Mr. Jean Martineau reports

DYNACOR SIGNS SHARE PURCHASE AGREEMENT TO ACQUIRE PROCESSING PLANT AND ASSETS IN ECUADOR

Dynacor Group Inc. has signed a share purchase agreement to acquire Arkham Metals SAS (Ecuador) from Pelorus Minerals Ltd., a wholly owned subsidiary of Arkham Metals Ltd. Australia. As previously announced, Dynacor will pay $9.75-million for 100 per cent of the shares of the 1,500-tonne-per-day (tpd) permitted processing plant. All amounts are in U.S. dollars unless otherwise specified.

Svetlana, the newly acquired processing plant, is located in Portovelo, in the El Oro province of southern Ecuador. The carbon-in-pulp (CIP) plant was operated intermittently between 2011 and 2020, and has been in care and maintenance since Q2 (second quarter) 2020. Under its international expansion plan, Dynacor will pay a total consideration of $25-million, including the purchase price, to upgrade the plant and prepare for the ramp-up to 300 tpd operating capacity in 2026. The transaction will be financed with proceeds from the $22.1-million financing carried out earlier this year.

Jean Martineau, president and chief executive officer, said: "This acquisition in Ecuador is a first step and significant milestone in our journey to produce half a million ounces of gold. In addition to marking our transition into a geographically diversified gold processor, the acquisition of Svetlana would bring a material increase in our installed capacity. Importantly, the permitted plant offers a long runway to grow through optimization and through expansion of its ore purchasing network. On behalf of the Dynacor team, I wish to thank our shareholders who have supported our growth ambitions and look forward to delivering on our value creation strategy."

Transaction highlights:

• Consistent with plan to become a multiasset gold processor: The strategic acquisition of Dynacor's second processing plant, and the first in Ecuador, strengthens the company's presence in Latin America. Svetlana is a fully financed, permitted processing plant that, following initial ramp-up, is expected to increase annual production by approximately 75,000 AgEq (silver equivalent) ounces (300 tpd).
• Quality carbon-in-leach (CIP) plant that leverages Dynacor's unique know-how: The acquisition provides an excellent fit with Dynacor's skill set and multidecade operation of a CIL plant in Peru.
• Offers upside: The plant is built and permitted for 1,500 tpd but will initially be launched at 300 tpd. The purchase price includes the plant, mining fleet and a relatively new tailings dam. The corporation believes that its differentiated business model positions it strongly to meet the continued growth of the artisanal and small-scale gold mining (ASGM) market in Ecuador.
• Location in the heart of Ecuador's gold mining district: The plant's location in the main gold processing region of Ecuador, a country with a rich ASGM history, provides a solid platform for growth.

Transaction details:

• Total consideration is $9.75-million, payable in cash.
• The closing of the share purchase agreement is expected on July 14, 2025.

About Dynacor Group Inc.

Dynacor Group is an industrial ore processing company dedicated to producing gold sourced from artisanal miners. Since its establishment in 1996, Dynacor has pioneered a responsible mineral supply chain with stringent traceability and audit standards for the fast-growing artisanal mining industry. By focusing on fully and part-formalized miners, the Canadian company offers a win-win approach for governments and miners globally. Dynacor operates the Veta Dorada plant and owns a gold exploration property in Peru. The company plans to expand to West Africa and within Latin America.

The premium paid by luxury jewellers for Dynacor's PX Impact gold goes to Fidamar Foundation, an NGO (non-governmental organization) that mainly invests in health and education projects for artisanal mining communities in Peru.

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