SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB
(Mark One)

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

                    For the fiscal year ended March 31, 2005

                                       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               (IRS Employer Identification No.)
incorporation or organization)

         Regent's Place, 338 Euston Road, London NW1 3BT, United Kingdom
                    (Address of principal executive offices)

                                + 44 207 416 4920
                           (Issuer's telephone number)

            Class                    Shares Outstanding           Date
            -----                    ------------------           ----
   Common, $0.001 par value              53,221,724              June 30, 2005

         Indicate by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days:

                                 Yes |X| No |_|

         Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B 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 form10-KSB
or any amendment to this Form 10-KSB. |_|

         The Issuer's revenues for the fiscal year ended March 31, 2005 were $0.

The number of shares of the registrant's common stock outstanding as of June 30,
2005 is 53,221,724. The aggregate market value of the issuer's voting and
non-voting common equity held by non-affiliates computed by reference to the
closing price of such common equity as of June 30, 2005, was approximately
$12,773,214.

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None

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



<PAGE>



                           DRAGON GOLD RESOURCES, INC.
                                      INDEX

                                TABLE OF CONTENTS

                                                                            Page

PART I

         ITEM 1.      BUSINESS............................................     2
         ITEM 2.      DESCRIPTION OF PROPERTY.............................     5
         ITEM 3.      LEGAL PROCEEDINGS...................................     6
         ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF
                      SECURITY HOLDERS....................................     7

PART II

         ITEM 5.      MARKET FOR COMMON EQUITY AND
                      RELATED STOCKHOLDER MATTERS.........................     7
         ITEM 6.      MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
                      OF OPERATION........................................     7
         ITEM 7.      FINANCIAL STATEMENTS AND NOTES......................     8
         ITEM 8.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
                      ON ACCOUNTING AND FINANCIAL DISCLOSURE..............    30
         ITEM 8A.     MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER
                      FINANCIAL REPORTING.................................    31

PART III

         ITEM 9.      DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
                      CONTROL PERSONS; COMPLIANCE WITH
                      SECTION 16(a) OF THE EXCHANGE ACT...................    31
         ITEM 10.     EXECUTIVE COMPENSATION..............................    31
         ITEM 11.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
                      OWNERS AND MANAGEMENT...............................    32
         ITEM 12.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS......    32
         ITEM 13.     EXHIBITS AND REPORTS OF FORM 8-K....................    32
         ITEM 14.     PRINCIPAL ACCOUNTANT FEES AND SERVICES..............    32


SIGNATURES            ....................................................    33




<PAGE>



SPECIAL NOTE  REGARDING  FORWARD-LOOKING  STATEMENTS

Certain statements in this Annual Report on Form 10-KSB (this "Form 10 KSB"),
including statements under "Item 1. Description of Business," and "Item 6.
Management's Discussion and Analysis or Plan of Operation", constitute "forward
looking statements" within the meaning of Section 27A of the Securities Act of
1934, as amended, and the Private Securities Litigation Reform Act of 1995
(collectively, the "Reform Act"). Certain, but not necessarily all, of such
forward-looking statements can be identified by the use of forward-looking
terminology such as "believes", "expects", "may", "will", "should", or
"anticipates", or the negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy that involve risks and uncertainties.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of Dragon Gold Resources, Inc. ("the Company", "we", "us" or "our")
to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. References in this form
10-KSB, unless another date is stated, are to March 31, 2005.


                                     PART I

ITEM 1.  DESCRIPTION OF BUSINESS

BUSINESS  DEVELOPMENT

The Company was originally incorporated in the State of Nevada, U.S.A. on
December 13, 2000 as Folix Technologies Inc. On June 1, 2004, the Company filed
a Certificate of Amendment to change its name to Dragon Gold Resources, Inc.
change which became effective on June 14, 2004. Since July 2004, the Company's
management has been based in London, England. Formerly, management was based in
Vancouver, British Columbia, Canada. The Company is an exploration stage company
engaged in the acquisition and exploration of mineral properties in the People's
Republic of China ("China") and Mongolia. The Company's existing interests in
mineral properties are discussed in more detail below under the heading
"Description of Property."

On March 9, 2001, the Company entered into an asset purchase agreement to
acquire certain hair loss prevention and hair loss regrowth intellectual
property. The Company was to pay CDN$25,000 in monthly installments and issue
100,000 shares of common stock. The Company paid CDN$2,000 (US $1,280) and
issued 100,000 shares of common stock before terminating the agreement on May 1,
2001. The Company is no longer involved in the hair loss business. Effective
June 14, 2004, the Company declared a 7 to 1 forward stock split. The effect of
the stock split has been retroactively reflected in this report on Form 10-KSB
unless otherwise stated.

For approximately 6 months during 2004 the Company was in the business of
developing a client-server system as a product for sale. The system was designed
to run computer programs from a centralized location on a user's terminal. The
Company is no longer involved in the development of LINUX-based applications.

On July 15, 2004, the Registrant acquired 100% of the issued and outstanding
common stock of Dragon Minerals Holdings Inc., an International Business Company
incorporated under the laws of the British Virgin Islands in exchange for
16,500,000 newly issued shares of the Registrant's common stock pursuant to an
Exchange Agreement whereby Dragon Mineral Holdings Inc. became a wholly-owned
subsidiary of the Registrant.

Subsequent to the Exchange, the Registrant entered into an agreement with
Gregory Corcoran whereby the Registrant transferred certain assets held
immediately prior to the Exchange, and the Registrant's then existing
liabilities related thereto, to Gregory Corcoran, the Registrant's former
President and Chief Executive Officer, in consideration for $1,000. The
Registrant transferred the following assets to Mr. Corcoran: the tangible assets
excluding cash and the intangible assets including i) the right to the name
"Folix Technologies, Inc."; ii) the right to operate the business of developing
a Linux based application server and thin client system; and iii) any contracts,
agreements, rights or other intangible property, owned by the Registrant
immediately prior to the Exchange (collectively referred to as the "Assets").
The Registrant also transferred the liabilities that relate to the Assets to Mr.
Corcoran.

On September 6th, 2004, Gregory Corcoran, a former director and the former Chief
Executive Officer of the Registrant, sold an aggregate of 11,600,000 shares of
the Registrant's common stock for an aggregate purchase price of $154,800 to
seven individuals and one entity. Johannes Petersen, a director and the Chief
Executive Officer of the Registrant, purchased 1,000,000 of these shares of
common stock from Mr. Corcoran. On that same date, Mr. Corcoran agreed to cancel
16,400,000 shares of the Registrant's common stock. Prior to these events, Mr.
Corcoran owned 41.6% of the Registrant's common stock and together with Raoul
Tsakok, who owned 17.1% at the time, exercised control over the Registrant.
Subsequent to these events, Mr. Corcoran will not own any shares of the
Registrant's common stock.

