January 2018 Investor Presentation
A Gold Cash Flow Business Model A lower risk $0.33 gold producer cash flow $13M+ CF per share annualized annualized A Debt-Free Cash Generator Paid off US$ 6.3 26 consecutive million of debt quarters of profit in last 5 months *CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25 dynacor.com DNG – TSX | DNGDF - OTC (Q) 2
Capital Market Summary Market Summary Stock Price (Year High-Low) $1.50 - $2.75 Ticker Symbol DNG - TSX Shares Outstanding (Basic) 39M Warrants Nil Average Daily Volume (Shares) 90,513 Monthly Dividend TBD Dividend Yield TBD Director & Senior Management Ownership 4% Capital Structure Market Capitalization 74M Enterprise Value (As of Sept 30, 2017) 82M Debt Nil dynacor.com DNG – TSX | DNGDF - OTC (Q) 3
Shareholder Return 2008-2018 Q3-2018 Implied Share Price See Slide #9 DNG-TSX stock price S/P TSX Global Gold Index 32% annualized return since 2200% • Continues to profit through the 2008 2000% cycles of the gold market 1800% 1600% 1558% 1400% • Built to survive and prosper with or 1200% 1000% without a gold bull environment 800% 600% 400% 200% -38% 0% -200% dynacor.com DNG – TSX | DNGDF - OTC (Q) 4
The Cash Flow Proven Dynacor Model 3 Weigh, assay and Pay miners after 2 screen ore 24 hours from deliveries for delivery and gold content process ore at our new through mill modernized plant 4 After 10-14 days of Receive ore 1 processing shipments from 5 more than 400 Receive payment government for gold dore bars registered from strategic Peruvian artisanal partner, PX gold miners Precinox dynacor.com DNG – TSX | DNGDF - OTC (Q) 5
Record High Gold Production Monthly gold production ounces (Jan-Dec 2017) 8,910 9,000 79,897 ounces +71% 7,905 produced in 2017 8,000 7,253 7,192 7,042 6,895 7,000 6,733 6,287 24,068 ounces produced 6,206 6,000 in Q4-2017, an 5,208 5,181 annualized basis of 5,087 5,000 nearly 100,000 ounces 4,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 6
Ore Supply and Deliveries Growing Average Monthly Ore Processing Rate (TPD) in 2017 310 300 2018 goal ramp up to +62% 285 360 TPD 270 265 265 (tonnes per day) 260 245 235 220 215 210 200 190 185 185 180 185 160 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *TPD is rounded to the nearest five (5) units dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 7
Rising Cash Flow & Compelling Value Q4 Q1 Q2 Q3 Cash Flow Per Ounce $CAD $CAD 2016 2017 2017 2017 165 CF From Operations 1,067 2,326 1,917 3,268 140 115 CF Per 0.03 0.06 0.05 0.083 159 Share 90 136 105 CF 65 11 11 9 9 51 Multiple 40 Currently Trading With A Multiple of 8.9 Times Cash Flow dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 8
Annualizing CF On Last Quarter Report Assumes Q3 2018 Last 2 CAD$ Q3 2018 Implied 10-13 Q3 2017 Yrs Price to CF Share (Millions) (TTM) Multiple Range times Price $0.33 Cash Flow From 3.3 13.0 cash flow $3.30 10-13 Operations to per share $4.16 Cash Flow (TTM) 0.08 0.33 Per Share Gross Margin % 14% 13% 12% +40% 15 10% 10 5 Q4-16 Q1-17 Q2-17 Q3-17 *CF (Cash Flow) based on Q3-2017 cash flow from operating activities before change in working capital annualized; US to CAD exchange 1.25 dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 9
Strong Strategic Partner With Swiss Co PX Precinox (www.pxgroup.com) Is one of 10 companies under the PX Group • Experts in precious metal refining • Mastered the process of high quality refining to finishing • A leading Swiss producer of gold bars • Partner of the PX Impact Gold Program • dynacor.com DNG – TSX | DNGDF - OTC (Q) 10
