Document:

Exhibit 10.1

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                          OPTION AGREEMENT - DRGO 01/05

THIS  OPTION  AGREEMENT  is  made  effective  the  20th  day  of  January,  2005

BETWEEN:

     JAROSLAV  RUZA
     1002-1415  St  Georges  Avenue
     North  Vancouver,  British  Columbia
     Canada
     (hereinafter  called  "Optionor")                OF  THE  FIRST  PART

AND:

     DRAGON  GOLD  RESOURCES,  INC.
     338  Euston  Road,  Suite  323
     London  -  NW1  3BT
     United  Kingdom
     (hereinafter  called  "Optionee")                OF  THE  SECOND  PART

WHEREAS:

A)   Optionor is the owner of an undivided 100% right, title and interest in and
     to  certain  Mining  Claims  more  particularly described on (Schedule "A")
     attached  to  this  Agreement;

B)   Optionee  wishes  to  acquire  the option to acquire a 100% interest in the
     Optionor's property on the terms and subject to the conditions contained in
     this  Agreement;

NOW  THEREFORE THIS AGREEMENT WITNESSETH that in consideration of these presents
and the sum of One Dollar ($1.00) now paid by each of the parties to each of the
other  parties  hereto,  the  receipt  and  sufficiency  of  which  is  hereby
acknowledged  by  each  of  the  parties,  and  for  other  good  and  valuable
consideration,  the receipt and sufficiency of which is also hereby acknowledged
by  each  of  the  parties,  the  parties  hereby  agree  as  follows:

DEFINITIONS

1.01 In  this Agreement and in all Schedules attached to and made a part hereof,
     the  following words and phrases shall have the following meanings, namely:

     (A)  "Net Smelter Returns" means the proceeds received by the Optionee from
          any smelter or other purchaser from the sale of any ores, concentrates
          or  minerals  produced  from  the  Property  after deducting from such
          proceeds  the  following  charges only to the extent that they are not
          deducted  by the smelter or other purchaser in computing the proceeds:

          (I)  the  cost of transportation of the ores, concentrates or minerals
               from  the  Property to such smelter or other purchaser, including
               insurance  and  related  transport;

          (II) smelting  and  refining  charges  including  penalties;

          (III)  marketing  and  insurance  costs;

     (B)  "Option  to  Purchase" means the grant by the Optionor to the Optionee
          set  forth  in  paragraph  4.01  hereof;

     (C)  "Property"  means  all of the mineral claims described in Schedule "A"
          hereto  in  respect of which the Option to Purchase remains in effect,
          and  all  mining  leases  and other mineral interests derived from any
          such  mineral  claims.  Any  reference  herein  to  any mineral claims
          comprised  in  the  Property  includes  any  mineral  leases  or other
          interests  into  which  such  mineral  claims may have been converted.

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REPRESENTATIONS  AND  WARRANTIES  OF  THE  OPTIONOR

2.01     The  Optionor  represents  and  warrant  to  the  Optionee  that:

     (A)  it  is  the  owner  of  an undivided one hundred percent (100%) right,
          title  and  interest  in  the  Property, free of any liens, charges or
          claims  of  others.

     (B)  it  is legally entitled to hold its interests in the Property and will
          remain  so  entitled  until  the  interests of the Optionor as set out
          herein  in  the  Property has been duly transferred to the Optionee as
          contemplated  herein;

     (C)  it is, and at the time of any transfer to the Optionee of any interest
          in  the Property will be, the owner of the interest in the Property so
          transferred free and clear of all liens, charges and claims of others,
          and  no  taxes,  annual  license  fees,  rentals,  or other charges or
          penalties,  are  due  in  respect  thereof;

     (D)  the  mineral claims comprising the Property have been duly and validly
          located  pursuant  to the laws of the Mongolia and are recorded in the
          name  of  the  Optionor  and are in good standing in the Office of the
          Geological  and  Mining  Cadaster  (OGMC)  of  the  Mineral  Resources
          Authority  of  Mongolia  (MRAM) on the date hereof and until the dates
          set  out  on  the  attached  Schedule  "A";

     (E)  there  is no adverse claim or challenge against or to the ownership of
          or  title  to  the Property, nor to their knowledge is there any basis
          therefore,  and  there  are  no  outstanding  agreements or options to
          acquire  or  purchase  the  Property  or  any  portion  thereof,