Dragon Minerals Holdings, Inc. was incorporated on February 25, 2004 as an
International Business Company incorporated under the laws of the British Virgin
Islands. The Registrant is a holding company for Dragon Minerals Holdings Inc.
which in turn holds all of the common stock of Dragon Minerals Inc., Dragon
Minerals - Shiquan, Inc., Dragon Minerals - Taiyu, Inc., and Dragon Minerals -
Xunyang, Inc., all of them International Business Companies incorporated under
the laws of the British Virgin Islands. On July15, 2004, the Registrant acquired
100% of the issued and outstanding common stock of Dragon Minerals Holdings Inc,
as discussed above. The Company is headquartered in London, UK. The Company
intends to engage in gold exploration and development activities in the People's
Republic of China ("China") and Mongolia.
                                       3
<PAGE>

DESCRIPTION OF THE PRINCIPAL PRODUCTS AND SERVICES

The Company does not currently offer any products or services. Dragon Gold
Resources Inc. is an exploration stage company engaged in the acquisition and
exploration of mineral properties in the People's Republic of China and
Mongolia. The Company anticipates acquiring rights to explore and develop other
properties as viable opportunities arise. In the event that the Company
discovers economic deposits of gold or other minerals, it intends to either sell
the deposits or, depending on the specific characteristics of each discovery,
conduct its own mining operations to extract the gold or other minerals for
future sale.

MARKET OVERVIEW

The business of mineral deposit exploration and extraction involves a high
degree of risk. Few properties that are explored are ultimately developed into
production. At present, none of the Company's properties has a known body of
commercial ore. Other risks facing the Company include competition, reliance on
third parties and joint venture partners, environmental and insurance risks,
political and environmental instability, statutory and regulatory requirements,
fluctuations in mineral process and foreign currencies, share price volatility,
title risks, and uncertainty of additional financing.

COMPETITIVE  BUSINESS  CONDITIONS

The mineral industry is intensely competitive in all its phases. Worldwide, the
competitive business environment for minerals exploration is variable and
dependent upon geographic location, political and regulatory environments,
technology applications, and the specific mineral commodity being sought. The
gold exploration and development industry is a truly global business and it is
very competitive, with well established companies that have more experience and
resources than the Company. These companies are generally more capable to
compete than the Company.

COPYRIGHTS, PATENTS, TRADEMARKS  & LICENSES

The Company does not have any copyrights, patents, trademarks, license or other
types of intellectual property.

NEED FOR GOVERNMENTAL APPROVAL AND THE EFFECTS OF REGULATIONS

In China, the formation of Sino-Foreign Joint Venture Companies requires the
approval of local and/or central government instances in China. In the case the
Company proceeds to form such joint venture companies, several approvals will be
required, such as the issuance of a business license to each Joint Venture
Company formed. Actual exploration and development on the property will require
additional governmental permits such as certain environmental permits. The
Permits grant the right to the mineral resources found below the surface of the
properties.

In Mongolia, exploration licenses are subject to governmental approval in the
form of exploration license renewals, mining license issuance, environmental
studies, among others.

In other jurisdictions, government regulations require permits and, in some
cases, reclamation bonding. The details of such permits and the size of the
bonds are related to the location of the property and size of the anticipated
exploration-related surface disturbance. The effect of these regulations on the
Company will include the cost of obtaining permits, posting reclamation bonds
(if required), and completing environmental restoration work if a property is to
be abandoned.

RESEARCH & DEVELOPMENT OVER THE PAST TWO YEARS

The Company has not conducted any research and development activities since
inception. The Company does not have plans to conduct any research and
development during the next twelve months. During the next twelve months,
however, the Company does intend to conduct exploration and development
activities on its properties in Mongolia and in any other properties it
eventually adds to its portfolio.

EMPLOYEES

Andrew F de P Malim, our Non-executive Chairman, devotes approximately 8 hours
per week to our business. Johannes Petersen, our Chief Executive Officer, and
Xiaojun "Albert" Cui, our Director of Explorations, each devotes approximately
40 hours per week to our business. The Company will use a small number of
consultants when needed during the development stage.
                                       4
<PAGE>

ITEM 2.  DESCRIPTION OF PROPERTY

Mineral Properties, Mongolia

The Company owns and/or has the right to acquire a series of mineral exploration
licenses in Mongolia as described on the following table:
<TABLE>

        Area Name            License #   Province        Area (Km2)      Description
------- -------------------- ----------- --------------- --------------- --------------------------------------
<S>     <C>                  <C>         <C>              <C>            <C>

1.      Olon Aarg            L7551X      Dornogovi               100.14  Option Agreement to acquire 100% (1)
------- -------------------- ----------- --------------- --------------- --------------------------------------
2.      Baruun Khavtsal      L7422X      Uvs                     100.42  Option Agreement to acquire 100% (1)
------- -------------------- ----------- --------------- --------------- --------------------------------------
3.      Yamaat               L7552X      Zavkhan                 105.71  Option Agreement to acquire 100% (1)
------- -------------------- ----------- --------------- --------------- --------------------------------------
4.      Uneged Uul           L7423X      Uvs / Zavkhan            97.57  Option Agreement to acquire 100% (1)
------- -------------------- ----------- --------------- --------------- --------------------------------------
5.      Ondor Khoshuu        L8048X      Dornogovi                74.26  Option Agreement to acquire 100% (1)
------- -------------------- ----------- --------------- --------------- --------------------------------------
6.      Del-Khad             L7389X      Uvurkhangai              61.26  Owner of a 100% interest (2)
------- -------------------- ----------- --------------- --------------- --------------------------------------
7.      Oyut                 L7390X      Uvurkhangai             172.26  Owner of a 100% interest (2)
------- -------------------- ----------- --------------- --------------- --------------------------------------
</TABLE>

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

(2) On June 2, 2005, the Company entered into an Exploration License Transfer
Agreement. The Company acquired two mining claims in the Taragt subprovince of
the Uvurkhangai Province of Mongolia. The claims were sold by Mine Info, Ltd.
for a purchase price of US$19,000. The Company paid 50% of the $19,000 purchase
price on June 2, 2005 and will pay the balance on successful government
registration of the claim.

NORTHWEST MONGOLIA

Baruun Khavtsal (L7422X) - The field is located in Uvs Province, approximately
1300 km away from Ulaanbaatar and occupies an area of 10,042 hectares. The
property is accesible via paved road all year round. This property is located
within the Ozernaya terrane in northwest Mongolia and lies to the east of the
International Uranium Corporation's Tsagaan Tolgoi/Shiveen Gol copper-gold
project. Previous exploration work identified copper and iron occurrences.


Uneged Uul (L7423X) - The property lies on two provinces: Uvs and Zavkhan,
approximately 1120 km westward of Ulaanbaatar. It covers an area of 9,757
hectares and it is located in the western part of the Hangai range within the
Northern Mongolian folding system and exposed to sedimentary-volcanic complex of
the north-western part of the Zavkhan structural formation. Geographically it
rests within small mountains in the north uprising of the Hunguin River basin.
Access to the property is via a dirt road. The area underwent geological and
stratigraphic surveys at various levels.


Yammat (L7552X) - This property is located at approximately 1,070 km west of
Ulaanbaatar, in Zavkhan province. It covers an area of 10,571 hectares. The
exploration field is located in the western part of the Hangai mountain range
within the Northern Mongolian folding system and exposed to Permian intrusive
complex of the Zavkhan structural formation. Geographically it rests in the
north uprising of the Zavkhan River and belongs to a high mountain zone. The
area underwent geological and stratigraphic surveys at various levels.

