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Dynacor Announces First Quarterly Dividend Payment

Corporate Actions

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2018

Dynacor Gold Mines Inc. (Dynacor)

Symbol: DNG

Toronto Stock Exchange (TSX)

OTC: DNGDF

Shares outstanding: 39,713,877

PR-2018-08-19

DYNACOR ANNOUNCES FIRST QUARTERLY DIVIDEND PAYMENT

MONTREAL, QUEBEC – August 21, 2018 – Dynacor Gold Mines Inc. (TSX: DNG)

(OTC: DNGDF) (Dynacor or the Corporation) is pleased to announce today that its

Board of Directors (Board) has approved the initiation of quarterly cash dividends to its

shareholders and the declaration of the first cash dividend in the company's history. The

dividend of CAD 0.01 per common share, is payable on October 1, 2018 to shareholders

of record on September 20, 2018.

Dynacor is one of the largest ore purchasing processors in Peru . With its new ore

processing facility operating at near full capacity, the Corporation is forecasting 2018 to

be its best year on reco rd. Dynacor’s stable business model is proven to withstand the

volatility of the gold price. The Corporation is free of debt, in a healthy financial situation

and working towards its 30th consecutive quarter of profits.

President and CEO, Jean Martineau states, “Our team has worked very hard to build the

Corporation to what it is today. Our solid financial situation and leadership position in our

market tells us the time is right to begin what we believe will be a lasting quarterly dividend

payment initiative. We have a strong shareholder base that has loyally provided their

support over the years. I am especially pleased to say that this long -awaited dividend

declaration together with the Corporation’s recently announced share repurchase

program are part of our strategic plan to maximize returns to our deserving shareholders”.

The declaration and payment of dividends is at the discretion of the Board and will depend

on the Corporation’s financial results, cash requirements, future prospects and other

factors deemed relevant by the Board.

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The Corporation’s dividend payments will qualify as an ‘eligible dividend’ for Canadian

income tax purposes.

ABOUT DYNACOR GOLD MINES INC.

Dynacor Gold Mines Inc. is a gold production corporation headquartered in Montreal, Canada. The

corporation is engaged in production through its government approved ore processing operations. At

present, Dynacor produces and explores in Peru where its mana gement team has decades of experience

and expertise. In 2017, Dynacor produced 79,897 ounces of gold, a 9% increase as compared with 2016

(73,477 ounces). Dynacor trades on the Toronto Stock Exchange (DNG) and the OTC in the United States

under the symbol (DNGDF).

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: facebook.com/DynacorGoldMines

For more information, please contact: Dynacor Gold Mines Inc.

Jean Martineau

President and CEO

#1105, 625 René-Lévesque Blvd.

Dynacor Gold Mines Inc.

Montreal, Quebec H3B 1R2

T: 514-393-9000 ext. 228

Dale Nejmeldeen

Director, Investor Relations

Dynacor Gold Mines Inc.

T: 604.492.0099 | M: 604.562.1348

E: [email protected]