Dynacor reported that it has received positive geophysical results which coincide with the surface gold anomalies previously discovered at the Tumipampa project in Peru. Upon receipt of the drilling permit from the Peruvian MEM, (Ministry of Energy and Mines) Dynacor will immediately commence drilling. The decision to survey was taken in March 2018 and was conducted by Valdor Sudamérica SAC. An IP (induced Polarization) geophysics survey was outlined to cover the disseminated zone which includes the Breccia Sumac, the Oro Baritina grid, and other mineralized quartzites zones of Tumipampa. Planned drilling: the first phase of twelve (12) holes: Totalling 4410 meters; Priority 1 targets to be 2910 m (8 holes); Priority 2 targets to be 1500 m (4 holes); Priority 1 Targets (Disseminated Zone) The positive geophysical and surface channel results have defined six (6) shallow high priority drill targets on the Breccia Sumac. The drill targets are plotted to intersect with the higher value geophysical readings and surface channel location reporting high anomaly of gold results collected in the past. The Breccia Sumac drill targets: to drill chargeability anomalies near the surface Down to 300 m on the lines L0, L200W, L300W, L525W and L400E Esperanza Fault: One (1) high-priority drill target due to the positive geophysical result related to the extension of the Esperanza Fault. To drill chargeability and resistivity anomalies near the surface: Down to 200 m on the line L0E; Diana Fault: One (1) additional high priority drill target is defined in the Diana Fault which may be related to the Breccia Sumac anomalies. To drill chargeability and resistivity anomalies near the surface: Down to 300 m on the line L400E; Priority 2 Targets. Four additional (4) drill targets totalling 1500 m will test other high geophysical anomalies along the sections L400E, L700E, L800E and L1100E. The planning of the phase two drilling program will commence after the reception of the assay results from the first phase. In the first quarter of 2018, the Corporation applied for an exploration permit covering an extension of the Tumipampa property. Due to last year's regulation changes, all exploration projects in the Peruvian mining sector are delayed. To date, all studies and required data, have been submitted to the Peruvian MEM. Upon receipt of the permit, Dynacor will immediately begin drilling on the Breccia Sumac, disseminated and mineralized quartzites. As part of the working plan, Dynacor will purchase the mineralized material from the artisanal miners which will then be processed at its Veta Dorada plant in Chala, in Peru.

Dynacor's production outlook in 2019 reflects stable gold production with an increase to 82,000 - 92,000 ounces from 2018's production of 81,314 ounces.