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| Nevada                   |   | 98-0418754                           |
|--------------------------|--------|--------------------------------------|
| (State of incorporation) |   | (I.R.S. Employer Identification No.) |

| Large Accelerated Filer | o | Accelerated Filer         | o |
|-------------------------|---|---------------------------|---|
| Non-Accelerated Filer   | o | Smaller Reporting Company | x |

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CON

|    |                                                                                        | PAGE   |
|--------------|---------------------------------------------------------------------------------------------|--------|
|         |                                                                                        |   |
| PART I       | FINANCIAL INFORMATION                                                                       | 1      |
|         |                                                                                        |   |
| ITEM 1. | FINANCIAL STATEMENTS (UNAUDITED)                                                            | 1      |
|         |                                                                                        |   |
| ITEM 2.      | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 7      |
|         |                                                                                        |   |
| ITEM 3.      | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  | 9      |
|         |                                                                                        |   |
| ITEM 4.      | CONTROLS AND PROCEDURES                                                                     | 9      |
|         |                                                                                        |   |
| PART II      | OTHER INFORMATION                                                                           | 10     |
|         |                                                                                        |   |
| ITEM 1. | LEGAL PROCEEDINGS                                                                           | 10     |
|         |                                                                                        |   |
| ITEM 1.A.    | RISK FACTORS                                                                                | 10     |
|         |                                                                                        |   |
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 | 10     |
|         |                                                                                        |   |
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES                                                             | 11     |
|         |                                                                                        |   |
| ITEM 4.      | [REMOVED AND RESERVED]                                                                      | 11     |
|         |                                                                                        |   |
| ITEM 5.      | OTHER INFORMATION                                                                           | 11     |
|         |                                                                                        |   |
| ITEM 6. | EXHIBITS                                                                                    | 11     |

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NA

AN

|                                           | Index     |
|------------------------------------------------|-----------|
|                                           |      |
| Consolidated Balance Sheets                    | F–1 |
| Consolidated Statements of Operations          | F–2 |
| Consolidated Statements of Cash Flows          | F–3 |
| Notes to the Consolidated Financial Statements | F–4 |

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OU

|                                                                                                  |   | May 31,2011$ |        |   | August 31,2010$ |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|-----------------|--------|
|                                                                                                  |   | (unaudited)  |        |   |            |   |
|                                                                                                  |   |         |        |   |            |   |
| ASSETS                                                                                                |   |         |        |   |            |   |
|                                                                                                  |   |         |        |   |            |   |
| Current Assets                                                                                        |   |         |        |   |            |   |
|                                                                                                  |   |         |        |   |            |   |
| Cash                                                                                                  |   |         | 670         |   |            |   | 25 |   |
| Prepaid expenses and deposits                                                                         |   |         | 281         |   |            |   | 570 |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Total Assets                                                                                          |   |         | 951         |   |            |   | 595 |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                           |   |         |        |   |            |   |   |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Current Liabilities                                                                                   |   |         |        |   |            |   |   |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Accounts payable                                                                                      |   |         | 33,009      |   |            |   | 23,523 |   |
| Loans payable (Note 3)                                                                                |   |         | 27,315      |   |            |   | 26,382 |   |
| Due to related party (Note 4)                                                                         |   |         | 374,482     |   |            |   | 344,643 |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Total Liabilities                                                                                     |   |         | 434,806     |   |            |   | 394,548 |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Nature of Operations and Continuance of Business (Note 1)                                             |   |         |        |   |            |   |   |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Stockholders’ Deficit                                                                           |   |         |        |   |            |   |   |   |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Common stock, 100,000,000 shares authorized, $0.001 par value38,775,000 shares issued and outstanding |   |         | 38,775      |   |            |   | 38,775 |   |
| Additional paid-in capital                                                                            |   |         | 22,984,342  |   |            |   | 22,984,342 |   |
| Accumulated deficit                                                                                   |   |         | (215,105    | )      |            |   | (215,105 | ) |
| Deficit accumulated during the exploration stage                                                      |   |         | (23,241,867 | )      |            |   | (23,201,965 | ) |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Total Stockholders’ Deficit                                                                     |   |         | (433,855    | )      |            |   | (393,953 | ) |
|                                                                                                  |   |         |        |   |            |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                     |   |         | 951         |   |            |   | 595 |   |

