Dynacor Begins Operating its 300-tpd Veta Dorada Gold Ore Processing Plant

MONTREAL, QUEBEC--(Marketwired - Sep 30, 2016) - Dynacor Gold Mines Inc. (TSX:DNG) (OTC:DNGDF) (Dynacor or the Corporation) is particularly pleased to announce that it has begun operating its modern Veta Dorada ore processing plant located in Chala, Peru. Initial ore purchases from its more than 200 small and medium sized miners are going well and according to expectations. The Corporation expects to pour its first gold bar shortly.

Start-up Timeline

• Ore purchasing and crushing at the Veta Dorada plant (Chala) was initiated on the 17^th September;
• Production at Huanca stopped on the 24^th of September;
• Key personnel were transferred to Chala;
• Production at Veta Dorada began on Monday the 26^th of September;
• Veta Dorada plant started operating at an initial rate of 250 tpd without any problem; and
• Huanca plant: Recovery of the gold in the circuit and clean-up of the plant for the next 2-3 weeks.

Jean Martineau the Company's CEO and President recently stated "Starting up the Veta Dorada ore processing plant in Chala is a game changer for Dynacor. We only lost one and a half days of production during the transfer process and I would personally like to thank all our employees for all their hard work that has made this possible. We are looking forward to reaching commercial production at the plant's 300-tpd full capacity as soon as possible."

The Veta Dorada plant is a fully permitted 300-tpd (102,000-tpy) ore processing facility that has been specifically designed for processing gold mineralized ore from multiple ore suppliers. The carbon in-pulp (CIP) plant also includes a state of the art pressurized desorption unit, a fully equipped laboratory and a foundry.

ABOUT DYNACOR GOLD MINES INC.

Dynacor is a gold ore-processing and exploration Corporation active in Peru since 1996. The Corporation differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant. Dynacor's basic share count at 38.5 million outstanding is in the lowest quartile of the resource sector. The Corporation's assets include three exploration properties, including the advanced high-grade gold Tumipampa property, a 85,000 TPY gold and silver ore processing mill at Huanca and its new now operating Veta Dorada 300-tpd (102,000-tpy) ore processing plant located in Chala (Southern Peru). The Corporation's strength and competitive advantage comes with the experience and knowledge it has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.

FORWARD-LOOKING INFORMATION

Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release.

Dynacor Gold Mines Inc. (TSX:DNG)

Website: http://www.dynacor.com

Twitter: http://twitter.com/DynacorGold

Facebook: http://www.facebook.com/pages/Dynacor-Gold-Mines-Inc/222350787793085

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Contact

Dynacor Gold Mines Inc.
Jean Martineau
President and CEO
514-393-9000 Ext. 228 or 224
Dale Nejmeldeen
Director, Investor Relations
604-492-0099
M: 604-562-1348
nejmeldeen@dynacor.com