Dragon armour is forged in the heart of a volcano by the most skilled of artificers and decorated beyond the skill of any mere mortal artisan. Yet, more than its exquisite form, what makes Dragon armour so desirable are the many potent enchantments that ward against the blows of the enemy.
Source: Warhammer: The Old World Online Rules Index
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A model with this special rule has a 6+ Ward save against any wounds suffered. In addition, a Wizard with this special rule may wear armour without penalty.