DGE Diagem (Tier2)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES

Sea Dragon Energy Inc. ("Sea Dragon" or the "Company") (TSX VENTURE:SDX)
announces that, further to its press release of January 13, 2010, it has now
paid Dana Gas Egypt Ltd. ("DGE") the sum of US$28.48 million for its purchase of
a fifty (50%) percent participating interest in the Kom Ombo (Block-2)
Concession, located approximately 1,000 km south of Cairo on the West Bank of
the Nile River (the "Kom Ombo Concession"). Sea Dragon had previously paid an
initial instalment of US$10 million to DGE in January 2010 concurrent with
becoming the registered holder of the Kom Ombo Concession under Egyptian law.
There continues to be a small balance due from the Company to DGE of
approximately $3.0 million which will be paid once all working capital and other
adjustments have been finalized between the parties.


The aggregate purchase price for the Company's 50% participating interest in the
Kom Ombo Concession is approximately US$41.27 million, inclusive of Sea Dragon's
reimbursement to DGE of approximately US$4.0 million of Sea Dragon's
participating interest share of costs paid by DGE for the period after the
effective date and prior to the closing date and inclusive of certain working
capital adjustments of approximately US$4.0 million. Under the terms of the
acquisition, Sea Dragon is also responsible to pay approximately $4.0 million of
DGE's share of costs incurred after the effective date.


Commenting on the acquisition of the Kom Ombo Concession, Mr. Said Arrata, Sea
Dragon's Chairman and CEO said: "We are delighted with this significant
acquisition for Sea Dragon. We have already commenced work with our partners in
preparing on our development drilling programme in the 2nd quarter of 2010.
Plans for the Al-Baraka oil field will include the drilling of some 30
development wells over the next several years. Horizontal drilling and
specialized fracturing are the techniques being considered in order to maximize
production rates and oil recovery."


Sea Dragon is an international exploration and development company with a focus
on North Africa and Sub-Saharan Africa and offices in Calgary, Canada and Cairo,
Egypt.


For further information please see the website of the Company at
www.seadragonenergy.com or the Company's filed documents at
http://www.sedar.com.


Certain statements contained in this press release constitute "forward-looking
statements" as such term is used in applicable Canadian and US securities laws.
These statements relate to analyses and other information that are based upon
forecasts of future results, estimates of amounts not yet determinable and
assumptions of management. In particular, statements concerning the development
of the Al Baraka field and exploration of the Kom Ombo Concession and events or
projections referenced or implied herein should be viewed as forward-looking
statements.


Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or are not statements of historical fact and should be viewed as
"forward-looking statements". Such forward looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Corporation to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and other factors
include, among others, costs and timing of exploration and production
development, availability of capital to fund exploration and production
development; political, social and other risks inherent in carrying on business
in a foreign jurisdiction, the effects of a recessionary economy and such other
business risks as discussed herein and other publicly filed disclosure
documents. Although the Corporation has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate as actual results and future events could vary or differ materially
from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements contained in this news release.


Forward-looking statements are made based on management's beliefs, estimates and
opinions on the date the statements are made and the Corporation undertakes no
obligation to update forward-looking statements and if these beliefs, estimates
and opinions or other circumstances should change, except as required by
applicable law.


This news release contains forward-looking statements based on assumptions,
uncertainties and management's best estimates of future events. When used
herein, words such as "intended" and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are based on
assumptions by and information available to the Corporation. Investors are
cautioned that such forward-looking statements involve risks and uncertainties.
Actual results may differ materially from those currently anticipated. The
forward-looking statements contained herein are expressly qualified by this
cautionary statement.

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