     (F)  the  consummation  of  the  transaction  herein  contemplated will not
          conflict  with  or result in any breach of any covenants or agreements
          contained in, or constitute a default under, or result in the creation
          of  any  encumbrance under the provisions of, any indenture, agreement
          or  other instrument whatsoever to which the Optionor is a party or by
          which  any  of  them  is bound or to which any of them may be subject;

     (G)  no proceedings are pending for, nor is the Optionor aware of any basis
          for  the institution of, any proceedings leading to the placing of any
          of  them in bankruptcy or subject to any laws governing the affairs of
          insolvent  persons.

2.02 The Optionor acknowledges that the representations and warranties set forth
     in  paragraph  2.01 hereof form a part of this Agreement and are conditions
     upon  which  the  Optionee  has relied in entering into this Agreement, and
     that  these representations and warranties shall survive the acquisition of
     any  interest  in  the  Property  hereunder  by  the  Optionee.

2.03 The  parties  also  acknowledge  and  agree  that  the  representations and
     warranties  set  forth  in  paragraph  2.01  hereof  are  provided  for the
     exclusive  benefit of the Optionee, and a breach of any one or more thereof
     may  be  waived  by  the  Optionee  in whole or in part at any time without
     prejudice  to  its rights in respect of any other breach of the same or any
     other  representation  or  warranty.

REPRESENTATIONS  AND  WARRANTIES  OF  THE  OPTIONEE

3.01 The  Optionee  represents  and  warrants  to  the  Optionor  that:

(a)  it has been duly incorporated under the Nevada Revised Statutes and validly
     exists  as  a  corporation in good standing under the laws of Nevada and is
     legally  entitled  to  hold  mineral  property  interests  in  Mongolia;

(b)  it has duly obtained all corporate authorizations for the execution of this
     Agreement  and  for  the  performance  of  this  Agreement  by  it, and the
     consummation  of the transaction herein contemplated will not conflict with
     or  result  in  any  breach of any covenants or agreements contained in, or
     constitute  a  default  under, or result in the creation of any encumbrance
     under  the  provisions  of,  its  Articles  or  constating documents or any
     shareholders'  or  directors'  resolution,  indenture,  agreement  or other
     instrument  whatsoever to which it is a party or by which it is bound or to
     which  it  may  be  subject;

(c)  no  proceedings  are  pending for, and it is not aware of any basis for the
     institution of any proceedings leading to, its dissolution or winding-up or
     the  placing  of  it  in  bankruptcy  or  subject to any laws governing the
     affairs  of  insolvent  persons.

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3.02 The Optionee acknowledges that the representations and warranties set forth
     in  paragraph  3.01 hereof form a part of this Agreement and are conditions
     upon  which  the  Optionor have relied in entering into this Agreement, and
     that  these representations and warranties shall survive the acquisition of
     any  interest  in  the  Property  hereunder  by  the  Optionee.

3.03 The  parties  also  acknowledge  and  agree  that  the  representations and
     warranties  set  forth  in  paragraph  3.01  hereof  are  provided  for the
     exclusive  benefit of the Optionor, and a breach of any one or more thereof
     may  be  waived  by  the  Optionor  in whole or in part at any time without
     prejudice to their rights in respect of any other breach of the same or any
     other  representation  or  warranty.

GRANT  OF  OPTION  TO  PURCHASE  AND  COMMITMENTS

4.01 The Optionor hereby grants to the Optionee the sole and exclusive right and
     option, subject to the terms of this Agreement, to acquire an undivided one
     hundred  percent  (100%)  right, title and interest in and to the Property,
     free  and  clear  of  all claims, liens, charges and encumbrances, save and
     except  for  those  set forth in this Agreement, on the following terms and
     conditions:

     (A)  the  Optionee  making  the  following  cash  payments to the Optionor:

          (I)  CAD$20,000  upon  the execution of this Agreement by all parties;

          (II) an  additional CAD$30,000 on or before the day which is 12 months
               from  the  date  the  payment  required  under (i) above is made;

          (III) an additional CAD$50,000 on or before the day which is 12 months
               from  the  date  the  payment  required under (ii) above is made;

     4.02 Upon  the execution of this Agreement, the Optionor also agrees on the
          following:

     (A)  the  Optionor  will  provide  the  Optionee  with  all  the  necessary
          geological  information  on  the  properties,  maps and reports on the
          Property (including regional and property geological, geochemical, and
          geophysical  survey maps and reports and other works on the properties
          if such works existed) so that the Optionee can evaluate the Property;
          and  will  assist the Optionee on their interpretation and translation
          if  required  so  by  the  Optionee.