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|                                  |   | Three Months EndedMay 31,2011$ |       |   | Three Months EndedMay 31,2010$ |   |       | Nine MonthsEndedMay 31,2011$ |   |   | Nine MonthsEndedMay 31,2010$ |   |   | Accumulated fromAugust 15, 2006(Date of Inception) toMay 31,2011$ |       |
|---------------------------------------|--------|--------------------------------|------------|--------|--------------------------------|--------|------------|------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------------------------------------------|------------|
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |
| Revenue                               |   |                           | –    |   |                           |   | –    |                         |   |   | –                      |   |   |                                                              | –    |   |   |   | – |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Expenses                              |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| General and administrative            |   |                           | 4,115      |   |                           |   | 3,898      |                         |   |   | 26,292                       |   |   |                                                              | 38,042     |   |   |   | 9,732,533 |   |
| Mineral exploration costs             |   |                           | –    |   |                           |   | –    |                         |   |   | –                      |   |   |                                                              | –    |   |   |   | 72,850 |   |
| Mineral property costs                |   |                           | –    |   |                           |   | –    |                         |   |   | –                      |   |   |                                                              | –    |   |   |   | 13,372,593 |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Total Expenses                        |   |                           | 4,115      |   |                           |   | 3,898      |                         |   |   | 26,292                       |   |   |                                                              | 38,042     |   |   |   | 23,177,976 |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Loss Before Other Expense             |   |                           | (4,115     | )      |                           |   | (3,898     | )                            |   |   | (26,292                      | )      |   |                                                              | (38,042    | ) |   |   | (23,177,976 | ) |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Other Expense                         |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Interest expense                      |   |                           | (4,698     | )      |                           |   | (4,461     | )                            |   |   | (13,610                      | )      |   |                                                              | (12,640    | ) |   |   | (63,891 | ) |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Net Loss From Continuing Operations   |   |                           | (8,813     | )      |                           |   | (8,359     | )                            |   |   | (39,902                      | )      |   |                                                              | (50,682    | ) |   |   | (23,241,867 | ) |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Discontinued operations               |   |                           | –    |   |                           |   | –    |                         |   |   | –                      |   |   |                                                              | –    |   |   |   | (215,105 | ) |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Net loss                              |   |                           | (8,813     | )      |                           |   | (8,359     | )                            |   |   | (39,902                      | )      |   |                                                              | (50,682    | ) |   |   | (23,456,972 | ) |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Net Loss Per Share, Basic and Diluted |   |                           | –    |   |                           |   | –    |                         |   |   | –                      |   |   |                                                              | –    |   |   |   |   |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
|                                  |   |                           |       |   |                           |   |       |                         |   |   |                         |   |   |                                                              |       |   |   |   |   |   |
| Weighted Average Shares Outstanding   |   |                           | 38,775,000 |   |                           |   | 38,775,000 |                         |   |   | 38,775,000                   |   |   |                                                              | 38,775,000 |   |   |   |   |   |

