UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number 000-30371

DYNARESOURCE, INC.

(Exact name of Registrant as specified in its Charter)

Delaware	94-1589426
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
222 W. Las Colinas Blvd., Suite 1910 North Tower<br><br>Irving, TX	75039
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (972) 868-9066

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading<br><br>Symbol(s)	Name of each exchange on which registered
None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.01 per share

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ no ☒

The aggregate market value of the voting and non-voting common equity, par value $0.01 per share, held by non-affiliates computed by reference to the price at which the common equity was last sold, as of the last business day of the registrant’s most recently completed fiscal year end, December 31, 2025, was $21,613,795 based on the closing price of $1.40 per share as reported on the OTCQX. For purposes of this computation, all officers, directors, subsidiaries, and 10% beneficial owners of the registrant are deemed to be affiliates. Such determination should not be deemed an admission that such officers, directors or 10% beneficial owners are, in fact, affiliates of the registrant.

There were 29,315,726 shares outstanding of each of the registrant’s classes of common stock (only 1 class) as of the latest practicable date (April 1, 2026)

DOCUMENTS INCORPORATED BY REFERENCE

Listed below are documents incorporated herein by reference. None.

PART I
ITEM 1.	BUSINESS	4
ITEM 1A.	RISK FACTORS	7
ITEM 1B.	UNRESOLVED STAFF COMMENTS	22
ITEM 1C.	CYBERSECURITY	22
ITEM 2.	PROPERTIES	23
ITEM 3.	LEGAL PROCEEDINGS	32
ITEM 4.	MINE SAFETY DISCLOSURES	33
PART II
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	34
ITEM 6.	RESERVED	34
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	35
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	50
ITEM 8.	CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	51
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	87
ITEM 9A.	CONTROLS AND PROCEDURES	87
ITEM 9B.	OTHER INFORMATION	88
ITEM 9C.	DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS	88
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	89
ITEM 11.	EXECUTIVE COMPENSATION	94
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	98
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	101
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	102
PART IV
ITEM 15.	EXHIBITS AND FINANCIAL STATEMENT SCHEDULES	104
ITEM 16.	FORM 10K SUMMARY	106
	SIGNATURES	107

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to our mining business, including resource estimates, exploration efforts, results and expenditures, development initiatives at the San Jose de Gracia mine (the “SJG mine”), estimated production and capacity, costs, capital expenditures, expenses, recoveries, gold prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, environmental, social and governance (“ESG”) and human capital management initiatives, risk management strategies, including capital resources and use, cash flow maximization, mine life and other strategic initiatives. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “will,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward-looking information in this Annual Report on Form 10-K includes, but is not limited to, statements regarding the beliefs, plans, expectations or intentions of management, as of the date of this presentation, regarding: (i) the ability of DynaResource, Inc. (the “Company”) and its subsidiaries to develop its exploration assets via operational cash flow from gold concentrate production; and (ii) the Company’s plans and expectations regarding its proposed 2026 exploration program for the SJG mine. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that these expectations and assumptions will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks related to: (1) fluctuations in commodity pricing, specifically gold and silver; (2) the Company’s ability to retain or engage qualified employees or contractors necessary to conduct mill operations at the SJG mine; (3) a decreased demand for gold, silver and other minerals; (4) unexpected difficulties with the milling and the extraction of minerals from the Company’s projects; (5) unexpected interruptions and problems encountered in the operation of the SJG mine; (6) factors that delay or cause difficulties in timing of shipments of concentrates by the Company; (7) potential negative financial impact from regulatory investigations, claims, lawsuits and other legal proceedings and challenges; (8) the possibility that the Company may not have sufficient capital to operate the SJG mine or facilitate the further exploration of the SJG mine; (9) inflationary pressures; (10) continued access to financing sources; (11) government orders that may require temporary suspension of operations or effects on our suppliers; (12) the effects of environmental and other governmental regulations and government shut-downs; (13) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries; (14) our ability to raise additional financing necessary to conduct our business, make payments or refinance our debt; and (15) other factors beyond the Company’s control.

There is a significant risk that such forward-looking statements will not prove to be accurate. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Given the current state of the global financial markets, global commodity markets, especially the recent volatility in gold and silver prices and current economic conditions, any forward-looking statements or projections may be impacted significantly. Consequently, there is no representation by the Company that actual results achieved will be the same as those forecast. You are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Recent Developments

On May 20, 2025, the Company filed with the SEC a Technical Report Summary ("TRS”) for the SJG mine prepared in accordance with the requirements of Regulation S-K 1300 (“S-K 1300”). The TRS includes the Company’s first declaration of mineral reserves and supports the transition from an Exploration Stage issuer to a Production Stage issuer.

This transition to Production Stage has resulted in certain changes in accounting treatment, including the prospective capitalization of development expenditures and the commencement of depreciation on applicable assets, as further described in Note 3 to the consolidated financial statements. Management anticipates that these changes will result in increased capitalized costs and higher depreciation expense in future periods.

PART I

ITEM 1. BUSINESS

History and Organization

DynaResource, Inc. (the "Company” or "DynaResource”) was organized on September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company, including its subsidiaries, is in the business of acquiring, investing in, and developing precious metal properties, and the production and sale of precious metals.

As of December 31, 2025, the Company had one wholly owned subsidiary in the United States, DynaMéxico US Holding, LLC ("US Holding”) and four wholly owned subsidiaries in Mexico, DynaResource de México, S.A. de C.V. ("DynaMéxico”), Mineras de DynaResources S.A. de C.V. ("DynaMineras”), DynaResource Operaciones de San José de Gracia S.A. de C.V. ("DynaOperaciones”), and Minera de Alica S.A. de C.V. ("DynaAlica”).

Although the Company considers the four Mexican subsidiaries to be wholly owned, each has issued one qualifying share to a second shareholder as required under Mexican law, with such qualifying shares held by US Holding. DynaMéxico owns a portfolio of mining concessions that currently comprises its interest in the San José de Gracia mine ("SJG”) in northern Sinaloa State, México.

Product

The end use product resulting from the Company’s site-based processing activities at the SJG mine is in the form of gold-silver concentrate. Gold-silver concentrate, or simply concentrate, is raw precious metals materials that has been crushed and ground finely to a sand-like product where gangue (waste) and non-precious metals are removed or reduced, thus concentrating the precious metals component. Concentrate processed and produced from the SJG mine is transported and sold to a third-party for further processing.

During 2025, we reported the delivery and sale of 20,848 ounces (Oz) gold (subject to final settlements) contained in concentrate. All gold concentrate originated from the SJG mine. Gold concentrates are sold at a small discount, the payability adjustment, to the prevailing spot market price, based on the price per ounce of gold quoted at the London PM gold fix, with the actual net payable precious metals prices received depending on the sales contract. Concentrates are priced by the assay of the gold content in the concentrate deliveries and the final selling price and gold quantities are subject to final adjustments at the time of final purchase settlement.

Metals Prices

The results of the Company are substantially dependent upon the market prices of gold and silver, which are subject to significant volatility and fluctuate widely due to factors beyond the Company’s control. Pursuant to the terms of the Company’s Gold Concentrate Purchase Agreement (as amended, the “Offtake Agreement”), the Company has entered into commodity pricing arrangements from time to time to manage exposure to fluctuations in gold and silver prices.

In September 2024, the Company entered into a commodity pricing arrangement under the Offtake Agreement to protect the selling price of a portion of its anticipated gold and silver production. Under this arrangement, approximately 75% of anticipated production, or 9,000 ounces, was hedged at a fixed price of $2,495 per ounce. The impact of this hedging activity was approximately negative $1.1 million in fiscal 2025, and the Company fulfilled its delivery obligations under this arrangement in March 2025.

In August 2025, the Company entered into an additional commodity pricing arrangement pursuant to the Offtake Agreement. Under this min/max pricing structure, the Company hedged the sales price of 6,000 troy ounces of gold, representing 1,000 ounces per month for the period from September 30, 2025 through February 27, 2026. This arrangement utilizes monthly expiring options that establish a minimum price of $3,200 per ounce (put strike) and a maximum price of $3,500 per ounce (call strike). The effect of this hedging activity was approximately negative $2.6 million in fiscal 2025.

In addition, during November 2025 and December 2025, the Company entered into two further commodity pricing arrangements pursuant to the Offtake Agreement, each structured as min/max option‑based collars, to hedge a portion of anticipated gold

production during periods extending into 2026. These arrangements were not effective during fiscal 2025 and accordingly had no impact on the Company’s results of operations for the year ended December 31, 2025.

Commodities

We purchase materials and supplies from third parties to conduct our business, including electricity, fuel, chemical reagents, explosives, steel and concrete. Prices for these commodities are volatile and can fluctuate due to conditions that are difficult to predict, including inflation, currency fluctuations, global competition for resources, consumer or industrial demand and other factors. For most of these commodities, we have existing alternate sources of supply or alternate sources of supply are readily available. We continuously monitor supply and cost trends for these items.

Production Stage

The Company is currently classified as a Production Stage issuer under S-K 1300. Prior to January 1, 2025, the Company was considered an Exploration Stage issuer, having engaged in mining, milling, and extraction activities without having established proven and probable mineral reserves.

Segment Information

The Company operates as one reportable segment, focused on the exploration, development, production and sale of gold and silver in Mexico.

General Government Regulations

México

In Mexico, we are subject to various governmental laws and regulations, including environmental regulations. Other than operating licenses for our mining and processing facilities and concessions granted under contracts with the host government, there are no third-party patents, licenses or franchises material to our business. The applicable laws and regulations applicable to us include but are not limited to:

Mineral Concession Rights. Exploration and exploitation of minerals in México may be carried out through Mexican companies incorporated under Mexican law by means of obtaining mining concessions. The Company’s mining concessions were granted by the Mexican government for a period of fifty years from the date of their recording in the Public Registry of Mining and are renewable for a further period of fifty years upon application within five years prior to the expiration of such concession in accordance with the Mining Act of México and its Regulations (Ley Minera y su Reglamento) (the “Mining Law”) and its regulations at their issuance. These mining concessions are subject to annual work requirements and payment of annual surface taxes which are assessed and levied on a semi-annual basis. Such concessions may be transferred or assigned by their holders, but such transfers or assignments must be registered with the Public Registry of Mining in order to be valid against third parties. The holder of a concession must pay semi-annual duties in January and July of each year on a per hectare basis and in accordance with the amounts provided by the Federal Fees Law. During the month of May of each year, the concessionaire must file the work assessment reports made on each concession or group of concessions for the preceding calendar year with the General Bureau of Mines. The Mining Law provide tables containing the minimum investment amounts that must be made on a concession. This amount is updated annually in accordance with the changes in the Consumer Price Index.

Surface Rights. In México, while mineral rights are administered by the federal government through federally issued mining concessions, Ejidos (communal owners of land recognized by the federal laws in México) control surface access rights to the land. An Ejido may sell or lease lands directly to a private entity. While the Company has agreements or is in the process of negotiating agreements with the Ejido that impact all of its projects in México, some of these agreements may be subject to renegotiation.

Mining Permits. The Secretariat of Environmental and Natural Resources, the Mexican Government environmental authority ("SEMARNAT"), is responsible for issuing environmental permits associated with mining. Three main permits required before construction can begin are: Environmental Impact Statement (known in México as Manifesto Impacto Ambiental), Land Use Change (known in México as Estudio Tecnico Justificativo Para Cambio de Uso de Suelo), and Risk Analysis (known in México as Análisis de Riesgo). A construction permit is required from the local municipality and an archaeological release letter must be obtained from the National Institute of Anthropology and History. An explosives permit is required from the ministry of defense before construction can begin. The Environmental Impact Statement is required to be prepared by a third-party contractor and submitted to SEMARNAT and must include a detailed analysis of climate, air quality, water, soil, vegetation, wildlife, cultural resources and socio-economic impacts. The Risk Analysis (which is included in the Environmental Impact Statement and submitted as one

complete document) identifies potential environmental releases of hazardous substances and evaluates the risks in order to establish methods to prevent, respond to, and control environmental emergencies. The Land Use Change requires that an evaluation be made of the existing conditions of the land, including a plant and wildlife study, an evaluation of the current and proposed use of the land, impacts to naturally occurring resources, and an evaluation of reclamation/re-vegetation plans.

We believe we operate in compliance with all applicable governmental laws and regulations and the costs of compliance are paid for on an ongoing basis. Due to the nature of our mining permits, we have requirements for landscape restoration which are fulfilled on an ongoing basis. We are working under mining permits, which require a Forest Fund bond of approximately $134,487 Pesos and does not require, other than the replanting of like vegetation material, any reclamation work since we are mining underground. We maintain a greenhouse of approximately 10,000 trees and a full-time gardener to undertake rehabilitation work programs.

Customers

The Company sells its concentrates to the buyer who offers the best terms based upon price, treatment costs, refining costs, and other terms of payment. During the year ended December 31, 2025 and 2024, the Company sold gold-silver concentrates to one purchaser pursuant to an Advance Credit Line Facility (“ACL”) and a Revolving Credit Line Facility (the “RCL”) in accordance with the Offtake Agreement. As gold-silver concentrate can be sold through numerous gold and silver market traders worldwide, and the price paid to the Company under the ACL/RCL varies based on market conditions, the Company is effectively not economically dependent on a limited number of customers for the sale of its product.

Products and Raw Materials

Gold-silver concentrate is the only product we produce. Additionally, we have no major suppliers of raw materials as the ore we mine is the most important raw material we use. Supplementary supplies such as fuel and organic reagents are in ready supply from a number of vendors.

Competitive Business Conditions

We compete with many companies in the mining and mineral exploration and production industry, including large, established mining companies with substantial capabilities, personnel, and financial resources. There is a limited supply of desirable mineral lands available for claim-staking, lease, or acquisition in the United States, Canada, Mexico, and other areas where we may conduct our mining or exploration activities. We may be at a competitive disadvantage in acquiring mineral properties, since we compete with these entities, many of which have significantly greater financial resources and larger technical staff than we do. From time to time, specific properties or areas that would otherwise be attractive to us for exploration or acquisition may be unavailable due to their previous acquisition by other companies or our lack of financial resources.

Competition in the industry is not limited to the acquisition of mineral properties, but also extends to the technical expertise to find, advance, and operate such properties; the labor to operate the properties; and the capital for the purpose of funding such exploration and development. Many competitors not only explore for and mine precious and base metals but conduct refining and marketing operations on a world-wide basis. Such competition may result in our company not only being unable to acquire desired properties, but to recruit or retain qualified employees or to acquire the capital necessary to fund our operation and advance our properties. Our inability to compete with other companies for these resources could have a material adverse effect on our results of operation, financial condition and cash flows.

Human Capital Resources

As of December 31, 2025, the Company had approximately 238 employees in Mexico and 3 in the United States and Canada. All our employees based in the United States and Canada work in an executive, technical or administrative position, while our employees in Mexico include management, laborers, craftsmen, mining, geologist environmental specialists, information technologists, accountants and various other support roles. We also frequently engage independent contractors in connection with certain administrative matters and the exploration of our properties, such as drillers, geophysicists, geologists, and other specialty technical disciplines. For the United States and Canada, we also engage independent contractors for technical and professional expertise. None of our employees in México are covered by union contracts and the Company believes it has good relations with its employees.

As part of our fundamental need to attract, reward and retain talent, we regularly evaluate our compensation, benefits and employee wellness offerings. We believe that our compensation arrangements are competitive in the industry.

Responsibility

The San Jose de Gracia community is home to DynaMéxico activities. We’ve devoted significant capital and resources to ensuring our project is a good neighbor to San Jose de Gracia and the surrounding villages. We strive for best-in-class safety and environmental policies through an approach of responsible production, including the sole use of biodegradable and organic solvents and a focus on best safety practices.

DynaResource has constructed and donated a medical clinic to the San Jose de Gracia community and contributed funds for repairs and upgrades to the local church and school, and provided education and business training to adults, creating new opportunities for current residents. Additionally, we’ve funded and constructed roads within the community and improved a road from Sinaloa de Leyva to San Jose de Gracia, a distance of over 60 kilometers.

Available Information

We make available links on our website (http://www.dynaresource.com) to our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Proxy Statements, as well as Forms 3, 4 and 5 with respect to our common stock, including any amendments to any of the foregoing, as soon as reasonably practicable after such reports are electronically filed with the U.S. Securities and Exchange Commission (“SEC”). These filings are also available at http://www.sec.gov.

A copy of our Code of Business Conduct and Ethics is also available on our website. Information contained on our website is not a part of or incorporated into this Annual Report on Form 10-K.

ITEM 1A. RISK FACTORS

An investment in our securities involves a high degree of risk. You should carefully consider the risks described below and incorporated by reference herein before making an investment decision. Our business, prospects, financial condition, or operating results could be harmed by any of these risks, as well as other risks not currently known to us or that we currently consider immaterial. The trading price of our securities could decline due to any of these risks, and, as a result, you may lose all or part of your investment. Certain statements in “Risk Factors” are forward-looking statements. See “Cautionary Statement Regarding Forward-Looking Statements.”

Risks Related to Our Industry

Our results of operations, cash flows and operating costs are highly dependent upon the market prices of gold and silver and of key input commodities used in our business, which are volatile and beyond our control.

Gold and silver are actively traded commodities, and their prices are volatile. Gold and silver prices are affected by many factors beyond the Company’s control, including U.S. dollar strength or weakness, speculation, global currency values, global and regional demand and production, political and economic conditions and other factors. In addition, Exchange Traded Funds, which have substantially facilitated the ability of large and small investors to buy and sell precious metals, have become significant holders of gold and silver. Gold and silver prices are also affected by prevailing interest rates and returns on other asset classes, expectations of the future rate of inflation and governmental monetary decisions regarding central bank holdings.

Because we derive all of our revenues from sales of these metals, our results of operations and cash flows will fluctuate as the prices of these metals change. A period of significant and sustained lower prices would materially and adversely affect our results of operations and cash flows. In response to environments of lower metal prices and/or higher treatment and refining charges, we may have to revise our operating plans, including reducing operating costs and capital expenditures, terminating or suspending mining operations at one or more of our properties and discontinuing certain exploration and development plans. These types of initiatives may not sufficiently offset reductions in revenues, and we may incur losses associated with sustained lower metals prices and/or higher treatment and refining charges.

Operating costs at our mines are also affected by the price of input commodities, such as fuel, electricity, labor, chemical reagents, explosives, steel and concrete. Prices for these input commodities are volatile and can fluctuate due to conditions that are difficult to predict, including global competition for resources, inflation, currency fluctuations, consumer or industrial demand and other factors. An increase in the cost, or decrease in the availability, of input commodities, labor, or equipment, due to factors beyond the Company’s control may affect the timely conduct and cost of our operations and development projects. Continued volatility in the

prices of commodities and other supplies we purchase could lead to higher costs, which would adversely affect results of operations and cash flows.

Volatility in metals prices may also impact the price of our outstanding securities.

Speculation in the market may result in short-term volatility in the prices of the metals we produce and result in significant changes in the price of our securities, which may not be reflective of our operating performance or financial results. The price of gold has fluctuated widely since the beginning of 2024 when the gold price was $2,062 to recently when the price of gold was over $4,300, an increase of 109%. There is no assurance the price of gold will not decline, no assurance it will stay the same and no assurance it will continue to increase in price. Continued volatility in the price of gold if it goes lower, could lead to lower revenues, which would adversely affect results of operations and cash flows.

Estimated mineral reserves and mineral resources are imprecise and depend upon subjective factors and may not be realized in actual production.

The mineral reserve and mineral resource figures presented in our public filings are estimates made by our technical personnel and independent mining consultants with whom we contract. Mineral reserve and mineral resource estimates are a function of geological and engineering analyses that require us to make assumptions about production costs, recoveries and the market prices of gold, silver, zinc and lead. While the Company believes that its mineral reserve and mineral resource estimates are developed using well-established practices and with appropriate controls, mineral reserve and mineral resource estimation is an imprecise and subjective process. The accuracy of these estimates is a function of the quality of available data and of engineering and geological interpretation, judgment and experience. Assumptions about gold and silver market prices are subject to great uncertainty as those prices fluctuate widely. Declines in the market prices of gold and silver may render mineral reserves and mineral resources containing relatively lower grades of mineralization uneconomic to exploit, and we may be required to reduce mineral reserve and mineral resource estimates, discontinue development or mining at one or more of our properties or write down assets as impaired. Should we encounter mineralization or geologic formations at our mine or project that is different from those predicted, we may adjust our mineral reserve and mineral resource estimates and alter our mining plans. No assurances can be given that all mineral reserves will be mined, as mineralized material that may qualify as reserves under applicable standards by virtue of being economic to mine may not generate attractive enough returns to be included in our mine plans, due to factors such as the impact of the gold stream at San Jose de Gracia. As a result, we may elect not to mine portions of the mineralized material reported as reserves. In addition, no assurances can be given that any mineral resource estimate will ultimately be reclassified as proven or probable mineral reserves or that inferred resources will be upgraded to measured or indicated resources. Updates to our mining plans or new or updated technical or geological information may also impact anticipated metal recovery rates. Any of these adjustments may adversely affect actual operating performance, production, financial condition, results of operations and cash flows.

A significant delay or disruption in sales of concentrates as a result of the unexpected disruption in services provided by customer(s) or other third parties could have a material adverse effect on our results of operations.

We rely on customer(s) to purchase the gold and silver concentrate produced by our operations. Access to refiners and smelters on economic terms is critical to our customer(s) to sell our products to refiners and smelters and generate revenues. We believe our current contractual arrangement with our only customer is sufficient so that the loss of that customer would easily be replaced by others who we have sold to previously and would not significantly or materially impact our operations or our ability to generate revenues. Nevertheless, services provided by an end refiner or smelter may be disrupted by new or increased tariffs, duties or other cross-border trade barriers, shipping delays, the bankruptcy or insolvency of one or more refiners or smelters or the inability to agree on acceptable commercial or legal terms between our customer(s) and their refiners or smelters. Such an event or events may disrupt an existing relationship or result in the inability to create (or the necessity to terminate) a contractual relationships, which may leave us with limited, uneconomic or no access to customer(s) with access to refining or smelting services for short or long periods of time. Epidemics, pandemics or natural disasters may also impact customer(s) and refiners, smelters or other third parties with whom there are contractual arrangements or have an indirect effect on our ability to sell our gold and silver concentrates. We cannot ensure that alternative customer(s) that have contractual arrangements with refiners or smelters would be available, that they would offer comparable terms, or that we would not experience delays or disruptions in sales that would materially and adversely affect results of operations.

There are significant hazards associated with mining activities.

The mining business is subject to risks and hazards, including environmental hazards, industrial accidents, the encountering of unusual or unexpected geological formations, geotechnical failures, flooding, earthquakes and periodic interruptions due to inclement or hazardous weather conditions or machine failure. These occurrences could result in damage to, or destruction of,

mineral properties or production facilities, personal injury or death, environmental damage, reduced production and delays in mining, asset write-downs, monetary losses and possible legal liability. The Company does not currently maintain insurance policies to protect against property loss and business interruption. Any liabilities that we incur for these risks and hazards could be significant and could adversely affect results of operations, cash flows and financial condition.

Competition in the mining industry is intense, and the Company has limited financial and personnel resources with which to compete.

In the mining industry, competition for desirable properties, investment capital, and human capital is intense. Numerous companies headquartered in the United States, Canada, and worldwide compete for properties and human capital on a global basis. The Company is a small participant in the mining industry due to its limited financial and human capital resources. The Company presently operates with a limited number of people, and it anticipates operating in the same manner going forward. The Company competes with other companies in its industry to hire qualified employees and consultants when needed to operate its mines successfully and to advance its exploration properties. The Company may be unable to attract the necessary human capital to fully explore, and if warranted, develop its properties and be unable to acquire other desirable properties. The Company believes that competition for acquiring mineral properties, as well as the competition to attract and retain qualified human capital, will continue to be intense in the future.

Risks Related to Our Operations

Our future growth will depend upon our ability to expand existing mines and develop and start-up new mines, either through exploration at our existing property or by acquisition of other mining companies or properties.

Because mines have limited lives based on proven and probable mineral reserves, our ability to achieve significant additional growth in revenues and cash flows will depend upon our success in further developing and expanding existing properties and the opportunistic acquisition or development and start-up of exploration projects or new mining properties, such as the acquisition of mining concessions from a subsidiary of Fresnillo plc that are located adjacent to the existing SJG mine.

Significant investment risks and operational costs are associated with exploration and development activities. These risks and costs may result in lower economic returns and may adversely affect our business.

Our ability to sustain or increase current production levels depends in part on successful exploration and development of new ore bodies and expansion of existing mining operations. Substantial expenditures are required to establish mineral reserves, to extract metals from ore and, in the case of new properties, to construct mining and processing facilities. Our plans include several significant projects to construct or upgrade mining and processing facilities at our existing mining operation including the mine life extension at San Jose de Gracia. These projects can take several months or years to complete, are complex and require significant capital expenditures, as demonstrated by the recently completed SK 1300 mineral resource report. These projects are subject to significant risks, any of which may have a material negative impact on returns on invested capital, operating costs or cash flows.

Mineral exploration involves many risks and is frequently unproductive. Even if mineral deposits are found, those deposits may be insufficient in quantity or quality to return a profit from production, or it may take a number of years until production is possible, during which time the economic viability of the project may change. Few properties that are explored are ultimately developed into producing mines. The commercial viability of a mineral deposit, once developed, depends on a number of factors, including: the particular attributes of the deposit, including size, grade and proximity to infrastructure; government regulations, including taxes, royalties and land tenure; land use; importing and exporting of minerals; environmental protection; mineral prices; and issuance and maintenance of necessary permits. Factors that affect adequacy of infrastructure include reliability of roads, bridges, power sources and water supply; unusual or infrequent weather phenomena; sabotage; and government or other interference in the maintenance or provision of such infrastructure. The exact effect of these factors cannot be accurately predicted, but the combination may result in not receiving an adequate return on invested capital.

In addition, exploration activities may have little or no relevant data upon which to base estimates of future operating costs and capital requirements. Exploration activities such as estimates of mineral resources and mineral reserves, metal recoveries and cash operating costs are to a large extent based upon the interpretation of geologic data obtained from a limited number of drill holes and other sampling techniques and feasibility studies. Estimates of operating costs are then derived based upon anticipated tonnage and grades of ore to be mined and processed, the configuration of the ore body, expected recovery rates of metals from the ore, comparable facility and equipment costs, anticipated climate conditions and other factors. As a result, actual operating costs and economic returns of any and all exploration projects may materially differ from the costs and returns estimated, and accordingly, our financial condition, results of operations and cash flows may be negatively affected.

We may be affected by global supply chain disruptions.

We may face supply chain disruptions as a result of matters outside of our control or ability to mitigate, such as natural disasters, transportation disruptions, economic instability, sanctions or tariffs, geopolitical unrest, civil or international hostilities and global pandemics, among others. The ongoing conflicts in Europe and in the Middle East have resulted in losses of life, displacement of people, and political and economic disruptions on a global scale. Additionally, recent trade policy changes, including the tariffs imposed by the United States and retaliatory measures by trading partners, have resulted in disruptions to supply chains and increased costs to obtain necessary supplies. There may be unforeseen impacts from these events globally on commodity prices, liquidity and credit or supply chains, and we continue to monitor them closely.

We may be required to write down certain long-lived assets, due to metal prices, operational challenges or other factors. Such write-downs may adversely affect our results of operations and financial condition.

We review our long-lived assets for recoverability pursuant to the Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification Section 360. Under that standard, we review the recoverability of our long-lived assets, such as our mining properties, upon a triggering event. Such review involves estimating the future undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment, measured by comparing an asset’s carrying value to its fair value, must be recognized when the carrying value of the asset exceeds these cash flows. We conduct a review of the financial performance of our mines in connection with the preparation of our financial statements for each reporting period and determine whether any triggering events are indicated.

If there are significant and sustained declines in relevant metal prices, or if we fail to control production and operating costs or realize the mineable ore reserves at our mining properties, we may terminate or suspend mining operations at one or more properties. These events could require a write-down of the carrying value of our assets. Any such actions would adversely affect our results of operations and financial condition.

We may record other types of charges in the future if we sell a property or asset for a price less than its carrying value or have to increase reclamation liabilities in connection with the closure and reclamation of a property. Any additional write-downs of mining properties or other assets could adversely affect our results of operations and financial condition.

We operate in a foreign jurisdiction and are exposed to political and social risks associated with our foreign operations.

All of our revenue is generated by operations outside the United States, particularly Mexico. Exploration, development, production and closure activities in many countries are potentially subject to heightened political and social risks that are beyond our control and could result in increased costs, capacity constraints and potential disruptions to our business. These risks include the possible unilateral cancellation or forced renegotiation of contracts in which we, directly or indirectly, may have an interest, unfavorable changes in foreign laws and regulations, royalty and tax increases (including taxes associated with the import or export of goods), risks associated with the value-added tax (“VAT”) and income tax refund recovery and collection process, aggressive or punitive tax audits, policy-driven or punitive interference with or moratoriums on processing of permit applications or granting water or mineral concessions, erection of trade barriers, including tariffs and duties, claims by governmental entities or indigenous communities, changes to mining and related laws impacting current and future operations, expropriation or nationalization of property and other risks arising out of foreign sovereignty over areas in which our operations are conducted. In addition, recent amendments to mining, water and environmental laws in Mexico, and government actions under prior Mexican administrations intended to slow or halt the normal processing of permits and granting of water or mineral concessions, could impose additional restrictions on our ability to obtain and maintain mining and water rights and operate in Mexico, among other potentially adverse provisions. Our rights under local law may be less secure in countries where judicial systems are susceptible to manipulation and intimidation by government agencies, non-governmental organizations or civic groups.

Any of these developments could require us to curtail or terminate operations at our mines, incur significant costs to renegotiate contracts, meet newly-imposed environmental or other standards, pay greater royalties or higher prices for labor or services and recognize higher taxes, address aggressive or punitive tax audit assessments including through litigation, or experience significant delays or obstacles in the recovery of VAT or income tax refunds owed, which could materially and adversely affect financial condition, results of operations and cash flows.

Our operations outside the United States also expose us to economic and operational risks.

Our operations outside the United States also expose us to economic and operational risks. Local economic conditions, as well as epidemics, pandemics or natural disasters, can cause shortages of skilled workers and supplies, increase costs and adversely affect

the security of operations. In addition, higher incidences of criminal activity and violence in the area of some of our foreign operations, including drug cartel-related violence in Mexico, could adversely affect our ability to operate in an optimal fashion and may impose greater risks of extortion and theft, greater risks to our personnel and property, greater risks to the transport of materials to refineries, and greater risks to the supply of services and goods to our operations, including specialized equipment. These conditions, including security concerns in certain communities surrounding the San Jose de Gracia mine impacting third-party deliveries of supplies to San Jose de Gracia, could adversely impact our operations and lead to lower productivity and higher costs, which would adversely affect results of operations and cash flows. In addition, acts of civil disobedience are not uncommon in certain areas of Mexico where our operation and project is located. In recent years, many mining companies have been the targets of actions to restrict their legally entitled access to mining concessions or property. Such acts of civil disobedience often occur without warning and can result in significant direct and indirect costs. We cannot provide assurance that there will be no disruptions to site access in the future, which could adversely affect our business. We sell gold and silver concentrate in U.S. dollars, but we conduct operations outside the United States in local currency. Currency exchange movements could also adversely affect our results of operations.

Our success depends on developing and maintaining relationships with local communities and other stakeholders.

Our ongoing and future success depends on developing and maintaining productive relationships with the communities surrounding our operations, including indigenous peoples who may have rights or may assert rights to certain of our properties, and other stakeholders in our operating locations. We believe our operations can provide valuable benefits to surrounding communities, including through direct employment, training and skills development and other benefits associated with ongoing payment of taxes. In addition, we seek to maintain our partnerships and relationships with local communities, including indigenous peoples, and stakeholders in a variety of ways, including in-kind contributions, volunteer time, sponsorships and donations. There is an increasing level of public concern relating to the perceived effect of mining activities on indigenous communities. Evolving expectations related to human rights, indigenous interests and environmental protection may result in opposition to the Company’s current or future activities. Notwithstanding our ongoing efforts, local communities and stakeholders could become dissatisfied with our activities or the level of benefits provided, which may result in legal or administrative proceedings, civil unrest, protests, direct action or campaigns against us or our operations. Any such occurrences could materially and adversely affect our financial condition, results of operations and cash flows. In addition, the growing use of social media to generate, publish and discuss community news and issues and to connect with others has made it significantly easier, among other things, for individuals and groups to share their opinions of our business and our activities, whether true or not. We do not have direct control over how we are perceived by others and any resulting loss of reputation could have a material adverse effect on our business, financial position and results of operations.

Our mining assets are subject to geotechnical and hydrological risks, and a related incident could materially and adversely impact our production, profitability and financial condition, as well as the value of our common stock.

Our mining assets are subject to geotechnical and hydrological risks which could impact the structural integrity of our mines, stockpiles, and tailings storage facilities. No assurances can be given that unanticipated adverse geotechnical and hydrological conditions, such as landslides, pit wall failures or tailings dam instability will not occur in the future or that such events will be detected in advance. Geotechnical and hydrological instabilities can be difficult to predict and are often affected by risks and hazards outside of our control, such as severe weather and considerable rainfall, which may lead to periodic floods, mudslides, wall instability and seismic activity, which may result in slippage of material. The occurrence of significant leach pad failures at third-party sites in recent years may result in the introduction of additional laws and regulations, which could result in additional operational and compliance costs for our sites. Some of these risks may be heightened further by the remote location of our operations.

Waste rock in the form of tailings generated as a by-product of processed ore is produced at our San Jose de Gracia mine. We place tailings into engineered containments, underground as structural backfill, and as thickened tailing into an engineered tailings dam. We believe that our tailings dams represent a low exposure risk profile for several reasons, including that our tailings dams were constructed using construction methods recognized in the industry as the most stable tailings dam design using high strength and chemically stable rock in construction. Our dams are continuously monitored and inspected by internal resources as well as third-party industry qualified experts. The significant dam failure events at other companies mining locations that have occurred in recent years may have lead, or will lead to, regulatory governance changes stemming from updated laws, regulation or guidance, which could result in increased operational and compliance costs if we need to make changes to existing facilities. The failure of a tailings dam or tailings storage facility at one of our mine sites could result in severe, and in some cases catastrophic, property and environmental damage and loss of life. Geotechnical or hydrological failures could result in limited or restricted access to mine sites, suspension of operations, government investigations, fines and penalties, lawsuits filed by parties who suffer injuries or property damage from such events, increased monitoring costs, remediation costs, loss of mineral reserves and resources and other

impacts, which could have a material adverse effect on our results of operations and financial position as well as the value of our common stock.

Our estimates of future production, costs, expenditures and financial results are imprecise, depend upon subjective factors, may not be realized in actual production and such estimates speak only as of their respective dates.

We have in the past, and may in the future, provide estimates and projections of our future production, costs, expenditures and financial results. Any such information is forward-looking. Neither our independent registered public accounting firm nor any other independent expert or outside party compiles or examines these forward-looking statements and, accordingly, do not express any opinion or any other form of assurance on these estimates and projections. Estimates and projections are made by our management and technical personnel and are qualified by, and subject to the assumptions contained or referenced in the filing, release or presentation in which they are made, including assumptions about the availability, accessibility, sufficiency and quality of mineralization, recovery rates, our costs of production, the market prices of gold and silver, our ability to sustain and increase production levels, the ability to produce and sell marketable concentrates and related treatment and refining charges, the sufficiency of our infrastructure, the performance of our personnel and equipment, our ability to maintain and obtain mining interests and permits, the state of government and community relations, and our compliance with existing and future laws and regulations. We sometimes state possible outcomes as high and low ranges which are intended to provide a sensitivity analysis as variables are changed but are not intended to represent that actual results could not fall outside of the suggested ranges. Actual results and experience may differ materially from these assumptions. Any production, cost, expenditure or financial results estimates speak only as of the date on which they are made, and we disclaim any intent or obligation to update such estimates, whether as a result of new information, future events or otherwise. Accordingly, these forward-looking statements should be considered in the context in which they are made, and undue reliance should not be placed on them.

We may make use of derivative contracts to protect against market price volatility exposes us to risk of opportunity loss, mark-to-market fair value adjustments, potential cash collateral calls and exposure to counterparty credit risk.

We have in the past, and may in the future, enter into price risk management contracts to protect against fluctuations in the price of gold and silver, foreign currency rates and changes in the prices of fuel and other input costs. These contracts could include forward sales or purchase contracts, futures contracts, purchased or sold put and call options and other derivative instruments. We entered into price risk management contracts on certain gold sales in 2024 and 2025. We determined to implement these contracts to provide for a minimum level of revenue from the sales of the covered gold and silver ounces in order to mitigate the risk of not being able to fund all or a portion of the costs of several significant projects at our existing operations, as well as provide greater certainty in our planning and budgeting process. The use of derivative instruments can expose us to risk of an opportunity loss and may also result in significant mark-to-market fair value adjustments, which may require us to post cash or other collateral or have a material adverse impact on reported financial results. Our exposure may be particularly acute for our derivative instruments accounted for as cash flow hedges because those contracts are cash net settled on a monthly basis. We are exposed to credit risk with contract counterparties, including, but not limited to, sales contracts and derivative contracts. In the event of nonperformance in connection with a contract, we could be exposed to a loss of value for that contract.

If we acquire another property, we may be unable to successfully integrate, may not realize the expected benefits of recent or future acquisitions or may face risks associated with divestitures.

We may selectively acquire other businesses or assets or to spread our operational risks. Any acquisition would be accompanied by risks, including:

a significant change in macroeconomic conditions, including commodity prices, treatment and refining charges or stock prices after we have committed to complete the transaction and established the purchase price or exchange ratio;
additional debt incurred or equity issued to fund some or all of acquisition consideration, resulting in increased interest expense and other borrowing costs and dilution of our existing stockholders;
a material ore body may prove to be below our expectations;
processing facilities may not operate as well as anticipated, and may require significant maintenance, downtime and capital investment;

difficulties integrating and assimilating the operations and personnel of any acquired companies and supporting expanded operations, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization;
difficulties or loss of social license to operate resulting from failure of efforts to establish positive relationships and/or agreements with local communities or local indigenous peoples; and
the acquired business or assets may have significant liabilities, such as environmental liabilities, or significant capital expenditures that we failed to discover or have underestimated.

We cannot predict the impact of future acquisitions on the price of our common stock or assure that we will be able to obtain necessary acquisition or development financing on acceptable terms or at all. Unprofitable acquisitions, or additional liabilities, indebtedness or issuances of securities in connection with such acquisitions or any future mine development, may negatively affect our results of operations.

We are dependent upon information technology and operational technology, which are subject to cybersecurity incidents, disruption, damage, failure and other risks associated with implementation and integration.

The information technology and operational technology used in our business and operations are subject to disruption, damage or failure from a variety of sources, including, without limitation, computer viruses, security breaches, cyberattacks, natural disasters and defects in design. Cybersecurity incidents, in particular, are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to data or machines and equipment, other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected information, and the corruption of data or the disabling, misuse or malfunction of machines and equipment. Various measures have been implemented to manage our risks related to information technology, operational technology and network disruptions. However, given the unpredictability of the timing, nature and scope of information or operational technology disruptions, we could potentially be subject to production downtimes, operational delays, operating accidents, the compromising of confidential or otherwise protected information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems, equipment and networks or financial losses from remedial actions, any of which could have a material adverse effect on cash flows, financial condition or results of operations. We may also incur large expenditures to recover data, to repair or replace networks or information or to protect against similar future events.

We could also be adversely affected by system or network disruptions if new or upgraded information technology systems are defective, not installed properly or not properly integrated into operations. Various measures have been implemented to manage the risks related to the system implementation and modification, but system modification failures could have a material adverse effect on our business, financial position and results of operations. Although the Company has not experienced any material loss to date relating to cybersecurity, there can be no assurance that the Company will not incur such loss in the future. The Company currently does not maintain insurance policies to protect against losses arising from cybersecurity incidents that may occur.

There has been heightened legislative and regulatory focus on data privacy and cybersecurity in the United States and elsewhere. We may be required to comply with a fast-evolving set of legal requirements in this area, including substantive data privacy and cybersecurity standards. This regulatory environment may present material obligations and risks to our business, including significantly expanded compliance burdens, costs and enforcement risks.

We may be expected to continue enhancing our ESG practices to meet evolving and inconsistent standards.

ESG factors, including climate-related initiatives such as GHG emissions targets and climate risk management, are a metric used by many institutional investors to review and assess the performance of the Company and a significant factor in their investment decisions. We believe we have established ourselves as a leader among peers in ESG and continued to advance our ESG initiatives, and have adopted specific, objective goals such as continuing to improve our industry-leading safety record, reducing the net intensity of our GHG emissions across the Company, advancing our commitment to an inclusive culture to attract and retain the workforce we need today and in the future, strengthening community relations and protecting critical habitat. However, there are no assurances that our efforts will be sufficient or meet the standards set by ESG analysts or institutional or other investors.

Our operations may be disrupted, and our financial results may be adversely affected by an outbreak of infectious disease or pandemic.

An outbreak of infectious disease, pandemic or a similar public health threat, such as the COVID-19 pandemic, and the response thereto, could adversely impact our business and operations. If a significant portion of our workforce becomes unable to work or travel to our operations due to illness or government restrictions (including travel restrictions and “shelter-in-place” and similar orders restricting certain activities that may be issued or extended by authorities), we may be forced to reduce or suspend operations at one or more of our mines, which could reduce production, limit exploration activities and development projects and impact liquidity and financial results. While we have implemented several initiatives to protect the health and safety of our employees, contractors and communities to date, some of which have and may result in additional costs to us, there can be no assurance that the Company will remain unaffected by potential future health crises. Public health threats and related government restrictions, including potential closure of national borders, may disrupt the supply of raw goods, equipment, supplies and services upon which our operations rely. Third parties with whom we conduct business, including the refiners and smelters that process and, in some cases, purchase the doré and concentrate produced by our mines, are also subject to these risks and may be required to reduce or suspend operations, which could impact our ability to conduct our operations, advance exploration, development and expansion projects, or sell our products and generate revenues.

To the extent any pandemic or other public health threat adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this Annual Report on Form 10-K, such as those relating to our operations and indebtedness and financing. Because of the highly uncertain and dynamic nature of events related to pandemics and other public health threats, it is not possible to estimate the full potential impact on our business. However, these effects could have a material impact on our business and results of operations or financial condition.

Our business depends on good relations with, and the retention and hiring of, personnel.

We may experience labor disputes, work stoppages or other disruptions in production that could adversely affect our business and results of operations. Labor disruptions may be used to advocate labor, political or social goals, particularly at non-U.S. mines. For example, labor disruptions may occur in sympathy with strikes or labor unrest in other sectors of local economies. We cannot assure that work stoppages, union organizing activities or other disruptions will not occur in the future. Any such work stoppage or disruption could expose us to significant costs and have a material adverse effect on our business, results of operations or financial condition. We compete with other mining companies to attract and retain key executives, skilled labor, contractors and other employees. We may be unable to continue to attract and retain skilled and experienced employees and contractors, which could have an adverse effect on our competitive position or adversely impact our results of operations or financial condition.

Continuation of our mining operations is dependent on the availability of sufficient and affordable water supplies.

Our mining operations require significant quantities of water for mining, ore processing and related support facilities. In particular, our property in Mexico is in areas where water is scarce and competition among users for continuing access to water is significant. Continuous production and mine development is dependent on our ability to acquire and maintain water rights and claims and to defeat claims adverse to current water uses in legal proceedings. Although our operating mine currently has sufficient water rights and claims to cover its operational demands, we cannot predict the potential outcome of pending or future legal proceedings relating to enforcement of water rights, claims and uses, or potential pressure from other users of water, government agencies and officials, and/or non-governmental organizations to limit the amount of water made available to or used for mining activities, regardless of legally valid water rights.

Water shortages may also result from weather or environmental and climate impacts outside of our control. Shortages in water supply could result in interruptions to production and processing activities. In addition, the scarcity of water in certain regions could result in increased costs to obtain sufficient quantities of water to conduct our operations. The loss of some or all water rights, ongoing litigation to enforce existing water rights, ongoing shortages of water to which we have rights and/or significantly higher costs to obtain sufficient quantities of water could result in our inability to maintain production at current or expected levels, require us to curtail or shut down mining operations or could prevent us from pursuing expansion or development opportunities, which could adversely affect our results of operations and financial condition. Laws and regulations may be introduced in the jurisdictions in which we operate which could also limit access to sufficient water resources, adversely affecting our existing operations or our expansion or development plans.

We may not be able to recognize the benefits of deferred tax assets.

We have accrued deferred tax assets in various jurisdictions from past operating losses, but may not be able to utilize part or all of these assets in the future. We recognize the expected future tax benefit from these assets only if it is considered more likely than not that the tax benefit will be realized. Otherwise, a valuation allowance is applied against deferred tax assets that are not more likely than not to be utilized. Assessing the recoverability of deferred tax assets requires management to make significant estimates related to expectations of future taxable income, including application of existing tax laws in each jurisdiction, assumptions about future metals prices, the macroeconomic environment and results of our operations. To the extent that future cash flows and taxable income differ significantly from estimates, our ability to realize deferred tax assets could be impacted. Additionally, future changes in tax laws or changed interpretations or applications of relevant laws by government agencies – even if contrary to existing legal precedent or punitive in nature – could limit our ability to realize the future benefits represented by our deferred tax assets and annual limitations may impact the timeframe over which the net operating loss carryforwards can be used, potentially impacting cash tax liabilities in a future period.

Our accounting and other estimates may be imprecise.

Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts and related disclosure of assets, liabilities, revenue, and expenses at the date of the consolidated financial statements and reporting periods. Future estimates and actual results may differ materially from these estimates as a result of using different assumptions or conditions. For additional information, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

A significant amount of our mining properties is subject to exchange control policies, the effects of inflation, and currency fluctuations between the U.S. dollar and the Mexican peso.

Our revenue and external funding are primarily denominated in U.S. dollars. However, certain mining, processing, maintenance, and exploration costs are denominated in Mexican pesos. These costs principally include electricity, labor, water, maintenance, local contractors, and fuel. The appreciation of the peso against the U.S. dollar increases expenses and the cost of purchasing capital assets in U.S. dollar terms in Mexico, which can adversely impact our operating results and cash flows. Conversely, the depreciation of the Mexican peso decreases operating costs and capital asset purchases in U.S. dollar terms. When inflation in Mexico increases without a corresponding devaluation of the Mexican peso, our financial position, results of operations, and cash flows could be materially adversely affected. Current and future inflationary effects may be driven by, among other things, supply chain disruptions, governmental stimulus or fiscal policies, and geopolitical instability.

Lack of infrastructure could forestall or prevent further exploration and advancement.

Exploration and development activities depend on adequate infrastructure. Reliable roads, power sources, and water supply are important factors that affect capital and operating costs and the feasibility and economic viability of a project. Unanticipated or higher than expected costs and unusual or infrequent weather phenomena, or government or other interference in the maintenance or provision of such infrastructure, could materially adversely affect our business, financial condition, and results of operations.

There is substantial doubt about our ability to continue as a going concern.

Our consolidated financial statements have been prepared assuming the Company will continue as a going concern. This assumes continuing operations and the realization of assets and liabilities in the normal course of business.

We have incurred significant losses since our inception and expect to continue to incur losses as a result of costs and expenses related to maintaining our properties and general and administrative expenses. As of December 31, 2025, we had cash of approximately $4.2 million and an accumulated deficit of approximately $65.4 million. As a result of our evaluation of the Company’s liquidity for the next twelve months, we have included a discussion about our ability to continue as a going concern in our consolidated financial statements, and our independent auditor’s report for year ended December 31, 2025 includes an explanatory paragraph that expresses substantial doubt about our ability to continue as a “going concern.” Our capital needs have, in recent years, been funded through sales of our debt and equity securities, including debt convertible into equity. In the event that we are unable to raise sufficient additional funds, we may be required to delay, reduce or severely curtail our operations or otherwise impede our on-going business efforts, which could have a material adverse effect on our business, operating results, financial condition, long-term prospects and ability to continue as a viable business.

Risks Related to Indebtedness and Financing

Our future operating performance may not generate cash flows sufficient to meet debt payment obligations.

As of December 31, 2025, we had approximately $15 million of outstanding indebtedness. Our ability to make scheduled debt payments on outstanding indebtedness will depend on future results of operations and cash flows. Our results of operations and cash flows, in part, are subject to economic factors beyond our control, including the market prices of gold and silver, among other factors described in this Item. Although we have been successful in repaying or refinancing debt historically, there can be no assurance that we can continue to do so. We may not be able to generate enough cash flow to meet obligations and commitments under outstanding debt instruments. If and to the extent liquidity resources are insufficient to support short- and long-term expenditures, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures, dispose of material assets or operations, incur additional debt or equity capital or restructure or refinance our indebtedness. We cannot predict whether we would be able to refinance debt, issue equity or debt securities or dispose of assets to raise funds on a timely basis or on satisfactory terms, which could have a material adverse impact on the Company. The cost of borrowing additional funds or refinancing outstanding indebtedness may vary depending on market conditions and interest rate levels. The agreements governing our outstanding indebtedness restrict our ability to dispose of certain assets and use the proceeds from those dispositions and may also restrict our ability to raise debt or equity capital to be used to repay other indebtedness when it becomes due. We may not be able to consummate those dispositions or to obtain proceeds in an amount sufficient to meet any debt service obligations then due.

The terms of our debt impose restrictions on our operations.

The agreements governing our outstanding indebtedness include a number of significant negative covenants. A breach of any of the terms of our debt could result in an event of default under the applicable agreement governing our outstanding indebtedness that, if not cured or waived, could cause all amounts outstanding with respect to the debt to be due and payable immediately. Our inability to meet any of these covenants may also result in a lender requiring us to agree to restrictive covenants which may, among other things, limit our ability to fund our existing operations or incur additional indebtedness. Our assets and cash flow may be insufficient to repay borrowings fully under all of our outstanding debt instruments if any of our debt instruments are accelerated upon an event of default, which could force the Company into bankruptcy or liquidation.

Risks Related to Applicable Laws and Regulations

We are subject to significant governmental regulations and related costs and delays associated with compliance may negatively affect our business.

Mining activities are subject to extensive federal, state, local and foreign laws and regulations governing environmental protection, natural resources, prospecting, development, production, post-closure reclamation, taxes, labor standards and occupational health and safety, including mine safety, toxic substances and other matters. The costs associated with compliance with such laws and regulations are substantial. Changes in existing laws, possible future laws and regulations, or more restrictive interpretations of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures, restrictions on or suspensions of operations and delays in the development of new properties. Recent amendments to mining, water and environmental laws in Mexico, and the subsequent corresponding regulations thereto, could impose additional restrictions on our ability to obtain and maintain mining and water rights and operate in Mexico, among other potentially adverse provisions. Legal actions challenging the validity and implementation of these recent amendments have been filed by various groups and the proceedings remain ongoing. Failure to comply with applicable laws, regulations and permitting requirements may result in temporary or extended shutdowns, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, which may require corrective measures, including the payment of fines or penalties, capital expenditures, installation of additional equipment or remedial actions, any of which could have a material, adverse effect on our business and results of operations.

Compliance with environmental regulations and litigation based on environmental regulations could require significant expenditures.

Environmental regulations mandate, among other things, the maintenance of air and water quality standards, land development and land reclamation, and set forth limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation and environmental justice provisions are evolving in a manner that may require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects, and a heightened degree of responsibility for mining companies and their officers, directors and employees. We may incur environmental costs that could have a material adverse effect on financial condition and results of operations. Any failure to remedy

an environmental problem could require us to suspend operations or enter into interim compliance measures pending completion of the required remedy. The environmental standards that ultimately may be imposed at a mine site affect the cost of remediation and could exceed the financial accruals that we have made for such remediation.

The potential exposure may be significant and could have a material adverse effect on our financial condition and results of operations.

Moreover, governmental authorities and private parties may bring lawsuits based upon damage to property and injury to persons resulting from the environmental, health and safety impacts of prior and current operations, including operations conducted by other mining companies many years ago on properties that we currently or previously owned. These lawsuits could lead to the imposition of substantial fines, remediation costs, penalties and other civil and criminal sanctions. Substantial costs and liabilities, including for restoring the environment after the closure of mines, are inherent in our operations. We cannot assure that any such law, regulation, enforcement or private claim would not have a material adverse effect on our financial condition, results of operations or cash flows. Regulations under the General Law of Ecological Balance and Environmental Protection (“GLEBPE”) relate to prevention and control of the pollution of the atmosphere in Mexico. In addition, there are numerous legislative and regulatory initiatives related to climate change, reductions in greenhouse gas emissions, or energy policy and adoption of these initiatives through legislative actions or administrative policy could have a material adverse effect on results of operations and cash flows. However, we are unable to predict the scope, nature and timing of any new or increased environmental laws and regulations and therefore cannot predict the ultimate impact of such laws and regulations on our business or financial results. We continue to monitor existing and proposed laws and regulations in the jurisdictions in which we operate to consider actions we may take to potentially mitigate any unfavorable impact of such laws or regulations.

We are required to obtain and renew governmental permits in order to conduct operations, a process which is often costly and time-consuming. Our ability to obtain necessary government permits to expand operations or begin new operations may be materially affected by third-party activists.

In the normal course of our business, we are required to obtain and renew governmental permits for exploration, operations and expansion of existing operations. Obtaining and renewing governmental permits is a complex and time-consuming process. The timeliness and success of permitting efforts are contingent upon many variables not within our control, including the interpretation of permit approval requirements administered by the applicable permitting authority and government and third-party sentiment towards the mining industry generally. We may not be able to obtain or renew permits that are necessary to our operations, or the cost and time required to obtain or renew permits may exceed our expectations. Any unexpected delays or costs associated with the permitting process could impede or delay the development or operation of a mine, which in turn could have a material adverse effect on our revenues and future growth. Any delay in obtaining a permit may require us to revise mine plans or curtail expected production, which could have a material adverse effect on results of operations and cash flow. In addition, key permits and approvals may be revoked or suspended or may be changed in a manner that adversely affects our operations.

Private parties such as environmental activists frequently attempt to intervene in the permitting process and to persuade regulators to deny necessary permits or seek to overturn permits that have been issued. Obtaining the necessary governmental permits is a complex and time-consuming process involving numerous jurisdictions and often involving public hearings and costly undertakings. These third-party actions can materially increase the costs and cause delays in the permitting process and could cause us to not proceed with the development or expansion of a mine. In addition, our ability to successfully obtain key permits and approvals to explore for minerals and to develop, operate and expand mines, as well as to conduct our operations, will likely depend on our ability to develop, operate, expand and close mines in a manner that is consistent with the creation of social and economic benefits in the surrounding communities, which may or may not be required by law. Our ability to obtain permits and approvals and to successfully operate in particular communities may be adversely impacted by real or perceived detrimental events associated with our activities or those of other mining companies affecting the environment, human health and safety of communities in which we operate.

Our business is subject to anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and reputational harm.

We operate in certain jurisdictions that have experienced governmental and private sector corruption. The U.S. Foreign Corrupt Practices Act, as well as Canadian and Mexican anti-bribery laws generally prohibit companies and their intermediaries from making improper payments for the purpose of obtaining or retaining business or other commercial advantage. Violations of these laws, or allegations of such violations, could lead to civil and criminal fines and penalties, litigation, and loss of operating licenses or permits, and may damage our reputation, which could have a material adverse effect on our business, financial position and results of operations. Our Code of Business Conduct and Ethics and other corporate policies mandate compliance with these

anti-bribery laws, and we provide training and education on these topics to our employees; however, there can be no assurance that our internal control policies and procedures always will protect us from recklessness, fraudulent behavior, dishonesty or other inappropriate acts or violations of laws committed by our affiliates, employees or agents.

We are subject to litigation and may be subject to additional litigation in the future.

We are currently, and may in the future become, subject to other litigation, arbitration or proceedings with other parties. If decided adversely to us, these legal proceedings, or others that could be brought against us in the future, could have a material adverse effect on our financial position or prospects. Responding to disputes, even those that are without merit or ultimately decided in our favor, may require us to incur significant expense, devote significant resources, and may generate adverse publicity, which could materially and adversely affect our business. In the event of a dispute arising at our foreign operations, we may be subject to the exclusive jurisdiction of foreign courts or arbitral panels or may not be successful in subjecting foreign persons to the jurisdiction of courts or arbitral panels in the United States. Our inability to enforce our rights and the enforcement of rights on a prejudicial basis by foreign courts or arbitral panels could have an adverse effect on our results of operations and financial position.

Disputes regarding our mining claims, concessions or surface rights to land in the vicinity of our mining projects could adversely impact operations.

The validity of exploration or mining claims, concessions or rights, which constitute most of our property holdings, is often uncertain and may be contested. We have used commercially reasonable efforts, in accordance with industry standards, to investigate our title or claims to our various properties, however, no assurance can be given that applicable governments will not revoke or significantly alter the conditions of the applicable exploration or mining claims, concessions or rights, or that such exploration or mining claims, concessions or rights will not be challenged by third parties. Although we have attempted to acquire satisfactory title to undeveloped properties, in accordance with mining industry practice, we do not generally obtain title opinions until a decision is made to develop a property. As a result, some titles may be defective, particularly titles to undeveloped properties. Defective title to any of our exploration or mining claims, concessions or rights could result in litigation, insurance claims and potential losses affecting our business as a whole. There may be challenges to the title of any of the claims, concessions or rights comprising our projects that, if successful, could impair development and operations. A defect could result in us losing all or a portion of our right, title, estate and interest in and to the properties to which the title defect relates. In Mexico, while mineral rights are administered by the federal government through federally issued mining concessions, federally recognized agrarian communities called ejidos control surface or surface access rights to the land. An ejido may sell or lease lands directly to a private entity. While we have agreements or are in the process of negotiating agreements with the ejidos that impact all of our projects in Mexico, some of these agreements may be subject to renegotiation or legal challenges. Refer to Item 3. Legal Proceedings for a description of current legal proceedings related to our mining concessions.

The Company’s effective tax rate could be volatile and materially change as a result of changes in tax laws, mix of earnings and other factors.

We are subject to tax laws in the United States and Mexico. Changes in fiscal and tax policies, including new tax legislation and reform to existing policy, may have a significant negative impact on the Company’s effective tax rate. Additionally, the jurisdictions in which we operate have and may in the future continue to encounter financial difficulties resulting from one or both of lower tax revenue and new and increased costs. National, state or local governments may seek to raise existing taxes or introduce new taxes, which may adversely affect our business and financial results.

Risks Related to Our Common Stock, Securities Markets and Investment in Our Common Stock

We have the ability to issue additional equity securities, including in connection with any acquisition of other companies, which would lead to dilution of our issued and outstanding common stock and may materially and adversely affect the price of our common stock.

The issuance of additional equity securities or securities convertible into equity securities, whether to acquire new companies or businesses or for other strategic benefits, would result in dilution of our existing stockholders’ equity ownership. An increase to the number of outstanding shares of DynaResource’s common stock may impact the marketplace’s view of DynaResource’s common stock and may lead to adverse changes in the stock’s trading volume and trading price. We are authorized to issue, without stockholder approval, 13.7 million shares of preferred stock in one or more series, to establish the number of shares to be included in each series and to fix the designation, powers, preferences and relative participating, optional, conversion and other special rights of the shares of each series as well as the qualification, limitations or restrictions on each series. Any series of preferred stock could contain dividend rights, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences or other

rights superior to the rights of holders of our common stock. If we issue additional equity securities, the price of our common stock may be materially and adversely affected.

Holders of our common stock may not receive dividends.

We have not historically declared cash dividends on our common stock. Holders of our common stock are entitled to receive only such dividends as our Board of Directors may declare out of funds legally available for such payments. We are incorporated in Delaware and governed by the Delaware General Corporation Law. Delaware law allows a corporation to pay dividends only out of surplus, as determined under Delaware law or, if there is no surplus, out of net profits for the fiscal year in which the dividend was declared and for the preceding fiscal year. Under Delaware law, however, we cannot pay dividends out of net profits if, after we pay the dividend, our capital would be less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. Our ability to pay dividends will be subject to our future earnings, capital requirements and financial condition, as well as our compliance with covenants related to existing or future indebtedness and would only be declared in the discretion of our Board of Directors.

Our common stock price may be volatile and as a result you could lose all or part of your investment.

In addition to volatility associated with equity securities in general, the value of your investment could decline due to the impact of any of the following factors upon the market price of our shares of common stock:

disappointing results from our mining operations;
decline in demand for our shares of common stock;
downward revisions in securities analysts’ estimates or changes in general market conditions;
technological innovations by competitors that are better funded than we are;
investor perception of our industry or our prospects; and
general economic trends.

Stock markets in general have experienced extreme price and volume fluctuations, and the market prices of securities have been highly volatile. These fluctuations are often unrelated to operating performance and may adversely affect the market price of our shares of common stock.

There has been a limited public market for our common stock and there is no assurance that a more active, liquid and orderly trading market will develop for our common stock or what the market price of our common stock will be.

There is and has been a limited public market for shares of our common stock on the OTCQX. Investors may find it difficult to obtain accurate quotations as to the market value of our common stock. In addition, if we fail to meet the criteria set forth in SEC regulations, various requirements would be imposed by law on broker-dealers who sell our securities to persons other than established customers and accredited investors. Consequently, such regulations may deter broker-dealers from recommending or selling our common stock, which may further affect liquidity. This could also make it more difficult to raise additional capital.

Potential future sales pursuant to registration rights granted by the Company and under Rule 144 may depress the market price for our shares of common stock.

The Company has granted one of its stockholders’ registration rights with respect to their shares of Series C preferred stock convertible into shares of common stock. Such future sales of our shares of common stock by that existing stockholders, pursuant to and in accordance with the provisions of any registration statement, may have a depressive effect on the market price of our shares of common stock. Further, in general, under Rule 144 under the Securities Act, a person who has satisfied a minimum holding period of between six months and one-year and any other applicable requirements of Rule 144, may thereafter sell such shares publicly. A significant number of our currently issued and outstanding shares of common stock held by existing stockholders, including officers and directors and other principal stockholders are currently eligible for resale pursuant to and in accordance with the provisions of Rule 144. The possible future sale of our shares by our existing stockholders, pursuant to and in accordance with

the provisions of Rule 144, may have a depressive effect on the price of our Shares of common stock in the applicable trading marketplace.

Financial Industry Regulatory Authority, Inc. (“FINRA”) has adopted sales practice requirements that may also limit a stockholder’s ability to buy and sell our common stock.

FINRA has adopted rules that require that, in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative, low-priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our shares of common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares of common stock.

We face risks related to compliance with corporate governance laws and financial reporting standards.

The Sarbanes-Oxley Act, as well as related rules and regulations implemented by the SEC and the Public Company Accounting Oversight Board, require changes in the corporate governance practices and financial reporting standards for public companies. These laws, rules and regulations, including compliance with Section 404 of the Sarbanes-Oxley Act relating to internal control over financial reporting, referred to as Section 404, materially increased our legal and financial compliance costs and made some activities more time-consuming and more burdensome.

Volatility in the price of our common stock may subject us to securities litigation.

As discussed above, the market for our common stock has been characterized recently by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may in the future be the target of similar litigation. Securities litigation could result in substantial costs and liabilities and could divert management’s attention and resources.

A “short squeeze” due to a sudden increase in demand for shares of our common stock that largely exceeds supply and/or focused investor trading in anticipation of a potential short squeeze have led to, may be currently leading to, and could again lead to, extreme price volatility in shares of our common stock.

Investors may purchase shares of our common stock to hedge existing exposure or to speculate on the price of our common stock. Speculation on the price of our common stock may involve long and short exposures. To the extent aggregate short exposure exceeds the number of shares of our common stock available for purchase on the open market, investors with short exposure may have to pay a premium to repurchase shares of our common stock for delivery to lenders of our common stock. Those repurchases may, in turn, dramatically increase the price of shares of our common stock until additional shares of our common stock are available for trading or borrowing. This is often referred to as a “short squeeze.” With the recent substantial increase in volume of our shares being traded and trading price, the proportion of our common stock that may be traded in the future by short sellers may increase the likelihood that our common stock will be the target of a short squeeze. A short squeeze and/or focused investor trading in anticipation of a short squeeze have led to, may be currently leading to, and could again lead to volatile price movements in shares of our common stock that may be unrelated or disproportionate to our financial performance or prospects and, once investors purchase the shares of our common stock necessary to cover their short positions, or if investors no longer believe a short squeeze is viable, the price of our common stock may rapidly decline. Investors that purchase shares of our common stock during a short squeeze may lose a significant portion of their investment. Under the circumstances, we caution you against investing in our common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.

If securities or industry analysts do not publish research or reports about the Company, or publish negative reports, the Company’s share price and trading volume could decline.