     (B)  subject  to  the Optionee's request, the Optionor agrees to provide up
          to a maximum of Fifteen (15) working days of his time to accompany the
          Optionee and its servants, agents and independent contractors to visit
          the Property, assist the Optionee in assembling an exploration team in
          Mongolia,  and/or assist in other matters related to the due diligence
          process to be conducted on the properties. The Optionee will cover all
          reasonable  expenses related to the Optionor's assistance and will pay
          the  Optionor a professional fee of CAD$300 for each day of assistance
          provided  to  visit  the  Property.

     (C)  if  required  by  the  Optionee, the Optionor will assist the Optionee
          with  all the necessary regulatory filings to the relevant authorities
          in  Mongolia in order to maintain the Property in good standing and to
          carry  out  its  intended  exploration  activities.

     (D)  the Optionor will assist the Optionee to record the Option to Purchase
          with  the  appropriate  governmental  office(s)  in  Mongolia, if such
          registration  is  possible.

4.03 This  Agreement  represents an option only, and the Optionee shall be under
     no  obligation to the Optionor hereunder, save and except in respect of the
     making  by  the  Optionee of the cash payment provided for in sub-paragraph
     4.01(a)(i)  hereof.

4.04 Upon  the  Optionee  having  completed  the  cash  payments provided for in
     sub-paragraph (a) of paragraph 4.01, the Option to Purchase shall be deemed
     to  be  exercised  and the Optionee shall have earned all of the Optionor's
     right,  title  and  interest  in  and  to the Property, which amounts to an
     undivided  one  hundred  percent (100%) right, title and interest in and to
     the  Property,  subject to the reservation in favour of the Optionor of two
     percent (2%) of the Net Smelter Returns (hereinafter called the "Royalty"),
     subject  to:

     (A)  the  Optionee's  right  to:

          (I)  purchase  one-third (1/3) of the Royalty from the Optionor at any
               time  for  the  sum  of  CAD$300,000;

          (II) purchase  an  additional  one-third (1/3) of the Royalty from the
               Optionor  at  any  time  for  the  sum of CAD$300,000 (giving the
               Optionee  a  total ownership of two-thirds (2/3) of the Royalty);

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     (B)  the  Optionee  will  have  a  right  of  first refusal entitling it to
          purchase  the  remaining  one-third  (1/3)  of  the  Royalty  from the
          Optionor  in  the  event  the  Optionor  wishes to sell this remaining
          interest  in  the  Royalty.

4.05 After  the  exercise of the Option to Purchase, payment of the Royalty will
     be made quarterly within 30 days after the end of each yearly quarter based
     upon  a  calendar year commencing on the 1st day of January and expiring on
     the  31st day of December in any year in which production occurs. Within 60
     days  after  the  end  of  each  year for which the Royalty is payable, the
     records  relating  to  the calculation of Net Smelter Returns for such year
     will  be  audited by the Optionee and any adjustments in the payment of the
     Royalty  will  be  made  forthwith  after  the completion of the audit. All
     payments  of  the  Royalty  for  a  year  will  be deemed final and in full
     satisfaction  of  all the obligations of the Optionee in respect thereof if
     such  payments  or  calculations  thereof  are not disputed by the Optionor
     within 60 days after receipt by the Optionor of these audited calculations.
     The  Optionee  will maintain accurate records relevant to the determination
     of  Net Smelter Returns and the Optionor, or their authorized agents, shall
     be  permitted  the  right  to examine such records at all reasonable times.

