Dynacor files its audited consolidated financial statements and announces fourth quarter and year-end results



    Dynacor Mines Inc. (dynacor)
    Symbol: DYN
    Toronto Stock Exchange

    MONTREAL, April 13 /CNW Telbec/ - On April 12, 2007, Dynacor has filed
its audited consolidated financial statements for the year ended December 31,
2006 and the other required documents with the regulatory authorities. Dynacor
expects that the cease-trade order issued by the regulatory authorities will
be lifted early next week.

    OVERVIEW

    Dynacor is a public company listed on the Toronto Stock Exchange under
the symbol DYN. It has been involved in acquisition, exploration, development
and operation of mining properties in Peru for the past 11 years.
    The Company is mainly active in southern Peru with gold production
derived from custom milling operations at the Acari plant, and in northern
Peru with the Pasto Bueno tungsten mine where pre-production has begun in
September 2006. The first container of concentrate was shipped in October 2006
and that year, the sales of concentrate represented $1,235,460. This amount
was reduced from the related deferred exploration according to accounting
policies.

    GOLD PRODUCTION

    In 2005 and 2006, gold sales revenues are derived from ore purchased from
local miners. These sales and related costs are recorded in the consolidated
statements of earnings.
    Total gold production derived from ore purchased from local miners was
14,312 ounces for 2006 compared to 14,301 ounces for 2005. Total gold
production was as follows:

    
                                                          2006          2005
                                                   ------------  ------------

    Gold sale                                      $ 9,394,817   $ 7,497,786
    Cost of gold sale                                8,406,253     6,464,807
                                                   ------------  ------------

    Margin                                         $   988,564   $ 1,032,979
                                                   ------------  ------------
                                                   ------------  ------------


    OUTLOOK

    Pasto Bueno

    Since September 20, 2006, production is in excess of 50 tonnes/day.
Production is expected to increase in order to achieve, by the second quarter
of 2007, the maximum capacity of 250 tonnes/day.

    Acari

    Over the next months, Dynacor plans to increase the mill capacity at Acari
from 100 t/d to 130 t/d and reach a gold production of 25,000 ounces per year
through custom milling operations.

    Spin-off

    On February 20, 2007, the Company announced its intention to roll over its
gold assets into a new subsidiary and to give its shareholders ownership of
such subsidiary. Dynacor will continue to focus on developing its tungsten
production at the Pasto Bueno mine, in Peru.
    The new company, to be named later, will hold all the current gold assets
of Dynacor, namely the Acari property and mill, and all the gold exploration
properties, which include the Tumipampa and Casaden properties.

    OPERATING ACTIVITIES

    For the year ended December 31, 2006, the Company reported a net loss of
$2,978,470 compared to a net loss of $592,763 during the same period in 2005.
The gross margin decreased from $1,032,979 in the year ended December 31, 2005
to $988,564 for the same period in 2006. The increase of the loss is due to
general and administrative expenses that have increased to $2,025,796 in 2006
compared to $1,048,849 in 2005. This increase is due to a rise in activities
related to the start-up of production at the Pasto Bueno mill. In addition, a
charge of $135,604 for foreign exchange loss was recorded in 2006 compared to
$54,214 in 2005. Also, a charge of $1,220,100 for stock-based compensation was
recorded during the year ended December 31, 2006 compared to nil during the
same period in 2005. This factor has contributed to the increase in the loss
for the year.
    General and administrative expenses increased to $2,025,796 for the year
ended December 31, 2006 compared to $1,048,849 for the year 2005. The increase
is due mainly to office expenses and general exploration - Peru that have
increased by $189,039 due to the set-up of a corporate structure to include
the Pasto Bueno operation. Exploration expenses not related to specific
properties owned by the Company are presented in the table above under office
expenses and general exploration in Peru.

    General and Administrative Expenses

                                                          2006          2005
                                                   ------------  ------------

    Professional fees                              $   324,264   $   195,015
    Office expenses - Canada                            93,580        72,413
    Office expenses and general exploration
     - Peru                                            888,805       343,642
    Travel and representation                          124,056        77,297
    Salaries and remuneration                          304,174       239,782
    Transfer agent and listing fees                    290,917       120,700
                                                   ------------  ------------

    Total general and administrative expenses      $ 2,025,796   $ 1,048,849
                                                   ------------  ------------
                                                   ------------  ------------
    


    Assets

    The value of properties, plants and equipments increased by $1,845,796,
and amounted to $3,211,067 as at December 31, 2006 compared to $1,365,271 as
at December 31, 2005, due in part to the rehabilitation of the Pasto Bueno
mill, the purchase of mining equipment and the purchase of a building in Lima.
    Deferred exploration and development expenses increased by $2,021,655
compared to $868,205 as at December 31, 2005, due mainly to additional
exploration work done on the Pasto Bueno mine for $3,052,977.

    Shareholder's Equity

    Increase in the shareholder's equity for the year ended December 31, 2006
comes from the issuance of 29,639,539 common shares through private placements
for a gross total of $9,055,122 less issuance fees of $703,256 for net
proceeds of $8,351,866. The importance of the cost of issuance fees is mainly
due to the adjustment of the value of the warrants granted with the
Black-Scholes model.




For further information:

For further information: Marc Blais, President, Dynacor Mines Inc.,
(450) 667-3224; Jean Martineau, Chairman of the Board, Dynacor Mines Inc.,
(450) 667-3224; Renmark Financial Communications Inc.: Danielle Velez,
dvelez@renmarkfinancial.com; Christina Lalli, clalli@renmarkfinancial.com;
Médias: Vanessa Napoli, vnapoli@renmarkfinancial.com, (514) 939-3989, Fax:
(514) 939-3717; www.renmarkfinancial.com

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