The Mining Stock Report

DynaResource is a junior exploration company that is currently focused on their San Jose de Gracia project in Sinaloa, Mexico. DynaResource holds a 50% interest in San Jose de Gracia with their exploration partner Goldgroup Mining. The company recently released a NI 43-101 report for the property, with plans to move towards production.

By Christopher Haugen

Summary

DynaResource Inc. is a Texas based junior exploration company with a focus on the Mexican property, San Jose de Gracia. DynaResource trades on the OTCBB under the ticker symbol DYNR. The company currently has a 50% interest in San Jose de Gracia, with their exploration partner in the project, GoldGroup Mining, which is locates in the state of Sinaloa, Mexico. The project has been called 'potentially the most significant project development in the region.’

Capital Structure

As of Date : April 26, 2012
Exchange: OTCBB
Ticker Symbol: OTCBB:DYNR
Recent Price: USD$4.14
52 Week Hi / Low: $4.80 / $3.26
Issued & Outstanding: 10,603,547000
Market Capitalization: $40,896,000

Management

K.D. Diepholz, Chairman, & C.E.O.
Charles E. Smith, Chief FInancial Officer
Bradford J. Saulter, Vice President Investor Relations
Pedro Ignacio Teran Cruz, Geologist Consultant
Abraham Urias Romero,, Legal Agent & Representative

Property Summary

San Jose de Gracia
An advanced exploration property located in the state of Sinaloa, Mexico, DynaResource owns a 50% interest in the property with their exploration partner in the project, GoldGroup Mining. San Jose de Gracia is a past producing mine, with reported production estimate of 1,000,000 oz. Au since 1910. The property currently has a NI 43-101 compliant resource of 274,000 oz. Au Indicated at an average grade of 6.52 g/t, and 741,000 oz. Au inferred at an average grade of 5.83 g/t, this is using a 2.0 g/t cut-off grade. According to the company, there is potentially to significantly increase the size of the resource through additional exploration. In addition to the exploration of San Jose de Gracia, there is a 200 ton per day (tpd) mill located on the property, which was in production until it was closed in 2006, so the company could focus on increasing the mineral resource.

Regional Summary

Mining in Mexico
Mexico is considered a politically stable region, and generally encouraging towards mining initiatives. Historically, Mexico has been supportive of mining developments, and is currently home to several world-class, large scale mining operations for gold, silver, copper, lead and zinc. Mexico revised their mining laws their previously protectionist mining laws in 1992, in advance of joining NAFTA. The new mining regulations in Mexico revised a previously onerous taxation system, improved the environment for foreign investment, encouraged and protected rights to foreign ownership and removed government mining royalties.

Sinaloa, Mexico
According to the DynaResource website, the state of Sinaloa has been supportive of DYNR, and the San Jose de Gracia project. It has been called potentially the most significant development in the region, Sinaloa is home to other producing mining operations.

Market Summary

Investment Highlights / Risks

Highlights

• Exposure to booming gold market. Gold is currently trading above historical levels.
• NI 43-101 compliant Resource of more than 1 million oz. Au for their signature property San Jose de Gracia.
• Properties are at an advanced stage of exploration.
• Properties are located in Mexico. Mexico is considered a political stable region that is supportive of mining initiatives.
• Property is a historical producer, and their is a 200 tpd mill currently on the property.

Risks

• Trades Over the Counter, shares that trade over the counter may lack liquidity, and experience price volatility.
• The company has a market capitalization of less than USD$50 million.
• DynaResource Inc. is vulnerable to a drop in the price of gold.

Comparable Companies

Cited Informational Sources

• DynaResource Website
• DynaResource Corporate Presentation
• Stockwatch
• Edgar Filings

Disclosure

Mr. Haugen, who prepared this report, currently has no position in DynaResource Inc. and no longer has an association with Gale Capital Corp.