorporated in
      the
      State of Texas. Secure Voice is a development-stage company that was created
      for
      the purposes of raising capital to be used for projects for discovering and
      acquiring leading-edge niche technologies, acting as their incubator and
      nurturing those technologies into market ready applications.





On
      May
      31, 2007, Secure Voice exchanged 100% of its outstanding common stock for
      approximately 98.8% of the common stock of Dragon Gold Resources, Inc. ("Dragon
      Gold"), a U.S. public company. For accounting purposes, the merger will be
      treated as an acquisition of Dragon Gold and a recapitalization of Secure
      Voice.





Secure
      Voice’s year end will be March 31, the same as Dragon Gold's.




*Going
      Concern*




These
      financial statements have been prepared on a going concern basis, which implies
      the Company will continue to realize its assets and discharge its liabilities
      in
      the normal course of business. The Company has never generated revenues since
      its inception and is unlikely to generate earnings in the immediate or
      foreseeable future. The continuation of the Company as a going concern is
      dependent upon the continued financial support from its shareholders, the
      ability of the Company to obtain necessary equity financing to continue
      operations and the attainment of profitable operations. As of May 30, 2007,
      the
      Company has accumulated losses of $120,780 since inception. These financial
      statements do not include any adjustments to the recoverability and
      classification of recorded asset amounts and classification of liabilities
      that
      might be necessary should the Company be unable to continue as a going concern.
      These factors raise substantial doubt regarding the Company's ability to
      continue as a going concern.





*Use
      of Estimates*





The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities at the date of the balance sheet. Actual results could differ from
      those estimates.





*Cash
      and Cash Equivalents*





Cash
      and
      cash equivalents include cash and all highly liquid financial instruments with
      purchased maturities of three months or less.





*Income
      Taxes*





Income
      taxes are computed using the asset and liability method. Under the asset and
      liability method, deferred income tax assets and liabilities are determined
      based on the differences between the financial reporting and tax bases of assets
      and liabilities and are measured using the currently enacted tax rates and
      laws.
      A valuation allowance is provided for the amount of deferred tax assets that,
      based on available evidence, are not expected to be realized.





*Basic
      Earnings/(Loss) Per Share*





Basic
      earnings/(loss) per share has been calculated based on the weighted average
      number of shares of common stock outstanding during the period.





*Recent
      Accounting Pronouncements*





In
      February 2007, the FASB issued FASB Statement No. 159, Establishing the Fair
      Value Option for Financial Assets and Liabilities ("SFAS 159"), to permit all
      entities to choose to elect to measure eligible financial instruments at fair
      value. SFAS 159 applies to fiscal years beginning after November 15, 2007,
      with
      early adoption permitted for an entity that has also elected to apply the
      provisions of SFAS 157, Fair Value Measurements. An entity is prohibited from
      retrospectively applying SFAS 159, unless it chooses early adoption. Management
      is currently evaluating the impact of SFAS 159 on the consolidated financial
      statements.





37




In
      June
      2006, the Financial Accounting Standards Board issued FASB Interpretation No.
      48, *“Accounting
      for Uncertainty in Income Taxes”* (“FIN
      48”) *.* FIN 48
      clarifies the application of SFAS No. 109, *Accounting
      for Income Taxes* ,
      by
      establishing a threshold condition that a tax position must meet for any part
      of
      the benefit of that position to be recognized in the financial statements.
      In
      addition to recognition, FIN 48 provides guidance concerning measurement,
      derecognition, classification and disclosure of tax positions. FIN 48 is
      effective for fiscal years beginning after December 15, 2006; accordingly,
      the
      Company will adopt FIN 48 effective as of January 1, 2007. Currently, the
      Company does not anticipate that the adoption of FIN 48 will have a material
      impact on its effective tax rate.





In
      September 2006, the Financial Accounting Standards Board (“FASB”) issued FASB
      Staff Position (“FSP”) AUG AIR-1 — Accounting for Planned Major Maintenance
      Activities. FSP AUG AIR-1 prohibits the use of the accrue-in-advance method
      of
      accounting for planned major maintenance activities because it results in the
      recognition of a liability in a period prior to the occurrence of the
      transaction or event obligating the entity. FSP AUG AIR-1 is effective for
      fiscal years beginning after December 15, 2006, and its guidance is applicable
      to entities in all industries. The Company will adopt the guidance in FSP
      AUG-AIR-1 as of January 1, 2007. The Company is currently evaluating the impact
      that the adoption of this guidance will have on its financial position and
      results of operations.





