Play the level as Knuckles. Go to level three, and lower the water level with the switch. Next, drop down to level two. Look around until you see the caution sign. Jump over it and drop down the pit behind it. Try not to hit the spring in the pit. Then, go through the short tunnel until you fall in some water. Dive down into it and keep descending. Work your way quickly through the water and underwater tunnels so you do not drown. Near the end of the water there will be a long ascent to the top. Go up as quickly as possible. You will also get Air Necklace the on the way, which allows you breathe underwater. Climb on the walls around you until the Dragon animal is found.

Play the level as Knuckles with Sunglasses, Hammer Gloves, Shovel Claws, and Air Necklace. Work your way around the mine and find all three Chao containers. In the last one is the Dragon. One Chao container is in the highest floor behind a pile of wood. The second is in a tunnel with spiked car. The third is in a room with many ghosts, fire breathing skulls, and falling block (in the rafters). Another Dragon is in the room where the Air Necklace is located, hidden in the upper corner.