Nippon secures funding for gold production via a Forward Gold Purchase Agreement

Brossard, Quebec / TheNewswire / September 12th, 2016 Nippon Dragon Resources Inc. (the "Corporation" or "Nippon") (TSX-V Symbol: NIP), is pleased to announce that it has secured funding for gold production as detailed in the gold production agreement with Au Consolidated inc. (AC) and made public by way of a press release dated September 6th, 2016.

Funding was secured via a Forward Gold Purchase Agreement ("FPGA") with European buyers. Nippon sold 1200 units at $900.00 per unit, each unit representing one (1) gold ounce. The company intends to complete delivery of the gold ounces to the buyers no later than 14 months following on site mobilization, scheduled for September 2016. The product description of the physical gold to be delivered, shall be, subject to availability, ten ounce ("10 oz.") Gold bars crafted in pure gold (.9999 fine) sourced through reputable refiners. For the purpose of receiving the physical gold, each buyer has agreed to open an account with Kitco Metals Inc.

Nippon is proud of the response from the European buyers whom for decades have considered gold as an attractive investment. Furthermore it demonstrates their confidence in Nippon as they view our exclusive and patented thermal fragmentation process as an efficient and economical method for mining precious metals.

Additionally, considering that the mining operations with the thermal unit will be conducted on surface, Nippon will take this opportunity to showcase the technology to mining companies that have demonstrated a keen interest in implementing the technology within their own operations.

About Nippon

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

Donald Brisebois, President & CEO (450) 510-4442 dbrisebois@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.

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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