In
      September 2006, the Securities and Exchange Commission staff issued Staff
      Accounting Bulletin (“SAB”) No. 108, *Considering
      the Effects of Prior Year Misstatements when Quantifying Misstatements in
      Current Year Financial Statements.* SAB
      108
      provides guidance on how the effects of the carryover or reversal of prior
      year
      misstatements should be considered in quantifying a current year misstatement.
      SAB 108 established a dual approach that requires quantification of errors
      under
      two methods: (1) roll-over method which quantifies the amount by which the
      current year income statement is misstated, and (2) the iron curtain method
      which quantifies the error as the cumulative amount by which the current year
      balance sheet is misstated. In some situations, companies will be required
      to
      record errors that occurred in prior years even though those errors were
      immaterial for each year in which they arose. Companies may choose to either
      restate all previously presented financial statements or record the cumulative
      effect of such errors as an adjustment to retained earnings at the beginning
      of
      the period in which SAB 108 is applied. SAB 108 is effective for fiscal years
      ending after November 15, 2006. The adoption of this pronouncement did not
      have
      an impact on the Company’s financial position or results of
      operations.





In
      September 2006, the FASB issued SFAS No. 157, *Fair
      Value Measurements* (“SFAS
      157”), which is intended to increase consistency and comparability in fair value
      measurements by defining fair value, establishing a framework for measuring
      fair
      value and expanding disclosures about fair value measurements. SFAS 157 is
      effective for financial statements issued for fiscal years beginning after
      November 15, 2007, and interim periods within those fiscal years. The Company
      will adopt SFAS 157 on January 1, 2008, and has not yet determined the impact,
      if any, on its consolidated financial statements.





**NOTE
      2.**  **NOTE
      PAYABLE - RELATED PARTY**





On
      May
      10, 2007, Secure Voice Communications, Inc. (Texas) entered into a note
      agreement with Secure Voice Communications, Inc. (Florida) to acquire the
      license rights to a voice over IP (VOIP) technology. The principal amount of
      the
      note is $200,000 with an annual interest rate of 9% and principal and accrued
      and unpaid interest due May 10, 2008. The principal amount of the note exceeded
      the fair value of the license rights of $80,100 and the excess was charged
      to
      compensation expense. Secure Voice Communications, Inc. (Florida) is owned
      100%
      by KM Casey No. 1 LTD which is an affiliate of Kevan Casey who is also
      affiliated with Silver Star Holdings, the majority shareholder of Secure Voice
      Communications, Inc. (Texas).





**NOTE
      3.**  **INCOME
      TAXES**





Secure
      Voice has not yet realized income as of the date of this report, and no
      provision for income taxes has been made. At May 30, 2007, there were no
      deferred tax assets or liabilities.




**NOTE
      4.**  **COMMON
      STOCK**





Secure
      Voice issued 29,648,000 shares of common stock to its founding stockholders
      in
      exchange for $1,000 in cash. On May 17, 2007, the Company issued 1,650,000
      shares of its common stock for cash of $165 and 8,800,000 shares of its common
      stock for services which it valued at $880. On May 31, 2007, the Company
      exchanged 100% of its common stock for approximately 98.8% of Dragon Gold as
      discussed in Note 1.