The trading market for our shares of common stock may be influenced by the extent to which securities or industry analysts publish research or reports about the Company. We do not have any control over these analysts. If our financial performance fails to meet analyst estimates or one or more of the analysts who cover the Company downgrade its shares of common stock or change their opinion, the Company’s share price would likely decline. Currently, the Company has limited or no analyst coverage, and there can be no assurance that analysts will initiate or maintain coverage of the Company in the future.

The absence of analyst coverage, or limited dissemination of information about the Company by market participants, may reduce investor awareness and interest in the Company, which could result in lower trading volume, increased share price volatility, or a decline in the market price of our common stock. In addition, without regular third‑party analysis, investors may have less information available to evaluate the Company, which could adversely affect liquidity in the Company’s securities.

Because the Company does not anticipate paying any cash dividends in the foreseeable future, capital appreciation, if any, would be your sole source of gain.

We currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not anticipate declaring or paying any cash dividends for the foreseeable future. As a result, capital appreciation, if any, of the Company’s shares of common stock would be your sole source of gain on an investment in such shares for the foreseeable future.

Potential future offerings of debt, which would be senior to our common stock upon liquidation, and/or preferred equity securities, which may be senior to our common stock for purposes of distributions or upon liquidation, could adversely affect the market price of our common stock.

In the future, we may attempt to increase our capital resources by making additional offerings of debt or preferred equity securities, including convertible or non-convertible senior or subordinated notes, convertible or non-convertible preferred stock, medium-term notes and trust preferred securities. Upon liquidation, holders of our debt securities and shares of preferred stock and lenders with respect to other borrowings will receive distributions of our available assets prior to the holders of our common stock. In addition, any preferred stock we may issue could have a preference on liquidating distributions or a preference on distribution payments that could limit our ability to make a distribution to the holders of our common stock. Since our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the risk of our future offerings reducing the market price of our common stock.

Anti-takeover provisions of Delaware law could impair a takeover attempt.

We are subject to anti-takeover provisions under Delaware law, which could delay or prevent a change of control. These provisions may make more difficult the removal of management and may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for our securities. These provisions will include:

no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;
the right of our Board to elect a director to fill a vacancy created by the expansion of our Board or the resignation, death, or removal of a director in certain circumstances, which prevents stockholders from being able to fill vacancies on our Board; and
a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders.

If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. As a result, current and potential stockholders could lose confidence in our financial reporting, which would harm our business and the trading price of our common stock.

Effective internal controls are necessary for us to provide reliable financial reports, prevent fraud and operate successfully as a public company. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results would be harmed. We cannot be certain that our efforts to develop and maintain our internal controls will be successful, that we will be able to maintain adequate controls over our financial processes and reporting in the future or that we will be able to comply with our obligations under Section 404 of the Sarbanes-Oxley Act of 2002. Any failure to develop or maintain effective internal controls, or difficulties encountered in implementing or improving our internal controls, could harm our operating results or cause us to fail to meet our reporting obligations. Ineffective internal controls could also cause investors to lose confidence in our reported financial information, which would likely have a negative effect on the trading price of our common stock.

Our business will be subject to the risks of climate change, natural catastrophic events, world events, and man-made problems such as power disruptions or terrorism.

A significant natural disaster, such as an earthquake, a fire, a flood, or significant power outage could have a material adverse impact on our business, results of operations and financial condition. Climate change or a natural disaster could affect our personnel, data centers, supply chain, manufacturing vendors, or logistics providers’ ability to provide materials and perform services such as manufacturing products or assisting with shipments on a timely basis. In addition, climate change could result in an increase in the frequency or severity of natural disasters. Climate change or a natural disaster may also affect our ability to occur raw materials needed for manufacturing and production. Likewise, we could be subject to other man-made problems, including but not limited to power disruptions and terrorist acts. Although we will maintain incident management and disaster response plans, in the event of a major disruption caused by a natural disaster or man-made problem, we may be unable to continue its operations and may endure system interruptions, reputational harm, delays in our development activities, lengthy interruptions in service, breaches of data security and loss of critical data, and our insurance may not cover such events or may be insufficient to compensate it for the potentially significant losses we may incur. Acts of terrorism and other geo-political unrest could also cause disruptions in our business or the business of our supply chain, manufacturers, logistics providers, partners, or customers or the economy as a whole. Any disruption in the business of its supply chain, manufacturers, logistics providers, partners or customers that impacts sales at the end of a fiscal quarter could have a significant adverse impact on our financial results. All of the aforementioned risks may be further increased if disaster recovery plans prove to be inadequate. To the extent that any of the above should result in delays or cancellations of customer orders, or the delay in the manufacture, deployment, or shipment of our products, our business, financial condition, and results of operations would be adversely affected.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

The Company has adopted processes to assess, identify, and manage material risks posed by cybersecurity threats. These processes are integrated into the Company’s overall enterprise risk management framework.

Cybersecurity risk management is overseen by the Company’s Managed Service Provider (MSP), Computer Doctoring Inc., which provides structured cybersecurity oversight, monitoring, and incident response services. The MSP has significant experience designing and implementing layered cybersecurity programs aligned with recognized frameworks, including NIST and ISO 27001 best practices.

The Company employs a multi-layered security model that includes:

Advanced endpoint detection and response (EDR)
Centralized monitoring and logging
Multi-Factor Authentication (MFA) and role-based access control
Third-party AI-driven email threat protection
Continuous patch management and vulnerability remediation
Dark web credential monitoring
Independent SaaS backup and disaster recovery controls

These controls are centrally monitored using the full Kaseya security and management suite, enabling proactive threat detection, system visibility, and operational oversight across the Company’s environment.

During the year ended December 31, 2025, the Company did not experience any risks from cybersecurity threats that materially affected or were reasonably likely to materially affect the Company’s business strategy, results of operations, or financial condition.

The Company’s Board of Directors, through its Audit Committee (the “Committee”), oversees cybersecurity risks. The MSP provides ongoing reporting to management regarding cybersecurity posture, threat activity, and incident response readiness. Any material cybersecurity risks or incidents are escalated to executive management and reported to the Committee as appropriate.

While the Company does not maintain an internal employee dedicated solely to cybersecurity risk management, it relies on its external MSP for specialized cybersecurity expertise, monitoring, and incident response.

ITEM 2. PROPERTIES

Corporate Headquarters

The Company leases office space for its corporate headquarters in Las Colinas, Irving, Texas. In February 2023, the Company entered into a 52-month extension of the original lease from September 2017 and added additional office space. As part of the agreement, the new lease term commenced and the Company received four months free rent upon completion of the finish out of the expansion space. The expansion was complete and the Company occupied the office space effective August 1, 2023. The Company makes tiered lease payments on the first of each month.

Administrative and Logistics Offices

DynaMéxico maintains administrative and logistics offices in Guamuchil and Mazatlan, Mexico, both of which are under month-to-month payment terms.

Mining Project Location

The SJG mine is located on map sheet G13-A81 in the Culiacan mining district of Sinaloa State, Mexico, at Latitude 26 ̊ , 9’ N, Longitude 107 ̊, 53’ W, approximately 120 kilometers east northeast of the coastal city of Los Mochis. The property on which the SJG mine resides, straddles the border separating the Mexican States of Sinaloa and Chihuahua. The SJG mine is located in the south-western portion of the property, and is located entirely within the State of Sinaloa, as shown in the maps below.

DynaMéxico claims an ownership interest in the San Jose de Gracia mineral concessions, which are comprised of 33 distinct concessions covering an aggregate of approximately 9,920 hectares.

The property on which the SJG mine resides is located in and around the village of San Jose de Gracia, approximately 100 km northeast of Guamuchil, on the west side of Mexico. The village of San Jose de Gracia has a small airstrip and can be accessed by a small airplane, or alternatively, by a dirt mountain road. There are roads providing access to the property on which the SJG mine resides which are accessible throughout the year, with the possible exception of June and July when the rainy season sometimes causes flooding and runoff to make the roads too muddy to navigate.

Local Resources and Infrastructure

Accommodations

The village of San Jose de Gracia maintains a few stores which offer essential goods and services. The camp site area, which is closer to the mining activities, maintains facilities of twelve rooms with additional lodging available in the village which can accommodate a total of about 238 persons.

Power

A power line to the SJG mine has been installed by the Comisión Federal de Electricidad, the only authorized power producer in

Mexico. The power line was installed in March 2012 from the La Estancia area of the municipality of Sinaloa de Leyva, a distance of approximately 75 kilometers.

The power line is currently 220 volts maximum capacity, which supports domestic use only, including the office and camp facilities at the SJG mine, such as water pump, air conditioning, refrigeration, lights, internet, and fans, as well as local residential use. The SJG mine produces its own diesel-generated power as a backup to the power grid.

Offices – Camp Facilities

The SJG mine sources many of its supplies from nearby towns, Guamuchil, Los Mochis and Culiacan. There is a satellite dish installed at the SJG mine providing communications to and from the SJG mine. At the SJG mine, DynaMexico maintains a camp staff, including geologists, field helpers, consultants, security, cooks and cleaners. Most of these employees come from the local community.

Mining Concessions

The SJG mine consists of the following 33 contiguous mining concessions which covers an area of approximately 9,920 hectares (24,513 acres):

Current Mining Concessions - San José de Gracia

Claim Name	Claim Number	Staking date	Expiry
AMPL. SAN NICOLAS	183815	22/11/1988	21/11/2038	17.4234
AMPL. SANTA ROSA	163592	30/10/1978	29/10/2028	25.0000
BUENA VISTA	211087	31/03/2000	30/03/2050	17.9829
EL CASTILLO	214519	02/10/2001	01/10/2051	100.0000
EL REAL	212571	07/11/2000	07/11/2052	2038.0000
EL REAL 2	216301	30/04/2002	29/04/2052	280.1555
FINISTERRE FRACC. A	219001	28/01/2003	27/01/2053	18.7856
FINISTERRE FRACC. B	219002	28/01/2003	27/01/2053	174.2004
GUADALUPE	189470	05/12/1990	04/12/2040	7.0000
LA GRACIA I	215958	02/04/2002	01/04/2052	300.0000
LA GRACIA II	215959	02/04/2002	01/04/2052	230.0000
LA LIBERTAD	172433	15/12/1983	14/12/2033	97.0000
LA NUEVA AURORA	215119	08/02/2002	07/02/2052	89.3021
LA NUEVA ESPERANZA	226289	06/12/2005	05/12/2055	40.0000
LA UNION	176214	26/08/1985	25/08/2035	4.1098
LOS TRES AMIGOS	172216	27/10/1983	26/10/2033	23.0000
MINA GRANDE	163578	10/10/1978	09/10/2028	6.6588
NUEVO ROSARIO	184999	13/12/1989	12/12/2039	32.8781
PIEDRAS DE LUMBRE 2	215556	05/03/2002	04/03/2052	34.8493
PIEDRAS DE LUMBRE 3	218992	28/01/2003	27/01/2053	4.3098
PIEDRAS DE LUMBRE No.4	212349	29/09/2000	28/09/2050	0.2034
PIEDRAS DE LUMBRE UNO	215555	05/03/2002	04/03/2052	40.2754
SAN ANDRES	212143	31/08/2000	30/08/2050	385.0990
SAN JOSÉ	208537	24/11/1998	23/11/2048	27.0000
SAN MIGUEL	183504	26/10/1988	25/10/2038	7.0000
SAN NICOLAS	163913	14/12/1978	13/12/2028	55.5490
SAN SEBASTIAN	184473	08/11/1989	07/11/2039	40.0000
SANTA MARIA	218769	17/01/2003	16/01/2053	4.2030
SANTA ROSA	170557	13/05/1982	12/05/2032	31.4887
SANTO TOMAS	187348	13/08/1986	12/08/2036	312.0000
TRES AMIGOS 2	212142	31/08/2000	30/08/2050	54.4672
FINISTERRE 4	231166	18/01/2008	17/01/2058	2,142.1302
FRANCISCO ARTURO	230494	06/09/2007	27/03/2057	3,279.5600
TOTAL				9,920.0000

Title of 32 of the 33 mining concessions is registered in the sole name of DynaMéxico. The one exception is the San Miguel concession. For the San Miguel concession, DynaMéxico has entered into transfer agreements with the registered owners of 50%

of the concession title, and DynaMéxico has also entered into promise to sell and purchase agreements with registered owners of the balance of the concession title. Under Mexican law, such agreements require the consent or relinquishment of first rights of refusal from the registered owners of 100% of the concession title, in order to have legal effect and be eligible for registration with the Mines Recorders’ Office. Refer to Item 3. Legal Proceedings for description of the current legal proceedings to confirm the Company’s right to nine of its concessions.

Under amendments to the Mining Law that came into effect in December 2006, the classifications of Mining Exploration Concessions and Mining Exploitation Concessions were replaced by a single classification of Mining Concessions valid for a renewable term of 50 years, commencing from the initial issuance date. To be converted into Mining Concessions at the time these amendments came into effect, former mining exploration and mining exploitation concessions had to be in good standing at the time of conversion.

All of the SJG mine concessions were in good standing and consequently were converted to 50-year Mining Concessions in December 2006, at the time the amendments to the Mining Law came into effect. To renew the 50-year term, Mining Concessions must be in good standing at the time an application for renewal is filed, and an application for renewal must be filed within 5 years prior to expiration of the term.

To maintain Mining Concessions in good standing, the registered owner must (a) pay bi-annual mining duties in advance, by January 31 and July 31 each year, (b) file assessment work reports by May 30 each year, for the preceding year (some exceptions apply), and (c) by January 31 each year, file statistical reports on exploration / exploitation work conducted for the preceding year. The Company believes it is in good standing regarding all above noted obligations.

Notice of Commencement of Production Activities and Annual Production Reports must be filed annually by January 31 each year for those concessions where mineral ore extraction is taking place. As a general provision, registered owners of Mining Concessions must follow environmental and labor laws and regulations in order to maintain their Mining Concessions in good standing.

The following claim location map shows the location of each of the concessions and the legend presents various areas of mining and drilling.

Surface Rights

In addition to the surface rights held by DynaMéxico pursuant to the Mining Law, the Company maintains access and surface rights for the SJG mine pursuant to a 20-year Land Lease Agreement. This lease agreement with the Santa Maria Ejido Community (the owners of the surface rights) is dated January 6, 2014 and continues through 2033. The lease agreement covers an area of 4,399 hectares surrounding the main mineral resource areas of the SJG mine and provides for annual lease payments of $1,359,443 Pesos (adjusted for inflation). The 2025 payment was $5,932,583 pesos (approx. $304,000 USD).

The lease agreement provides the Company with surface access to the core resource areas of the SJG mine (4,399 hectares), and allows for all permitted mining, production and exploration activities.

Water Rights Concession

The Company has secured the Water Rights Concession for the area surrounding the SJG mine. The Director of Water Administration of the National Water Commission of México (“CONAGUA”) formally certified in writing the rights of DynaMéxico to legally “use”, exploit and extract 1,000,000 cubic meters of water per year from the DynaMéxico extraction infrastructure located within the perimeter of the mining concessions. CONAGUA determined that the DynaMéxico water rights are not subject to any water rights concession or any other water extraction restriction. Water extracted by DynaMéxico will be

subject to applicable levies imposed by the Mexican tax authorities in accordance with current Mexican tax laws. The water concession provides sufficient water for current operations, and for the anticipated future needs of the SJG mine. The Company recycles water from the tailings pond back through the milling circuit, then back to the tailings pond.

Royalties, Encumbrances and Environmental Liabilities

The SJG mine is not subject to any royalties or encumbrances, other than in accordance with our Revolving Credit Line, and there are no known environmental liabilities.

Required Permits for Exploration, Drilling and Mining

In respect of permit requirements for mineral exploration and mining in Mexico, the most relevant applicable laws, regulations and official technical norms are the Mining Law, the Federal Environmental Protection and Ecological Equilibrium Act (plus its regulations), the Federal Sustainable Forestry Development Act (plus its regulations), the Federal Explosives and Firearms Act, the National Waters Act and the Mexican Official Norm 120.

To carry out mineral exploration activities, holders of mining concessions in Mexico are required to file at the offices of the Federal Secretariat of the Environment and Natural Resources ("SEMARNAT”) a "Notice of Commencement of Exploration Activities” or "Preventive Exploration Notice” in accordance with the guidelines of the Mexican Official Norm 120 ("NOM-120”).

If contemplated mineral exploration activities fall outside of the guidelines of the NOM-120 (e.g. exploration activities on rain forest areas), a "Change of Soil Use Permit Application” ("CSUP”) is required to be filed at SEMARNAT under the guidelines of the Federal Sustainable Forestry Development Act and its Regulations. To meet the requirements for issuance of a change of soil use permit, the applicant must file (together with the CSUP) a Technical Study ("Technical Justification Study”) to justify the change of soil use from forestry to mining, in order to demonstrate that biodiversity will not be compromised and that there will be no soil erosion or water quality deterioration on completion of the mineral exploration activities.

To carry out mining activities in Mexico, holders of mining concessions are required to file an "Environmental Impact Assessment Study” under the guidelines of the Federal Environmental Protection and Ecological Equilibrium Act and its Regulations, in order to evaluate the environmental impact of the contemplated mining activities.

If the use of explosives materials is required for execution of mineral exploration or mining activities, an Application for General Permit for Use, Consumption and Storage of Explosive ("GPCSE”) is required to be filed at the offices of the Secretariat of National Defense ("SEDENA”) under the guidelines of the Federal Explosives and Firearms Act. Under the Mining Law, holders of mining concessions in Mexico have the right to the use of the water coming from the mining works. Certification of water rights and/or issuance of water rights concessions are required from CONAGUA under the guidelines of the National Waters Act.

Fees or Bonding Requirements Necessary To Explore or Mine

As a pre-requisite for issuance of a CSUP, Article 118 of the Federal Sustainable Forestry Development Act provides the posting of a bond to the Mexican Forestry Fund for remediation, restoration and reforestation of the areas impacted by the mineral exploration activities.

As a pre-requisite for approval of Preventive Exploration Notice and Environmental Impact Assessment Study, the Federal Environmental Protection and Ecological Equilibrium Act and its Regulations require the posting of a bond to guarantee remediation and rehabilitation of the areas impacted by the mining activities.

Government Agencies Responsible For Any Applicable Permits

SEMARNAT is the office of the Federal Government of Mexico responsible for the review and issuance of a CSUP, the review of a Technical Justification Study and the filing of NOM-120. The Federal Attorney’s Office for the protection of the Environment is the enforcement branch of SEMARNAT responsible for the monitoring and enforcement of environmental laws and regulations. SEDENA is the office responsible for issuance of a GPCSE. CONAGUA is the office responsible for certification of water rights and issuance of water rights concessions.

Time Frame to Obtain Any Permit or Approval To Explore or Mine

NOM-120 is a notice to SEMARNAT only and has no prescribed processing time. Processing time for review and approval of a CSUP Application and Technical Justification Study varies depending on the workload of the SEMARNAT regional office where the application is filed, but a processing time of four months is typical.

Processing time for review and approval of an Environmental Impact Assessment Study varies depending on the workload of the SEMARNAT regional office where the application is filed, but a processing time of six months is typical. Processing time for issuance of a GPCSE by SEDENA is approximately six months. Processing time for issuance of a Water Rights Concession by CONAGUA is approximately six months.

DynaMéxico Permits and Bonding Requirements

Exploration Permit: On June 28, 2010, DynaMéxico filed a Preventive Exploration Notice (“Preventive Exploration Notice”) at the office of SEMARNAT in connection with contemplated mineral exploration activities at the La Prieta, San Pablo, La Purísima, La Unión, Tres Amigos and La Ceceña areas of the SJG mine. On July 21, 2010, SEMARNAT approved, for a term of 36 months, the execution of the mineral exploration activities at the SJG mine set out in the Preventive Exploration Notice, as it determined that such activities fall within the framework of the NOM-120, subject to the following conditions: (a) filing and approval by SEMARNAT of a CSUP with respect to the SJG mine (see below), and (b) posting of a bond in the amount of $134,487 Pesos to guarantee remediation and rehabilitation measures following the conclusion of the mineral exploration activities.

Change of Soil Use Permit

On August 9, 2010, DynaMéxico filed at the offices of SEMARNAT a CSUP Application and Technical Justification Study to carry out certain mineral exploration activities set out in the Preventive Exploration Notice approved by SEMARNAT on July 21, 2010 (see above) at the La Prieta, San Pablo, La Purísima, La Unión, Tres Amigos and La Ceceña areas of the SJG mine). On December 20, 2010, SEMARNAT approved the CSUP Application filed by DynaMéxico with respect to the SJG mine and authorized the execution of mineral exploration activities by DynaMéxico on 5,463 hectares of the SJG mine for a term of 36 months, and it is continually renewed as required.

Water Rights Certification

On March 8, 2012 the Director of Water Administration of CONAGUA certified in writing the rights of DynaMéxico to use, exploit and extract 1,000,000 cubic meters of water per year from the Company’s extraction infrastructure located at the SJG mine. CONAGUA determined that DynaMéxico’s water rights are not subject to any other water rights concession or any other water extraction restriction.

Bonding Requirements

Under the CSUP issued to DynaMéxico on December 20, 2010, SEMARNAT imposed upon DynaMéxico the obligation to post a bond in the amount of $116,911 Pesos for reforestation and remediation measures at the SJG mine. The Company maintains a greenhouse of 10,000 trees which are used in the reforestation efforts as necessary.

Under the Preventive Exploration Notice, SEMARNAT imposed upon and DynaMéxico complied with, the obligation to post a bond in the amount of $134,487 Pesos, to guarantee remediation and rehabilitation measures following the conclusion of the mineral exploration activities. As required by generally accepted accounting principals generally in the United States (“GAAP”) the Company also has an asset retirement obligation recorded as of December 31, 2025 for the net present value of the cost to dismantle and dispose the plant and remove the tailings pond at the SJG mine.

DynaMéxico has sought and obtained all required environmental permits, temporary land occupation rights and consent letters from the regulatory agencies, local municipalities and the State of Sinaloa, in order to conduct its mining, production, exploration and drilling activities on the four main deposit areas at the SJG mine. DynaMéxico will be required to obtain further permits in order to conduct drilling in these four areas and the other areas, and in order to carry out future mining, milling, and production activities, and will timely obtain such permits, as and when required.

HISTORY OF SAN JOSE DE GRACIA

Historical production at San José de Gracia dates from the 1800’s and totals approximately one million ounces of gold mined from high-grade quartz veins. Large-scale mining in the camp began in 1870 and ended in 1910 with the onset of the Mexican Revolution. The majority of the production came from the Anglo, Rosario and La Cruz Mines on the Purisima Ridge trend, and from the La Prieta Mine on the La Prieta trend (reference Fig. 2). The remainder of the production was derived from as many as 60 smaller mines throughout the 12 square kilometer area, including the Palos Chinos, San Pablo, Tres Amigos, La Ceceña, Los Hilos, Santa Rosa, Veta Tierra, La Union, Santa Eduwiges, La Mochomera and La Parilla Mines.

This table presents the historic reported gold production for San Jose de Gracia prior to 1970:

Area		Gold<br>Grade (g/t)		Mined<br>Width (m)
Purisma Ridge Trend (includes the Anglo, Rosario, Jesus Maria and La Cruz Mines)	471,000		67.0	Unknown
La Prieta Trend (La Prieta Mine)	215,000		28.0	1.5 – 3 m
Other areas	300,000	Unknown		Unknown

It was not until the 1970’s when mining could resume at the SJG mine, when the first road to the SJG mine was opened, allowing Compañia Rosarito to begin producing gold from the Palos Chinos, San Pablo, Tres Amigos and La Union mines.

Recent Ownership of the Property

By 1977, the underlying owners of the mining concessions and subsequent vendors to Minera Finisterre SA de CV. (“Finisterre”) succeeded in acquiring control of most of the district, and installed a 70 ton per day flotation concentrator. Finisterre subsequently acquired the property through option agreements with the underlying vendors and continued some exploration work, although most of its financial resources were expended in erecting a larger, 200 ton per day concentrator.

Golden Hemlock Explorations Ltd., a Canadian company, obtained an option to acquire majority control of Finisterre and commenced work on the property in 1997. The actual exploration and development work was performed by Perforaciones Quest de Mexico (“PQM”), which was under contract to Finisterre, and whose efforts consisted primarily of core drilling, trenching and mapping. PQM completed a 63-hole, 6,000-meter core drilling program in 1997.

In 1998-1999, Pamicon Developments Ltd., a Canadian company, examined the results of the 1997 drilling program, including PQM’s technical work, in order to calculate possible mineral reserves, and to review the general status of the property.

During the first half of 1999, DynaResource and its agents arranged to collect samples for metallurgical testing. In June of 2000, DynaResource formed its subsidiary DynaMexico, in order to acquire and consolidate ownership of the SJG mine. By December 2003, DynaMexico had completed the acquisition of and consolidation of 100% of the SJG mine from Golden Hemlock and Finisterre - with the sole exception of the San Miguel mining concession.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

Topography, Physiography, and Vegetation

The topography of the San José de Gracia district is generally rugged with elevations varying from 400 meters in the valley bottoms to over 1600 meters in the higher Sierra. A network of small roads and tracks winds around areas nearer the old workings at San José de Gracia. Access to the remainder of the large property at the current stage of development is difficult without the use of horse or helicopter.

The SJG mine can be accessed by road, from either the City of Culiacán or the City of Guamuchil. Either route goes through the small town of Sinaloa de Leyva, then from Sinaloa de Leyva by gravel mountainous road to the village of San José de Gracia (population 750), which covers approximately 90 kilometers and is roughly a five-hour trip.

The SJG mine can also be accessed by air. A gravel airstrip is located adjacent to San Jose de Gracia. The airstrip is suitable for light aircraft and charter flights of 45 minutes duration are available from the cities of Los Mochis or Culiacán. Much of the labor for mining and production activities of DynaMéxico is provided by the local community of San José de Gracia.

Climate and Operating Season

The climate is semi-tropical with a rainy season dominating June and July. For some activities on the SJG mine, operations may be suspended during the rainy season.

EXPLORATION

DynaResource uses a multiple phase method of exploration. The initial activity consists of surface mapping and sampling to identify areas of interest. The next phase is detailed mapping and systematic sampling. Mapping and sampling of mine workings are also performed to define potential areas for future work. Geological mapping and samples have been collected in the past and sent for laboratory analysis by the Company. The prospects are then catalogued and prioritized for drilling.

Exploration and Drilling Protocol

The Company’s internal controls are designed to provide reasonable assurance that information and processes utilized in assessing its exploration results and resource estimates are reasonable and in line with industry best practices. These internal controls include quality assurance and quality control (“QA/QC”) in the collection, analysis, verification, storage, reporting and use of drillhole, assay, metallurgical and other technical and scientific information, including the following internal control protocols in place for exploration data:

Written procedures and guidelines to support preferred sampling methods and approaches, with periodic compliance reviews of adherence to such written procedures and guidelines;
Maintenance of a complete chain-of-custody, ensuring the traceability and integrity of the samples at all handling stages from collection, transportation, sample preparation and analysis to long-term sample storage;
Geological logs are checked and verified, and there is a physical sign-off to attest to the validation protocol required;
Quality control checks on collar and downhole survey data for errors or significant deviations;
Third-party fully certified labs are used for assays used in public disclosure or resource models;
Appropriate types of quality control samples are inserted into the sample stream at appropriate frequencies to assess analytical data quality;
Regular inspection of analytical and sample preparation facilities by appropriately experienced personnel;
QA/QC data are regularly verified to ensure that outliers, sample mix-ups, contamination, or laboratory biases during the sample preparation and analysis steps are correctly identified, mitigated or remediated. Changes to database entries are required to be documented; and
Database upload and verification procedures to ensure the accuracy and integrity of the data being entered into the project database. These are typically performed using software data-checking routines. Changes to database entries are required to be documented. Data are subject to regular backups.

EXPLORATION PLANS FOR 2026

The Company plans to continue its exploration drilling program, supported by ongoing underground geological mapping to refine structural interpretations of the SJG mine. Exploration priorities and timing will be determined by available capital, drilling results, corporate strategy, and market conditions, with data interpretation conducted by a “Qualified Person” within the meaning of S-K 1300 to support formal mineral resource analysis.

ITEM 3. LEGAL PROCEEDINGS

From time to time, the Company becomes involved in legal matters in the ordinary course of its business. The Company intends to defend itself vigorously against any such claims. It is the Company’s policy to accrue for amounts related to lawsuits brought against it if it is probable that a liability has been incurred and an amount can be reasonably estimated. Although the outcome of such matters cannot be predicted with certainty, the Company believes that the outcome of those ordinary-course matters in which it is currently involved will not have a material adverse effect on its results of operations, liquidity, or financial position.

DynaMexico Tax Re-assessment

On March 3, 2025, the Mexican tax authority, Servicio de Administración Tributaria ("SAT”), issued a reassessment for the 2021 tax year of DynaMexico asserting an aggregate adjustment totaling approximately $19 million USD ($368 million MXN), inclusive of inflationary adjustments, surcharges, interest, and penalties, arising from a combination of tax basis adjustments, expense deductibility matters, mining duties, including mining concession fees, and related items. Among other things, the Company believes that certain aspects of the reassessment do not appropriately reflect the application of an arm’s length transfer pricing methodology in connection with intercompany management fees.

On March 28, 2025, the Company submitted a request for a Conclusive Agreement (Acuerdo Conclusivo) with SAT through the Mexican Taxpayer Ombudsman, Procuraduría de la Defensa del Contribuyente ("Prodecon”), seeking to resolve the reassessment through an administrative dispute-resolution process.

Based on the most recent correspondence issued by SAT through Prodecon in January 2026, approximately $5.7 million USD ($112 million MXN) of the originally assessed amount has been successfully defended or otherwise resolved. The remaining $13.3 million USD ($256 million MXN) continues to be under review within the Conclusive Agreement process. The matters still under review primarily relate to the tax treatment of certain deposits, expense deductibility, mining duties, and the associated inflationary adjustments, surcharges, and penalties.

The Company continues to cooperate fully with SAT and Prodecon and is actively pursuing resolution of the remaining matters. While the ultimate outcome cannot be predicted with certainty, management believes that the reassessment amount will be further reduced through the ongoing administrative process.

During the course of its review, the Company identified previously unrecorded obligations related to Special and Extraordinary Mining Duties for fiscal years 2021, 2022, 2023 and 2024. As a result, a liability of $3 million USD has been recognized in the consolidated financial statements to reflect the Company’s current estimate of the amount owed in respect of these items. See Note 2 to the consolidated financial statements.

Title of Properties

On July 17, 2025, the Company’s Board of Directors (the “Board”) authorized Company management to commence a legal process under Mexican law referred to as "amparo” in order to protect the Company’s rights with respect to the following nine mining concessions (the "Impacted Concessions”) related to the SJG mine:

TITLE NO.	NAME	AREA (ha)
172216	LOS TRES AMIGOS	23.0000
184473	SAN SEBASTIÁN	40.0000
184999	NUEVO ROSARIO	32.8781
208537	SAN JOSÉ	27.0000
215555	PIEDRAS DE LUMBRE UNO	40.2754
215556	PIEDRAS DE LUMBRE 2	34.8493
226289	LA NUEVA ESPERANZA	40.0000
230494	FRANCISCO ARTURO	3,279.5600
231166	FINISTERRE 4	2,142.1302

During a review by the Company’s executive management of information related to the Company’s mining concessions, the Company became aware that a public website hosted by the Mexican Secretariat of Economy (Secretaría de Economía) (the "Website”) includes information indicating that the Impacted Concessions are not currently active. Although the Website also indicates that the published information is for informational purposes only and that such information is not officially valid, and the Company has not received any formal notification from any Mexican authority asserting adverse action that could result in the nullification or cancellation of the rights under any of the Impacted Concessions, the Board determined it prudent, as a precautionary measure, to authorize the Company to commence the amparo process to challenge the inactive status of the Impacted Concessions indicated on the Website and any related administrative action(s) taken in violation of the Company’s due process rights.

Notwithstanding the information on the Website, the Company has continued to comply with all obligations required under applicable Mexican law to maintain its concessions in good standing, and all corresponding payments have been duly made and accepted without objection by the applicable authorities.

The Company continues to review information available to it and intends to take appropriate action to protect its rights to the Impacted Concessions; however, no assurance can be provided regarding the outcome of its actions or the availability of the Impacted Concessions to the Company in the future.

Environmental Fine and Installment Arrangement

On July 19, 2024, the Federal Attorney for Environmental Protection (“PROFEPA”) issued a resolution determining a fine of MXN $8,251,320 against DynaMexico, in connection with alleged irregularities in the construction and operation of the tailings dam and related facilities at the SJG mine. The Company filed a nullity trial before the Federal Court of Administrative Justice, and on May 28, 2025, obtained a suspension of enforcement of the fine. The Company continues to contest the PROFEPA assessment through all available legal remedies.

On September 11, 2025, the Mexican tax authority (“SAT”) notified the Company of the updated fine amount of MXN $8.7 million, inclusive of adjustments. Pursuant to a Board resolution dated October 6, 2025, the Company authorized DynaMexico to enter into an installment arrangement with SAT, requiring a 20% upfront payment and the balance to be paid over thirty-six (36) monthly installments. The total cost under the plan is approximately MXN $9.57 million, including principal of MXN $6.98 million and interest.

The Company expressly reserves its right to continue contesting the underlying PROFEPA fine and, if successful, to seek recovery of amounts paid under the SAT arrangement.

ITEM 4. MINE SAFETY DISCLOSURES

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is not applicable to the Company because its mining operations are conducted exclusively in Mexico through its subsidiary DynaMéxico, and are not subject to regulation by the Federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s common stock is traded on the OTCQX, the top tier of the OTC Markets under the symbol "DYNR". The following table sets forth, for the periods indicated, the high and low bid quotations which reflect inter-dealer prices, without retail mark-up or mark-down and without commissions, and may not reflect actual transactions. All amounts are denominated in U.S. dollars.

Year Ended December 31, 2025	Low		High
First Quarter		0.75		1.19
Second Quarter		0.90		1.59
Third Quarter		0.85		1.92
Fourth Quarter		1.00		1.54
Year Ended December 31, 2024	Low		High
First Quarter		1.72		2.04
Second Quarter		1.52		1.94
Third Quarter		0.80		1.50
Fourth Quarter		0.75		1.16

As of December 31, 2025, there were 29,315,726 shares of our common stock outstanding, which were held by approximately 408 shareholders of record. The number of shareholders of record does not include shareholders that hold their shares in street name or with a broker.

Dividend Policy

No cash dividends on the Company’s common stock have been declared or paid since the Company's inception. Payment of future dividends, if any, will be at the discretion of our Board after considering various factors, including the terms of any credit arrangements, our financial condition, operating results, current and anticipated cash needs and plans for growth. Our initial earnings, if any, will likely be retained to finance our growth. At the present time, we are not party to any agreement that would limit our ability to pay dividends.

ITEM 6. RESERVED

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Company

The Company is a minerals investment, production, and exploration company, currently advancing its high-grade SJG mine in Mexico through its operating subsidiary, DynaMéxico. Activities are focused on exploration, technical evaluation, and project development aimed at expanding the mineral resource base.

The Company conducts operations in Mexico through its wholly-owned subsidiary, DynaMéxico. As of the date of this Annual Report on Form 10-K, the Company owns 100% of the outstanding shares of DynaMéxico, which in turn claims an ownership interest in the mining concessions, equipment, camp, and related facilities which comprise the SJG mine.

In addition to advancing the SJG mine, the Company has also focused on strengthening its corporate governance practices, with the objective of meeting the listing requirements of additional stock exchanges in the United States and/or Canada.

Project Improvements, Expansion and Increased Output

Since 2015, the Company has carried out limited site-scale processing and operational activities at the SJG mine to support its exploration and evaluation programs. These activities have been directed toward enhancing the technical understanding of the deposit, optimizing on-site infrastructure, and advancing project development. In 2022, the Company expanded its exploration efforts at the SJG mine with the objective of increasing its mineral resource base, primarily targeting gold mineralization.

From initial small-scale operations averaging 100 tons per 24-hour operating day in 2015, throughput has steadily increased, reaching an average of approximately 700 tons per day in 2025. In 2023 alone, daily processing volumes rose by 30%, from 550 tons to 700 tons per day.

In 2026, the Company expects to operate at an average daily throughput of approximately 800 tons per day, representing management’s target operating rate assuming approximately 90% availability. The processing facility has a maximum instantaneous throughput capacity of approximately 900 tons per day.

SJG Mine TRS

As discussed above, on May 20, 2025, the Company filed with the SEC the TRS for the SJG mine in Sinaloa, Mexico. The TRS includes the Company’s initial Mineral Reserve Estimate, which outlines a high-grade Proven and Probable Mineral Reserve of 250,000 gold ozs for the SJG mine. This initial Mineral Reserve Estimate and TRS was prepared by the independent firm P&E Mining Consultants Inc (“P&E”), and process plant review and operations aspects by D.E.N.M. Engineering Ltd.

Highlights Include:

Proven & Probable Mineral Reserves of 1,607 k tonnes at 4.91 g/t gold, totaling 253,000 gold ounces (see Table 1).
Indicated Mineral Resource of 286 k tonnes at 6.74 g/t gold and Inferred Mineral Resource of 97 k tonnes at 4.37 g/t gold. (see Table 2).
Life of Mine of 7-years based on current Mineral Reserves with excellent potential to extend along strike and adjacent to the existing underground mine infrastructure and in the wider SJG mine property.
After-tax net present value (“NPV”) of the SJG mine is estimated at $84.4 million ($110.0 million pre-tax) under baseline scenarios of 5% discount rate and $2,500/oz Au. At a $3,000/oz gold price the after-tax NPV is estimated at $133.3 million ($183.6 million pre-tax).
An Operating Cash Cost of $1,327 (US$/oz Au Eq) and an All-in Sustaining Cost of $1,720 (US$/oz Au Eq).
Significant Upside - Gold price sensitivity with conservative pricing assumption ($2,500 oz Au ~25% below current spot gold price) used in the TRS.
Growth Potential – Mineral Reserves / Mineral Resources defined for only three of the mineralized structures in the SJG mine property, which historically hosted mining on a total of 20 discrete mineralized structures.

Mineral Reserves

The Mineral Reserves and Mineral Resource for the SJG mine are as follows;

Table 1: Mineral Reserves

Mineral Reserve Estimate (1-9)
Reserve Class	Tonnes (k)	Grade (g/t Au)	Contained Metal (koz Au)
Proven	1,114	5.23	187.2
Probable	493	4.18	66.3
Proven & Probable9	1,607	4.91	253.5

Notes:

1.Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.

2.Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.

3.Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.

4.Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76-80% for Au

5.An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, and US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.

6.Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.

7.The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.

8.Totals may not sum due to rounding.

9.Mineral Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.

Mineral Resources

Table 2: Mineral Resources

Mineral Resource Estimate at 2.0 g/t Au Cut-off (1-6)
Zone	Classification	Tonnes<br><br>(k)	Au<br><br>(g/t)	Au<br><br>(koz)	Metallurgical<br><br>Recovery
San Pablo/La Mochomera	Indicated	286	6.74	62	80 %
	Inferred	51	4.29	7
Tres Amigos	Inferred	46	4.45	7
Total	Indicated	286	6.74	62
	Inferred	97	4.37	14

Notes:

1.The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

2.The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

3.The Mineral Resource is estimated using S-K 1300.

4.Mined areas as of December 31, 2024, were depleted from the block models.

5.Mineral Resources are exclusive of Mineral Reserves.

6.All numbers are rounded.

Economic Analysis

For the current 7 year mine life exploiting the Tres Amigos, San Pablo and La Mochomera ore bodies the following were the key economic results from the study.

Table 3: Key Economic Parameters

KEY ECONOMIC PARAMETERS
Parameter	Amount
Production mine life (years)	7
Production rate (tpd)	630
Production rate (ktpa)	230
Total production (kt)	1,607
Gold grade (g/t)	4.91
Gold process recovery (%)	79.9
Gold smelting/refining (%)	94
Gold payable (koz)	190
Gold Equivalent payable (koz)	190
Net Revenue ($M)	463.6
Sustaining Capital Costs ($M)	81.6
Operating Cost ($/t processed)	155.85
Operating Cost ($M)	250.4
Operating Cash Cost (US$/oz AuEq)	1,327
All-in Sustaining Cost (US$/oz AuEq)	1,720
Pre-Tax Cash Flow ($M)	131.6
Pre-Tax NPV (5% discount) ($M)	110.0
Income Taxes ($M)	32.1
After-Tax Cash Flow ($M)	99.5
After-Tax NPV (5% discount) ($M)	84.4

Sensitivity Analysis

The after-tax NPV sensitivities to ±20% changes in gold metal price, gold head grade, gold metallurgical recoveries, operaing expenses (“OPEX”) and capital expenses (“CAPEX”) are presented in Figure 1 and Table 4 below. The after-tax base case NPV is most sensitive to the gold metal price, followed by gold metallurgical recoveries and gold head grades, followed by OPEX, and then CAPEX.

Figure 1: After-Tax NPV @ 5% Sensitivity Parameter Values

Table 4: After-Tax NPV @5% Sensitivity Graph

EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS
Gold Price (US$/oz)	2,000<br><br>(80%)	2,250<br><br>(90%)	2,500<br><br>(100%)	2,750<br><br>(110%)	3,000<br><br>(120%)
After-Tax Project NPV @5% (in millions)	27.5	58.3	84.4	110.4	133.3

The SJG mine exhibits strong leverage to gold prices, especially with long-term gold price expectations exceeding the base case assumptions made in this Annual Report on Form 10-K. At current spot prices above $3,200 per gold ounce, after tax NPV would be expected to materially exceed $133.3 million.

Results for the Years Ended December 31, 2025 and 2024

Summary of Site Based Processing and Operational Activity, 2018 to 2025:

Year
2018	52,038	9.82	86.11	%	14,147	13,418
2019	66,031	5.81	86.86	%	10,646	9,713
2020	44,218	5.65	87.31	%	7,001	5,828
2021	97,088	9.67	88.79	%	26,728	22,566
2022	137,740	8.18	88.05	%	31,905	25,554
2023	198,518	5.58	76.50	%	27,252	24,829
2024	257,676	4.07	76.24	%	25,677	22,003
2025	260,694	3.46	73.69	%	21,393	20,848

In 2025, on-site operational activities at SJG mine resulted in the processing of 260,694 tons of material and the production of approximately 21,393 gross Oz Au. After dry weight adjustments at settlement terms with the buyer, approximately 20,848 Oz Au were sold.

Quarterly Results for the Three and Twelve Months Ended December 31, 2025 and 2024:

		Three Months Ended						Year Ended
Key Operating Information	Unit	December 31, 2025			December 31, 2024			December 31, 2025			December 31, 2024
Operating Data
Ore mined	t		74,984			59,490			287,878			233,782
Mining rate	tpd		815			647			789			639
Ore Milled	t		65,275			67,670			262,224			257,676
Mill Throughput	tpd		710			736			718			704
Grade	g/t		3.20			4.12			3.46			4.07
Recovery Au	%		75.68	%		75.58	%		73.69	%		76.24	%
Gold Ounces Produced	oz		5,080			6,775			21,393			25,677
Gold Ounces Sold	oz		4,767			6,897			20,848			22,003

(1) Gold concentrate sold during the period is not equal to gold concentrate produced during the period due to timing of shipments to buyer, and due to buyer’s payability discount for the purchase of gold concentrate, and due to any adjustment from dry weight and assay in provisional settlements with the final assays.

Mill feed grades and recovery rates are based on internal estimates derived from assay data and estimated weights of material processed.

The drop in the feed grade at the processing facility is a result of the planned reduction of certain high-grade zones in accordance with the SJG mine plan, as well as higher dilution experienced in the processed material. The increase in processed tonnage at the SJG mine also contributed to lower grades ore being treated. To support throughput, the Company opened a new development area at San Pablo during the fourth quarter of 2023, and an additional target zone, La Mochomera, in May 2024, which is expected to yield higher-grade material at depth.

2025 HIGHLIGHTS

Operational Performance Overview

During Q4 2025, the Company continued to advance the optimization program at the SJG mine. This program is focused on increasing process plant throughput and recoveries, improving maintenance and equipment utilization, and ultimately enhancing operational efficiencies and profit margins at the SJG mine.

Operational results for Q4 2025 showed improved performance across several critical operational metrics (particularly in costs) due to the ongoing optimization program. The average underground development was 1,057 meters per month in Q4 2025 (1,267 in Q3 2025), compared to 383 meters per month in Q4 2024. This increase allowed the SJG mine to access over 20 production stopes. Expanded development work also led to the discovery of two new mineralized veins – one at the Tres Amigos mine (named Victoria) and one at La Mochomera (named 532) which are currently being mined as additional high-grade ore sources. Process plant reliability also improved. Electrical refurbishment and preventative maintenance programs resulted in ball mill availability averaging 96% for Q4 2025 compared to 94% Q3 2025.

A construction work program to establish a primary gravity gold circuit with the installation of three new Falcon gravity concentrators (the “Falcon” units) was completed in Q3 2025 with commissioning completed in early Q4 2025. These Falcon units were installed after the ball mills to recover the significant portion of free gold available in the San Pablo, San Pablo Sur and La Mochomera deposits. In addition, the process plant at the SJG mine has another Falcon unit already installed on the tailings circuit. The aim of the installation of these Falcon units is to boost gold recoveries improving operational efficiency and SJG mine’s economics, especially in the current higher priced gold environment.

Milled ore for Q4 2025 was 65,275 tons (approximately 710 tons per day), a 4% increase from the Q3 2025 production average of 682 tons per day. With the current high ball mill availability, the Company is evaluating cost-effective strategies to utilize additional processing capacity of approximately 100 tons per day. Gold metal recoveries for the quarter averaged 75.69%, an increase from the 73% gold recovery achieved in Q3 2025, primarily due to the installation and commissioning of the Falcon units.

During Q4 2025, metal production totaled 1,633 ounces of gold in October, 1,615 ounces in November, and 1,832 ounces in December. Total metal production for Q4 2025 was 5,080 ounces of gold, above Q3 2025 production of 4,830 ounces. The average gold feed grade was 3.20 g/t for Q4 2025, and for the full year 2025, the average gold feed grade was 3.46 g/t.

Mine development for Q4 2025 was on budget with 3,172 meters of development completed, compared to 3,013 meters in Q3 2025. The completion of new development drifts enabled the Company to maintain more than 20 stopes in production by the end of the quarter and the end of the year. This additional mining flexibility is expected to positively impact ore tonnage and grades in the coming months in 2026. The Company has also completed a capital works program to enhance mine ventilation across all three mines which included connecting the La Mochomera and San Pablo Sur mines which has had an immediate impact on the working environment. Improved ventilation time has resulted in an improvement in working conditions and faster re-entry times following blasting activities. Planning for a central Raise Bore ventilation shaft was cancelled due to unfavorable geotechnical conditions and this planned ventilation location was moved to Palos Chinos. This capital works program will involve approximately 100 meters of decline development which, in addition to helping ventilation will bring mine development closer to the Purisima historical works. Numerous exploration targets have been identified in this southern area of the mineral field. This ventilation development will also be a platform for underground exploration.

Detailed activities from the four main deposits include:

Tres Amigos

Original mine planning at Tres Amigos anticipated closure by the end of Q1 2025. However, geological reinterpretations and targeted short exploration drifts identified two additional mineralized structures – the Victoria and Alexa veins – located within 40 meters of existing underground infrastructure.

To date approximately 40,000 tons of high-grade ore have been extracted from this high-grade structure. In addition, a new ore drive was completed on the upper levels of the Tres Amigos North Zone which is an area well known for free gold occurrences, providing access to a new high-grade ore face. Mining from this area in Tres Amigos totaled 17,000 tons contributing to Q4 2025 production and is expected to continue throughout 2026. This new access will also enable future diamond drilling to test the north and south extensions of the deposit, with the goal of increasing inventory.

San Pablo Viejo and San Pablo Sur

Throughout Q4 2025, the Company continued mining multiple faces at the San Pablo deposit while advancing development toward the deeper southern extensions.

San Pablo Viejo and San Pablo Sur are expected to remain the primary sources of gold production through 2026 and 2027, with additional upside potential beyond that horizon. Particularly promising is the South Extension at the 500 level, which could yield high-grade (“Bonanza”-style) gold mineralization in the short to mid-term. Ongoing development efforts are positioning the mine for continued growth, including expansion deeper into the La Mochomera vein system.

La Mochomera

The La Mochomera vein is expected to be a significant source of gold production in 2026 and 2027, with especially promising high-grade potential at depth. During Q1 2025, development activities intersected a previously unrecognized high-grade mineralized structure, now designated as the “532 Vein”. The significance and potential of this new discovery are currently being evaluated with approximately 3,000 tons of high-grade material extracted from this vein.

Palos Chinos

Palos Chinos is an ore body which the Company exposed in January 2025 from the La Mochomera underground infrastructure with the first ore being extracted in January 2025. By the end of Q4 2025, the Company had completed 4 development levels on this vein and mined 3,500 tons of ore. In 2026, this ore body will be an important source of high-grade ore.

Results for the Years Ended December 31, 2025 and 2024

REVENUE: Revenue increased approximately 26% to $58,467,565 for the year ended December 31, 2025 from $46,503,016 for the year ended December 31, 2024. This was primarily due to an increase in net revenue per ounce from $2,113 to $2,804, partially offset by a decrease in gold ounces sold.

OPERATING COSTS: Operating costs for the year ended December 31, 2025 and 2024 were $40,223,275 and $47,898,208, respectively. The cost decrease for year ended December 31, 2025 reflected $9.0 million in capitalized mine development costs, and $2.6 million in property, plant and equipment incurred beginning January 2025 following the issuance of the Company’s Maiden Mineral Reserve Estimate under Reg. S-K 1300 and the resulting change to the Company’s capitalization policies. These costs were expensed as operating costs during 2024.

DEPRECIATION AND DEPLETION: Depreciation and depletion expense for the year ended December 31, 2025 and 2024 were $964,295 and $Nil, respectively. With the Company’s transition from Exploration Stage to Production Stage under S-K 1300, the Company began capitalizing mine development costs and commenced depreciation and depletion charges on a units-of- production basis.

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses for the years ended December 31, 2025 and 2024 were $6,192,509 and $4,157,425 respectively. These general and administrative expenses represent costs incurred in operating the Company that are not directly related to site-based processing or exploration activities, and include management, accounting, and legal expenses. Increases to general and administrative expenses in 2025 primarily relate to an increase in consulting and professional fees related to the Company’s legal matters, together with increased bonus expense.

STOCK-BASED COMPENSATION EXPENSE: Stock-based compensation expense was $1,249,459 and $1,219,062 for the years ended December 31, 2025 and 2024, respectively and was related to the vesting of restricted stock awards issued in 2024 combined with shares awarded in 2025.

ACCRETION EXPENSE: Accretion expense for the year ended December 31, 2025 and 2024 was $42,004 and $18,260, respectively. The Company began accreting its asset retirement obligation (“ARO”) on January 1, 2024, related to estimated costs to decommission the milling plant and tailings pond at the estimated life of the mines in operation at the establishment of the ARO in 2023 as a result of the expansion of the milling operation.

OTHER EXPENSE: Other income (expense) for the years ended December 31, 2025 and 2024 was $471,590 and $1,247,352 respectively. Included in 2025 was interest expense of $1,613,836, mark-to-market loss on the derivative liability of $356,863, currency translation gain of $5,139,258, and other expense of $3,640,149. Included in 2024 was interest expense of $1,696,258, mark-to-market gain on the derivative liability of $905,174, currency translation loss of $506,439 and other income of $50,171.

OTHER COMPREHENSIVE INCOME (LOSS): Comprehensive income (loss) includes the Company’s net income (loss) plus the unrealized foreign currency translation gain for the period. The Company’s other comprehensive loss for the years ended December 31, 2025 and 2024 consisted of unrealized foreign currency translation gains (losses) of $(8,531,837) and $(2,486,399), respectively.

Liquidity and Capital Resources

As of December 31, 2025, the Company had negative working capital of $31,735,708, a decrease of $13,383,323 from the working capital maintained by the Company of negative $18,352,385, as of December 31, 2024. The primary reasons for the decrease is related to a decrease in cash related to the Company’s net loss, reclassification of a portion of the Company’s foreign tax receivable to long term and an increase in short term trade liabilities.

Cash from operations for the year ended December 31, 2025 was $5,757,148 compared to net cash used of $8,014,004 during the year ended December 31, 2024. The improvement in the cash flow from operations was primarily attributable to the Company’s income generated in 2025, driven by increased revenue and lower mine operating costs.

Cash used in investing activities for the year ended December 31, 2025 totaled $11,526,369 compared to $6,755 during the year ended December 31, 2024. The increase reflected $9.03 million in capitalized mine development costs incurred beginning January

2025 following the issuance of the Company’s Initial Mineral Reserve Estimate under S-K 1300 and the resulting change to the Company’s capitalization policies.

Cash provided by financing activities for the year ended December 31, 2025 and 2024 was $5,059,294 and $8,495,282, respectively. The net cash provided by financing activities during the year ended December 31, 2025 came from $17,650,000 of advances from the company’s Revolving Credit Line ("RCL”) offset by $12,500,000 in payments on the RCL and $90,706 in operating lease payments.

Through December 31, 2025, the Company’s available liquidity and operations have been financed primarily through its operations and the revenue generated from the sale of product. The revenue from operations was supplemented by proceeds from the sale of common stock and customer advances as well as the cash flow from operations. Although the Company has incurred net losses and net cash outflows from operating activities and investing activities for the year ended December 31, 2025, there were many expenses which were made that were not expended for the production of revenue, such as exploration drilling and mine expansion costs. If these expenses had not been made, the Company’s net loss would have been minimized. The Company believes its revenue will be greater due to material being mined from the additional mine opened and improvements made to the productivity of the milling activities. Future capital requirements will depend on many factors, including the Company’s rate of mining, milling and exploration activities and growth. To the extent that existing capital and revenue growth are not sufficient to fund future activities, the Company may need to raise capital through additional equity or debt financing. Additional funds may not be available on terms favorable to the Company or at all. Failure to raise additional capital, if needed, could have a material adverse effect on the Company’s financial position, results of operations and cash flows.

Off-Balance Sheet Arrangements

As of December 31, 2025, we did not have any off-balance sheet arrangements, which have or are reasonably likely to have a material adverse effect on our financial condition, results of operations or liquidity.

Capital Expenditures

Primary capital expenditures in 2025 have been directed toward increasing underground infrastructure development and enhancing processing capacity at the SJG mine. Average underground capitalized development in Q4 2025 was 1,267 meters per month, compared to 380 meters per month in 2024. Processing systems have been upgraded through the installation of new Falcon units and the repurposing of the original grinding mill. Additional equipment acquisitions and infrastructure improvements have also enhanced site access and operational capacity. Effective January 1, 2025, capital expenditures are capitalized in accordance with S-K 1300. See Note 3 of the consolidated financial statements. Total capital expenditures in 2025 were $11.5 million.

Exploration Activity

The Company continues to invest in exploration spending on near-mine extensions as well as geological studies and reinterpretations. The Company completed a Mineral Resource Estimate under S-K 1300 in the second quarter of 2025 covering San Pablo Sur, San Pablo, La Mochomera and the Tres Amigos ore bodies which includes development proposals for additional exploration of ore veins in the short and mid-term.

The Company expects to start underground mine extension drilling at the start of Q2 2026 and expand exploration to surrounding areas by year-end. Part of this activity will be a re-analysis of the previous surface geophysical surveys. Exploration will focus on growing the known resources and increasing the reserve inventory at the SJG mine.

The Company intends to prioritize exploration of high-grade underground targets that can be readily incorporated into the SJG mine plan, as well continue the regional program to better understand the broader potential of the land package associated with the SJG mine. Additionally, planning for deeper and lateral drilling between the San Pablo and Tres Amigos veins has highlighted the potential to extend high-grade underground resources at the SJG mine, especially in areas previously considered discontinuous due to faulting. The Company has identified opportunities to develop San Pablo, San Pablo Sur, La Mochomera, and Tres Amigos exploration potential. At the La Mochomera deposit, the Company plans to explore southward toward the historic Palos Chinos and Purisima mines, which operated over 100 years ago as high-grade producers. Of note is the Palos Chinos exploration target, located within 40 meters of the existing La Mochomera mine infrastructure.

In June 2025, the Company provided an update on exploration activities at the SJG mine. This update included the preliminary identification of two potential high-grade mineralized zones situated adjacent to existing mine infrastructure. These zones are currently under evaluation for future exploration and development potential.

Note: Assay results referenced in this Annual Report on Form 10-K are based on internal laboratory analyses conducted at the SJG mine plant. They have not been verified by an independent third-party laboratory and do not conform to disclosure standards such as S-K 1300 or NI 43-101.

Over the past year, the Company has been compiling and interpreting geological, geochemical, geophysical, and historical mining data to support an exploration diamond drilling program planned for Q2/2026. This review has led to the identification of the Victoria zone, a previously undocumented mineralized structure located approximately 40 meters from the upper-level development at the Tres Amigos mine (see Figures 1 and 2). Similarly, analysis of historical workings mining activity has highlighted the potential of the Palos Chinos zone, situated near active workings at La Mochomera (see Figure 3). Both zones are undergoing early-stage evaluation through exploration drifting, geological mapping, channel sampling, and internal bulk sampling. Material is being processed at the SJG mine plant to assess mineralization, metallurgy, and gold recovery characteristics.

Victoria Target (Tres Amigos Mine Area)

Geological and structural analysis at the Tres Amigos working face has led to the identification of an exploration target in the previously underexplored hanging wall of the Tres Amigos vein system. Subsequent development drifting toward this target has resulted in the discovery of a previously undocumented mineralized vein approximately 1.5 meters in width (see Figure 3). To date, a total of 110 meters of drifting has been completed on two sublevels (550 and 540 levels, spaced 10 meters apart), alongside the collection and analysis of 1,069 channel samples. In addition, the Company has mined and processed a bulk sample of approximately 10,000 tonnes, with internal assay results indicating an estimated average grade of 8 grams per tonne gold. Based on the current exploration work, the Victoria zone is considered to have a conceptual exploration target of approximately 100,000 tonnes grading between 7 and 8 grams per tonne gold, representing a potential of ~25,000 ounces of contained gold.

Note: The potential quantity and grade of the Victoria target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further work will result in the delineation of a mineral resource.

Figure 1: Plan view of the existing underground infrastructure at Tres Amigos, highlighting the location of the newly identified Victoria vein in the hanging wall zone.

Figure 2: Photograph of the Victoria vein, highlighting a vein width of 1.5 meters and abundant sulphide mineralization, including chalcopyrite, pyrite, galena, and sphalerite, characteristic of this high-grade gold-bearing structure.

Palos Chinos

Exploration drifting toward the historical Palos Chinos vein system has advanced to approximately 70 meters from current mine workings. Observations from this development, combined with historical mapping from 1999-2000, suggest a second near-infrastructure exploration target. Preliminary evaluation indicates a conceptual exploration target of approximately 90,000 tonnes grading 5 to 6 g/t per tonne gold, representing a potential of ~15,000 ounces of contained gold.

Cautionary Statement: The potential quantity and grade of the Palos Chinos target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the delineation of a mineral resource.

The ongoing exploration drifts have encountered minor disseminated mineralized structures within the footwall of the Palos Chinos structure, supporting the potential for additional mineralization along the trend (see Figure 3).

Figure 3: Image showing existing underground infrastructure at the La Mochomera vein system, showing the special relationship to the newly identified Victoria vein and its proximity to the Palos Chinos exploration drift.

Figure 4: Photograph of a mineralized vein exposed in the drift development advancing toward the main Palo Chinos vein.

Detailed mapping and sampling conducted in 1999 and 2000 across multiple levels of the historical Palos Chinos workings confirmed that the mined-out section of the Palos Chinos vein generally averages between 1.0 and 1.5 meters in thickness, with a steep westerly dip ranging from 60° to 80°. Along strike, several mineralized shoots were identified, displaying key structural and mineralogical characteristics, including:

• A shift in strike orientation from south to southeast;

• A localized shallowing of dip angles between 35° to 40°;

• Vein thickening to between 2 and 4 meters;

• Increased development of chlorite-rich stockwork adjacent to the vein;

• Elevated gold grades, including individual samples grading up to 92.5 g/t Au over 0.7 meters; and

• A mineralized shoot transect averaging 7.6 g/t Au over 7.6 meters, including 13.4 g/t Au over 3.4 meters within the main Palos Chinos vein (see Table 1).

In total, 180 samples were collected along the Palos Chinos trend from both surface exposures and underground workings. Of these, 74 samples were taken directly from the Palos Chinos vein and adjacent mineralized hanging wall and footwall zones. Based on this dataset, the Palos Chinos vein returned an average grade of 11.4 g/t Au over an average width of 1.2 meters. Additionally, mining above the Palos Chinos level exposed a parallel, laterally continuous hanging wall vein located approximately 4 to 5 meters above the main structure. Three samples collected from this vein returned gold grades ranging from 11.3 to 18.5 g/t Au and also contained notable concentrates of copper, with localized lead and zinc values over narrow widths. A summary of significant historical assay results from the Palos Chinos vein is provided in Table 1.

Table 1: Summary of significant historical assay results samples from the Palos Chinos vein.

The reported average vein thickness of 1.2 meters is derived from the mean of all individual sample interval widths and does not reflect the full extent of the historically mined zone between the Palos Chinos and Saramiento levels. To determine the broader mineralized envelope, a representative channel potential sample transect spanning the interval between the Palos Chinos vein and a parallel hanging wall structure returned an average of 7.4 g/t Au over 7.6 meters (see Table 1). These results indicate that portions of the Palos Chinos trend may exhibit sufficient thickness, grade continuity, and structural geometry to be amenable to mechanized mining, subject to further drilling, geotechnical evaluation, and mine planning studies.

Figure 5: Assay results from a representative channel sample transect extending from the footwall contact, across the Palos Chinos vein and associated chlorite stockwork zone, to the hanging wall vein. The composite interval averages 7.4 g/t Au over 7.6 meters (true width), with notable enrichment in gold, silver, and copper across discrete intervals

DynaMéxico General Powers of Attorney

The Chief Executive Officer of DynaUSA also serves as the President of DynaMéxico and DynaMineras. The President of DynaMéxico holds powers of attorney granted by the shareholders of DynaMéxico which give the current President significant and broad authority within DynaMéxico.

OUTLOOK (SJG MINE)

With the development progress achieved in Q4 2025 and the increase in mining faces now available to the Company, management remains confident in the ongoing progress and long-term performance of the SJG mine. The Company’s focus for 2026 is to improve production and grade through the implementation of additional and ongoing operational enhancements and development work.

While the Company made significant headway in 2025, optimization efforts will continue to focus on improving gold ore grades to the mill, throughput rates, and recoveries. San Pablo Sur, San Pablo, La Mochomera, Palos Chinos and the Tres Amigos ore bodies are expected to remain the main contributors to production in the year ahead. Further development in these areas will also be a key focus to access additional high-grade zones and additional mining faces.

The capital works program to add a primary gravity gold circuit to the processing plant involved the installation of three new Falcon units installed downstream of the ball mills to recover the significant portion of the free gold present in the San Pablo, San Pablo Sur, Tres Amigos and La Mochomera deposits. The three new Falcon units are performing as designed recovering approximately 30% of the gold in a specific gravity gold concentrate (average ~300 g/t Au) which achieves a higher payability factor. The target for 2026 is for the process plant to achieve a processing rate between 750 to 800 tpd.

A new tailings dam was completed during Q3 2024, with an estimated storage capacity of 670,751 cubic meters, distributed over four stages to accommodate up to three years of additional tailings. The third-stage facility is currently in use, and planning for construction of the fourth stage is underway. The Company has also begun evaluating a potential location for a third tailings storage facility at the SJG mine. These studies include environmental and geotechnical surveys to identify a preferred site.

Plan of Operation

The plan of operation for 2026 includes the continued enhancement of site infrastructure and processing capabilities, along with expanded exploration drilling at the SJG mine. During 2025, the Company processed an average of approximately 700 tons of material per day. For the first two months of 2026 an average of 755 tons of material was milled and the Company anticipates increasing daily processing throughput towards an average of 750 to 800 tons per day. The Company has installed processing capacity of up to 900 tons per day (with three ball mills), with a target rate of achieving an average of 800 tons per day taking into consideration planned maintenance downtime. The Company has continued underground development as part of its exploration activities on additional target areas (Vein 532, Victoria and Palos Chinos structures) which are anticipated to yield higher-grade material for processing. The Company anticipates that a combination of higher-grade feed material, increased processing throughput, and higher gold prices will have the potential to significantly increase revenue in 2026, as part of its ongoing exploration and project optimization efforts.

The Company plans to commence its exploration drilling program from underground in Q2 2026 having already obtained firm quotes from contractors to undertake the work. Ongoing decisions regarding the scope and direction of the program will be guided by drilling results, corporate strategy, market conditions, as well as surface mapping, sampling, and target generation.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Not applicable to smaller reporting companies.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The Company’s consolidated financial statements as of and for the year December 31, 2025 and 2024 included in this Annual Report on Form 10-K have been audited by Davidson & Company LLP, independent registered public accounting firm, as set forth in their report.

