Nippon mobilizes thermal fragmentation equipment in Arizona

Brossard, Quebec / TheNewswire / September 6th, 2016 - Nippon Dragon Resources Inc. (the "Company" or "Nippon") (TSX-V Symbol: NIP), is pleased to announce that it has entered into a gold production agreement with Au Consolidated inc. (AC), an Arizona Company.

Nippon will conduct thermal fragmentation operations on selected high grade narrow surface veins at Au Consolidated Inc.'s property located in Cochise County, near Willcox in the State of Arizona, U.S.A.

The initial term of the agreement will terminate once 2000 gold ounces have been extracted from the selected surface veins. Recovered gold ounces will be shared on an 80/20 ratio. Nippon will be entitled to 80% of the gold ounces whereas AC will be entitled to 20% of the gold ounces produced. Once the initial gold production as stipulated in the agreement is reached, a long-term agreement or sale of Nippon's thermal fragmentation unit(s) may be negotiated between the parties.

Donald Brisebois, Nippon's President and CEO stated: 'During my site visit, I was very impressed by the professional work conducted by the geological team, they have identified several gold bearing vein structures that are amenable to our thermal fragmentation mining method.'

Nippon is active in the exploration and the development of gold resources in Quebec. The Corporation holds a gold property with resources recognized 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:

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.

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

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

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