Dynacor Mines: Preliminary Samplings Confirm the Potential of Acari Mine.

MONTREAL--(BUSINESS WIRE)--Aug. 29, 1996--Dynacor (ME: DYN) Preliminary exploration results on the site of Acari Mine, Peru, confirm the high grade of the property, purchased recently by Dynacor Mines.

Channels samples yielded grades between 4 g/t Au (0.12 oz/t Au) and 167 g/t Au (4.8 oz/t Au). Last year, Pallamyocc mines S.A., who owns a minority interest in the property, has extracted more than 1200 t averaging 32 g/t Au (0.93 oz/t Au).

The second sublevel, which yielded two channels samples of 63 g/t Au (1.83 oz/t Au) and 167 g/t Au (4.84 oz/t Au), will be systematically sampled next week.

The principal vein (veta principal), 4 km long, is visible on the northwest face of Huaraca Pampa, a mountain located in the Nazca - Ocona gold belt of southern Peru. The vein has a 140 - 150 degrees strike and a 60 - 70 degrees North - East dip, and is comprised of a number of mineralized oreshoots forming a multiple sigmoid structure. Gold is associated with disseminated sulphides in quartz veins and/or in faults intersecting intrusives. The continuity of the veins and faults is impressive, and they can often be followed for kilometres. This geology is similar to that of the Pataz District mines in northern Peru, which have already produced 1.5 million ounces of gold.

Located 428 kilometres South of Lima, Acari Mine is accessible by road, along the Pan American highway down to Nazca, then up a secondary road to Acari. The area is arid, but the Acari river flows at the foot of the Huaraca Pampa mountain, very close to the location of the new mill. The Dynacor property is comprised of a 800 hectare concession, with an option on four other adjacent concessions totalling 3010 hectares.

THE NEW MILL

A new mill is under construction. The site was inspected two weeks ago by Dr. Andre Laplante, metallurgist and mining engineer, who will oversee the work leading to start - up this fall. The crushing circuit has already been tested, and a 50 ton sample is being processed to estimate the grade of an existing 4000 t stockpile.

MINING DEVELOPMENT

An independent consulting firm is preparing a detailed geology and mining report, including a plan to develop the principal vein. Dynacor Mines is assembling a complete technical and administrative team in Peru, and negociating the acquisition of other properties. Dynacor has cash reserves totalling $1 million to realise its short term objectives, the production of 10,000 ounces from Acari in the first year, and 20,000 ounces in the second.

CONTACT: Mines Dynacor inc.

Jean Martineau, 514/979-7663

or

Mines Dynacor inc.

Marc Blais, cga, 514/871-9742