SOUTHEASTERN MONGOLIA

Olon Aarag (L7551X) - This property rests 450 km south-eastward of Ulaanbaatar
and covers an area of 10,014 hectares. It is located within the South Mongolian
terrane or the South Gobi porphyry copper-gold belt. This region is known to
host giant copper and gold deposits such as the Oyu Tolgoi deposit. Access to
the property is possible even without the existence of roads because of the
flatness of the area. Previous work by others established several copper and
copper-iron occurrences and mineralized points in the property area.

Ondor Khoshuu (L8048X) - The property rests 575 km south of Ulaabatar and covers
an area of 7,462 hectates. It is located within the South Mongolian terrane or
the South Gobi porphyry copper-gold belt. This region is known to host giant
copper and gold deposits such as the Oyu Tolgoi deposit. No significant
mineralization points or occurrences were found under previous geological works.
All year-round access to the property via paved roads.
                                       5
<PAGE>

CENTRAL MONGOLIA

Del Khad (L7389X) - The property is located in Uvurkhangai province at 420 km
southwest of Ulaanbaatar and it covers 6,126 hectares. Access is via paved road.
According to the previous exploratory work reports, lower to middle
Carboniferous sedimentary rocks of the Khangain series and a late Permian to
early Triassic granodiorite stock are exposed within the license area. The rocks
were further intruded by granitic porphyry and rhyolite dykes. Hydrothermal
alteration zones, quartz-pegmatite veins and veinlets and dykes of sub-volcanic
origins with intensive silicification, pyritization, and chloritization occur
around the granodiorite stock body. Gold grades of 0.01 to 8 g/t were indicated
by limited samples collected from the alteration zones and quartz vein samples.
These results were recorded in previous exploration reports and have not been
verified by the Company.

Oyut Area (L7390X) - The property is located in Uvurkhangai province and it
covers 17,226 hectares. Access is via paved road. The property is located in the
Oyut area, 400 km southwest of Ulaanbaatar. Middle-upper Devonian and early
Carboniferous volcanic-sedimentary rocks are widely exposed in the license area.
Also quartzite, jasperoid veins, stock bodies are widely spread. Mineralization
points and ancient Chinese pits were discovered previously, and six rock-chip
samples were collected by the previous license holder. The unverified samples
show gold grades ranging from 0.04 to 0.21 g/t in 2 samples, and a copper grade
of 0.47% to 2.2 % in 4 samples. These results were recorded in previous
exploration reports and have not been verified by the Company.

Mineral Properties, China

The Company intends to setup joint venture companies to hold exploration permits
to explore and develop mineral properties in the People's Republic of China. At
this time, the Company has not entered into any joint ventures, received or
contributed any funds to any joint ventures.

At this time. the Company has signed three letters of intent (the "Letters of
Intent") to enter into joint ventures for gold exploration and potential
development on a choice of properties located in Shaanxi Province, China (the
"Permits"). The Letters of Intent anticipate that the Company will contribute
cash to the joint ventures, while the other parties to the joint ventures would
contribute permits for exploration and development on an aggregate of up to
twenty (20) exploration license areas. The government of China owns the
properties to which the Permits relate. The Permits grant the right to the
mineral resources found below the surface of the properties. The Letters of
Intent contemplate two phases of activities: the exploration phase and the
development phase. The development phase is contingent on, and will not proceed
unless there are, positive results from the exploration phase.

Letters of Intent

On February 24, 2004, the Company's wholly-owned subsidiary Dragon Minerals Inc.
("DMI") entered into a Letter of Intent with the Bureau of Geology and Mineral
Exploration & Development of Shaanxi Province ("Bureau") in China to form a
Sino-Foreign cooperative joint venture companies 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.

On March 1, 2004, DMI entered into a Letter of Intent with the Northwest Geology
and Exploration Bureau for Nonferrous Metals Party ("Northwest") 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
Northwest would contribute the Permit and their previous exploratory findings.

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 ("Hanzhong") to form Sino-Foreign cooperative joint venture
companies 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 Hanzhong would contribute the
Exploration Permit and their previous exploratory findings.

The Company has not currently entered into any definitive agreements or joint
ventures in regard to the above mentioned properties in China. The Company is
conducting an evaluation of those properties and discussing potential terms of
cooperation with the Bureau, Northwest and Hanzhong regarding contributions of
the properties and the Company's contribution of cash. Currently, the joint
ventures have not been formed, the Company has not raised or contributed any
cash, none of the properties have been contributed, and there is no program of
exploration and development. In the event of the formation of joint venture
companies, the Company will be required to contribute cash to the joint ventures
on a continuing basis, however, the amount of continued capital commitment
required by the Company is not known at this time.

ITEM 3.  LEGAL PROCEEDINGS

The Company is not aware of any legal proceedings, pending or threatened, which
it is a party to.
                                       6
<PAGE>

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

Since the acquisition of Dragon Minerals Holdings Inc., and Subsidiaries and
adoption of our current business plan in July 2004, our Common Stock has been
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 July 2004

                                                        High        Low

Year Ended March 31, 2005

         Fourth Quarter..............................   $1.37       $0.58
         Third Quarter...............................    0.83        0.59
         Second Quarter*.............................    1.00        0.60
         *The quarter ending September 30, 2004

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 June 30, 2005, the closing bid price of the Common Stock was $0.24.

As of June 30, 2005, we estimate that there were in excess of 300 beneficial
holders of our Common Stock.

During the fourth quarter of the year ended March 31, 2005, we issued 399,930
shares of common stock to various non-U.S. investors for $199,965. The issuances
of shares between March 2003 and August 2003 were made exclusively to foreign
persons with no U.S. selling efforts pursuant to the provisions of Regulation S.

We have not paid dividends in the past and we intend to retain earnings, if any,
and will not pay cash dividends in the foreseeable future. Any future
determination to pay cash dividends will be at the discretion of the board of
directors and will be dependent upon our financial condition, results of
operations, capital requirements, general business conditions and such other
factors as the board of directors may deem relevant.


ITEM 6.  MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

This report contains forward looking statements within the meaning of Section
27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act
of 1934. These forward looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical results or anticipated results, including those set forth under "RISK
FACTORS" in this Management's Discussion and Analysis or Plan of Operation" and
elsewhere in this report. The following discussion and analysis should be read
in conjunction with the Company's financial statements and notes thereto
included in "Item 7. Financial Statements."

