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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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LE

|    |                                                                                        | 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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NC

|                                           | 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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GR

|                                                                                                   |   | February 28,2011$ |        |   | August 31,2010$ |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-----------------|--------|
|                                                                                                   |   | (unaudited)       |        |   |            |   |
|                                                                                                   |   |              |        |   |            |   |
| ASSETS                                                                                                 |   |              |        |   |            |   |
|                                                                                                   |   |              |        |   |            |   |
| Current Assets                                                                                         |   |              |        |   |            |   |
|                                                                                                   |   |              |        |   |            |   |
| Cash                                                                                                   |   |              | 705         |   |            |   | 25 |   |
| Prepaid expenses and deposits                                                                          |   |              | 157         |   |            |   | 570 |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Total Assets                                                                                           |   |              | 862         |   |            |   | 595 |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                            |   |              |        |   |            |   |   |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Current Liabilities                                                                                    |   |              |        |   |            |   |   |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Accounts payable                                                                                       |   |              | 35,127      |   |            |   | 23,523 |   |
| Loans payable (Note 3)                                                                                 |   |              | 27,005      |   |            |   | 26,382 |   |
| Due to related party (Note 4)                                                                          |   |              | 363,772     |   |            |   | 344,643 |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Total Liabilities                                                                                      |   |              | 425,904     |   |            |   | 394,548 |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Stockholders’ Deficit                                                                            |   |              |        |   |            |   |   |   |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Common stock, 100,000,000 shares authorized, $0.001 par value 38,775,000 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                                                       |   |              | (23,233,054 | )      |            |   | (23,201,965 | ) |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Total Stockholders’ Deficit                                                                      |   |              | (425,042    | )      |            |   | (393,953 | ) |
|                                                                                                   |   |              |        |   |            |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                      |   |              | 862         |   |            |   | 595 |   |

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OU

|                                  |   | Three Months EndedFebruary 28, 2011$ |       |   | Three Months EndedFebruary 28, 2010$ |   |       | Six MonthsEndedFebruary 28, 2011$ |   |   | Six MonthsEndedFebruary 28, 2010$ |   |   | Accumulated fromAugust 15, 2006(Date of Inception)to February 28, 2011$ |       |
|---------------------------------------|--------|--------------------------------------|------------|--------|--------------------------------------|--------|------------|-----------------------------------|--------|--------|-----------------------------------|--------|--------|-------------------------------------------------------------------------|------------|
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |
| Revenue                               |   |                                 | –    |   |                                 |   | –    |                              |   |   | –                           |   |   |                                                                    | –    |   |   |   | – |   |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Expenses                              |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| General and administrative            |   |                                 | 22,147     |   |                                 |   | 24,984     |                              |   |   | 22,177                            |   |   |                                                                    | 34,144     |   |   |   | 9,728,418 |   |
| Mineral exploration costs             |   |                                 | –    |   |                                 |   | –    |                              |   |   | –                           |   |   |                                                                    | –    |   |   |   | 72,850 |   |
| Mineral property costs                |   |                                 | –    |   |                                 |   | –    |                              |   |   | –                           |   |   |                                                                    | –    |   |   |   | 13,372,593 |   |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Total Expenses                        |   |                                 | 22,147     |   |                                 |   | 24,984     |                              |   |   | 22,177                            |   |   |                                                                    | 34,144     |   |   |   | 23,173,861 |   |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Loss Before Other Expense             |   |                                 | (22,147    | )      |                                 |   | (24,984    | )                                 |   |   | (22,177                           | )      |   |                                                                    | (34,144    | ) |   |   | (23,173,861 | ) |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Other Expense                         |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Interest expense                      |   |                                 | (4,499     | )      |                                 |   | (4,288     | )                                 |   |   | (8,912                            | )      |   |                                                                    | (8,179     | ) |   |   | (59,193 | ) |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Net Loss From Continuing Operations   |   |                                 | (26,646    | )      |                                 |   | (29,272    | )                                 |   |   | (31,089                           | )      |   |                                                                    | (42,323    | ) |   |   | (23,233,054 | ) |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Discontinued operations               |   |                                 | –    |   |                                 |   | –    |                              |   |   | –                           |   |   |                                                                    | –    |   |   |   | (215,105 | ) |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| Net loss                              |   |                                 | (26,646    | )      |                                 |   | (29,272    | )                                 |   |   | (31,089                           | )      |   |                                                                    | (42,323    | ) |   |   | (23,448,159 | ) |
|                                  |   |                                 |       |   |                                 |   |       |                              |   |   |                              |   |   |                                                                    |       |   |   |   |   |   |
| 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    |   |
|-----------------------------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|---------|---------------------|--------|
|                                                                        |   | Six Months   |    |   | Six Months   |   |    | August 15, 2006     |   |
|                                                                        |   | Ended        |    |   | Ended        |   |    | (Date of Inception) |   |
|                                                                        |   | February 28, |    |   | February 28, |   |    | to February 28,     |   |
|                                                                        |   | 2011         |    |   | 2010         |   |    | 2011                |   |
|                                                                        |   | $            |    |   |         | $      |    |                |   | $ |   |   |
| Operating Activities                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Net loss from continuing operations                                         |   |         | (31,089 | )      |         |   | (42,323 | )                   |   |   | (23,233,054 | ) |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| 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                                               |   |         | 413     |   |         |   | (10,690 | )                   |   |   | (157 | ) |
| Accounts payable                                                            |   |         | 11,604  |   |         |   | (2,551  | )                   |   |   | 33,127 |   |
| Accrued interest on note payable                                            |   |         | 623     |   |         |   | 626     |                |   |   | 3,408 |   |
| Due to related party                                                        |   |         | 19,129  |   |         |   | 7,553   |                |   |   | 87,386 |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Net Cash Used In Operating Activities                                       |   |         | 680     |   |         |   | (47,385 | )                   |   |   | (7,321,299 | ) |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Financing Activities                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Proceeds from loans payable                                                 |   |         | – |   |         |   | – |                |   |   | 23,597 |   |
| Advances from related party                                                 |   |         | – |   |         |   | 44,618  |                |   |   | 288,034 |   |
| Proceeds from common stock issued                                           |   |         | – |   |         |   | – |                |   |   | 7,225,126 |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Net Cash Provided by Financing Activities                                   |   |         | – |   |         |   | 44,618  |                |   |   | 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                                                            |   |         | 680     |   |         |   | (2,767  | )                   |   |   | 633 |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Cash, Beginning of Period                                                   |   |         | 25      |   |         |   | 3,829   |                |   |   | 72 |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| Cash, End of Period                                                         |   |         | 705     |   |         |   | 1,062   |                |   |   | 705 |   |
|                                                                        |   |         |    |   |         |   |    |                |   |   |   |   |
| 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 February 28, 2011 |   |              | 2,500,000 |   |                            |   | 2.13   |                                                |   |   | 6.5                      |   |   |   | – |   |

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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: May 20, 2011 | By:                | /s/ John Karlsson                                                                                |
|           |               | John Karlsson                                                                                    |
|           |               | Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer & Director |

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