Consolidated Financial Statements included in the Form 10-K:
Report of Independent Registered Public Accounting Firm PCAOB ID: 731	51
Consolidated Balance Sheets	54
Consolidated Statements of Operations and Comprehensive Income (Loss)	56
Consolidated Statements of Changes in Stockholders’ Equity/(Deficit)	57
Consolidated Statements of Cash Flows for the Years	58
Notes to the Consolidated Financial Statements	59

Report of Independent Registered Public Accounting Firm

To the Shareholders and Directors of

DynaResource, Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of DynaResource, Inc. (the “Company”), as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity (deficiency), and cash flows for the years ended December 31, 2025 and 2024, and the related notes (collectively referred to as the “financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of DynaResource, Inc. as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years ended December 31, 2025 and 2024 in conformity with accounting principles generally accepted in the United States of America.

Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, as of December 31, 2025, the Company had negative working capital of $31,735,708, an accumulated deficit of $65,353,966, and for the year ended December 31, 2025, had a net income of $3,817,103. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatements of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of these critical audit matters do not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Stage of Production of the San José de Gracia Mine

As described in Note 3 and Note 5 to the financial statements, the Company filed with the SEC a Technical Report Summary (“TRS”), for the San José de Gracia mine prepared in accordance with the requirements of S-K 1300. The TRS includes the Company’s declaration of mineral reserves and supports the transition from an Exploration Stage issuer to a Production Stage issuer. As a result of the declaration of proven and probable mineral reserves, the Company has revised certain accounting estimates prospectively, including the capitalization of certain development costs, and the commencement of systemic depletion of applicable assets

Our audit procedures included the following:

Evaluating the appropriateness of management’s estimates, including the reasonability of additions made to the mineral property and the depletion recorded.
Using an auditor expert to evaluate the Technical Report Summary, including the proven and probable reserves at the San José de Gracia mine to support the transition of the mining cycle stage.

Deferred Tax Asset

As described in Note 14 to the financial statements, the Company has recognized significant deferred tax assets in respect of unused tax losses. The recovery of the deferred tax assets depends on achieving sufficient taxable profits in the future. Future taxable profits to be used for utilization of tax losses accumulated by the Company mainly represent income from mining operations to be earned by the Company’s main operating subsidiary. The assessment of the potential to utilize the tax losses is dependent on the forecast profitability of the subsidiary. This requires management’s judgment and estimation on key inputs such as expected production, sales volumes, commodity prices, grade and tonnage estimates and operating costs. There is inherent uncertainty involved in forecasting timing and quantum of future taxable profits, which support the extent to which tax assets are recognized. This in turn led to a high degree of auditor judgment, subjectivity and effort in performing procedures to evaluate audit evidence relating to the judgments made by management in their taxable profits forecast model.

Our audit procedures included the following:

Evaluating the appropriateness of management’s key assumptions and estimates used by management to allocate profit between the Company’s entities, and the likelihood of generating sufficient future taxable profits to support the recognition of deferred tax assets.
Using our in-house tax specialists, to evaluate the appropriateness of the application of relevant tax legislation by the Company, in relation to the utilisation of tax losses.

We have served as the Company’s auditor since 2023.

/s/ DAVIDSON & COMPANY LLP

Vancouver, Canada Chartered Professional Accountants

April 1, 2026

DYNARESOURCE, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
			2024
			(Restated - Note 2)
ASSETS
Current assets
Cash	4,171,891		$	4,781,352
Accounts receivable	—			1,208,346
Concentrate and ore inventories (Note 4)	1,595,363			1,576,392
Foreign tax receivable	1,424,244			2,690,309
Supplies inventory	2,313,917			1,258,064
Other current assets (Note 6)	694,939			656,239
Total current assets	10,200,354			12,170,702
Mineral property interests, plant and equipment(net of accumulated depreciation and depletion of 1,094,835 and 42,738) (Note 5)	17,308,323			4,211,968
Right-of-use assets, net	500,392			734,229
Deferred tax asset (Note 14)	2,349,186			4,633,513
Foreign tax receivable	27,238,331			16,613,129
Other assets	—			160,406
TOTAL ASSETS	57,596,586		$	38,523,947
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities (Note 7)	17,305,927		$	7,352,435
Accrued mining taxes and other liabilities (Note 7)	9,786,005			8,246,290
Derivative liability (Note 8)	1,249,030			892,167
Credit line (Note 9)	8,333,333			9,850,000
Current portion of operating lease payable (Note 15)	87,689			122,630
Concession duties payable (Note 10)	5,174,078			4,059,565
Total current liabilities	41,936,062			30,523,087
Credit line (Note 9)	6,666,667			—
Operating lease payable, less current portion (Note 15)	511,317			702,531
Deferred tax liability (Note 14)	622,030			307,777
Asset retirement obligation (Note 11)	2,831,430			223,520
Other liabilities	266,550			—
TOTAL LIABILITIES	52,834,056			31,756,915
TEMPORARY EQUITY
Series C Senior Convertible Preferred Stock, 0.0001 par value, 1,734,992 shares authorized, issued and outstanding	4,337,480			4,337,480
Series D Senior Convertible Preferred Stock, 0.0001 par value, 3,000,000 shares authorized, 760,000 shares issued and outstanding	1,520,000			1,520,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY (DEFICIENCY) (Note 12)
Common Stock, 0.01 par value, 40,000,000 and 40,000,000 shares authorized 29,315,726 and 23,371,708 issued and outstanding	293,157			293,157
Series E Senior Convertible Preferred Stock, 0.0001 par value, 1,552,795 and 0 shares authorized, issued and outstanding	2,500,000			2,500,000
Preferred rights	40,000			40,000
Additional paid-in-capital	70,168,395			69,131,186
Treasury stock, 37,180 and 37,180 shares at cost	(95,023	)		(95,023	)
Accumulated other comprehensive income (loss)	(8,647,513	)		(1,788,699	)
Accumulated deficit	(65,353,966	)		(69,171,069	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIENCY)	(1,094,950	)		909,552
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIENCY)	57,596,586			38,523,947

All values are in US Dollars.

The accompanying notes are an integral part of these consolidated financial statements.

DYNARESOURCE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

	2025			2024
				(Restated - Note 2)
REVENUE	$	58,467,565		$	46,503,016
Operating costs		(40,223,275	)		(47,898,208	)
Depreciation and depletion		(964,295	)		—
GROSS PROFIT		17,279,995			(1,395,192	)
OTHER OPERATING EXPENSES:
General and administrative expenses		6,192,509			4,157,425
Stock-based compensation (Note 13)		1,249,459			1,219,062
Accretion expense (Note 11)		42,004			18,260
Right of use asset amortization		98,388			114,593
Depreciation and amortization		31,625			30,499
		7,613,985			5,539,839
OPERATING INCOME (LOSS)		9,666,010			(6,935,031	)
OTHER (INCOME) EXPENSE:
Foreign currency losses		(5,139,258	)		506,439
Interest expense		1,613,836			1,696,258
Derivative mark-to-market loss (gain) (Note 8)		356,863			(905,174	)
Other expenses (income)		3,640,149			(50,171	)
TOTAL OTHER (INCOME) EXPENSE		471,590			1,247,352
NET INCOME (LOSS) BEFORE TAXES		9,194,420			(8,182,383	)
Mining tax expense (Note 14)		1,790,760			890,459
Income tax expense (Note 14)		3,586,557			(551,399	)
TOTAL TAX EXPENSE		5,377,317			339,060
NET INCOME (LOSS)		3,817,103			(8,521,443	)
DEEMED DIVIDEND FOR SERIES C & D PREFERRED		(234,299	)		(234,299	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS		3,582,804			(8,755,742	)
INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.
Basic income (loss) per common share		0.12			(0.35	)
Weighted average shares outstanding – Basic		29,315,726			24,680,167
Diluted income (loss) per common share		0.13			(0.35	)
Weighted average shares outstanding – Diluted		37,864,832			24,680,167
OTHER COMPREHENSIVE LOSS
Unrealized foreign currency translation loss		(6,858,814	)		(2,486,399	)
TOTAL OTHER COMPREHENSIVE LOSS		(6,858,814	)		(2,486,399	)
TOTAL COMPREHENSIVE LOSS		(3,041,711	)		(11,007,842	)

The accompanying notes are an integral part of these consolidated financial statements.

DYNARESOURCE, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)

YEARS ENDED DECEMBER 31, 2025 AND 2024

	Preferred E				Common						Preferred		Preferred		Paid In		Treasury		Treasury			Other Comp			Accumulated
	Shares		Amount		Shares			Amount			Rights		Amount		Capital		Shares		Amount			Income			Deficit			Totals
Balance January 1, 2024 (restated)		—	$	—		23,371,708		$	233,717			1	$	40,000	$	61,509,032		37,180	$	(95,023	)	$	697,700		$	(60,649,626	)	$	1,735,800
Issuance of Common Stock		—		—		5,769,231		$	57,692			—		—		5,942,308		—		—			—			—			6,000,000
Sales of Series E Convertible Preferred Stock		1,552,795		2,500,000		—			—			—		—		—		—		—			—			—			2,500,000
Stock Issued for Services		—		—		287,287			2,873			—		—		459,659		—		—			—			—			462,532
Stock Compensation - Vesting		—		—		—			—			—		—		1,219,062		—		—			—			—			1,219,062
Cancellation of Shares		—		—		(112,500	)	$	(1,125	)		—		—		1,125		—		—			—			—			-
Other Comprehensive Income		—		—		—			—			—		—		—		—		—			(2,486,399	)		—			(2,486,399	)
Net Loss		—		—		—			—			—		—		—		—		—			—			(8,521,443	)		(8,521,443	)
Balance, December 31, 2024		1,552,795		2,500,000		29,315,726			293,157			1		40,000		69,131,186		37,180		(95,023	)		(1,788,699	)		(69,171,069	)		909,552
Balance January 1, 2025 (restated)		1,552,795	$	2,500,000		29,315,726		$	293,157			1	$	40,000	$	69,131,186		37,180	$	(95,023	)	$	(1,788,699	)	$	(69,171,069	)	$	909,552
Stock Issued for Services		—		—		—			—			—		—		—		—		—			—			—			—
Stock-based compensation - Vesting		—		—		—			—			—		—		1,037,209		—		—			—			—			1,037,209
Other Comprehensive Income		—		—		—			—			—		—		—		—		—			(6,858,814	)		—			(6,858,814	)
Net Income		—		—		—			—			—		—		—		—		—			—			3,817,103			3,817,103
Balance, December 31, 2025		1,552,795		2,500,000		29,315,726			293,157			1		40,000		70,168,395		37,180		(95,023	)		(8,647,513	)		(65,353,966	)		(1,094,950	)

The accompanying notes are an integral part of these consolidated financial statements.

DYNARESOURCE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	3,817,103		$	(8,134,852	)
Adjustments to reconcile net income to cash used in operating activities
Derivatives mark-to-market gain		356,863			(905,174	)
Accretion expense		42,004			18,260
Depreciation and depletion (Note 5)		995,920			30,499
Right-of-use asset amortization		98,388			114,593
Other expense		1,182,621			—
Stock-based compensation		1,249,459			1,219,062
Deferred tax		2,598,580			211,698
Foreign exchange		(6,706,735	)		—
Operating cash flows before change in non-cash working capital items		3,634,203			(7,445,914	)
Change in operating assets and liabilities
Accounts receivable		1,208,346			(327,873	)
Inventories		(1,232,298	)		233,211
Foreign tax receivable		(6,480,799	)		(6,962,321	)
Other assets		180,673			(1,091,821	)
Accounts payable and accrued expenses		8,180,473			7,580,714
Other liabilities		266,550			—
Change in non-cash working capital items		2,122,945			(568,090	)
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES		5,757,148			(8,014,004	)
CASH FLOWS FROM INVESTING ACTIVITIES
Mine development		(8,911,872	)		—
Purchase of equipment		(2,614,497	)		(6,755	)
CASH FLOWS USED IN INVESTING ACTIVITIES		(11,526,369	)		(6,755	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from credit line (Note 9)		17,650,000			12,000,000
Proceeds from sale of common stock		—			6,000,000
Proceeds from sale of Series E Convertible Preferred Stock (Note 12)		—			2,500,000
Payments of credit line (Note 9)		(12,500,000	)		(11,900,000	)
Operating lease payments		(90,706	)		(104,718	)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES		5,059,294			8,495,282
Effects of foreign currency in cash		100,466			(1,296,884	)
NET INCREASE (DECREASE) IN CASH		(609,461	)		(822,361	)
CASH AT BEGINNING OF YEAR		4,781,352			5,603,713
CASH AT END OF YEAR		4,171,891			4,781,352
SUPPLEMENTAL DISCLOSURES
Cash paid for interest	$	1,721,045		$	955,272
Cash paid for income taxes	$	—
Conversion of accrued expenses into common stock	$	—		$	462,532

The accompanying notes are an integral part of these consolidated financial statements.

DYNARESOURCE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025 and 2024

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Activities, History and Organization

DynaResource, Inc. (the “Company” or “DynaResource”) was organized September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company, including its subsidiaries, is in the business of acquiring, investing in, and developing precious metal properties, and the production of precious metals.

As of December 31, 2025 the Company had one wholly owned subsidiary in the United States, DynaMéxico US Holding, LLC (“US Holding”) and four wholly owned subsidiaries in México, DynaResource de México, S.A. de C.V. (“DynaMéxico”), Mineras de DynaResource S.A. de C.V. (“DynaMineras”), DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”), and Minera de Alica S.A. de C.V., (“DynaAlica”).

Principles of Consolidation

The consolidated financial statements include the accounts of DynaResource, as well as its wholly-owned subsidiaries DynaMéxico, DynaMineras, DynaOperaciones and DynaAlica. All significant intercompany transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.

Significant Accounting Policies

The Company’s management selects accounting principles generally accepted in the United States (“GAAP”) and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenues and expenses. The accounting policies used conform to GAAP which have been consistently applied in the preparation of these consolidated financial statements.

The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. Management acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting controls and preventing and detecting fraud. The Company’s system of internal accounting controls is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented.

Basis of Presentation

The Company prepares its consolidated financial statements on the accrual basis of accounting in conformity with GAAP.

Going concern

These consolidated financial statements have been prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities at their carrying value in the normal course of business for the foreseeable future. As of December 31, 2025, the Company had negative working capital of $31,735,708, an accumulated deficit of $65,353,966, and for the year ended December 31, 2025, had a net income of $3,817,103. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to further implement its business plan, raise additional capital as needed from the sales of stock, additional debt financing or debt refinancing as may be required. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the amounts reported in the financial statements and disclosures of contingent assets and liabilities. Actual results could differ materially from those estimates.

Production Stage Issuer

The definitions of Measured mineral resource, Mineral reserve and Mineral resource are set forth in Regulation S-K, Item 1300 ("S-K 1300”).

Measured mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.

Mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.

Mineral resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

In accordance with S-K 1300, the SJG mine was classified as an Exploration Stage Property prior to January 1, 2025. This classification was based on the fact that the SJG mine had no Mineral Reserves as defined under S-K 1300. Although the SJG mine engaged in the mining of Mineral Resources and production of gold-silver concentrate, such activities were not sufficient to alter its classification as an Exploration Stage Property.

Effective January 1, 2025, following the completion of a Mineral Reserve estimate in accordance with S-K 1300, the Company transitioned from an Exploration Stage issuer to a Production Stage issuer. In connection with this transition, the Company updated its accounting estimates related to the capitalization of development costs and its depreciation and depletion methodologies. This change is treated as a change in accounting estimate under Accounting Standards Codification ("ASC”) 250, and has been applied prospectively from January 1, 2025.

Segment Information

The Company operates as one reportable segment, focused on the exploration, development, production and sale of gold and silver in Mexico.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents.

Cash balances may, at times, exceed the Federal Deposit Insurance Corporation ("FDIC”) insurance limits. As of December 31, 2025, the Company had $3,164,645 of deposits in United States banks, and $1,007,246 in Mexico banks. In addition, the Company does not have any cash equivalents as of December 31, 2025 and 2024. The Company reduces this risk by maintaining such deposits at high quality financial institutions that management believes are creditworthy.

Accounts Receivable and Allowances for Doubtful Accounts

Accounts receivable consists of trade receivables which are recorded net of allowance for doubtful accounts for the sale of metal concentrate, as well as net of an embedded derivative based on mark-to-market adjustments for outstanding provisional invoices based on forward metal prices. The allowance for accounts receivable is recorded when receivables are considered to be

uncollectible. As of December 31, 2025 and 2024, no allowance has been made. As of December 31, 2025 management believes all accounts receivable are fully collectable.

Mined Tonnage Inventory

Mined tonnage inventory represents ore mined and stockpiled for further processing. Stockpile quantities are estimated based on tonnes added and removed, contained metals (based on assays), and estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values and mining costs. Stockpiles are carried at the lower of average cost or net realizable value, based on estimated future sales prices, less estimated costs to complete production and sale.

Concentrate Inventory

Concentrate inventory, consisting of metal concentrates located at the Company facilities or in transit to customers is carried at the lower of production cost or net realizable value, based on current metals prices.

Foreign Tax Receivable

Foreign tax receivable is comprised of recoverable value-added taxes ("IVA”) paid to the Mexican government on goods and services. Under certain circumstances, IVA is recoverable by filing a tax return. Amounts paid are tracked and recognized as receivables until collected.

Proven and Probable Reserves

The definitions of proven and probable mineral reserves are set forth in S-K 1300.

A proven mineral reserve is the economically mineable part of a measured mineral resource. The qualified person reflects a high degree of confidence in the results obtained from the application of modifying factors, as well as in the estimates of tonnage and grade or quality. A proven mineral reserve can only result from the conversion of a measured mineral resource.

A probable mineral reserve is the economically mineable part of an indicated mineral resource and in some cases, a measured mineral resource. The qualified person’s confidence in the modifying factors and in the estimates of tonnage and grade or quality is lower for a probable reserve than for a proven mineral reserve, but still sufficient to demonstrate that extraction is economically viable at the time of recording, based on reasonable investment and market assumptions.

The lower level of confidence associated with a probable reserve arises either from geologic uncertainty when converting an indicated mineral resource or from greater risks related to the modifying factors when converting a measured mineral resource. A qualified person must classify a measured mineral resource as a probable mineral reserve if confidence in the application of the modifying factors is insufficient to support classification as a proven mineral reserve. See Note 3.

Mineral Property Interests, Plant and Equipment and Mine Development Costs

Mineral property interests:

Mineral property interests consist of capitalized expenditures related to the development of mineral properties and mining concessions arising from acquisitions. The amount capitalized represents the fair value of the mineral property and associated mining concessions at the time of acquisition.

Development costs include engineering and metallurgical studies, drilling, and related costs to delineate an ore body, and the construction of access paths and other infrastructure to gain access to the ore body at underground mines. Development costs are expensed as Development and Stripping Costs when incurred until an economically viable deposit has been delineated, at which point such costs are capitalized. Where multiple open pits exist at a mine, pre-stripping costs are capitalized separately for each pit. Production commences when saleable minerals, beyond a de minimis amount, are produced.

During the production phase of a mine, costs incurred to provide access to reserves and resources that will be produced in future periods and that would not have otherwise been accessible are capitalized and included in the carrying value of the related mineral property interest.

When proven and probable mineral reserves exist, development costs are capitalized. Drilling and related costs are capitalized for an ore body where an economically viable deposit exists and the activities are directed at obtaining additional information, providing

greater definition of the ore body, or converting non-reserve mineralization to proven and/or probable reserves if the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred as Exploration or Development and Stripping Costs. Exploration costs include costs incurred to identify new mineral resources, evaluate potential resources, and convert mineral resources into proven and probable mineral reserves. Drilling costs incurred for the purpose of operational ore control during the production stage, rather than for obtaining additional information about the ore body, are allocated to inventory costs and then expensed as a component of production costs applicable to sales once revenue from the sale of inventory is realized.

Mineral property interests are amortized upon commencement of production on a unit-of-production basis over proven and probable mineral reserves. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, the amortization of the capitalized costs is charged to expense based on the most appropriate method, which includes the straight-line method and the units-of-production method over the total estimated production over the life of the mine, as determined by internal mine plans.

Plant and equipment:

For properties where the Company has established economically viable deposits, expenditures for plant and equipment are capitalized and recorded at cost. The cost capitalized for plant and equipment includes borrowing costs that attributable to qualifying assets. Plant and equipment are depreciated using the straight-line method over the estimated productive lives of the assets.

Construction-in-progress costs:

Assets under construction are capitalized as construction-in-progress until the asset is available for its intended use, at which point costs are transferred to the appropriate category of plant and equipment or mineral property interest and amortized. Construction-in-progress costs comprise the purchase price of the asset and any directly attributable costs incurred to bring the asset into working condition for its intended use.

Office furniture and equipment are depreciated using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements related to the Company’s corporate office are amortized over the term of the lease, which is 52 months.

For properties where the Company has not established economically viable deposits, substantially all costs, including design, engineering, construction, and installation of equipment, are expensed as incurred unless the equipment has alternative uses, significant salvage value, or probable future benefit, in which case the equipment is capitalized at cost.

Impairment of Long-Lived Assets:

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Mineral properties are monitored for indicators of impairment based on factors such as changes in mineral prices, government regulations and taxation, the Company’s continued right to explore the area, results from exploration activities (including assays, technical reports, and drill results), and the Company’s ongoing plans and ability to fund exploration programs on the property.

For operating mines, recoverability is assessed by comparing the undiscounted future net cash flows expected to be generated by the asset to its net book value. If the net book value exceeds future net undiscounted future net cash flows, an impairment loss is recognized and measured as the excess of the asset’s net book value over its estimated fair value. Fair value for operating mines is determined using a combined approach, which includes a discounted cash flow model for the existing operations and a market approach for the valuation of exploration land claims.

Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends, and relevant market factors), production levels, operating costs, capital requirements and reclamation obligations, all based on current life-of-mine plans. The term "recoverable mineralized material” refers to the estimated quantity of gold or other commodities recoverable after accounting for processing and treatment losses.

In estimating future cash flows, assets are grouped at the lowest level for which there are separately identifiable cash flows that are largely independent of the cash flows of other asset groups. The Company’s estimates of future cash flows involve significant judgments and assumptions. Actual future results, including quantities of recoverable minerals, commodity prices, production levels, operating and capital costs, may differ materially due the inherent risks and uncertainties involved.

The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes

to any of the following:

estimated recoverable ounces of gold, silver or other precious minerals
estimated future commodity prices
estimated expected future operating costs, capital expenditures and reclamation expenditures

A write-down to fair value would be recorded if the expected future cash flow is less than the net book value of the property, or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed. As of the date of this filing, no events have occurred that would require the write-down of any assets. As of December 31, 2025 and 2024, no indications of impairment existed.

Asset Retirement Obligation (“ARO”)

The Company recognizes asset retirement obligations (“AROs”) for the estimated future costs associated with the closure, dismantling, remediation, and post‑closure monitoring of its mining operations. These obligations include, among other activities, the decommissioning and removal of infrastructure, stabilization and closure of tailings storage facilities, sealing of underground mine workings, management and disposal of residual materials, remediation of disturbed areas, and required post‑closure environmental monitoring.

AROs are recognized in the period in which a legal or constructive obligation associated with the retirement of a long‑lived asset is incurred and the obligation can be reasonably estimated. Asset retirement costs are capitalized as part of the carrying amount of the related long‑lived asset when proven or probable mineral reserves exist or when the costs relate to an acquired mineral property interest. Otherwise, such costs are expensed as incurred. ARO liabilities are subsequently accreted over time, with accretion recognized as an operating expense.

Prior to January 1, 2025, the Company was classified as an Exploration Stage issuer and had not demonstrated proven or probable mineral reserves. Accordingly, asset retirement costs did not qualify for capitalization and were expensed as incurred.

The fair value of the Company’s ARO is measured using an expected present value technique in accordance with ASC 410‑20. Expected future cash flows are based on a comprehensive closure plan and reflect management’s best estimate of costs that a market participant would incur to perform the required closure and remediation activities. These cash flows are discounted using a credit‑adjusted risk‑free rate that reflects the Company’s credit standing.

The Company records the fair value of a liability for an ARO in the period that it is incurred if a reasonable estimate of fair value can be made. The Company prepares estimates of the timing and amounts of expected cash flows when an ARO is incurred, which are updated to reflect changes in facts and circumstances. Estimation of the fair value of AROs requires significant judgment, including amount of cash flows, timing of reclamation, inflation rate and credit risk. Accrued reclamation and closure costs can represent a significant and variable liability on our balance sheet. The Company has estimated its liabilities under appropriate accounting guidance and reviews its liabilities on at least an annual basis. However, the ranges of liability could exceed the liabilities recognized. If substantial damages were awarded, claims were settled, or remediation costs were incurred in excess of our accruals, our financial results or condition could be materially adversely affected.

Property Holding Costs

Holding costs to maintain the SJG mine property are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs.

Exploration Costs

Exploration costs, including exploration, direct field costs and related administrative costs are expensed in the period incurred.

Leases

The Company adopted ASC 842, which requires recognition of a right-of-use asset and lease liability for all leases at the commencement date based on the present value of lease payments over the lease term. Additional qualitative and quantitative disclosures regarding the Company’s leasing arrangements are also required. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients that does not require reassessment of (1) whether any existing or expired contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company has elected other

available practical expedients to not separate lease and non-lease components, which consist principally of common area maintenance charges, for all classes of underlying assets and to exclude leases with an initial term of 12 months or less.

Transactions In and Translations Of Foreign Currency

The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been translated from Mexican Pesos into U.S. dollars using (i) year-end exchange rates for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for all income statement accounts. Foreign currency translation gains and losses are reported as a separate component of stockholders’ equity and comprehensive income (loss).

Foreign currency transactions are translated into the functional currency of the respective currency of the entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items denominated in foreign currency at period-end exchange rates are recognized in profit or loss. Non-monetary items that are not re-translated at period end are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value, which are translated using the exchange rates as at the date when fair value was determined. Gains and losses are recorded in the statement of operations and comprehensive income (loss).

Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the years ended December 31, 2025 and 2024 (Mexican Pesos per one U.S. dollar):

		December 31,<br>2025		December 31,<br>2024
Current exchange rate	Pesos		17.95		20.86
Weighted average exchange rate for the year ended	Pesos		19.21		18.33

The Company recorded currency transaction gains (losses) of $5,192,079 and $(506,439) for the years ended December 31, 2025 and 2024, respectively.

Income Taxes

The Company accounts for income and mining taxes under ASC 740 “Income Taxes” using the liability method, recognizing certain temporary differences between the financial reporting basis of liabilities and assets and the related income tax basis for such liabilities and assets. This method generates either a net deferred income and mining tax liability or asset for the Company, as measured by the statutory tax rates in effect. The Company derives the deferred income and mining tax charge or benefit by recording the change in either the net deferred income and mining tax liability or asset balance for the year. The Company records a valuation allowance against any portion of those deferred income and mining tax assets when it believes, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred income and mining tax asset will not be realized.

Income from the Company’s subsidiaries in México are taxed in accordance with applicable Mexican tax law.

Uncertain Tax Position

The Company is subject to income taxes in the U.S. and other foreign jurisdictions, with respect to which some of the outcome is uncertain. The evaluation of the Company’s uncertain tax positions involves significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. Although management believes the Company’s reserves are reasonable, no assurance can be given that the final outcome of these uncertainties will not be different from that which is reflected in the Company’s reserves. A number of years may elapse before a particular uncertain tax position is audited and finally resolved

or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. Any tax benefit that is or has been reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is "more likely than not" to be sustained, (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation, or (3) the statute of limitations for the tax position has expired.

Comprehensive Income (Loss)

ASC 220 “Comprehensive Income” establishes standards for reporting and display of comprehensive income and its components in a full set of general-purpose consolidated financial statements. The Company’s comprehensive income consists of net income (loss) and other comprehensive income (loss), consisting of unrealized net gains and losses on the translation of the assets and liabilities of its foreign operations.

Revenue Recognition

The Company follows ASC 606 “Revenue from Contracts with Customers”. The Company generates revenue by selling gold and silver concentrate material produced from its mining operations. The Company recognizes revenue for gold and silver concentrate production, net of treatment and refining costs, when it satisfies the performance obligation of transferring control of the concentrate to the customer. This is generally when the material is delivered to the customer facility for treatment and processing, as the customer has the ability (upon such delivery) to direct the use of and obtain substantially all the remaining benefits from the material and the customer has the risk of loss.

The amount of revenue recognized is initially recorded on a provisional basis based on the contract price and the estimated metal quantities based on assay data. Adjustments to the provisional sales prices are made to take into account the mark-to-market changes based on the forward prices of metals until final settlement occurs. The changes in price between the provisional sales price and final sales price are considered an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable from the sale of the concentrate at the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is adjusted to market through revenue at final settlement. Market changes in the prices of metals between the delivery and final settlement dates will result in adjustments to revenues related to previously recorded sales of concentrate. The chief risk associated with the recognition of sales on a provisional basis is the fluctuation (if any) between the estimated quantities of the precious metals based on the initial assay and the actual recovery from treatment and processing.

During the years ended December 31, 2025 and 2024, there were $Nil and $9,350,000, respectively of revenue recognized during the year from customer deposit liabilities (deferred contract revenue) from prior periods, and no customer deposits were refunded to the customer due to order cancellation.

Shipping and handling costs are considered fulfillment costs after the customer obtains control of the goods.

Derivative Financial Instruments

Certain warrants are treated as derivative financial liabilities. The estimated fair value, based on the Black-Scholes model, is adjusted on a quarterly basis with gains or losses recognized in the statements of operations and comprehensive income (loss). The Black-Scholes model is based on significant assumptions such as volatility, dividend yield, and expected term.

Fair Value of Financial Instruments

The Company’s financial instruments include cash, accounts receivable, accounts payable, credit line, installment notes payable and derivative liabilities. The carrying values of cash, accounts receivable, accounts payable, and credit line approximate fair value due to their short-term nature. Installment credit line also approximates fair value based on the relationship between stated interest rates and the Company’s risk-adjusted borrowing rate. Derivative liabilities are measured using the Black-Scholes model.

Earnings (Loss) Per Share

Earnings (loss) per share attributable to the common equity holders of the Company are calculated in accordance with ASC 260 “Earnings per Share”. The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share. Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding. Potentially dilutive common shares are additional common shares assumed to be exercised.

Potentially dilutive common shares consist of stock warrants and convertible preferred shares and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive.

The Company’s Series C Preferred Stock and related outstanding dividends were convertible into 2,942,695 and 2,853,721 shares of common stock at December 31, 2025 and 2024, respectively. The Company’s Series D Preferred Stock and related outstanding dividends were convertible into 851,200 and 820,800 shares of common stock at December 31, 2025 and 2024, respectively. During the years ended December 31, 2025 and 2024, the Company had warrants outstanding to purchase 892,165 shares of common stock. During the years ended December 31, 2025 and 2024 the Company has options outstanding to purchase 1,150,000 and 1,150,000 shares of common stock. These shares related to these potentially dilutive common shares are excluded from the weighted average diluted shares outstanding for the year ended December 31, 2025 and 2024, as including them would be anti-dilutive.

	Years ended December 31,
	2025		2024
Net income (loss) attributable to common shareholders	$	3,582,804	$	(8,755,742	)
Shares:
Weighted average number of common shares outstanding, Basic		29,315,726		24,680,167
Weighted average number of common shares outstanding, Diluted		37,864,832		24,680,167
Basic income (loss) per share	$	0.12	$	(0.35	)
Diluted income (loss) per share	$	0.13	$	(0.35	)

Related Party Transactions

FASB ASC 850 "Related Party Disclosures" requires companies to include in their consolidated financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.

Significant Judgments, Estimates and Assumptions

The preparation of financial statements in accordance with GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. These judgments, estimates and assumptions are regularly evaluated and are based on management’s experience and knowledge of the relevant facts and circumstances. While management believes the estimates to be reasonable, actual results could differ from those estimates and could impact future results of operations and cash flows.

The areas which require significant judgment and estimates that management has made at the financial reporting date, that could result in a material change to the carrying amounts of assets and liabilities, in the event actual results differ from the assumptions made, relate to, but are not limited to the following:

Significant judgments:

the determination of income tax is inherently complex and requires making certain estimates and assumptions about future events;
quantitative and qualitative factors used in the assessment of impairment of the Company’s mineral property;

the analysis of resource calculations, drill results, etc. which can impact the Company’s assessment of impairment, and provisions, if any, for environmental rehabilitation and restoration; and
the valuation of derivatives liabilities, which requires the selection of appropriate valuation models and significant judgment in determining input assumptions.

Reclassification

Certain prior period amounts in the Consolidated Balance Sheets have been reclassified to conform with current period presentation. All amounts previously presented under "Mining Concessions” as of December 31, 2024, have been reclassified to "Mineral Property Interests, Plant and Equipment”. See Note 3. Amounts relating to accrued interest on the Francisco Arturo mining concession duties payable (Note 11) that were previously included under "Accrued Liabilities” as of December 31, 2024 have been reclassified to "Mining concession duties payable”. In addition, certain non-trade obligations previously included under accounts payable and accrued liabilities as of December 31, 2024 have been reclassified to "Accrued mining taxes and other liabilities”. These reclassifications better reflect the nature of the liabilities and had no effect on current liabilities, net income or cash flows in any period reported.

Amounts in the Consolidated Statements of Operations and Comprehensive Income (Loss) related to mine development and stripping costs for the year ended December 31, 2025 have been included as part of mine production costs to conform to the current year presentation. See Note 3. This reclassification better reflects the nature of the costs and had no effect on net income or cash flows in any period presented. In addition, effective for the year ended December 31, 2025, the Company reclassified and consolidated previously reported cost categories—including Mine Production Costs, Mill Production Costs Applicable to Sales, Camp, Warehouse and Facilities, Transportation Costs, Property Holding Costs, Facilities Expansion Costs, and Exploration Drilling—into a single line item titled ‘Operating Costs.’ This reclassification has been applied retrospectively, and all prior period amounts previously disclosed under these categories have been adjusted to conform to the current period presentation.

Recently Adopted Accounting Pronouncements

In the fourth quarter of 2024, the Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable

Segment Disclosures (“ASU 2023-07”). ASU 2023-07 enhances reportable segment disclosures by requiring disclosures such as

significant segment expenses, information on the CODM and disclosures for entities with a single reportable segment. Additionally, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, and contain other disclosure requirements. The adoption of ASU 2023-07 did not have an impact on the consolidated results of operations, financial condition or statement of cash flows.

Recently Issued Accounting Standards

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows, as the amendments primarily affect disclosure requirements.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance enhances the transparency and decision usefulness of income tax disclosures by requiring, among other things, expanded disclosures related to the effective tax rate reconciliation and income taxes paid.

Adoption of ASU 2023-09 requires public entities to:

Present a tabular reconciliation of the statutory federal income tax rate to the effective income tax rate using specified categories, including a requirement to disaggregate reconciling items that exceed a quantitative threshold;
Disclose income (loss) before income taxes disaggregated between domestic and foreign operations; and

Disclose in the supplemental disclosures within the statement of cash flows, income taxes paid, net of refunds received, disaggregated by federal, state, and foreign jurisdictions, including further disaggregation for individual jurisidictions that are significant

The Company adopted ASU 2023-09 effective January 1, 2025 on a prospective basis. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows, as the amendments primarily affect disclosure requirements.

Accounting Standards Update 2024-03 – Income Statement – Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40). ASU 2024-03 requires all public entities to disclose disaggregated information about purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion for each income statement line item that contains those expenses. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. ASU 2024-03 allows for early adoption and requires either prospective adoption to financial statements issued for reporting periods after the effective date of ASU 2024-03 or retrospective adoption for any and all prior periods presented in the financial statements. The Company is currently assessing the impact of adopting ASU 2024-03 on the consolidated financial statements and related disclosures.

NOTE 2 - RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

In August 2025, management determined that the Company had accounted for Special and Extraordinary Mining Duties in Mexico inaccurately in certain prior periods, and that, mining tax expense and mining tax liabilities were not recognized in connection with consolidated financial statements prepared for the fiscal years ended December 31, 2021, 2022, and 2023 contained in its Annual Reports on Form 10-K for those years. As a result of these misstatements, the Company is restating certain financial information for the periods noted. All restated financial information is included in this Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”), and the Company has not filed, and does not intend to file, amendments to any of our filings that the Company have previously filed with the SEC.

Restatement Background

In March 2025, the Mexican Tax Authority (Servicio de Administracion, “SAT”) issued a re-assessment for the 2021 tax year of DynaMexico. Following receipt of such reassessment, the Company identified previously unrecognized liabilities related to Special and Extraordinary Mining Duties applicable to its mining operations in Mexico. These duties, which are statutory and recurring in nature, were not fully recognized in the fiscal year ended December 31, 2021. The Company undertook a thorough internal review of its tax filings from prior years to ensure compliance and completeness of any other potential liabilities. As a result of the internal review, management identified unrecognized mining duties and corresponding liabilities from DynaMexico and DynaMineras, two of the Company’s subsidiaries that operated the SJG mine during the years reviewed. The previously unrecognized liabilities total approximately $1.1 million, $0.9 million, $0.6 million, and $0.5 million for the fiscal years ended December 31, 2021, 2022, 2023 and 2024, respectively, inclusive of inflation adjustments, and penalties.

The internal review determined that restatement changes were necessary due to:

an understatement of mining tax expense in each period of the consolidated statement of operations; and
an understatement of mining tax liabilities in each period of the consolidated balance sheets

Items Included in this Filing

This Form 10-K includes restated consolidated financial statements and related disclosures as of and for the years ended December 31, 2021, 2022, 2023 and 2024.

The impact of the correction of the misstatements on the consolidated financial statements related to the mining duties for the years ended December 31, 2021, 2022, 2023 and 2024, which have now been corrected, is summarized below. The applicable accompanying notes to the consolidated financial statements have also been updated, as applicable. The following amounts reflect the impact of the correction attributable to each individual reporting period; the cumulative effect of the prior‑period misstatement is reflected in the revised comparative financial statements and is disclosed below for the most recently comparable prior period.

2021
Consolidated Statements of Financial Position
Accrued expenses	5,440,204		1,070,806		6,511,010
Accumulated deficit	(50,722,465	)	(1,070,806	)	(51,793,271	)
Consolidated statements of loss and comprehensive loss
Other income/(expenses)	1,072		(1,070,806	)	(1,069,734	)
Comprehensive income for the year	8,534,363		(1,070,806	)	7,463,557
Income per share, basic and diluted	0.47				0.41
Consolidated statements of changes in equity
Income for the year	8,534,363		(1,070,806	)	7,463,557
Deficit – December 31, 2021	(50,722,465	)	(1,070,806	)	(51,793,271	)
Total equity	(151,589	)	(1,070,806	)	(1,222,395	)
2022
Consolidated Statements of Financial Position
Accrued expenses	5,756,961		891,894		6,648,855
Deferred tax asset	2,970,410		384,196		3,354,606
Accumulated deficit	(44,036,663	)	(507,698	)	(44,544,361	)
Consolidated statements of loss and comprehensive loss
Other income/(expenses)	2,242		(507,698	)	(505,456	)
Comprehensive income for the year	6,685,802		(507,698	)	6,178,104
Income per share, basic and diluted	0.33				0.29
Consolidated statements of changes in equity
Income for the year	6,685,802		(507,698	)	6,178,104
Deficit – December 31, 2021	(50,722,465	)	(1,070,806	)	(51,793,271	)
Deficit – December 31, 2022	(44,036,663	)	(1,578,504	)	(45,615,167	)
Total equity	13,192,141		(1,578,504	)	11,613,637
Consolidated statements of changes in assets
Deferred tax asset	2,970,410		384,196		3,354,606
Total Assets	40,942,912		384,196		41,327,108
Consolidated statements of changes in liabilities
Accrued expenses	5,756,961		1,962,700		7,719,661
Total liabilities	21,893,291		1,962,700		23,855,991
2023
Consolidated Statements of Financial Position
Accrued liabilities	7,727,621		627,025		8,354,646
Deferred tax asset	4,264,115		126,070		4,390,185
Accumulated deficit	(58,570,167	)	(500,955	)	(59,071,122	)
Consolidated statements of loss and comprehensive loss
Other income/(expenses)	2,218		(500,955	)	(498,737	)
Comprehensive loss for the year	(14,533,504	)	(500,955	)	(15,034,459	)
Loss per share, basic and diluted	(0.65	)			(0.68	)
Consolidated statements of changes in equity
Loss for the year	(14,533,504	)	(500,955	)	(15,034,459	)
Deficit – December 31, 2021	(50,722,465	)	(1,070,806	)	(51,793,271	)

All values are in US Dollars.

Deficit – December 31, 2022	(44,036,663	)	(507,698	)	(44,544,361	)
Deficit – December 31, 2023	(58,570,167	)	(2,079,459	)	(60,649,626	)
Total equity	3,815,259		(2,079,459	)	1,735,800
Consolidated statements of changes in assets
Deferred tax asset	4,264,115		510,266		4,774,381
Total Assets	35,438,350		510,266		35,948,616
Consolidated statements of changes in liabilities
Accrued expenses	7,727,621		2,589,725		10,317,346
Total liabilities	25,765,611		2,589,725		28,355,336
2024
Consolidated Statements of Financial Position
Accrued mining taxes and other liabilities	5,172,685		483,880		5,656,565
Deferred tax asset	4,025,957		97,289		4,123,246
Accumulated deficit	(66,705,019	)	(386,591	)	(67,091,610	)
Consolidated statements of loss and comprehensive loss
Other income/(expenses)	50,171		(386,591	)	(336,420	)
Comprehensive loss for the year	(8,134,852	)	(386,591	)	(8,521,443	)
Loss per share, basic and diluted	(0.34	)			(0.36	)
Consolidated statements of changes in equity
Loss for the year	(8,134,852	)	(386,591	)	(8,521,443	)
Deficit – December 31, 2021	(50,722,465	)	(1,070,806	)	(51,793,271	)
Deficit – December 31, 2022	(44,036,663	)	(507,698	)	(44,544,361	)
Deficit – December 31, 2023	(58,570,167	)	(500,955	)	(59,071,122	)
Deficit – December 31, 2024	(66,705,019	)	(2,466,050	)	(69,171,069	)
Total equity	3,375,602		(2,466,050	)	909,552
Consolidated statements of changes in assets
Deferred tax asset	4,025,957		607,555		4,633,512
Total Assets	37,916,392		607,555		38,523,947
Consolidated statements of changes in liabilities
Accrued mining taxes and other liabilities	5,172,685		3,073,605		8,246,290
Total liabilities	28,683,310		3,073,605		31,756,915

All values are in US Dollars.

The cumulative effect of the correction through December 31, 2024 is reflected as an adjustment to opening retained earnings and agrees to the revised consolidated financial statements.

NOTE 3 - CHANGE IN ACCOUNTING ESTIMATE DUE TO TRANSITION TO PRODUCTION STAGE

On May 20, 2025, the Company filed with the SEC a Technical Report Summary ("TRS”) for the SJG mine prepared in accordance with the requirements of S-K 1300. The TRS includes the Company’s first declaration of mineral reserves and supports the transition from an Exploration Stage issuer to a Production Stage issuer.

As a result of the declaration of proven and probable mineral reserves, the Company has revised certain accounting estimates prospectively, including the capitalization of certain development costs and the commencement of systematic depreciation of applicable assets. These changes have been applied prospectively in accordance with ASC 250, with no restatement of prior periods.

Impact on Accounting Estimates

In connection with this transition, the Company revised its accounting estimates as follows:

1. Capitalization of Development Costs

• Prior to January 1, 2025, all underground mine development costs were expensed as incurred, as the SJG mine was classified as

an exploration-stage property.

• Effective January 1, 2025, mine development costs that are directly related to sustaining and production-related activities are capitalized as part of "Mineral Property Interests, Plant and Equipment.”

• As a result capitalization of development costs during the year ended December 31, 2025 increased by approximately $8.9 million, compared to prior periods.

2. Depreciation and Depletion

• Beginning in 2025, the Company commenced depletion of capitalized mine development costs and depreciation of mineral property interests (including mining concessions) using the Unit-of-Production ("UOP”) method, based on total proven and probable mineral reserves.

• As a result depreciation and depletion expense during the year ended December 31, 2025 increased by approximately $1.4 million, compared to prior periods.

Financial Impact of the Change

The adoption of these revised estimates in 2025 had the following impact on the Company’s financial results:

Impact Area	Increase/(Decrease)
Capitalized Development Costs	$8.9 million
Depreciation and Depletion Expense	$1.4 million

This change in accounting estimate has been applied prospectively in accordance with ASC 250, Accounting Changes and Error Corrections, with no restatement of prior periods.

Forward-Looking Considerations

Management anticipates that these changes will result in increased capitalized costs and higher depreciation expense in future periods. The Company will continue to review and update its reserve estimates and related accounting assumptions on an ongoing basis, consistent with GAAP.

NOTE 4 – CONCENTRATE AND ORE INVENTORIES

Inventories are carried at the lower of cost or fair value and consist of mined tonnage, gravity-flotation concentrates, and gravity tailings (or, flotation feed material). Inventory balances as of December 31, 2025 and 2024, respectively, were as follows:

	2025		2024
Mined Tonnage	$	899,302	$	1,406,448
Gold-Silver Concentrates		696,061		169,944
Total Inventories	$	1,595,363	$	1,576,392

NOTE 5 – MINERAL PROPERTY INTERESTS, PLANT AND EQUIPMENT

Mineral property interests, plant and equipment consists of the following as of December 31, 2025 and 2024:

	December 31, 2025			December 31, 2024
Mineral property interests, cost
Mining concessions	$	4,132,678		$	4,132,678
Mine development		8,911,872			—
Subtotal		13,044,550			4,132,678
Less: accumulated depletion		(964,295	)		—
Mineral property interests, carrying value	$	12,080,255		$	4,132,678
Plant and equipment, cost
Construction in progress	$	542,000		$	—
Plant and equipment		2,228,651			73,691
Other		2,587,966			48,337
Subtotal		5,358,617			122,028
Less: Accumulated depreciation and amortization		(130,549	)		(42,738	)
Plant and equipment, carrying value	$	5,228,068		$	79,290
Total Property and Equipment	$	17,308,323		$	4,211,968

Depreciation and amortization has been provided over each asset’s estimated useful life. Depreciation and amortization expense was $31,625 and $30,499 for the years ended December 31, 2025, and 2024 respectively. ARO is included in Other.

NOTE 6 - OTHER CURRENT ASSETS

Other current assets consist primarily of advances to suppliers and prepaid assets.

NOTE 7 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

As of December 31, 2025 and 2024, the Company had the following accrued liabilities:

	December 31,		December 31,
	2025		2024
			(Restated)
Accounts payable	$	11,644,576	$	5,812,439
Accrued vendors		2,586,453		406,487
Accrued payroll and board fees		222,250		412,500
Accrued interest		135,920		-
Other accrued liabilities		2,716,728		721,009
Trade payables and accruals	$	17,305,927	$	7,352,435
Accrued mining taxes		7,533,493		6,395,721
Other liabilities		2,252,512		1,850,569
Accrued mining taxes and other liabilities	$	9,786,005	$	8,246,290

NOTE 8 - DERIVATIVE LIABILITIES

Warrants Issued With the Notes Convertible into Series D Preferred Stock

In fiscal 2020, the Company closed a financing agreement with Golden Post Rail, LLC (“Golden Post”) and certain shareholders whereby the Company issued convertible promissory notes that bore interest at 10% and were convertible into shares of Series D Senior Convertible Preferred Stock and common stock purchase warrants (“2020 warrants”) at an exercise price of $0.01 per share, with an expiry of ten years. These 2020 warrants contain anti-dilution provisions. See Note 12. The Company analyzed the conversion features of the promissory notes convertible into Series D Preferred Stock and determined that the 2020 warrants and remaining purchaser warrants issued with such notes qualified as a derivative liability. The fair value was required to be allocated among the notes, the notes’ conversion features, and the 2020 warrants and remaining purchaser warrants, and then re-measured at each reporting date. The Company performed a valuation of the conversion feature of the 2020 warrants and remaining purchaser warrants. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, to non-financial assets and liabilities that are recognized or disclosed at fair value on a nonrecurring basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). To measure fair value, the Company incorporates assumptions that market participants would use in pricing the asset or liability and utilizes market data to the maximum extent possible.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The Company classified the inputs in this valuation as Level 3 within the fair value hierarchy under ASC 820 and utilized an equity simulation model to determine the value of conversion feature associated with the 2020 Warrants issued in connection with the notes convertible into Series D Preferred Stock, based on the assumptions set forth below:

	2025			2024
Annual volatility rate		115	%		128	%
Risk free rate		3.47	%		4.25	%
Remaining term	4.37 years			5.37 years
Fair value of common stock	$	1.40		$	1.00

For the years ended December 31, 2025 and 2024, an active market for the Company’s common stock did not exist. Accordingly, the fair value of the Company’s common stock was estimated using a valuation model with level 3 inputs.

The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2025 and 2024.

Year Ended	2025		2024
Fair value of derivative (warrants), beginning of year	$	892,167	$	1,797,341
Exercise of warrants		-		-
Change in fair value of derivative		356,863		(905,174	)
Fair value of derivative (warrants), end of year	$	1,249,030	$	892,167

NOTE 9 – CREDIT LINE

(A) Advance Credit Line Facility/Customer Advances

On February 4, 2021, the Company entered into an Advance Credit Line Facility and Purchase Agreement (the “ACL”), with a commercial buyer. On August 2, 2023, the ACL was extended through December 2026 in an Amendment Agreement (the “Amendment”). Under the terms of the ACL and Amendment:

Beginning in September 2023, up to $10 million of the ACL advance may be converted into a one-year installment loan (the “RCL”) bearing interest at 3 month SOFR + 7.5% and amortized as follows: Month 1, interest only; Month 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest. Converting the advance amount into an installment loan will reduce the available on a pro rata percentage basis;
If the ACL is converted into the RCL subsequent deliveries during the term of the loan will be paid in cash within ten days of delivery; and

The Amendment provides the buyer with a right of first refusal during the Offtake Agreement, to provide offtake financing and purchase other concentrates (zinc, silver, copper, etc) and doré from the Company’s open pit and underground operations.

(B) Revolving Credit Line (RCL) & Temporary Advance Credit Line (TACL)

On December 1, 2023, the Company exercised its option under the ACL to convert the outstanding balance of $9,750,000 into an RCL. The RCL is repayable as follows: Month 1, interest only; Months 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest.

On June 20, 2024, the Company amended the terms of the RCL. Under the amendment, the Company could receive up to an additional $4,000,000 under a temporary advance credit line (the "TACL”) at the same interest rate, with the TACL maturing on November 30, 2024. As part of the amendment, the Company also received a put option (the "Put Option”) allowing it to convert up to $9,000,000 of the RCL into common stock at $1.61 per share, exercisable from November 1, 2024 until the November 30, 2024. If both the RCL and the TACL were repaid in full on or before November 30, 2024, the maximum principal amount of the RCL would increase to $12,500,000. However, if the Put Option was exercised for an amount greater than $4,000,000, the maximum principal amount of the RCL would be reduced on a dollar-for-dollar basis by the excess.

As part of the June 20, 2024 amendment, the Company granted a security interest in its Mexican IVA tax claims to the holder of the RCL and TACL notes.

In November 2024, the Company repaid the TACL in full and renewed the RCL for an additional one-year term. Under the renewal, the TACL was discontinued, and the Put Option was removed. The maximum principal amount of $12,500,000, the interest rate, and repayment terms remained unchanged.

On August 22, 2025, DynaMexico entered into an amendment (the "Amendment”) to the Gold Concentrate Purchase Agreement originally dated February 1, 2021 (as amended, the "Offtake Agreement”), with MK Metal Trading Mexico S.A. de C.V. ("Buyer”) and Ocean Partners UK Limited ("Ocean Partners UK”).

The Amendment:

• Extends the term of the Offtake Agreement through December 31, 2030, with automatic annual renewals unless terminated by either party with

365

days’ notice; • Adds Ocean Partners UK as a joint buyer under the Offtake Agreement, with full rights and obligations;

• Establishes a new $15 million Concentrate Credit Facility (the "Credit Facility”), replacing the prior $12.5 million facility, with principal repayable in equal monthly installments over months 7 through 24, bearing interest at 3-month SOFR plus 6.75%;

• Introduces a $3 million termination fee payable by DynaMexico to Buyer under certain conditions; and

• Provides security for the Credit Facility, including a parent company guarantee from the Company, a general security agreement, and a pledge of DynaMexico shares.

The Credit Facility is structured as a 24-month loan. For the first six months of the loan tenor, DynaMexico is required to make interest-only payments. Beginning in month 7 and continuing through month 24, the loan is repayable in 18 equal monthly principal installments, plus interest.

Concurrent with the Amendment, DynaMexico and Ocean Partners UK entered into the Credit Facility, and the Company executed a Parent Company Guarantee in favor of Ocean Partners UK, guaranteeing DynaMexico’s obligations under the Credit Facility.

The following is a summary of the activity during the years ended December 31, 2025 and 2024:

	December 31,			December 31,
	2025			2024
Balance beginning of period	$	9,850,000		$	9,750,000
Advances		17,650,000			12,000,000
Principal Payments		(12,500,000	)		(11,900,000	)
Balance end of period	$	15,000,000		$	9,850,000
Current liability	$	8,333,333		$	9,850,000
Non-current liability	$	6,666,667		$	-
Future payments (Principal and Interest):
2026	$	9,610,921		$	-
2027	$	6,934,039		$	-

Interest expense for the years ended December 31, 2025 and 2024 was $1,291,275 and $1,249,098, respectively.

NOTE 10 – CONCESSION DUTIES PAYABLE

In June 2018, the Company entered into financing agreements for the unpaid mining concession duties on the Francisco Arturo mining concession for the year ended December 31, 2017 and the period ending June 30, 2018 in the amount of $1,739,392. The Company paid an initial 20% payment of $347,826 and financed the balance over 36 months at 22%.

In February 2019, the Company entered into a financing agreement for unpaid mining concession duties on the Francisco Arturo mining concession for the year ended December 31, 2018 in the amount of $335,350. The Company paid an initial 20% payment of $67,070 and financed the balance over 36 months at an interest rate of 22%.

In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares. On July 31, 2018, the application for reduction was approved and the Company paid an initial amount of 985,116 MNP (Pesos), for the second semester 2018 mining concessions duties on the reduced Francisco Arturo mining concession. The Company continues to accrue an amount of $22,500 (USD) per semester on the reduced Francisco Arturo mining concession.

As of June 2019, the Company ceased making monthly payments on the above noted Francisco Arturo concession notes and has petitioned the Hacienda for a reduction in the liability equal to the reduction in the Francisco Arturo concession above. For financial reporting purposes the Company continues to carry all notes at unpaid principal amount and accrues interest on a monthly basis. At December 31, 2025, $2,642,464 (2024 - $2,221,219) of accrued interest on the notes was included in accrued liabilities on the accompanying consolidated balance sheet.

In October 2019, the Company entered into a financing agreement for unpaid mining concession duties on the SJG mine core mining concessions in the amount of $ 299,474. The Company paid an initial 20% payment of $59,895 and financed the balance over 36 months at an interest rate of 22%. Interest expense for the year ended December 31, 2025 was $421,245 (2024 - $449,161).

The following is a summary of the transaction during the years ended December 31, 2025, and December 31, 2024:

Balance December 31, 2024	$	4,059,565
Exchange rate adjustment		693,267
2025 Interest		421,246
2025 principal payments		—
Balance December 31, 2025	$	5,174,078

NOTE 11 - ASSET RETIREMENT OBLIGATION

The Company is responsible for the reclamation of certain past and future disturbances at its properties. During 2023, a significant upgrade was made to the milling facility and therefore, an ARO was established as of December 31, 2023.

During the year ended December 31, 2025, the Company recorded a change in estimate related to its ARO as a result of completing an updated, comprehensive closure plan. The increase in the ARO was recorded as an increase to mineral property, plant and equipment, with a corresponding increase to the ARO liability. The Company measures AROs using an expected present value

technique in accordance with ASC 410‑20 and discounts expected future cash flows using a credit‑adjusted, risk‑free rate. As of December 31, 2025, the discount rate used was 4.92%. The ARO represents estimated undiscounted future cash outflows of approximately $4.7 million, expected to be incurred over the closure and post‑closure periods.

A reconciliation of the Company’s reclamation and remediation liabilities for the years ended December 31, 2025 and 2024, is as follows:

	December 31,		December 31,
	2025		2024
Asset retirement obligation at beginning of year	$	223,520	$	198,468
Change in estimate		2,565,906		6,792
Accretion		42,004		18,260
Asset retirement obligation at end of year	$	2,831,430	$	223,520

NOTE 12 – STOCKHOLDERS’ EQUITY

The total number of shares of all classes of capital stock which the Company has the authority to issue is 60,001,000 shares, consisting of (i) twenty million and one thousand (20,001,000) shares of Preferred Stock, par value $0.0001 per share (“Preferred Stock”), of which 1,734,992 shares are designated as Series C Preferred Stock, 3,000,000 shares are designated as Series D Preferred Stock, and 1,552,795 shares are designated as Series E Preferred Stock, and (ii) forty million (40,000,000) shares of common stock, par value $0.01 per share. As of December 31, 2025, 13,713,213 of Preferred Stock remain undesignated.

Series C Senior Convertible Preferred Stock

As of December 31, 2025 and 2024, there were 1,734,992 shares of Series C Preferred Stock outstanding. As of December 31, 2025, the Series C Preferred Stock is convertible to common stock at $1.95 per share or redeemable in cash at the shareholder’s option and include anti-dilution protection. The Series C Preferred Stock may receive a 4% per annum dividend, payable if available, and in arrears, calculated at 4% of $4,337,480 payable annually on June 30. As of December 31, 2025, dividends for the years ending December 31, 2017 through 2025 totaling $1,574,274 were in arrears (2024 - $1,400,784).

Because the Series C Preferred Stock is mandatorily redeemable by the Company at the election of the holder upon maturity, it is classified as "temporary equity” on the consolidated balance sheet.

Series D Senior Convertible Preferred Stock

Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company, and with Shareholders of DynaResource

On May 14, 2020, the Company closed an additional financing and related agreements with certain shareholders totaling $4,020,000 which was convertible into shares of Series D Preferred Stock. The noteholders also received the 2020 warrants, as outlined in Note 8, for the purchase of an aggregate of 1,260,633 shares of the Company’s common stock at an exercise price of $0.01 a share.

On October 7, 2021, the Company paid $2,500,000 to repurchase one note. The remaining ten noteholders elected to convert their notes totaling $1,520,000 into Series D Preferred Stock at $2.00 per share. Concurrently with the note conversion the noteholders exercised 368,468 of the 2020 Warrants to purchase 368,468 shares of the Company’s common stock at $0.01 per share. On October 18, 2021, the Company issued 760,000 shares of Series D Preferred Stock. The Series D Preferred Stock may receive a 4% per annum dividend, payable if available, and in arrears, calculated at 4.0% of $1,520,000 payable annually on October 18. As of December 31, 2025 dividends for the years 2022 through 2025 totaling $243,200 were in arrears.

Because the Series D Preferred Stock is mandatorily redeemable by the Company at the election of the holder upon maturity, it is classified as "temporary equity” on the consolidated balance sheet.

Deemed dividends on the Series C and D Preferred Stock for the years ended December 31, 2025 and 2024, were $234,299 and $234,299, respectively. As these dividends have not been declared by the Company, they are required to be presented as an adjustment "below” the net income (loss) line on the accompanying unaudited condensed interim consolidated statements of income.

Series E Convertible Preferred Stock

As of December 31, 2025 and 2024 there were 1,552,795 and nil shares of Series E Preferred Stock outstanding. The Series E Preferred Stocks is convertible on a one-for-one basis into shares of common stock, subject to equitable adjustment. They are eligible to receive the equivalent of any common stock dividend declared but carry no preferred dividend rights and are not redeemable for cash.

Preferred Stock (Undesignated)

In addition to the 1,734,992 shares designated as Series C Preferred Stock, the 3,000,000 shares designated as Series D Preferred Stock, and 1,552,795 such shares designated as Series E Preferred Stock, the Company is authorized to issue an additional 13,713,213 shares of Preferred Stock, each having a par value of $0.0001 per share. The Company’s Board of Director (the “Board”) has authority to issue Preferred Stock from time to time in one or more series and, with respect to each series, to fix and determine by resolution the designations, powers, preferences, rights, qualifications, limitations, and restrictions of such series. At December 31, 2025 and December 31, 2024, there were no other shares of Preferred Stock outstanding.

The shares of each series of Preferred Stock may vary from the shares of any other series thereof in any or all these rights and terms. The Board may increase the number of shares designated for any existing series by resolution, adding authorized but unissued and undesignated shares to that series. Unless otherwise provided in a particular Preferred Stock designation, the Board may also decrease the number of shares designated for any existing series by resolution, returning such shares to the pool of authorized, unissued and undesignated Preferred Stock.

Common Stock

The Company is authorized to issue 40,000,000 common shares at a par value of $0.01 per share. These shares carry full voting rights. At December 31, 2025 and December 31, 2024, there were 29,315,726 and 29,315,726 common stock shares outstanding, respectively. No dividends were declared or paid during the years ended December 31, 2025 and 2024, respectively.

Preferred Rights

The Company issued "Preferred Rights” and received proceeds of $784,500 for these rights. This amount is reflected as "Preferred Rights” within stockholders’ equity in the accompanying consolidated balance sheets. As of December 31, 2025, $744,500 had been repaid, leaving a current balance of $40,000 and $40,000 as of December 31, 2025 and 2024, respectively.

Stock Issuances

On June 27, 2024 the Company issued 1,552,795 shares of Series E Preferred Stock for $2,500,000 cash consideration.
On June 28, 2024 the Company issued 287,287 shares of common stock with a value of $462,532 to senior executives as compensation.
On October 18, 2024 the Company issued 5,769,231 shares of common stock for $6,000,000 cash consideration.

Treasury Stock

There were no treasury stock transactions during the year ended December 31, 2025, or during the year ended December 31, 2024.

There were 37,180 shares of treasury stock outstanding as of December 31, 2025 and 2024.

Warrants

As of December 31, 2025, the Company had outstanding warrants to purchase 892,165 shares of common stock. These warrants were issued as part of the 2020 financing transaction involving notes convertible into Series D Preferred Stock.

			Weighted		Weighted
			Average		Average
			Exercise		Remaining
	Number		Price		Contractual		Intrinsic
	of Warrants		per share		Life (Years)		Value
Balance at December 31, 2023		892,165		0.01		6.37		—
Exercise of warrants		—		—		—		—
Forfeiture of the warrants		—		—		—		—
Exercisable at December 31, 2024		892,165		0.01		5.37		—
Exercise of warrants		—		—		—		—
Forfeiture of the warrants		—		—		—		—
Balance at December 31, 2025		892,165		0.01		4.37		—
Exercisable at December 31, 2025		892,165		0.01		4.37		—

A derivative liability was recognized upon the issuance of the 2020 Warrants. As of December 31, 2025, the derivative liability totaled $1,249,030. See Note 8 above.

Options

As of December 31, 2025, the Company had outstanding options to purchase an aggregate of 1,150,000 shares of common stock, issued to directors and executive officers as compensation:

On February 16, 2024, in conjunction with joining the Board, Mr. Quinton Hennigh was awarded options to purchase up to 400,000 shares of common stock at an exercise price of $5.00 per share. The options vest in 25% increments on each of the first four anniversaries of the grant date and expiring five years after the grant date.

On June 3, 2024, in conjunction with accepting the position of Chief Executive Officer, Mr. Rohan Hazelton was awarded options to purchase up to 750,000 shares of common stock at an exercise price of $1.75 per share. The options vest and become exercisable in one-third increments on each of the first three anniversaries of the grant date and expire five years after the grant date.

			Weighted		Weighted
			Average		Average
			Exercise		Remaining
	Number		Price		Contractual		Intrinsic
	of Options		per share		Life (Years)		Value
Balance at December 31, 2023		—		—		—		—
Issuance of options		1,150,000		2.88		—
Exercise of options		—		—
Forfeiture of the options		—		—
Balance at December 31, 2024		1,150,000		2.88		3.97		—
Issuance of options		—		—		—
Exercise of options		—		—
Forfeiture of the options		—		—
Balance at December 31, 2025		1,150,000		2.88		2.97		—

As of December 31, 2025, the Company had 350,000 stock options outstanding that were vested and exercisable but not exercised. The weighted‑average exercise price of these options was $2.68, and the weighted‑average remaining contractual term was

2.97

years.