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|                                                                        |   |        |    |   |        |   |    | Accumulated from       |   |
|-----------------------------------------------------------------------------|--------|-------------|---------|--------|-------------|--------|---------|------------------------|--------|
|                                                                        |   | Nine Months |    |   | Nine Months |   |    | August 15, 2006        |   |
|                                                                        |   | Ended       |    |   | Ended       |   |    | (Date of Inception) to |   |
|                                                                        |   | May 31,     |    |   | May 31,     |   |    |  May 31,          |   |
|                                                                        |   | 2011        |    |   | 2010        |   |    | 2011                   |   |
|                                                                        |   | $           |    |   | $           |   |    | $                      |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Operating Activities                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Net loss from continuing operations                                         |   |        | (39,902 | )      |        |   | (50,682 | )                      |   |   | (23,241,867 | ) |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Shares issued for mineral property licenses                                 |   |        | – |   |        |   | – |                   |   |   | 8,812,500 |   |
| Stock-based compensation                                                    |   |        | – |   |        |   | – |                   |   |   | 6,975,491 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Changes in operating assets and liabilities                                 |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Prepaid expenses and deposits                                               |   |        | 289     |   |        |   | (7,345  | )                      |   |   | (281 | ) |
| Accounts payable                                                            |   |        | 9,486   |   |        |   | (2,162  | )                      |   |   | 33,009 |   |
| Accrued interest on note payable                                            |   |        | 933     |   |        |   | 943     |                   |   |   | 3,718 |   |
| Due to related party                                                        |   |        | 29,839  |   |        |   | 11,697  |                   |   |   | 96,096 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Net Cash Used In Operating Activities                                       |   |        | 645     |   |        |   | (47,549 | )                      |   |   | (7,321,334 | ) |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Financing Activities                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Proceeds from loans payable                                                 |   |        | – |   |        |   | – |                   |   |   | 23,597 |   |
| Advances from related party                                                 |   |        | – |   |        |   | 44,617  |                   |   |   | 288,034 |   |
| Proceeds from common stock issued                                           |   |        | – |   |        |   | – |                   |   |   | 7,225,126 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Net Cash Provided by Financing Activities                                   |   |        | – |   |        |   | 44,617  |                   |   |   | 7,536,757 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Discontinued Operations                                                     |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Operating activities                                                        |   |        | – |   |        |   | – |                   |   |   | (214,507 | ) |
| Investing activities                                                        |   |        | – |   |        |   | – |                   |   |   | (318 | ) |
| Financing activities                                                        |   |        | – |   |        |   | – |                   |   |   | – |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Net Cash Provided by Discontinued Operations                                |   |        | – |   |        |   | – |                   |   |   | (214,825 | ) |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Decrease in Cash                                                            |   |        | 645     |   |        |   | (2,932  | )                      |   |   | 598 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Cash, Beginning of Period                                                   |   |        | 25      |   |        |   | 3,829   |                   |   |   | 72 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Cash, End of Period                                                         |   |        | 670     |   |        |   | 897     |                   |   |   | 670 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Non-cash Investing and Financing Activities                                 |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Shares issued to settle related party debt                                  |   |        | – |   |        |   | – |                   |   |   | 10,000 |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Supplemental Disclosures                                                    |   |        |    |   |        |   |    |                   |   |   |   |   |
|                                                                        |   |        |    |   |        |   |    |                   |   |   |   |   |
| Interest paid                                                               |   |        | – |   |        |   | – |                   |   |   | – |   |
| Income taxes paid                                                           |   |        | – |   |        |   | – |                   |   |   | – |   |

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| 1. | Basis of Presentation |
|----|-----------------------|

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

|   | a) | Recent Accounting Pronouncements |
|--------|----|----------------------------------|

|   | b) | Reclassifications |
|--------|----|-------------------|

| 3. | Loan Payable |
|----|--------------|

| 4. | Related Party Transactions |
|----|----------------------------|

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| 5. | Stock Options |
|----|---------------|

|                                                          |   | Number of Options |      |   | Weighted Average ExercisePrice$ |   |   | Weighted Average Remaining Contractual Life (years) |   |   | AggregateIntrinsicValue$ |   |
|---------------------------------------------------------------|--------|-------------------|-----------|--------|---------------------------------|--------|--------|-----------------------------------------------------|--------|--------|--------------------------|--------|
|                                                          |   |              |      |   |                            |   |   |                                                |   |   |                     |   |
| Outstanding and exercisable, August 31, 2010 and May 31, 2011 |   |              | 2,500,000 |   |                            |   | 2.13   |                                                |   |   | 6.2                      |   |   |   | – |   |

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| ExhibitNumber |   | Description of Exhibit                                                                               |   | Filing                                                                                   |
|---------------|--------|------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
| 3.01          |   | Articles of Incorporation                                                                            |   | Filed with the SEC on March 22, 2005 as part of our Registration Statement on Form SB-2. |
| 3.02          |   | Bylaws                                                                                               |   | Filed with the SEC on March 22, 2005 as part of our Registration Statement on Form SB-2. |
| 31.01         |   | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14 |   | Filed herewith.                                                                          |
| 32.01         |   | CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act                          |   | Filed herewith.                                                                          |

GN

|            | ASIAN DRAGON GROUP INC. |                                                                                             |
|----------------------|-------------------------|--------------------------------------------------------------------------------------------------|
|                 |                    |                                                                                        |   |
| Dated: July 20, 2011 | By:                     | /s/ John Karlsson                                                                                |   |
|            |               | John Karlsson                                                                                    |   |
|            |               | Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer & Director |   |

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