PLAN OF OPERATION

In Mongolia, the Company intends to further explore some or all of its
properties over the next twelve months. The Company is preparing a revised
exploration plan to continue exploring some or all of its properties in Mongolia
within the next twelve months. The Company can give no assurances that the
Company will be able to raise sufficient funding to carry out the exploration
activities in any of these areas, that the Company will explore the properties
covered by the licenses, or if explored that the properties will contain any
mineral reserves. The Company anticipates that its exploration activities in
Mongolia over the next 12 months would consist of three steps:

i)     Location or  confirmation  of targets and anomalies - Geochemical
       sampling, detailed  geological  mapping and geophysical
       survey (IP or magnetic survey).
ii)    Verification of anomalies - Trenching and Sampling
iii)   Testing of targets and anomalies - Pilot drilling and further
       geological and geophysical surveys.
                                       7
<PAGE>

In China, the Company has entered into three (3) letters of intent that could
eventually lead to the formation of Sino-Foreign Joint Venture Companies. The
Company is in continued negotiations with the other parties to the letters of
intent. Currently, the joint ventures have not been formed, the Company has not
contributed any cash, none of the properties have been contributed, and there is
no program of exploration and development on the referred properties. There can
be no assurance that the Company will enter into any definitive agreements or
joint ventures, that the Company will make any cash contributions or that other
parties to the letters of intent will contribute any property. If joint venture
companies were to be formed within the next 12 months, the Company anticipates
the need for a substantial amount of additional financing. Additionally, the
Company can give no assurance that this substantial amount of additional
financing will be available on favorable terms, if at all.

In addition, the Company anticipates acquiring rights to explore and develop
other properties in other regions as viable opportunities arise, all of which
would demand additional funding.

Taking into account the aforementioned factors, the Company can satisfy its cash
requirements for the next six (6) months. The Company believes it can continue
for approximately six (6) months if no additional financing is raised, due to
the $200,000 the Company has raised throughout the last three (3) months in
connection with offshore subscription agreements, and will require approximately
$500,000 of additional financing to continue its activities for the next twelve
(12) months, which does not include any additional amounts which would be
required for the formation of joint ventures in China, which the Company
anticipates being substantial. There can be no assurance that any new capital
will be available to the Company or that adequate funds will be sufficient for
the Company operations, whether from the Company's financial markets, or other
arrangements will be available when needed or on terms satisfactory to the
Company. The Company does not have any commitments from its officers, directors
or affiliates to provide funding. The failure of the Company to obtain adequate
financing may result in the Company having to delay, curtail, scale back or
forgo its operations.

The Company does not expect to purchase any plant or significant equipment
during the next twelve months. The Company will heavily rely on contract labor
to conduct its operations and does not expect a significant change in the number
of employees during the next twelve months.

OFF-BALANCE SHEET ARRANGEMENTS

The company does not currently participate in any off balance sheet
arrangements.

ITEM 7.  FINANCIAL STATEMENTS

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


                                                                    Index

Report of Independent Registered Public Accounting Firm...............F-1

Consolidated Balance Sheets...........................................F-2

Consolidated Statements of Operations.................................F-3

Consolidated Statements of Cash Flows.................................F-4

Consolidated Statement of Stockholders' Equity........................F-5

Notes to the Consolidated Financial Statements........................F-6


                                       8
<PAGE>



             Report of Independent Registered Public Accounting Firm


To the Board of Directors and Stockholders of
Dragon Gold Resources, Inc.


We have audited the accompanying balance sheet of Dragon Gold Resources, Inc.
(the "Company") as of March 31, 2005, and the related statements of operations,
stockholders' equity and cash flows for the year then ended. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

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

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Dragon Gold Resources, Inc. as
of March 31, 2005, and the results of its operations and its cash flows for the
year then ended in conformity with accounting principles generally accepted in
the United States 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, 2005 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.



Houston, Texas
June 21, 2005



                                       F-3

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

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

<TABLE>

                                                                                 March 31,             March 31,
                                                                                   2005                 2004
                                                                                    $                     $
<S>                                                                             <C>                   <C>

Assets

Current Assets

Cash                                                                              11,280              101,029
Prepaid expenses and deposits                                                      7,806                    -
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

Total Current Assets                                                              19,086              101,029

Intangible Assets (Note 3)                                                        12,813                    -
Property and Equipment (Note 4)                                                    4,536                    -
-----------------------------------------------------------------------------------------------------------------

Total Assets                                                                      36,435              101,029
-----------------------------------------------------------------------------------------------------------------


Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable                                                                  17,484                1,478
Accrued liabilities                                                               16,899               10,176
Due to related parties (Note 6(a))                                                 1,153                6,388
-----------------------------------------------------------------------------------------------------------------

Total Current Liabilities                                                         35,536               18,042
-----------------------------------------------------------------------------------------------------------------

Commitments (Note 1 and 10)

Stockholders' Equity

Common Stock,
500,000,000 common shares authorized with a par value of $0.001,
51,321,724 common shares issued and outstanding (2004 - 50,396,794 shares)        51,322               50,397

Additional Paid In Capital                                                       643,262               60,472

Stock Subscription Receivable                                                   (100,000)                   -

Deferred Compensation                                                            (17,188)                   -

Deficit Accumulated During the Exploration Stage                                (576,497)             (27,882)
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

Total Stockholders' Equity                                                           899               82,987
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

Total Liabilities and Stockholders' Equity                                        36,435              101,029
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

</TABLE>


<PAGE>



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

                                                                                      Accumulated From
                                                           Year Ended              December 13, 2000 (Date
                                                                                     of Inception) to
                                                  ---------------------------     --------------------------
                                                   March 31,         March 31,           March 31,
                                                      2005             2004                 2005
                                                       $                 $                   $
<S>                                             <C>                <C>                <C>

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

Expenses

   Accounting and audit                           27,720            8,600                   39,320
   Depreciation and amortization                   2,979                -                    2,979
   Consulting (Note 6(b))                        132,416            1,200                  137,616
   Foreign exchange                                1,959              139                    2,173
   General and administrative                     18,379            3,132                   23,488
   Legal and organizational                       47,869            4,598                   53,437
   Mineral property costs                        200,803                -                  200,803
   Rent and utilities                             28,844                -                   28,844
   Travel and promotion                           88,646               24                   88,837
-----------------------------------------------------------------------------------------------------

Total Expenses                                   549,615           17,693                   577,497
-----------------------------------------------------------------------------------------------------

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

Net Loss for the Period                         (548,615)        (17,693)                 (576,497)
-----------------------------------------------------------------------------------------------------


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

Weighted Average Shares Outstanding           53,040,000     47,145,000
-----------------------------------------------------------------------------------------------------
</TABLE>



                                       F-4


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

<PAGE>

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

<TABLE>
                                                                         Accumulated From
                                                                              Year Ended                 December 13, 2000
                                                                  ------------------------------------
                                                                                                      (Date of Inception) to
                                                                  ------------------------------------
                                                                       March 31,          March 31,           March 31,
                                                                         2005              2004                2005
                                                                          $                 $                   $
<S>                                                                   <C>                 <C>                <C>


Cash Flows to Operating Activities

Net loss for the period                                                    (548,615)          (17,693)         (576,497)

Adjustments to reconcile net loss to net cash used
In operating activities
   Depreciation and amortization                                              2,979                 -             2,979
   Deferred compensation                                                    (17,188)                -           (17,188)
   Shares issued to settle expenses                                               -                 -             5,070
   Shares issued for services                                                18,750                 -            18,750
   Shares issued for mineral property costs                                 165,000                 -           165,000