NOTE
      5.  SUBSEQUENT
      EVENT


On
        May 31,
        2007 (the “Closing Date”), Dragon Gold Resources, Inc., a Nevada corporation
        (the "Company" or “Dragon Gold”) entered into and closed an Agreement and Plan
        of Reorganization (the “Exchange Agreement”) with Secure Voice Communications,
        Inc., a Texas corporation (“Secure Voice”) and the stockholders of Secure Voice
        (the “Stock Transaction”). As a result of the Stock Transaction, Secure Voice
        became a wholly-owned subsidiary of the Company when the Company agreed to
        issue
        an aggregate of 3,207,840,000 shares of its common stock to the former
        shareholders of Secure Voice (in exchange for all the outstanding capital
        stock
        of Secure Voice), resulting in the former shareholders of Secure Voice owning
        approximately 98.8% of the issued and outstanding Dragon Gold common stock.
        As
        the articles of incorporation only authorized the issuance of 500,000,000
        shares
        of common stock, the Company issued 450,053,276 shares of common stock and
        is
        obligated to issue an additional 2,757,786,724 shares of common stock. At
        the
        annual shareholders meeting scheduled for June 19, 2007, the shareholders
        are
        being asked to approve an 80-for-1 reverse split that will not reduce the
        number
        of authorized shares of common stock. If such reverse split is approved,
        the
        Company will issue the balance of these shares which will equate to 34,472,334
        shares on a post-split basis.




38


**UNAUDITED
      PRO FORMA CONSOLIDATED BALANCE SHEET**


**DRAGON
      GOLD RESOURCES, INC. AND**


**SECURE
      VOICE COMMUNICATIONS, INC.**





The
      following unaudited pro forma balance sheet has been derived from the balance
      sheet of Dragon Gold Resources, Inc. ("Dragon Gold") at March 31, 2007, and
      adjusts such information to give effect to the acquisition of Secure Voice
      Communications, Inc. ("Secure Voice"), as if the acquisition had occurred at
      March 31, 2007. The unaudited pro forma balance sheet is presented for
      informational purposes only and does not purport to be indicative of the
      financial condition that would have resulted if the acquisition had been
      consummated at March 31, 2007. The pro forma balance sheet should be read in
      conjunction with the notes thereto and Secure Voice’s financial statements and
      related notes thereto contained elsewhere in this filing. The unaudited pro
      forma consolidated statement of operations for the period ended March 31, 2007,
      was prepared assuming that the transaction described above was consummated
      as of
      the beginning of the period presented giving effect to the acquisition, which
      will effectively be that of Dragon Gold, therefore, an unaudited consolidated
      statement of operations is not included herein.





An
      unaudited pro-forma consolidated balance sheet is presented below.





Dragon
                Gold
            
            SecureMarch
                31, 2007
            
            Voice
            
            
            
            UnauditedMay
                30, 2007
            
            Adjustments
            
            Pro
                FormaAssets:Cash
            
            $
            1,315
            
            $
            1,165
            
            
            (1,315
            )
            $
            1,165Property
                and equipment, net
            
            
            1,179
            
            
            --
            
            
            (1,179
            )
            
            --License
                agreement
            
            
            --
            
            
            80,100
            
            
            
            
            
            80,100Total
                assets
            
            $
            2,494
            
            $
            81,265
            
            
            
            
            $
            81,265Liabilities
                and Shareholders’ Deficit:Accounts
                payable
            
            $
            10,613
            
            $
            --
            
            
            (10,613
            )
            $
            --Note
                payable - related party
            
            
            --
            
            
            200,000
            
            
            
            
            
            200,000Due
                to related parties
            
            
            88
            
            
            
            
            
            (88
            )
            
            --Total liabilities
            
            
            10,701
            
            
            200,000
            
            
            
            
            
            200,000Shareholders’
                deficit:Common stock
            
            
            49,947
            
            
            2,045
            
            
            3,205,795
            
            
            3,257,787Additional paid-in capital
            
            
            2,704,447
            
            
            --
            
            
            (2,704,447
            )
            
            --Accumulated deficit
            
            
            (2,762,601
            )
            
            (120,780
            )
            
            (493,141
            )
            
            (3,376,522
            )Total shareholders’ deficit
            
            
            (8,207
            )
            
            (118,735
            )
            
            
            
            
            (118,735
            )Total
                liabilities and shareholders’deficit
            
            $
            2,494
            
            $
            81,265
            
            
            
            
            $
            81,265





**NOTES
      TO UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET**





On
      May
      31, 2007, the Registrant acquired 100% of the issued and outstanding shares
      of
      Secure Voice in exchange for 3,207,840,000 shares of the Registrant's common
      stock. As the articles of incorporation only authorized the issuance of
      500,000,000 shares of common stock, the Company issued 450,053,276 shares of
      common stock and is obligated to issue an additional 2,757,786,724 shares of
      common stock. At the annual shareholders meeting scheduled for June 19, 2007,
      the shareholders are being asked to approve an 80-for-1 reverse split that
      will
      not reduce the number of authorized shares of common stock. If such reverse
      split is approved, the Company will issue the balance of these shares which
      will
      equate to 34,472,334 shares on a post-split basis.