4.06 The  determination of Net Smelter Returns and the Royalty payable hereunder
     is  based  on  the  premise that production will be developed solely on the
     Property  except  that  the  Optionee  will have the right to commingle ore
     mined  from  the Property with ore mined and produced from other properties
     provided  that  the Optionee will adopt and employ reasonable practices and
     procedures  for  weighing, sampling and assaying, in order to determine the
     amounts  of  products  derived  from  or attributable to that ore mined and
     produced  from the Property. The Optionee will maintain accurate records of
     the results of such weighing, sampling and assaying with respect to any ore
     mined and produced from the Property. The Optionor or its authorized agents
     will be permitted the right to examine at all reasonable times such records
     pertaining  to  commingling  of  ore  or  to the calculation of Net Smelter
     Returns  and  the  Royalty.

TRANSFER  OF  PROPERTY

5.01 After  the  Option to Purchase has been completed pursuant to sub-paragraph
     (a)  of  paragraph  4.01,  the  Optionor shall cause to be delivered to the
     Optionee  duly  executed  recordable transfers in favour of the Optionee or
     its  trustees  or  subsidiaries  of an undivided one hundred percent (100%)
     interest  in  and  to  the Property, subject only to the Royalty, which the
     Optionee  shall  be  entitled  to  record with the appropriate governmental
     office.

OBLIGATIONS  OF  THE  OPTIONEE  DURING  THE  OPTION  PERIOD

6.01 The  Optionee hereby covenants and agrees that for so long as the Option to
     Purchase  hereunder  continues  in  full  force  and  effect  it  will:

     (A)  maintain  the  Property  in  good  standing by the doing and filing of
          applicable  assessment work or the making of payments in lieu thereof,
          by  the  payment  of  taxes,  annual  license fees and rentals and the
          performance of all other actions which may be necessary in that regard
          and  in  order  to  keep  the Property free and clear of all liens and
          other  charges except those at the time contested in good faith by the
          Optionee;

     (B)  file  all  applicable  assessment  work  carried out in respect of the
          Property to the allowable extent permitted under all applicable mining
          legislation;

     (C)  permit  the  Optionor  or  its duly authorized agents, upon reasonable
          prior  notice to the Optionee, to have access to the Property in order
          to  examine  any  work carried out by the Optionee, provided, however,
          that neither the Optionor nor their agents shall interfere or obstruct
          the  operations  of  the  Optionee,  its  servants  and  agents on the
          Property, and further provided that the Optionor or their agents shall
          enter upon the Property at their own risk and that the Optionor agrees
          to indemnify and save the Optionee harmless from all loss or damage of
          any  nature  or  kind whatsoever in any way referable to the entry of,
          presence  on,  or  activities  of  either the Optionor or their agents
          while  on  the Property, including, without limiting the generality of
          the  foregoing,  bodily  injuries  or  death  at  any  time  resulting
          therefrom  and  damage to property sustained by any person or persons;

     (D)  will  cover  the  expenses  associated  with  the  reproduction of any
          information  requested  by  the  Optionee  to  the  Optionor.

6.02 Notwithstanding  any  of  the  provisions  of  this  Agreement, the parties
     specifically agree that the Optionee will not be responsible for rectifying
     any  environmental  damage  sustained  on  the  Property  prior to the date
     hereof.

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RIGHT  OF  ENTRY

7.01 During  the  term  of this Agreement, the Optionee and its servants, agents
     and  independent  contractors  shall  have  the sole and exclusive right in
     respect  of  the  Property  to:

     (A)  enter  thereon;

     (B)  have  exclusive  and  quiet  possession  thereof;

     (C)  do such prospecting, exploration, development and/or other mining work
          thereon  and  thereunder  as  the  Optionee in its sole discretion may
          determine  advisable;

     (D)  bring  upon  and  erect  upon  the  Property  such  buildings,  plant,
          machinery, tools, appliances and/or equipment as the Optionee may deem
          advisable;  and

     (E)  remove  therefrom  and  dispose  of  reasonable  quantities  of  ores,
          minerals  and  metals  for  the purposes of obtaining assays or making
          other  tests.

TERMINATION  OF  OPTION  TO  PURCHASE

8.01 The  Option  to  Purchase  shall  terminate:

     (A)  upon  receipt  by  the  Optionor  of notice from the Optionee that the
          Optionee  is  terminating  the  Option  to  Purchase.

