Dynacor Ends 2017 Surpassing US $100 M in Sales and Reports a Net Income of US$ 3.8 M

MONTREAL, QUEBEC--(Marketwired - March 29, 2018) - Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) a Corporation with gold and silver ore processing operations and exploration projects in Peru, has released its audited consolidated financial statements and the management's discussion and analysis (MD&A) for the year ended December 31, 2017.

These documents have been filed electronically with SEDAR at www.sedar.com and will be available on the Corporation's website www.dynacor.com.

(All figures in this press release are in millions of US$ unless stated otherwise. Earnings per share and cash-flow per share are in US$. All variance % are calculated from rounded figures. Some additions might be incorrect due to rounding).

The Corporation ended the year with strength, totalling sales of over $100 M and its seventh consecutive year of profits. Dynacor recorded a net income of $3.8 M ($0.10 per share) in 2017 compared to $3.3 M ($0.09 per share) in 2016, an increase of 15.2%.

2017 Highlights

Strategic

• Dynacor completed its first full year of processing activities at the Veta Dorada Plant without any operation issues;
• The long-term senior secured credit facility was completely repaid in December 2017, thirteen months prior to contractual maturity. Dynacor is now debt free.

Operational

• Gold production of 79,897 ounces in 2017, an increase of 8.7%, including an historical quarterly high of 24,066 ounces in Q4-2017;
• Dynacor started the dismantling of the Huanca Metalex plant in Q4-2017.

Financial

• Sales of $101.7 M in 2017 an increase of 11.4% compared to 2016;
• Gross operating margin of $13.4 M (13.2 %) in 2017, an increase of 10.7% compared to 2016;
• Net income of $3.8 M in 2017 ($0.10 per share), an increase of 15.2% compared to 2016;
• EBITDA⁽¹⁾ of $11.2 M, an increase of 24.4% compared to 2016;
• Cash flow from operating activities before change in working capital items of $8.6 M ($0.22 per share⁽²⁾), an increase of 38.7% compared to 2016.

(1) EBITDA: "Earnings before interest, taxes and depreciation" is a non-IFRS financial performance measure with no standard definition under IFRS. It is therefore possible that this measure could not be comparable with a similar measure of another Corporation. The Corporation uses this non-IFRS measure as an indicator of the cash generated by the operations and allows investor to compare the profitability of the Corporation with others by canceling effects of different assets bases, effects due to different tax structures as well as the effects of different capital structures.