Change in operating assets and liabilities
(Increase) decrease in deposits and prepaid expenses                         (7,806)               32            (7,806)
Increase in accounts payable and accrued liabilities                         22,729             8,654            34,383
Increase in amounts due to related parties                                   (5,235)              680            (3,883)
-------------------------------------------------------------------------------------------------------------------------------
-                                                                                                   -
Net Cash Used in Operating Activities                                      (369,386)           (8,327)         (379,192)
-------------------------------------------------------------------------------------------------------------------------------

Cash Flows from Investing Activities

      Purchase of property and equipment                                     (5,328)             -               (5,328)
      Purchase of intangible assets                                         (15,000)             -              (15,000)
-------------------------------------------------------------------------------------------------------------------------------

Net Cash Used in Investing Activities                                       (20,328)             -              (20,328)
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------

Cash Flows from Financing Activities

Proceeds from related party loan                                                  -            12,745            12,745
Proceeds from issuance of common shares                                     299,965            96,524           398,055
-------------------------------------------------------------------------------------------------------------------------------

Net Cash Provided by Financing Activities                                   299,965           109,269           410,800
-------------------------------------------------------------------------------------------------------------------------------

Increase (decrease) in cash                                                 (89,749)          100,942            11,280

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

Cash - end of period                                                         11,280           101,029            11,280
-------------------------------------------------------------------------------------------------------------------------------

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

Non-Cash Financing Activities

   Issuance of common stock for asset purchase                                    -                 -               100
   Issuance of common stock for payment of expenses                               -                 -             4,970
   Issuance of common stock for acquisition of subsidiary                   165,000                 -           165,000
   Issuance of common stock for settlement of related party loans                 -             7,708             7,708
-------------------------------------------------------------------------------------------------------------------------------

</TABLE>



<PAGE>



Dragon Gold Resources, Inc.
(Formerly Folix Technologies, Inc.)
(A Development Stage Company)
Statement of Stockholders' Equity
From December 13, 2000 (Date of Inception) to March 31, 2005
(expressed in U.S. dollars)

<TABLE>

                                                                                                       Deficit
                                                           Additional                                Accumulated
                                                            Paid In       Stock                       During the
                                                            Capital   Subscription     Deferred      Development
                                      Shares      Amount   (Discount)  Receivable    Compensation       Stage         Total
                                         #           $         $            $              $              $             $
<S>                                 <C>          <C>        <C>        <C>            <C>             <C>           <C>

Balance - December 13, 2000 (Date
of Inception)                                  -          -         -          -               -                -           -

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cancellation 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          -               -                -     165,000

Common stock issued for cash             799,930        800   399,165  (100,000)               -                -     299,965

Stock issued for services                 25,000         25    18,725          -       (17,188)                 -       1,562

Net loss for the year                          -          -         -          -               -         (548,615)   (548,615)
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------

Balance - March 31, 2005              51,321,724     51,322   643,262    (100,000)      (17,188)         (576,497)        899
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>





1.       Development Stage Company

     Dragon Gold Resources, Inc. (the "Company") was incorporated in the State
     of Nevada, U.S.A. on December 13, 2000 under the name "Folix Technologies,
     Inc." Effective June 14, 2004, the Company changed its name to Dragon Gold
     Resources, Inc. The Company's principal business was the development of a
     Linux based application server and thin client computing systems. During
     the 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 mineral property acquisition and exploration in China.
     Refer to Note 5.

     The Company was previously in the development stage as defined by Statement
     of Financial Accounting Standard ("SFAS") No.7 "Accounting and Reporting by
     Development Stage Enterprises" related to its Linux based business. The
     Company changed to the exploration stage during the year ended March 31,
     2005 with the acquisition of its interest in Dragon Minerals Holdings, Inc.
     The Company has not presently determined whether its properties contain
     mineral reserves that are economically recoverable. These financial
     statements have been prepared on a going concern basis, which implies the
     Company will continue to realize its assets and discharge its liabilities
     in the normal course of business. The Company has never generated revenues
     since inception and 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
     2005, the Company has accumulated losses of $576,497 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,  and are expressed in US dollars.  These financial
         statements  include the accounts of the Company and its wholly-owned
         subsidiary,  Dragon Minerals Holdings Inc. ("DMHI"). DMHI owns four
         wholly-owned  subsidiaries,  Dragon Minerals, Inc.,  Dragon   Minerals-
         Shiquan  Inc.,  Dragon  Minerals-Taiyu  Inc.,  and  Dragon  Minerals-
         Xunyang  Inc.  All  intercompany transactions and balances have been
         eliminated in consolidation.

(b)      Use of Estimates

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

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

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

<PAGE>


2.       Summary of Significant Accounting Policies (continued)

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

         The Company computes net income (loss) per share in accordance with
         SFAS No. 128, "Earnings per Share" (SFAS 128). SFAS 128 requires
         presentation of both basic and diluted earnings per share (EPS) on the
         face of the income statement. Basic EPS is computed by dividing net
         income (loss) available to common shareholders (numerator) by the
         weighted average number of shares outstanding (denominator) during the
         period. Diluted EPS gives effect to all 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 purchased 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 equivalents, prepaid
         expenses, deposits, accounts payable, accrued liabilities, and due to
         related parties were estimated to approximate their carrying values due
         to the immediate or short-term maturity of these financial instruments.
         Virtually all of the Company's assets and liabilities are giving rise
         to significant exposure to market risks from changes in foreign
         currency rates. The financial risk is the risk to the Company's
         operations that arise from fluctuations in foreign exchange rates and
         the degree of volatility of these rates. Currently, the Company does
         not use derivative instruments to reduce its exposure to foreign
         currency risk.

(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, 2005 the Company had no
         items that represent comprehensive loss and, therefore, has not
         included a schedule of comprehensive loss in the financial statements.

(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 acquisition and exploration costs are expensed as
         incurred. When it has been determined that a mineral property can be
         economically developed as a result of establishing proven and probable
         reserves, the costs incurred to develop such property, are capitalized.
         Such costs will be amortized using the units-of-production method over
         the estimated life of the probable reserve. 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.
<PAGE>

(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 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

         The Company accounts for its stock compensation arrangements under the
         provisions of Accounting Principles Board ("APB") No. 25 "Accounting
         for Stock Issued to Employees". The Company provides disclosure in
         accordance with the disclosure-only provisions of Statement of
         Financial Accounting Standard ("SFAS") No. 123 "Accounting for
         Stock-Based Compensation".

(o)      Recent Accounting Pronouncements

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

         In December 2004, the FASB issued SFAS No. 123R, "Share Based Payment",
         which requires the compensation cost related to share-based payments,
         such as stock options and employee stock purchase plans, recognized in
         the financial statements based on the grant date fair value of the
         award. Public entities (other than those filing as small business
         issuers) will be required to apply SFAS 123R as of the first interim or
         annual reporting period that begins after June 15, 2005. Public
         entities that file as small business issuers will be required to apply
         SFAS 123R in the first interim or annual reporting period that begins
         after December 15, 2005. The effect on the Company's results of
         operations or financial position from adoption of this standard has not
         yet been determined.


