Announced on the back cover of Comics Journal #57 (Summer 1980). The ad featured art by artist Michael J. Kaluta (see image in this entry). Copy read: "'Dragon Shadows' / A new chronicle from the secret archives of The Shadow / by Harlan Ellison and Michael Kaluta / A Fantagraphics Publication / Coming This Fall"
Work was never completed and the book was never solicited, especially after Ellison and Fantagraphics' publisher Gary Groth's relationship exploded a few years later. The cover art was later printed as a signed/numbered print (11x17", 750 pieces) by Graphitti Press entitled "Marionettes."
[For more information see The Comics Journal #54, 57, 61, and 82.]