8.02 Notwithstanding  the  provisions  of paragraphs 4.01 hereof, if at any time
     during  the term of the Option to Purchase the Optionee fails to advance to
     the  Optionor any cash payment required under sub-paragraph 4.01(a) hereof,
     the  Optionor  may  terminate  this  Agreement,  but  only  if:

     (A)  they  shall  have  first  given  to  the  Optionee a notice of default
          containing  particulars  of  the  payment  not  advanced;  and

     (B)  the  Optionee has not, within ten (10) days following delivery of such
          notice  of  default,  cured  such  default  by  making the appropriate
          payment.

8.03 Should  the  Optionee  fail  to comply with the provisions of sub-paragraph
     8.02(b),  the  Optionor  may  thereafter  terminate this Agreement, and the
     provisions of paragraph 8.04 and sub-paragraph 8.05(a) hereof shall then be
     applicable.

8.04 If the Option to Purchase in respect of any of the mineral claims comprised
     in  the  Property is terminated otherwise than upon the exercise thereof by
     the  Optionee  pursuant  to  paragraph  4.01 hereof (hereinafter called the
     "Terminated  Claims"),  the  Optionee  shall:

     (A)  leave the Terminated Claims in good standing for a period of least six
          (6)  months  from the termination of the Option to Purchase in respect
          of  the  Terminated  Claims;

     (B)  deliver  at  no  cost  to the Optionor within three (3) months of such
          termination  copies  of  all  reports,  maps,  assay results and other
          relevant  technical  data  compiled  by  or  in  the possession of the
          Optionee  with  respect  to  the Terminated Claims and not theretofore
          furnished  to  the  Optionor.

8.05     The  Optionee  agrees  with  the  Optionor  that:

          (A)  if  required in the event the Option to Purchase is terminated in
               respect of any Terminated Claims, it will deliver to the Optionor
               duly  executed  recordable transfers in favour of the Optionor of
               an  undivided  one  hundred percent (100%) interest in and to the
               Terminated  Claims;  and

          (B)  in  the event the Option to Purchase is terminated as a result of
               the  exercise  thereof by the Optionee pursuant to paragraph 4.01
               hereof,  it will retain the duly executed recordable transfers in
               favour of the Optionee of an undivided one hundred percent (100%)
               interest  in  and  to  the Property, subject only to the Royalty.

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8.06 Notwithstanding the termination of the Option to Purchase in respect of any
     Terminated  Claims,  the  Optionee shall have the right, within a period of
     six  (6)  months  following  the  termination  of the Option to Purchase in
     respect  of the Terminated Claims, to remove from the Terminated Claims all
     buildings,  plant,  equipment,  machinery,  tools,  appliances and supplies
     which  have  been brought upon the Terminated Claims by or on behalf of the
     Optionee,  provided  that  any such buildings, plant, equipment, machinery,
     tools,  appliances  and  supplies  which  have  not  been  removed from the
     Terminated  Claims  by  the Optionee within this six (6) month period shall
     thereafter  become  the  property  of  the  Optionor.

TRANSFER  OF  INTEREST  BY  THE  OPTIONEE

9.01 The  Optionee  may  at  any time, either during the period of the Option to
     Purchase  or  thereafter, sell, transfer or otherwise dispose of all or any
     portion of its interest in and to the Property and this Agreement, provided
     that  any  purchaser, grantee or transferee of any such interest shall have
     first delivered to the Optionor its agreement related to this Agreement and
     to  the  Property,  containing:

     (A)  a  covenant  by  such transferee to perform all the obligations of the
          Optionee  to  be  performed  under  this  Agreement  in respect of the
          interest  to be acquired by it from the Optionee to the same extent as
          if  this  Agreement  had  been originally executed by the Optionee and
          such transferee as joint and several obligors making joint and several
          covenants;  and

     (B)  a provision subjecting any further sale, transfer or other disposition
          of  such  interest  or  any portion thereof in and to the Property and
          this  Agreement to the restrictions contained in sub-paragraph 9.01(a)
          hereof.  9.02  No assignment by the Optionee of any interest less than
          its  entire  interest  in this Agreement and in the Property shall, as
          between  the  Optionee  and the Optionor, discharge it from any of its
          obligations  hereunder,  but  upon the transfer by the Optionee of the
          entire  interest  at  the time held by it in this Agreement and in the
          Property  (whether to one or more transferees and whether in one or in
          a  number of successive transfers), the Optionee shall be deemed to be
          discharged  from  all  obligations  hereunder  or other fulfillment of
          contractual  commitments  and any environmental liabilities, effective
          on  the  date  on which the Optionee shall have no further interest in
          this  Agreement  or  in  the  Property.