3.   Intangible Assets
<TABLE>
                                                                       March 31,         March 31,
                                                                          2005             2004
                                                     Accumulated      Net Carrying     Net Carrying
                                      Cost          Amortization         Value             Value
                                        $                 $                $                 $

         Website development costs    15,000            2,187            12,813                -
         ----------------------------------------------------------------------------------------------
<S>                                   <C>              <C>             <C>              <C>



4.   Property and Equipment
                                                                       March 31,         March 31,
                                                                          2005             2004
                                                     Accumulated      Net Carrying     Net Carrying
                                      Cost          Amortization         Value             Value
                                        $                 $                $                 $

         Computer equipment            5,328              792             4,536                -
         ----------------------------------------------------------------------------------------------
</TABLE>


5.       Acquisition of Business

     On July 15, 2004, the Company purchased 100% of the issued and outstanding
     common shares of Dragon Minerals Holdings Inc. ("DMHI"), a private British
     Virgin Islands company. DMHI owns 100% of the issued and outstanding common
     shares of Dragon Minerals Inc. ("DMI"), a private British Virgin Islands
     company. Accordingly, the results of operations for DMHI have been included
     in the accompanying consolidated financial statements from the date of
     acquisition. DMI is involved in mineral property acquisition and
     exploration in China. The purchase price was $184,579 which included the
     issue of 16,500,000 common shares at a fair value of $165,000, acquisition
     costs of $12,235 and negative book value of DMHI of $7,344. The Company
     used the purchase method of accounting for this acquisition and the
     purchase price was allocated to mineral property costs through a charge to
     operations.

6.        Related Party Transactions

a)        The amounts due to related parties of $1,153 represents expenses of
          $159 (March 31, 2004 - $6,388) paid on behalf of the Company by a
          former Director and $994 paid on behalf of the Company by current
          directors. The amounts due are non-interest bearing, unsecured and
          have no specific terms of repayment.

b)        During the year ended March 31, 2005, the Company paid $95,000 (2004 -
          $1,200) for consulting services performed by a director of the
          Company, $8,000 for consulting services performed by a former director
          of the Company and $27,853 for consulting services provided by a
          company owned by a significant shareholder of the Company.

c)        On July 19, 2004 the Company sold to a former director, all rights
          related to the Linux based application server and thin client
          computing system business plan in consideration for $1,000, which is
          included in the statement of operations as a gain on sale of assets.

7.        Mineral Properties

(a)       On February 24, 2004, the Company's wholly-owned subsidiary Dragon
          Minerals Inc. ("DMI") entered into a Letter of Intent with the Bureau
          of Geology and Mineral Exploration & Development of Shaanxi Province
          ("Bureau") in China to form a Sino-Foreign cooperative joint venture
          companies 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.

(b)       On March 1, 2004, DMI entered into a Letter of Intent with the
          Northwest Geology and Exploration Bureau for Nonferrous Metals Party
          ("Party") in China to form a Sino-Foreign cooperative joint venture
          company 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.

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

(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
          Sino-Foreign cooperative joint venture companies 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.

8.        Common shares

(a)       On March 30, 2005, the Company  issued 200,000 shares of common stock
          at $0.50 per share for cash proceeds of $100,000,  which was received
          on April 1, 2005.
<PAGE>

(b)       On March 3, 2005, the Company issued 25,000 shares of common stock at
          $0.75 per share in consideration for consulting services rendered and
          to be rendered. These shares were valued based upon the closing price
          of the Company's stock.

(c)       On January 31, 2005, the Company issued 199,930 shares of common stock
          at $0.50 per share for cash proceeds of $99,965. (d) On September 6,
          2004, the Company cancelled 16,400,000 shares of common stock owned by
          a former Director. (e) On August 16, 2004, the Company issued 400,000
          shares of common stock at $0.50 per share for cash proceeds of
          $200,000. (f) On July 15, 2004, the Company acquired 100% of the
          issued and outstanding common stock of Dragon Minerals Holdings Inc.,
          in exchange for 16,500,000 shares of common stock of the Company.
          Refer to Note 5.

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

9.        Commitments

(a)       During the year ended March 31, 2005, the Company entered into a
          consulting agreement ("the Agreement") with a company owned by a
          significant shareholder of the Company, for management and
          geological services. The Agreement is for a period of one year
          commencing October 1, 2004 at CDN$5,625 per month. Either side can
          terminate the Agreement with 60 days written notice. This
          Agreement was replaced on April 1, 2005 by a consulting agreement
          which increases the monthly fee to CDN$6,875 per month. Refer to
          Note 12(d).

(b)       During the year ended March 31, 2005, the Company entered into a
          consulting agreement ("the Agreement") with an investor relations
          company. The Agreement was for a period of three months commencing
          December 1, 2004 at CDN$10,000 per month.

(c)       On January 20, 2005,  the Company  entered into an option  agreement
          to acquire a 100%  interest,  subject to a 2% net smelter royalty, in
          certain mining claims located in Mongolia. Refer to Note 7 (c).

(d)       On March 3, 2005, the Company entered into an agreement to issue
          50,000 shares of common stock to an individual in exchange for
          consulting services to be rendered over a two year period. Upon
          execution of the agreement, the Company issued 25,000 shares of
          common stock and will issue the remaining 25,000 shares within 30
          days after the end of the first year of service.

10.       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 $410,000, 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.

     The composition of deferred tax assets and liabilities and the related tax
effects at March 31, 2005 and 2004 are as follows:


                                                March 31,      March 31,
                                                  2005           2004
                                                    $              $

      Deferred tax assets:
         Net operating losses                     139,378         9,520
         Valuation allowance                    (139,378)        (9,520)
   ----------------------------------------- ------------- ----------------
   ----------------------------------------- ------------- ----------------

      Total deferred tax assets                        --            --
   ----------------------------------------- ------------- ----------------
   ----------------------------------------- ------------- ----------------

      Deferred tax liability                           --            --
   ----------------------------------------- ------------- ----------------
   ----------------------------------------- ------------- ----------------

      Net deferred tax asset (liability)               --            --
   ----------------------------------------- ------------- ----------------
<PAGE>



     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% were applied to pre-tax loss for the years ended
     March 31, 2005 and 2004 is as follows:
<TABLE>

                                                                March 31, 2005             March 31, 2004
                                                                   Amount        %           Amount         %
<S>                                                             <C>            <C>         <C>           <C>

         Provision (benefit) for income tax at federal
            statutory rate                                     $(186,529)     (34.0)         $(6,016)    (34.0)
         Increase (decrease) in valuation allowance               129,858       23.7            6,016      34.0
         Non-deductible mineral property expense                   56,100       10.2                -         -
         Non-deductible compensation expense                          571        0.1                -         -
----------------------------------------------------------     ------------   -------        ---------    ------

                                                                  $     -          -         $      -         -
                                                               ============   =======        =========    ======
</TABLE>

11.      Subsequent Events

a)       On May 12, 2005, the Company entered into a five-year employment
         agreement for the position of Chairman Non-Executive (the "Employee")
         for the provision of services for 52 days per year in consideration for
         an annual salary of $60,000. The Company will pay $500 per day for each
         day in excess of 52 days. The Employee will receive 1,000,000 shares of
         common stock of the Company upon execution of the agreement. The
         Company will also grant 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.