NOTE 13 – STOCK BASED COMPENSATION

On December 28, 2022, the Company issued 1,500,000 shares of restricted common stock to certain key employees and consultants. The shares were 25% vested at issuance and vest an additional 25% on December 28, 2023, 2024, and 2025. The shares were valued at the closing stock price of $2.35 on the date of issuance and accounted for under ASC 718. Stock compensation expense for the years ended December 31, 2025 and 2024 was $1,249,459 and $1,219,062, respectively, representing the 25% vested portion of the total stock value. In addition the 2024 expenses included accelerated vesting of $327,813 due to terminations. In addition to the

accelerated vesting 112,500 shares under these awards were cancelled in December 2024. As of December 31, 2025, deferred compensation totaling $nil remained unvested.

On June 3, 2024, Mr. Rohan Hazelton was appointed as the Company’s new Chief Executive Officer. In connection with Mr. Hazelton’s appointment, the Company entered into an Employment Agreement with Mr. Hazelton that included a signing bonus of 750,000 stock options as detailed below, 500,000 Restricted Stock Units vesting one-third per year on each of the first three anniversaries of the grant date, the terms of which are to be determined by the Compensation Committee and 500,000 Deferred Stock Units, the terms and metrics of which are to be determined by the Compensation Committee.

On July 22, 2024, Mr. Alonso Sotomayor was appointed as the Company’s new Chief Financial Officer. In connection with Mr. Sotomayor’s appointment, the Company entered into an Employment Agreement with Mr. Sotomayor that included a signing bonus of 225,000 restricted stock units vesting one-third per year on each of the first three anniversaries of the grant date.

On November 20, 2025, the Company and Mr. Sotomayor entered into a new employment arrangement pursuant to an Offer of Continued Employment with the Company, which replaced the prior employment agreement. In connection with this arrangement, the Company agreed to provide Mr. Sotomayor with a retention award (the “Retention Bonus”), subject to his continued active employment and compliance with applicable laws, including securities laws. The Retention Bonus is intended to be delivered in the form determined by the Board, in its discretion, of either (i) 225,000 restricted stock units (“RSUs”) or (ii) a number of RSUs having an aggregate value of C$470,000, calculated at the time of issuance.

The RSUs were cancelled and are expected to be reissued at such time as issuance is permitted under applicable laws. Provided Mr. Sotomayor remains actively employed at the time of issuance, the RSUs will be issued promptly in compliance with applicable laws.

On February 16, 2024, in conjunction with joining the Board, Mr. Quinton Hennigh was awarded options to purchase up to 400,000 shares of common stock of the Company at an exercise price of $5.00 per share, with such options vesting in 25% increments on each of the first four anniversaries of the date of the award and exercisable for a period of four years from the date of the grant.

The inputs utilized in calculating the fair are as follows:

Year Ended
Annual volatility rate	—	127.93	%
Risk free rate	—	4.36	%
Expected life at issuance	—	5.00
Fair Value of stock options	—	1.15

On June 3, 2024, Mr. Rohan Hazelton, in conjunction with accepting the position of Chief Executive Officer, was awarded options to purchase up to 750,000 shares of common stock of the Company at an exercise price of $1.75 per share, with such options vesting and becoming exercisable one-third per year on each of the first three anniversaries of the grant date and expiring five years after the grant date.

The inputs utilized in calculating the fair value are as follows:

Year Ended		December 31,<br>2024
Annual volatility rate	—		105.55	%
Risk free rate	—		4.42	%
Expected life at issuance	—	5.0
Fair Value of stock options	—		138.00	%

Mr. Hazelton also received 500,000 DSUs payable upon achievement of performance targets and 500,000 RSUs vesting in one-third increments on each of first three anniversaries of the grant date, with the terms and performance metrics to be determined by the Compensation Committee.

On June 2, 2025, the Company granted a total of 30,000 RSUs to an employee of the Company, holding a total grant date fair value of $40,500, measured at US$1.35/share restricted stock units vesting one-third per year on each of the first three anniversaries of

the grant date.

On August 12, 2025, the Company granted a total of 600,000 RSUs to executives of the Company, holding a total grant date fair value of $720,000, measured at US$1.20/share restricted stock units vesting one-third per year on each of the first three anniversaries of the grant date.

Management Bonuses

On March 28, 2025, the Compensation Committee approved bonus awards for the management team totaling $457,500, consisting of $217,500 in cash and $240,000 in common stock. The stock portion represents 263,736 shares, calculated based on the closing price of $0.91 per share on March 28, 2025. Of these awards, $70,000 in cash and $125,000 in stock (equivalent to 137,363 shares) were allocated to directors and officers. The Board ratified these awards on April 2, 2025.

Independent Director Compensation

Also on March 28, 2025, the Compensation Committee approved annual compensation for independent directors, consisting of a base cash component of $25,000 and an additional $50,000 to be paid in shares of common stock. The equity portion of the compensation is subject to vesting as follows: one-third vests immediately, one-third vests one year from the grant date, and the remaining one-third vests two years from the grant date. This resulted in a total stock-based award of $250,000 for the five independent directors. The Board approved this compensation on April 2, 2025. This amount was classified as a liability as the Company has an obligation to settle the obligation by issuing a variable number of shares.

NOTE 14 – INCOME TAXES

FASB ASC 740-10, Income Taxes, mandates the asset and liability approach to determine the income tax provision or benefit. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Income tax receivables and liabilities and deferred tax assets and liabilities are recognized based on the amounts that more likely than not will be sustained upon ultimate settlement with taxing authorities.

Developing the provision for income taxes and analysis of uncertain tax positions requires significant judgment and knowledge of federal and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets.

The Company assess the realization of our deferred tax assets to determine whether an income tax valuation allowance is required. Based on all available evidence, both positive and negative, and the weight of that evidence to the extent such evidence can be objectively verified, we determine whether it is more likely than not that all or a portion of the deferred tax assets will be realized.

The Company considers many factors when evaluating our uncertain tax positions, and such judgments are subject to periodic review. Tax benefits associated with uncertain tax positions are recognized in the period in which one of the following conditions is satisfied: (1) the more likely than not recognition threshold is satisfied; (2) the position is ultimately settled through negotiation or litigation; or (3) the statute of limitations for the taxing authority to examine and challenge the position has expired. Tax benefits associated with an uncertain tax position are derecognized in the period in which the more likely than not recognition threshold is no longer satisfied.

	December 31,			December 31,
	2025			2024
Deferred Tax Assets:
Federal net operating loss carryforwards	$	1,095,870		$	1,824,870
Foreign net operating loss carryforwards		3,566,535			5,377,469
Lease liability		125,791			173,284
NQO & RSA Stock Options		535,225			—
Accruals & Reserves		607,556			607,556
Fixed Assets		95,186			—
Other		302,818			174,425
Gross Deferred Tax Asset		6,328,981			8,157,604
Valuation allowance		(2,601,414	)		(3,215,387	)
Total Deferred Tax Asset	$	3,727,567		$	4,942,217
Deferred Tax Liabilities:
Right of use asset		(105,082	)		(154,188	)
Other		(1,895,329	)		(462,293	)
Total Deferred Tax Liabilities		(2,000,411	)		(616,481	)
Net Deferred Tax Asset	$	1,727,156		$	4,325,736
Balance Sheet Presentation:
Deferred Tax Asset	$	2,349,186		$	4,633,513
Deferred Tax Liability		(622,030	)		(307,777	)
Net Deferred Tax Asset	$	1,727,156		$	4,325,736

The Company's pre-tax income (loss) by jurisdiction was as follows for the years ending December 31, 2025 and 2024

	December 31,			December 31,
	2025			2024
Domestic	$	(4,270,793	)	$	(770,536	)
Foreign		13,465,211			(7,818,426	)
Total	$	9,194,418		$	(8,588,962	)

The provision for income taxes for continuing operations for the year ended December 31, 2025 and 2024 consists of the following

	December 31,		December 31,
	2025		2024
Current income taxes
Federal	$	59,270	$	—
State		—		—
Foreign		1,731,490		890,459
Total current income taxes	$	1,790,760	$	890,459
Deferred income taxes
Federal	$	114,598	$	(348,997	)
State		—		—
Foreign		3,471,959		(202,402	)
Total deferred income taxes	$	3,586,557	$	(551,399	)
Total income tax benefit	$	5,377,317	$	339,060

A reconciliation between the amount of reported income tax expense (benefit) and the amount computed by multiplying income from continuing operations before income taxes by the statutory federal income tax rate is shown below. Income tax expense for the year ended December 31, 2025 includes state minimum taxes, permanent differences, and deferred tax assets for which the

valuation allowance has been released. A corresponding tax benefit is included for the year ended December 31, 2025 to reflect the release in the valuation allowance.

	December 31,
	2024
Tax Expense at statutory federal rate of 21%		)
Permanent differences		)
Foreign rate differential		)
Return to provision
NOL Expiration
Mining Tax
Change in valuation allowance		)
Statutory to GAAP		)
Other Items
Income tax benefit		)
	December 31, 2025
	(amount )		(Percent %)
Federal tax at statutory rate				21.00	%
Nontaxable or Nondeductible Items
Section 951a inclusion - net of 250 deduction				10.81	%
Other differences				0.84	%
Foreign Tax Effects
Mexico
Foreign Rate Differential				13.18	%
Special Mining Tax				19.48	%
Tax Inflation Effect				3.76	%
Statutory to GAAP				2.84	%
Special Mining Tax Deduction		)		(5.84	%)
Other		)		(0.71	%)
Tax Credits
Valuation Allowance		)		(6.68	%)
				58.68	%

All values are in US Dollars.

The net deferred tax asset and benefit for the current year is generated primarily from cumulative net operating loss carryforward, which totals approximately $26.5 million at December 31, 2025.

	December 31,		December 31,
	2025		2024
United States Expiring 2029 to 2037	$	-	$	-
United States Indefinite Limited to 80%		5,218,429		8,689,855
Foreign NOLs		10,884,415		17,924,896
Total Net Operating Loss Carryforward	$	16,102,844	$	26,614,751

At December 31, 2025, the carryforwards available to offset US federal future taxable income consisted of net operating loss (“NOL”) carryforwards of approximately $5.2 million pre-tax, all of which, have no expiration date. Future NOL utilization will be subject to the 80-percent of taxable income limitation, as all remaining NOLs have been generated after 2017 and the passage of the Tax Cuts and Jobs Act of 2017. The Company’s Mexico net operating losses of $10.9 million pre-tax are subject to a ten-year carryforward period and the Company anticipates utilizing its Mexico NOL in future years before expiration.

The Company’s practice is to recognize interest and penalties related to income taxes in income tax expense in continuing operations, as incurred. There were no uncertain tax benefits or interest and penalties related to uncertain tax benefits as of December 31, 2025.

The Company is subject to income taxes in the US Federal jurisdiction as well as Mexico. The Company is no longer subject to US federal, state, and local tax examinations by tax authorities for years prior to fiscal year 2022. The Company is no longer subject to Mexico tax examinations for years prior to fiscal year 2018.

The Company has not provided U.S. income taxes and foreign withholding taxes, on its cumulative earnings for certain non-U.S. subsidiaries, because such earnings are intended to be indefinitely reinvested. Determination of the amount of unrecognized deferred tax liability for temporary differences related to investments in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable.

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Legal Update

From time to time, the Company is involved in legal matters in the ordinary course of its business. The Company intends to defend itself vigorously against any such claims. It is the Company’s policy to accrue for amounts related to lawsuits brought against it if it is probable that a liability has been incurred and an amount can be reasonably estimated. Although the outcome of such matters cannot be predicted with certainty and no assurances can be given with respect to such matters, the Company believes that the outcome of those ordinary course matters in which it is currently involved will not have a materially adverse effect on its results of operations, liquidity, or financial position.

Concession Taxes

The Company is required to pay taxes in México in order to maintain mining concessions owned by DynaMéxico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions and are adjusted annually for inflation. Based on Management’s recent business activities and current and forward plans and considering expenditures on mining concessions from 2002-2017 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carryforward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2017 minimum, adjusted for annual inflation of 4%).

Leases

In addition to the surface rights held by DynaMéxico pursuant to the Mining Act of México and its Regulations (Ley Minera y su Reglamento), DynaMineras maintains access and surface rights to the SJG mine pursuant to the 20-year Land Lease Agreement. The 20 Year Land Lease Agreement with the Santa Maria Ejido Community surrounding San Jose de Gracía was dated January 6, 2014 and continues through January 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of the SJG mine and provides for annual lease payments on January 1st each year by DynaMineras of $1,359,443 pesos adjusted for inflation based on the Mexico minimum wage increase commencing in 2014. Rent was $5,932,583 Pesos (approx. $304,000 USD) for the year ended December 31, 2025. The Land Lease Agreement provides DynaMineras with surface access to the core resource areas of the SJG mine (4,399 hectares), and allows for all permitted mining and exploration activities from the owners of the surface rights (Santa Maria Ejido community).

The Company leases office space for its corporate headquarters in Irving, Texas. In February 2023, the Company entered into a fifty-two month extension of the lease with additional office space. As part of the agreement the lease term commenced and the Company received four months free rent upon completion of the finish out of the new space. The expansion was completed and the Company moved into the office space affective August 1, 2023 The Company makes tiered lease payments on the 1st of each month.

The Company determines if a contract is or contains a lease at inception. As of December 31, 2025, the Company has two operating leases - a fifty-two month lease for office space with a remaining term of thirty-five months and a twenty-year ground lease in association with its México mining operations with a remaining term of eight years. Variable lease costs consist primarily of variable

common area maintenance, storage parking and utilities. The Company’s leases do not have any residual value guarantees or restrictive covenants.

As the implicit rate is not readily determinable for most of the Company’s lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. These discount rates for leases are calculated using the Company's interest rate of promissory notes.

The Company’s components of lease expense are as follows:

	Year Ended<br>December 31,<br>2025		Year Ended<br>December 31,<br>2024
Operating Lease – Office Lease	$	121,623	$	112,749
Operating Lease – Ground Lease		99,803		94,046
TOTAL	$	221,426	$	206,795

Weighted average remaining lease term and weighted average discount rate are as follows:

Weighted Average Remaining Lease Term (Years) – Operating Leases	4.96
Weighted Average Discount Rate – Operating Leases	12.50	%

Estimated future minimum lease obligations are as follows for the years ending December 31:

YEAR
2026		227,109
2027		221,722
2028		109,058
2029		112,329
2030		115,699
Thereafter		241,916
Total		1,027,833
Less Imputed Interest		(314,565	)
OPERATING LEASE LIABILITY	$	713,268

NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The ASC guidance for fair value measurements and disclosure establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 Inputs – Quoted prices for identical instruments in active markets.

Level 2 Inputs – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs – Instruments with primarily unobservable value drivers.

As of December 31, 2025 and 2024, the Company’s financial instruments were carried at fair value and were measured at fair value using Level 3 inputs, with the exception of cash, accounts receivable, foreign tax receivable, notes payable, mining concession duties payable, which are measured at amortized cost. A description of the valuation of the Level 3 inputs is discussed in Note 8.

			Quoted Prices<br>in Active<br>Markets For<br>Identical<br>Assets		Significant<br>Other<br>Observable<br>Inputs		Significant<br>Unobservable<br>Inputs
Fair Value Measurement at December 31, 2025:			(Level 1)		(Level 2)		(Level 3)
Liabilities:
Derivative Liabilities	$	1,249,030		-		-	$	1,249,030
Totals	$	1,249,030	$	-	$	-	$	1,249,030
Fair Value Measurement at December 31, 2024:			(Level 1)		(Level 2)		(Level 3)
Liabilities:
Derivative Liabilities	$	892,167		-		-	$	892,167
Totals	$	892,167	$	-	$	-	$	892,167

The fair values of other financial assets and liabilities were assumed to approximate their carrying values due to their short-term nature and historically negligible credit losses, and are classified within Level 1 of the fair value hierarchy.

NOTE 17 – CONCENTRATIONS

For the years ended December 31, 2025 and 2024, one customer accounted for 100% of revenue and accounts receivable.

NOTE 18 - SEGMENTED INFORMATION

The Company operates as one reportable segment focused on the development and operation of its gold-silver project in Mexico, The Company’s Chief Executive Officer (“CEO”) acts as the Chief Operating Decision Maker (“CODM”) and the CODM uses consolidated net income/loss as the measure of segment profit and loss to assess performance and allocate resources. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets, with a majority of these assets located in Mexico and had the following geographic concentrations as of December 31, 2025 and 2024:

	Mexico		United States		Total
December 31, 2025
Mineral property interests, plant and equipment, net	$	17,260,659	$	47,664	$	17,308,323
Current assets		9,919,495		280,859		10,200,354
Other assets		28,642,912		1,444,997		30,087,909
Total assets	$	55,823,066	$	1,773,520	$	57,596,586
December 31, 2024
Mining concessions		4,132,678		—		4,132,678
Property and equipment, net		—		79,290		79,290
Current assets		7,591,704		4,578,998		12,170,702
Other assets		20,002,992		2,138,285		22,141,277
Total assets	$	31,727,374	$	6,796,573	$	38,523,947
	Year Ended		Year Ended
---	---	---	---	---
Year Ended	December 31, 2025		December 31, 2024
Total Revenue for the year - Mexico	$	58,467,565	$	46,503,016
Total Revenue for the year - United States		-		-
Total Revenue for the year	$	58,467,565	$	46,503,016

	Year Ended			Year Ended
Year Ended	December 31, 2025			December 31, 2024
Total comprehensive income (loss) for the year - Mexico	$	4,437,051		$	(10,583,324	)
Total comprehensive income (loss) for the year - United States		(7,478,762	)		(424,518	)
Total comprehensive income (loss) for the year	$	(3,041,711	)	$	(11,007,842	)

NOTE 19 – RELATED PARTY TRANSACTIONS

Management Bonuses

On March 28, 2025, the Compensation Committee approved bonus awards to the management team in cash and common stock. The stock portion is based on the closing price of $0.91 per share on March 28, 2025. Of these awards $70,000 in cash and $125,000 in stock (equivalent to 137,363 shares) were allocated to directors and officers. The Board ratified these awards on April 2, 2025.

Independent Director Compensation

On March 28, 2025, the Compensation Committee approved annual compensation for independent directors, consisting of a base cash payment of $25,000 per director, plus additional cash compensation of $4,000 for each committee membership and $2,000 for each committee chairmanship held by the director. In addition, each independent director was awarded $50,000 in equity compensation, to be paid in shares of common stock. The equity awards are subject to a vesting schedule whereby one-third vests immediately, one-third vests one year from the grant date, and the remaining one-third vests two years from the grant date. The Board approved this compensation on April 2, 2025.

During the years ended December 31, 2025 and 2024, the Company paid or accrued $234,500 and $312,500 in management fees to its directors. Included in accounts payable at December 31, 2025 is $278,600 (2024 - $412,500) due to related parties.

NOTE 20 – SUBSEQUENT EVENTS

The Company has evaluated events from December 31, 2025, through the date the consolidated financial statements were issued. No subsequent events were identified that required adjustment to or disclosure in the consolidated financial statements.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2025. This evaluation was accomplished under the supervision and with the participation of our chief executive officer / principal executive officer and our financial consultant who concluded that our disclosure controls and procedures are effective to ensure that all material information required to be filed in the Annual Report on Form 10-K has been made known to them at a reasonable assurance level. The evaluation did not include a 404A assessment. For purposes of this section, the term disclosure controls and procedures mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seg.) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure, controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, in accordance with generally accepted accounting principles in the United States. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013 Internal Control—Integrated Framework) at December 31, 2025. Based on its evaluation, our management concluded that, as of December 31, 2025, our internal controls over financial reporting were effective.

This Annual Report on Form 10-K does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to the attestation by the Company’s registered public accounting firm pursuant to rules of the SEC that permit the Company to provide only management’s report in this Annual Report on Form 10-K.

Changes in Internal Controls over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

During the fiscal quarter ended December 31, 2025, none of our directors or officers informed us of the adoption, modification or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table lists the names and ages of the executive officers and directors of the Company as of December 31, 2025. The directors will continue to serve until the next annual shareholders meeting, or until their successors are elected and qualified. All executive officers serve at the discretion of the Board.

Name	Age	Position(s)	Position Held Since
Rohan Hazelton	52	Class I Director<br><br>President<br><br>Chief Executive Officer	June 2024<br><br>June 2024<br><br>June 2024
Alonso Sotomayor	41	Chief Financial Officer	July 2024
David Keough	62	Chief Operating Officer	June 2025
Oscar M. Cabrera	62	Class I Director	June 2025
Dr. Quinton Hennigh	58	Class I Director	February 2024
Brent Omland	44	Class I Director	August 2024
Dale G. Petrini	70	Class I Director	December 2016
Maria Virginia Anzola	52	Class I Director	January 2025
Phillip A. Rose	36	Class II Director	May 2015

Business Experience of Directors and Executive Officers

Oscar M. Cabrera

Mr. Cabrera has over 25 years of experience as an equity analyst, covering the metals and mining industry for bulge bracket investment banks and Canadian financial institutions, including Goldman Sachs, Merrill Lynch Canada and CIBC World Markets. He obtained recognition for industry thought leadership, fundamental commodity analysis and strong industry relationships, which has led to advisory roles for public and private mining companies, including Nexa Resources S.A. and Karst Capital Partners. He also participated in the vetting of and advising on primary and secondary offerings in Canada, the U.S. and Europe. Mr. Cabrera recently served as an independent director and Chair of Sierra Metals Inc. He holds an MBA from York University, an M Eng. in Structural Engineering from the University of Toronto and a B. Sc in Civil Engineering from the Instituto Tecnológico y de Estudios Superiores de Monterrey. Mr. Cabrera is a Canadian Citizen, originally from Mexico. The Company believes that Mr. Cabrera’s experience in the mining sector with a history of industry involvement, familiarity with the capital markets and fluency in Spanish and English qualify him to serve as a member of the Board.

Five-Year Employment History:

June 2025 to Present – Director (Chair) of the Company
August 2024 to Present – Advisor, Karst Capital Partners Ltd.
May 2021 to Present - Advisor, Oscar Cabrera Consulting Inc.
October 2021 to June 2024 - Director, Sierra Metals Inc.

Dr. Quinton Hennigh

Dr. Hennigh is an exploration geologist with 33 years’ experience, predominantly in the gold industry. He holds a M.Sc. and Ph.D. in geology and geochemistry from the Colorado School of Mines. Early in his career, he explored for gold for major mining companies including Homestake Mining Company, Newcrest Mining Ltd., and Newmont Mining Corporation. Beginning in 2007, Dr. Hennigh shifted focus to the junior mining space where he has worked for several successful gold explorers, notably Gold Canyon Resources where he led the discovery of the 5.2 million ounce Springpole gold deposit, Ontario. Currently, Dr. Hennigh is CEO of private silver miner, San Cristobal Mining. The Company believes that Mr. Hennigh’s experience in discovery and development of mineral resource projects in the Americas qualify him to serve as a member of the Board.

Five-Year Employment History:

January 2022 to Present – CEO, San Cristobal Mining.
September 2021 to January 2025 – Technical and Geologic Director, Crescat Capital Ltd.
November 2011 to August 2021 – Executive Chairman, Novo Resources Corp.

Brent Omland

Mr. Omland is a mining executive with 25 years of experience in the mining and metals trading industry. Mr. Omland is a graduate of the University of British Columbia and a Canadian CPA. Mr. Omland has also worked in finance roles for Teck Resources and in senior finance roles for an integrated lead mining and smelting group based in Australia (Ivernia/Enirgi Metals). Mr. Omland is CEO of Ocean Partners Holdings Limited, an international base and precious metals trading firm. Mr. Omland also serves on the Board of Directors for Cygnus Metals Limited, Scottie Resources Inc., Galantas Gold Corporation and Nicola Mining Inc., all listed on the TSX-V as well as Canadian Copper Inc. on the CSE. The Company believes that Mr. Omland’s lifetime of involvement in the mining industry from production to financing to trading qualifies him to continue to serve as a member of the Board.

Five-Year Employment History:

January 2024 to Present: Chief Executive Officer, Ocean Partners Holdings Limited
2021 to December 2023: Co-Chief Executive Officer, Ocean Partners Holdings Limited

Dale G. Petrini

Mr. Petrini brings over 40 years of extensive international project and manufacturing experience to the Board. During his 40+ years with The Dow Chemical Company, Houston, Texas, Mr. Petrini was the engineering sponsor, advisor and led the project development for several international mega projects totally over $50 billion USD. In his latest role for Dow, he was responsible for the project development of mega project growth opportunities in Latin America. Previously, Mr. Petrini was responsible for Global Construction Management and Global Capital Procurement for Dow with offices and personnel located throughout the world. In addition, he was the Plant Manager for several production units and led the respective business management teams. Mr. Petrini earned his civil engineering degree from The University of Michigan and is a registered licensed professional engineer. He holds dual citizenship in the US and EU. The Company believes that Mr. Petrini’s more than 40 years of engineering experience with senior management oversight of operations, both domestically and internationally, qualifies him to serve as a member of the Board.

Five-Year Employment History:

January 2021 to Present – Corporate Director

Maria Virginia Anzola

Ms. Anzola brings over 27 years of extensive legal experience to the resource sector, with specific expertise in the mining industry and operations in Latin America. She is called to the bar in both Venezuela and Ontario, which gives her a strong foundation in both civil law and common law. Ms. Anzola holds a Master of Laws from The University of Michigan, Ann Arbor, and from Osgoode Hall Law School (York University), as well as a Certificate in Mining Law from Osgood Hall Law School. She is fluent in Spanish and English and conversational in French. She has served as General Counsel and Corporate Secretary for Ascendant Resources Inc (TSX:ASND), and Cerrado Gold Inc (TSXV:CERT). She previously held the position of Assistant General Counsel at Primero Mining Corp. and served as Senior Counsel at Hudbay Minerals Inc. Her career also includes experience in the oil and gas industry, further broadening her understanding of international resource operations and regulatory landscapes. She also serves on the Board of Directors of Cerrado Gold Inc. The Company believes that Ms. Anzola’s experience as a lawyer, her leadership experience in senior positions in mining companies, including experience with regulatory and compliance matters both in common law and civil law, as well as her fluency in Spanish and English qualify her to serve as a member of the Board.

Five-Year Employment History:

January 2021 to Present – Corporate Director
June 2021 to May 2025 - Founder, The FlipSide Plan Inc.

Phillip A. Rose

Mr. Rose is a Partner at Cross Tie Capital, Ltd, a Texas family investment office with a focus on alternative assets. Through this role, Mr. Rose serves in various operating roles of Cross Tie’s portfolio companies and Managing Partner of KMO Burger, LLC, a quick-serve restaurant holding company. He is also responsible for investment origination, asset management and disposition oversight of Cross Tie’s holdings. Mr. Rose has extensive experience in private investments, in a variety of asset classes and a broad array of investment structures. He is also a member of the firm’s investment committee. Mr. Rose is a graduate of Texas Christian University in Fort Worth, Texas. Mr. Rose is the appointee to the Board of Directors by Golden Post, LLC, the holder of the Series C Preferred Stock.

Five-Year Employment History:

2018 to Present – Partner, Cross Tie Capital, Ltd.

Rohan Hazelton

Mr. Hazelton has 23 years of leadership experience in the mining industry, with financing and operational expertise, and experience building and expanding mines and leading high-performance teams which are the foundations for world-class companies. Mr. Hazelton has significant operational experience in Mexico. Prior to joining the Company, Mr. Hazelton was Chief Executive Officer of NorZinc Ltd, a zinc-lead-silver developer, Chief Financial Officer of both Cerrado Gold (TSXV: CERT) and Ascendant Resources (TSX: ASND), and co-founded KORE Mining (TSXV: KORE), serving as KORE’s CEO. Prior to that, he worked at Goldcorp, and its predecessor Wheaton River Minerals, as one of its earliest employees and held roles of increasing leadership and responsibility throughout the organization including CFO Goldcorp Mexico and VP Strategy. Mr. Hazelton has served on the Board of Directors of NorZinc, Primero Mining, Terrane Metals and Gryphon Gold as well as several non-profits. He holds the Chartered Professional Accountant designation and graduated from Harvard University with Honors, with a Bachelor of Arts in Applied Math and Economics. Mr. Hazelton holds dual citizenship in Canada and the US. The Company believes that Mr. Hazelton’s experience in the mining sector with a history of operational efficiencies and fluency in Spanish and English qualify him to continue to serve as a member of the Board.

Five-Year Employment History:

June 2024 to Present – President & CEO of the Company
December 2023 to May 2024 – Mining Consultant, Self-employed
May 2021 to Nov 2023 – Chief Executive Officer, NorZinc Ltd.
January 2021 to May 2021 – Chief Financial Officer, Cerrado Gold Inc. and Ascendant Resources Inc.

Alonso Sotomayor

Alonso Sotomayor. Mr. Sotomayor is a Chartered Professional Accountant bilingual in English and Spanish with 18 years of combined experience in audit, finance, and accounting within the mining industry. He began his career in public accounting and held progressively senior roles, including Audit Manager, within the Toronto Mining Groups at McGovern Hurley, KPMG Canada, and Deloitte Canada, where he led audit engagements for numerous Canadian publicly listed mining companies. He later subsequently transitioned into senior finance and accounting leadership roles in the mining sector, serving as Corporate Controller at Ascendant Resources and Cerrado Gold, and most recently as Chief Financial Officer of Voyager Metals. Mr. Sotomayor holds a B.B.A. Bachelor of Business Administration in Management and Accounting from the University of Toronto.

Five-Year Employment History:

July 2024 to Present – CFO of the Company
April 2017 to July 2024 – Corporate Controller, Ascendant Resources Inc.
March 2020 to July 2024 – Corporate Controller, Cerrado Gold Inc.
January 2020 to May 2023 – Chief Financial Officer, Voyager Metals Inc. (Voyager acquired by Cerrado)

David Keough

Mr. Keough is an experienced mining executive with over 35 years of experience in the mining industry, spanning exploration, engineering, mine operations (open pit and underground), corporate development, contracting, consulting, project development, and construction. His extensive geographic and corporate experience includes operations across Latin America, North America, Europe, Africa, and the Asia-Pacific region. He has direct experience across a range of commodities, including precious metals, base metals, mineral sands, and lithium, and has held a number of executive director roles with both private and public companies in Australia and Canada. During his career, Mr. Keough worked with Placer Dome (Australia) and Minera Alumbrera (Argentina) and spent six years with Goldcorp Inc. in senior corporate development and operational roles across multiple jurisdictions, prior to his appointment as Executive Vice President and Chief Operating Officer of Crocodile Gold. He later served as Executive Director and Chief Operating Officer of Goldrock Inc., which successfully permitted the Lindero Gold Project in Argentina and was subsequently acquired by Fortuna Silver Mines Inc. Since January 2021, Mr. Keough has provided mining consultancy services through Vulcan’s Forge Capital Pty. Ltd. Mr. Keough holds a Bachelor of Science degree and a postgraduate diploma in Mineral Economics from James Cook University (Queensland). He is a Fellow of the Australian Institute of Mining and Metallurgy and an accredited Chartered Professional (Management) and holds Open Pit Mine Manager’s Certificates of Competency in Western Australia.

Five-Year Employment History:

January 2021 to Present – Mining Consultant, Vulcan’s Forge Capital Pty. Ltd.

Involvement in Certain Legal Proceedings

To the knowledge of the Company, none of the events specified in Regulation S-K, Item 401(f), has occurred during the past 10 years that are material to an evaluation of the ability or integrity of any director, executive officer, or person nominated to become a director of the Company.

Code of Ethics and Insider Trading Policy

The Company has a code of business conduct and ethics that applies to all employees, officers and directors. The code of business conduct and ethics includes the Company’s insider trading policies and procedures, which are reasonably designed to promote compliance with insider trading laws, rules and regulations.

Compliance with Section 16(a) of the Exchange Act

Section 16(a) of the Exchange Act requires the Company’s directors and NEOs, and anyone who beneficially owns ten percent (10%) or more shares of common stock of the Company, to file with the SEC initial reports of beneficial ownership and reports of changes in beneficial ownership of such shares. Persons required to file such reports also need to provide us with copies of all Section 16(a) forms they file.

Based solely upon a review of (i) copies of the Section 16(a) filings received during or with respect to 2025, and (ii) certain written representations of our officers and directors, we believe that all filings required to be made pursuant to Section 16(a) of the Exchange Act during and with respect to 2025 were filed in a timely manner, except as follows:

A Form 3 for Ms. Maria Virginia Anzola was filed late on January 28, 2025 to report Ms. Anzola’s appointment as a director on January 6, 2025.
A Form 3 for Mr. Oscar Cabrera was filed late on July 17, 2025 to report Mr. Cabrera’s appointment as a director on June 23, 2025.
A Form 4 for Mr. Rohan Hazelton was not filed to report the March 28, 2025 grant of 50,000 shares of common stock as 2024 bonus shares.
A Form 4 for Mr. Quinton Hennigh was not filed to report the March 28, 2025 grant of 54,945 restricted stock units (“RSUs”) for serving as a director, vesting one-third on the grant date and one-third on each of the first two anniversaries of the grant date.
A Form 4 for Mr. Phillip Rose was not filed to report the March 28, 2025 grant of 54,945 RSUs for serving as a director, vesting one-third on the grant date and one-third on each of the first two anniversaries of the grant date.
A Form 4 for Mr. Brent Omland was not filed to report the March 28, 2025 grant of 54,945 RSUs for serving as a director, vesting one-third on the grant date and one-third on each of the first two anniversaries of the grant date.
A Form 4 for Mr. Dale Petrini was not filed to report the March 28, 2025 grant of 54,945 RSUs for serving as a director, vesting one-third on the grant date and one-third on each of the first two anniversaries of the grant date.
A Form 3 for Mr. David Keough was filed late on March 4, 2026 to report Mr. Keough’s appointment as COO effective June 23, 2025.
A Form 4 for Mr. David Keough was not filed to report the August 12, 2025 grant of 450,000 RSUs, vesting one-third on each of the first three anniversaries of the grant date.

Audit Committee

The Company has a standing Audit Committee established in accordance with Section 3(a)(58)(A) of Exchange Act and is currently comprised of Mr. Phillip Rose (Chairman), Mr. Brent Omland and Mr. Dale Petrini., each of whom the Board has determined satisfies the applicable SEC and Nasdaq independence requirements for audit committee members. The Board has also determined that Mr. Rose is an “audit committee financial expert,” as defined by the applicable rules of the SEC and Nasdaq.

Family Relationships

There are no family relationships between any of the directors, executive officers, and/or persons nominated to become directors of the Company.

ITEM 11. EXECUTIVE COMPENSATION

The following Summary Compensation Table sets forth the compensation paid by the Company to its named executive officers (“NEOs”) for the fiscal years ended December 31, 2025 and 2024.

Summary of Compensation Table

Name and Principal Position	Year		Bonus<br><br>(1)			Option Awards (2)	Stock<br>Awards (3)		Total Compensation
Rohan Hazelton	2025		$	130,078	$	-	$	-	$	377,578
Chief Executive Officer (4)	2024		$	50,000	$	120,575(7)	$	925,000(8)	$	1,226,825
Alonso Sotomayor	2025		$	52,721	$	-	$	-	$	232,086
Chief Financial Officer (5)	2024		$	20,000	$	-	$	317,250(9)	$	409,333
David Keough	2025		$	-	$	-	$	540,000<br><br>(10)	$	751,000
Chief Operating Officer (6)	2024	-	$	-	$	-	$	-		-

All values are in US Dollars.

(1) The amounts reported represent bonuses earned in the applicable year but paid in the following year. Note that for fiscal year 2024, certain bonuses were awarded as a combination of cash and shares. The amounts included in this column represent the cash portion only.

(2) The amounts reported represent the aggregate grant date fair value of stock options subject to time vesting computed in accordance with FASB ASC Topic 718. The assumptions used in the calculation of these amounts are included in the notes to our audited financial statements included in this Annual Report on Form 10-K.

(3) The amounts reported represent the aggregate grant date fair value of stock-based awards awarded in the applicable fiscal year, calculated in accordance with FASB ASC Topic 718. The assumptions used in the calculation of these amounts are included in the notes to our audited financial statements included in this Annual Report on Form 10-K.

(4) Mr. Hazelton was appointed as President & Chief Executive Officer effective June 3, 2024.

(5) Mr. Sotomayor was appointed as Chief Financial Officer effective July 22, 2024.

(6) Mr. Keough served as a consultant to the Company prior to his appointment as Chief Operating Officer on June 23, 2025.

(7) Comprised of 750,000 options granted to Mr. Hazelton in connection with his appointment as Chief Executive Officer.

(8) Comprised of (a) 500,000 RSUs granted to Mr. Hazelton in connection with his appointment as Chief Executive Officer; and (b) 50,000 bonus shares granted to Mr. Hazelton in April 2025 as a portion of his bonus earned for fiscal year 2024.

(9) Comprised of 225,000 RSUs granted to Mr. Sotomayor in connection with his appointment as Chief Financial Officer.

(10) Comprised of 450,000 RSUs granted to Mr. Keough in connection with his appointment as Chief Operating Officer.

Outstanding Equity Awards at December 31, 2025

The following table presents information about equity awards held by each of the NEOs as of December 31, 2025.

	Option awards				Stock awards
Name<br><br>(a)	Number of<br>securities<br>underlying<br>unexercised<br>options (#)<br>exercisable<br><br>(b)	Number of<br>securities<br>underlying<br>unexercised<br>options (#)<br>unexercisable<br><br>(c)	Option<br>exercise<br>price<br>($)<br><br>(e)	Option<br>expiration<br>date<br><br>(f)	Common<br>stock<br>awards<br><br>not vested<br><br><br><br>(g)	Value of<br><br>common<br>stock<br>awards<br><br>not vested<br><br>(h)
Rohan Hazelton	250,000	500,000 (1)	$1.75	June 3, 2029	833,333 (2)	$ 1,666,667
Alonso Sotomayor	-	-	-	-	225,000 (3)	$ 315,000
David Keough	-	-	-	-	450,000 (4)	$ 630,000

(1) These options vest one-third per year on each of the first three anniversaries of the grant date of June 3, 2024.

(2) Comprised of (i) 500,000 RSUs of which one-third have vested and the remaining vest one-third on each of June 3, 2026 and June 3, 2027, and (ii) 500,000 deferred stock units (“DSUs”) that vest based on achievement of certain performance criteria as determined by the Company’s Compensation & Human Resources Committee (the “CHR Committee”).

(3) Comprised of 225,000 RSUs that, once issued, will vest in accordance with Mr. Sotomayor’s Offer of Continued Employment dated November 20, 2025 (described below), being one-third per year on each of the first three anniversaries of the original grant date of July 22, 2024.

(4) These RSUs vest one-third on each of the first three anniversaries of the grant date of August 12, 2025.

Employment Arrangements

Rohan Hazelton

On June 3, 2024, the Company entered into an employment agreement with Mr. Hazelton, which was amended on November 20, 2025 (the “Employment Agreement”). Pursuant to the Employment Agreement, Mr. Hazelton receives an annual base salary of $247,500 and is eligible to receive a discretionary annual bonus of up to 50% of his base salary, payable in the calendar year to which the bonus relates. In connection with the Employment Agreement, Mr. Hazelton was granted equity-based awards consisting of (i) options to purchase up to 750,000 shares of the Company’s common stock at an exercise price of $1.75 per share, (ii) 500,000 RSUs, and (iii) 500,000 DSUs. The options and RSUs vest in three equal installments, with one-third vesting on June 3, 2025, one-third vesting on June 3, 2026, and one-third vesting on June 3, 2027. The DSUs are subject to performance conditions established by the CHR Committee. The equity awards described above were originally granted in June 2024; however, were later cancelled and reissued to Mr. Hazelton on November 20, 2025. The vesting schedules remain consistent with the original grant dates and vesting terms.

Alonso Sotomayor

On July 22, 2024, the Company entered into an employment agreement with Mr. Sotomayor pursuant to which he receives an annual base salary of $162,500, plus an additional 10% of base salary in lieu of ordinary executive benefits while he works primarily from his Canadian office. Mr. Sotomayor is also eligible to receive a discretionary annual bonus of up to 40% of his base salary. On November 20, 2025, the Company and Mr. Sotomayor entered into a new employment arrangement pursuant to an Offer of Continued Employment with the Company, which replaced the prior employment agreement. In connection with this arrangement, the Company agreed to provide Mr. Sotomayor with a retention award (the “Retention Bonus”), subject to his continued active employment and compliance with applicable laws, including securities laws. The Retention Bonus is intended to be delivered in the form determined by the Board, in its discretion, of either (i) 225,000 RSUs or (ii) a number of RSUs having an aggregate value of C$470,000, calculated at the time of issuance. Issuance of the RSUs is subject to the lifting (or non‑applicability) of the Company’s Canadian cease trade order (the “CTO”). Provided Mr. Sotomayor remains actively employed at the time the CTO is lifted, the RSUs will be issued promptly following such lifting, in compliance with applicable laws. Subject to the issuance of the RSUs and continued active employment, the RSUs are intended to vest in accordance with the vesting schedule set forth in Mr. Sotomayor’s original employment agreement dated July 22, 2024: one‑third on July 22, 2025, one‑third on July 22, 2026, and one‑third on July 22, 2027.

David Keough

Mr. Keough initially provided services to the Company pursuant to a consulting arrangement through his consulting company, Vulcan’s Forge Capital Pty. Ltd. (“Vulcan”), which commenced in November 2024 and expired on December 31, 2025. During this period, Mr. Keough provided technical and operational consulting services to the Company. In June 2025, Mr. Keough was appointed Chief Operating Officer of the Company, and his consulting arrangement was amended in August 2025 to reflect his expanded role and responsibilities. In connection with this amendment, Mr. Keough was granted 450,000 RSUs under the Company’s equity incentive plans. The RSUs were granted on August 12, 2025, and vest in three equal installments: one‑third vesting on August 12, 2026, one-third on August 12, 2027, and one-third on August 12, 2028. On February 26, 2026, the Company entered into a consulting agreement with Vulcan that continued Mr. Keough’s services to the Company and was effective as of August 15, 2025. Under this agreement, Vulcan receives a monthly consulting fee of $20,000 and is eligible to receive an annual discretionary cash bonus of up to 50% of the consulting fees billed in the prior calendar year, as determined by the Compensation & Human Resources Committee. Mr. Keough is also eligible to receive equity‑based compensation under the Company’s equity incentive plans, with the type and amount of any such equity compensation to be determined in the discretion of the CHR Committee.

Retirement Benefits

There are no retirement benefit arrangements covering our NEOs.

Termination and Change in Control Benefits

Rohan Hazelton

Pursuant to the terms of the employment agreement entered into by Mr. Hazelton and the Company, upon a termination by the Company without cause or by Mr. Hazelton for good reason, within 12 months following a change of control, or upon Mr. Hazelton’s death or disability, Mr. Hazelton will be entitled to a lump sum severance payment equal to 24 months of his then current base salary plus his maximum annual discretionary bonus.

Alonso Sotomayor

Pursuant to the terms of the employment agreement entered into by Mr. Sotomayor and the Company, upon a termination by the Company without cause or by Mr. Sotomayor for good reason, Mr. Sotomayor’s death or disability, or the occurrence of a triggering event following a change in control, Mr. Sotomayor will be entitled to a lump sum severance payment equal to 12 months of his then current base salary.

David Keough

Pursuant to the terms of the agreement entered into by Mr. Keough through his consulting Company, Vulcan Forge Capital Pty. Ltd. (“Vulcan”), and the Company, upon a termination by the Company without cause or by Mr. Keough for good reason, Mr. Sotomayor’s death or disability, or the occurrence of a triggering event following a change in control, Mr. Keough will be entitled to a lump sum severance payment equal to 9 months of fees plus a prorated portion of the Consultant’s annual target bonus for such nine (9) month period.

Director Compensation

The following table shows the total compensation paid or accrued during the fiscal year ended December 31, 2025 to each of our non-employee directors who served as directors during 2025:

Name	Fees Earned or Paid in Cash ()	Total ($)
Oscar Cabrera	26,042	$ 26,042
Dale Petrini	43,000	$ 78,833
Phillip Rose	39,000	$ 74,833
Brent Omland	37,000	$ 72,833
Quinton Hennigh	26,250	$ 373,258
Maria Virginia Anzola	35,000	$ 35,000

All values are in US Dollars.

(1) The amounts reported represent the aggregate grant date fair value of stock options awarded in 2025, calculated in accordance with FASB ASC Topic 718. The assumptions used in calculating the grant date fair value are set forth in the notes to our audited financial statements included in our Annual Report. These amounts reflect the accounting cost for these stock options and do not reflect the actual economic value that may be realized by the director upon the vesting of the stock options, the exercise of the stock options or the sale of the common stock underlying such stock options. As of December 31, 2025, Mr. Hennigh held options to purchase 400,000 shares of common stock that vest in 25% increments on each of the first four anniversaries of the grant date of February 16, 2024.

In April 2025, the CHR Committee recommended and the Board approved compensation for non-employee directors of $25,000 cash annually, $4,000 cash annually for each committee a director serves on, $2,000 cash annually for each committee a director chairs, and equity awards valued at $50,000, subject to certain vesting requirements.

Grants of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information

The CHR Committee approves all equity awards granted to the Company’s NEOs on or before the applicable grant date. The Company does not maintain a practice of granting equity awards on a periodic or pre-established schedule. From time to time, however, the CHR Committee may approve equity awards in connection with new hires, promotions, retention, recognition, or other appropriate circumstances.

While the CHR Committee has discretion to approve equity awards to NEOs, it does not have a practice or policy of granting equity awards in anticipation of the release of material nonpublic information. The Company does not time the release of material nonpublic information in coordination with equity award grants in a manner intended to benefit NEOs or to affect the value of executive compensation.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth the amount and nature of beneficial ownership of each of the executive officers and directors of the Company and each person known to be a beneficial owner of more than five percent of the issued and outstanding shares of common stock of the Company as of April 1, 2026. The following table sets forth the information based on 29,315,726 (1) shares of the Company’s common stock issued and outstanding as of April 1, 2026.

Name and Address of Beneficial Owner
Rohan Hazelton	476,667	(2)	1.61	%
Alonso Sotomayor	—	(3)	*	%
David Keough	—	(4)	*	%
K.W. (“K.D.”) Diepholz<br><br>1303 Regency Court<br><br>Southlake, Texas 76092	3,230,700		11.02	%
Matthew K. Rose<br><br>1110 Post Oak Place<br>Westlake, Texas 76262	5,296,775	(5)	17.87	%
Golden Post Rail, LLC<br><br>1110 Post Oak Place<br>Westlake, Texas 76262	2,805,296	(6)	9.46	%
MKR 2022 Grantor Retained Annuity Trust<br><br>1110 Post Oak Place<br>Westlake, Texas 76262	1,755,000	(7)	5.92	%
Gareth Nichol<br><br>5 Greenwood Rd.<br>Greenwood Village, CO 80111	5,925,768	(8)	19.87	%
Dale G. Petrini	293,939	(9)	1.00	%
Quinton Hennigh	218,315	(10)	*	%
Phillip A. Rose	18,315		*	%
Brent Omland	18,315		*	%
Maria Virginia Anzola	—		*	%
Oscar M. Cabrera	—		*	%
All directors and executive officers as a group (9 persons)	1,025,551		3.44	%

(1) The table assumes 29,315,726 shares of common stock issued and outstanding as of April 1, 2026. For purposes of the table, we determined the number of shares of each class as beneficially owned by each person under Rule 13d-3(d)(1) of the Exchange Act. Under this rule, shares of voting stock not outstanding that are subject to issuance pursuant to options, warrants, rights or conversion privileges exercisable by a person within 60 days of the date indicated are deemed outstanding for the purpose of calculating the number and percentage beneficially owned by such person, but are not deemed outstanding for the purpose of calculating the number or percentage beneficially owned by any other person listed in the table. Except where otherwise noted, we believe that each individual or entity named has sole investment and voting power with respect to the shares beneficially owned by such person, subject to community property laws, where applicable. Beneficial ownership and voting power representing less than one percent of the outstanding shares of a class is denoted with an asterisk (*).

(2) Mr. Hazelton was appointed as our President and Chief Executive Officer on June 3, 2024. Includes 250,000 shares of common stock issuable upon exercise of vested stock options.

(3) Mr. Sotomayor was appointed as our Chief Financial Officer on July 22, 2024.

(4) Mr. Keough was appointed as our Chief Operating Officers on June 23, 2025.

(5) Based upon Schedule 13D/A filed by such beneficial owner with the SEC on October 22, 2024 and Form 4 filed on April 17, 2025. Includes shares of common stock beneficially owned by Golden Post Rail, LLC and MKR 2022 Grantor Retained Annuity Trust, and includes 329,881 shares of common stock issuable upon the conversion of derivative securities beneficially owned by Golden Post Rail, LLC. Mr. Rose holds sole voting and dispositive power with respect to 736,479 of the shares and shares voting and dispositive power with respect to 4,260,296 of the shares.

(6) Based upon Schedule 13D/A filed by such beneficial owner with the SEC on October 22, 2024 and Form 4 filed on April 17, 2025. Includes 329,881 shares of common stock issuable upon the conversion of derivative securities beneficially owned by such beneficial owner. Golden Post Rail, LLC shares voting and dispositive power with respect to all of the shares.

(7) Based upon Schedule 13D/A filed by such beneficial owner with the SEC on October 22, 2024 and Form 4 filed on April 17, 2025. Includes 329,881 shares of common stock issuable upon the conversion of derivative securities beneficially owned by Golden Post Rail, LLC. MKR 2022 Grantor Retained Annuity Trust holds sole voting and dispositive power with respect to all of the shares.

(8) Based upon Schedule 13G/A filed by such beneficial owner with the SEC on October 24, 2024. Includes 500,000 shares of common stock issuable upon the conversion of derivative securities beneficially owned by such beneficial owner. Mr. Nichol holds sole voting and dispositive power with respect to all of the shares.

(9) Includes 50,000 shares of common stock issuable upon the conversion of derivative securities beneficially owned by such beneficial owner.

(10) Consists of 200,000 shares of common stock issuable upon the exercise of vested stock options.

PREFERRED SHARES (SERIES C)

Preferred Series	Beneficial Owner	Address	Preferred<br>Shares	Percent<br>Ownership
Series C	Golden Post Rail LLC	1110 Post Oak Place<br>Westlake, Texas 76262	1,734,992	100.0%

PREFERRED SHARES (SERIES D)

Preferred Series	Beneficial Owner	Address	Preferred<br>Shares	Percent<br>Ownership
Series D	Dale Petrini	29 Bash Pl.<br>Houston, TX 77027	50,000	6.58%
Series D	Gareth Nichol	5 Greenwood Rd.<br>Greenwood Village, CO 80111	500,000	65.79%
Series D	Ronald Vail	6766 Pine Circle<br><br>Toledo, OH 43617	100,000	13.16%

PREFERRED SHARES (SERIES E)

Preferred Series	Beneficial Owner	Address	Preferred<br>Shares	Percent<br>Ownership
Series E	Golden Post Rail LLC	1110 Post Oak Place<br>Westlake, Texas 76262	1,552,795	100.0%

Equity Compensation Plan Information

The following table provides certain aggregate information with respect to all of our equity compensation plans in effect as of December 31, 2025:

Plan Category	Number of Securities to be Issued Upon Exercise of Options, Warrants or Rights	Weighted Average exercise Price of Outstanding Options, Warrants or Rights	Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans
Equity compensation plans approved by security holders (1)	3,592,142	N/A	407,858
Equity compensation plans not approved by security holders (2)	1,387,500	N/A	612,500
Total	4,979,642	N/A	1,020,358

(1) Includes awards outstanding under our 2024 Amended and Restated Equity Incentive Plan (the “2024 Plan”).

(2) Includes awards outstanding under our 2022 Stock Incentive Plan (the “2022 Plan”).

Material Features of the 2022 Plan

Effective Date; Duration of the Plan. The 2022 Plan became effective on September 30, 2022 and will remain in effect until September 30, 2032, unless earlier terminated by the Board.

Plan Administration. The 2022 Plan is administered by the CHR Committee. The CHR Committee has the authority to, among other things, interpret the 2022 Plan, determine who is granted awards under the 2022 Plan, determine the terms and conditions of each award, and take action as it determines to be necessary or advisable for the administration of the 2022 Plan.

Eligibility. The CHR Committee may grant awards to any employee or other individual that performs services for the Company and/or its subsidiaries.

Shares Available for Awards. The 2022 Plan authorizes the issuance of up to 2,000,000 shares of common stock.

If any outstanding award expires or is forfeited for any reason, the shares of common stock which were subject to the award will, unless the 2022 Plan has been terminated, become available for future awards under the 2022 Plan.

Types of Awards that May Be Granted. Subject to the limits in the 2022 Plan, the CHR Committee has the authority to set the size and type of award and any vesting or performance conditions. The types of awards that may be granted under the Plan are restricted stock. A restricted stock award is an award of actual shares of common stock which are subject to certain restrictions for a period of time determined by the CHR Committee. Restricted stock may be held by the Company in escrow or delivered to the participant pending the release of the restrictions. Participants who receive restricted stock awards generally have the rights and privileges of stockholders regarding the shares of restricted stock during the restricted period, including the right to vote and the right to receive dividends.

Adjustment Upon Changes in Stock. In the event of changes in the outstanding common stock or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the grant date of any award, awards granted under the 2022 Plan and any award agreements, the maximum number of shares of common stock subject to all awards will be equitably adjusted or substituted, as to the number, price or kind of a share of common stock or other consideration subject to such awards to the extent necessary to preserve the economic intent of the award.

Change in Control. Upon a change in control of the Company, any time periods, conditions or contingencies relating to the exercise or realization of, or lapse of restrictions under, any award will be automatically accelerated or waived.

Amendment or Termination of the Plan. The Board may suspend, amend, modify or terminate the 2022 Plan at any time; provided that, except as otherwise provided on the 2022 Plan, no such suspension, termination, amendment or modification of the 2022 Plan may adversely affect in any material way any award previously granted under the 2022 Plan without the applicable participant’s consent.

Amendment of Awards. The CHR Committee may amend the terms of any one or more awards. However, the CHR Committee may not amend an award that would impair a participant’s rights under the award without the participant’s consent.

U.S. Federal Income Tax Consequences of Awards. Unless a participant makes an election to accelerate the recognition of income to the grant date (as described below), the grant of restricted stock awards will not result in taxable income to the participant. When the restrictions lapse, the participant will recognize ordinary income on the excess of the fair market value of the shares on the vesting date over the amount paid for the shares, if any, and the Company will be entitled to a corresponding deduction. If the participant makes an election under Section 83(b) of the Code within thirty days after the grant date, the participant will recognize ordinary income as of the grant date equal to the fair market value of the shares on the grant date over the amount paid, if any, and the Company will be entitled to a corresponding deduction. Any future appreciation will be taxed at capital gains rates. However, if the shares are later forfeited, the participant will not be able to recover any taxes paid.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Other than the compensation arrangements for the Company’s NEOs, which are described elsewhere in this proxy statement, below are transactions since January 1, 2024 in which the Company has participated or will be a participant and:

the amounts involved exceeded or will exceed the lesser of (i) $120,000, and (ii) 1% of the average of the Company’s total assets at year-end for the last two completed fiscal years; and
any of the Company’s directors, executive officers or holders of more than 5% of our voting securities, or any member of the immediate family of, or person sharing the household with, the foregoing persons, had or will have a direct or indirect material interest.

During the year ended December 31, 2025, the Company paid or accrued $406,292 in fees to its directors.

On June 26, 2024, the Company entered into privately negotiated stock purchase agreements with one accredited investor, pursuant to which the Company issued and sold to the investor in a private placement an aggregate of 1,552,795 shares of Series E Preferred Stock, which is convertible into shares of the Company’s common stock on a 1:1 ratio. The Company received aggregate net proceeds from the private placement of approximately $2.5 million. The following table summarizes the shares of the Company’s common stock that holders of more than 5% of its voting securities purchased in the private placement:

Name	Number of Shares of Common Stock Purchased	Purchase Price Paid
Golden Post Rail, LLC	1,552,795	$2,500,000

On October 18, 2024, the Company entered into privately negotiated stock purchase agreements with several accredited investors, pursuant to which the Company issued and sold to the investors in a private placement an aggregate of 5,769,231 shares of common stock. The Company received aggregate net proceeds from the private placement of approximately $6.0 million. The following table summarizes the shares of the Company’s common stock that holders of more than 5% of its voting securities purchased in the private placement:

Name	Number of Shares of Common Stock Purchased	Purchase Price Paid
Golden Post Rail, LLC	1,495,000	$1,554,800
Gareth Nichol	2,778,846	$2,900,000

Review, Approval, or Ratification of Transactions with Related Persons

The Board reviews matters involving potential conflicts of interest and reviews and approves all related party transactions, including transactions required to be disclosed under applicable federal securities laws. The Company has not adopted formal written procedures governing the review of potential conflicts of interest and instead evaluates each transaction based on its specific facts and circumstances.

When a potential related party transaction is presented, the Board expects to be fully informed of the material facts regarding the transaction and the interests of the related party and to deliberate on the matter outside the presence of the related party. The Company expects that the Board would approve only those related party transactions that are in the best interests of the Company and fair to the Company and would seek to ensure that such transactions are on terms no less favorable than those that could be obtained from an unaffiliated third party.

Board of Directors Independence

The Board has determined that the following directors are independent within the meaning of the applicable Nasdaq rules: Mr. Cabrera, Mr. Hennigh, Mr. Omland, Mr. Rose, Mr. Petrini and Ms. Anzola.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

Our independent registered public accounting firm is Davidson & Company LLP, Vancouver, BC, Auditor Firm ID: 731.

The following table summarizes the fees paid by us to our independent registered public accounting firm during fiscal years 2025 and 2024.

Type of Service and Fee	2025	2024
Audit Fees (1)	$245,666	$222,684
Audit Related Fees	-	-
Tax Fees	-	-
All Other Fees	-	-
Total Fees	-	-

(1) Audit fees represent fees for professional services provided in connection with the audit of our financial statements and internal control over financial reporting, the review of our quarterly financial statements, and audit services provided in connection with other statutory or regulatory filings.

Pre-Approval Policies and Procedures

The Audit Committee has policies and procedures requiring pre-approval by the Audit Committee of the engagement of the Company’s independent auditor to perform audit services, as well as permissible non-audit services.

AUDIT SERVICES: The terms and fees for the Company’s annual audit are subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit, required quarterly reviews, subsidiary audits and other procedures required to be performed by the auditor to form an opinion on our financial statements, and such other procedures including information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control. Other audit services may also include statutory audits or financial audits for subsidiaries and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or used in connection with securities offerings.

AUDIT RELATED SERVICES: Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of our financial statements or that are traditionally performed by the independent auditor. Audit-related services are subject to the specific pre-approval of the Audit Committee. Audit-related services include, among others, due diligence services relating to potential business acquisitions/dispositions; accounting consultations relating to accounting, financial reporting or disclosure matters not classified as audit services; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; financial audits of employee benefit plans; agreed-upon or expanded

audit procedures relating to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements.

TAX SERVICES: Tax services are subject to the specific pre-approval of the Audit Committee. The Audit Committee will not approve the retention of the independent auditor in connection with a transaction the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported by the Internal Revenue Code and related regulations.

ALL OTHER SERVICES: Pre-approval by the Audit Committee is required for those permissible non-audit services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence.

PART IV

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The exhibits listed in the accompanying exhibit index are filed (except as otherwise indicated) as part of this report.

3.1	Amended and Restated Certificate of Incorporation of the Company, filed with the Secretary of State of the State of Delaware on November 28, 2012 (incorporated by reference to Form 8-K filed with the SEC on April 30, 2015, Exhibit 3.5, File No. 000-30371)
3.2	Amended and Restated Bylaws of the Company (incorporated by reference to Form 8-K filed with the SEC on April 30, 2015, Exhibit 3.7, File No. 000-30371)
3.3	Certificate of Amendment of DynaResource, Inc., filed with the Secretary of State of the State of Delaware on June 29, 2015 (incorporated by reference to Form 8-K filed with the SEC on July 2, 2015, Exhibit 3.1, File No. 000-30371).
3.4	Certificate of Designations of the Powers, Preferences and relative, participating, optional and Other Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions thereof of Series C Senior Convertible Preferred Stock, filed with the Secretary of State of the State of Delaware on June 29, 2015 (incorporated by reference to Form 8-K filed with the SEC on July 2, 2015, Exhibit 3.2. File No. 000-30371).
3.5	First Amendment to the Amended and Restated Bylaws of the Company dated June 29, 2015 (incorporated by reference to Form 8-K filed with the SEC on December 23, 2015, Exhibit 3.1, File No. 000-30371).
3.6	Certificate of Amendment to the Certificate of Incorporation of the Company as filed with the Delaware Secretary of State on July 15, 2020 (incorporated by reference to Form 8-K filed with the SEC on July 16, 2020, Exhibit 3.1, File No. 000-30371).
3.7	Certificate of Increase of Series C Senior Convertible Preferred Stock, filed with the Secretary of State of the State of Delaware on May 13, 2020 (incorporated by reference to Form 8-K filed with the SEC on May 20, 2020, Exhibit 3.1, File No. 000-30371).
3.8	Certificate of Amendment to Certificate of Designations of the Powers, Preferences and relative, participating, optional and Other Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions thereof of Series C Senior Convertible Preferred Stock (incorporated by reference to Form 8-K filed with the SEC on July 16, 2020, Exhibit 3.2, File No. 000-30371).
3.9	Certificate of Designations of the Powers, Preferences and Relative, Participating, Optional and Other Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions thereof of Series D Senior Convertible Preferred Stock, filed with the Secretary of State of the State of Delaware on May 13, 2020 (incorporated by reference to Form 8-K filed with the SEC on May 20, 2020, Exhibit 3.2. File No. 000-30371).
3.10	Certificate of Amendment of DynaResource, Inc. (incorporated by reference to the Definitive Proxy Statement on Schedule 14A filed with the SEC on June 12, 2023, Appendix I, File No. 000-30371).
3.11	Certificate of Designations of the Powers, Preferences and Relative, Participating, Optional and Other Special Rights of Preferred Stock and Qualifications, Limitations and Restrictions Thereof of Series E Convertible Preferred Stock (incorporated by reference to Form 8-K filed with the SEC on June 28, 2024, Exhibit 3.1, File No. 000-30371).
3.12	Second Amendment to Amended and Restated Bylaws of DynaResource, Inc. (incorporated by reference to Form 10-Q filed with the SEC on May 20, 2025, Exhibit 3.1, File No. 000-30371).
4.1*	Description of Capital Stock
4.2	Common Stock Purchase Warrant issued by the Company in connection with June 2015 financing (incorporated by reference to Form 8-K filed with the SEC on July 2, 2015, Exhibit 4.1, File No. 000-30371)
4.3	Registration Rights Agreement (incorporated by reference to Form 8-K filed with the SEC on July 2, 2015, Exhibit 4.2. File No. 000-30371).
4.4	Common Stock Purchase Warrant with Golden Post Rail, LLC (incorporated by reference to Form 8-K filed with the SEC on May 20, 2020, Exhibit 4.3, File No. 000-30371)
4.5	Common Stock Purchase Warrant with other Purchasers (incorporated by reference to Form 8-K filed with the SEC on May 20, 2020, Exhibit 4.4, File No. 000-30371)
4.6	Amendment to the June 30, 2015 Warrant (incorporated by reference to Form 8-K filed with the SEC on May 20, 2020, Exhibit 4.5, File No. 000-30371)
4.7	Amended and Restated Registration Rights Agreement (incorporated by reference to Form 8-K filed with the SEC on May 20, 2020, Exhibit 4.7, File No. 000-30371)
10.1	Securities Purchase Agreement, dated as of May 6, 2015, between the Company and Certain Purchasers (incorporated by reference to Form 8-K filed with the SEC on May 8, 2015, Exhibit 10.1, File No. 000-30371)
---	---

10.2	Gold Concentrate Purchase Agreement dated 1 February 2021 with reference OPUK.SP90731, by and between MK Metal Trading Mexico SA de CV and Mineras de DynaResource SA de CV (incorporated by reference to Form 10-K filed with the SEC on April 16, 2024, Exhibit 10.10, File No. 000-30371)
10.3	DynaResource, Inc. 2022 Stock Incentive Plan (incorporated by reference to Form 10-K/A filed with the SEC on April 30, 2025, Exhibit 10.11, File No. 000-30371).
10.4	Amendment Agreement dated as of August 2, 2023 by and between DynaResource Inc. and MK Metal Trading México de CV (incorporated by reference to Form 8-K dated August 10, 2023).
10.5	Form of Non-Qualified Stock Option Agreement (incorporated by reference to Form 8-K filed with the SEC on February 22, 2024, Exhibit 10.2 File No. 000-30371)
10.6	Employment Agreement dated as of June 3, 2024 by and between the Company and Rohan Hazelton (incorporated by reference to Form 8-K filed with the SEC on June 7, 2024, Exhibit 10.2 File No. 000-30371).
10.7	Revised and Amended Agreement Concerning the Business Relationship Dated as of June 3, 2024 by and between K.D. Diepholz and the Company (incorporated by reference to Form 8-K filed with the SEC on June 7, 2024, Exhibit 10.3 File No. 000-30371).
10.8	Employment Agreement dated as of July 22, 2024 by and between the Company and Alonso Sotomayor (incorporated by reference to Form 8-K filed with the SEC on July 22, 2024, Exhibit 10.1, File No. 000-30371).
10.9	DynaResource, Inc. 2024 Amended and Restated Equity Incentive Plan (incorporated by reference to Form 8-K filed with the SEC on January 10, 2025, Exhibit 10.1 File No. 000-30371).
10.10	Amendment Agreement #5 dated October 21, 2024 between DynaResource de Mexico S.A. de C.V. and MK Metals Trading Mexico S.A. de C.V. (incorporated by reference to Form 8-K filed with the SEC on October 25, 2024, Exhibit 10.1 File No. 000-30371).
10.11	Amendment Agreement, dated as of August 5, 2025, by and among DynaResource de Mexico, SA de CV, MK Metal Trading Mexico SA de CV, and Ocean Partners UK Limited (portions of this exhibit (indicated by asterisks) have been omitted pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934) (incorporated by reference to Form 10-Q filed with the SEC on November 14, 2025, Exhibit 10.1 File No. 000-30371).
10.12	Concentrate Credit Facility, dated August 22, 2025, by and between DynaResource de Mexico, SA de CV and Ocean Partners UK Limited (incorporated by reference to Form 10-Q filed with the SEC on November 14, 2025, Exhibit 10.2 File No. 000-30371).
10.13	Parent Company Guarantee, dated August 22, 2025, by and between DynaResource, Inc., DynaResource de Mexico, SA de CV and Ocean Partners UK Limited (incorporated by reference to Form 10-Q filed with the SEC on November 14, 2025, Exhibit 10.3 File No. 000-30371).
10.14	First Amendment to Employment Agreement - Rohan Hazelton (incorporated by reference to Form 8-K filed with the SEC on November 26, 2025, Exhibit 10.1 File No. 000-30371).
10.15	Offer of Continued Employment - Alonso Sotomayor (incorporated by reference to Form 8-K filed with the SEC on November 26, 2025, Exhibit 10.2 File No. 000-30371).
10.16	Consulting Agreement dated February 26, 2026 by and between DynaResource, Inc. and Vulcan’s Forge Capital Pty. Ltd. (incorporation by reference to Form 8-K filed with the SEC on March 4, 2026, Exhibit 10.1, File No. 000-30371).
19.1	Code of Ethics and Business Conduct (which includes the Insider Trading Policy) incorporated by reference to Form 10-K/A filed with the SEC on April 30, 2025, Exhibit 19.1, File No. 000-30371).
21.1*	List of subsidiaries.
23.1*	Consent of P&E Mining Consultants Inc.
23.2*	Consent of D.E.N.M Engineering Ltd.
96.1*	Technical Report Summary for the San José de Gracia Gold Project effective March 24, 2025.
31.1 *	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 *	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 *	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 are filed herewith, formatted in Inline XBRL (Extensible Business Reporting Language): (i) the Audited Consolidated Statements of Operations and Other Comprehensive (Loss) for the years ended December 31, 2025 and 2024, (ii) the Audited Consolidated Balance Sheets as of December 31, 2025 and 2024, (iii) the Audited Consolidated Statement of Changes in Shareholders’ Equity for the years ended December 31, 2025 and 2024, (iv) the Audited Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024, and (v) the Notes to the Audited Consolidated Financial Statements
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith.