FORCE  MAJEURE

     10.01  If  the  Optionee  is  at any time during the term of this Agreement
          either  prevented  or delayed in complying with any provisions of this
          Agreement  by  reason  of  strikes, labour shortages, power shortages,
          fuel  shortages,  fires,  wars,  acts of God, governmental regulations
          restricting  normal operations, shipping delays or any other reason or
          reasons (other than lack of funds) beyond the control of the Optionee,
          the  time  limited  for  the  performance  by  the  Optionee  of  its
          obligations  hereunder  shall be extended by a period of time equal in
          length  to  the  period  of  each  such  prevention  or  delay.

     10.02  The  Optionee shall give prompt notice to the Optionor of each event
          of  force  majeure  under paragraph 10.01 hereof and upon cessation of
          such  event  shall  furnish  the  Optionor  with notice to that effect
          together  with  particulars  of  the  number  of  days  by  which  the
          obligations  of the Optionee hereunder have been extended by virtue of
          such event of force majeure and all preceding events of force majeure.

CONFIDENTIAL  INFORMATION

11.01 No information in respect of the activities carried out on the Property or
     any  portion  thereof  by the Optionee during the currency of the Option to
     Purchase  hereunder  shall  be published by the Optionor or by the Optionee
     without the prior written consent of the other, but such consent in respect
     of  the  reporting  or factual data shall not be unreasonably withheld, and
     shall  not  be  withheld  in respect of information required to be publicly
     disclosed  pursuant  to  applicable  securities or corporation laws. In the
     event  either  the  Optionor  or  the Optionee proposes to publish any such
     information,  they  shall  first  provide  to  the  other written notice by
     facsimile of the information proposed to be published at least one business
     day  prior  to  the publication of such information. In the event the party
     receiving  such  written  notice  has  not  provided  comments to the party
     sending  such written notice within one business day of the receipt of such
     written  notice,  the  other party will be free to publish such information
     without  further  reference  to  the  party to whom such written notice was
     sent.

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ARBITRATION

12.01 The parties agree that all questions or matters in dispute with respect to
     the  accounting  of monies expended by the Optionee as provided for herein,
     or  with respect to any other matter of a financial nature hereunder, shall
     be  submitted  to  arbitration  pursuant  to  the  terms  hereof.

12.02  It shall be a condition precedent to the night of any party to submit any
     matter  to  arbitration  pursuant  to  the provisions hereof that any party
     intending to refer any matter to arbitration shall have given not less than
     thirty  (30)  days  prior  written  notice of its intention so to do to the
     other  party  together  with  particulars  of the matter in dispute. On the
     expiration  of  such  thirty  (30) days, the party who gave such notice may
     proceed  to  refer  the dispute to arbitration as provided for in paragraph
     12.03  hereof.

12.03  The  party  desiring  arbitration shall appoint one arbitrator, and shall
     notify  the  other  party  of  such appointment, and the other party shall,
     within  fifteen  (15)  days  after  receiving  such  notice,  appoint  an
     arbitrator,  and  the  two  arbitrators so named, before proceeding to act,
     shall,  within  fifteen  (15) days of the appointment of the last appointed
     arbitrator,  unanimously  agree on the appointment of a third arbitrator to
     act  with  them  and be chairman of the arbitration herein provided for. If
     the  other  party  shall  fail to appoint an arbitrator within fifteen (15)
     days after receiving notice of the appointment of the first arbitrator, and
     if the two arbitrators appointed by the parties shall be unable to agree on
     the  appointment of the chairman, the chairman shall be appointed under the
     provision  of  the Commercial Arbitration Act (British Columbia). Except as
     specifically  otherwise  provided in this paragraph, the arbitration herein
     provided  for shall be conducted in accordance with such Act. The chairman,
     or  in  the  case  where  only  one  arbitrator  is  appointed,  the single
     arbitrator,  shall fix a time and place in Vancouver, British Columbia, for
     the purpose of hearing the evidence and representations of the parties, and
     he  shall  preside  over  the  arbitration  and  determine all questions of
     procedure  not provided for under such Act or this paragraph. After hearing
     any  evidence  and  representations that the parties may submit, the single
     arbitrator, or the arbitrators, as the case may be, shall make an award and
     reduce  the  same  to  writing, and deliver one copy thereof to each of the
     parties.  The  expense of the arbitration shall be paid as specified in the
     award.

