2013 IR Outlook

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Looking ahead - Investor Relations Outlook 2013

Thank you for your support of Dynacor Gold Mines Inc. In the last few months, the growth of your company has been significant. 2012 was a signifying year for Dynacor. Strong growth in production and earnings laid a foundation, allowing Dynacor to act on new, larger-scale ore-processing and exploration operations in 2013 and beyond. Dynacor’s team confidently piloted the Company beyond management’s 2012 production guidance of 49,000 ounces. This milestone was reached in the early fourth quarter, meeting a key commitment to shareholders and enabling the Company to expedite equipment orders for the new mill expected to be producing by mid-2013.

Dynacor’s stock price gained 72 percent during the year and is continuing to climb in early 2013 ($1.50 as of 08/01/2013). This is indeed an achievement for what was considered by some the worst year recorded in recent history for the junior resource sector. I am pleased to announce Dynacor was the Globe’s "third best" stock price performer on the 2012 TSX Mining and Precious Metals list.

There are two spots within our sights for 2013 and you can be assured we will be doing everything in our power to achieve the overall lead position. We are not only eager to continue but also expect to continue on this upward path of building shareholder wealth in 2013.

The new season ahead will be the catalyst to greater returns as Dynacor looks forward to unearthing its highly anticipated drill results from Tumipampa coupled with growing gold and silver sales from our robust ore-processing division. A brand new second mill is expected to be in commercial production in the latter half of 2013; initially operating at full capacity of 300 tonnes per day, this alone will generate a minimum of 75,000 ounces of gold based on historic grades and recovery rates. Notably our grades and profit margins have been steadily rising and we look to continue with this trend towards a healthy $300-350+/oz. of cash gross margins (as compared to last quarter reported $317/oz.).

In the last three years, we issued 11, 15 and 17 press releases respectively. With the Company’s potential world class deposit Tumipampa back in the limelight, we will come to the market with an even greater flow of news while staying true to our course of increased market awareness and transparency. With a busy season full of drill results coming from Tumipampa and surrounding projects, operational updates from the ore-processing division and further expansion via the new mill - the news will be flowing in 2013.

Meanwhile Dynacor’s strategic advantage in the junior resource sector is starting to resonate throughout the market; however, we are far from our fair valuation considering the drills are turning at Tumipampa, further growing the ore-processing division in 2013 as well as the Company is about to announce an all-time best earnings report for 2012. EPS growth at DNG is improving and is above the industry average. For the first three quarters of 2012, EPS was a record-breaking $0.16. We are undervalued.

Dynacor’s business plan called for establishing a solid base of cash flow via gold and silver sales to advance our world-class exploration project, Tumipampa. We began by purchasing ore from small scale Peruvian producers and applied new technologies to optimize and expand production. We have grown our production and have been cash flow- and earnings-positive in the last three years.

Dynacor offers the lower risk and growth play of a solid cash flowing business model while at the same time it offers our shareholders the potential to reap the explosive rewards of an exploration stock via the drill results. The Company is truly in a niche of its own; therefore, market valuation, in the opinion of many, is not yet justified. The Company’s current market capitalization is only $53.7 million.

The company has made tremendous progress in 2012, including the following:

1. Generated earnings (Q3/2012 reported $0.08 earnings per share);
2. Increased the ore-processing profit per ounce (Q3-2012 reported $317/ounce);
3. Increased the land area (23%) surrounding the Tumipampa deposit;
4. Increased cash and gold position (Q3-2012 reported working capital of $12.1 million);
5. Commenced in early December a drilling campaign with first drill results expected in early 2013;
6. Considerably surpassed 2012 production guidance of 49,000 ounces (Oct reported 48,839 oz.);
7. Placed 3rd best stock price performer on the Globe’s TSX Precious Metals/Mining list.

Dynacor's position for 2013 will not be outdone by 2012's accomplishments, including the following:

1. Release highly anticipated drill results from Tumipampa skarn/porphyry zone 4;
2. Release results from underground cross-cut program of Manto Dorado;
3. Publish Tumipampa’s first ever NI 43-101 resource calculation;
4. Expand ore processing business to 300+ tonnes per day TPD;
5. Connect new mill to National Grid/lowering power cost to $0.08/kw from $0.25/kw;
6. Preparation for two extra 150 TPD ball mills to new mill in 2014 totalling 600 TPD (150,000 oz/yr);
7. Continue to grow earnings and cash flow per share.

Wishing you a very Happy, Healthy and Prosperous New Year!


For further information, please contact:

Dale Nejmeldeen | Manager, Investor Relations

Dynacor Gold Mines Inc.
T: 604.492.0099 | M: 604.562.1348 | F: 604.608.9223
E: nejmeldeen@dynacorgold.com
#510-2000 McGill College
Montreal, Quebec H3A 3H3

Website: http://www.dynacorgold.com
Twitter: http://twitter.com/DynacorGold
Facebook: facebook.com/DynacorGoldMines