ITEM 16. 10K SUMMARY

Not Applicable.

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	DynaResource, Inc.
Date: April 1, 2026	By:	s/ Rohan Hazelton
		Rohan Hazelton,
		Chief Executive Officer
Date: April 1, 2026	By:	s/ Alonso Sotomayor
---	---	---
		Alonso Sotomator,
		Chief Financial Officer
		(principal financial and accounting officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. The signature for each undersigned Registrant shall be deemed to relate only to matters having reference to such Registrant and any subsidiaries thereof.

/s/ Oscar Cabrera	/s/ Rohan Hazelton
Oscar Cabrera, Chairman	Rohan Hazelton
/s/ Dr. Quinton Hennigh	/s/ Dale G. Petrini
Dr. Quinton Hennigh	Dale G. Petrini
/s/ Brent Omland	/s/ Phillip Rose
Brent Omland	Phillip Rose
/s/ Maria Virginia Anzola
Maria Virginia Anzola
April 1, 2026
Dated

EX-4.1

EXHIBIT 4.1

DESCRIPTION OF CAPITAL STOCK

General

The following description sets forth certain material terms and provisions of our securities that are registered under Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”). This description also summarizes relevant provisions of the Delaware General Corporation Law (the “DGCL”) applicable to such securities. The following description is a summary and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, the applicable provisions of the DGCL and our Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”) and our Amended and Restated Bylaws, as amended (the “Bylaws”), each of which is incorporated by reference exhibits to our Annual Report on Form 10-K to which this Exhibit 4.1 is filed as an exhibit. We encourage you to read the Certificate of Incorporation and Bylaws and the applicable provisions of the DGCL for additional information.

Authorized Capital Stock

Our authorized capital stock consists of 40,000,00 shares of common stock, par value $0.01 per share, and 20,001,000 shares of preferred stock, par value $0.0001 per share.

Common Stock

Voting Rights. The holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. Holders of shares of our common stock do not have cumulative voting rights.

Dividends. Subject to the preferences and other rights of any class or series of preferred stock then outstanding, our Board of Directors may cause dividends to be paid to the holders of shares of common stock out of funds legally available for the payment of dividends by declaring an amount per share as a dividend. When and as dividends are declared, whether payable in cash, in property or in shares of our stock, the holders of common stock shall be entitled to share equally, share for share, in such dividends.

Liquidation Rights. Subject to the preferences and other rights of any class or series of preferred stock then outstanding, in the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, the holders of common stock shall be entitled, to share, ratably according to the number of shares of common stock held by them, in all of our remaining assets available for distribution to its shareholders.

Fully Paid. The issued and outstanding shares of our common stock are fully paid and non-assessable. Any additional shares of common stock that we may issue in the future will also be fully paid and non-assessable.

Absence of Other Rights. The holders of common stock have no preferences or rights of conversion, exchange, pre-emption or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. Stockholders do not have the right of cumulative voting in the election of directors.

Preferred Stock

Our Certificate of Incorporation authorizes our Board to designate and issue from time to time one or more series of preferred stock without stockholder approval. Our Board may fix and determine the preferences, limitations and relative rights of each series of preferred stock. The rights of the holders of our common stock are subject to the rights and preferences of any series of preferred stock currently outstanding or that we may issue.

Certain Provisions of Delaware Law, Our Certificate of Incorporation and Bylaws

Certificate of Incorporation and Bylaws

Certain provisions in our Certificate of Incorporation and Bylaws summarized below may be deemed to have an anti-takeover effect and may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders. These provisions are intended to discourage certain types of transactions that may involve an actual or threatened change of control.

Blank Check preferred stock. Our Certificate of Incorporation permits us to issue, without any further vote or action by the stockholders, up to 20,001,000 shares of preferred stock in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting powers (if any) of the shares of the series, and the preferences and

relative, participating, optional and other special rights, if any, and any qualifications, limitations or restrictions, of the shares of such series. The ability to issue such preferred stock could discourage potential acquisition proposals and could delay or prevent a change in control.

Special Stockholder Meetings. Under our Bylaws, only our President or our Board acting pursuant to a resolution opted by a majority of the members of our Board, are able to call a special meeting of stockholders.

Requirements for Advance Notification of Stockholder Nominations and Proposals. Under our Bylaws, stockholders of record are able to nominate persons for election to our Board or bring other business constituting a proper matter for stockholder action only by providing proper notice to our secretary. Proper notice must be timely, generally between 90 and 120 days prior to the first anniversary of the prior year’s annual meeting, and must include, among other information, the name and address of the stockholder giving the notice, certain information regarding such stockholder’s beneficial ownership of our securities and any derivative instruments or other agreements the value of or return on which is based on or linked to the value of or return on our securities as of the date of the notice, certain information relating to each person whom such stockholder proposes to nominate for election as a director, including any arrangements or understandings between the nominating stockholder and the nominee, in the case of a director nomination, a representation that such stockholder is a holder of record of our common stock as of the date of the notice and a brief description of any other business such stockholder proposes to bring before the meeting and the reason for conducting such business, and, if such stockholder intends to solicit proxies, a representation to that effect.

Delaware Takeover Statute

Section 203 of the Delaware General Corporation Law, subject to certain exceptions, prohibits a Delaware corporation from engaging in any “business combination” (as defined below) with any “interested stockholder” (as defined below) for a period of three years following the date that such stockholder became an interested stockholder, unless: (1) prior to such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; (2) on consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned (x) by persons who are directors and also officers and (y) by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or (3) on or subsequent to such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.

Section 203 of the Delaware General Corporation Law defines “business combination” to include: (1) any merger or consolidation involving the corporation and the interested stockholder; (2) any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder; (3) subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; (4) any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or (5) the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation. In general, Section 203 defines an “interested stockholder” as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by such entity or person.

Listing

Our common stock is traded on the OTCQX under the symbol “DYNR.”

Transfer Agent and Registrar.

The Transfer Agent and Registrar for our common stock is Broadridge Corporate Issuer Solutions.

EX-21.1

	DynaResource, Inc.			Exhibit 21.1
	List of Subsidiaries
SUBSIDIARY	JURISDICTION OF FORMATION
DynaResource de México, S.A. de C.V.	Mazatlan, Sinaloa, México
Ownership:
DynaMéxico Shareholder	Fixed Capital	Variable Capital	Total Capital Shares	Total Ownership
	Series “A” Shares	Series “B” Shares	(Series A and B)	Percentage
DynaResource, Inc.	99	300	399	99.75%
DynaMexico US Holding, LLC	1	-	1	0.25%
Total Capital Issued	100	300	400	100%
DynaMexico US Holding, LLC	Delaware
Ownership:
DynaResource, Inc. 100%
Mineras de DynaResource, S.A. de C.V.	Mazatlan, Sinaloa, México
Ownership:
DynaResource, Inc. 100%
DynaResource Operaciones de San Jose de Gracia, S.A. de C.V.	Mazatlan, Sinaloa, México
Ownership:
DynaResource, Inc. 100%
Minera de Alica, S.A. de C.V.	Mazatlan, Sinaloa, México
Ownership:
DynaResource, Inc. 100%

EX-23.1

Consent of Qualified Person

The undersigned consents, on behalf of P&E Mining Consultants Inc., to:

The filing of the Technical Report Summary, effective March 24, 2025, with respect to the San José de Gracia Project (the “TRS”) as an exhibit to the Annual Report on Form 10-K dated April 1, 2026 for DynaResource, Inc. for the year ended December 31, 2025 (the “Report”);
The use of and references to the undersigned’s name, including the undersigned’s status as an expert or “Qualified Person” (as defined in Subpart 1300 of Regulation S-K promulgated by the U.S. Securities and Exchange Commission) in connection with Sections 1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 1.9, 1.10, 1.11, 1.13, 1.14, 1.15, 1.16, 1.17,, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22.1, 22.2, 22.3, 22.4, 22.6, 22.7, 22.8, 22.10, 22.11, 22.12, 22.13, 22.14, 22.15.1.1, 22.15.1.3, 22.15.1.4, 22.15.1.5, 22.15.2.1, 22.15.2.2, 22.15.2.3, 22.15.2.5, 23.1, 23.2, 23.3, 23.4, and 24 of the TRS and corresponding disclosures in the Report; and
Any extracts or summaries of the TRS included or incorporated by reference in the Report, and any information derived, summarized, quoted or referenced from the TRS, or portions thereof, that was prepared by the undersigned, that the undersigned supervised the preparation of and/or that was reviewed and approved by the undersigned, that is included or incorporated by reference in the Report.

Dated:	April 1, 2026
	{SIGNED AND SEALED}<br><br>[Eugene Puritch]
Name:	Eugene Puritch, P.Eng., FEC, CET
Title:	President of P&E Mining Consultants Inc.

EX-23.2

Consent of Qualified Person

The undersigned consents, on behalf of D.E.N.M. Engineering Ltd., to:

The filing of the Technical Report Summary, effective March 24, 2025, with respect to the San José de Gracia Project (the “TRS”) as an exhibit to the Annual Report on Form 10-K dated April 1, 2026 for DynaResource, Inc. for the year ended December 31, 2025 (the “Report”);
The use of and references to the undersigned’s name, including the undersigned’s status as an expert or “Qualified Person” (as defined in Subpart 1300 of Regulation S-K promulgated by the U.S. Securities and Exchange Commission) in connection with Sections 1.8, 1.12, 10, 14, 22.5, 22.9, 22.15.1.2, 22.15.2.4, 23.5, and 24 of the TRS and corresponding disclosures in the Report; and
Any extracts or summaries of the TRS included or incorporated by reference in the Report, and any information derived, summarized, quoted or referenced from the TRS, or portions thereof, that was prepared by the undersigned, that the undersigned supervised the preparation of and/or that was reviewed and approved by the undersigned, that is included or incorporated by reference in the Report.

Dated:	April 1, 2026
	{SIGNED AND SEALED}<br><br>[David Salari]
Name:	David Salari, P.Eng.
Title:	President of D.E.N.M Engineering Ltd.

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, ROHAN HAZELTON, certify that:

I have reviewed this report on Form 10-K of DYNARESOURCE, INC.;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and,
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 1, 2026

/s/ Rohan Hazelton
Rohan Hazelton
Chief Executive Officer
(principal executive officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT OT SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, ALONSO SOTOMAYOR, certify that:

I have reviewed this report on Form 10-K of DYNARESOURCE, INC.;
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and,
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 1, 2026

/s/ Alonso Sotomayor
Alonso Sotomayor
Chief Financial Officer
(principal financial and accounting officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION UNDER

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Report of DynaResource, Inc. on Form 10-K for the period ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Rohan Hazelton
Rohan Hazelton
Chief Executive Officer<br><br>(principal executive officer)<br><br>Dated: April 1, 2026
/s/ Alonso Sotomayor
Alonso Sotomayor
Chief Financial Officer<br><br>(principal financial and accounting officer)<br><br>Dated: April 1, 2026

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

EX-96.1

SAN JOSÉ DE GRACIA GOLD PROJECT

S-K 1300 TECHNICAL SUMMARY,

SINALOA, MEXICO

Effective Date: March 24, 2025

Prepared for:

DynaResource Inc.

222 West Las Colinas Boulevard

Suite 1910, North Tower

Irving, Texas, USA 75039

Prepared by:

P&E Mining Consultants Inc.

2 County Court Blvd, Suite 400,

Brampton, Ontario L6W 3W8 Canada

Report 474

Date and Signature Page

This technical report, titled "San José de Gracia Project S-K 1300 Technical Report Summary, Sinaloa, Mexico, is current as of March 24, 2025, and has been prepared by:

QP Name or Company	Responsible for the Following Sections	Signature	Date
P&E Mining Consultants Inc.	1.1, 1.2, 1.3, 1.4, 1.5, 1.6, 1.7, 1.9, 1.10, 1.11, 1.13, 1.14, 1.15, 1.16, 1.17, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, 17, 18, 19, 20, 21, 22.1, 22.2, 22.3, 22.4, 22.6, 22.7, 22.8, 22.10, 22.11, 22.12, 22.13, 22.14, 22.15.1.1, 22.15.1.3, 22.15.1.4, 22.15.1.5, 22.15.2.1, 22.15.2.2, 22.15.2.3, 22.15.2.5, 23.1, 23.2, 23.3, 23.4, 24	“Signed”	May 19, 2025
D.E.N.M. Engineering Ltd.	1.8, 1.12, 10, 14, 22.5, 22.9, 22.15.1.2, 22.15.2.4, 23.5, 24	“Signed”	May 19, 2025

P&E Mining Consultants Inc., Report No. 474 Page 2 of 163

DynaResource Inc. San José de Gracia Gold Project, Sinaloa State, Mexico

Table of Contents

1.0	Executive Summary	1
1.1	Introduction	1
1.2	Project Setting	1
1.3	Property Description and Location	2
1.4	History	3
1.5	Geology and Mineralization	4
1.6	Exploration, Drilling and Sampling	5
1.7	Data Verification	6
1.8	Mineral Processing and Metallurgical Testing	6
1.8.1	Hazen Research, Inc. Metallurgical Testwork 1999	6
1.8.2	Pilot Plant Gravity-Flotation Processing System 2003 to 2006	7
1.8.3	Liem Consultores Metallurgy Testwork 2024	7
1.8.4	Sepro Mineral Systems Corp.	8
1.8.5	Dyna de Mexico 2025	8
1.9	Mineral Resource Estimate	9
1.10	Mineral Reserve Estimate	10
1.11	Mine Design, Optimization and Scheduling	11
1.12	Processing and Recovery Methods	12
1.12.1	Tailings Water Management	13
1.12.2	Process Plant Water Supply	13
1.12.3	Products and Recoveries	13
1.12.4	Sampling and Analysis	13
1.13	Infrastructure	13
1.14	Marketing Summary	15
1.15	Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individual and Groups	16
1.16	Capital Costs, Operating Costs and Financial Analysis	18
1.16.1	Capital Expenditures	18
1.16.2	Operating Expenditures	19
1.17	Economic Analysis	19
1.18	Recommendations	21
1.18.1	Introduction	21
1.18.2	Mine Exploration	21
1.18.3	Quality Assurance / Quality Control	22
1.18.4	Mineral Resource Estimation	22
1.18.5	Mine Design	22
1.18.6	Metallurgy and Processing	22
2.0	Introduction	24
2.1	Terms of Reference and Purpose of the Report	24
2.2	Report Purpose	24
2.3	Terms of Reference	24
2.4	Site Visits and Scope of Personal Information	24
2.5	Information Source and References	25
2.6	Previous Technical Reports	25
2.7	Units and Abbreviations	26

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

2.8	Reporting of Payable Metal by Gold Equivalent	31
3.0	Property Description	32
3.1	Location	32
3.2	Area of the Property	32
3.3	Mineral Titles, Claims, Rights, Leases and Options	36
3.4	Surface Lease Agreement	38
3.5	Royalties and Enviromental Liabilities	40
3.6	Comment on Property Description and Location	40
4.0	Accessibility, Climate, Local Resources, infrastructure and Physiography	41
4.1	Accessibility	41
4.2	Climate	41
4.3	Infrastructure Availability and Sources	43
4.3.1	Power	43
4.3.2	Water	43
4.3.3	Mining Personnel	43
4.3.4	Processing Plan Site and Tailings Storage Area	43
4.4	Topography, Elevations and Vegetation	43
4.5	Sufficiency of Surface Rights	49
5.0	History	50
5.1	Early History	50
5.2	Recent Ownership	51
6.0	Geological Setting, Mineralization and Deposit	53
6.1	Regional Geology	53
6.2	Local Geology of the SJG Project Area	55
6.2.1	Stratigraphy	57
6.2.1.1	San José de Gracia Formation	57
6.2.1.2	Lower Volcanic Series	57
6.2.1.3	Syn-Volcanic Intrusions	57
6.2.1.4	Upper Volcanic Series	58
6.2.1.5	Holocene Alluvium	58
6.2.2	Property Geology	58
6.2.2.1	Metasedimentary Rocks - San José de Gracia Formation (Carboniferous)	61
6.2.2.2	Andesite (Cretaceous)	62
6.2.2.3	Andesite Breccia (Cretaceous)	62
6.2.2.4	Rhyodacite (Tertiary)	62
6.2.2.5	Quartz-Feldspar Porphyry (Tertiary)	62
6.2.2.6	Feldspar Porphyry (Tertiary)	62
6.2.2.7	Andesite Porphyry (Tertiary)	63
6.2.2.8	Rhyodacite-Ignimbrite (Miocene)	63
6.3	Structural Geology	63
6.3.1	Transpression	63
6.3.2	Strike-Slip Faulting	65
6.4	Mineralization	68
6.4.1	Regional Mineralization	68

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

6.4.2	SJG Property Area Mineralization	68
6.4.3	Structural Controls	72
6.4.4	Mineralization Types	73
6.4.4.1	Quartz Vein Breccia Mineralization	73
6.4.4.2	Porphyry Mineralization	77
6.4.5	Mineralized Zones of the SJG Mine	78
6.4.5.1	San Pablo Zone	78
6.4.5.2	Tres Amigos Zone	82
6.4.5.3	La Union-Mochomera Zone	84
6.4.5.4	Palos Chinos Zone	87
6.4.5.5	Purisima Zone	87
6.4.5.6	La Prieta Zone	90
6.5	Deposit Type	92
7.0	Exploration	95
7.1	Surface and Underground Exploration	95
7.1.1	Introduction and Previous Exploration Works	95
7.1.2	La Purisima Compilation	96
7.1.3	Palos Chinos Trend (Palos Chinos and Tajo Verde Mines)	98
7.1.4	La Parrilla- Veta Tierra Trend	102
7.1.4.1	Introduction	102
7.1.4.2	Veta Tierra - La Parrilla Trend	103
7.1.4.3	Veta Tierra	103
7.1.4.4	Southeast Vein	105
7.1.4.5	South Vein	105
7.1.4.6	La Union-Santa Eduwiges Area	106
7.1.4.7	La Mochomera	109
7.1.4.8	La Parrilla	110
7.1.5	San Pablo Trend	110
7.1.6	La Prieta Trend	112
7.1.7	Santa Rosa-Tres Amigos Trend	113
7.1.8	Tres Amigos and Tres Amigos West	114
7.1.9	Orange Tree Vein	115
7.1.10	La Ceceña	116
7.1.11	Los Hilos	117
7.1.12	Santa Rosa	118
7.1.13	Other Targets	118
7.1.13.1	Rudolpho Vein	118
7.1.13.2	Coralia Vein	119
7.1.14	Geochemical Correlations	120
7.1.15	La Prieta Area. Underground Chip Sampling, Buen-Blanco Zone	121
7.1.16	Regional Chip Sampling	123
7.1.17	Regional Multi-spectral Satellite Anomalies	124
7.1.18	Tres Amigos, Bulk Sample	125
7.1.19	Regional Stream Sediment Sampling	125
7.1.20	Rock and Soil Geochemistry	127

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

7.1.21	Dipole-Dipole Complex Resistivity, Natural Source AMT Surveys and Ground Magnetics	129
7.2	Drilling	135
7.2.1	Introduction and Overview	135
7.2.2	1992 to 2011 Drilling Programs	137
7.2.2.1	Factors that Could Impact Reliability of Results	139
7.2.2.2	Drilling at Tres Amigos	140
7.2.2.3	Drilling at San Pablo Area	145
7.2.2.4	Drilling at La Union Area	150
7.2.2.5	Drilling in the La Purisima Area	153
7.2.3	2021-2022 Drilling Program	157
7.2.4	2023-2024 Drilling Program	167
8.0	Sample Preparation, Analysis and Security	187
8.1	Historical Drill Hole Sampling at SJG (2007 to 2011)	187
8.1.1	Historical Sample Preparation and Security	187
8.1.2	Historical Sample Preparation and Analysis	187
8.1.3	Historical Quality Assurance / Quality Control	187
8.1.3.1	2007 – 2008 Quality Assurance / Quality Control	188
8.1.3.2	2009 to 2011 Quality Assurance / Quality Control	188
8.2	Bulk Density Determinations	189
8.3	Recent Drill Hole Sampling by DYNA de Mexico (2021 to 2024)	190
8.3.1	Sample Preparation and Security	190
8.3.2	Sample Preparation and Analysis	191
8.4	Recent Quality Assurance / Quality Control (Dyna de Mexico: 2021 to 2024)	191
8.4.1	Quality Assurance / Quality Control (2021 – 2022)	192
8.4.1.1	Performance of Certified Reference Materials	192
8.4.1.2	Performance of Blanks	197
8.4.1.3	Performance of Duplicates	198
8.4.1.4	Performance of Umpire Samples	198
8.4.2	Quality Assurance / Quality Control (2023 – 2024)	198
8.4.2.1	Performance of Blanks	201
8.4.2.2	Performance of Duplicates	202
8.4.2.3	Performance of Umpire Samples	202
8.5	Conclusion	202
9.0	Data Verification	204
9.1	2025 P&E Data Verification	204
9.1.1	March 2025 Data Verification	204
9.1.2	Drill Hole Data Validation	204
9.2	P&E Site Visit and Independent Sampling	204
9.3	Adequacy of Data	211
10.0	Mineral Processing and Metallurgical Testing	212
10.1	Metallurgical Overview	212
10.2	Metallurgical Test Work Programs 1999 to 2006	212
10.3	Liem Consultores Metallurgy Testwork, 2024	213

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

10.4	Sepro Mineral Systems Corp.	214
10.5	Metallurgical Performance	215
11.0	Mineral Resource Estimates	216
11.1	Introduction	216
11.2	Mineral Resource Definitions	216
11.2.1	Inferred Mineral Resource	216
11.2.2	Indicated Mineral Resource	217
11.2.3	Measured Mineral Resource	217
11.3	Database	217
11.4	Data Verification	219
11.5	Domain Interpretation	219
11.6	Wireframe Constrained Assays	220
11.7	Compositing	221
11.8	Capping	221
11.9	Variography	222
11.10	Bulk Density	223
11.11	Block Model	223
11.12	Grade Estimation	224
11.13	Classification	224
11.14	Depletion	225
11.15	Au Cut-off Grade Determination	225
11.16	Mineral Resource Estimate	225
11.17	Validation	226
11.18	Potential Risks in Developing the Mineral Resource	229
11.19	Mineral Resource Estimate Conclusion	230
11.20	Mineral Resource Estimate Illustrations	230
11.20.1	Drill Hole Plan	230
11.20.2	3-D Domains	230
11.20.3	Variograms	233
11.20.4	Au Block Model Cross Sections and Plans	235
11.20.5	Classification Block Model Cross Sections and Plans	245
12.0	Mineral Reserve Estimates	255
12.1	Mineral Reserve Summary	255
12.2	Factors that May Affect the Mineral Reserve Estimate	255
12.3	Underground Mineral Reserve	256
12.3.1	Block Model Changes from Mineral Resource Estimate to Mineral Reserve Estimate	256
12.3.2	Cut-off Value Calculations	257
12.3.2.1	Metal Prices, Recoveries and Payable Value Calculations	257
12.3.2.2	Contractor Estimates	258
12.3.2.3	Site Cost Estimates	259
12.3.2.4	Cut-off Grade Estimates	259
12.3.3	Dilution and Mining Loss	259
12.3.3.1	Internal Dilution	259
12.3.3.2	External Dilution	260
12.3.3.3	Total Dilution	260
12.3.3.4	Mining Loss	260

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

12.3.3.5	Additional Considerations	260
12.3.4	Underground Mineral Reserve Estimate	260
12.3.5	Mining Plan Summary	260
12.3.6	Underground Mineral Reserve	261
13.0	Mining Methods	263
13.1	Introduction	263
13.2	Review and Limitations of Geomechanical Data	266
13.3	Rock Mass Characteristics and Domain Definition	266
13.3.1	Intact Rock Properties	266
13.3.2	Rock Mass Structure	267
13.3.3	Rock Mass Quality	268
13.3.4	Faults	269
13.3.5	Stress Regime	269
13.3.6	Stope Stability	269
13.3.7	Ground Support	270
13.4	Production Mining	270
13.4.1	Stope Design Methodology and Mining Factors	271
13.5	Development Mining	272
13.5.1	Ramps	275
13.5.2	Accesses and Sumps	275
13.5.3	Sills	277
13.5.4	Loading Bays	278
13.5.5	Ventilation System	278
13.5.6	Standard Level Design	279
13.6	Development Schedule	280
13.7	Mine Production	281
13.7.1	Mine Plan Summary	282
13.7.2	Production Sequence	283
13.7.3	Waste Backfill	285
13.7.3.1	Sources of Waste Material	285
13.7.3.2	Waste Rock Production	285
13.8	Services	286
13.8.1	Service Water	286
13.8.2	Dewatering	286
13.8.3	Compressed Air	287
13.8.4	Electrical Power	287
13.8.5	Ventilation	288
13.8.6	Diesel Supply	290
13.9	Equipment for Development and Production	290
13.10	Service Equipment	291
13.11	Haulage Routes	291
13.11.1	Route to San Pablo Yard	292
13.11.2	Route to Tres Amigos Yard	292
13.11.3	Loading and Haulage Equipment	293
13.11.4	Mine Personnel	294
14.0	Processing and Recovery Methods	295
14.1	Process Design Criteria	295

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

14.2	Process Flowsheet and Description	296
14.3	Summary of Mass and Water Balances	303
14.3.1	Tailings Water Management	303
14.3.2	Plant Water Supply	306
14.4	Products and Recoveries	307
14.4.1	Sampling and Analysis	311
14.4.2	Metallurgical Testing and Process Audits	312
14.5	Recommendations for Operational Improvements	312
15.0	Infrastructure	314
15.1	Access and Roadways	314
15.1.1	External Access and Roadways	314
15.1.2	Air Access	315
15.1.3	Internal or Local Roadways and Transport	315
15.2	Utilities	316
15.2.1	Electric Power	316
15.2.2	Water Supply	317
15.2.3	Waste and Wastewater	317
15.3	Man Camp and Facilities	318
15.3.1	General	318
15.3.2	Setting	318
15.3.3	Housing	318
15.3.4	Dining	318
15.3.5	Communication	319
15.3.6	Security	319
15.3.7	Offices	319
15.3.8	Medical Facilities	319
15.3.9	Other Services	320
15.4	Off-Site Facilities	320
15.4.1	Sinaloa de Leyva	320
15.4.2	Guamuchil	320
15.4.3	Mazatlán	320
15.5	Mines	320
15.5.1	San Pablo and San Pablo Sur	321
15.5.2	Mochomera	323
15.5.3	Tres Amigos	323
15.6	Mine Support	325
15.6.1	Office	325
15.6.2	Ore Lay Down Areas	326
15.6.3	Transportation	326
15.6.4	Trucking	326
15.6.5	Shops	327
15.6.6	Bodega	327
15.6.7	Generators	327
15.6.8	Compressed Air	327
15.6.9	Magazines	327
15.6.10	Fuel	327
15.7	Tailings Storage Facility	327

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

15.8	Warehousing	328
15.8.1	Process Plant	328
15.8.2	Guamuchil	329
16.0	Market Studies	330
16.1	Overview	330
16.2	Production Techniques	331
16.3	Supply	332
16.4	Demand	333
16.5	Balance in the Gold Market	334
16.6	Forecast	335
16.7	Corporate Prospects	337
17.0	Environmental Studies, Permitting, and Plans, Negotiations, or Agreements with Local Individuals or Groups	339
17.1	Required Permits for Gold Exploration, Drilling and Mining	340
17.2	Historical Dyna de Mexico Permitting	341
17.3	Surface Lease Agreements	343
18.0	Capital and Operating Costs	345
18.1	Capital Cost Estimates	345
18.1.1	Sustaining Underground Mine Development Infrastructure	346
18.1.2	Additional Development Capital Costs	346
18.1.3	External G&A (Owner's Cost)	346
18.1.4	Other Sustaining Capital Costs	347
18.1.5	IVA Capital Costs and Credits	347
18.1.6	Special Mining Duty Capital Cost	348
18.1.7	Process Plant Sustaining Capital Costs	348
18.1.8	Site Infrastructure Sustaining Capital Costs	348
18.1.9	Process Plant Expansion Capital Costs	349
18.1.10	Reclamation and Closure Capital Costs	349
18.2	Operating Cost Estimates	350
18.2.1	Underground Mining OPEX Cost	350
18.2.2	Additional Backfill OPEX Cost	352
18.2.3	Processing OPEX Cost	353
18.2.4	Site G&A OPEX Costs	353
19.0	Economic Analysis	355
19.1	Economic Criteria	355
19.1.1	Physical Parameters	355
19.1.2	Revenue	355
19.1.3	Costs	356
19.2	Cash Flow	357
19.3	Base Case Cash Flow Analysis	358
19.4	Sensitivity Analysis	359
20.0	Adjacent Properties	361
20.1	Nearby Properties and Operating Mines	361
20.2	Comment on Adjacent Properties	361
21.0	Other Relevant Data and Information	362

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

22.0	Interpretation and Conclusions	363
22.1	Introduction	363
22.2	Mineral Tenure, Surface Rights, Water Rights, Royalties and Agreements	363
22.3	Geology and Mineralization	364
22.4	Exploration, Drilling and Analytical data Collection in Support of Mineral Resource Estimation	364
22.5	Metallurgy and Processing (Updated: 09Apr25)	364
22.6	Mineral Resource Estimate	364
22.7	Mineral Reserve Estimate	365
22.8	Mining Methods	365
22.9	Recovery Methods	366
22.10	Project Infrastructure	366
22.11	Markets and Contracts	367
22.12	Environmental Studies, Permitting and Social Considerations	367
22.13	Capital and Operating Costs	368
22.14	Economic Analysis	368
22.15	Risks and Opportunities	369
22.15.1	Risks	369
22.15.1.1	Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation	369
22.15.1.2	Metallurgical Testwork and Recovery Plan	369
22.15.1.3	Mineral Resource Estimate	369
22.15.1.4	Mineral Reserve Estimate and Mine Plan	369
22.15.1.5	Project Infrastructure	370
22.15.2	Opportunities	370
22.15.2.1	Exploration and Mineral Resources	370
22.15.2.2	Mineral Resource Estimate	370
22.15.2.3	Mine Design and Schedule Optimization	370
22.15.2.4	Recovery Plan	371
22.15.2.5	Project Infrastructure	371
23.0	Recommendations	371
23.1	Mine Exploration	371
23.2	Quality Assurance / Quality Control	374
23.3	Mineral Resource Estimation	374
23.4	Mine Design	374
23.5	Metallurgy and Processing	374
24.0	References	376
25.0	Reliance on Information Provided by the Registrant	379
25.1	Introduction	379
25.2	Legal Matters	379
25.3	Geomechanical	379
25.4	Environmental Matters and Community Accommodations	379
25.5	Market Information	380
25.6	Taxation	380

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

List of Tables

Table 1.1 Summary Grades and Final Process Recoveries	8
Table 1.2 Mineral Resource Estimate at 2.0 g/t Au Cut-off (1-6)	10
Table 1.3 San José de Gracia Mineral Reserve Estimate (1-9)	11
Table 1.4 Mine Plan Production Rate	12
Table 1.5 Summary of Total LOM Capital Costs (US$k)	18
Table 1.6 Summary of Average Operating Cost per Tonne Processed ($/t)	19
Table 1.7 Key Economic Parameters	19
Table 1.8 Summary of Budget for Recommended Exploration and Development Programs in 2025	21
Table 2.1 Terminology and Abbreviations	26
Table 2.2 Unit Measurement Abbreviations	30
Table 3.1 Mining Concessions on the San José de Garcia Project Property*	34
Table 4.1 Most Common Species of Vegetation in the SJG Project Area	46
Table 5.1 Gold Production at San José de Gracia Before the 1970s	50
Table 6.1 Target Type and Characteristics of the Main Mineralized Trends	70
Table 7.1 Significant Chip Channel Samples from the Palos Chinos Underground	100
Table 7.2 Significant Channel Sample Results for the Veta Tierra Vein from Surface and Underground	104
Table 7.3 Significant Vein Intercepts South of the Veta Tierra Workings (Southeast and South Veins)	105
Table 7.4 Significant Samples Taken in La Union	107
Table 7.5 Significant Samples Collected in Northwest Vein	109
Table 7.6 Significant Assay Results for Samples Collected from La Mochomera Underground	109
Table 7.7 Significant Assay Results for Chip Channel Sampling of the San Pablo Workings	111
Table 7.8 Significant Assay Results for Samples from La Prieta Workings in 2000	113
Table 7.9 Significant Underground Channel Sample Assays from Tres Amigos and Tres Amigos West	115
Table 7.10 1997 Diamond Drilling Intercepts of the Orange Tree Vein	116
Table 7.11 2000 Float Sampling Southwest of La Ceceña Mine	116
Table 7.12 Float and Chip Samples, Northeast Los Hilos	117
Table 7.13 Sampling of the Los Hilos Portal	118
Table 7.14 1997 Drill Intercepts of the Rudolpho Vein	119
Table 7.15 2000 Sampling of the Coralia Vein	119
Table 7.16 Average Gold and Silver Grades and Au/Ag Ratio for Different Gold Thresholds	120
Table 7.17 Chip Samples from Buen Blanco Zone, La Prieta	122
Table 7.18 Anomalous Surface Rock Chip Sampled from the Tres Amigos Area	124
Table 7.19 Drilling Summary for the SJG Project Property	136
Table 7.20 Selected Drill Hole Assay Intercepts of Tres Amigos 1992 to 2011	141
Table 7.21 Drill Collar Locations, Orientation and Hole Lengths in the Tres Amigos Area	143
Table 7.22 Selected Drill Hole Assay Intercepts of San Pablo 1992 to 2011	146
Table 7.23 Drill Collar Locations, Orientation and Hole Lengths in the San Pablo Area	147
Table 7.24 Selected Drill Hole Assay Intercepts of La Union 1992 to 2011	151
Table 7.25 Drill Collar Locations, Orientation and Hole Lengths in the La Union Area	152
Table 7.26 Selected Drill Hole Assay Intercepts of La Purisima 1992 to 2011	154
Table 7.27 Drill Collar Locations, Orientation and Hole Lengths in the La Purisima Trend	155
Table 7.28 2021-2022 Selected Assay Intercepts	159

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table 7.29 2021-2022 Drilling Program Summary	164
Table 7.30 2023-2024 Selected Assay Intercepts	168
Table 7.31 2023-2024 Drilling Program Summary	177
Table 8.1 Summary of Certified Reference Materials Used at SJG Project: 2021-2022	193
Table 8.2 Summary of Certified Reference Materials Used at SJG Project 2023-2024	199
Table 9.1 Drill Hole Collar GPS Locations Taken During the 2025 SJG Project Site Visit	210
Table 10.1 Summary Grades and Final Recoveries	214
Table 11.1 Database Summary	218
Table 11.2 Drill Holes Ignored for the MRE	218
Table 11.3 Assay Database Basic Statistics	219
Table 11.4 Domain Rock Codes for MRE	220
Table 11.5 Basic Statistics of Constrained Assays	221
Table 11.6 Basic Statistics of Composites	221
Table 11.7 Block Model Definitions	223
Table 11.8 Block Model Au Interpolation Parameters	224
Table 11.9 Mineral Resource Estimate at 2.0 g/t Au Cut-off (1-6)	225
Table 11.10 Average Grade Comparison of Block Models	226
Table 11.11 Risks by Category	229
Table 12.1 San José de Gracia Mineral Reserve (1-9)	255
Table 12.2 San José de Gracia Smelter Payable Ratios	257
Table 12.3 San José de Gracia Mine Plan by Mineral Resource Class1	261
Table 12.4 San José de Gracia Mineral Reserve (1-9)	261
Table 12.5 San José de Gracia Mineral Reserve by Grade Group1	262
Table 13.1 Rock Mass Domains	267
Table 13.2 Typical Rock Mass Quality Ranges Based on RMR76 Rock Mass Classification	269
Table 13.3 Development Profiles	273
Table 13.4 Mine Development Quantities (meters)	281
Table 13.5 Annual Ore Mining Plan	282
Table 13.6 Mine Equipment Fleet	291
Table 13.7 Equipment Provided by Dyna	291
Table 14.1 Process Plant Statistics, 2024	308
Table 14.2 Process Plant Statistics, 2025	309
Table 14.3 Detailed Process Plant Production	310
Table 14.4 Process Operating Cost Summary	310
Table 14.5 Process Operating Costs Details	311
Table 15.1 DynaResource’s Shipment and Supply Distances	315
Table 16.1 Total Gold Supply 2023 and 2024	332
Table 16.2 World Gold Production by Region 2010 to 2023	333
Table 16.3 Gold Supply and Demand (tonnes)	335
Table 16.4 Metal Price 12 Month Prediction	337
Table 16.5 Projected Gold Production 2025-2029	338
Table 16.6 Projected Gold Concentrate Payment Schedule	338
Table 18.1 Summary of Total LOM Capital Costs ($k)	345
Table 18.2 Sustaining Underground Mine Development Capital Costs ($k)	346
Table 18.3 Additional Underground Mine Development Capital Costs ($k)	346
Table 18.4 Other Sustaining Capital Costs ($k)	347
Table 18.5 IVA Movement Capital Costs ($k)	347
Table 18.6 Special Mining Duty Capital Costs ($k)	348

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table 18.7 Process Plant Sustaining Capital Costs ($k)	348
Table 18.8 Site Infrastructure Sustaining Capital Costs ($k)	349
Table 18.9 Process Plant Expansion Capital Costs in 2025 ($k)	349
Table 18.10 Reclamation and Closure Capital Costs in 2031 ($k)	350
Table 18.11 Summary of Average Operating Cost per Tonne Processed ($/t)	350
Table 18.12 Underground Budgeted 2025 Unit Mining Operating Costs	351
Table 18.13 Yearly Underground Mining Operating Costs	352
Table 18.14 Additional Backfill Operating Costs	352
Table 18.15 Process Plant Operating Costs ($k)	353
Table 18.16 Site G&A Operating Costs	354
Table 19.1 Summary of Total Revenue Generation ($M)	356
Table 19.2 After-Tax Cash Flow Summary	357
Table 19.3 Cash Flow Analysis	358
Table 19.4 Sensitivity Parameter Values	359
Table 19.5 After-Tax NPV Sensitivity at 5% Discount Rate ($M)	359
Table 22.1 Mineral Resource Estimate at 2.0 g/t Au Cut-off	365
Table 22.2 Mineral Reserve Estimate	365
Table 23.1 Summary of Budget for Recommended Exploration and Development Activities in 2025	371

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

List of Figures

Figure 1.1	After-Tax NPV Sensitivity Graph	20
Figure 3.1	Location of the San José de Gracia Project in Sinaloa State, Mexico	32
Figure 3.2	Mining Concessions Map Location	33
Figure 3.3	SJG Mine Area and Santa Maria Ejido, Surface Rights Ownership and Lands Under Common Use With Dyna De Mexico	39
Figure 4.1	Road Access to San José de Gracia	42
Figure 4.2	Location of Air Strip North-Northwest of the Village of SJG	42
Figure 4.3	Photograph Showing Moderately Rugged Range and Narrow Valley Topography in the SJG Project Area	44
Figure 4.4	Photograph Showing the Vegetation at Lower Elevations in the SJG Project Area	45
Figure 5.1	The Crushing Plant at the La Purisima Mine in the Late 1890s	51
Figure 6.1	Sierra Madre Occidental Province with Precious Metal Epithermal Deposits, Projects and Mines	53
Figure 6.2	Regional Geologic Setting of SJG Project Area	56
Figure 6.3	Local Geology Map of the SJG Mine Area	60
Figure 6.4	Simplified Stratigraphic Column for the SJG Mine Area	61
Figure 6.5	Structural Geology Map of SJG Project Area	64
Figure 6.6	Location and Structural Orientation of the Six Main Mineralized Zones in the SJG Project Area	66
Figure 6.7	Section Across the San Pablo Fault Showing its Normal Sense of Displacement	67
Figure 6.8	Structural Interpretation of the SJG Project Mine Zones	73
Figure 6.9	Sample from Drill Hole SJG08-118 that Intercepted the Southwestern Extremity of the Tres Amigos Zone	75
Figure 6.10	QZBX from Drill Hole SJG07-23 in the West-Central Portion of the San Pablo Zone	75
Figure 6.11	Main San Pablo Quartz Vein-Breccia Within Rhyodacite at the Centre of the Mineralized Zone	76
Figure 6.12	Quartz Vein-Breccia in the Entrance to the El Salto Mine on the Purisima Zone	77
Figure 6.13	Sheeted Quartz Veinlet Mineralization Within Feldspar Porphyry	78
Figure 6.14	San Pablo Section 2	80
Figure 6.15	San Pablo Section 8	81
Figure 6.16	Flat-Lying 20 cm Thick Quartz Vein-Breccia Within Andesites in the Gossan Cap, Within the Upper Distal Region of the San Pablo Zone	82
Figure 6.17	Perspective View of the Tres Amigos Structure	83
Figure 6.18	Photograph of the Tres Amigos Mine Workings	83
Figure 6.19	Tres Amigos Section 3	85
Figure 6.20	Tres Amigos Section 4	86
Figure 6.21	Purisima Section 3	88
Figure 6.22	Purisima Section 6	89
Figure 6.23	Quartz Veinlet Mineralization in the La Prieta Mine Zone	90
Figure 6.24	Photograph of Two-Meter High Stope Within the La Prieta Zone	91

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure 6.25	Section Through the La Prieta Zone Showing How the Height of the Stope, and Therefore the Thickness of the Mineralization, Increases as the Dip Shallows	92
Figure 6.26	Epithermal Gold-Silver Mineralizing System	93
Figure 7.1	Geological Map Showing the Underground Workings at La Purisima Ridge	97
Figure 7.2	Assays for Sample Transect from the Footwall Contact to the Hanging Wall of the Palos Chinos Vein	99
Figure 7.3	Photograph of the Chlorite Rich Portion of the Palos Chinos Vein	100
Figure 7.4	Plots of Ag/Au Ratio versus Au and Ag	120
Figure 7.5	Sampling at La Prieta - Buen Blanco	123
Figure 7.6	Stream Sediments Map	126
Figure 7.7	Rock and Soil Geochemistry Map	128
Figure 7.8	Geophysical Survey Lines and Mineralized Zones at the SJG Project	130
Figure 7.9	Dipole-Dipole, IP Data, Depth Slice at 200 m	131
Figure 7.10	Dipole-Dipole, Resistivity Data, Depth Slice at 200 m	132
Figure 7.11	RTP Magnetic Intensity of the SJG Mineralized Zones	133
Figure 7.12	RTP Magnetic Intensity with Magnetic Lineament/Zone Interpretation	134
Figure 7.13	Plan View of Drilling in the SJG Project Area 1992 to 2011	138
Figure 7.14	Plan View of post-2011 Drilling at the SJG Project	158
Figure 7.15	Palos Chinos Cross Section 1	180
Figure 7.16	Palos Chinos Cross Section 2	181
Figure 7.17	Palos Chinos Cross Section 3	182
Figure 7.18	Palos Chinos Cross Section 4	183
Figure 7.19	Mochomera Cross Section 1	184
Figure 7.20	Mochomera Cross Section 2	185
Figure 7.21	Mochomera Cross Section 3	186
Figure 8.1	Core sampling facilities: Electric Diamond Saw	191
Figure 8.2	SJG Project Performance Chart For CRM Sulfide: 2021 - 2022	193
Figure 8.3	SJG Project Performance Chart For OxG140: 2021 - 2022	194
Figure 8.4	SJG Project Performance Chart For OxG179: 2021 - 2022	194
Figure 8.5	SJG Project Performance Chart For OxG180: 2021 – 2022	195
Figure 8.6	SJG Performance Chart For OxH163: 2021 - 2022	195
Figure 8.7	SJG Project Performance Chart For Oxi164: 2021 - 2022	196
Figure 8.8	SJG Project Performance Chart For OxL118: 2021 - 2022	196
Figure 8.9	SJG Project Performance Chart For OxL159: 2021 - 2022	197
Figure 8.10	SJG Project Performance Chart For Blank: 2021 - 2022	198
Figure 8.11	SJG Project Performance Chart For OxG180: 2023 - 2024	199
Figure 8.12	SJG Project Performance Chart For OxG191: 2023 - 2024	200
Figure 8.13	SJG Project Performance Chart For OxL159: 2023 - 2024	200
Figure 8.14	SJG Project Performance Chart For OxL196: 2023 - 2024	201
Figure 8.15	San José de Gracia Performance Chart For Blanks: 2023 - 2024	202
Figure 9.1	Photograph on Level AC475 at San Pablo	205
Figure 9.2	Photograph of Vein and Fault on Level 577 at Mochomera	206
Figure 9.3	Photograph of Scoop Tram in San Pablo Area	207
Figure 9.4	Photograph on Level 640 of Tres Amigos	208
Figure 9.5	Collar Marker For Drill Hole 24-517	209
Figure 9.6	Results of the February 2025 Au Verification Samples	211

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Figure 11.1	Au Composite Probability Plot of All Domains	222
Figure 11.2	Au Grade–Tonnage Curve of SJG Deposit	227
Figure 11.3	Au Grade Swath Plot Easting	228
Figure 11.4	Au Grade Swath Plot Northing	228
Figure 11.5	Au Grade Swath Plot Elevation	229
Figure 11.6	San José de Gracia Diamond Drill Hole Locations Plan	231
Figure 11.7	San José de Gracia 3-D Domains Plan	232
Figure 11.8	San José de Gracia Variograms	233
Figure 11.9	Au Block Model Vertical Cross Section 2,896,400 N, San Pablo, Union, and Mochomera Zones	236
Figure 11.10	Au Block Model Vertical Cross Section 2,896,700 N, San Pablo, Union, and Mochomera Zones	237
Figure 11.11	Au Block Model Vertical Cross Section 2,897,000 N, San Pablo, Union, and Mochomera Zones	238
Figure 11.12	Au Block Model Plan 600 Elevation, San Pablo, Union, and Mochomera Zones	239
Figure 11.13	Au Block Model Plan 500 Elevation, San Pablo, Union, and Mochomera Zones	240
Figure 11.14	Au Block Model Vertical Cross Section 2,897,950 N, Tres Amigos Zone	241
Figure 11.15	Au Block Model Vertical Cross Section 2,898,100 N, Tres Amigos Zone	242
Figure 11.16	Au Block Model Plan 600 Elevation, Tres Amigos Zone	243
Figure 11.17	Au Block Model Plan 500 Elevation, Tres Amigos Zone	244
Figure 11.18	Classification Block Model Vertical Cross Section 2,896,400 N, San Pablo, Union, and Mochomera Zones	246
Figure 11.19	Classification Block Model Vertical Cross Section 2,896,700 N, San Pablo, Union, and Mochomera Zones	247
Figure 11.20	Classification Block Model Vertical Cross Section 2,897,000 N, San Pablo, Union, and Mochomera Zones	248
Figure 11.21	Classification Block Model Plan 600 Elevation, San Pablo, Union, and Mochomera Zones	249
Figure 11.22	Classification Block Model Plan 500 Elevation, San Pablo, Union, and Mochomera Zones	250
Figure 11.23	Classification Block Model Vertical Cross Section 2,897,950 N, Tres Amigos Zone	251
Figure 11.24	Classification Block Model Vertical Cross Section 2,896,100 N, Tres Amigos Zone	252
Figure 11.25	Classification Block Model Plan 600 Elevation, Tres Amigos Zone	253
Figure 11.26	Classification Block Model Plan 500 Elevation, Tres Amigos Zone	254
Figure 13.1	Mine Production Zones	264
Figure 13.2	Isometric View of Mines Looking Southeast	265
Figure 13.3	Stereography	268
Figure 13.4	Cut-and-Fill: Section View of Production Mining Sequence	271
Figure 13.5	Example of Stope Containing Waste, Marginal and Economic Material (La Mochomera, EL 497)	272
Development profiles are shown in Table 13.3.		273
Figure 13.6	Organizational Chart	274
Figure 13.7	Ramp Development Standard	275
Figure 13.8	Access Development Standard	276

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Figure 13.9	Sump Development Standard	277
Figure 13.10	Sill Development Standard	278
Figure 13.11	Ventilation Access Development Standard	279
Figure 13.12	Standard Mining Level Plan	280
Figure 13.13	Mine Development Schedule	281
Figure 13.14	Cut-and-Fill Cross-Section View of Access Development Sequence (View Bottom to Top)	284
Figure 13.15	Cut-and-Fill Longitudinal Section View Development Sequence (View Bottom to Top)	285
Figure 13.16	Mine Backfill Requirements	286
Figure 13.17	San Pablo-Mochomera Mine Ventilation System	289
Figure 13.18	Tres Amigos Mine Ventilation System	289
Figure 13.19	San Pablo Haul Route and Elevation	292
Figure 13.20	Tres Amigos Haul Route and Elevation	293
Figure 14.1	Process Plant Milling Rates and Feed Grades 2024	295
Figure 14.2	Mined Feed from Three Mineralized Zones	297
Figure 14.3	Coarse Mineralized Material Bin	297
Figure 14.4	500 Hp Primary Ball Mill Circuit 8 Feet Diameter by 12 Feet Long	298
Figure 14.5	300 Hp Primary Ball Mill Circuit 8 Feet diameter by 8 Feet Long	298
Figure 14.6	Crusher Mill Mineralized Material Feed	299
Figure 14.7	Rougher and Scavenger Hybrid Flotation Cells	299
Figure 14.8	Denver Cleaner Flotation Cells	300
Figure 14.9	Concentrate Dewatering Pits	300
Figure 14.10	Concentrate Bagged for Shipping	301
Figure 14.11	Process Flowsheet	302
Figure 14.12	Tailings Pit	304
Figure 14.13	Lined Tailings Storage Facility	305
Figure 14.14	Newly Constructed Tailings Berm Facility	305
Figure 14.15	Tailings Decanted Water Recovery – Gravity flow to Mill	306
Figure 14.16	Process Plant Water Borehole and Pumping System	307
Figure 15.1	Map of Local Mining and Processing Facilities	316
Figure 15.2	Aerial View of the SJG Main Mineral Trend (Looking West)	321
Figure 15.3	Common Portal for San Pablo, San Pablo Sur, and Mochomera	322
Figure 15.4	Longitudinal Projection of San Pablo and San Pablo Sur	322
Figure 15.5	Mochomera Longitudinal Projection	323
Figure 15.6	Tres Amigos Portal	324
Figure 15.7	Longitudinal Projection of Tres Amigos	325
Figure 15.8	Mine Office Facility	326
Figure 15.9	Aerial view of the TSF (Looking Southwest)	328
Figure 16.1	Gold Market Sources	330
Figure 16.2	Ten Largest Gold Producing Countries	332
Figure 16.3	Gold Consumption by Category 2010 to 2023	333
Figure 16.4	Gold Usage	334
Figure 16.5	Gold Price Chart 2016 to 2025	336
Figure 16.6	Gold Price Forecast Examples	337
Figure 17.1	SJG Project Location	339
Figure 17.2	The Lands of the Land Occupation Agreement with Santa Maria Ejido	344
Figure 19.1	After-Tax NPV Sensitivity Graph	360

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure 23.1	Recommended Drilling at Tres Amigos	372
Figure 23.2	Recommended Drilling at San Pablo	373
Figure 23.3	Recommended Drilling at Mochomera	373

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

1.0 Executive Summary

1.1 Introduction

DynaResource Inc. (“DynaResource” or “the Company”) is listed on the OTCQX as DYNR. As a result, DynaResource is a registrant with the United States Securities and Exchange Commission (“SEC”) and must comply with the subpart 229.1300 – Disclosure by registrants Engaged in Mining Operations of Regulation S-K (S-K 1300).

DynaResource commissioned P&E Mining Consultants Inc. (“P&E”) to prepare a Technical Report Summary (the “Report”) that presents the initial Mineral Resource Estimate and Mineral Reserve Estimate of the San José de Gracia Gold Project (the “SJG Project”) in Sinaloa, Mexico, in accordance with the guidelines set forth by the Securities and Exchange Commission (“SEC”) under Regulation S-K, Subpart 1300. This Report marks the Company's first submission of a Mineral Resource and Mineral Reserve under SEC regulations, reflecting its commitment to transparency, compliance, and the provision of reliable information to the Company’s stakeholders. This Report aims to provide investors and other interested parties with a comprehensive understanding of the Company's Mineral Reserves, in order to support informed decision-making and fostering confidence in its operations and future prospects

All units of measurement in the Report are metric, unless otherwise stated. The monetary units are in US dollars, unless otherwise stated. The effective date (the Effective Date) for this Report is March 24, 2025.

1.2 Project Setting

The SJG Project is accessible by paved highway from the City of Culiacan (located to the south of the SJG Project and is the Capital of the State of Sinaloa) or the City of Guamuchil (located to the southwest of the SJG Project). These highways pass through the small Town of Sinaloa de Leyva, 150 km from Culiacan and 50 km from Guamuchil, then from Sinaloa de Leyva by gravel mountainous road to the Village of San José de Gracia (population 250), which covers 84 km and is a five-hour trip. The SJG Project is also accessible by air. A gravel airstrip is located adjacent to the San José de Gracia Village, in the southwestern portion of the Property. The airstrip is suitable for light aircraft and charter flights of 45 minutes duration are available from the airports at the cities of Culiacan and Los Mochis.

The Village of San José de Gracia is located within the southwestern corner of the SJG Project Property area and much of the labor for the recent mining and production activities at the SJG Mine were provided by the village residents. Although the Village provided ~140 employees to the SJG Mine Project, it currently has limited services.

The climate is semi-tropical with a rainy season dominating from late-June/early-July through September. The operating season is dependent on the type of operations. For some activities, operations may be suspended during the rainy season. Summer temperatures vary up to 40 °C with high humidity, whereas the winter temperatures are cooler with nighttime lows of 5 °C. Rains in the wet season can range from gentle late afternoon/early evening showers to strong rains that last up to a few days. Precipitation averages 550 mm annually.

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A power line to the San José de Gracia Mine has been installed by the Comisión Federal de Electricidad (“CFE”), the only Mexican State Company authorized power producer and supplier in Mexico. The power line was installed in March 2012 from the La Estancia area of the Municipality of Sinaloa de Leyva, a distance of 75 km. The power line is currently 440 volts maximum capacity, which supports domestic use only, including the office and camp facilities at San José de Gracia, such as water pump, air conditioning, refrigeration, lights, internet, and fans, and local residential use. Currently, the SJG Mine produces its own diesel-generated power for industrial use.

The water source for the San José de Gracia camp is a well located close to the river that runs just west of the village of San José de Gracia. Dyna de Mexico has obtained the water concession rights for this water source, which provides for usage of 1,000,000 m3 per year. Currently, SJG Project estimates its consumption of water is about half of that amount.

The SJG Project has general and specialized personnel. The Village of San José de Gracia supplies helpers and office-camp maintenance. Specialized mining equipment operators and engineers come from other mines. San José de Gracia Mine has a flotation process plant and a tailings storage area with a tailings dam. The process plant is located adjacent to the San José de Gracia Village.

The topography of the San José de Gracia Mining District is generally rugged with elevations that vary from 400 masl in the valley bottoms to >1,600 masl in the higher ranges. A network of small roads and tracks trails around areas nearer the historical workings at San José de Gracia. Access to the remainder of the Property is difficult without the use of a horse or helicopter. Vegetation at San José de Gracia consists of tropical deciduous forest at lower elevations and pine forest and oak forest at higher elevations.

1.3 Property Description and Location

The SJG Project is located on map sheet G13-A81 in the Culiacan Mining District of Sinaloa State, Mexico, at latitude 26° 9’ N and longitude 107° 53’ W, ~120 km east-northeast of the coastal City of Los Mochis. The SJG Project Property is situated adjacent to the border separating the Mexican States of Sinaloa and Chihuahua. The SJG Mine itself is located in the southwestern portion of the SJG Mine Property, entirely within the State of Sinaloa.

The SJG Project Property covers an area of 3,970 hectares (“ha”) (or 9,810 acres). The Property is covered by 29 mining concessions. Twenty-eight of the mining concessions are held 100% by DynaResource’s wholly-owned subsidiary, Dyna de Mexico. The mining claim named “San Miguel” is not under Dyna´s control. Dyna de Mexico has entered into transfer agreements with the registered owners to 50% undivided title to the San Miguel (t.183504) mining concession and it has entered into promise to sell and purchase agreements with registered owners to 50% undivided title to the San Miguel (t.183504) mining concession. Under Mexican law, such transfer agreements require the consent or relinquishment of first rights of refusal from the registered owners to 100% undivided title to produce legal effects and be eligible for registration before the Mines Recorders´ Office. All the claims are in good standing as of the effective date of this Report and all required mining duties have been paid.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

In addition to surface rights Dyna de Mexico retains pursuant to the Mining Act of Mexico and its Regulations (Ley Minera y su Reglamento), Dyna de Mexico maintains access and surface rights to virtually all of the SJG Mine area pursuant to a surface lease agreement titled “Land Occupation Agreement” between the El Ejido Santa Maria and DynaResource de Mexico, dated May 12, 2002 (the “SJG Project Surface Lease”). This lease covers 28,374 ha. The term of the SJG Project Surface Lease is 30 years and, according to the 2025 SJG Legal Title Opinion, it is understood that the current agreement is in good standing. Dyna de Mexico has no future financial obligations to maintain the SJG Mine Surface Lease. Dyna de Mexico is required to execute mining activities in accordance with applicable Mexican environmental, mining and labor laws and regulations.

The SJG Project is not subject to any royalties, encumbrances or environmental liabilities.

Dyna de Mexico has received all the regulatory permits approvals from Mexico´s Federal Government and from State and local authorities. Dyna de Mexico also has all the environmental permits awarded by the Secretariat of Environment and Natural Resources, Mexico (“SEMARNAT”), such as the environmental Impact Document, Land Use Change, Water Use, Waste Management, and Explosives Use Permits. The SJG Mine has been in operation since 2016.

1.4 History

Exploration and mining activity in the SJG Mine area started in the early 1800s. During the next eighty years, >60 gold occurrences were found. The most important were the La Purisima and La Prieta Vein structures, which hosted high-grade gold up to 3.4 ounces per ton Au. The peak period of production from the San José de Gracia camp was from 1890 to 1910, when an estimated 1 million ounces of gold were produced, mainly from the La Purisima and La Prieta Veins. Other smaller mines that contributed to the production were Palos Chinos, San Pablo, Tres Amigos, La Ceceña, La Union, La Parilla, Veta Tierra, Santa Rosa, Sta. Eduwiges, and Los Hilos. The mining activities halted in 1910 due to the Mexican Revolution. Mining resumed in the 1970s when the first road to the SJG Mine was opened, allowing Compañia Rosarito to begin producing gold from the Palos Chinos, San Pablo, Tres Amigos, and La Union Mines.

By 1977, the underlying owners of mining concessions and subsequent vendors to Minera Finisterre SA de CV. (“Finisterre”) succeeded in acquiring control of most of the area and built a 70 ton per day flotation process plant. Modern geological surveys of the area were completed in the 1990s by ASARCO and Industrias Peñoles. Finisterre subsequently acquired the Property through option agreements with the underlying vendors and continued exploration work and built a 200 ton/day concentrator. Golden Hemlock Explorations Ltd. (“Golden Hemlock”) obtained an option to acquire majority control of Finisterre and commenced work on the Property in 1997. This work was performed for Golden Hemlock and Finisterre by the company Perforaciones Quest de Mexico (“PQM”) under contract to Finisterre and consisted primarily of core drilling, along with trenching and mapping. A 63-drill hole program totaling ~6,000 m was completed in 1997. In 1998-1999, Pamicon Developments Ltd. (“Pamicon”) examined the results of the 1997 drilling program, including PQM’s work, in order to calculate potential Mineral Reserves developed by the drilling and to review the general status of the Property.

Mining activity in the San Pablo area is a relatively recent event with the majority of the work and exploration completed since the 1980s. The Mineral Resource area outcrops prominently along the

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edge of a resistant gossanous hilltop, known as the “Gossan Cap.” In 1992 and 1997, the Gossan Cap drew the attention of companies such as Peñoles and Golden Hemlock, where they focused their work primarily on completing shallow drill holes near the top of the ridge and just beneath the Gossan Cap.

In the first half of 1999, DynaResource and its agents arranged to collect samples for metallurgical testing. DynaResource formed DynaResource de Mexico Inc. (“Dyna de Mexico”) in June 2000 to acquire and consolidate ownership of SJG Project area. By December 2003, Dyna de Mexico had completed the acquisition of and consolidation of 100% of the SJG Project area from Golden Hemlock and Finisterre, with the sole exception of the San Miguel mining concession.

1.5 Geology and Mineralization

Geologically, the SJG Project is located on the west slope of the Sierra Madre Occidental and within the Northwestern Gold-Silver Epithermal Deposits Belt of Mexico that runs from the Eje Neovolcanico to the USA-Mexico border. The SJG Mine is in the west side of the Sierra Madre Occidental Volcanic Field, which is characterized by andesite in the Lower Volcanic Series and by rhyolitic tuffs, flows and ignimbrites in the Upper Volcanic Series.

The geology of the SJG Project consists of a sedimentary sequence of Upper Paleozoic (Carboniferous) age rocks. This lithologic sequence includes shales, sandstones, limestones and conglomerates, all of which are highly folded and faulted. The sedimentary sequence has an approximate thickness of 800 m, its best exposure is in the eastern edge of the SJG Project area.

