Red Dragon Resources Corp. Board of Directors Approves Option Repricing

TSX.V.DRA

VANCOUVER , Oct. 26 /CNW/ - Red Dragon Resources Corp. (the "Company") announced today that the Company has amended an aggregate of 3,020,000 outstanding incentive stock options held by current directors and employees to reduce the exercise prices which currently range from C$0.83 - $1.55. The options being repriced include 700,000 options expiring on July 11, 2011 , 970,000 options expiring on July 4, 2012 , 650,000 options expiring December 11, 2011 , 300,000 options expiring January 16, 2012 , 300,000 options expiring October 12, 2011 and 100,000 options expiring April 11, 2012 . The options are governed by the Company's stock option plan and are an important component of the Company's executive compensation strategy providing employees, consultants, officers and directors with long-term equity-based performance incentives. The options are being repriced to bring them more in line with current market prices of the Company's common shares so as to ensure that the interests of management are aligned with shareholders' interests and to link performance compensation to enhancement of shareholder value.

An aggregate of 2,935,000 of these options are held by insiders and, in accordance with the requirements of TSXV policies, the amendments to such options are subject to the approval of the Company's "disinterested" shareholders. Accordingly, approval to the repricing of the insider's options will be sought at the Company's 2010 annual general meeting. None of the repriced options held by insiders may be exercised prior to such approval being obtained.

The Company also has granted incentive stock options, under its stock option plan, to one newly elected director of the Company, to purchase up to 300,000 common shares of the Company. The options are exercisable for a five year period at an exercise price of $0.60 per share and are subject to vesting provisions.

Red Dragon Resources Corp. is a Canadian-based company with a focus on acquisition, exploration and development of mineral properties. The Company has a balance sheet of about Cdn$9 million in cash and cash equivalents and Cdn$9 million in investments as of September 30, 2009 .

    
    On Behalf of the Board of Directors of
    Red Dragon Resources Corp.

    Alvin Jackson
    Chairman & CEO

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

For further information: Alvin Jackson, Chairman and Chief Executive Officer, Tel: [phone]