Circulating New PX Impact Gold Environmental, social and ethical Guarantees complete traceability practices that respect human rights are an across the gold ore supply chain coming integral part of the PX Impact Gold program from government registered miners in Peru PX Impact An investment 100% of the premium flows back premium is paid into Equals to our the fund and reinvested miner’s into Dynacor’s mining Ethical Gold communities communities A lasting & positive contribution The fund finances projects to the economic, social and environmental in health, education, economic dev & the development of our mining communities environment of the mining communities dynacor.com DNG – TSX | DNGDF - OTC (Q) 11
Strategic Plan Short Term Strategy > 3 – 12 Months Self fund throughput growth to 360 TPD (CAPEX <$1M) • Propel Dynacor to largest gold ore processer in Peru (currently #2) • Define new dividend policy • Execute drill plan & advance flagship gold project, Tumipampa • Medium Term Strategy > 2 – 5 Years Expand throughput growth to 600+ TPD • Bring to fruition low risk development plan on gold project, Tumipampa • Establish world renown brand as socially accountable high quality gold • Target yield contraction through responsible shareholder dilution plan and • per share growth (a sustainable/steady dividend history) dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 12
Our Exploration Asset, Tumipampa • 500 km southeast of Lima • 9,756 ha • Surface results pending • Drilling planned for 2018 (drill results) • 21,610 meters of drill results • 2,881 meters of underground workings dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 13
Concession Map BEER CREEK GOLDEN IDEAL GOLD MINING SUPER STRONG PROYECTO TUMIPAMPA FRESNILLO PERU MINERA DEL NORTE SA CONCESSION TRIVEÑO TAPAIRIHUAJA SOUTHERNPERU MAP (VETADORADA) TUMIPAMPA BARRICK DISEMI MINAD NADO V 2014 FRESNILLO PERU TUMIPAMPA TUMIPAMPA TUMIPAMPA SOUTHERN X 2014 VB 2014 IV 2014 BARRICK ANGLOAMERICAN ORTEGA TUMIPAMPA TUMIPAMPA III 2014 XI 2014 MERIDIAN TUMIPAMPA CONCESIONES SOUTHERN (HORIZONTE) ORTEGA MERIDIAN VI 2014 TUMIPAMPA ORTEGA PERU (HORIZONTE) 9755.60 Aprox. Has -Área NICOLE 11 neta Total 22 Concesiones TUMIPAMPA TUMIPAMPA IX 2014 IAM GOLD VII 2014 ORTEGA CONCESIONES PERSONAS NATURALES Y/O PPM TUMIPAMPA TUMIPAMPA VIII 2014 XII 2014 ZONAS LIBRES ORTEGA CHANCADORA CENTAURO MERIDIAN PETITORIOS EN DISPUTA (HORIZONTE) BARRICK DESDE EL 2014 0 1 2km Escala Gráfica dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 14
Geological Map Of Disseminated Zone Caliza Km-Fe N Laguna patacocha Cuarzomonzonita 19.49 g/t Au 18.18 g/t Au 11.30 g/t Au 3.57 g/t Au 8.21 g/t Au 5.06 g/t Au 10.94 g/t Au Veta Cuyana 7.63 g/t Au 3.17 g/t Au 4.56 g/t Au 16.79 g/t Au Mármol Manto Lucha 28.60 g/t Au ANOMALIA 5 Km-Fe ANOMALIA 2 6.15 g/t Au 31.16 g/t Au Veta sondoro 22.09 g/t Au ANOMALIA 1 ANOMALIA 3 7.38 g/t Au ANOMALIA 6 4.86 g/t Au 3.35 g/t Au 9.01 g/t Au SECCION L 37800 3.66 g/t Au 1.26 %/Cu Cuerpo Sumac ANOMALIA 4 35. 58 g/t Au Bx. Adriana LEYENDA CALIZA (Ki-Fe) BOFEDAL CUARZO MONZONITA CUARZO DIORITA MARMOL (Ki- Fe) CUARCITA Au (gr/tn) 0 1 KM EXOSKARN Sym >=Minimum <Maximum 0.00 < 0.05 CUATERNARIO 0.05 0.10 LAGUNAS 0.10 0.30 ANOMALIA CARGABILIDAD 0.30 1.00 FALLA 1.00 3.00 VETAS >= 3.00 100.00 dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 15
Investment In Dynacor Near Term Catalysts ✓ Recent debt free status removes interest from 2018 financials ✓ Lower costs and higher earnings with greater gold production ✓ 2018 quarterly financials comparing to 2017 start up year ✓ Annualized CF per share of CAD $0.33 (P/CF range 10-13X) ✓ Defining new dividend policy (increases ROI) ✓ Renewing Tumipampa drill campaign (drill results) dynacor.com DNG – TSX | DNGDF - OTC (Q) dynacor.com 16
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