http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aDNG-2034282&symbol=DNG&region=C

Dynacor produces 61,274 oz Au in 2012

2013-01-24 11:15 ET - News Release

Mr. Jean Martineau reports

DYNACOR ANNOUNCES BEST MONTHLY, QUARTERLY AND YEARLY GOLD PRODUCTION IN 2012

For the month of December gold production from Dynacor Gold Mines Inc.'s ore processing division achieved a monthly best of 6,437 ounces. Furthermore, fourth quarter 2012 gold production delivered a quarterly best of 18,604 ounces. Fourth quarter 2012 production was 41 per cent higher than the same period last year (13,157 ounces) and was 8 per cent higher than third quarter 2012 due to the availability of higher-gold-grade ore. In 2012, gold production was 61,274 ounces, a 33-per-cent increase from last year and another all-time company high. This represents Dynacor's third consecutive year of 30-per-cent-plus production growth.

During the fourth quarter of 2012, the company averaged 218 tonnes per day while processing 19,360 tonnes of ore at an average gold grade of 1.03 ounces per ton (32.03 grams per tonne gold), compared with an average gold grade of 0.747 ounce per ton (23.23 grams per tonne gold) in the fourth quarter of 2011.

The ore processing division continues to outperform in both gold and silver production. Silver production for the fourth quarter was 43,039 ounces, a quarterly best and 86 per cent above the same period last year. Production for full-year 2012 was 157,863 silver ounces, a 76-per-cent increase over 2011.

                                       Average                          Gold
                                 ore processed     Gold grade    produced(i)
Month                             (tonnes/day)       (oz/ton)       (ounces)

January                                    219          0.655          3,774
February                                   211          0.918          4,747
March                                      217          0.824          4,589
April                                      215          0.817          4,395
May                                        142          0.715          2,663
June                                       220          0.895          5,334
July                                       220          0.941          5,701
August                                     221          0.898          5,709
September                                  220          0.964          5,758
October                                    215          1.004          6,169
November                                   218          1.018          5,998
December                                   220          1.067          6,437

President and chief executive officer of Dynacor, Jean Martineau, commented: "The earnings trend is up, and with a steady gold price, we fully expect this to continue into 2013 and beyond as we are en route to increase production substantially when our new mill at Chala, Peru, starts production. Dynacor expects to begin the construction of its 300-tonne-per-day ore processing facility, shortly. Our auto-financed exploration and drilling campaign at Tumipampa is well under way and could add to the company's value. We are proud of our achievements and would like to thank our employees for their commitment to the success of the company."