12.04  The parties may agree that the award of a majority of the arbitrators, or
     in  the case of a single arbitrator, of such arbitrator, shall be final and
     binding  upon  each  of  them.

NOTICES  AND  PAYMENT

13.01  Any  notice,  demand, payment or other communication under this Agreement
     will  be  given  in writing and must be delivered or sent by telecopier and
     addressed  to  the  party  to  which  it  is  being  given at the following
     addresses:

                              JAROSLAV  RUZA
                              1002-1415  St  Georges  Avenue
                              North  Vancouver,  British  Columbia
                              Canada

                              Attention:  Mr.  Jaroslav  Ruza
                              Facsimile  No.  +1  604  985  3160

                              DRAGON  GOLD  RESOURCES,  INC.
                              338  Euston  Road,  Suite  323
                              London  -  NW1  3BT
                              United  Kingdom

                              Attention:  Mr.  Johannes  Petersen
                              Facsimile  No.  +44  (0)  207  416  4975

13.02 If notice, demand, payment or other communication is sent by telecopier or
     is  delivered, it will be deemed to have been received on the next business
     day  following  the  day  of  transmission  or  delivery.

CURRENCY

14.01  All  references  to monies hereunder will be in lawful currency of Canada
     unless  otherwise  specified.

<PAGE>

                                                                 Page  8  of  10

FURTHER  ASSURANCES

15.01  Each  of  the parties hereto agrees to do and/or execute all such further
     and  other acts, deeds, things, devices, documents and assurances as may be
     required  in  order  to  carry  out  the  true  intent  and meaning of this
     Agreement,  including  the  registration thereof against any of the mineral
     property  interests  comprising  the  Property at the request of any party.

TIME  OF  THE  ESSENCE

16.01  Time  shall  be  of  the  essence  of  this  Agreement.

COSTS

17.01  Each  of  the parties hereto will be responsible for paying its own costs
     relating  to  the  preparation  and  execution  of  this  Agreement.

ENTIRE  AGREEMENT

18.01  The  parties hereto agree that the terms and conditions of this Agreement
     shall  supersede  and replace any other agreements or arrangements, whether
     oral  or  written,  heretofore existing among the parties in respect of the
     subject  matter  of  this  Agreement.

COUNTERPARTS

19.01  This  Agreement  and  any  certificate  or  other  writing  delivered  in
     connection  herewith  may be executed in any number of counterparts and any
     party  hereto  may execute any counterpart, each of which when executed and
     delivered will be deemed to be an original and all of which counterparts of
     this  Agreement  or such other writing, as the case may be, taken together,
     will  be  deemed  to  be one and the same instrument. The execution of this
     Agreement  or  any  other  writing  by  any  party  hereto  will not become
     effective  until  all  counterparts  hereof  have  been executed by all the
     parties  hereto.

EXECUTION  BY  FACSIMILE

20.01  Each  of  the  parties  hereto  will be entitled to rely upon delivery by
     facsimile  of  executed  copies  of  this Agreement and any certificates or
     other  writings delivered in connection herewith, and such facsimile copies
     will be legally effective to create a valid and binding agreement among the
     parties  in  accordance  with  the  terms and conditions of this Agreement.

HEADINGS

21.01  The  headings  to the respective paragraphs hereof shall not be deemed as
     part  of  this  Agreement  but  shall  be  regarded as having been used for
     convenience  only.

GOVERNING  LAW

22.01  This  Agreement shall be governed by and construed in accordance with the
     laws  of  the  Province  of British Columbia and the federal laws of Canada
     applicable  therein.

ENUREMENT

23.01  This  Agreement  shall  enure  to  the benefit of and be binding upon the
     parties  hereto  and each of their successors and permitted assigns, as the
     case  may  be.

