Dynasty is beginning to get a better understanding of the geology, structure and alteration of its Red Valley Project in China.

The company has released new drill results which have returned 5 metres @ 6.23 grams/tonne gold, including 1 metre @ 10.20 grams/tonne gold; 1 metre @ 2.05 grams per tonne gold; 3 metres @ 2.87 grams per tonne gold; 3 metres @ 1.28 grams per tonne gold, including 1 metre @ 2.48 grams per tonne gold and 1 metre @ 1.91 grams per tonne gold.

Dynasty president and CEO Brian McEwen says, "We are very happy with the results to date at Red Valley with some very encouraging drill intersections … that will help us focus in on the core of the gold system in our next program."

The Red Valley project is situated within the Qilian fold belt, a north west-south east trending assemblage of late Proterozoic to Ordovician aged sediments and volcanics.

Major structural trends within the region are north west-south east with less topographically pronounced east west and north east trending cross structures.

Dynasty's previous exploration work identified a zone of surface alteration stretching for nearly 23km with anomalous gold, arsenic, antimony and mercury surface samples. The two main prospects within this zone are the Red Valley and Chuancigou.

The 2006 exploration program at Red Valley is funded by AngloGold Ashanti through an equity financing completed in April. The first diamond drill program at the property focused on the Red Valley and Chuancigou prospects, where Dynasty and its exploration partners have completed 35 diamond drill holes for a total of 5397 m of drilling.To date results have been received for twenty-three drill holes.

Integration of the 2006 drill results received to date, with surface and geophysical data has significantly improved the geologic understanding. As a consequence the company believes that the complex thrust system that controls the mineralization remains largely untested.

At the Red Valley prospect diamond drill holes have mainly tested the hanging wall thrust of a 500m wide duplex with a strike extent of approximately 1.6km. This duplex structure is considered a potential host to a number of gold-bearing shear zones, that collectively have the potential to host a significant gold system.

AngloGold China chief representative Dr Roric Smith says, "The drilling and mapping this year has improved the geologic model, provided encouraging results, but we have only scratched the surface and need to apply our new concepts to further drilling programs."

"There are indications that a larger higher-tenor gold orebody controlled by thrust geometry and rock type is preserved and remains mostly untested.

Dynasty Gold Corporation is a leading Canadian gold exploration company in China with three highly prospective gold properties currently being explored through partnerships with AngloGold Ashanti and Avocet Mining.

Dynasty's Hatu property hosts a NI 43-101 compliant inferred gold resource of 912,600 ounces including 16.9 million tonnes at 1.68 g/t gold, with a 1.0 g/t gold cut-off.