The
      above
      pro forma consolidated balance sheet reflects; 1) the elimination of assets
      and
      liabilities of Dragon Gold; 2) the issuance of 40,098,000 post-split shares
      of
      common stock (par value $0.08) issued to the shareholders’ of Secure Voice and
      merger expenses of $336,000 to be recognized effective May 31,
      2007.


39





**PART
      III**





**ITEMS
      9, 10, 11, AND 12**





These
      items have been omitted in accordance with the general instructions to Form
      10-KSB. The information required by these items is included in the Company’s
      definitive proxy statement which was filed on June 1, 2007, and are incorporated
      by reference in this annual report.





**ITEM
      13. EXHIBITS AND REPORTS ON FORM 8-K**





Exhibit
                No.
            Description10.1
            Agreement
                and Plan of Reorganization between Dragon Gold
                Resources, Inc. and Secure Voice Communications, Inc. dated May 31,
                2007.
                Provided herewith.10.2
            Dragon
                Gold Resources, Inc. 2007 Stock Option Plan.
                Provided herewith. *10.3
            Employment
                agreement dated May 10, 2007, with J. Leonard
                Ivins. Provided herewith. *10.4
            Employment
                agreement dated May 10, 2007, with Carl A.
                Chase. Provided herewith. *21.1
            Subsidiaries
                of the Registrant. Provided
                herewith.31.1
            Certification
                of J. Leonard Ivins. Provided
                herewith.31.2
            Certification
                of Carl A. Chase. Provided
                herewith.32.1
            Certification
                for Sarbanes-Oxley Act of J. Leonard Ivins.
                Provided Herewith.32.2
            Certification
                for Sarbanes-Oxley Act of Carl A. Chase.
                Provided Herewith.





* Indicates
      management contract or compensatory plan or arrangement.




**ITEM
      14. PRINCIPAL ACCOUNTANT FEES AND
      SERVICES**







This
      item
      has been omitted in accordance with the general instructions to Form 10-KSB.
      The
      information required will be included in the Company’s definitive proxy or
      information statement which was filed with the SEC on June 1, 2007, and is
      incorporated by reference in this annual report.





40


**SIGNATURES**







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







**DRAGON
              GOLD RESOURCES, INC.**Date: June
              6, 2007
            By:
            /s/  
              J. Leonard IvinsJ. Leonard IvinsChief
              Executive Officer








Pursuant
      to the requirements of 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.




Date: June
              6,
              2007
            By:
            /s/ J.
              Leonard IvinsJ.
              Leonard IvinsChief
              Executive Officer and Dorector


Date: June
              6,
              2007
            By:
            /s/ Carl
              A.
              ChaseCarl
              A. ChasePrincipal
              Financial and accounting Officer and
              Director


Date: June
              6,
              2007
            By:
            /s/ Hank
              VanderkamHank
              VanderkamDirector








41


**EXHIBITS**





Exhibit
                No.
            Description10.1
            Agreement
                and Plan of Reorganization between Dragon Gold
                Resources, Inc. and Secure Voice Communications, Inc. dated May 31,
                2007.
                Provided herewith.10.2
            Dragon
                Gold Resources, Inc. 2007 Stock Option Plan.
                Provided herewith. *10.3
            Employment
                agreement dated May 10, 2007, with J. Leonard
                Ivins. Provided herewith. *10.4
            Employment
                agreement dated May 10, 2007, with Carl A.
                Chase. Provided herewith. *21.1
            Subsidiaries
                of the Registrant. Provided
                herewith.31.1
            Certification
                of J. Leonard Ivins. Provided
                herewith.31.2
            Certification
                of Carl A. Chase. Provided
                herewith.32.1
            Certification
                for Sarbanes-Oxley Act of J. Leonard Ivins.
                Provided Herewith.32.2
            Certification
                for Sarbanes-Oxley Act of Carl A. Chase.
                Provided Herewith.





*
      Indicates management contract or compensatory plan or arrangement.