<PAGE>

                                                                 Page  9  of  10

IN WITNESS WHEREOF this Agreement has been executed as of the day and year first
above  written.

Jaroslav  Ruza                          Dragon  Gold  Resources,  Inc.
Per:                                    Per:

/s/  Jaroslav                           /s/  Johannes  Petersen
-------------                           -----------------------
Jaroslav  Ruza                         Johannes  Petersen
                                       President  &  CEO

                                       /s/  Xiaojun  (Albert)  Cui
                                       ---------------------------
                                       Xiaojun  (Albert)  Cui
                                       Director

<PAGE>

                                                                Page  10  of  10

                                  SCHEDULE "A"

Claims  registered  to  Optionor  at  the  Office  of  the Geological and Mining
Cadaster  (OGMC)  of  the  Mineral  Resources  Authority  of  Mongolia  (MRAM)
immediately  before  the  execution  of  this  Agreement.

<TABLE>
<CAPTION>

         License No.    Issue Date         License        Area       Province (s)     Subprovince (s)              Area Name
                                           Renewal     (Hectares)
<S>         <C>             <C>             <C>           <C>           <C>              <C>                          <C>
1          7551         24/05/2004       24/05/2005      10014       Dornogovi         Mandakh                      Olon aarg
2          7422         10/05/2004       10/05/2005      10042       Uvs               Naranbulag/Olgii             Baruun khavtsal
3          7552         24/05/2004       24/05/2005      10571       Zavkhan           Aldarkhaan                   Yamaat
4          7423         10/05/2004       10/05/2005       9795       Uvs/Zavkhan       Zavkhan/Urgamal/Dorvoljin    Uneged uul
5          8048         03/08/2004       03/08/2005       7426       Dornogovi         Kahatanbulag                 Ondor khoshuu

</TABLE>

<PAGE>Amendment to the Employment Agreement with Henry R. Silverman

Exhibit 10.1

	
Clarification of Employment Agreement

January 21 , 2005

Mr. Henry R. Silverman, Chairman and Chief Executive Officer

Cendant Corporation

9 West 57th Street

New York, New York 10019

Dear Mr. Silverman:

Reference is made to the Amended and Extended Employment Agreement by and between Cendant Corporation (“Cendant”) and you, dated as of July 1, 2002 (the “Employment Agreement”), and the Second Amendment to Amended and Extended Employment Agreement dated as of August 20, 2004 (the “Second Amendment”). Upon reviewing the Employment Agreement and the Second Amendment, we have discussed a certain provision which, for the benefit of Cendant and its shareholders, we mutually desire to clarify.

As you know, pursuant to the Second Amendment, you previously agreed that your entitlement to receive certain post-termination compensation under certain circumstances (in exchange for providing post-termination consulting services) would be reduced to a period which will not exceed 5 years (prior to the Second Amendment, the period was your lifetime). Cendant and you now wish to clarify that the post-termination restrictive covenants applicable to you under the Employment Agreement (which, for example, preclude you under certain circumstances from competing against Cendant for your lifetime) will not terminate if and when your right to post-termination compensation expires following such 5 year period. Rather, such post-termination restrictive covenants are intended to remain in effect for your lifetime or for as long as you are provided separation benefits from Cendant.

Therefore, for greater clarity and in order to effectuate the intent of the Second Amendment, Cendant and you agree that the second to last sentence of Section 8(c) of the Employment Agreement, which sets forth the definition of “Post Term Cessation Date,” is hereby amended to read, in its entirety, as follows:

		“Post Term Cessation Date” shall mean the date that the Company ceases providing you Separation Benefits in breach of this Agreement.

This letter is intended to constitute an amendment to the Employment Agreement and, as amended hereby, the Employment Agreement shall remain in full force and effect. In order to evidence your agreement to the foregoing, please sign and return the enclosed copy of this document, which shall constitute a binding agreement between Cendant and you.

CENDANT CORPORATION

By: /s/ Eric J. Bock                

Eric J. Bock

Executive Vice President and Corporate Secretary

 

Accepted and Agreed to as

of the date first above written:

/s/ Henry R. Silverman    

Henry R. Silverman

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