Simon King's squad competed with England in every area of the game, the forwards doing particularly well against a strong English pack.
Wales were never more than two scores behind England and trailing 18-15 moments from time, Wales were camped on the English try-line and the result may well have been different had Ashley Beck's pass not been intercepted by Wasps wing Christian Wade who ran 90 metres to score and seal the game.
Wales were 13-5 down at half-time with a try for Ospreys wing Liam Powell following a try, conversion and two penalties from England outside half Freddie Burns.
The young Dragons hit back straight after the break with James Loxton's first try. The Blues fullback showed great athleticism to take the ball in the air and stepped around the last line of English defence to score, taking Wales to within three points of the home side at 10-13. The sides both scored again, England touching down through London Irish lock James Gibson and Wales fullback James Loxton adding his second score.
Wales then weathered an English storm to find themselves in the driving seat in those dying minutes, prop Dan Watchurst surging forward three metres from the line before that stray pass found England wing Wade for the breakaway try with Tom Casson converting.
Wales were left to rue some missed kicks but Head Coach Simon King says there is much to build on before they face Scotland at Ebbw Vale on March 16th (1pm).
"We've got a few things to work on between now and the Scotland match but for the boys to come back against England at Worcester to be in a position to win the game two minutes from time is pleasing.
"The boys showed a level of character, effort and commitment which was a credit to them."
Following the home match against Scotland in two weeks' time, Wales travel to Cork for the U18 Six Nations festival over Easter.
Tries: Freddie Burns, James Gibson, Christian Wade
Cons: Freddie Burns, Tom Casson
Pens: Freddie Burns (2)
Tries: James Loxton (2), Liam Powell