Dynacor Commences Skarn Drilling and Excavation of a Cross-Cut at Tumipampa, Peru

MONTREAL, QUEBEC–(Marketwire – Dec. 12, 2012) – Dynacor Gold Mines Inc. (TSX:DNG) (Dynacor or the Company) is pleased to announce that it has received final approval of its exploration permit from the Peruvian mining authorities and that it will immediately begin its diamond drilling campaign on its Tumipampa skarn copper and gold project in southern Peru, and the excavation of the 300-meter cross-cut of the Manto Dorado structure.

Exploration Campaign – fast tracked

Due to the unforeseen delays related to the approval of the Environmental Impact Study and the Exploration permit, the Company has decided to accelerate its drilling campaign and has deployed two (2) drills simultaneously on site. Furthermore, during the summer months, the Company upgraded all the drill site access roads on the property and has built a new all/weather access road to the Tumipampa property. The rainy season is expected during the first quarter (Jan-March 2013) and it is not expected to impact or delay the drilling campaign or the excavation of the cross-cut.

DRILLING SKARN ZONE #4

The twelve-hole drill program totaling 5,600 meters on zone #4 of the skarn has been designed to confirm the depth of mineralization and to verify the high-grade gold and copper mineralization identified from surface channel samples. Grades range from 0.01 to 13.4 g/t gold (Au) and 0.004 to 2.91% copper (Cu) in zone #4. Furthermore, the high magnetic anomaly and geophysical anomalies identified by the 2011 induced polarization (IP) and resistivity geophysical survey (see September 19, 2011 news release) support the Company’s prioritizing of zone #4.

MANTO DORADO CROSS-CUT

The focus of the cross-cut campaign is to upgrade the historical resources of the 500 meter x 380 meter section of the Manto Dorado structure to N1 43-101 compliant resources. The Company will drive a 300-meter long cross-cut (adit) measuring 3.0 meters high by 2.5 meters wide into the mountainside through the Manto Dorado (which was intersected in 2008 by two drill holes with high-grade gold mineralization: 23.8 g/t Au over 1.2 meters and 12.8 g/t Au over 1.4 meters) and towards the Rosa vein (which in 2008 was intersected by a drill hole: 6.3 g/t Au over 2.8 meters). Subsequently, a six-hole underground drill program will first target the Manto Dorado structure with four holes and followed by the Rosa vein with two holes, for a total of 2,400 meters.

Background

The Tumipampa project is located in a fast-developing mining region in southern Peru and is strategically surrounded by global leading mining companies that are developing world class copper and gold skarn/porphyry type deposits. Tumipampa borders a large copper/gold resource consisting of 355 million tonnes at 0.62% Copper held by Southern Copper Corp. Notably in the last few months, Southern Copper Corporation increased the size of their Los Chancas claim by staking land eastward to within 2 km of Tumipampa’s border. During the spring of 2012, Dynacor extended its own land holdings which in effect adjoins the two companies’ assets (see May 08, 2012 news release). Currently all of the land around Tumipampa is claimed by major mining companies such as Southern Copper Corporation, Buenaventura, Golden Ideal Gold Mining (China), Super Strong Mining (China), and Bear Creek Mining.

This Press Release has been read and approved by Alonso Sanchez, P. Eng. and Chief Geologist for Dynacor Gold Mines. He acts as the qualified person (“QP”) for the Company and is a geologist affiliated to the American Institute of Professional Geologists (AIPG).

ABOUT DYNACOR GOLD MINES INC.

Dynacor is a gold exploration and mining company active in Peru through its subsidiaries since 1996. The Company differentiates itself from pure exploration companies as it also generates income and cash flow from its wholly owned ore processing plant in Peru. The Company’s assets include six exploration properties, including the Tumipampa property, along with its recently upgraded 220 tpd ore processing mill at Acari. Dynacor’s mill produces gold from the processing of ore purchased from local producers. Dynacor’s strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.

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.

Website:http://www.dynacorgold.com

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