Sedimentary basement is overlain by calc-alkaline volcanic rocks of the Lower Volcanic series. The volcanic rocks are generally divided into a basal sequence of feldspar-bearing rhyodacite crystal tuffs and flows grading upwards to a thicker sequence of andesite flows, tuff breccias and related sills.

Higher elevations of the SJG Project Property, particularly along its western edges, preserve outcrops of rhyolite ignimbrite and tuffs of the Upper Volcanic Series. These are resistant rock types that most likely function as a cap to mineralization. Three types of intrusive rocks have been mapped to date in the SJG Project area: 1) stocks and plugs of quartz feldspar porphyry located near Tres Amigos, possibly co-magmatic with rhyodacite tuffs; 2) sill-shape diorite porphyry occurring in the basement sedimentary rocks, close to the contact with overlying Lower Volcanic Series rocks; and 3) mafic dikes that cut all units and function as possible ‘feeders’ to the Upper Volcanic Series Hornillos and Navachiste Formations.

Alteration at the SJG Project is laterally and vertically zoned from discrete zones of silicification to broad zones of illite/clay alteration with increasing elevation and (or) distance from the main feeder structures. Faulting and tilting of the mineralized system have affected the surface distribution of alteration and, in general, has exposed deeper portions of the system in the northeast and shallower, more distal portions in the southwest part of the Property.

The SJG Mine itself is located within the Sierra Madre Occidental (“SMO”), together with the majority of hydrothermal deposits in Mexico. Deposits located in this trend are typically dominated by quartz veins that trend northwest-southeast and southwest-northeast, and thicknesses

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ranging from 1.5 to 3.0 m. Gold mineralization at the Mine is hosted within andesite and rhyodacite of the Lower Volcanic Series (LVS) and by underlying Paleozoic sedimentary rocks.

Mineralization occurs as fault breccia veins and crackle breccias that exhibit multiple stages of reactivation and fluid flow, as indicated by crustiform/colloform textures and cross-cutting vein relationships. Locally, veins exhibit sharp, clay gouge hanging wall and footwall contacts with slickensides, indicating reactivation of structurally hosted veins subsequent to mineralization. Gold grades can also be carried within the mineralized halo adjacent to the principal veins as quartz-chlorite stockworks. It is this latter style of mineralization that may hold the greatest potential on the SJG Mine Property. In addition to vein-hosted mineralization, broad zones of unmineralized clay alteration, developed southwest of the main mineralized trends, may overlie undiscovered, disseminated gold mineralization at depth.

1.6 Exploration, Drilling and Sampling

Although there are indications of mining activities since beginning of the 20th Century, modern explorations works started in 1977 when Minera Finisterre SA de CV (“Finisterre”) signed an option agreement for the mining concessions with the owners, Finisterre acquired control of most of the mining district and installed a 70 tpd flotation process plant. In the early 1990s, ASARCO and Industrias Peñoles started a modern geological surveying in the area and Finisterre performed some exploration work, but most of its financial resources were expended to build a 200 tpd concentrator. In 1997, Golden Hemlock Exploration Ltd. (“Golden Hemlock”),a Canadian Mining Company, obtained an option to acquire most of the control of Finisterre. The exploration and development work performed for Golden Hemlock and Finisterre by Perforaciones Quest de Mexico (“Quest”) consisted of core drilling, trenching and mapping. A 63 diamond drill hole program totaling ~6,000 m was completed in 1997. In 1998-1999, Pamicon Development Ltd (“Pamicon”), a Canadian Mining Company, examined the Quest drill results, in order to calculate mineral resources and review the general status of the Property. The results of this examination were presented in a report dated September 1999. Subsequently, during the first half of 1999, DynaResource and its agents arranged to collect samples for metallurgical testing.

DynaUSA began conducting exploration activities in the SJG Project area in 1999; and, since June 2000, this work has continued under the auspices of Dyna de Mexico. These activities have included: geological mapping and mineral prospecting; geochemical stream sediment, soil and rock sampling; underground and surface rock chip sampling, multi-spectral satellite imaging surveys; bulk sampling for metallurgical testing; and ground magnetics, induced polarization and natural source magneto-telluric surveys; and drilling.

In total, six drilling program have been completed on the SJG Project since 1992. Historical programs were completed in 1992 and 1997. Dyna de Mexico completed drilling programs in 2007-2008, 2009-2011, 2021-2022, and 2023-2024. Overall, 595 diamond drill holes totaling 595,040 m have been completed at SJG. See Section 7 of this Report for drilling details and results.

It is the QP’s opinion that sample preparation, security and analytical procedures for the SJG Project’s recent drill programs were adequate, and that the data are of suitable quality and satisfactory for use in the current Mineral Resource Estimate. Future drill hole sampling at the Project should include the insertion of certified reference materials (“CRMs”) and blanks at a rate of ~1:20, the inclusion of field and coarse reject duplicates in QA/QC protocol, and to duplicate

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umpire sample a minimum of 5% of all future drill core samples at a reputable secondary laboratory.

It is also recommended to follow-up QC sample failures on receipt of assay results, and liaise with the lab promptly about increased QC sample failure rates to ensure issues are addressed early. Sample batches HMS21001226, HMS22000022 and HMS24000126 should be re-assayed to confirm drill core sample results.

1.7 Data Verification

Verification of the SJG Project data used for the current Mineral Resource Estimate was undertaken by the QPs, and included a site visit, due diligence sampling of the 2010 to 2023 drill holes, verification of recent and historical drilling assay data, and assessment of the available historical and recent QA/QC data. Verification was undertaken utilizing data supplied by DynaResource and data downloaded directly from the Bureau Veritas lab online portal. Verification of the data collected at SJG reveals no current material issues with the data and the QPs consider that there is acceptable correlation between assay values in DynaResource’s database and the independent verification samples collected and analyzed at Actlabs in Ancaster, Ontario.

1.8 Mineral Processing and Metallurgical Testing

Metallurgical test work confirmed the mineralized ore at SJG Project to be amendable to recovery of gold, copper and other elements by flotation concentration. Current processing by conventional flotation of milled ore, involving a multi-stage circuit with a rougher/scavenger stage followed by a 2-step cleaner stage, has proven to be the most economically effective. Gravity concentration is also utilized in the final flotation of tailings and current process plant expansion includes the installation of gravity concentration within the milling circuit.

1.8.1 Hazen Research, Inc. Metallurgical Testwork 1999

Metallurgical testwork completed by Hazen Research, Inc on the Tres Amigos Deposit is presented in the “Process Development for the Tres Amigos Orebody” report, dated August 1999. The Hazen report highlights the following:

 Mineralogical examinations indicate sulfide mineralization is fairly coarse-grained;

 Initial gravity beneficiation/flotation testwork on bulk mineralized material samples indicated up to 80% recovery of feed gold into gravity concentrates while maintaining a minimum concentrate grade of 100 g/t Au;

 Existing tailings samples with feed grades of 3 to 8 g/t Au returned similar recovery results, but had to be cleaned to produce a final concentrate with >100 g/t Au;

 Overall gold recoveries into gravity cleaner concentrate in excess of 50% of total feed gold;

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 Flotation tests on primary mineralized material samples indicated recoveries of 85 to 90% of feed gold into rougher concentrates;

 Recoveries after cleaning dropped to 65 to 75% range when >100g Au/t grade;

 Combination circuit of gravity pre-concentration stage with flotation on gravity tailings indicated potential recovery >90% of feed gold into gravity concentrate, rougher flotation and cleaner flotation concentrates while maintaining a 100 g/t Au grade in all concentrates; and

 Suggest Tres Amigos will respond positively to beneficiation processes of gravity separation and flotation.

1.8.2 Pilot Plant Gravity-Flotation Processing System 2003 to 2006

The two-stage gravity flotation circuit was utilized by Dyna de Mexico during a pilot operation between 2003 and 2006, producing 18,250 ounces of gold from 42,000 tonnes of process plant feed processed, from selected high-grade “pockets” of ore.

Despite being a small-scale operation, results are representative of an underground mining operation with recoveries of ~90% of the mineralization.

1.8.3 Liem Consultores Metallurgy Testwork 2024

Additional metallurgical testwork was completed by Liem Consultores of Zacatecas, Mexico, to determine metallurgical behavior of the minerals within the stock mineralized material and process plant feed, and within the mineralized material from the La Mochomera Deposit.

Summary of testwork is as follows (Table 1.1):

 Process Plant Feed: Final concentrate grade of 78 g/t Au with 76.6% recovery;

 Stock Mineralized Material: Final concentrate grade of 44 g/t Au with 84% recovery;

 Testing at higher pH of 9.0 resulted in decreased gold and reduced recovery;

 Mineralogical review of process plant feed showed 87% of gold is associated with pyrite; and

 Native gold and electrum are also present.

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Table STYLEREF 1 \s 1. <br>Summary Grades and Final Process Recoveries
Sample Type	Head Au Grade<br>(g/t)	Concentrate Au Grade<br>(g/t)	Recovery<br><br>Au<br>(%)
Process Plant Feed	4.10	78.19	76.6
La Mochomera	0.62	73.00	73.0
Mineralized Material Ore	3.83	86.30	86.3
Stock pH 9	3.83	72.20	72.2

Source: Liem (2024)

1.8.4 Sepro Mineral Systems Corp.

Sepro Systems Inc. in Vancouver, B.C. completed testwork on 9 kg samples from each of the La Mochomera, San Pablo and San Pablo Sur Deposits. Sample head grades were as follows:

 La Mochomera: 6.04 g/t Au;

 San Pablo Sur: 13.7 g/t Au; and

 San Pablo: 13.3 g/t Au.

Samples were ground to a P80 of 66 to 73 µm and fed to gravity concentration where the concentrate was panned and assayed to confirm mineral/metal content. The combined gravity and concentrate tailings were treated with flotation.

Summary of testwork is as follows:

 La Mochomera: 32.7% Au recovery at 902 g/t Au. Flotation recovered an additional 63.9% Au with an overall recovery of 96.5%;

 San Pablo Sur: 33.8% Au recovery at 1,792 g/t Au. Flotation recovered an additional 62.6% Au with an overall recovery of 96.4%; and

 San Pablo: 23.8% Au recovery at 2,019 g/t Au. Flotation recovered an additional 71.4% Au with an overall recovery of 95.2%.

1.8.5 Dyna de Mexico 2025

Dyna de Mexico currently operates a flotation process plant with nominal capacity of up to 800 tpd. In 2024, the process plant produced 50 to 70 tonnes of concentrates daily with head grades at 4 to 5 g/t Au, concentrates at 50 to 70 g/t Au, and an average process recovery of 76% Au.

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1.9 Mineral Resource Estimate

This Mineral Resource Estimate (“MRE”) of SJG Project was initially conducted with MineSight™ software (version 16.10) by SPM, and was reviewed and accepted by Yungang Wu, P.Geo. and Eugene Puritch, P.Eng., FEC, CET of P&E Mining Consultants Inc. (P&E) of Brampton, Ontario. Messrs. Wu and Puritch are independent of DynaResource as defined in S-K 1300. The effective date of this MRE is March 24, 2025.

DynaResource provided a database of 627 diamond holes totaling 126,736 m in comma separated value (“csv”) format from several drilling programs. A total of 393 drill holes totaling 80,345 m intersected the Mineral Resource domain wireframes. Extra data were provided by DynaResource, including surveys of tunnels, mining stopes, and other underground developments from various mining activities. The database contained 65,648 Au assays, which were verified and a few minor errors corrected.

Gold mineralization at SJG is found in many veins, of which only 11 have been considered for Mineral Resource estimation, due to their superior continuity and proven development viability based on current production data. Using drilling data, cross-section modeling generated polylines were utilized to create 11 3-D mineralized wireframes, each assigned unique rock codes. The wireframes were used as constraining boundaries for rock coding, statistical analysis, and compositing limits during Mineral Resource estimation.

To fully deplete the previously mined areas, the Authors created “Cookie cutter” polylines following the available underground mined shapes. Block model volumes captured within the mined depletion “cookie cutter” lines that were projected onto the Mineral Resource block model were depleted from the MRE.

To regularize assay sampling intervals for grade interpolation, drill hole intervals within vein wireframes were composited to 1.0 m lengths. Grade capping analyses were undertaken on the 1.0 m composite values in the database and a capping value of 90 g/t Au was applied to all domains with a total of seven composites capped.

Variography analyses were performed by the QPs using the gold composites within each individual vein wireframe as a guide to determining a grade interpolation search distance and ellipse orientation strategy. Continuity ellipses based on the observed ranges were subsequently generated and utilized as the basis for grade estimation search ranges, distance weighting calculations, and Mineral Resource classification criteria.

The bulk density used for this MRE is 2.68 t/m3, which is derived from the 2012 Technical Report of the SJG Project. A P&E QP collected 12 samples on a February 2025 site visit, which averaged 2.74 t/m3.

Mineral Resource grade estimation was restricted to the defined veins. All block grades were interpolated using Inverse Distance Cubed (“ID3”) anisotropic weighting in two passes. The first pass used 3 to 12 composites from two or more drill holes, and the second pass utilized 2 or more composites from 1 or more drill holes to ensure the majority of grade blocks within the defined veins were estimated. A Measured Mineral Resource was classified for the domains with a drill hole spacing of <30 m. Indicated Mineral Resources were classified for all domains with a drill

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hole spacing of ≤65 m. Inferred Mineral Resources were classified for all remaining grade blocks within the mineralized veins domains.

The MRE exclusive of Mineral Reserves is stated in Table 1.2.

Table STYLEREF 1 \s 1. <br>Mineral Resource Estimate at 2.0 g/t Au Cut-off (1-6)
Zone	Classification	Tonnes<br><br>(k)	Au<br><br>(g/t)	Au<br><br>(koz)	Metallurgical<br><br>Recovery
SPUM	Indicated	286	6.74	62	80%
	Inferred	51	4.29	7
TA	Inferred	46	4.45	7
Total	Indicated	286	6.74	62
	Inferred	97	4.37	14

Notes:

The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
The Mineral Resource is estimated using Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations.
Mined areas as of December 31, 2024, were depleted from the block models.
Mineral Resources are exclusive of Mineral Reserves.
All numbers are rounded.

The QPs for this Report consider the MRE block model and Mineral Resource classification to represent a reasonable estimation of the total Mineral Resources for the SJG Project in regards to compliance with: generally accepted industry standards and guidelines; the methodology used for grade estimation; the classification criteria used; and the actual implementation of the methodology in terms of Mineral Resource estimation and reporting. The Mineral Resources have been estimated to conform with the requirements of the CRIRSCO Definitions in addition to the guidelines prepared by the Securities and Exchange Commission under the S-K §229.1300 to S-K §229.1305 regulations. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

1.10 Mineral Reserve Estimate

Mining shapes were provided by DynaResource and average total dilution of 20.9% (10.8% internal, 10.1% external), with a 5% mining loss applied. Historical costs summaries, mining contracts and site budgets were used to generate costs and cut-off grades for the mining plan. An economic cut-off value of $140/t is used to define ore ($99 for mine operation, $23 for process plan operations and $18 for G&A), with a marginal cut-off of $90/t used where mineralized material would otherwise be included in the mine plan as waste generates sufficient revenues to cover transport, processing and backfilling costs.

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Smelter terms for gold are $20/oz for refining, $99/dmt for treatment, $25/wmt for transport, and the payable ratio is 94.375% for the historical average grade of shipments from site (~50 g/t Au). Although penalties for deleterious elements exist, historically no penalties have been assessed.

The Mineral Reserve for the SJG Project is summarized in Table 1.3.

Table STYLEREF 1 \s 1. <br>San José de Gracia Mineral Reserve Estimate (1-9)
Resource Classification	Tonnes<br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Measured	981	5.94	187.2
Indicated	435	4.74	66.3
Measured & Indicated	1,416	5.57	253.5
Waste	192	-	-
Reserve<br><br>Classification	Tonnes<br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Proven	1,114	5.23	187.2
Probable	493	4.18	66.3
Proven & Probable9	1,607	4.91	253.5

Notes:

Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.
Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.
Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.
Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76-80% for Au
An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.
Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.
The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.
Totals may not sum due to rounding.
Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.

1.11 Mine Design, Optimization and Scheduling

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Due to the thickness of the veins, full-face drilling results in excessive dilution. As such, for production, the ore is initially blasted into the lift below prior to the footwall being slashed out to accommodate the machinery necessary for extraction of the next lift up. This action results in the mining method being a hybrid of textbook cut-and-fill and resue mining. For simplicity, this method will be referred to throughout as “Cut-and-Fill”. Access levels are nominally spaced 15 m apart, with a 3 m thick pillar left below next upper level to provide stability and prevent the ingress of unconsolidated backfill from the stope above entering the active mining areas. Ore is loaded into haul trucks at loading bays in the ramp on each level. Additional backfill requirements are met by back-hauling waste to stopes and filling with an LHD. Mining operations at the Project are performed by contractors with company oversight.

A detailed geotechnical assessment of the mine plan has been performed, and geotechnical design input into the mine plan was provided based on the domains, stability analyses and experience at the DYNA operation and other similar mines. The performance of the cut-and-fill stopes was evaluated using empirical design methods. The results suggest that the planned stope dimensions are achievable using conventional mining practices.

Development rates in the mine plan average ~25 mpd from 2025 to 2028, with all planned capital development complete by EOY 2029. A total of 37.5 km of lateral development and 1.8 km of vertical development are included in the mine plan. The mine plan has an average production rate of ~230 ktpa and is summarized in Table 1.4.

Table STYLEREF 1 \s 1. <br>Mine Plan Production Rate
Year	2025	2026	2027	2028	2029	2030	2031	Total
Mined Tonnes (k)	231	232	243	232	235	216	217	1,607
Contained Gold (koz Au)	36.1	36.7	42.8	39.9	38.3	30.8	29.0	253.5
Head Grade (g/t Au)	4.86	4.92	5.49	5.33	5.06	4.43	4.14	4.91
Lateral Development (m)	8,770	8,176	7,544	8,708	4,312	-	-	37,510
Vertical Development (m)	435	332	323	459	281	-	-	1,829

1.12 Processing and Recovery Methods

The SJG process plant has a nominal milling rate of 800 tpd and consists of a conventional two-stage closed crushing circuit, a mill feed system for three primary grinding mills operated in closed circuit with hydrocyclones, a multi-stage flotation process for gold-pyrite and gold-chalcopyrite sulfide concentrate, and a tailings Sepro SB750 centrifugal gravity concentrator. The final flotation concentrate is thickened, dewatered, and bagged for shipping to a smelter along with the gravity concentrate.

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1.12.1 Tailings Water Management

Flotation tailings are pumped to a wet tailings area located 360 m northeast of the process plant at a 73 m elevation. The tailings are decanted, and the collected process water is returned to the plant’s internal water distribution system.

Based on a 629 Mtpd (693 sdtd) mill processing rate, pumping to the tailings area is at a rate of 391 USGPM (88.7 m3/hr). This is based on operational data of 2.6 solids S.G, 25% Slurry density and 1.16 Slurry S.G. The resultant placed-tailings will decant to 80% solids or 20% in-situ moisture. Decanted recycled water via the berm and water collection system is gravity fed back to the process plant at a rate of 317 USGPM (72 m3 /hr). Water make-up for the mill operation only is 29 USGPM (6.6 m3/hr).

1.12.2 Process Plant Water Supply

Water for the processing is collected from a borehole located west-southwest from the process plant. The supply is complete with a pump and level and flow control system. The borehole is reportedly self-charging, and no instances of low water flow have been reported. During the wet system, water is abundant in the valley and collected accordingly.

1.12.3 Products and Recoveries

For the year 2024, average gravity and flotation process recovery was 76% with two separate gravity and flotation concentrates bagged and shipped to off-shore smelters via the purchaser, Ocean Partners.

1.12.4 Sampling and Analysis

Plant sampling is prepared and assayed on-site at a metallurgical and assay facility. Plant sampling is limited and only the feed, tailings, and concentrates are manually sampled by the operators, sporadically during the day.

The laboratory has full sample preparation equipment including crushers, riffles, screens and drying ovens for mine and mill samples. The assay laboratory is equipped with an atomic adsorption spectrometer unit (“AAS”), micro-balance, and fire assay equipment.

The facility has 21 personnel dedicated to analysis and operates 24 hours per day.

1.13 Infrastructure

DynaResource’s operation requires a good deal of independence from publicly provided infrastructure such as roadways, road maintenance, public transportation, and municipal services. Most of these services and related infrastructure are provided by the mine operation.

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Within the San José de Gracia Village limits and <1 km from DynaResource’s offices, there is a 665 m (2,200 ft) long airstrip surfaced in pea-sized gravel ~20 m wide. The strip is suitable for single engine aircraft.

Currently active mine portals are located ~6 and 7 km from the Village of San José de Gracia. The mine offices, camp, and process plant are located immediately adjacent to the Village. The active tailings storage facility (“TSF”) is located 260 m from the process plant. Local roadways to the mines are sufficient for the transportation of material in 20 tonne capacity double axel trucks.

A 75 km power line from the La Estancia area of the Municipality of Sinaloa de Leyva to the SJG Project has been installed by the Comisión Federal de Electricidad. Dyna has a delivery contract guaranteeing 1,460 kW. Average cost per kWh is $0.13 with adjustments for peak usage. During power outages, the process plant can be operated using two diesel powered generators providing a total of 1,500 kW. Electricity for underground operations is provided by generators located at the two mine portals.

The water source for the SJG camp is from two water wells located close to the river that runs just west of the Village of San José de Gracia. Dyna de Mexico has obtained the water concession rights through CONAGUA for this water source, which provides for usage of 1,000,000 m3 per year. DynaResource operates a small potable water plant and access is shared with the community.

There are three main sources of wastewater associated with the Project: the process plant including the laboratory, the mines, and the man camp. The process plant is currently operating as a zero-discharge facility with make-up water sourced from the companies supply wells. Sixty percent of the water associated with the tailings is recovered and returned to the process plant. Laboratory waste of all types including liquids is streamed into the process plant water supply. Mines in the district are notably dry. Waste water from the camp facilities is disposed of through a septic tank and percolation system. Disposal of residual solids is managed through a licensed contractor.

Dyna de Mexico manages a closed, dry camp adjacent to their process plant which provides housing, meals and basics services to a portion of their employees. The camp is connected to reliable internet (Starlink). The mine site area camp maintains facilities which can accommodate about 65 persons in 32 rooms. Mine contractors manage their own camps for their personnel. Out of a total workforce of 223 employees, 143 reside in SJG. Dyna de Mexico’s camp is closed, and entry is restricted by a guard and gatehouse that are staffed 24 hours per day. Additional security is stationed at the explosive magazines.

Offices are available in the camp environment to support human resources, purchasing, on-site accounting, community relations, safety, engineering, geology, and surveying. There is always a paramedic on-site. A fully equipped ambulance is available on-site in case of emergency. In case of more dire circumstances, air ambulance service is available from Culiacan. Additionally, DynaResource has built and equipped an 8-room medical clinic that is located within the Village

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of San José de Gracia. This facility has been donated to local authorities and is staffed by a full-time physician and currently dental services are being provided.

Tailings are pumped uphill from the process plant to the TSF with a 10 x 15 cm positive displacement pump. The facility is a concrete buttressed and HDPE-lined impoundment using cycloned coarse material to contain fines and slimes that settle and dewater in the center of the impoundment. Currently 5.5 ha of the permitted area is lined. Decanted water is recovered by rafted pumps and returned to the process plant. The current Phase III is permitted to occupy a total of 6 ha with the follow-on Phase IV to expand to 11 ha (also permitted). Phase III has a capacity of 1.3 million tonnes of material or ~52 months of operation.

1.14 Marketing Summary

Gold is introduced to the market from three sources: primary gold mining, base metal (notably copper) mining, and recycling. Formal mining companies (national, public, and private) represent most of the world gold production. Due to the expense of exploration and sustainable and economically sound development, production and final reclamation, these companies do not react rapidly to changing economic conditions.

At the SJG Project, the base metal flotation process recovery to concentrate technique is utilized. The concentrate is bagged and sent to a smelter for final gold recovery and payment.

Overall, world gold demand for various purposes was ~4,500 to 4,900 tonnes for the last four years and was closely matched by supply from mine production, hedging and recycling. When demand for gold as a safe-haven asset rises, mainly due to economic uncertainty or inflation, prices tend to increase unless offset by higher supply from mining or recycled gold. Conversely, if supply outpaces demand, prices may decline. The gold price, unlike other industrial metals, is not determined purely by the balance between supply and fabrication demand, but rather by the elevated levels of investment holdings, which are functions of geopolitical and economic outlook. Forecasting metal prices over a five-year horizon involves considerable uncertainty, due to various economic, geopolitical, and market factors. However, many sources have provided projections for gold and other metals. These projections are commonly incorrect, due to the vagaries of the financial markets, where large consumers tend to affect prices.

Dyna de Mexico has recently completed a plan of operations forecasting mine and process plant production through to calendar year 2029. Currently, an amended contract is in place for the purchase of all gold concentrates from the SJG Project. Concentrates will be delivered to the buyers warehouse in Manzanillo, Colima, Mexico. Concentrate typically runs >50 g/t Au and a payable factor 94.75% is most common. There is a slight credit for silver content.

The corporate projections of ~155,000 payable gold ounces at US$2,500/oz for 2025 to 2029 are a very conservative and are based on the relatively small quantity of gold produced at the SJG Project. Under the existing offtake agreement, the company will be able to sell all its production at or above a prevailing price that will be most likely above the figure used in its internal forecasts.

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1.15 Environmental Studies, Permitting and Plans, Negotiations or Agreements with Local Individual and Groups

With respect to permit requirements for mineral exploration, mining and processing in Mexico, the most relevant applicable laws, regulations and technical requirements are outlined in the Federal Mining Act. The Regulations of the Act, the Federal Environmental Protection and Ecological Equilibrium Act, and its Regulations, the Federal Sustainable Forestry Development Act and its Regulations, the Federal Explosives and Firearms Act, the National Waters Act and the Mexican Official Norm 120 (NOM-120) are applicable.

For exploration proposals, holders of mining concessions in Mexico are required to make application to Federal Secretariat of the Environment and Natural Resources (“SEMARNAT”) via a “Notice of Commencement of Exploration Activities” or “Preventive Exploration Notice (“IP”) in accordance with the guidelines of the Mexican Official Norm 120 (“NOM-120”).

If contemplated mineral exploration activities fall outside of the parameters defined by SEMARNAT, a “Change of Land Use Permit Application” (“CSUP”) is required to be filed under the guidelines of the Federal Sustainable Forestry Development Act and its Regulations. To meet the requirements for issuance of CSUP, the applicant must file together with the CSUP Application a Technical Study (“A Technical Justification Study”) to justify the change of land use from forestry to mining, to demonstrate that biodiversity will not be compromised, and that there will be no soil erosion or water quality deterioration on completion of the mineral exploration activities.

For the use of explosives materials in exploration or mining activities, an Application for General Permit for Use, Consumption and Storage of Explosive (“GPCSE”) is required to be filed at the offices of the Secretariat of National Defense (“SEDENA”).

Under the Federal Mining Act, holders of mining concessions in Mexico have the right to the use of the water coming from the mining works. Certification access to other water resources and (or) issuance of water rights concessions are required from the National Water Commission (“CONAGUA”) under the guidelines of the National Waters Act.

As a pre-requisite for issuance of an CSUP, Article 118 of the Federal Sustainable Forestry Development Act provides for the posting of a bond to the Mexican Forestry Fund for remediation, restoration and reforestation of the areas impacted by the mineral exploration and exploitation activities.

As a pre-requisite for approval of operations, the Federal Environmental Protection and Ecological Equilibrium Act and its Regulations require the posting of a financially-assured bond to guarantee remediation and rehabilitation of the areas impacted by mining activities.

SEMARNAT is the office of the Federal Government of Mexico responsible for the review and issuance of a CSUP, the review of a Technical Justification Study, and the filing of NOM-120, which is a notice to SEMARNAT. The Federal Attorney´s Office for the Protection of the Environment (“PROFEPA”) is the enforcement branch of SEMARNAT that is responsible for the monitoring and enforcement of environmental laws and regulations.

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Processing time for review and approval of a CSUP Application and Technical Justification Study is typically four months. Processing time for review and approval of an environment permit – Manifesto Impacto Ambiental (“MIA”) varies depending on workload of SEMARNAT regional office where application is filed, but is typically six months.

CONAGUA is the office responsible for certification of water rights and issuance of water rights concessions. Processing time for issuance of a Water Rights Concession by CONAGUA is ~6 months.

Dyna de Mexico has sought and obtained all required environmental permits, temporary land occupation rights and consent letters from the regulatory agencies, local municipalities, and the State of Sinaloa required to complete the recent mining, production, exploration, and drilling activities on the four main deposit areas at SJG. Dyna de Mexico is expected to be required to obtain further permits to complete additional exploration activities and future mining and processing activities. Limited permit applications are anticipated to be applied as a result of the modestly altered 2025 processing strategy.

The SJG Project Mine holds the following Federal Permits and registrations:

 CONAGUA002, Exploitation of Underground water, 2013.

 LAU Processing Plant, 2019.

 CONAGUA003, Exploitation of Underground water, 2015.

 Exemption underground exploitation San Pablo Mine, 2013.

 Exemption Environmental Impact Manifest, SEMARNAT Resolutive, Underground Exploitation 080613 Ad 2013.

 Exemption Environmental Impact Manifest Resolutive SEMARNAT, Rehabilitation, Maintenance and Re-use, Flotation Plant 2013.

 Exemption, Underground exploitation, Re-use, 2013.

 Preventive Report (IP), Mining Exploration, 2018.

 Register in SEMARNAT, Dangerous Waste.

 Exemption, Resolutive to Presentation of MIA, Underground Exploitation, 082115.

 Application of Exemption MIA, Mill Plant and Tailings Dam.

 Summary of Environmental Updates, San José de Gracia Mine.

 Forest, Change of Land Use, Exploration 2010.

 Environmental Impact Statement (MIA) Exemption.

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 Justified Technical Studies for Mina San Pablo, La Union, Purisima, Tres Amigos.

 Act of Land Use Change (CUS).

 Explosives Use and Storage Permit.

 All Labor and Securities permitting.

1.16 Capital Costs, Operating Costs and Financial Analysis

1.16.1 Capital Expenditures

Capital cost estimates include: mine development sustaining capital; additional development costs; external G&A; other sustaining CAPEX; IVA costs and credits; mining duties / withholding taxes; site infrastructure; process plant filtration presses and closure / reclamation costs. The LOM total capital cost, for the years 2025 to 2031, is estimated at $81.4M, averaging $50.67/t processed. A breakdown of these estimates is provided in Table 1.5.

Table STYLEREF 1 \s 1. Summary of Total LOM Capital Costs (USk)
Item / Year	2026	2027	2028	2029	2030	2031	Total
Sustaining Capital (U/G Devel)	4,925	4,290	5,019	2,908	0	0	22,148
Additional Development	774	0	750	0	0	0	2,675
External G&A (Owner's Cost)	1,486	1,486	1,486	1,486	1,486	1,486	10,400
Sustaining Capital (Other)	1,990	4,104	3,900	3,900	3,900	1,700	22,684
IVA Movement	-6,434	-6,434	-6,434	0	0	0	-16,442
Special Mining Duty/Withholding Taxes	2,622	3,503	3,098	2,835	1,750	1,485	17,705
Investment In Process Plant	151	151	151	151	0	0	2,423
Investment In Site Infrastructure	1,790	2,404	2,200	2,200	2,200	0	14,399
Investment In Filtration Presses	0	0	0	0	0	0	889
Reclamation Costs	0	0	0	0	0	4,547	4,547
Total CAPEX	7,303	9,503	10,170	13,480	9,336	9,218	81,427
CAPEX/t (US/t)	31.48	39.14	43.75	57.24	43.28	42.38	50.67

All values are in US Dollars.

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1.16.2 Operating Expenditures

The operating cost estimates (“OPEX”) include the cost of supervisory, operating and maintenance labor; operating consumables, materials and supplies, haulage and processing. The yearly operating cost varies from a high of $164.49/t, in 2030, to a low of $152.08/t, in 2025, averaging $155.85/t, LOM. A summary of the average operating cost estimates for the DynaResource’s SJG Project is provided in Table 1.6.

Table STYLEREF 1 \s 1. Summary of Average Operating Cost per Tonne Processed (/t)
Description
Underground Mining Cost
Additional Backfill Cost
Processing Cost
Site G&A
Total OPEX (US/tonne)

All values are in US Dollars.

1.17 Economic Analysis

Cautionary Statement – This Report is considered by the QP to meet the requirements of a Prefeasibility Study (“PFS”), as defined in S-K 1300 Standards of Disclosure for Mineral Projects, because the SJG Project is an operating mine. There is no guarantee that DynaResource will realize the results in this Report, because some future projections made in this Report may not be realized.

The key economic assumptions and results are summarized in Table 1.7. Under baseline scenarios of 5% discount rate and $2,500/oz Au, the overall after-tax NPV of the Project is estimated at $84.4M ($110.0M pre-tax).

Table STYLEREF 1 \s 1. <br>Key Economic Parameters
Parameter	Amount
Production mine life (years)	7
Production rate (tpd)	630
Production rate (ktpa)	230
Total production (kt)	1,607
Gold grade (g/t)	4.91

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Table STYLEREF 1 \s 1. <br>Key Economic Parameters
Parameter	Amount
Gold process recovery (%)	79.9
Gold smelting/refining (%)	94
Gold payable (koz)	190
Gold Equivalent payable* (koz)	190
Net Revenue ($M)	463.6
Sustaining Capital Costs ($M)	81.6
Operating Cost ($/t processed)	155.85
Operating Cost ($M)	250.4
Operating Cash Cost (US$/oz AuEq)	1,327
All-in Sustaining Cost (US$/oz AuEq)	1,720
Pre-Tax Cash Flow ($M)	131.6
Pre-Tax NPV (5% discount) ($M)	110.0
Income Taxes ($M)	32.1
After-Tax Cash Flow ($M)	99.5
After-Tax NPV (5% discount) ($M)	84.4

* 1 Total AuEq payable metal contains 2.6% Ag.

After-tax NPV sensitivities to ±20% changes in gold metal price, gold head grade, gold metallurgical recoveries, OPEX and CAPEX are presented in Figure 1.1.

Figure STYLEREF 1 \s 1. After-Tax NPV Sensitivity Graph

Source: This Report

The after-tax base case NPV’s is most sensitive to the gold metal price followed by gold metallurgical recoveries and gold head grades followed by OPEX, and then CAPEX.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

1.18 Recommendations

1.18.1 Introduction

A sequential phase approach is presented for recommended future work. The budget and program for the exploration and development activities recommended for completion in 2025 is presented in Table 1.8.

Table STYLEREF 1 \s 1. <br>Summary of Budget for Recommended Exploration and Development Programs in 2025
Exploration and Development Activity	Cost Estimate<br><br>($M)
Exploration and Mineral Resource Conversion Drilling (~15,000 m)	1.39
QA/QC	0.10
Bulk Density Investigation	0.03
Mineral Resource Estimation	0.15
Mine Design	0.10
Metallurgy	0.25
Subtotal	2.02
Contingency (15%)	0.30
Total	2.32

Note: Numbers may not add due to rounding.

1.18.2 Mine Exploration

The Authors recommend that ~15,000 m of underground drilling be completed to explore for new high-grade mineralization, confirm mineralized vein continuity, and convert Inferred Mineral Resources to Indicated and Measured Mineral Resources in the three main Tres Amigos, San Pablo and Mochomera mining areas. This work should include delineation of new mineralized structures adjacent to the active mining areas. The drilling should be completed from dedicated underground platforms and with a maximum drill hole length of 300 m. The All-in-Cost of this drilling is estimated to be $92.7/m for a total of $1.39M.

The specific objectives and targets of the recommended drilling are as follows. At Tres Amigos, 5,500 m of diamond drilling is recommended to target undefined and Inferred Mineral Resources. Also, this program would help define vein continuity laterally and at depth and confirm the presence of dominant structure and assess the Southeast extension of the Deposit in relation to a known regional-scale fault. In the San Pablo Northeast and Tres Amigos Southwest area, 4,300 m of exploration drilling is recommended to investigate whether mineralization is present in the unexplored area between these two deposits. At San Pablo, 2,350 m of diamond drilling is recommended to delineate new Inferred Mineral Resources in the San Pablo Veins below the 489 level. Some of these drill holes should be extended to define potential mineralization in a new structure, known at higher elevations as the Guadalupe Vein. At Mochomera, 1,300 m of drilling

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is recommended to convert Inferred Mineral Resources and also to define the northern limits of Level 480 at Mochomera and Level 470 of San Pablo.

1.18.3 Quality Assurance / Quality Control

Recommendation is made for future drill hole sampling at the Project to include the insertion of certified reference materials (“CRMs”) and blanks at a rate of ~1:20, the inclusion of field and coarse reject duplicates in QA/QC protocol, and to umpire sample a minimum of 5% of all future drill core samples at a reputable secondary laboratory. It is also recommended to follow-up QC sample failures on receipt of assay results and liaise with the lab promptly about increased QC sample failure rates to ensure issues are addressed early. Recommendation is made to re-assay batches HMS21001226, HMS22000022, and HMS24000126 to confirm drill core sample results.

1.18.4 Mineral Resource Estimation

Mineral Resource recommendations are as follows:

 Mineral Resource wireframes need to be developed only in areas with reasonable prospects for eventual economic extraction based on cut-off grades based on recent operating costs and process recoveries.

 Frequent bulk density measurements on 10% of mineralized assays.

 Depletion of historical workings by cookie cutter projections onto Mineral Resource blocks.

 Investigate grade capping by more than one method.

1.18.5 Mine Design

Mine design recommendations are as follows:

 Perform individual stope economic analyses to ensure viability;

 Utilize marginal cut-off grade in areas where adjacent working are viable;

 Optimize stope extraction sequence to maximize NPV;

 Perform trade-off analysis on backfill source (mined underground or surface quarry);

 Ensure all operating costs are included in cut-off calculation; and

 Develop various cut-offs for each mine area.

1.18.6 Metallurgy and Processing

The QP visited the SJG process plant between February 24 and 27, 2024 and confirms that it is operating at an acceptable level with required improvements underway and planned for 2025. Processing improvements and ongoing maintenance are priorities for the SJG management team and these initiatives will continue to improve process operation in terms of process steady state, minimize operational downtime, and increase and optimize recovery and concentrate production.

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Current and planned improvements include:

 Crushing circuit improvements to ensure consistent F80 feeds size for milling circuit.

 Improve overall circuit sampling and metallurgical balances to ensure monthly reconciliation.

 Installation of automatic samplers is recommended.

 Improve process plant feed split to the three primary grinding circuits as current manual gates for splitting feed and actual tonnage rates are unknown.

 Strategic installation of weightometers is recommended, preferably belt scales.

 Control loop with variable speed drives to ensure consistency to mill feed and avoid surges within the circuit.

 Gravity concentrators within the mill circuit.

 Flotation level control on cells including rougher cells no. 1 and no. 2.

 Revamp existing rougher and scavenger cells.

o Replace existing improper agitators with proper flotation impellers and diffusers.

o Improved air introduction into the cells via the shaft.

 Improve concentrate dewatering and filtering.

o Proper operation of concentrate thickener and existing chamber press to ensure and minimize resultant shipping moistures.

 Upgrade site security with cameras and new fencing around process plant and concentrate areas.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

2.0 Introduction

2.1 Terms of Reference and Purpose of the Report

P&E Mining Consultants Inc. (“P&E”) were commissioned on behalf of DynaResource Inc. (“DynaResource” or the “Company”) by its Interim Chief Operating Officer, Mr. David Keough, to complete a Technical Report Summary (the “Report”) in accordance with S-K 1300 on the San José de Gracia Project (“SJG Project” or “SJG Operation”), an underground gold mining and flotation operation located in the San José de Gracia Municipality, Sinaloa State, Mexico. The effective date (the “Effective Date”) of the Report is March 24, 2025.

The SJG Project is held under the name of the DynaResource’s wholly-owned subsidiary, DynaResource de Mexico, S.A. de C.V. (“Dyna de México”).

DynaResource is listed on the OTCQX as DYNR and must comply with the subpart 229.1300 – Disclosure by registrants Engaged in Mining Operations of Regulation S-K (S-K 1300).

2.2 Report Purpose

DynaResource commissioned P&E Mining Consultants Inc. (“P&E”) to prepare a Technical Report Summary (the “Report”) that presents the initial Mineral Resource Estimate and Mineral Reserve Estimate of the SJG Project, in accordance with the guidelines set forth by the Securities and Exchange Commission (“SEC”) under Regulation S-K, Subpart 1300. This Report marks the Company's first submission of a Mineral Resource and Mineral Reserve under SEC regulations, reflecting its commitment to transparency, compliance, and the provision of reliable information to the Company’s stakeholders. This Report aims to provide investors and other interested parties with a comprehensive understanding of the Company's Mineral Reserves, in order to support informed decision-making and fostering confidence in its operations and future prospects

2.3 Terms of Reference

The firms and consultants who are providing Qualified Persons (“QPs”) responsible for the content of the Report are P&E Mining Consultants Inc. and D.E.N.M. Engineering Ltd.

This Report presents Mineral Resource and Mineral Reserve Estimate for the SJG Project, and an economic assessment based on ongoing underground mining operations and a conventional processing circuit that produces gold concentrates with minor payable silver.

All units of measurement in the Report are metric, unless otherwise stated. The monetary units are in US dollars, unless otherwise stated. Mineral Resources and Mineral Reserves are reported in accordance with S-K 1300.

2.4 Site Visits and Scope of Personal Information

Mr. David Burga, P.Geo, representing P&E, completed a site visit between February 24 and 27, 2025. The purpose of this visit was to complete sampling of selected drill holes for assay data

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verification, check the location of select surface and underground drill collars and channel sampling sites, complete an underground tour, and meet with SJG Mine technical staff on-site. Mr. Burga collected 12 samples from 12 drill holes completed from 2010 to 2023 for verification of the drill core assay data. The assay results for the drill hole verification samples are presented in Section 9 of this Report.

Mr. David J. Salari, P.Eng., representing D.E.N.M. Engineering Ltd. (“D.E.N.M.”) visited the SJG processing facility between February 24 and 27, 2025. Meetings were held with Dyna de Mexico personnel to confirm all aspects of the processing parameters, including metallurgy, recovery, process details, operating costs, and project capital costs for 2025.

2.5 Information Source and References

Reports and documents listed in Section 2.5 and Sections 24 and 25 were used to support preparation of this Report. Additional information was sought from and provided by Dyna de Mexico personnel where required.

2.6 Previous Technical Reports

There have been no Technical Report Summaries completed previously for this Project under S-K 1300. The following historical Technical Reports have been prepared under NI 43-101 on the SJG Project:

 Espinoza, R. and Sandefur, R. 2012. Technical Report, San Jose de Gracia Project, Northern Sinaloa; Mexico. Technical Report prepared by Servicios y Proyextos Mineros de Mexico S.A. de C.V. for DynaResource de Mexico, S.A. de C.V., Effective date February 6, 2012, Report Date: March 28, 2012, amended December 31, 2012. 205 pages.

 Giroux, G. and Cuttle, J. 2012. NI 43-101 Technical Report on the San Jose de Gracia Project: Updated Resource Estimates on the Tres Amigos, San Pablo, La Union, La Purisima Zones, Northeast Sinaloa, Mexico. Prepared for DynaResource de Mexico S.A. de C.V. Effective Date September 5, 2011, Report Date: January 3, 2012.

 Cuttle, J. and Giroux, G. 2011. NI 43-101 Technical Report on the San Jose de Gracia Project and Resource Estimates on the Tres Amigos, San Pablo, La Union, La Purisima Zones, northeast Sinaloa, Mexico. Prepared for Goldgroup Resources Inc. with an amended date of February 28, 2011. 145 pages.

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2.7 Units and Abbreviations

Terms and abbreviations used throughout this report are listed in Table 2.1, and units of measurement are given in Table 2.2.

Table STYLEREF 1 \s 2. <br>Terminology and Abbreviations
Abbreviation	Meaning
$	dollar(s)
°	degree(s)
°C	degrees Celsius
<	less than
>	greater than
%	percent
µm	micrometer, micron
3-D	three-dimensional
AA	atomic absorption
AA-FA	atomic absorption with fire assay finish
AAS	atomic absorption spectrometry
Ag	silver
AISC	All-in sustaining cost
AMG	Aero MaxGold
As	arsenic
ASARCO	ASARCO Incorporated (American Smelting and Refining Company), now part of Grupo México S.A.B. de C.V.
ASGM	Artisanal and small-scale gold mining
Au	gold
AuEq	gold equivalency
Author(s), the	Author(s) of this Technical Report who are Qualified Person(s)
BSI	British Standards Institution
Bureau Veritas	Bureau Veritas Mineral Laboratoriesdegree Celsius
CAPEX	capital expenditures
CFE	Comisión Federal de Electricidad
CFM	Cubic feet per minute
CIM	Canadian Institute of Mining, Metallurgy, and Petroleum
cm	centimeter(s)
Company, the	the DynaResource Inc. company that the report is written for
CONAGUA	Comisión Nacional del Agua, Mexico’s National Water Commission
conc.	concentrate
CRIP	complex resistivity induced polarization
CRIRSCO	Committee for Mineral Reserves International Reporting Standards
CRM	Certified Reference Material
csv	comma separated value
CSUP	Change of Land Use Permit

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Table STYLEREF 1 \s 2. <br>Terminology and Abbreviations
Abbreviation	Meaning
Cu	copper
CUS	Land Use Change
D.E.N.M.	D.E.N.M. Engineering Ltd.
DDH	diamond drill hole
dmt	dry metric tonne(s)
DTP	dialkyl dithiophosphates
dmt	dry metric tonne(s)
Dyna de Mexico	DynaResource de Mexico, S.A. de C.V.
DynaResource	DynaResource Inc.
DynaUSA	part of DynaResource Inc.
E	East
EL	Elevation
EOY	End of year
ESG	Environmental, social, and governance
FeO	Ferrous oxide / iron (II) oxide
Finisterre	Minera Finisterre SA de CV.
ft	foot
FW	Footwall
g	gram
g/t	grams per tonne
G&A	General and administrative
Golden Hemlock	Golden Hemlock Explorations Ltd.
GPCSE	General Permit for Use, Consumption and Storage of Explosive
GRG	gravity recoverable gold
ha	hectare(s)
HDPE	high-density polyethylene
Hg	mercury
HW	hanging wall
ID	identification
ID3	inverse distance cubed
IMF	International Monetary Fund
IP	Preventive Exploration Notice
IP	induced polarization
IPL	Internation Plasma Labs Ltd.
ISO	International Organization for Standardization
IVA	Individual Voluntary Arrangement
k	thousand(s)
K-Ar	Potassium-argon
kg	kilograms(s)
km	kilometer(s)
koz	thousand(s) of ounces

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Table STYLEREF 1 \s 2. <br>Terminology and Abbreviations
Abbreviation	Meaning
Kt	Thousand(s) of tonnes
ktpa	Thousand(s) of tonnes per annum
kW	Kilowatt
L or l	liter(s)
L/s or l/s	liters per second
Lb	pound (weight)
level	mine working level referring to the nominal elevation (m RL), e.g. 4285 level (mine workings at 4285 m RL)
LHM	Long-haul-dump
LOM	Life of mine
LVS	Lower Volcanic Series
M	million(s)
m	meter(s)
m3	cubic meter(s)
Ma	millions of years
Masl	Meters above sea level
max.	maximum
MIBC	methyl isobutyl carbinol
min.	minimum
MIA	Manifesto Impacto Ambiental, environmental impact statement
mm	millimeter
Mo	Molybdenum
Moz	million ounces
MPa	Megapascal
mpd	Meters per day
MRE	Mineral Resource Estimate
Mt	mega tonne or million tonnes
Mtpa	mega tonne or million tonnes per annum
Mtpd	mega tonne or million tonnes per day
N	north
NE	northeast
NI	National Instrument
NOM-120	Mexican Official Norm 120, mandatory official Mexican standards where 120 relates to food and beverages
NPV	net present value
NSAMT	Natural Source Audio-frequency Magnetotellurics
NW	northwest
OPEX	Operating expenditures
oz	ounce
P80	80% percent passing
P&E	P&E Mining Consultants Inc.

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Table STYLEREF 1 \s 2. <br>Terminology and Abbreviations
Abbreviation	Meaning
Pamicon	Pamicon Developments Inc.
PAX	potassium amyl xanthate
Pb	lead
P.Eng.	Professional Engineer
Peñoles	Mexican Corporation Industrial Peñoles
PFS	Prefeasibility Study
P.Geo.	Professional Geoscientist
ppb	parts per billion
ppm	parts per million
PROFEPA	Federal Attorney´s Office for the Protection of the Environment
Project, the	the San José de Gracia Property that is the subject of this Technical Report
Property, the	the San José de Gracia Property that is the subject of this Technical Report
Q1, Q2, Q3, Q4	first quarter, second quarter, third quarter, fourth quarter of the year
QA/QC or QAQC	quality assurance/quality control
QC	Quality control
Quest	Perforaciones Quest de Mexico
QP	Qualified Person, following the Securities and Exchange Commission guidelines, under Regulation S-K, Subpart 1300
QVBX	quartz vein-breccias
RC	reverse circulation
Report, the	this Technical Report Summary, following the Securities and Exchange Commission guidelines, under Regulation S-K, Subpart 1300
S	south
S-K 1300	subpart 229.1300 – Disclosure by registrants Engaged in Mining Operations of Regulation S-K
SARA	Salvador Antonio Renteria Armendariz
Sb	antimony
sdtd	short tons per day
SE	southeast
SEC	United States Securities and Exchange Commission
SEDENA	Secretariat of National Defense
SEMARNAT	Secretariat of Environment and Natural Resources, Mexico
S.G.	specific gravity
SJG	San José de Gracia
SJG Operation	San José de Gracia Gold Operation
SJG Project	San José de Gracia Gold Project
SJG Property	San José de Gracia Gold Property
SMO	Sierra Madre Occidental
SPM	Servicios y Proyectos Mineros de Mexico

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Table STYLEREF 1 \s 2. <br>Terminology and Abbreviations
Abbreviation	Meaning
SSP	Sonora Sample Preparation SA de CV
SW	southwest
t	metric tonne(s)
t/m3	tonnes per cubic meter
Technical Report Summary	this S-K 1300 Technical Report Summary
TSF	tailings storage facility
tpd	tonnes per day
UCS	unconfined compressive strength
UG or U/G	underground
US$	United States dollar(s)
USGPM	US gallon per minute
UVS	Upper Volcanic Series
W	tungsten
W	west
wmt	wet metric tonne(s)
Zonge	Zonge Engineering and Research Organization Inc.
Zn	zinc
Table STYLEREF 1 \s 2. <br>Unit Measurement Abbreviations
---	---	---	---
Abbreviation	Meaning	Abbreviation	Meaning
μm	microns, micrometer	m3/d	cubic meter per day
$	dollar	m3/h	cubic meter per hour
$/t	dollar per metric tonne	m3/s	cubic meter per second
%	percent sign	m3/y	cubic meter per year
% w/w	percent solid by weight	mØ	meter diameter
¢/kWh	cent per kilowatt hour	m/h	meter per hour
°	degree	m/s	meter per second
°C	degree Celsius	MHz	megahertz
cm	centimeter	Mt	million tonnes
d	day	Mtpy	million tonnes per year
ft	feet	min	minute
GWh	Gigawatt hours	min/h	minute per hour
g/mL, g/ml,<br><br>g.ml	grams per millilitre	mL	millilitre
g/t	grams per tonne	mm	millimeter
h	hour	Mt	million tonnes or megatonnes
ha	hectare	MV	medium voltage

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Table STYLEREF 1 \s 2. <br>Unit Measurement Abbreviations
Abbreviation	Meaning	Abbreviation	Meaning
hp	horsepower	MVA	mega volt-ampere
Hz	hertz	MW	megawatts
k	kilo, thousands	oz	ounce (troy)
kg	kilogram	Pa	Pascal
kg/t	kilogram per metric tonne	pH	Measure of acidity
kHz	kilohertz	ppb	part per billion
km	kilometer	ppm	part per million
kPa	kilopascal	s	second
kt	thousands of tonnes or kilotonnes	t or tonne	metric tonne
kV	kilovolt	tpd	metric tonne per day
kW	kilowatt	t/h	metric tonne per hour
kWh	kilowatt-hour	t/h/m	metric tonne per hour per meter
kWh/t	kilowatt-hour per metric tonne	t/h/m2	metric tonne per hour per square meter
L	litre	t/m	metric tonne per month
L/s	litres per second	t/m2	metric tonne per square meter
L/min, l/min	liters per minute	t/m3	metric tonne per cubic meter
L/hr/m2, l/hr/m2	liters per hour per square meter	T	short ton
lb	pound(s)	tpy	metric tonnes per year
M	million	V	volt
m	meter	W	Watt
m2	square meter	wt%	weight percent
m3	cubic meter	yr	year

2.8 Reporting of Payable Metal by Gold Equivalent

The Gold Equivalent (“AuEq”) ratio used to calculate equivalent gold in the financial evaluation was variable, based on the produced metal for each year as described in Section 19 and averaged 2.6% (silver to gold ratio) over the LOM, and this is used for reporting purposes in the financial evaluation and for the calculation of revenue and other financial metrics. AuEq is not used for the estimation of Mineral Resources or Mineral Reserves.

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3.0 Property Description

3.1 Location

The SJG Project is located on map sheet G13-A81 in the Culiacan Mining District of Sinaloa State, Mexico, at latitude 26° 9’ North and longitude 107° 53’ West, ~120 km east-northeast of the coastal City of Los Mochis. The Project is situated in the northwestern part of Sinaloa State, adjacent to Chihuahua State (Figure 3.1).

Figure STYLEREF 1 \s 3. Location of the San José de Gracia Project in Sinaloa State, Mexico

Source: Modified by P&E (This Report) from DynaResource (March 2025)

3.2 Area of the Property

The SJG Project area covers ~3,970 hectares (“ha”) (or 9,810 acres) and consists of 29 mining concessions on land owned by particular and public groups. Twenty eight of the 29 mining concessions are registered in the sole name of DynaResource de Mexico SA de CV (“Dyna de Mexico”). The title of one mining concession, San Miguel, is not registered under Dyna de Mexico. A map of the Property mining concessions is shown in Figure 3.2. Details for each of the mining concessions are listed in Table 3.1.

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Figure STYLEREF 1 \s 3. Mining Concessions Map Location

Source: Modified by P&E (This Report) from DynaResource (March, 2025)

Notes: Claims information effective March 24, 2025. The La Purisima, La Union, San Pablo and Tres Amigos Gold Deposits are distributed along a 2.5 km west-verging curvilinear map trend extending from Concession No. 19 north-northeastwards through to Concession No. 15.

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Table STYLEREF 1 \s 3. <br>Mining Concessions on the San José de Garcia Project Property*
Title	Name	Area<br><br>(ha)	Validity<br><br>Start<br><br>Date	Validity Termination Date	Ownership<br><br>(100%)	Status
163578	Mina Grande	6.6588	10/10/1978	09/10/2028	DynaResource de Mexico S.A. de C.V.	Valid
163592	Ampliacion De Santa Rosa	25	30/10/1978	29/10/2028	DynaResource de Mexico S.A. de C.V.	Valid
163913	San Nicolas	55.549	14/12/1978	13/12/2028	DynaResource de Mexico S.A. de C.V.	Valid
170557	Santa Rosa	31.8447	13/05/1982	12/05/2032	DynaResource de Mexico S.A. de C.V.	Valid
172216	Los Res Amigos	23	27/10/1983	26/10/2033	DynaResource de Mexico S.A. de C.V.	Valid
172433	La Libertad	97	15/12/1983	14/12/2033	DynaResource de Mexico S.A. de C.V.	Valid
176214	La Union	4.10987	26/08/1985	2S/08/203S	DynaResource de Mexico S.A. de C.V.	Valid
183504	San Miguel	7	26/10/1988	25/10/2038	Maria Trinidad Acosta Viuda De Gonzales 25%, Miguel Lopez Medina<br>25%, Josefa Gonzalez Castro 25%,<br>Y Otilia Tracy Vizcarra 25%	Valid
183815	Ampl..de San Nicolas	17.4234	22/11/1988	21/11/2038	DynaResource de Mexico S.A. de C.V.	Valid
184473	San Sebastian	40	08/11/1989	05/11/2039	DynaResource de Mexico S.A. de C.V.	Valid
184999	Nuevo Rosario	32.8781	13/12/1989	12/12/2039	DynaResource de Mexico S.A. de C.V.	Valid
187348	Santo Thomas	312	14/06/1990	13/06/2040	DynaResource de Mexico S.A. de C.V.	Valid

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Table STYLEREF 1 \s 3. <br>Mining Concessions on the San José de Garcia Project Property*
Title	Name	Area<br><br>(ha)	Validity<br><br>Start<br><br>Date	Validity Termination Date	Ownership<br><br>(100%)	Status
189470	Guasdalupe	7	05/12/1990	04/12/2040	DynaResource de Mexico S.A. de C.V.	Valid
208537	San Jose	27	24/11/1998	23/11/2048	DynaResource de Mexico S.A. de C.V.	Valid
211087	Buena Vista	17.9829	31/03/2000	30/03/2050	DynaResource de Mexico S.A. de C.V.	Valid
212142	Tres Amigos 2	56.4672	31/08/2000	30/08/2050	DynaResource de Mexico S.A. de C.V.	Valid
212143	San Andres	385.099	31/08/2000	30/08/2050	DynaResource de Mexico S.A. de C.V.	Valid
212349	Pieadras de Lumbre No. 4	0.2034	29/09/2000	28/09/2050	DynaResource de Mexico S.A. de C.V.	Valid
212571	El Real	2037.9479	07/11/2000	06/11/2050	DynaResource de Mexico S.A. de C.V.	Valid
214519	El Castillo	100	02/10/2001	01/11/2051	DynaResource de Mexico S.A. de C.V.	Valid
21S119	La Nueva Aurora	89.301	08/02/2002	07/02/2052	DynaResource de Mexico S.A. de C.V.	Valid
215555	Piedras de Lumbre Uno	40.2754	05/03/2002	04/03/2052	DynaResource de Mexico S.A. de C.V.	Valid
215556	Piedras de Lumbre 2	34.8493	05/03/2002	04/03/20S2	DynaResource de Mexico S.A. de C.V.	Valid
516301	El Real 2	280.1555	30/04/2002	29/04/2052	DynaResource de Mexico S.A. de C.V.	Valid
218769	Santa Maria	4.2030	17/01/2003	16/01/2053	DynaResource de Mexico S.A. de C.V.	Valid
218992	Piedras de Lumbre 3	4.3098	28/01/2003	27/01/2053	DynaResource de Mexico S.A. de C.V.	Valid

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Table STYLEREF 1 \s 3. <br>Mining Concessions on the San José de Garcia Project Property*
Title	Name	Area<br><br>(ha)	Validity<br><br>Start<br><br>Date	Validity Termination Date	Ownership<br><br>(100%)	Status
219001	Finnestere Fraccion A	18.7856	28/01/2003	27/01/2053	DynaResource de Mexico S.A. de C.V.	Valid
219002	Finnestere Fraccion B	174.2004	28/01/2003	27/01/20S3	DynaResource de Mexico S.A. de C.V.	Valid
226289	La Nueva Esperanza	40.0000	06/12/2005	05/12/2055	DynaResource de Mexico S.A. de C.V.	Valid
Total		3,970.2443

Notes: * As of March 24, 2025, Date of Legal Title Opinion by Soluciones Mineras Leodan Carval, S.C. for DynaResource de Mexico, S.A. de C.V.

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3.3 Mineral Titles, Claims, Rights, Leases and Options

Mining Concessions in the SJG Project area are shown in Figure 3.3. Twenty eight of the Mining Concessions within the mine area are controlled by Dyna de Mexico. The mining claim named “San Miguel” is not under Dyna´s control. Dyna de Mexico has entered into transfer agreements with the registered owners to 50% undivided title to the San Miguel (t.183504) mining concession and it has entered into promise to sell and purchase agreements with registered owners to 50% undivided title to the San Miguel (t.183504) mining concession. Under Mexican law, such transfer agreements require the consent or relinquishment of first rights of refusal from the registered owners to 100% undivided title to produce legal effects and be eligible for registration before the Mines Recorders´ Office. The legal steps required to be taken to register title in the name of Dyna de Mexico are disclosed in the Note immediately following Table 3.1 regarding title to the San Miguel mining concession.

Under amendments to the Mining Act of Mexico that came into effect in December 2006, the classifications of Mining Exploration Concessions and Mining Exploitation Concessions were replaced by a single classification of Mining Concessions valid for a renewable term of 50 years, commencing from the initial issuance date. To be converted into Mining Concessions at the time these amendments came into force, former exploration and exploitation concessions had to be in good standing at the time of conversion. All of the SJG Mine concessions were converted to 50-year Mining Concessions at the time the amendments to the Mining Act came into effect. To renew the 50-year term, Mining Concessions must be in good standing at the time the application is filed. An application for renewal must be filed within 5 years prior to expiration of the term.

To maintain Mining Concessions in good standing, the registered owner must: (a) pay bi-annual mining duties in advance, by January 31 and July 31 each year; (b) file assessment work reports by May 30 each year, for the preceding year (some exception rules apply); and (c) file by January 31 each year, statistical reports on exploration/exploitation work conducted for the preceding year. Notice of Commencement of Production Activities and Annual Production Reports must be filed annually by January 31 each year for those concessions where mineral ore extraction is taking place. As a general provision, registered owners of Mining Concessions must follow environmental and labor laws and regulations in order to maintain their Mining Concessions in good standing.

As of the effective date of this Technical Report, all the 29 mining concessions of the SJG Mine Property are in good standing with respect to the payment of taxes and the filing of assessment work obligations imposed by the Mining Act of Mexico and its Regulations.

San Miguel (title number 183504) is subject to transfer agreements for an undivided 100% title that, in order to produce legal effects, require the consent or relinquishment of first rights of refusal from registered owners to the 50% undivided title, and subject to promise to sell and purchase agreements with registered owners to 50% undivided title to the San Miguel (t.183504) mining concession.

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According to the records of the Mines Registry, the registered owners to the San Miguel mining concession (title number 183504) are: María Trinidad Acosta González (widow) (25%), Miguel López Medina (25%), Josefa González Castro (25%), and Otilia Tracy Vizcarra (25%).

In respect to the San Miguel mining concession (No. 183504), Dyna de Mexico has provided to the QP a copy of the following Sell and Purchase Agreements (collectively the “San Miguel Sell and Purchase Agreements”):

 Sell and Purchase Agreement dated March 8, 2001, signed between Dyna de Mexico (acting as the “Purchaser”) and Josefa Gonzalez Castro (acting as the “Vendor”) wherein it appears that on that date the Vendor sold and the Purchaser purchased, on payment of US$1,250, an undivided 25% title to the San Miguel mining concession (No. 183504); and

 Sell and Purchase Agreement dated October 17, 2000, signed between Dyna de Mexico (acting as the “Purchaser”) and Miguel Lopez Medina (acting as the “Vendor”), wherein it appears that on that date the Vendor sold, and the Purchaser purchased, on payment of US$1,250, an undivided 25% title to the San Miguel mining concession (t. 183504).

With respect to the San Miguel Sell and Purchase Agreements, Dyna de Mexico has been advised that in order for the San Miguel Sell and Purchase Agreements to produce legal effects and be eligible for registration before the Mines Registry, Dyna de Mexico is required to first obtain the legal consent to such transfers, or the written relinquishment of first rights of refusal, from María Trinidad Acosta González (widow) and Otilia Tracy Vizcarra (or court-appointed estate executor). In addition to the San Miguel Sell and Purchase Agreements, Dyna de Mexico has provided to the writer a copy of the following Promise to Sell and Purchase Agreements (the “San Miguel Promise to Sell and Purchase Agreements”):

 Promise to Sale and Purchase Agreement dated March 8, 2001 signed between Dyna de Mexico (acting as the “Purchaser ”) and Maria Trinidad Acosta Salazar González (widow), the registered owner to 25% undivided title to the San Miguel (No. 183504) mining concession, acting in her own rights and also in representation of the estate of Cayetano Gonzalez Castro (collectively acting as the “Vendor ”) wherein it appears that on that date the Vendor promised to sell to the Purchaser, on payment of US$2,250, an undivided 25% title to the San Miguel mining concession (No. 183504); and

 Promise to Sale and Purchase Agreement dated December 15, 2000 signed between Dyna de Mexico (acting as the “Purchaser”) and Margarita Tracy Vizcarra, sister of the deceased Otilia Tracy Vizcarra, acting in her own rights and also in representation of the estate of Otilia Tracy Vizcarra (acting as the “Vendor”) wherein it appears that on that date the Vendor promised to sell to the Purchaser, on payment of US$1,750, an undivided 25% title to the San Miguel mining concession (No. 183504).