b)       On April 1, 2005, the Company received the proceeds from the stock
         subscription receivable of $100,000.

c)       On May 17, 2005, the Company entered into a stock subscription
         agreement whereby the Company will issue 400,000 shares of common stock
         at $0.25 per share for cash proceeds of $100,000.

d)       On April 1, 2005, the Company entered into a consulting agreement ("the
         Agreement") with a company owned by a significant shareholder of the
         Company, for management and geological services. The Agreement is for a
         period of one year commencing April 1, 2005 at CDN$6,875 per month.
         This Agreement replaces in full a previous agreement for CDN$5,625 per
         month signed on October 1, 2004 (Refer to Note 10(a)). Either side can
         terminate the Agreement with 60 days written notice

<PAGE>

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

<PAGE>



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

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


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

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

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

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

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


/s/  "Manning  Elliott"


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



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

                                                                      March 31,            March 31,
                                                                         2004                 2003
                                                                     -----------          -----------
<S>                                                                  <C>                  <C>

Assets

Current Assets

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

Total Assets                                                          101,029                    183


Liabilities and Stockholders' Equity (Deficit)

Current Liabilities

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

Total Current Liabilities                                              18,042                  3,736

Commitments (Note 1)

Stockholders' Equity (Deficit)

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

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

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


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


Total Liabilities and Stockholders' Equity                           101,029                     183

</TABLE>




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

<PAGE>

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

<TABLE>

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

Revenue                                     -                     -                     -

Expenses

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

Net Loss Per Share - Basic and Diluted      -                     -

Weighted Average Shares Outstanding47,145,000            46,452,000
</TABLE>


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


<PAGE>


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


<TABLE>

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

Cash Flows to Operating Activities

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

Adjustments to reconcile net loss to cash

Expenses settled with issuance of stock              -                  -                       5,070

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

Cash Flows from Financing Activities

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

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

Increase in cash                               100,942                19                      101,029

Cash - beginning of period                          87                68                            -

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

Non-Cash Financing Activities

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

Supplemental Disclosures

Interest paid                                        -                 -                           -
Income tax paid                                      -                 -                           -


</TABLE>

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

<PAGE>

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


<TABLE>


                                                                                                    Deficit
                                                                              Additional          Accumulated
                                                                              Paid In             During the
                                                                              Capital             Development
                                                             Shares        Amount     (Discount)    Stage          Total
<S>                                                         <C>           <C>         <C>         <C>              <C>


Balance - December 13, 2000 (Date of Inception)                   -             -           -          -               -

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

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

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

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


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

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

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


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

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


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

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

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

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


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

</TABLE>

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

<PAGE>


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


1.     Development  Stage  Company

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

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

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

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


2.  Summary  of  Significant  Accounting  Policies

(a)  Basis  of  Presentation

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

(b)  Use  of  Estimates

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

(c)  Year  End

     The Company's fiscal year end is March 31.

(d) Cash  and  Cash  Equivalents
<PAGE>


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

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

(e) Foreign  Currency  Translation

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

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

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

(g)     Financial  Instruments

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

(h)     Comprehensive  Loss

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

(i)     Recent  Accounting  Pronouncements

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

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

3. Common shares

     (a) On June 14, 2004, the Company completed a forward split of its common
stock on a seven for one basis whereas every share of fully paid common stock
issued and outstanding immediately prior to the forward split was changed into
seven new shares of the Company. All share amounts have been retroactively
adjusted for all periods presented. The increase in common shares was accounted
for as a reduction in Additional Paid in Capital for all periods presented.
Additionally, the authorized common shares were increased to 500,000,000 shares
of common stock and the par value was re-authorized at $.001 per share of common
stock.

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

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

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


4.     Related Party Transactions/Balances

(a) Due to director

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

(b) Due to stockholder

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

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

(c) Transactions with director

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

(d) Due to affiliated company

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

(e) Common shares issued to shareholders

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

5. Income Tax

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

5. Income Tax (continued)

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

                                           2004           2003
               Net Operating Loss         17,693          1,244

               Statutory Tax Rate             34%            34%

               Effective Tax Rate              -              -

               Deferred Tax Asset          6,016            423

               Valuation Allowance        (6,016)          (423)

               Net Deferred Tax Asset          -              -



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

6.  Subsequent Event

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


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

On April 8, 2005, the Registrant 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 Registrant's Board of Directors participated in and approved the decision to
change independent accountants.

In connection with its audit for the most recent fiscal year 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.

During the most recent fiscal year and the interim period until the date of
dismissal , there have been no reportable events (as defined in Regulation S-K
Item 304 (a)(1)(v)).

The Registrant 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.

New independent accountants

On April 8, 2005, the Registrant engaged Ham, Langston, & Brezina, L.L.P. to
audit its financial statements for the year ended March 31, 2005. During the two
most recent fiscal years and through March 31, 2005, the Registrant has 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 Registrant's
financial statements, and no written report or oral advice was provided to the
Registrant 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.

In July 2004, the Company's management offices were relocated to London, England
and the Company significantly reduced its affiliation with Vancouver, BC. In
addition, the Company's legal counsel is headquartered in Houston, Texas.
Considering these facts, the Company selected a Certifying Accounting Firm in
Houston, Texas to act as its new independent accountants.

                                       30
<PAGE>

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

It is management's responsibility to establish and maintain adequate internal
control over financial reporting.

As of the end of the year covered by this report, we have evaluated the
effectiveness of the design and operation of our disclosure controls and
procedures under the supervision of and with the participation of our Chief
Executive Officer ("CEO") and Chief Financial Officer ("CFO"). Based on this
evaluation, our management, including our CFO/CEO, concluded that our disclosure
controls and procedures were effective, and that there have been no significant
changes in our internal controls or in other factors that could significantly
affect internal controls subsequent to the evaluation.

 During the period covered by this report there have been no changes in internal
control over financial reporting.

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS

The following table sets forth the names and ages of the present executive
officers and directors of the Company and the positions held by each.

Name                       Age              Title

Johannes Petersen          32       Chief Executive Officer, Chief Financial
                                    Officer, and Director
Xiaojun "Albert" Cui       33       Director

Each of the directors has been elected to serve until the next annual meeting of
the directors by the shareholders or until their respective successors have been
duly elected and shall have qualified.

Johannes Petersen was elected Chief Executive Officer, Chief Financial Officer,
and Director on July 15, 2004. Mr. Petersen holds an MBA from the London
Business School (England) with a concentration in Finance, and a BSc in
Economics from Universidad del Pacifico (Peru). He has previously covered a
variety of positions, ranging from fixed income and currency trading, to
managerial roles. He has also worked in business development and business
planning for private and public companies, with an emphasis in the resources
industry. From April of 1999 until July of 2001 Mr. Petersen was Managing
Director of a commodity export brokerage firm in Peru. From 2001 through 2003,
Mr. Petersen attended business school in London. In August 2003 Mr. Petersen
performed independent consulting and business planning for natural resources
industry companies and other organizations.

