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Vancouver, British Columbia–(Newsfile Corp. – November 17, 2021) – Montreal-based Dynacor Gold Mines (TSX: DNG), a dividend-paying industrial gold ore processor, reported a new quarterly record for gold sales. Unaudited sales of gold for the 3rd quarter ended September 30, 2021 came in at US$61.9 million, an increase of US$37.8 million or 157% over the US$24.1 million reported for the 3rd quarter ended September 30, 2020.

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This increase is mainly due to a growing volume of gold sold due to record processing levels, which combined with a relatively stable gold price has enabled the company to increase its quarterly sales for the fifth consecutive quarter. Given that production for the 3rd quarter of 2020 was reduced following the 3-month shut-down due to the Covid-19 crisis, the current quarter is still up US$19.1 million or 45% when compared to the US$42.8 million reported for the previous quarter ending June 30, 2021, which was also a record.

Net income for the current quarter was US$3.5 million (US$0.09 per share), compared to US$2.2 million (US$0.06 per share) for the previous quarter, and US$1.2 million (US$0.03 per share) for the 3rd quarter in 2020. The current quarter was the first quarter with the Veta Dorado plant running at its new capacity of 430 tonnes per day, following its expansion. This is an increase in throughput of 25% above the previous 345 tonnes per day capacity.

Ore purchasing and processing continued to be very strong in the 3rd quarter, with 40,000 tonnes supplied by artisanal miners, another record, and more than 36,000 tonnes processed. Since the beginning of 2021, Dynacor has attracted ore in excess of its increased throughput capacity, ensuring a continuous increase in ore inventory, which now sits at more than 14,000 tonnes, representing more than one month of production. This will enable Dynacor to continue running at full capacity until the year-end and into the first quarter of 2022.

Following this unprecedented productive quarter, the company is on its way to an historic annual production of more than 100,000 gold equivalent ounces for 2021.

In September, the company announced revised financial guidance with projected sales of between US185 and US$190 million, and net income ranging from US$9.0 to US$9.5 million for 2021, assuming the average price for gold remains around US$1,785 per ounce, and the company continues to receive a consistent average grade of ore. It also assumes a stable exchange rate between the Peruvian sol, and the US and Canadian dollars, with the US/Canadian exchange rate averaging US$1:00 to CDN$1:25.

Based on these exceptional results, Dynacor has increased its dividend for the second time this year, and the third increase since the dividend was initiated in October 2018. The monthly dividend will increase from CDN$0.67 cents to CDN$0.83 cents or from 8 cents to 10 cents on an annual basis, a 25% increase.

Dynacor, a founding partner in the PX IMPACT® gold program, produces environmental and socially responsive gold. A growing number of supportive firms from the fine luxury jewelry, watchmakers and investment sectors pay a small premium for this gold which provides direct investment to develop health and education projects for the artisanal and small-scale miner’s communities.

With decades of experience in Peru, consistently operating and exporting gold since 1998, the company intends to expand its processing operations to other jurisdictions. The company also owns the advanced stage Tumipampa gold exploration property in south central Peru’s Apurimac department.

As at September 30th, Dynacor’s working capital was US$34.2 million, including US$17.8 million in cash. The shares are currently trading at $3.15. For more information, please visit the company’s website www.dynacor.com, or contact the company at 514-393-9000 ext 230 or by email at [email protected].

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