Regarding the San Miguel Promise to Sell and Purchase Agreements, Dyna de Mexico has been advised that:

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 With respect to the Promise to Sell and Purchase Agreement signed on March 8, 2001 among Dyna de Mexico and Maria Trinidad Acosta Salazar González (widow), to contact Ms. María Trinidad Acosta Salazar González to demand compliance with such agreement by executing the definitive transfer to Dyna de Mexico of the 25% undivided title to the San Miguel mining concession (No. 183604) registered in her name; and

 With respect to the Promise to Sell and Purchase Agreement signed on December 15, 2000 among Dyna de Mexico and Margarita Tracy Vizcarra, the sister of the deceased Otilia Tracy Vizcarra, the estate of Otilia Tracy Vizcarra requires the appointment of a court-appointed executor that would be capable under Mexican law to formally grant the estate´s consent for the execution of the San Miguel Sell and Purchase Agreements, to relinquish the estate´s first rights of refusal or to request court approval for the transfer to Dyna de Mexico of the 25% undivided interest in the San Miguel mining concession (No. 183604) registered in the name of the deceased Otilia Tracy Vizcarra.

3.4 Surface Lease Agreement

In addition to the surface rights retained pursuant to the Mining Act of Mexico and its Regulations (Ley Minera y su Reglamento), Dyna de Mexico maintains access and surface rights to virtually all the SJG Mine area pursuant to a surface lease agreement entitled “Land Occupation Agreement” between the El Ejido Santa Maria and Dyna de Mexico, dated May 12, 2002 (the “SJG Project Surface Lease”) (Figure 3.3). The SJG Project Lease covers 28,295 ha, the term is 30 years and, according to the Legal Title Opinion, it is understood that the agreement is currently in good standing. More details are provided in Section 17 of this Report.

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Figure STYLEREF 1 \s 3. SJG Mine Area and Santa Maria Ejido, Surface Rights Ownership and Lands Under Common Use With Dyna De Mexico

Source: Modified by P&E (This Report) from DynaResource (March 2025)

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3.5 Royalties and Enviromental Liabilities

The SJG Mine is not subject to any royalties or environmental liabilities.

3.6 Comment on Property Description and Location

To the extent known to the QP, there are no other significant factors, encumbrances or risks that may affect access, title, or the right or ability to perform work on the SJG Project that have not been discussed in this Report.

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4.0 Accessibility, Climate, Local Resources, infrastructure and Physiography

4.1 Accessibility

The SJG Project is accessible by paved highway from either the City of Culiacan (located to the south of the SJG Mine and is the Capital of the State of Sinaloa) or the City of Guamuchil (located to the southwest of the SJG Mine) (Figure 4.1). Either route passes through the small Town of Sinaloa de Leyva, a distance of 150 km from Culiacan and 50 km from Guamuchil, then from Sinaloa de Leyva by gravel mountainous road to the Village of San José de Gracia (population 2,500), which covers ~84 km and is a 5-hour trip.

The SJG Project is also accessible by air. A gravel airstrip is located adjacent to the San José de Gracia Village, in the southwestern portion of the Property (Figure 4.2). The airstrip is suitable for light aircraft and charter flights of 45 minutes duration are available at the airports in the cities of Los Mochis or Culiacan. The Village of San José de Gracia is located within the south-western corner of the SJG Mine and much of the labor for the recent mining and production activities of Dyna de Mexico was provided by the Village residents. Although the Village provided ~140 employees to Dyna de Mexico, it currently has limited services.

4.2 Climate

Summer temperatures vary up to 40°C with high humidity, whereas the winter temperatures are cooler with nighttime lows of 5°C. Rains in the wet season can range from gentle late afternoon/early evening showers to strong rains, which can last up to a few days. Precipitation averages 550 mm annually.

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Figure STYLEREF 1 \s 4. Road Access to San José de Gracia

Source: Modified by P&E (This Report) from Google Maps (February 2025)

Figure STYLEREF 1 \s 4. Location of Air Strip North-Northwest of the Village of SJG

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Source: Modified by P&E (This Report) from Google Maps (February 2025)

4.3 Infrastructure Availability and Sources

4.3.1 Power

The power line is currently 1,460 kW maximum capacity, which supports the processing operations, office and camp facilities at San José de Gracia camp, such as water pump, air conditioning, refrigeration, lights, internet, fans and some local residential use. Currently, the SJG Mine produces its own diesel-generated back-up power.

4.3.2 Water

The water source for the San José de Gracia camp is from a water well located close to the river which runs just west of the Village of San José de Gracia. Dyna de Mexico has obtained the water concession rights for this water source, which provides for usage of 1,000,000 m3 per year. Currently, Dyna de Mexico estimates its consumption of water to be ~10,000 liters per week.

4.3.3 Mining Personnel

The SJG Mine has general and specialized personnel. The Village of San José de Gracia supplies helpers and office-camp maintenance staff (up to 140 people), but not specialized operators. Mining equipment operators and engineers come from other mines.

4.3.4 Processing Plan Site and Tailings Storage Area

The SJG Project is an operating mine with a flotation process plant and a tailings storage area with a tailings dam. The process plant is located adjacent to the San José de Gracia Village.

4.4 Topography, Elevations and Vegetation

The topography of the San José de Gracia Mining District is generally rugged with elevations that vary from 400 masl in the valley bottoms to >1,600 masl in the higher ranges (Figure 4.3). A network of small roads and tracks trails around areas nearer the historical workings at San José de Gracia. Access to the remainder of the large property at the current stage of development is difficult without the use of a horse or helicopter.

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Figure STYLEREF 1 \s 4. Photograph Showing Moderately Rugged Range and Narrow Valley Topography in the SJG Project Area

Source: DynaResource (February 2025)

The vegetation on the SJG Project Property consists of tropical deciduous forest at lower elevations (Figure 4.4) and pine forest and oak forest at higher elevations. The most common species of vegetation are listed in Table 4.1.

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Figure 4.4 Photograph Showing the Vegetation at Lower Elevations in the SJG Project Area

Source: DynaResource (February 2025)

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Table STYLEREF 1 \s 4. <br>Most Common Species of Vegetation in the SJG Project Area
No.	Common Name	Scientific Name	Scientific Family	Estatus en la NOM-059-SEMARNAT-2001
1	Amapa rosa	Tabebuia palmeri	Bignoniaceae	Amenazada No endémica
2	Amole	Sapindus saponaria L.	Sapindaceae	Ninguno
3	Brasil	Haematoxylon brasiletto Karsten	Leguminosae	Ninguno
4	Cacachila	Citharexylum affine Don.	Verbenaceae	Ninguno
5	Cardón	Pachycereus pecten aborigenum	Cactaceae	Ninguno
6	Chapote	Casimiroa edulis	Rutaceae	Ninguno
7	Chile chiltepín	Capsicum annuum subsp. Glabriusculum	Solanaceae	Ninguno
8	Chutama blanca	Jatropha cinerea	Euphorbiaceae	Ninguno
9	Coloncahui, iguano	Caesalpinia eriostachys	Fabaceae	Ninguno
10	Compio	Combretum fruticosum	Combretaceae	Ninguno
11	Confiturías	Lantana camara	Verbenaceae	Ninguno
12	Copale	Bursera laxiflora	Burceraceae	Ninguno
13	Copalquin	Coutarea pterosperma	Rubiaceae	Ninguno
14	Day	Acacia crinita	Leguminosae	Ninguno
15	Gato	Martynia annua	Martyniaceae	Ninguno
16	Guasima	Guazuma ulmifolia Lam.	Sterculiaceae	Ninguno
17	Guayabilla	Salpianthus macrodonthus Standl.	Nyctaginaceae	Ninguno
18	Hierba de la rata	Gliricidia sepium (Jacq.) Kunth ex Wal	Leguminosae	Ninguno
19	Hierba del toro	Siphonoglossa pilosella (Nees) Torr	Acanthaceae	Ninguno
20	Hierba quemadora	Wigandia kurthii Choisy	Hydrophyllaceae	Ninguno
21	Huinolo	Acacia cochliacantha H. & B. ex Willd.	Leguminosae	Ninguno
22	Huirote (o hierba) de cuichi	Gouania mexicana	Rhamnaceae	Ninguno
23	Igualama	Vitex mollis	Verbenaceae	Ninguno

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Table STYLEREF 1 \s 4. <br>Most Common Species of Vegetation in the SJG Project Area
No.	Common Name	Scientific Name	Scientific Family	Estatus en la NOM-059-SEMARNAT-2001
24	Jarilla	Dodonaea viscosa	Sapindaceae	Ninguno
25	Mala mujer	Solanum amazonium Ker.	Solanaceae	Ninguno
26	Malva blanca	Sida rhombifolia	Malvaceae	Ninguno
27	Malva escobera	Sida acuta Burm.	Malvaceae	Ninguno
28	Matanene	Mascagnia macroptera (Moc. & Sesse) N.	Malpighiaceae	Ninguno
29	Mauto	Lysiloma microphylla	Fabaceae	Ninguno
30	Mora	Morus microphylla	Moraceae	Ninguno
31	Negrito	Karwinskia humboldtiana (J.A. Schultes) Zucc	Rhamnaceae	Ninguno
32	Nesco	Lonchocarpus hermannii	Fabaceae	Ninguno
33	Nopal	Opuntia rileyi G. Ortega	Cactaceae	Ninguno
34	Palo barril	Cochlospermum vitifolium	Bixaceae	Ninguno
35	Palo blanco	Ipomoea arborescens (Humb. & Bonpl. ex Willd.) G. Don	Convolvulaceae	Ninguno
36	Palo pinto	Pithecolobium tortum	Fabaceae	Ninguno
37	Palo piojo	Caesalpinia pelueri	Leguminoseae	Ninguno
38	Palo zorrillo	Petiveria alliaceae L	Phytolaccaceae	Ninguno
39	Papche	Randia echinocarpa Moc. Et Sess	Rubiaceae	Ninguno
40	Papasolte	Physodium corymbosum	Sterculiaceae	Ninguno
41	Rama del toro	Siphonoglossa pilosella (Nees) Torr	Acanthaceae	Ninguno
42	Salvia	Salvia mexicana.	Labiatae	Ninguno
43	Samo blanco	Coursetia sp.	Fabaceae	Ninguno
44	Samo rojo	Coursetia sp.	Fabaceae	Ninguno
45	San Juanito	Jacquinia pungens	Theophrastaceae	Ninguno
46	Tacote	Cordia cylindrostachya Roem & Schult	Boraginaceae	Ninguno
47	Torote	Bursera odorata	Burseraceae	Ninguno
48	Vainoro blanco	Celtis pallida Torr.	Ulmaceae	Ninguno

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Table STYLEREF 1 \s 4. <br>Most Common Species of Vegetation in the SJG Project Area
No.	Common Name	Scientific Name	Scientific Family	Estatus en la NOM-059-SEMARNAT-2001
49	Vainoro prieto	Pisonia capitata L.	Nyctaginaceae	Ninguno
50	Vara blanca	Croton punctatus Jacq.	Euphorbiaceae	Ninguno
51	Vara prieta	Melochia tomentosa L.	Sterculiaceae	Ninguno
52	Vinorama	Acacia farnesiana (L.)Willd.	Leguminosae	Ninguno
53	Zacate espadaño	Heteropogon contortus (L.) Beauv. ex Roem. & Schult	Gramineae	Ninguno
54	Zacate sabanilla	Enneapogon desvauxii P. Beauv.	Gramineae	Ninguno

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4.5 Sufficiency of Surface Rights

All the Mineral Resources and Mineral Reserves stated in this Technical Report Summary are located within Mining Concessions 100% controlled by Dyna de Mexico. Dyna de Mexico has sufficient mining claims to cover all surface operations for life of mine. Dyna de Mexico has secured and maintained the necessary permits for exploration and development of the SJG Project Mines.

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5.0 History

5.1 Early History

Exploration and mining activity in SJG Project area Mine dates back to the early 1800s. During the next eighty years over sixty gold occurrences were found. Of particular importance were the La Purisima and La Prieta Vein structures that hosted high-grade gold up to 3.4 ounces per ton (Pamicon, 1999). The peak period of production from the San José de Gracia camp occurred over the period 1890 to 1910, with an estimated 1 million ounces of gold produced, mainly from the La Purisima and La Prieta areas (Table 5.1; historical estimates of production are not verified by Mr. Luna). Additional smaller mines that contributed to production were Palos Chinos, San Pablo, Tres Amigos, La Ceceña, La Union, La Parilla, Veta Tierra, Santa Rosa, Sta. Eduwiges, and Los Hilos (Table 5.1).

Table STYLEREF 1 \s 5. <br>Gold Production at San José de Gracia Before the 1970s
Mineralized Area	Gold Production<br><br>(oz)	Gold Grade<br><br>(g/t)	Mined Width<br><br>(m)
Purisima Ridge Trend1	471,000	67	unknown
La Prietra Trend2	215,000	28	1.5 to 3.0
Other Areas	300,000	unknown	unknown

Notes:

Includes the Anglo, Rosario, Jesus Maria & La Cruz Mines.
La Prieta Mine.

The mines produced at San José de Gracia until 1910 when the Mexican Revolution halted mining activities. Mining did not resume immediately after the Mexican Revolution in 1910 due to various logistical problems. It was not until the 1970s when mining could resume at San José de Gracia, when the first road to SJG was opened, allowing Compañia Rosarito to begin producing gold from the Palos Chinos, San Pablo, Tres Amigos, and La Union Mines. Several other mining companies had previously been unsuccessful in consolidating the tightly held mining concessions (Figure 5.1).

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Figure STYLEREF 1 \s 5. The Crushing Plant at the La Purisima Mine in the Late 1890s

Source: Espinoza and Sandefur (2012)

5.2 Recent Ownership

By 1977, the underlying owners of mining concessions and subsequent vendors to Minera Finisterre SA de CV. (“Finisterre”) succeeded in acquiring control of most of the district and built a 70 ton per day flotation process plant. Modern geological surveys of the area were started in the 1990s by ASARCO and Industrias Peñoles, a Mexican private mining company. Finisterre subsequently acquired the property through option agreements with the underlying vendors and continued some exploration work, although most of its financial resources were spent to build a 200 ton per day concentrator. Golden Hemlock Explorations Ltd. (“Golden Hemlock”), a Canadian company, obtained an option to acquire majority control of Finisterre and commenced work on the property in 1997. This exploration and development work, performed for Golden Hemlock and Finisterre by the company Perforaciones Quest de Mexico (“Quest”), under contract to Finisterre, consisted primarily of core drilling, along with trenching and mapping. A 63-drill hole program totaling ~6,000 m was completed in 1997. In 1998-1999, Pamicon Developments Ltd. (“Pamicon”), a Canadian company, examined the results of the 1997 drilling program, including PQM’s work, in order to calculate possible mineral reserves developed by the drilling, and to review the general status of the Property. The results of this examination were presented in a report dated September 1999 (the “Pamicon Report”).

In the 1980s and 1990s, San Pablo became a focus of exploration and development activities. Mineralized outcrops were exposed prominently along the edge of a resistant gossanous hilltop known as the “Gossan Cap.” In 1992 and 1997, Peñoles and Golden Hemlock completed shallow drill holes near the top of the ridge and just beneath the Gossan Cap.

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Subsequently, during the first half of 1999, DynaResource, Inc. and its agents arranged to collect samples for metallurgical testing. Dyna de Mexico was formed by DynaResource, Inc. in June 2000 to acquire and consolidate ownership of SJG Project. By December 2003, Dyna de Mexico had completed the acquisition of and consolidation of 100% of the SJG Project from Golden Hemlock and Finisterre with the sole exception of the San Miguel mining concession.

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6.0 Geological Setting, Mineralization and Deposit

6.1 Regional Geology

The SJG Project is situated on the western portion of the Sierra Madre Occidental Province (“SMO”). The SMO volcanic field is one the largest ignimbrite-dominated felsic Provinces in the world, which extends for >1,200 km. The SMO is also recognized as a highly prospective mineral belt for gold, silver and polymetallic deposits (Figure 6.1).

Figure STYLEREF 1 \s 6. Sierra Madre Occidental Province with Precious Metal Epithermal Deposits, Projects and Mines

Source: Modified by P&E (2025) from Espinoza and Sandefur (2012)

Although basement rocks in northwestern Mexico are poorly exposed, they consist of the Precambrian North America Craton and accreted Phanerozoic terrains. The Phanerozoic evolution of northwestern Mexico is much better constrained, because these rocks are better exposed throughout the region and have been continuously affected by tectono-magmatic activity since the Middle Jurassic. The region was affected a long-lasting compressional regime that generated three distinct, though related, volcano-plutonic arcs:

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During Jurassic time, a northwest-trending volcanic arc was emplaced in the southwestern part of the North America Craton in northwest Mexico. Its structure is complex and obscured by subsequent events. This arc is limited to the south by and related to the proposed Mojave-Sonora Mega shear;
During the period of 120 to 90 Ma, another arc more to the south generated subduction related calc-alkaline batholiths that were emplaced in Baja California and Sinaloa State; and
During the Laramide Orogeny (90 to 40 Ma), a third volcano-plutonic arc formed that extended from southern Arizona and New Mexico into Durango and Sinaloa States, this arc corresponds to the Lower Volcanic Complex of the SMO. Due to the large volume of Tertiary volcanic rocks, almost all the pre-Laramide features have been completely obscured.

By Tertiary time, compressional deformation was replaced by extensional tectonism. This normal faulting represents the Basin and Range event in northwestern Mexico. Certain extension-related faults predate the Oligocene and are the locus for some of the Tertiary volcanic centers within the SMO. Such faults disrupted the topography and, in places, formed pull-apart basins leading to accumulation of Upper Volcanic Series ignimbrites in the resulting topographic lows. By early Miocene time, felsic magmatism evolved into a more bimodal volcanic association contemporaneous with normal faulting; this mafic-dominated, rift-type volcanism associated with the opening of the Gulf of California continues today.

Collectively, Upper Volcanic Series rocks (“UVS”) and Lower Volcanic Series rocks (“LVS”) dominate the geology of the SJG Property area and are therefore described in more detail below. Older Volcanic Series rocks are characterized by abundant volcanic rocks and associated intrusions of broadly andesite composition. They are best exposed where they have been uncovered by erosion in deep canyons in the western margin of the Province or along the coastal margin plain of mainland Mexico adjacent to the Gulf of California. The volcanic rocks are generally deformed by faulting and tilting and display regional propylitic alteration. Only a few hundred meters are generally exposed of the LVS, although the canyon of the Rio Piaxtla, in the state of Sinaloa, exposes more than 2,000 m of section.

During Late Eocene through Late Oligocene, much of western Mexico was affected by calc-alkalic volcanism and associated hypabyssal intrusive activity that constitutes the UVS. The “UVS” is an extensive sequence of rhyodacite to rhyolite ignimbrites, generally accompanied by rhyolite flows and domes and minor mafic lava units, with an average thickness approaching 1,000 m. Volcanic rocks of intermediate composition have been reported at the base of the felsic rocks in several localities throughout the SMO. Notably more felsic compared to those of the underlying LVC; the two series are separated by an unconformity that represents a hiatus in magmatism. The Upper Volcanic Series ignimbrites are the result of continuous volcanic events between 34 and 27 Ma, although intermittent activity persisted until 23 Ma.

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6.2 Local Geology of the SJG Project Area

Basic geology of the SJG Project Property is described in the context of the major rock types that make-up the stratigraphic section.

Basement rocks at the SJG area comprise a sequence of upper Paleozoic (Carboniferous) sedimentary rocks including shale, sandstone, limestone, and pebble conglomerate. All lithologies are highly deformed, folded, and faulted with an aggregate thickness considered to be >800 m. They are best exposed along the eastern edges of the currently defined SJG Property area. The geology of the area surrounding the SJG Project is shown in Figure 6.2.

Sedimentary basement rocks are overlain by calc-alkaline volcanic rocks of the Lower Volcanic Series. They can be roughly divided into a basal sequence of feldspar bearing rhyodacite crystal tuffs and flows grading upwards to a thicker sequence of andesite flows, tuff breccias and related sills.

Higher elevations of the SJG Mine Property, particularly along its western edges preserve outcrops of rhyolitic ignimbrite and tuffs assigned to the Upper Volcanic Series. These are resistant rock types that form a cap to mineralization.

Three types of intrusion have been mapped to date in the SJG Project area:

Stocks and plugs of quartz feldspar porphyry located near Tres Amigos; possibly comagmatic with rhyodacite tuffs;
Sill-like diorite porphyry occurring in the basement metasedimentary rocks, close to the contact with overlying Lower Volcanic Series rocks; and
Mafic dikes that cut all units and function as possible ‘feeders’ to the Upper Volcanic Series Hornillos and Navachiste Formations.

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Figure STYLEREF 1 \s 6. Regional Geologic Setting of SJG Project Area

Source: Modified by P&E (This Report) from DynaResource (July, 2024)

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6.2.1 Stratigraphy

The SJG stratigraphy consists of 10 different units which, from youngest to oldest, are: alluvium, sand gravel, basalt, rhyolite-ignimbrite, rhyodacite-ignimbrite, andesitic tuff, quartz-monzonite, granodiorite, andesite, and metasedimentary rocks (SGM, 2008a, 2008b). The following descriptions are in stratigraphic order from oldest to youngest:

6.2.1.1 San José de Gracia Formation

The name San José de Gracia Formation was unofficially assigned to a Carboniferous rock unit of marine origin that consists of shales, sandstones, limestones, and pebble conglomerates, which have undergone greenschist facies regional metamorphism.

6.2.1.2 Lower Volcanic Series

The Lower Volcanic Series consists of andesite flows, tuff breccias and related sills.

Andesite

The arc sequence consists of a package of rocks of andesite composition intercalated with tuff and andesite breccias (Cretaceous). It is part of the Sonora-Sinaloa insular arc, formed mainly due to the subduction of the Farallon plate.

Andesite Tuff

This unit consists of volcanic flows, tuffs and breccias of andesite composition with subordinate dacite and trachyandesite deposited in the late Cretaceous and throughout the Eocene. It occurs in the base of the continental Cenozoic volcanism.

6.2.1.3 Syn-Volcanic Intrusions

The syn-volcanic intrusions consist of granodiorite and quartz monzonite.

Granodiorite

Granodiorite is a cream-grey color rock with phaneritic texture that consists mainly of quartz, feldspar and plagioclase with accessory biotite and hornblende set in a fine-grained groundmass of granulated quartz, microcline and 20% mafic minerals (Henry, 1975). These rocks are considered to have been emplaced in the late Cretaceous and early Eocene (Anderson et al., 1969), during the Laramide Orogeny.

Quartz Monzonite

Quartz monzonite is a light grey colored, phaneritic intrusive rock composed mainly of quartz and plagioclase with accessory biotite, hornblende and iron oxides. This unit is considered to be the

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main cause of the gold mineralization on the SJG Project Property. These rocks were emplaced in the late Cretaceous and early Eocene (Anderson et al., 1969), during the Laramide Orogeny.

6.2.1.4 Upper Volcanic Series

The Upper Volcanic Series consists of rhyodacite ignimbrite and rhyolite ignimbrite.

Rhyodacite-Ignimbrite

This volcanic sequence is related to the second episode of subduction and consists of rhyolite flows and tuffs erupted from many cauldrons that were produced during regression of the magmatic arc of the East Pacific Plate. K-Ar method dating of these sequence units obtained ages of 21 to 34 Ma, placing them in the Oligocene (McDowell and Clabaugh, 1972; McDowell and Keizer 1977).

Rhyolite-Ignimbrite

This unit consists of rhyolite tuff flows and ignimbrites that represent the most extensive and spectacular volcanic sequence in Mexico, characterized on crowning the more elevated portions of the Sierra Madre Occidental. Miocene (SGM El Naranjo G13A82 geologic-miner chart, 2006).

Basalt

These basalt rocks are dark-grey colored with white spots, aphanitic texture and vesicles filled with calcite, plagioclase and pyroxene constituted. This unit does not have radiometric dating, only field stratigraphic correlations interpreted as late Miocene since they are covering the rhyolitic tuff flows and ignimbrites stated above.

6.2.1.5 Holocene Alluvium

The rock units are covered by various thicknesses of Holocene alluvium, mainly sand and gravel deposits.

6.2.2 Property Geology

The SJG Mine Property area is underlain by older rocks in the southeast to progressively younger rocks in the northwest. The oldest rocks in the area are the metasedimentary rocks that, when fresh, are dark grey colored shales and siltstones, grey sandstones, and minor grey argillaceous meta-limestones, collectively forming a basement to the volcanic packages above. These rocks, variously described as Carboniferous in age or just “Paleozoic,” were prograde regionally metamorphosed to low grade and locally folded during the late Cretaceous Laramide Orogeny. The shales and siltstones predominate close to the contact with the rhyodacite in the northern and central (San Pablo) portion of the area and in the southwest and south sandstones predominate over the finer clastic units. No lithological differentiation within the meta sediments was mapped owing to time constraints. The basement has an angular shaped surface outcrop, and it dips ~30° to the northwest. The overlying rhyodacites and andesites mirror this aspect.

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The basement - volcanic succession is intruded by dikes and sills composed of microdiorite and andesite porphyry and, in the south-central zone, by small sub-volcanic intrusions – the feldspar porphyry and quartz-feldspar porphyry. The latter two porphyries were emplaced at or close to the rhyodacite – basement contact whereas the andesite porphyry has been encountered well into the basement and above into the andesite and andesite agglomerates as well as the actual contact with the basement. The andesite porphyry mainly occurs as 1 to 10 m thick dikes or sills. In the north of the project area the andesite porphyry outcrops increase in size, as measured by outcrop area, where it appears to be 300 m across its widest point. The outcrop occurs across a steeply dipping south facing slope which could be the dip-slope of an inclined sill or a dike. This unit is mapped here as andesite porphyry and not andesite as it is always relatively fresh and resembles the rock that fills structures that are unequivocal dikes or sills. A similarly large outcrop of andesite porphyry also occurs in the extreme southwest of the area. In contrast to the outcrop in the north, here it is strongly argillized and weathered. The large feldspars contained within it, and its strong resemblance to a similarly argillized and weathered unit that occurs as a sill within the metasedimentary rocks to the east of San Pablo (213,200 m E and 2,897,110 m N) indicate this rock as the andesite porphyry. The margin of this unit as mapped is the extent of the visible outcrop only, there being much colluvial cover in this area, and so it may be larger than mapped. The andesite porphyry at this outcrop could be a hypabyssal intrusion.

The following lithological descriptions are derived from a study of the core samples and with the field mapping of the main area. The following descriptions are in stratigraphic order from oldest to youngest rock unit. The local geology and rock types of the SJG Mine Property area are shown in Figure 6.3 and a stratigraphic column is shown in Figure 6.4.

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Figure STYLEREF 1 \s 6. Local Geology Map of the SJG Mine Area

Source: DynaResource (July, 2024)

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Figure STYLEREF 1 \s 6. Simplified Stratigraphic Column for the SJG Mine Area

Source: Modified by P&E (This Report) from DynaResource (March, 2025)

6.2.2.1 Metasedimentary Rocks - San José de Gracia Formation (Carboniferous)

Grey to dark grey shales, sandstones and argillaceous limestones that have undergone weak regional metamorphism and represent the basement to the overlying volcanic package. In the vicinity of San Pablo, the shales are very dark grey to black colored shales and fine

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sandstones and contain much white discontinuous metamorphic quartz veining. The black shales are light brown/orange colored where silicified and argillized.

6.2.2.2 Andesite (Cretaceous)

Grey-green and grey colored hornblende-feldspar porphyritic andesite with 50% feldspar phenocrysts and 3% hornblende phenocrysts. Of the feldspar phenocrysts, 80% range from 0.5 to 1.0 mm diameter and 20% from 1 to 3 mm diameter. The hornblende phenocrysts are <0.5 mm diameter.

6.2.2.3 Andesite Breccia (Cretaceous)

Pale green to pale grey colored andesitic rock with up to 40% clasts of sub-angular andesite within an andesitic matrix. Clasts of hornblende-feldspar porphyritic andesite range from 10 mm to 100 mm diameter. The matrix is a hornblende-feldspar porphyritic andesite crowded with up to 40% feldspar phenocrysts and 20% with 2 to 10 mm diameter size lithic clasts. Locally, intervals may have up to 1% quartz eyes within the clasts. This rock may be either flow or crumble breccia, or an igneous intrusion breccia.

6.2.2.4 Rhyodacite (Tertiary)

Pale pink to grey colored porphyritic rhyodacite with diffuse 0.3 to 0.5 mm diameter feldspar phenocrysts in an aphanitic groundmass. Mainly from a rhyodacite source with a smaller metasedimentary component, the rock becomes darker grey as the content of metasedimentary rock increases. Locally, a mottle-textured quartz-eye rhyolite is apparent with up to 70% irregularly shaped clast-like inclusions of rhyodacite 5 to 10 mm diameter set in a grey colored matrix.

6.2.2.5 Quartz-Feldspar Porphyry (Tertiary)

A grey colored (quartz)-feldspar porphyry with <0.5% black biotite, 50% white colored feldspars 1 to 4 mm diameter and rare (<0.5%) 0.5 mm diameter anhedral quartz phenocrysts set in an aphanitic groundmass. Forms a small, vaguely oblong shaped intrusion at the rhyodacite or metasedimentary rock contact in the south-central portion of the study area.

6.2.2.6 Feldspar Porphyry (Tertiary)

Green colored, seriate textured, feldspar porphyry with 30% 0.1 to 0.5 mm diameter feldspar phenocrysts, 10% 0.5 to 2 mm diameter feldspar phenocrysts and 10% 0.5 x 3.0 mm size hornblende phenocrysts set in an aphanitic groundmass. This porphyry unit occurs as small dike-like and triangular shaped intrusions close to and within the rhyodacite to metasedimentary rock contact in the south-central portion of the study area. A float specimen of this rock contained sheeted stockwork.

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6.2.2.7 Andesite Porphyry (Tertiary)

Green colored hornblende-feldspar andesite porphyry consists of 40% feldspar phenocrysts 0.5 to 5 mm in size and 5% hornblende phenocrysts 0.5 to 1.0 mm diameter set in a green, aphanitic groundmass. This rock differs from the Andesite, in that it has slightly larger feldspar phenocrysts and is always relatively fresh when observed in drill core. It occurs mainly as 1 to 10 m thick dikes and sills within the metasedimentary rock basement and within the andesite and rhyodacite units at the contact. The dikes and sills were probably formed under the same structural regime that in which the quartz vein-breccias were emplaced.

6.2.2.8 Rhyodacite-Ignimbrite (Miocene)

Pale grey colored biotite-hornblende-quartz bearing rhyolite ash-flow tuffs that form a prominent scarp along the northwest edge of the area.

6.3 Structural Geology

The quartz vein-breccias and accompanying sheeted stockwork mineralization prevalent in the project area are structural phenomena, and therefore it is important to understand the structural geology at SJG Project. The prevailing structural style is that of transpression, which gave rise to strike-slip faulting and low-angle reverse and reverse-oblique faulting. The following sections are derived largely from Cordery (2009).

6.3.1 Transpression

The geological map (Figure 6.5) shows the main structural trends to be a conjugate arrangement of east-southeast (114°) vertical to near-vertical faults and north to north-northeast (001° to 010°) vertical to near vertical faults. In each case, the near-vertical faults are strike-slip faults and at the scale of the mapping area are generally straight. They occur in parallel arrays which divide the strata into rhomb or parallelogram shaped subareas. Within each sub-area secondary 's' shaped (sigmoidal) faults may cross from one controlling strike-slip fault to an opposite strike-slip fault giving rise to segments of rock bound on all sides by sigmoidal faults. When these sigmoidal segments are arranged linearly they are termed a duplex. Further subdivisions within these areas will also take place and this process could, theoretically, continue to hand specimen scale. These structural features are, in turn, smaller scale sigmoids to matching progressively larger scale features which affect the entire Sierra Madre Occidental. Evidence of these larger scale features can be observed in the scalloped form of the northern Sinaloan and southern Sonoran coastlines.

The vertical to near-vertical strike-slip faults that control the sigmoidal structures are transpressive in nature i.e. they have an associated compressive stress applied obliquely to the plane of the strike-slip fault. This combination of strike-slip movement and compression is commonly resolved as low-angle faults that have either a reverse or a reverse-oblique sense of movement. The evidence for an oblique sense of reverse movement is shown in the field by the presence of many fault surfaces that have slickenside lineations that are not parallel to the dip direction of the faults.

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Figure STYLEREF 1 \s 6. Structural Geology Map of SJG Project Area

Source: Cordery (2009)

Figure 6.5 Description: Geological map showing the rock types, structural mapping data, mineral veining, photolineaments and best Au intercepts for each drill hole completed by DynaResource and previous operators.

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Sigmoidal faults can form as a result of both sinistral and dextral strike-slip transpressive faulting. The form that individual sigmoidal faults take indicates the sense of strike-slip faulting prevalent at the time of formation with sinistral sigmoids having the upper nose pointing to the left and dextral sigmoids having the upper nose pointing to the right. It is possible for strike-slip faults to reverse their sense of movement and when this happens some portions of the rock may show evidence of a sinistral and a dextral faulting history. In the Project area, such complexity is visible in the crossed sigmoidal faults centred on 212,700 m E and 2,897,730 m N (see Figure 6.5).

Within each rhomb or parallelogram shaped sub-area of transpressed strata a secondary structural grain is developed and the strike direction of this grain depends on whether the duplex is sinistral or dextral. The sinistral trend is a distinct 145° lineation and the dextral a less definite 085° one. In each case the trend is parallel to the long axes of the sigmoids. The 145° sinistral strike is parallel to the main structural grain of the Sierra Madre Occidental.

A characteristic feature of the majority of the mineralized structures at the SJG Project is that they have a very low angle of dip, typically between 35 and 10°, and this is also a result of transpression. Lateral compression of the rocks causes spaces to open in the vertical plane along planes of weakness within the strata and these voids become infilled with gold-rich magmatic hydrothermal fluids. The most obvious plane of weakness for exploitation in this manner is the unconformable contact between the basement metasedimentary rocks and the overlying rhyodacites and andesite. Less obvious, but no less important, planes of weakness are the contacts between individual lava flows within the volcanic pile above the basement.

The exception to the rule that the mineralized zones of SJG have a low-angle dip is Tres Amigos, which has a moderate 54° dip on its main structure. This steeper dip is a consequence of the fact that the strata dips at a greater angle in this area.

6.3.2 Strike-Slip Faulting

Strike-slip faulting occurs in the central portion of the area centred around the hill capped by rhyodacite; a possible rhyodacite dome (Figures 6.5 and 6.6). Both dextral and sinistral offsets are evident.

Dextral strike-slip displacement occurs in the north-central portion of the area in the vicinity of the San Pablo workings. Here, the rhyodacite unit is faulted ~600 m to the east-southeast by a normal fault, the San Pablo Fault, the southern boundary of which is a dextral strike-slip fault (Figure 6.7). This latter fault strikes 110 ° and dips moderately to the northeast.

Sinistral strike-slip faulting occurs to the south-southeast of San Pablo where the rhyodacites are faulted progressively to the south-southeast by at least three sub-parallel, strike-slip faults that dip moderately to the west.

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Figure STYLEREF 1 \s 6. Location and Structural Orientation of the Six Main Mineralized Zones in the SJG Project Area

Source: Cordery (2009)

Figure 6.6 Description: The large arrows indicate the direction of maximum stress: σ1. The rhyodacite dome appears to have acted as a zone of resistance to σ1 and caused strike-slip faults to form in the rocks to the northeast and southwest. The strike-slip faults to the southwest have subsequently caused vein sets to form in oblique compressive stress regimes. For lineaments legend, see Figure 6.5.

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Figure STYLEREF 1 \s 6. Section Across the San Pablo Fault Showing its Normal Sense of Displacement

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Source: Cordery (2009)

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This arrangement of dextral faulting to the north of the rhyodacite dome and sinistral faulting to the south of the rhyodacite dome seems to imply the penetration of the metasedimentary basement into the volcanic sequence via a southeast-northwest striking stress (see Figure 6.6). The simple presence of thicker, more competent, rhyodacite rock in the volcanic pile at this point has made the region of the rhyodacite dome more resistant to compression and the rocks either side of it only have been displaced by strike-slip faulting. It is also reasonable to suppose that the rhyodacite dome has been anchored by a, so far yet to be discovered, pipe feeder.

6.4 Mineralization

6.4.1 Regional Mineralization

Polymetallic mineralization is common and widespread throughout northwestern Mexico and is known to be directly related to tectono-magmatic events which have been active since Jurassic time. Although magmatism and mineralization were active over a prolonged period of time, two principal mineralizing periods are recognized; the older, related to largely compressional tectonism and magmatism that produced the LVC during the Eocene, and a later event related to felsic magmatic activity and formation of the UVS during the Oligocene.

The former category includes intrusion-related mineralizing systems in the northern Sierra Madre Occidental which formed near the end of the Laramide Orogeny. The most common metals of this age are Cu, Mo, W, and Pb-Zn, which occur in skarn-, greissen-, and porphyry-type systems. This age-genetic type relationship is due entirely to erosion, which has exposed the deeper levels of the Laramide hydrothermal systems. Many epithermal Ag-Au-base metals veins are hosted by the LVC and many of them have been inferred to be Laramide in age. They have Ag/Au ratios >100 and commonly >1,000.

Volcanic-related, epithermal precious metal deposits of middle Tertiary age occur throughout the north of the Sierra Madre Occidental. These include low-sulfidation Ag-Au (±Pb-Zn-Cu) veins, and high-sulfidation Au-(Cu) deposits. Low-sulfidation deposits are mainly quartz ± calcite veins with chlorite + adularia + sericite alteration. These deposits are Ag-dominated at the lower levels of the volcanic column, and Au-dominated towards the top of the sequence. High-sulfidation deposits are less common, but several occurrences have been identified recently and are now important targets for mineral exploration, because of their large gold content (e.g. Mulatos and El Sauzal). Epithermal Ag-Au mineralization is concentrated towards the western flank of the SMO, whereas Pb-Zn-Ag-Au mineralization occurs in the eastern flank. At any given location, deposits may occur in Upper Volcanic Series, LVC, or older basement rocks, depending on level of erosion and the overall thickness of the volcanic pile during mineralization.

6.4.2 SJG Property Area Mineralization

The SJG Property is located within the Sierra Madre Occidental (“SMO”), together with the majority of hydrothermal deposits in Mexico. Deposits located in this trend are typically dominated by quartz veins which strike northwest-southeast and southwest-northeast, and thicknesses ranging from 1.5 to 3.0 m. Gold mineralization at San José de Gracia is hosted

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within andesite and rhyodacite of the LVG and by underlying Paleozoic sediments. Mineralization occurs as fault breccia veins and crackle breccias that exhibit multiple stages of reactivation and fluid flow, as evidenced by crustiform/colloform textures and cross-cutting vein relationships. Locally, veins exhibit sharp, clay gouge hanging wall and footwall contacts with slickensides, indicating reactivation of structurally hosted veins subsequent to mineralization. Gold grades can also be carried within the mineralized halo adjacent to the principal veins as quartz-chlorite stockworks and it is this type of mineralization that may hold the greatest potential on the SJG Property. In addition to vein-hosted mineralization, broad zones of un-mineralized clay alteration, developed southwest of the main mineralized trends, may overlie undiscovered, disseminated gold mineralization at depth.

Alteration at San José de Gracia is laterally and vertically zoned from discrete zones of silicification to broad zones of argillic alteration with increasing elevation and (or) distance from the main feeder structures. Faulting and tilting of the mineralized system have affected the surface distribution of alteration and in general has exposed deeper portions of the system in the northeast and shallower, more distal portions in the southwest part of the Property.

The characterization of the mineralization at SJG Project can be described as low sulfidation polymetallic epithermal gold type, and present in the quartz vein-breccia as native gold on and within disseminated sulfide grains within quartz envelopes to breccia clasts and as later-stage epithermal veins and veinlets that cross-cut the quartz vein-breccias. The main gangue mineral encountered was calcite and this would have been added to the uprising hydrothermal fluids as they passed through the basement which has some impure meta-limestone content. Base metal mineralization occurs within this rock as stringers and disseminations of bornite, chalcopyrite, galena and sphalerite along the boundaries between the matrix and the clasts and within later stage mm-sized quartz stockwork, and the Tres Amigos areas are characterized by having higher base metal concentrations.

Mineralization is distributed over an area of ~4-km north-south by 3-km east-west. The main areas of recent exploration activity are described in the six principal mineralized trends that have been identified at San José de Gracia, which from north to south are: (1) Tres Amigos / Los Hilos / Santa Rosa; (2) La Prieta / El Rosario; (3) San Pablo; (4) La Union / La Parilla / Veta Tierra; (5) Palos Chinos; and (6) La Purisima Ridge. The main exploration targets and characterized trends are listed in Table 6.1 (Kaip and Childe, 2000; Sullivan and McFarlane, 2006).

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Table STYLEREF 1 \s 6. <br>Target Type and Characteristics of the Main Mineralized Trends
Trend	Target Type and Characteristics	Historical Results and Past Production
La Purisima<br><br>(Anglo, Rosario & La Cruz Mines	High-grade gold veins, mining interrupted with the onset of the Mexican Revolution in 1910;<br><br>Three main ore zones developed within dilational jogs and at vein intersections???	Past production of ~471,000 oz gold at an average grade of 66.7 g Au/t
Palos Chinos<br><br>(Palos Chinos & Tajo Verde and Palo Verde Mines)	High-grade S striking, W-dipping veins with SW-plunging ore shoots defined by dilational jogs	Old workings 270 m along strike and 70 m down-dip;<br><br>Vein averages: 12.7 g Au/t over 1.3 m, with grades up to 92.5 g Au/t over 0.7 m;<br><br>Transect from Palos Chinos vein through stockwork mineralization to sub parallel hanging wall vein grades 7.4 g Au/t over 7.6 m, including 13.4 g Au/t over 3.4 m
La Parilla to Veta Tierra<br><br>(Veta Tierra, Sta. Eduwiges, La Unión, La Mochomera &<br><br>La Parilla Mines)	5 SW striking, W dipping high-grade gold veins in 150 m wide zone (600 m strike length, open in both directions);<br><br>Zone cut by S striking, W dipping veins;<br><br>Located within a structural corridor which may link the La Purisima and La Prieta trends	Combined, the veins average 10.6 g Au/t over 0.86 m;<br><br>Santa Eduwiges underground averages 20 g Au/t over 0.7 m;<br><br>La Union West underground averages 17.7 g Au/t over 1.6 m;<br><br>Multi-gram gold values in float at SW and NE ends of surface exposures;<br><br>32.9 g Au/t over 1.3 m from SW-S vein intersection.
San Pablo<br><br>(San Pablo Mine)	Two subparallel veins, mineralized shoot defined by vein intersections;<br><br>Stockwork mineralization in footwall points to bulk mineable potential	Quartz-rich, sub-vertical vein averages 28.3 g/t Au over 0.85 m, with grades of up to 91.7 g /t Au over 0.6 m in main vein;<br><br>Stockwork mineralization in footwall crosscut yielded 8.7 g /t Au over 10 m;<br><br>Recent Production of 18,250 oz Au from 42,000 t processed; average grade of 15 g/t Au;<br><br>with production costs of ~$175/oz. in small scale
La Prieta<br><br>(La Prieta Mine)	High-grade (>30 g Au/t based on past production) - Flat vein zone, which may	Past production of ~215,000 oz gold at an average grade of 27.6 g/t Au; Preliminary sampling yields gold values up to 48.84 g/t Au.

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Table STYLEREF 1 \s 6. <br>Target Type and Characteristics of the Main Mineralized Trends
Trend	Target Type and Characteristics	Historical Results and Past Production
	have formed between parallel SW striking veins
Los Hilos to Tres Amigos<br><br>(Tres Amigos, West Tres Amigos,<br>La Ceceña, Tepehauje, Los Hilos + Sta. Rosa Mines)	SW-striking W-dipping high-grade veins with minimum 1.4 km strike length;<br><br>Variation in vein chemistry along the strike extent, from sulfide-rich at Tres Amigos to low-sulfide, carbonate-rich with bonanza grades around Los Hilos.	Small mines (Tres Amigos, La Ceceña, Tepehauje, Los Hilos + Sta. Rosa) developed intermittently along the trace of the vein, mining halted at the intersection of W or NW trending faults with right lateral offset;<br><br>Los Hilos to La Ceceña area: surface work traced a low sulfide vein with up to 104 g Au/t;<br><br>Significance of cross-structure (Orange Tree trend: 23 g Au/t over 1.6 m in DDH and 210 g/t at surface) not fully evaluated.

Source: Kaip and Childe (2000) and Sullican and MacFarlane (2006)

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6.4.3 Structural Controls

The geological model for gold mineralization at SJG is based on precious metal-bearing low sulfidation fluids exploited steeply to moderately dipping southwest-to-northeast trending faults over a strike length of at least 1.5 km. Although mineralizing fluid flow may have followed pre-existing structures, the presence of breccia zones suggests that deformation was at least partly synchronous with mineralization. Underground mapping suggests a high potential for the presence of thick, high-grade, structurally controlled mineralized shoots corresponding to four different structural settings (Figure 6.8):

Dilational jogs at Palos Chinos;
Vein intersections at San Pablo;
Vein Rolls at Tres Amigos; and
Flat Zones at La Union and La Prieta (La Prieta may be hosted within a pre-existing thrust fault).

Mineralized structures consist southwest- and south-striking fault breccia veins that are cut by late east to west- and northwest-striking brittle faults with normal displacement.

Gold-bearing siliceous fluids formed tabular or sheet-like quartz, quartz-sulfide and quartz- calcite veins and breccia veins that were subsequently cut by late brittle(?), normal (right-lateral) faults, resulting in the small-scale (commonly <1 m) offsets observed on surface and underground.

Bladed or lattice-textured quartz (replacing bladed barite and possibly calcite) mapped on surface and in shallow workings suggests that boiling was the principal mechanism of gold deposition. The presence of this textural evidence implies that the zones of gold deposition are well preserved at San José de Gracia.

Precious metal epithermal vein systems, such as at the Tayoltita Silver-Gold Mine, located ~220 km to the south, have been shown to host economic mineralization down-dip over distances of 200 to 1000 m, well below the depth of historical workings at SJG Mine. Given the dimensions of the mineralizing system at SJG, it has the potential to host similar quantities of gold in a similar geologic setting as Tayoltita.

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Figure STYLEREF 1 \s 6. Structural Interpretation of the SJG Project Mine Zones

Source: Kaip and Childe (2000)

6.4.4 Mineralization Types

In order to provide more details, characteristics and distribution of the mineralization, the information presented below was taken from the report prepared by Cordery (2009). Economic mineralization in SJG Mine occurs as either quartz vein breccias or as stockwork above and below quartz vein-breccias. Anomalous gold mineralization that has so far not been rigorously drill-tested was also found as sheeted stockwork within porphyry rock.

6.4.4.1 Quartz Vein Breccia Mineralization

Underground observations were made to El Rosario, Tres Amigos, San Pablo, and La Union and in all these mines mineralization was present within quartz vein-breccias (“QVBX”) or within quartz stockwork veining above and below the quartz vein-breccias. The quartz vein-breccias are magmatic hydrothermal breccias; the source of both the metal-bearing fluid sand silica being sub volcanic intrusions at depth. Quartz vein-breccia thicknesses as determined from San Pablo drill hole intersections average 1.6 m and reach a maximum of 4.5 m. However, mineralized intercepts up to 14 m thick of combined quartz vein-breccia and stockwork can also occur in this area.

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The quartz vein-breccia is generally dark green or grey in color, more rarely white, depending on the intensity of the silicification, and consists of 50 to 80% sub-angular clasts of strongly silicified rock within a matrix of silica or silicified milled rock and rock flour (Figures 6.9 and 6.10). As the proportion of matrix increases the clasts may display partial to total rotation implying open space emplacement although jigsaw brecciation with little to no clast rotation is the norm (Figures 6.11 and 6.12). Veins cross-cutting the QVBX and breccia clast envelopes may demonstrate classic epithermal colloform and euhedral quartz banding.

Brecciation in these bodies is a result of hydro-jacking by over-pressured magmatic hydrothermal fluids. The hydrothermal fluids become compressed during phases of compression induced by transpression thus inextricably linking the structural process to the mineralization event. Such a process usually gives rise to jigsaw breccias at first and as more hydrothermal material is introduced more clast rotated breccias result.

Gold mineralization will be present in the quartz vein-breccia as native gold on and within disseminated sulfide grains within quartz envelopes to breccia clasts and as later-stage epithermal veins and veinlets that cross-cut the quartz vein-breccias. There is no economically important silver mineralization associated with the quartz vein-breccias. The main gangue mineral encountered was calcite and this would have been added to the uprising hydrothermal fluids as they passed through the basement which has some impure meta-limestone content.

Base metal mineralization occurs within this rock as stringers and disseminations of bornite, chalcopyrite, galena and sphalerite along the boundaries between the matrix and the clasts and within later stage mm-size quartz stockwork. The quartz vein-breccias in the Tres Amigos Mine are characterized by having higher base metal concentrations (Figure 6.9). The quartz stockwork zones above and below the quartz vein-breccias are of the order of 2 m thick in the San Pablo Mine. Individual stockwork veins average 1 cm in thickness with the maximum thickness being 20 cm - any vein >20 cm was automatically labeled QVBX in the diamond core re-logging exercise.

The mineralization at the SJG Project can be categorized as low sulfidation polymetallic epithermal gold type.

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Figure STYLEREF 1 \s 6. Sample from Drill Hole SJG08-118 that Intercepted the Southwestern Extremity of the Tres Amigos Zone

Source: Cordery (2009)

Figure 6.9 Description: Example of quarter drill core sampled from 30 m downhole SJG08-118, which intercepted the extreme southwestern extremity of the Tres Amigos structure. The Tres Amigos Zone is richer in base metal sulfides compared to all the other mineralized zones at SJG. In the photograph, coarse accumulations of galena (blue-grey) and sphalerite (red-brown) are easily visible within the quartz vein-breccia matrix. Fine-grained chalcopyrite is also present in this sample, but not visible in the photograph.

Figure STYLEREF 1 \s 6. QZBX from Drill Hole SJG07-23 in the West-Central Portion of the San Pablo Zone

Source: Cordery (2009)

Figure 6.10 Description: Sample of QVBX from drill core, taken from 69.70 m downhole in SJG07-23, which intersected the west-central portion of the San Pablo Deposit. The volcanic wall rock has been brecciated and strongly, but not totally silicified by the mineralizing hydrothermal fluids, hence the grey color as opposed to the white color associated with total silicification. The breccia clasts are supported by white quartz veinlets and darker quartz veinlets that contain finely disseminated pyrite. The native gold and electrum mineralization is present on and in cracks within the sulfide grains, generally pyrite, in the latter darker quartz matrix.

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Figure STYLEREF 1 \s 6. Main San Pablo Quartz Vein-Breccia Within Rhyodacite at the Centre of the Mineralized Zone

Source: Cordery (2009)

Figure 6.11 Description: The main San Pablo quartz vein-breccia within rhyodacite as it occurs in the western-central portion of the deposit. The QVBX consists of 50% of 5 to 10 cm size clasts of moderately silicified, chloritized volcanic wall rock supported by 50% white vein-quartz matrix. The breccia is a jigsaw breccia here, as the clasts show little to no rotation. The QVBX dips 25° towards 288° and is 1.4 m thick. Photograph view is towards 170°.

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Figure STYLEREF 1 \s 6. Quartz Vein-Breccia in the Entrance to the El Salto Mine on the Purisima Zone

Source: Cordery (2009)

Figure 6.12 Description: QVBX in the entrance to the El Salto Mine on the Purisima Trend. The QVBX is 70 cm thick here and dips 33° towards 250°. The vein has, in-turn, been re-brecciated and infilled with irregularly shaped, white quartz-rich vein-breccia material. The host rock is rhyodacite. The structures in the Purisima Zone that have been drilled to date are lower grade and narrower than the San Pablo and Tres Amigos Zones. Location: 212,852 E and 2,895,930 N. View looking towards 174°.

6.4.4.2 Porphyry Mineralization

An example of porphyry stockwork mineralization was discovered in a float specimen at 213,311 E and 2,895,897 N. The host rock, feldspar porphyry (“fp”), is cross-cut by 1 to 4 mm thick sheeted quartz veinlets that, combined, make-up 20% of the volume of the float sample (Figure 6.13). Fracture surfaces within this rock are coated with copper oxide. The feldspar porphyry outcrop that is associated with float specimen has a 050° strike and until stockwork-bearing feldspar porphyry outcrop is found, it has been assumed that the sheeted stockwork has the same strike.

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Figure STYLEREF 1 \s 6. Sheeted Quartz Veinlet Mineralization Within Feldspar Porphyry

Source: Cordery (2009)

Figure 6.13 Description: Sheeted quartz veinlet mineralization within Feldspar Porphyry (fp). The host feldspar porphyry is cross-cut by 1 to 4 mm thick sheeted quartz veinlets which, combined, make-up 20% of the rock volume. Fracture surfaces within this rock are coated with copper oxide. This sample was taken from a float sample at 213,311 m E and 2,895,897 m N and yielded 2.89 g/t Au.

6.4.5 Mineralized Zones of the SJG Mine

The main areas of current exploration activity in the SJG Mine are San Pablo and Tres Amigos. Potential is also available at La Union, Tajo Verde, and along the Purisima trend. La Prieta also has potential, but currently lacks underground mapping and is difficult to drill from surface.

6.4.5.1 San Pablo Zone

Control at San Pablo the main quartz vein-breccia currently has a strike length of almost 750 m and a down-dip extension of 500 m. The dip ranges from 10 to 39° towards 290°. This low angle, tabular structure, and the narrower, less continuous structures above and below it, were formed during horizontal-oblique compression resolved at some point in a prevailing transpressive phase. Fracture formation occurs within, above and locally below the unconformable contact between the rhyodacite volcanics and the metasedimentary basement (Figures 6.14 and 6.15). As compression

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was applied parallel to the unconformity extension in the vertical plane occurred and the resulting open spaces were infilled with siliceous hydrothermal bearing gold and base metal sulfides.

The structures are observed at or close to the basement–rhyodacite contact and cut-up through the volcanic sequence towards the east-southeast, giving a sigmoidal form to the quartz vein-breccias. The quartz vein-breccias appear to lack favorable footwall or hanging wall lithologies and may be in contact with the andesite porphyry sills, metasedimentary rocks, rhyodacite and andesite. In its distal regions, the San Pablo structure can have a very low angle dip). Some footwall veinlets in the Gossan Cap can even be horizontal (Figure 6.16). The sigmoidal quartz vein breccias dilate between near-vertical north-trending controlling faults. Although the San Pablo structure has a 018° strike an 80 m wide high-grade zone, or shoot, that cuts across the mineralized structure has a strike of 065°. This disparity between the orientation of the vein and the strike of the high-grade shoot is caused by the fact that the vein mirrors the dip and dip direction of the basement-volcanics contact, which has a strike of 018°, whereas the hydrothermal fluids are sourced from a more steeply dipping fault down dip that has a 065° strike.

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Figure STYLEREF 1 \s 6. San Pablo Section 2

Source: Cordery (2009)

Figure 6.14 Description: San Pablo Section 2. The quartz vein-breccia occurs at the basement-rhyodacite contact and along the contacts of lava flows within the andesites and rhyodacites above. It is common to see veins cross from one contact upwards to a higher one in transpressive or compressive controlled deposits giving the resultant vein a sigmoidal form in cross section. The rhyodacite dome may have acted as a buttress against which the QVBX veins have terminated. The andesite porphyry sills were probably emplaced during similar phases of transpression.

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Figure STYLEREF 1 \s 6. San Pablo Section 8

Source: Cordery (2009)

Figure 6.15 Description: San Pablo Section 8. The upper, distal regions of the vein system at San Pablo are usually very flat lying to horizontal as is indicated in this section. The quartz vein-breccias are emplaced within zones bound down-dip (not visible in this section) and up-dip by steeply dipping controlling faults. The controlling fault indicated in this section is one of a series of north-striking faults.

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Figure STYLEREF 1 \s 6. Flat-Lying 20 cm Thick Quartz Vein-Breccia Within Andesites in the Gossan Cap, Within the Upper Distal Region of the San Pablo Zone

Source: Cordery (2009)

Figure 6.16 Description: Flat lying 20 cm thick quartz vein-breccia within andesites in the Gossan Cap, the upper, distal, region of the San Pablo Deposit. Flat and shallow-dipping quartz veins reflect emplacement under compressive conditions during a period of transpression. The plane of maximum compression is into the page. Sampled location: 213076 m E and 2897219 Flat and shallowly dipping quartz veins indicate emplacement during compression resolved during a period of transpression. The plane of maximum compression is into the page. Location: 213,076 East and 2,897,219 North (see Figure 1). View looking towards 117°.

6.4.5.2 Tres Amigos Zone

In the Tres Amigos Mine, the main quartz vein-breccia with accompanying hanging wall and footwall stockwork currently has a strike length of 365 m and a down dip extension of 210 m. The dip of the quartz vein-breccia at surface is 54° towards 330°, i.e. the strike is 060° (Figures 6.17 and 6.18). Although this is a steeper dip than the San Pablo structure this vein was also emplaced during an episode of compression. The main quartz vein-breccia dips more steeply here as the unconformable contact between the metasedimentary rocks and the volcanics dips more steeply in this area and it is the unconformity and the bedding planes within the volcanic rocks that act as loci for vein emplacement. The 060° strike for this vein corresponds with the 065° striking high-grade shoot that transects the San Pablo structure.

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Figure STYLEREF 1 \s 6. Perspective View of the Tres Amigos Structure

Source: Cordery (2009)

Figure 6.17 Description: Perspective view of the Tres Amigos structure showing that it is composed of a main, moderately- to shallowly-inclined structure that dips towards 330° with a secondary zone of mineralization enclosed within a roughly vertical, 304° striking structure. This structure is ~50 m wide and coincides with a straight-line lineament at the surface.

Figure STYLEREF 1 \s 6. Photograph of the Tres Amigos Mine Workings

Source: Cordery (2009)

Figure 6.18 Description: Photograph of the Tres Amigos Mine showing how the vein thickness decreases up-dip, as indicated by the decreasing size of the workings. This relationship is caused by the vein terminating against a 060° striking, sub-vertical, oblique, strike-slip. All the veins in the SJG Project area terminate in this manner and this is the main reason why they are difficult to identify in surface outcrop. Location: 213,657 East and 2,898,043 North. View looking towards 066°.

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Further evidence that the vein was formed during a phase of compression is shown by the change in dip from 54 to 27° in its central portion with an accompanying increase in thickness (Figure 6.19). Veins that become thicker as they become more shallowly dipping are formed during reverse fault movement and reverse fault movement implies compression. Vein extent up- and down-dip is controlled by sub-vertical faults that have an average strike of 060° (Figure 6.19) As the mineralized structures approach the controlling faults they gradually reduce in thickness and eventually terminate at negligible thickness when the fault is contacted. It is theoretically possible, however, for more veins to form on the other sides of the controlling faults, both up-dip and down dip, and this has obvious implications for exploration. The only factor that limits down-dip extension, for that is the one that troubles exploration the most, is the position of the current exploration horizon relative to the mineralization palaeohorizon. In other words, the structures may be there, but if they are at an elevation that was too deep for the optimum boiling process required for mineral deposition then they will be un-mineralized. In contrast to the San Pablo Vein the Tres Amigos Structure has a secondary vertical component in its northeastern region. The voids formed subsequently in the secondary Tres Amigos structure would have.

6.4.5.3 La Union-Mochomera Zone

The mineralization in La Union-Mochomera dips 10° to 30° towards 305°, and therefore has a similar orientation to the mineralization in the San Pablo structure and would have been formed during the same compressional environment. The structural interpretation of La Union-Mochomera, compared with San Pablo, is hampered by its lower density of drilling, however. The La Union-Mochomera mineralization currently has a strike length of 400 m and a down dip extension of 350 m.

The La Union area differs from San Pablo in that the quartz vein-breccias are narrower, (the thickest quartz vein-breccia drill hole intercept being <2 m) and are less easily extrapolated up and down dip or between adjacent sections. In fact, only one section in the La Union area had appreciable inter-drill hole connectivity (Figure 6.20). Also, in contrast to San Pablo, the veins are mainly emplaced well above the unconformity within andesites, with no veins occurring at the rhyodacite basement contact.

If the La Union-Mochomera area can be extended to include the La Parilla Mine to the southwest, then it is possible to detect a 065° striking alignment in the best Au (g/t x m) drill hole intercepts. This would register with an identical trend in best Au intercepts that cut across the San Pablo structure, implying that both mineralized zones are sourced from a similarly trending sub-vertical down-dip fault. More drilling in the La Union-Mochomera area may be required to confirm the presence of this high-grade shoot.

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Figure STYLEREF 1 \s 6. Tres Amigos Section 3

Source: Cordery (2009)

Figure 6.19 Description: Tres Amigos Section 3. At Tres Amigos the main quartz vein-breccia has a steeper dip than the veins in other parts of the district and this is because here strata also has a steeper dip and the veins have a preference to form within bedding planes. That the vein was formed during a phase of compression is not in doubt owing to its thickness increasing in areas of lower angle dip. The qvbx is emplaced between two near-vertical controlling faults that are present at surface and have a strike of 060°. It is theoretically possible that further mineralization could develop to the northwest of the down structure controlling fault.

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Figure STYLEREF 1 \s 6. Tres Amigos Section 4

Source: Cordery (2009)

Figure 6.20 Description. La Union Section 4. The quartz vein-breccias in the La Union area are narrower and have lower inter-drill hole and inter-section continuity than other parts of the district. As with San Pablo, the qvbx seems to form behind a buttress of thickened rhyodacite – considered to be the southern flank of a relict rhyodacite dome. In contrast to San Pablo, the qvbx is emplaced higher in the volcanic succession.

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6.4.5.4 Palos Chinos Zone

Only seven drill holes intercepted this trend, but vein orientation data obtained from underground plans show that the mineralization in this area has a similar trend to a 170° striking strike-slip fault that dips steeply to the west. This strike-slip fault is one of the three sinistral strike-slip faults which progressively displace the volcanic-basement contact progressively southeastwards. The veins underground dip between 41 and 64° to the southwest and were formed during sinistral transgressive movement along the 170° strike-slip fault. The mineralization has not been emplaced within this strike-slip fault however, the fault has acted as a controlling fault for compressive forces that have acted obliquely to it and the mineralization has been emplaced within the moderately dipping open space fractures that have resulted from this compression.

6.4.5.5 Purisima Zone

As with the Palos Chinos trend, the main controlling features at Purisima are the strike-slip faults that displace the volcanic-basement contact southeastwards. The Purisima trend is bounded by a 133° striking pair of parallel strike-slip faults 320 m apart that acted as the controlling faults on the mineralization which occurs between them. Sinistral transpression about these controlling faults causes the bounded strata to pop open in the vertical sense allowing the eventual, and probably simultaneous, emplacement of the epithermal mineralization.

Drilling to date has shown that most of the mineralization occurs as 1 to 2 m thick quartz vein-breccias with hanging- and footwall stockwork. Most of the veining appears in the andesites and rhyodacites with no appreciable basement veining. The veins dip very shallowly to the southwest in the south of the and become progressively more steeply dipping northwards where they dip up to 34° to the southwest (Figures 6.21 and 6.22).

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Figure STYLEREF 1 \s 6. Purisima Section 3

Source: Cordery (2009)

Figure 6.21 Description: Purisima section 3. The quartz vein-breccias in Purisima are controlled by oblique compression as opposed to the more orthogonal compression that occurred at San Pablo, Tres Amigos and La Union. The sub-vertical faults in this section are sinistral strike-slip faults. Key: circle with dot = sense of movement out of the page; circle with cross = block sense of movement into the page.

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Figure STYLEREF 1 \s 6. Purisima Section 6

Source: Cordery (2009)

Figure 6.22 Description: Purisima section 6. Even though the compression that controlled the veining in Purisima is more oblique to the dip direction of the basement-volcanics contact than in other parts of the district vein emplacement still approximates to the layering in the rocks. Key: circle with dot= sense of movement out of the page; circle with cross= block sense of movement into the page.

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6.4.5.6 La Prieta Zone

Underground visits at La Prieta have determined that the worked veins mainly have low angle dips and dip towards the north-northwest. In the majority of cases, the stopes occur entirely within the metasedimentary basement in close proximity to, and just above, the unconformable contact with the rhyodacite units above. The folded metasedimentary rocks dip steeply to the southwest in the stoped areas and at no point are the workings observed to exploit the bedding planes. This proves that, despite there being multiple planes of weakness in the sedimentary rocks to be exploited by vein emplacement, the overriding control on the eventual mineralization event are the low-angle voids formed during transpression. In the Rosario Mine, which connects to the La Prieta workings, veins are present within the rhyodacite unit and dip 36° to the northwest. Very little remnant vein material is visible in the stopes at La Prieta, and therefore the exact nature of the mineralization in this mine is not known. To date, only epithermal veinlets ~5 mm thick have been found in the stope walls (Figure 6.23) but, to date, no quartz vein-breccia. The low-angle of dip shown in the workings implies that the veins were emplaced during a compressive phase. A study of one of the stopes shows that the more shallowly-dipping, central portions of the veins have a greater thickness than the steeper dipping up- and down-dip parts of the vein, which provides further proof for the theory that they formed under a compressional structural regime (Figures 6.24 and 6.25).