Xiaojun "Albert" Cui was elected as a Director on July 15, 2004. Mr Cui holds a
BSc in Geology from China University of Geosciences - Wuhan, an MSc from Beijing
University and a PhD in Geology from University of Missouri - Columbia. Mr Cui
has ample experience in geological surveys, mineral exploration and
exploitation. He has also conducted front-edge geological research in various
geological fields and has written numerous publications in first level
international scientific journals. From 2002 through 2004, he worked as a
postdoctoral research fellow for the University of British Columbia in Canada.
From 1997 through 2002, he worked as a research assistant at the University of
Missouri - Columbia, USA.


ITEM 10. EXECUTIVE COMPENSATION

Executive Compensation

Summary Compensation Table

The following table sets forth information concerning cash and non-cash
compensation paid or accrued for services in all capacities to the Company
during the year ended March 31, 2005 of each person who served as the Company's
Chief Executive Officer during fiscal 2004 and the four other most highly paid
executive officers whose total annual salary and bonus exceeded $100,000 during
the fiscal year ended March 31, 2005 and 2004 (the "Named Officers").
<TABLE>


                                                                      Long-Term Compensation
                       Annual Compensation Awards Payouts
  Name and                                                     Restricted    Securities
  Principal                                    Other Annual       Stock      Underlying    LTIP          All Other
  Position     Year*     Salary      Bonus     Compensation      Awards        Options      Payouts    Compensation
-------------- ------- ------------ -------- ----------------- ------------ -------------- ---------- ----------------
<S>            <C>        <C>        <C>      <C>              <C>             <C>           <C>       <C>

Johannes
Petersen         2005      $95,000        -                 -            -              -          -                -
                                 -        -                 -            -              -          -                -
Xiaojun Cui      2004      $27,853        -                 -            -              -          -                -
                 2005
</TABLE>

*Represents the fiscal year ended March 31
                                       31
<PAGE>

ITEM 11.          SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

There are no compensation plans, or individual compensation arrangements of the
small business issuer as of March 31, 2005 and 2004.

As of March 31, 2005 Mr. Johannes Petersen owned 1,000,000 shares of common
stock. As of March 31, 2005, Mr Xiaojun "Albert" Cui owned 1,500,000 shares of
common stock.

As of March 31, 2005, Mr Raoul Tsakok owned 11,500,000 shares of common stock
equivalent to 21.6% of the outstanding common stock.


ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The company has a management consulting agreement in place with Sagit
Investments Management Inc for managerial and geological consulting services.
Sagit Investment Management Ltd is a company owned by Mr Raoul Tsakok a major
shareholder of the Company. For the year ended March 31, 2005, the company paid
$27,853 for consulting services provided by this company.

The Company owes, to related parties, $1,153 representing expenses of $159
(March 31, 2004 - $6,388) paid on behalf of the Company by a former Director and
$994 paid on behalf of the Company by current directors. The amounts due are
non-interest bearing, unsecured and have no specific terms of repayment.

During the year ended March 31, 2005, the Company paid $95,000 for consulting
services performed by a director of the Company, and $8,000 for consulting
services performed by a former director of the Company.

On July 19, 2004 the Company sold to a former director, all rights related to
the Linux based application server and thin client computing system business
plan in consideration for $1,000, which is included in the statement of
operations as a gain on sale of assets.

No other relationships existed and no other related transactions occurred that
require disclosure under Reg. ss.228.404.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

(a)        Exhibits

3.1          Articles  of  Incorporation    (1)

3.2          Certificate  of  Amendment     (2)

3.3          By-Laws  (1)

10.1         Business  Plan  Purchase  Agreement  (1)

16.1         Letter  from  Manning  Elliott,
             Chartered  Accountant   (3)

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

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

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

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

(3)  Filed  as  Exhibits 16.1  and  16.2 to report on Form 8-K filed on April 8,
     2005,  and  incorporated  herein  by  reference.

*    Filed  herewith  as  an  exhibit.

The Company filed the following reports on Form 8-K during the last quarter of
the year ended March 31, 2005:

January 25, 2005 - Entry into a material definitive agreement - On January 20,
2005, the Company entered into an Option Agreement with Jaroslav Ruza, to
purchase an option to acquire a 100% right, title and interest in the Optionor's
mining claims.

February 4, 2005 - Unregistered Sales of Equity Securities - On January 31, 2005
the Company agreed to issue 199,930 restricted shares of the Company's common
stock to Paramount, in a transaction not registered under the Securities Act of
1933. The Company claims an exemption from registration afforded by Regulation
S.

                                       32
<PAGE>

March 9, 2005 - Other Events - Effective as of March 3, 2005, the Company
entered into a consulting agreement with Mr. Minghe Chen. Mr. Minghe Chen for a
two year period. Compensation is 50,000 shares of Company stock vesting pro rata
over the life of the contract.

March 21, 2005 - Other Events - On March 15, 2005 Dragon Gold Resources, Inc.
(the "Company") agreed to form a Sino-foreign joint venture company to carry out
gold exploration and development with the Hanzhong Geological Brigade of the
Bureau of Geology & Mineral Exploration of Shaanxi Province, China (the
"Brigade"). Under this agreement, the Company will contribute cash for the
exploration and development of properties contributed by the Brigade.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

On April 8, 2005, the Company engaged Ham, Langston, & Brezina, LLP in Houston,
Texas to audit its financial statements for the year ended March 31, 2005. For
their auditing services, the Company paid US$9,000. The previous annual audit
had been conducted by Manning Elliot Chartered Accountants in Vancouver, Canada.
The fee for audit services paid to Manning Elliot Chartered Accountants for the
year ended March 31, 2004 was $3,000.


                                   SIGNATURES

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


                                   DRAGON GOLD RESOURCES, INC.


                                   By:
                                   Johannes Petersen
                                   Executive Officer & Chief Financial Officer
Dated: July 14, 2005

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

Name                       Title                              Date

Johannes Petersen          Chief Executive Officer            July 14, 2005
                           Chief Financial Officer &
                           Director

                                       33
<PAGE>



                                 CERTIFICATIONS

I, Johannes Petersen, certify that:

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

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

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

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

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

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

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

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

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

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

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

Dated: July 14, 2005

By: /s/ Johannes Petersen
Johannes Petersen
Chief Executive Officer
Chief Financial Officer
                                       34
<PAGE>



CERTIFICATION  OF CHIEF  EXECUTIVE  OFFICER AND CHIEF  FINANCIAL  OFFICER
PURSUANT TO 18 U.S.C.  SECTION 1350, AS ADOPTED  PURSUANT TO
SECTION 906 OF TEHE SARBANES-OXLEY ACT OF 2002
--------------------------------------------------------------------------------
I, Johannes Petersen, certify, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Annual
Report of Dragon Gold Resources, Inc. on Form 10-KSB for the annual period ended
March 31, 2005 fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934 and that information contained in such Form
10-KSB fairly presents in all material respects the financial condition and
results of operations of Dragon Gold Resources, Inc.


By: /s/ Johannes Petersen
----------------------------
Name: Johannes Petersen
Title: Chief Executive Officer
& Chief Financial Officer


July 14, 2005




                                       35