Nippon provides an update on the deployment and implementation of its exclusive and patented Thermal Fragmentation mining technology

Brossard, Quebec / TheNewswire / August 18th, 2015 Nippon Dragon Resources Inc. (the "Corporation" or "Nippon") (TSX-V Symbol: NIP), is pleased to provide an update on current activities, in conjunction with its distributors, pertaining to the deployment and implementation of its exclusive and patented thermal fragmentation mining technology.

Currently, Nippon has entered into distribution agreements in 3 countries, Australia, Japan and South Africa. Several additional companies have demonstrated interest in securing distributorship agreements for other countries around the world, news of which, will be made public in a timely manner.

Update on the distribution agreements:

South Africa: MaXem, has completed the design and manufacture of three ITH drills specifically adapted to operate in the narrow drift environment typically encountered in South African mines. Both MaXem and Nippon are confident that the employment of the specialized ITH drill in conjunction with the thermal fragmentation technology will increase cost savings for potential clients while providing them with a definite competitive advantage compared to conventional mining methods.

Japan: NDR Japan, took possession of one Dragon and received the training required to operate the unit. Several demonstrations of the technology were conducted and attended by government officials, mining and construction contractors and mine owners. While discussions with various parties are ongoing, NDR has entered into a mining contract whereby the thermal fragmentation technology is expected to be the sole mining method used in order to preserve the natural settings and reduce the environmental footprint of the operation. Thermal fragmentation operations will begin as soon as drift development justifies the deployment of the technology.

Australia: Two mini-Dragons were manufactured for our distributor, Safescape and will be shipped by sea container within the coming weeks along with the supporting equipment and spare parts. The construction of a full-scale technology showcase is currently underway at a local mine at no cost to Nippon. The technology showcase will be used for training and more importantly as a sales platform to demonstrate the mining method to the local mining industry.

"Mining companies no longer have to accept the fact ore dilution is unavoidable because it can be virtually eliminated once they decide to employ the Thermal Fragmentation mining method. We are quite fortunate considering that our business model is poised to be implemented as a complement within mining operations currently using room & pillar, shrinkage or long-hole mining methods. The demand for our mining method is growing steadily as companies seek ways to significantly reduce their extraction costs, as a matter of fact we are currently in discussions with several mining companies", stated Mr. Andre Savard, Nippon's President & CEO

Additionally, management wishes to inform its shareholders of renewed interest from industry participants that could potentially lead to the formation of a joint-venture partnership that would be created specifically to bring Nippon's flagship gold property Rocmec 1 into full production, news will be made public as warranted by the outcome of discussions and negotiations.

Nippon is active in the exploration and the development of gold resources in Quebec. The Corporation holds a gold property with resources recognised in accordance with NI43-101, a modular treatment plant and also an exclusive license for the Thermal Fragmentation mining method.

The company's growth strategy is based on:

• ??The development of its gold deposits with the objective of producing revenue from its operations;

• ??Increasing the value of its mining assets by prioritizing the exploration targets; and

• ??The commercialisation and employment of its thermal fragmentation technology.

For additional information:

John Stella, Investor relations (514) 718-7976 jstella@nippondragon.com

Andre Savard, President & CEO (450) 510-4442 asavard@nippondragon.com

Neither 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. This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration and production activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Nippon Dragon Resources Inc. 7055 Taschereau Blvd., suite 500, Brossard (Quebec) J4Z 1A7

Tel: (450) 510-4442 www.nippondragon.com

Copyright (c) 2015 TheNewswire - All rights reserved.