Figure STYLEREF 1 \s 6. Quartz Veinlet Mineralization in the La Prieta Mine Zone

Source: Cordery (2009)

Figure 6.23 Description: Example of the quartz veinlet mineralization observed in the La Prieta Mine. The wall rock, a quartz-eye rhyodacite just above the unconformable basement contact, is cross-cut by 0.5 mm thick, white, epithermal quartz veinlets. The wall rock contains <1% disseminated 0.5 mm size pyrite crystals. The veinlets dip 18° towards 003°. To date, QVBX mineralization has not been found in La Prieta, so these sheeted quartz

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veinlets appear to have constituted the main mineralized target in this Mine. Photograph taken in the wall of a stope. View is looking towards 190°.

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Figure STYLEREF 1 \s 6. Photograph of Two-Meter High Stope Within the La Prieta Zone

Source: Espinoza and Sandefur (2012) and Cordery (2009)

Figure 6.24 Description: Metasedimentary rocks form the footwall and hanging wall of the stope. View looking towards 090°.

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Figure STYLEREF 1 \s 6. Section Through the La Prieta Zone Showing How the Height of the Stope, and Therefore the Thickness of the Mineralization, Increases as the Dip Shallows

Source: Cordery (2009)

Figure 6.25 Description: An abrupt change in the dip of the vein from 45° to 18° coincides with an increase in vein thickness from 1.5 m to 2.6 m in the central portion of the vein, indicating formation during a phase of reverse compression during transpression. The vein would have formed between two steeper dipping, possibly vertical, controlling faults. The down-dip region of the stope was not visible and the vein termination at the higher angle is proposed only, although it is also possible that the vein merely continues at the 18° dip and terminates against the controlling fault on the left-hand side of the diagram.

6.5 Deposit Type

Exploration by Dyna de Mexico and its predecessors has focused principally on discovery and definition of a low-sulfidation epithermal gold-silver deposit. Mineral deposits of this type are well documented throughout the Sierra Madre Occidental.

Alteration patterns and fluid inclusion data studies show that precious metal precipitation generally occurs between 180 to 240° C, which corresponds to depths of 150 to 450 m below the paleosurface (Figure 6.26).

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Figure STYLEREF 1 \s 6. Epithermal Gold-Silver Mineralizing System

Source: Buchanan (1981)

Such epithermal Au-Ag deposits commonly exhibit a top to bottom vertical zonation as follows:

 Precious metals poor, paleosurface, sinter (Hg-As-Sb);

 Au-Ag-rich, base metal poor “bonanza zone” (Au-Ag-As-Sb-Hg);

 Ag-rich, base metal zone (Ag-Pb-Zn-Cu); and

 Barren pyritic root.

Alteration accompanying low sulfidation epithermal mineralization is controlled by the temperature and pH of the circulating hydrothermal fluids, and its distribution therefore can also be spatially zoned. Alteration minerals that occur proximal to mineralization are illite, sericite, calcite and adularia, whereas smectite and chlorite typically occur more distally.

In terms of geologic and tectonic setting, the precious and base metal deposits at the SJG Project are typical of those found elsewhere in the Sierra Madre, and indeed of epithermal deposits worldwide. Similarities include:

 Concentration of mineralization within LVS rocks, particularly near the basal contact with underlying sedimentary basement;

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 Strong structural controls on veins; and

 Association of veins with extensional block faulting (i.e. The Graben) and, perhaps, with the onset of bimodal volcanism associated with UVS magmatic activity.

The localization of many epithermal deposits can be directly associated with the presence of volcanic centers’ which themselves are an important component of regional-scale structural control. These faults likely provide the fundamental plumbing system that focused fluids derived from deeper magmatic heat sources.

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7.0 Exploration

DynaResource has completed exploration activities and drilling programs on the SJG Project Property since 1999. The non-drilling exploration work was completed mainly in the early 2000s (Kaip and Childe, 2000). The following sections contain excerpts from Kaip and Childe (2000).

7.1 Surface and Underground Exploration

7.1.1 Introduction and Previous Exploration Works

The earliest exploration work documented in this Report from San José de Gracia dates back to 1992 and 1997 when Industriasl Peñoles and Golden Hemlock completed limited drilling campaigns at Tres Amigos, Gossan Cap, San Pablo, La Union and La Purisima areas. Previous geological work to these dates is unknown to the QPs.

DynaUSA started carrying out exploration activities at the SJG Project in 1999. Since June 2000, this work has continued under the auspices of Dyna de Mexico. These activities have included geological mapping, geochemical stream sediment and rock chip sampling, diamond drilling, and the pilot mining and material processing activities of 2003 to 2006. Geochemical surveys comprise systematic sampling of available outcrops and creeks and analyzing these samples for gold contents. To date, the rock chip geochemical surveying has covered an area of ~5-km (east-west) by 5.5 km (north-south), with an approximate grid density of 100 by 100 m. There are several areas containing anomalous gold values located in bedrock and creek drainages that include areas that were historically mined as well as new anomalies yet to be investigated.

According to Kaip and Childe (2000),

“Field work in 1999-2000 has begun to demonstrate that rather than being discrete mineralized zones, the different areas outlined above represent defined portions of longer mineralized trends, locally displaced by brittle faults. Detailed surface and underground mapping are proving an effective technique in determining the sense of movement and amount of offset on these post-mineralization faults, a critical factor in spotting drill targets to find the extension of these mineralized zones.”

The discussion following summarizes surface and underground work conducted on behalf of DynaResource Inc. (“DynaResource”) at San José de Gracia in the period between November 1999 and April 2000, which included rehabilitation, geological mapping and sampling of several past producing underground mines, and geological mapping, trenching and sampling of surface exposures to better delineate the surface trace of mineralization above and between the historical workings. According to Kaip and Childe (2000), “Within this program a total of 544 rock samples (chip channel, grab and float) were collected and analyzed for gold by atomic absorption with a fire assay finish (AA-FA) and 38 additional elements by Inductively Coupled Plasma (“ICP”). The average gold grade of all 544 rock samples is 6.51 g/t [Au].”

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All samples collected under this sampling program were placed in sample bags and sealed to prevent contamination. All samples were then submitted for analysis to Bondar-Clegg & Co, North Vancouver, BC. Bondar-Clegg is an internationally recognized laboratory meeting all established criteria related to reporting requirements for mining and exploration companies under National Instrument 43-101. Bondar-Clegg is independent of Dyna de Mexico and the Issuer.

Mr. Luna recognizes that the average grade reported in assay results by Bondar-Clegg, for the 544 samples reported by Kaip and Childe (2000), is consistent with the average grade of the Indicated and Inferred Mineral Resources as reported in the Mineral Resource Estimate herein disclosed.

Although some of the exploration results reported under this section may be superseded by recent drilling results of 2007 to 2011; the exploration results and information described here are useful for the overall understanding of the geology at SJG and are expected to assist with planning further drilling programs and overall development of the Project.

7.1.2 La Purisima Compilation

According to Kaip and Childe (2000):

“The La Purisima trend represents the area of greatest past production at San José de Gracia. Prior to termination of mining activities by the Mexican Revolution, approximately 471,000 ounces of gold was produced from oxidized, high-grade (66.7 g/t average) quartz veins in the Anglo, Rosario and La Cruz ore bodies on Purisima Ridge (see Figure 7.1). Compilation of historical data has outlined the dimensions of the mined portions of the Purisima Ridge ore bodies and can be used to plan future exploration on the La Purisima Trend and to demonstrate the potential for the other main mineralized trends on the property, which have undergone considerably less historical development.

Mining of the La Purisima Trend exploited a southeast striking, moderately (45 to 50°) southwest dipping quartz vein system along a 1.25 km strike length and 400 m down-dip (250 m vertical extent). A 400 m down-dip extent is approaching the upper limit for gold deposition in epithermal vein systems and is comparable to that of world class epithermal gold deposits such as El Peñon in Chile (up to 275 m down-dip), Emperor in Fiji (up to 700 m down-dip) and Tayoltita in Mexico (up to 600 m down-dip). Based on the spacing of deposits along the La Purisima Trend, it appears that the mines were exploiting high-grade, southeast-plunging mineralized shoots that developed at regular intervals along the trend of the vein system. The orientation of workings in the Anglo suggests that this ore body may have formed at the intersection of southeast and southwest trending vein systems, with the southwest trending veins extending towards mineralization of the La Parilla to Veta Tierra Trend.”

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Figure STYLEREF 1 \s 7. Geological Map Showing the Underground Workings at La Purisima Ridge

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Source: Espinoza and Sandefur (2012); originally from Kaip and Childe (2000)

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7.1.3 Palos Chinos Trend (Palos Chinos and Tajo Verde Mines)

According to Kaip and Childe (2000):

“The Palos Chinos trend consists of the south striking, moderately west dipping quartz-chlorite sulphide (or oxide) Palos Chinos fault breccia vein, as well as several hanging wall veins, which were previously mined over a 270 m strike length and 70 m down-dip. A single drill hole (SJG97-63) completed beneath the historical workings by Golden Hemlock in 1997 intercepted the Palos Chinos Vein 100 m down-dip from the deepest workings, extending the known down dip extent of this mineralized trend to 180 m. Preliminary surface work conducted by DynaResource and limited drilling (SJG97-55) by Golden Hemlock indicates that Palos Chinos Trend continues for at least 500 m to the south, thereby increasing the minimum strike length of the Palos Chinos Trend to 800 m. To the north, the vein is truncated by a northwest striking fault with apparent right lateral displacement. Work has not yet begun to trace the northern continuation of the Palos Chinos Trend.

Work in 1999 and 2000 focused on mapping and sampling the Palos Chinos workings on all levels. This work demonstrated that the mined-out area of the Palos Chinos Vein averages 1.0 to 1.5 m in thickness and dips 60 to 80° west. However, mineralized shoots are developed along the trend and are characterized by:

 A change in orientation, from south to southeast striking;

 Shallowing of the dip to 35 to 40°;

 Thickening up to 2 to 4 m;

 An increase in the thickness and intensity of chlorite stockwork adjacent to the vein;

 An increase in gold grade, with individual samples with up to 92.5 g/t Au over 0.7 m, and

 A mineralized shoot sample transect averaging 7.6 g/t Au. over 7.6 m, including 13.4 g/t Au over 3.4 m in the Palos Chinos Vein itself (Figure 7.2).

A total of 180 samples were collected along the Palos Chinos Trend from surface exposure and underground workings. Of this number, 74 samples were collected of the Palos Chinos Vein and adjacent mineralized hanging wall and footwall. Based on these samples, the Palos Chinos Vein averages 11.4 g/t Au over 1.2 m. Mining above the Palos Chinos level has also exposed a laterally continuous hanging wall vein 4 to 5 m above the Palos Chinos Vein. Three samples collected from this vein returned between 11.3 and 18.5 g/t Au and contain appreciable Cu and locally Pb and Zn concentrations over narrow widths. A summary of significant samples collected from the Palos Chinos Vein is presented in Table 7.1.

The 1.2 m thickness of the Palos Chinos Vein is based on an average of all sample interval widths and does not reflect the breadth of the stopped-out area between the Palos Chinos and Saramiento levels. To determine the potential width of the Palos Chinos trend, a sample transect, between the Palos Chinos and HW Veins returned 7.4 g/t Au over 7.6 m (Figure 7.2). From these results, it is apparent that

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portions of the Palos Chinos Trend have the potential to be amenable to mechanized mining.”

Figure STYLEREF 1 \s 7. Assays for Sample Transect from the Footwall Contact to the Hanging Wall of the Palos Chinos Vein

Source: Espinoza and Sandefur (2012)

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Figure STYLEREF 1 \s 7. Photograph of the Chlorite Rich Portion of the Palos Chinos Vein

Source: Espinoza and Sandefur (2012)

Table STYLEREF 1 \s 7. <br>Significant Chip Channel Samples from the Palos Chinos Underground
Samples	Level	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
145748, 49 & 87	Palos Chinos	Vein & HW, FW	3.7	15	11.9	4,154	49	131
145188	Palos Chinos	Vein	1.1	19.2	15.6	6,746	237	312
145740	Palos Chinos	Vein	0.5	22.8	15.1	3,553	31	161
209153, 55	Palos Chinos	Vein	0.9	24.7	10.2	168	20	20
145747	Palos Chinos	Vein	1.0	27.6	20.6	12,000	52	272
145733	Palos Chinos	Vein	0.6	62.3	22.4	166	26	11
208921, 22	Stopes	Vein & HW	1.8	5.2	9.5	2,896	147	448
208912	Stopes	Vein	1.9	5.6	5.3	1,180	91	206
208937	Stopes	Vein	0.8	6.5	12.5	4,413	103	592
208938, 39	Stopes	Vein & HW	1.8	6.6	10.8	3,466	632	251
209754	Stopes	Vein	0.9	6.9	16.8	5,459	198	738
208914	Stopes	Vein	0.9	8.5	8.5	1,994	14	141
209757	Stopes	Vein	0.6	8.5	16.9	5,198	86	141

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Table STYLEREF 1 \s 7. <br>Significant Chip Channel Samples from the Palos Chinos Underground
Samples	Level	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
208906	Stopes	Vein	1.3	9.6	15.2	5,600	63	216
209760	Stopes	Vein	0.5	9.7	45.3	15,000	167	741
208905	Stopes	Vein	1.5	13.7	23.3	2,939	683	2,797
208904	Stopes	Vein	1.1	15.0	11.7	2,854	28	162
209758	Stopes	Vein	1.2	17.6	8.3	2,445	19	169
208936	Stopes	Vein	0.5	18.4	20.4	6,433	540	501
208907	Stopes	Vein	1.5	19.2	11.3	3,392	33	186
208934, 35	Stopes	Vein & HW	1.9	19.3	28.7	6,742	1,472	2,557
208910	Stopes	Vein	0.6	20.3	14.3	4,100	52	258
208933	Stopes	Vein	0.9	27.0	14.3	5,323	180	284
209755	Stopes	Vein	1.2	45.4	35.8	18,000	43	182
209756	Stopes	Vein	0.6	46.4	18.6	2,702	11	99
208956	Saramiento	Vein	1.7	5.8	6.8	1,824	61	184
208955	Saramiento	Vein	1.4	6.0	5.1	1,715	38	158
208957 to 59	Saramiento	Vein & FW	4.0	8.1	15.3	3,336	1,950	1,460
209769	Tajo Verde	Vein	0.8	13.0	7.6	780	40	23
209764	Tajo Verde	Vein	0.6	23.0	15.7	302	270	36
209768	Tajo Verde	Vein	0.7	35.6	15.5	761	151	19
209763	Tajo Verde	Vein	1.0	53.6	26.4	333	24	22
209767	Tajo Verde	Vein	0.7	92.5	31.1	1,089	358	36
208924	Stopes	HW vein	0.2	18.5	38.5	6,023	>10,000	>10,000
208927	Stopes	HW vein	0.6	14.2	20.9	4,444	48	213
208929	Stopes	HW vein	0.25	11.3	251	>10,000	287	513

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7.1.4 La Parrilla- Veta Tierra Trend

7.1.4.1 Introduction

According to Kaip and Childe (2000):

“The La Parilla to Veta Tierra trend comprises five southwest striking, moderate to steeply northwest dipping veins that have been traced over a strike length of 600 m. The veins are exposed on surface by many historical pits and dumps and by more recent underground workings, including, from southwest to northeast, the La Parilla, La Mochomera, Sta. Eduwiges, La Union and Veta Tierra Mines, all of which exhibit small-scale past production. To the southwest, the La Parilla to Veta Tierra trend intersects the La Purisima Trend in the region of the Anglo Mine. Review of historical plans in the Anglo area indicate that in addition to south striking, west dipping veins, mining also exploited southwest striking veins that are likely the continuation of the La Parilla to Veta Tierra Trend. Northeast of Veta Tierra, the Trend is open towards the La Prieta Trend and may form the southwestern continuation of the La Prieta trend. Currently, the La Parilla to Veta Tierra Trend exhibits excellent along strike potential between two main areas of past production (La Purisima – 470,000 oz. Au and La Prieta – 215,000 oz. Au). Work to date on the Parilla to Veta Tierra Trend has demonstrated potentially economic gold mineralization within all five veins. Sample highlights from the underground workings along the La Parilla to Veta Tierra Trend include:

 An average grade of 17.7 g/t Au over an average vein thickness of 1.6 m from the La Union West Vein; and

 An average grade of 20.0 g/t Au over an average vein thickness of 0.7 m from the Santa Eduwiges Vein.

Of the 94 vein samples collected from surface and underground along the La Parilla to Veta Tierra Trend in 1999 and 2000, the veins averaged 10.6 g/t Au over an average vein thickness of 0.86 m. Alteration and boiling textures within veins near the Veta Tierra Mine suggest that the current level of exposure of the La Parilla to Veta Tierra Trend is near the top of the mineralizing system. If this interpretation proves to be correct, the La Parilla to Veta Tierra Trend hosts significant exploration potential below the current level of exposure. Down-dip continuity of the veins within the La Parilla to Veta Tierra Trend has been confirmed by two phases of drilling completed by Peñoles in 1992 and by Golden Hemlock in 1997. In addition to down-dip potential, the vein system is interpreted to coalesce at deeper levels into a central feeder vein, which is likely to host significant gold mineralization through increased vein widths and the development of structurally controlled ore shoots.”

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7.1.4.2 Veta Tierra - La Parrilla Trend

According to Kaip and Childe (2000):

“The Veta Tierra – La Parilla Trend, located north of the Palos Chinos trend, comprises five principal southeast striking veins and several subsidiary south striking veins exposed over a width of 150 m and a minimum strike length of 700 m. The Trend is exposed on the surface by many historical pits and dumps and by more recent underground workings including from southwest to northeast: La Parilla, La Mochomera, Santa Eduwiges, La Union and Veta Tierra, all of which have seen small-scale production. The Veta Tierra – La Parilla Trend is open along strike to the La Prieta area down the west slope of the Arroyo El Rosario, to the southwest towards the Anglo Mine below La Purisima Ridge. Currently, the Veta Tierra – La Parilla Trend exhibits excellent along strike potential between two main areas of past production.

Veining in the Veta Tierra – La Parilla Trend cuts up-section from sedimentary hosted mineralization at its northeast end to rhyodacite hosted mineralization at Veta Tierra. Southwest of Veta Tierra, the Veta Tierra – La Parilla Trend appears to be hosted at or near the contact between rhyodacite tuffs and overlying massive andesite. Between La Mochomera and La Parilla, the Trend cuts up into a massive andesite sequence.

Work in 1999 and 2000 focused on detailed mapping and sampling of the underground workings and surface exposures along the strike of the Trend. Re-habilitation of the La Parilla and Santa Eduwiges workings was initiated to facilitate in the mapping and sampling in these areas.”

7.1.4.3 Veta Tierra

According to Kaip and Childe (2000):

“The Veta Tierra Mine, last exploited by local miners during the 1980’s extends some 60 m along strike and 60 m down-dip. In the underground the vein is oxidized to a hematite quartz breccia and locally contains chalcanthite after copper sulphides. The vein is hosted within silicified rhyodacite tuffs that grade outward into pervasively illite altered tuffs. To the southwest of Veta Tierra, the host rocks are pervasively clay altered.

In the underground, the vein is cut by many east-west and northwest faults exhibiting normal displacement of <5 m. At the northeast end of the underground, the vein is offset by a north dipping normal fault with 22 m apparent right lateral displacement, confirmed by surface mapping. To the southwest the underground workings have collapsed.

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Surface exploration to the northeast and southwest of the Veta Tierra Mine has been successful in increasing the strike length of the vein. To the northeast the vein has been found to extend an additional 200 m through a series of historical workings and outcrop exposures. Samples collected from the vein are locally high grade, including 22.8 g/t Au over 0.5 m, and 23.6 g/t Au over 0.5 m. To the southwest the vein has been traced in outcrop and historical workings to the La Union - Santa Eduwiges area where it is interpreted to link up with the vein exposed in the Santa Eduwiges Mine. Between Tierra and Santa Eduwiges, the trace of the vein is less distinct and occurs as a discrete hematite-stained fault plane bounded by silicification. Reverse circulation drilling (“RC”) by Peñoles in 1992 intercepted the vein in two drill holes, returning 18.3 m of 0.3 g/t Au in drill hole 92-02, and 18 m of 0.3 g/t Au in drill hole 92-04.

Of the 18 samples collected from the Veta Tierra workings and on surface, the vein averages 6.0 g/t Au over 0.8 m (Table 7.2) and is comparable with the results obtained by CRM in 1981 (8.6 g/t Au over 0.8 m).”

Table STYLEREF 1 \s 7. <br>Significant Channel Sample Results for the Veta Tierra Vein from Surface and Underground
Sample	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209585	Vein	0.5	5.5	5.0	188	35	121
142015	Vein	2.00	5.6	4.3	97	22	16
209564	Vein	0.4	10.6	23.4	1,239	34	16
142016	Vein	0.5	22.8	17.5	65	77	17
209558	Vein	1.0	2.8	12.4	581	19	10
209557	Vein	0	1.6	1.0	38	27	12
208973	Vein	1.0	1.6	0.6	22	11	8
208980	Vein	1.0	2.5	24.0	162	413	19
208979	Vein	1.2	4.0	3.8	145	105	16
145105	Vein	0.2	5.6	20.8	4,038	83	139
145106	Vein	0.9	15.5	14.6	256	84	16
145107	Vein	0.5	9.6	25.2	2,954	93	147
145108	Vein	0.5	23.6	32.1	8,009	95	65
145109	Vein	1.2	1.1	5.7	195	138	13
145110	Vein	0.5	13.3	18.8	3,494	85	222
208942	Vein	0.9	4.6	75.0	5,976	145	133
208943	Vein	1.1	1.0	4.8	1,537	97	116
208944	Vein	0.6	3.1	7.9	1,773	19	68
208940	WR	0.4	0.7	8.1	1,507	151	60
208941	WR	0.7	0.1	4.0	151	20	11
145112	FW	2.0	0.2	3.5	92	65	21
145111	HW	1.5	0	0.2	58	5	6

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Table STYLEREF 1 \s 7. <br>Significant Channel Sample Results for the Veta Tierra Vein from Surface and Underground
Sample	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
208945	HW	0.4	0.7	2.3	642	37	13

7.1.4.4 Southeast Vein

According to Kaip and Childe (2000):

“The Southeast Vein, located 90 m southeast of Veta Tierra, is a northwest dipping fault breccia vein exposed in a series of historical surface workings and in float for 280 m. The vein is oxidized to hematite-rich quartz breccia. Samples collected from the vein are anomalous and average between 4.7 and 6.8 g/t Au (Table 7.3). Drilling by Peñoles in the Veta Tierra area intersected the Southeast Vein in two RC [drill] holes (92-05 and 29-02) and returned up to 1.5 m of 1.8 g/t Au in RC [drill] hole 92-05. Continuing exploration of the Southwest Vein will involve trenching and sampling along strike to better evaluate this target.”

Table STYLEREF 1 \s 7. <br>Significant Vein Intercepts South of the Veta Tierra Workings<br>(Southeast and South Veins)
Sample No.	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209560	SE vein	1.2	4.7	16.8	144	51	20
209559	SE vein	1.0	5.3	10.4	197	108	17
145192	SE vein	dump	4.7	15.4	62	102	30
145194	SE vein	1.5	6.8	6.9	151	384	12
145195	S vein	2.0	4.1	3.8	104	669	22
145193	SE vein	1.3	32.9	19.2	138	1,766	28
142018	S vein	0.5	3.2	3.9	206	1,876	26
145189	S vein	1.0	1.9	1.6	88	14	17
145190	S vein	1.1	4.2	1.6	96	22	19

7.1.4.5 South Vein

According to Kaip and Childe (2000):

“The South Vein is a west dipping secondary vein that has been traced 100 m on surface between the Southwest and Veta Tierra Veins. The vein is exposed in a series of small surface workings and consists of hematite-rich quartz breccia material. Samples collected of the vein are generally low in gold, averaging between 1.9 and 4.1 g/t Au (Table 7.3). However, one sample of the vein at the

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intersection of the South and Southwest veins returned 32.9 g/t Au over 1.3 m. The sample was collected from a small stope and suggests that an ore shoot may exist at the junction of these two veins. Additional work in the area will focus on delineating the size of this ore shoot to determine if it warrants drill testing.”

7.1.4.6 La Union-Santa Eduwiges Area

According to Kaip and Childe (2000):

“The Santa Eduwiges and La Union Mines expose four northwest dipping fault breccia veins and a flat zone of mineralization (see Figure 6.3). These include:

 The La Union and La Union West Veins and intervening flat zone of mineralization in the La Union Mine;

 The Santa Eduwiges Vein, which is the southeast continuation of the vein exposed in the Veta Tierra Mine to the northeast; and

The Northwest Vein is located 65 m northwest of the La Union Portal.

Work from 1999 and 2000 focused on detailed surface mapping and prospecting, underground rehabilitation of the La Union and Santa Eduwiges workings, and detailed underground mapping and sampling in the La Union Mine. Results of this work are summarized in the following sections.”

“The La Union Mine has seen recent mining activity owing to the high-grade tenor of mineralization hosted in the La Union West Vein, a northwest dipping fault breccia vein. Previous sampling of this vein has returned >200 g/t Au (M. Linn, Pers. Comm.). In addition to the La Union West Vein, the La Union workings expose a second northwest dipping fault breccia vein 25 m southeast of the La Union West Vein (the La Union Vein) and a zone of flat-lying mineralization in the intervening ground.

The La Union and La Union West Veins are quartz-chlorite fault breccia veins containing pyrite and chalcopyrite mineralization. The La Union Vein is exposed for 40 m in the underground workings. The vein strikes southwest, dips steeply (>70°) to the northwest and is offset by several normal faults with minor (<0.5 m) displacement. The La Mochomera workings, located 120 m to the southwest, are inferred to be the continuation of the La Union Vein. Samples collected from this La Union Vein averaged 3.3 g/t Au over 0.8 m and are significantly lower in grade than those collected by CRM in 1981 (Table 7.4). CRM sampling of the same vein returned 202 g/t Au over 0.4 m, 20.4 g/t Au over 0.6 m and 38 g/t Au over 0.7 m. Based on the 1999 and 2000 results, additional sampling is planned for the La Union Vein. In contrast, the La Union West Vein, exposed for 20 m along strike, dips moderately to the northwest (40°) and is wider and higher-grade, averaging 17.7 g/t Au over 1.6 m (Table 7.4). The La Union West Vein is truncated by a normal

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fault at the south end of the underground workings with apparent right-lateral displacement; the southwest continuation of the vein is offset 6 m to the west.

In addition to underground exposure, the La Union Veins were targeted by 8 diamond drill holes in 1997 (drill holes SJG 97-27 to SJG 97-34). Four of the 8 drill holes intercepted the La Union Vein and returned up to 8.9 g/t Au over 2 m (drill hole SJG 97-34).”

Table STYLEREF 1 \s 7. <br>Significant Samples Taken in La Union
Sample	Vein	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
208951	La Union	0.7	0.7	8.4	2,165	46	533
208954	La Union	1.0	1.1	7.1	1,987	28	402
208950	La Union	0.8	2.3	5.9	1,731	83	1,092
208953	La Union	0.5	2.8	9.6	2,925	44	142
208946	La Union	0.8	4.9	18	2,894	51	115
208949	La Union	1.5	8.2	23	8,452	50	355
209792	Flat Zone	1.5	0.7	0.7	91	12	1,044
209794	Flat Zone	2.0	0.8	1.6	806	14	204
209779	Flat Zone	1.3	1.6	11.3	3,297	29	909
209778	Flat Zone	1.7	3.2	6.6	2,853	25	984
209793	Flat Zone	1.3	3.3	3.4	1,244	25	1,834
209784	Flat Zone	1.0	3.7	28.3	3,530	6,015	6,076
209782	Flat Zone	1.0	3.9	37.8	5,620	>10,000	>10,000
209780	Flat Zone	0.9	4.4	9.8	4,055	50	809
209783	Flat Zone	1.0	6.1	5.0	1,002	1,881	4,913
208949	Flat Zone	1.5	8.2	23.0	8,452	50	355
209788	La Union west	2.0	11.6	28.7	12,000	212	978
209786	La Union west	1.7	12.7	14.0	2,113	1,095	3,909
209789	La Union west	1.0	17.1	51.2	12,000	760	1,294
209787	La Union west	1.8	29.4	16.1	3,090	405	1,085

According to Kaip and Childe (2000):

“The La Union workings expose a zone of flat-lying mineralization between the La Union and La Union West Veins. The flat zone consists of a series of stacked quartz-chlorite veins containing chalcopyrite and pyrite exposed for >3 m along the walls of the mine. Initial sampling of this style of mineralization returned up to 8.2 g/t Au over 1.5 m. The width of these flat zones (>3 m) and the grade (2.5 g/t Au) represents an attractive target amenable to mechanized mining. Continuing work at La Union will involve additional sampling of the flat zone to better characterize the size and tenor of this style of mineralization.”

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“The Santa Eduwiges Mine, located immediately south of the La Union mine, saw production on three levels over 40 m elevation and 100 m strike length. The upper two levels have been mined out and are stopped to surface. The lower level was partially caved and was the focus of recent exploration activities. As of the end of the current program cleaning of the underground to permit access was still in progress.”

Previous work in the Santa Eduwiges Mine, mostly by CRM in 1981, indicates that the vein strikes southwest and dips 60 to the northwest and averages 20 g/t Au, 27 g/t Ag and 0.74% Cu over 0.7 m. Mapping of the Santa Eduwiges Vein on surface has demonstrated that the vein is continuous on surface for 70 m northeast of the portal through a series of pits and historical workings. Northeast of the Santa Eduwiges Portal, the vein is truncated by a north dipping fault with 10 m right lateral displacement. To the northeast the vein is projected through a series of small glory holes south of Veta Tierra.

The Santa Eduwiges Vein was intercepted in two drill holes during the 1997 exploration program including 7.5 m of 2.2 g/t Au (SJG97-31) and 4.3 m of 1.3 g/t Au. Although low-grade, these two drill intercepts extended the Santa Eduwiges Vein to a depth of 130 m below the current level of exposure. Continuing exploration at Santa Eduwiges will focus systematic mapping and sampling to confirm the tenor of mineralization and to provide additional geological information to direct future drilling.

“The Northwest Vein located 60 m northwest of La Union is exposed in a series of historical pits and workings for 400 m along strike from north of La Parilla, northeast to the Veta Tierra area. From surface prospecting it is apparent that this vein was extensively pitted on surface, with remaining outcrops invariably comprising intensely silicified wall rock and stockwork veining, with the vein material removed. The vein is interpreted to strike southwest and dip moderately to the northwest, based on prominent fault planes in outcrop which are interpreted to be the footwall or hanging wall contact of the now excavated vein. Abundant vein float, including hematite-quartz breccia vein, crustiform quartz, and bull quartz veining containing galena are present along the trace of the vein. One sample containing bladed quartz (after calcite) was collected from the northeast end of the vein. Float samples collected from vein material along the trace of the Northwest Vein range from 0.8 to 5.6 g/t Au and consistently exhibit elevated lead concentrations (Table 7.5). In addition to surface exposures, the Northwest Vein has also been intercepted in drill core. Drill hole SJG 97-29, targeted at the La Union flat zone, intercepted 3.1 m averaging 3.6 g/t Au, the significance of which was not fully understood until the discovery of the Northwest Vein on surface.”

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Table STYLEREF 1 \s 7. <br>Significant Samples Collected in Northwest Vein
Sample No.	Type	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209574	Float	5.3	21.4	342	2,844	388
209587	Float	2.2	7.8	558	681	66
209588	Float	5.3	13.2	231	2,092	117
209589	2 m	1.4	3.1	178	1,287	165
209573	Float	1.6	9	291	2,630	305
209570	Float	5.6	20.5	510	>10,000	272
209569	Float	0.8	6.8	187	2,428	181

7.1.4.7 La Mochomera

According to Kaip and Childe (2000):

“The La Mochomera Mines are located in the center of the Veta Tierra – La Parilla Trend. Little information exists of past production, and the condition of the workings indicates that they have not been mined in recent history. Work from 1999-2000 concentrated on cleaning of the portals and reconnaissance mapping and sampling of the underground workings. Systematic mapping and sampling efforts had to be postponed during exploration as the main underground is a source of water for livestock and could not be drained.

Based on reconnaissance work, the La Mochomera exposes the southwest continuation of the La Union Vein, and a flat zone, located to the southeast of the vein. Sampling of the two structures returned anomalous gold mineralization including 7.4 g/t Au over 1 m from the La Union Vein, and 4.4 g/t Au over 0.5 m from the flat zone (Table 7.6). Future work in the La Mochomera area will focus on detailed mapping and sampling of the underground workings.”

Table STYLEREF 1 \s 7. <br>Significant Assay Results for Samples Collected from La Mochomera Underground
Sample	Type	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
145197	Vein	0.7	1.2	1.5	297	39	121
145101	Vein	0.6	1.4	2.3	250	9	69
145102	Vein	0.2	3.6	16.6	5,832	9	86
145104	Flat zone	0.5	4.4	7.5	1,110	121	218
145200	Vein	1.1	7.4	29.5	9,124	29	84
145199	Stockwork	0.3	7.5	10.9	3,542	21	82

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7.1.4.8 La Parrilla

According to Kaip and Childe (2000):

“La Parilla, located at the southwest end of the Veta Tierra – La Parilla Trend, is an historical mine with no historical data in the way of underground plans, grade information and vein mineralogy; at the beginning of the 1999-2000 program the portal was blocked by caved material. Work in 2000 focused on cleaning the portal to access the underground workings. As of April 2000, work had advanced 26 m along the access drift to a caved area. During excavation, hematite-quartz vein float from the underground workings was collected for analysis and returned 3 g/t Au (sample 209556). Prospecting in the vicinity of the portal located hematite quartz vein float in an area near an historical surface pit above the trace of the underground workings that returned 18.1 g/t Au.”

7.1.5 San Pablo Trend

According to Kaip and Childe (2000):

“The San Pablo Mine, located in the central part of the project area, lies north of the La Parilla to Veta Tierra Trend and south of the Los Hilos to Tres Amigos Trend. San Pablo is a relatively recent discovery at San José de Gracia, with the majority of mining occurring during the 1980s. With the exception of a single outcrop near one of the portals, the San Pablo Vein system is exposed only within underground workings for 135 m along strike and over a vertical extent of 35 m. The San Pablo Trend consists of two southwest striking breccia veins, namely a sub-vertical chlorite-rich breccia vein, and a moderately dipping quartz-rich fault breccia vein; the intersection of the two veins forms a southwest plunging ore shoot.

Sampling of the two veins shows a direct correlation between gold grades and sulphide intensity in the San Pablo Trend. To date, the sub-vertical chlorite-rich breccia vein exhibits the greatest continuity of gold mineralization along strike. Of the twenty-three samples collected, the vein averages 28.3 g/t Au over 0.85 m. Where the two veins intersect a moderately southwest dipping ore shoot is developed and corresponds with an increase in vein widths and gold grade, as well as the development of stockwork mineralization adjacent to the veins. Sampling of footwall mineralization adjacent to the ore shoot has yielded 8.7 g/t Au over 10 m and 5.4 g/t Au over 10 m (true widths).

To the northeast, the San Pablo Vein system is cut by a west striking, north dipping fault exposed in the underground workings. A lack of historical workings on the north side of these faults suggests that no attempt has been made to trace the San Pablo Vein system in this area. Similarly, the San Pablo Trend appears to be unexplored to the southwest, suggesting that the trend is open along strike, as well as at depth below current workings.

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The absence of historical workings on the northeast side of this fault indicates that no systematic exploration was completed on the northeast extension of the San Pablo Trend. To the southwest, the San Pablo Trend appears to be unexplored since no historical information exists. It is possible that the Sapopa Adit 280 m southwest of the San Pablo workings is the southwest continuation of the San Pablo Vein, but this is unsubstantiated. Currently, the San Pablo Trend is open in all directions and continuing exploration will be devoted towards exposing these veins through surface exploration and diamond drilling.

Work in 1999-2000 focused on mapping and sampling of the San Pablo Veins on all four levels and was oriented towards sampling the veins, footwall and hanging wall at regular intervals. The majority of sampling was completed on the lowest level (Paco level) since mining in the upper levels has removed the majority of vein material. Of the 87 rock samples collected, 45 samples are from the two veins. The quartz-breccia vein consists of wall rock fragments hosted within a matrix of banded quartz (+adularia?) and minor chlorite with varying amounts of pyrite and chalcopyrite. Sampling of the quartz-rich breccia vein indicates that it hosts low concentrations of gold in the northern half of the vein. However, gold grades increase near the intersection of the two veins, where a 1-m chip channel of the quartz-rich breccia vein returned 4.0 g/t Au. In the southern half of the Paco workings, the quartz-rich breccia vein hosts sporadic, but consistently higher grades of gold, such as 25.3 g/t Au over 1 m. This increase in gold grade correlates with an increase in the sulphide content of the vein. Over its length, the quartz-rich breccia vein averages 2.8 g/t Au over 1 m (20 samples).”

Assay results from this work are listed in Table 7.7.

Table STYLEREF 1 \s 7. <br>Significant Assay Results for Chip Channel Sampling of the San Pablo Workings
Sample	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
142039	Quartz-rich	0.6	4.0	5.7	973	17	111
142054	Quartz-rich	0.5	8.5	26.1	7,128	191	100
142051	Quartz-rich	1.0	25.3	22.0	2,723	61	113
142055	Quartz-rich	0.5	25.8	29.2	7,917	71	179
142049	Chlorite-rich	1.0	6.6	11.8	1,432	37	106
142082	Chlorite-rich	0.6	8.8	5.2	1,869	18	106
142075	Chlorite-rich	1.3	11.8	17.8	10,000	19	84
142047	Chlorite-rich	0.9	12.9	73.2	17,000	116	480
142037	Chlorite-rich	0.4	17.6	20.2	5,046	24	84
142076	Chlorite-rich	0.6	18.1	15.4	8,021	20	103
142041	Chlorite-rich	0.9	18.4	21.8	5,117	6,365	17,000
142081	Chlorite-rich	1.0	22.4	33.3	1,031	100	31
142040	Chlorite-rich	1.0	23.3	44.3	13,000	47	143

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Table STYLEREF 1 \s 7. <br>Significant Assay Results for Chip Channel Sampling of the San Pablo Workings
Sample	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
142038	Chlorite-rich	1.0	25.1	28.1	6,502	64	227
142083	Chlorite-rich	1.2	36.9	23.6	9,658	47	178
142044	Chlorite-rich	0.7	42.7	42.3	14,000	268	252
142080	Chlorite-rich	1.0	52.7	29.3	3,160	74	39
142073	Chlorite-rich	0.6	59.2	17.8	6,333	19	128
142046	Chlorite-rich	1.3	65.4	28.2	8,181	60	159
142045	Chlorite-rich	0.9	69.2	40.4	21,000	35	197
142050	Chlorite-rich	0.5	75.1	28.6	8,342	83	233
142043	Chlorite-rich	0.6	91.7	23.8	5,746	136	363
145176	Chlorite-rich	0.5	28.7	79.5	12,330	177	186
142061	FW stockwork	2.0	4.4	15.4	2,280	140	489
142063	FW stockwork	2.0	5.0	3.4	477	13	152
142064	FW stockwork	2.0	8.4	12.3	3,006	23	200
142065	FW stockwork	2.0	12.0	7.5	1,386	37	205
142066	FW stockwork	2.0	8.9	13.7	4,364	18	187
145177	FW stockwork	2.0	5.9	4.9	1,014	11	138
145178	FW stockwork	2.0	7.4	25.3	6,190	33	171
145179	FW stockwork	2.5	14.5	8.8	1,569	128	603

7.1.6 La Prieta Trend

According to Kaip and Childe (2000):

“The La Prieta area is reported to have produced approximately 215,000 ounces of gold at an average grade of 28 g Au/t. Mineralization is hosted within a SW striking, moderately NW dipping fault breccia vein and a flat-lying zone between two moderately NW dipping veins. The flat zone gently plunges to the north and exploits a pre-existing thrust fault. Based on mapping of the underground workings, the flat-zone measures in excess of 100 x 50 m and averages between 1.5 and 2 m in width.

Limited sampling of the underground workings returned values such as 1.1 g Au/t over 0.9 m, 5.1 g Au/t over 1.0 m up from moderate dipping veins and 48.84 g Au/t over 1.6 m from the flat-lying zone. Maps of the San José de Gracia area show a series of historical mines and workings located along strike and to the northeast of the La Prieta Mine. These workings are interpreted to form the northeast continuation of the La Prieta Trend.”

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

“A total of sixteen samples were collected from underground workings. Gold concentrations were generally low, averaging between 0.12 and 5 g/t Au. One sample collected from a northwest dipping vein returned 48.84 g/t Au over 1.6 m. Of the five samples collected from the flat zone, one sample returned 2.5 g/t over 1.3 m. Significant assays from year 2000 sampling are presented in the Table 7.8.

With the exception of one sample from the northwest dipping fault breccia vein, samples collected during reconnaissance work in the La Prieta Mine have returned lower than anticipated values. For the flat zone this is attributed to effective removal of ore during mining and the inability to reach the working faces since the mine is partially flooded. Future work in the La Prieta workings will concentrate on detailed mapping and systematic sampling to better understand the exploration potential.”

Table STYLEREF 1 \s 7. <br>Significant Assay Results for Samples from La Prieta Workings in 2000
Sample	Interval	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209173	Flat Zone	1.3	2.5	48.4	12,000	26	76
209163	Vein	1.6	48.8	42.8	12,000	37	518
209174	Vein	1.0	5.1	9.7	2,053	27	90
209169	Vein	0.6	4.1	17.2	4,439	20	82
209168	Vein	0.1	1.8	5.8	568	28	146
209167	Vein	0.9	1.1	1.7	70	32	54

7.1.7 Santa Rosa-Tres Amigos Trend

According to Kaip and Childe (2000):

“The Santa Rosa - Tres Amigos Trend, at the northeastern end of the project area, has a minimum strike length of 1.4 km. This trend contains past producing mines at Tres Amigos, Tres Amigos West, La Ceceña, Tepehuaje, Los Hilos, and Santa Rosa. In general, records indicate that historical workings extend no more than 50 m down-dip and 50 to 100 m along strike. Veining in the Santa Rosa to Tres Amigos Trend is hosted predominantly within tuffaceous to massive andesite, with tuffaceous strata ranging from fine grained lapilli tuff to coarse angular to subrounded tuff breccias. In contrast, the footwall to mineralization at Tres Amigos consists of rhyodacite, which is well exposed in the hills east of Tres Amigos.”

“Work in 1999-2000 in the Santa Rosa to Tres Amigos area focused on mapping veins and associated alteration on surface along the trend and measuring the degree and sense of offset on faults which displace stratigraphy and mineralization. This process was hampered to some degree by past mining which selectively removed surface exposures of the vein. In some areas, such as at Santa Rosa NE,

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this process was advanced enough that the hematitic, gold-rich portions of the vein were removed, and the lower grade quartz-barite portions were left in situ. In other areas, such as at Santa Rosa SW and Tres Amigos West, the vein was removed in its entirety and all that remains are elongated pits surrounded by outcrop of argillically altered andesite with low precious metal grades and rare vein float. Despite these obstacles, surface mapping was successful in outlining the trace and orientation of the veins and determining vein offsets as a result of faulting.”

7.1.8 Tres Amigos and Tres Amigos West

According to Kaip and Childe (2000):

“Workings at Tres Amigos, last exploited on a small scale in the mid-1990’s, extend along strike for 95 m and up dip for approximately 40 m on three levels, the lowest of which opens on surface on a prominent hillside.”

“Sulphide-rich quartz vein and quartz breccia vein at Tres Amigos occur along the contact between footwall rhyodacite and hanging wall andesite, with an average orientation of 242°/42° NW. Within the historical workings the vein is offset in a right lateral sense over distances of <1 m by northwest striking, shallowly to moderately northeast dipping faults. Alteration at Tres Amigos is asymmetrical, with well-developed quartz-sulphide stockwork and intense silicification in the footwall rhyodacite, and weak stock working and silicification in the hanging wall.

Approximately 30 m to the southwest, historical workings at Tres Amigos West extend along strike for 25 m and up-dip for approximately 2.5 m, with an average orientation of 241°/57° NW. Mineralization at Tres Amigos West is truncated to the northeast by a west to northwest, moderately north to northeast dipping fault, which is interpreted to offset veining at Tres Amigos West from that at Tres Amigos by a distance of approximately 10 m.

Abundant historical sampling at Tres Amigos and Tres Amigos West has established that this non-oxidized vein, that averages 5.9 g/t Au over 2.6 m contains anomalous Ag and high base metal contents (22.0 g/t Ag, 0.56% Cu, 0.61% Pb and 1.07% Zn). The high base metal contents are consistent with the presence of abundant pyrite, chalcopyrite, sphalerite and galena. In 2000 four representative samples were collected from the underground workings to verify past results (Table 7.9). Whereas the results from Tres Amigos were comparable to past results, a gold grade of 22.98 g/t over 1-m at Tres Amigos West is significantly higher than results from historical sampling and warrants follow-up.”

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Table STYLEREF 1 \s 7. <br>Significant Underground Channel Sample Assays from Tres Amigos and Tres Amigos West
Sample No.	Area	Width<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209795	Tres Amigos	1.0	5.92	169.9	63,000	387	1,855
209796	Tres Amigos	0.7	3.24	15.2	3,833	2,832	2,809
209797	Tres Amigos	0.8	3.55	21	6,231	198	2,808
209798	Tres Amigos West	1.0	22.98	85.5	5,330	>10,000	>10,000

“Tres Amigos was one of the main areas of interest in the 1997 drill program (Golden Hemlock), with a total of 3,122 m drilled in 26 DDH (SJG97-01 to SJG97-14 and SJG97-35 to SJG97-47). Drilling concentrated on defining the tenor of gold mineralization of the Tres Amigos Vein along strike and down dip from the underground workings. Drilling confirmed that the Tres Amigos Vein extended to depth and along strike of the underground workings and defined a 200 m long zone of mineralization extending to a depth of 150 m below the deepest workings. The grade and thickness of mineralization intercepted in the drill holes is comparable to that exposed in the underground workings. In addition to proving the continuity of the vein along strike and down dip, drilling outlined a north trending ore shoot along the trace of the vein. The ore shoot corresponds to a roll or flattening of the Tres Amigos Vein. From re-logging of core, this roll in the Tres Amigos Vein is characterized by a central vein bounded by a broad zone of chlorite stockwork alteration and mineralized stockwork veining.”

7.1.9 Orange Tree Vein

According to Kaip and Childe (2000):

“The Orange Tree Vein, in the Tres Amigos area, was intercepted in 2 drill holes in the 1997 program. Significant drill intercepts from the vein include 3 m of 29.5 g/t Au and 1.55 m of 23.1 g/t Au (Table 7.10). The Orange Tree Vein is a northwest striking, sub-vertical dipping massive sulphide vein that crosscuts the Tres Amigos Vein. The Orange Tree vein is exposed on surface above the Tres Amigos Portal where it returned 210 g/t Au over 0.1 m. From the Tres Amigos area, the Orange Tree Vein is inferred to extend to the La Plumosa Adit, located 400 m to the northwest. Delineating the strike extent of the Orange Tree Vein is a priority for the next phases of work.”

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Table STYLEREF 1 \s 7. <br>1997 Diamond Drilling Intercepts of the Orange Tree Vein
Drill Hole ID	Target	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)*	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
SJG97-39	OT vn	40.2	43.2	3.0	29.5	44.6	5,779	9,486	74,500
SJG97-47	OT vn	124.94	126.83	1.89	6.66	10.2	698	1,681	46,000
SJG97-47	OT vn	130.45	132.00	1.55	23.1	42.5	2,371	8,311	80,000
Average*				2.1	21.3	34.0	3,467	6,912	67,460

7.1.10 La Ceceña

According to Kaip and Childe (2000):

“The La Ceceña Mine, located some 200 m southwest of Tres Amigos West, is caved and inaccessible. However, maps of the underground workings produced by the CRM in 1980 are available and have been incorporated into maps produced for this report. CRM maps of La Ceceña show that the workings extended some 70 m along strike and 25 m down dip and were accessed by a portal which drifted in approximately 35 m northwest to intersect mineralization. These maps, along with historical reports, indicate that mining of this southwest striking, moderately northwest dipping vein was stopped in both directions along strike when faults were hit and mineralization was lost. Surface mapping in 2000 suggests that the zone was offset right laterally on the order of 5 to 15 m at each end.

One drill hole in the 1997 program (SJG97-50) targeted the down-dip extension of La Ceceña; this drill hole cut 1.4 m of 8.5 g/t Au. Surface sampling of abundant quartz vein floating immediately southwest of La Ceceña in 2000 has yielded values of up to 21.47 g/t Au, with low base metal contents (Table 7.11). An exploratory trench aimed at finding the source of this high-grade float failed to reach outcrop at depths of up to 2 m. Based on the grade and quantity of mineralized float in this area continued trenching is warranted to find, map and sample the near surface exposure of the vein in this area with aims towards drill testing this target in future drill programs.”

Table STYLEREF 1 \s 7. <br>2000 Float Sampling Southwest of La Ceceña Mine
Sample No.	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209668	9.26	6.9	103	556	85
209669	0.34	3	105	537	149
209670	21.47	9.5	98	435	36
209671	1.37	1.8	3,557	175	2,131

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“Quartz vein, offset by a series of northwest and west striking right lateral faults, was traced in outcrop and float intermittently between La Ceceña and Los Hilos. Of particular interest is an area of quartz-hematite stringer veins in an outcrop adjacent to very coarse-grained calcite-quartz vein float located some 130 m east northeast of Los Hilos. Although the quartz-hematite stringers are only weakly anomalous for gold (up to 0.078 g/t Au), a sample of the coarse-grained calcite-quartz vein float (sample 209682) contains 104.28 g/t Au.” (Table 7.12)

Table STYLEREF 1 \s 7. <br>Float and Chip Samples, Northeast Los Hilos
Sample No.	Type	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209682	Float	104.28	19.1	41	110	108
209705	0.20 m chip	0.078	0.3	13	479	54
209706	0.25 m chip	0.075	7.1	34	66	211

7.1.11 Los Hilos

According to Kaip and Childe (2000):

“Los Hilos, located in the center of the Santa Rosa - Tres Amigos Trend, represents one of the first mines in the San José de Gracia District. Little historical information exists in the way of underground plans, grade information and vein mineralogy for the mine and although Los Hilos has seen limited production as recently as the 1950s or 1960s, the portal, which lies at the base of a steep talus slope, is caved.”

“Efforts were made in 2000 to reopen the mine for mapping and sampling; by the time the most recent phase of work was completed in April 2000 the first 10 m of the portal was accessible and three samples were collected (Table 7.13). This sampling was very encouraging, with a chip sample from a large quartz-calcite vein boulder grading 92.88 g/t Au and a grab sample of quartz stringer mineralization off the back (209799) grading 11.20 g/t Au. The high-grade quartz calcite vein (209799) from the Los Hilos Portal is very similar to the high-grade vein float sample (209682: 104.28 g/t Au) collected from a zone of similar float some 130 m to the east-northeast. Further work in this area is warranted to define the extent of this high-grade mineralization. This goal can best be achieved through additional efforts to open the Los Hilos underground, and via additional surface work in the form of geological mapping, sampling and trenching.”

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Table STYLEREF 1 \s 7. <br>Sampling of the Los Hilos Portal
Sample No.	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209702	0.33	2.1	27	8	17
209799	11.20	4.6	69	212	129
209800	92.88	43.6	229	1,460	920

7.1.12 Santa Rosa

According to Kaip and Childe (2000):

“Santa Rosa represents another area of historical production from which little or no information exists on the extent of past work, grade mined or vein mineralogy. Two surface exposures of the mined vein, located some 170 m apart, have been mapped and sampled. Surface exposures of the vein were mined by hand in the 1980’s by Rosarito; the higher grade hematitic portions of the vein were selectively extracted whereas the lower grade quartz with minor calcite and barite was in part left in situ. The highest-grade sample collected from the Santa Rosa Vein in this program was a piece of quartz-hematite vein float (sample 209697), containing 16.19 g/t Au. Other samples collected at Santa Rosa (samples 209696-209701) consist of quartz veins with minor calcite and barite and argillically altered wall rock and contain weakly anomalous gold values (up to 0.377 g/t Au). Trenching and sampling in areas not previously mined is required to assess the relative importance of this target.”

7.1.13 Other Targets

7.1.13.1 Rudolpho Vein

According to Kaip and Childe (2000):

“The Rudolfo Vein is a southwest striking, moderately northwest dipping massive sulphide vein hosted within strongly silicified and sericite altered volcanic and sedimentary rocks located 300 m south of Tres Amigos. The vein has been traced 170 m on surface from the main exposure, located in the quebrada, southwest towards El Rosarito. Sampling of the vein on surface has returned up to 30.1 g/t Au over 0.8 m. Two holes were drilled in 1997 to test the down dip extent of the Rudolfo Vein below the main showing. Drilling intercepted the Rudolpho Vein within a broader zone of silicification and sericite alteration characterized by elevated concentrations of lead and zinc mineralization. Significant vein intercepts from the Rudolpho Vein area are listed in Table 7.14.”

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Table STYLEREF 1 \s 7. <br>1997 Drill Intercepts of the Rudolpho Vein
Drill Hole No.	Target	From<br><br>(m)	To<br><br>(m)	Width<br><br>(m)*	Au<br><br>(g/t)	Ag<br><br>(ppm)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
SJG97-48	RD vnsw	61	66.98	5.98	1.71	4.8	148	4,853	31,033
SJG97-48	RD vn	61	64.02	3.02	2.56	7.5	183	8,716	48,000
SJG97-48	Unknown	108.84	110.16	1.32	0.95	37.7	16,370	53	1,719
SJG97-49	Unknown	34.5	36.6	2.1	0.57	11	2,166	2,914	58,000
SJG97-49	RD hwsw	96	100	4	0.38	4.5	891	526	23,928
SJG97-49	RD vn	102	104	2	1.05	0.3	58	83	643

7.1.13.2 Coralia Vein

According to Kaip and Childe (2000):

“A new vein, the Coralia Vein, was discovered outcropping on a ridge 190 m northwest of the Los Hilos Portal and at approximately 100 masl. The Coralia Vein, which cuts moderately hematite-stained andesite lapilli tuff, strikes southwest and dips steeply to the northwest (234°/85° NW), subparallel to veining in the Santa Rosa - Tres Amigos Trend. The Coralia Vein is a quartz-hematite breccia vein with up to 2% barite. Barite in the vein occurs as coarse-grained masses of radiating crystals up to 5 mm in diameter.

A 1 m wide trench was dug across the vein; two vein samples were collected from the trench and an additional one from floating 50 m down slope from the trench (Table 7.15). In general, samples collected from the Coralia Vein are characterized by relatively low iron content (0.9 to 3.3%) and extremely low base metal contents (Cu to 9 ppm, Pb to 7 ppm, and Zn to 11 ppm). Samples of the Coralia Vein collected to date are all anomalous in gold and as such warrant additional work, including mapping and trenching along strike from the areas of known exposure.”

Table STYLEREF 1 \s 7. <br>2000 Sampling of the Coralia Vein
Sample No.	Sample<br><br>Type	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(ppm)	Pb<br><br>(ppm)	Zn<br><br>(ppm)
209687	outcrop grab	2.27	1.1	9	4	4
209691	0.8 m chip	1.04	0.2	5	7	8
209692	float	0.46	0.6	7	4	11

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7.1.14 Geochemical Correlations

According to Kaip and (2020):

“Analytical data from 1999-2000 rock samples were used to investigate broad scale geochemical correlations at San José de Gracia (Table 7.16). The average Ag/Au ratio of all rock samples with gold and silver values above detection limit was determined to be 8.36. However, when the Ag/Au is recalculated using increasingly higher threshold values for Au, the Ag/Au ratio drops. As both the Au and Ag contents increase the Ag/Au ratio decreases asymptotically (Figure 7.4). When the average Ag values are plotted against average Au values for each threshold it is apparent that at lower gold and silver grades (>15 to 20 g/t) the relationship between Ag and Au is roughly linear, or in other words they increase proportionately to each other. However, at higher grades the Au values increase disproportionately to Ag grade, with the overall effect being one of Au enrichment relative to Ag in areas of very high Au grade.”

Table STYLEREF 1 \s 7. <br>Average Gold and Silver Grades and Au/Ag Ratio for Different Gold Thresholds
Threshold	No.	Average Au (g/t)	Average Ag (g/t)	Ag/Au
Au & Ag	469	7.49	10.2	8.36
Au ≥0.5 g/t	302	11.53	14.7	3.64
Au ≥1 g/t	262	13.19	16.1	3.07
Au ≥5 g/t	138	22.76	21.4	1.49
Au ≥15 g/t	67	37.84	26.7	0.88
Au ≥30 g/t	27	62.31	30.8	0.54
Au ≥50 g/t	15	79.78	32.7	0.41

Figure STYLEREF 1 \s 7. Plots of Ag/Au Ratio versus Au and Ag

Source: Kaip and Childe (2000)

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“Studies on Tonopah, Nevada and Tayoltita Mexico, have demonstrated that the geometric center of these epithermal precious metal vein deposits is characterized by the lowest Ag/Au ratios. Data from San José de Gracia were examined to determine if a similar correlation was evident. However, at the property scale vein samples with the lowest Ag/Au ratios (greatest degree of Au enrichment) could be found throughout the property, in the Anglo, La Purisima, Palos Chinos, Veta Tierra, San Pablo, Santa Rosa, Los Hilos, Tres Amigos and Coralia areas. Once drill results are available for San Pablo and Palos Chinos Trends, horizontal and vertical variations in the Ag/Au ratio will be examined to attempt to vector towards the geometric center, and most gold enriched portion of these veins.”

7.1.15 La Prieta Area. Underground Chip Sampling, Buen-Blanco Zone

In 2009, historical underground workings at La Prieta were professionally surveyed and locally chip sampled. Assays from several of these chip samples are encouraging for gold, the most significant of which is from a 66-m section of the northeastern drift, locally known as Buen Blanco. Fourteen chip samples from eight separate sampling stations (Table 7.17 and Figure 7.5) isolate anomalous shoots assaying up to 20.97 g/t Au across 1.2 m.

All samples taken were placed in labeled Kraft bags and sealed to prevent contamination. The samples were then trucked to Hermosillo, Mexico where Inspectorate America Corp. (“Inspectorate”) crushed to -150 mesh. The rejects remained with Inspectorate, whereas the pulps were air couriered to Inspectorate’s Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption (“AA”) finish. Samples >1.0 g/t Au were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma (“ICP”) analysis (aqua regia digest) was conducted on all samples. A QA/QC program was implemented as part of the sampling procedure for the drill program. One certified reference material, one blank or one duplicate was inserted per group of 20 samples sent to the laboratory. The standards were purchased commercially from Rocklabs Ltd. of Auckland, New Zealand.

Inspectorate’s Metals and Minerals Inspection and Laboratory Testing Services are certified by BSI, in compliance with the ISO 9001:2008 Guidelines for Quality Management. Inspectorate’s Quality Assurance Program meets all established criteria as related to reporting requirements for mining and exploration companies under National Instrument, NI-43-101, and is compliant with those practices deemed “best industry” in analytical data generation of mineral samples. Inspectorate is independent of Dyna de Mexico and the issuer.

It is not clear if this mineralization is part of the El Rosario Vein or a separate structure. The gold vein is located in irregular topographic terrain and will be problematic to drill test from the surface.

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Table STYLEREF 1 \s 7. <br>Chip Samples from Buen Blanco Zone, La Prieta
Station	Length<br><br>W to E<br><br>(m)	Easting (start)	Northing (start)	Elevation (m)	Interval<br><br>(m)	Au<br><br>(g/t)	Sample No.	Comments
A	0	213,731	2,897,348	Unknown	0.6	2.28	M-PR-94	Continuous
A	0	213,730	2,897,348	Unknown	0.8	5.40	M-PR-95	Continuous
A	0	213,730	2,897,349	Unknown	0.6	16.91	M-PR-96	Continuous
B	4	213,735	2,897,349	Unknown	1.3	0.99	M-PR-97	Continuous
B	4	213,734	2,897,351	Unknown	1.2	0.77	M-PR-98	Continuous
C	11	213,741	2,897,353	Unknown	1	0.50	M-PR-99	Continuous
C	11	213,741	2,897,355	Unknown	1.2	5.19	M-PR-100	Continuous
D	23	213,753	2,897,355	Unknown	1.5	3.31	M-PR-101	Continuous
E	36	213,767	2,897,353	Unknown	1.5	2.17	M-PR-102	Continuous
F	40	213,771	2,897,355	Unknown	1.2	19.24	M-PR-103	Continuous
G	52	213,782	2,897,361	Unknown	0.8	1.21	M-PR-104	Continuous
G	52	213,782	2,897,362	Unknown	0.9	1.21	M-PR-105	Continuous
G	52	213,782	2,897,363	Unknown	1.2	4.52	M-PR-106	Continuous
H	66	213,790	2,897,360	Unknown	1.4	20.97	M-PR-107	Continuous

Note: W = west, E = east.

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Figure STYLEREF 1 \s 7. Sampling at La Prieta - Buen Blanco

Source: Espinoza and Sandefur (2012)

7.1.16 Regional Chip Sampling

Several anomalous gold rock samples were collected during 2010. These are located to the northeast and east of Tres Amigos and suggest there are several new mineralized areas that justify additional follow-up field work, including drill testing. All Samples taken were placed in labeled

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Kraft bags and sealed to prevent contamination. The samples were then trucked to Hermosillo, Mexico, where Inspectorate America Corp. (“Inspectorate”) crushed each sample to -150 mesh. The rejects remained with Inspectorate while the pulps were air couriered to Inspectorate’s Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption (“AA”) finish. Samples with grades >1.0 g/t Au were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma (“ICP”) analysis (aqua regia digest) was conducted on all samples. A QA/QC program was implemented as part of the sampling procedure for the drill program. One certified reference material, one blank or one duplicate was inserted per group of 20 samples sent to the laboratory. The standards were purchased commercially from Rocklabs Ltd. of Auckland, New Zealand. Inspectorate’s Metals and Minerals Inspection and Laboratory Testing Services are certified by BSI, in compliance with the ISO 9001:2008 Guidelines for Quality Management. Inspectorate’s Quality Assurance Program meets all established criteria as related to reporting requirements for mining and exploration companies under S-K 1300, and is compliant with those practices deemed “best industry” in analytical data generation of mineral samples. Inspectorate is independent of Dyna de Mexico and the Issuer.

Selected higher grade gold samples from this rock chip campaign are listed below in Table 7.18.

Table STYLEREF 1 \s 7. <br>Anomalous Surface Rock Chip Sampled from the Tres Amigos Area
Easting	Northing	Au<br><br>(g/t)	Interval<br><br>(m)	Sample<br><br>No.	Location
214,352	2,899,270	6.16	0.9	ES-10-095	1.4 km NE of Tres Amigos
214,352	2,899,270	3.26	1.0	ES-10-096	1.4 km NE of Tres Amigos
214,377	2,899,252	9.35	1.0	ES-10-091	1.4 km NE of Tres Amigos
214,377	2,899,252	5.32	0.6	ES-10-092	1.4 km NE of Tres Amigos
214,328	2,899,143	4.22	0.65	ES-10-088	1.4 km NE of Tres Amigos
214,322	2,899,133	4.05	0.9	ES-10-085	1.4 km NE of Tres Amigos
213,075	2,898,145	6.09	1.3	ES-10-097	0.6 km W of Tres Amigos
213,959	2,898,029	7.08	1.8	STA-204	0.28 km E of Tres Amigos
213,959	2,898,029	2.96	1.0	STA-205	0.28 km E of Tres Amigos
213,995	2,898,014	8.91	1.6	STA-209	0.32 km E of Tres Amigos
213,995	2,897,995	7.22	0.7	STA-220	0.32 km E of Tres Amigos
213,971	2,898,015	5.83	1.3	STA-222	0.30 km E of Tres Amigos
214,256	2,897,893	2.26	1.3	ES-10-113	0.61 km E of Tres Amigos

7.1.17 Regional Multi-spectral Satellite Anomalies

Various regional multispectral (FeO, clay) alteration anomalies have been identified in satellite imagery. A number of these anomalies have been targeted for ground follow-up, specifically those occurring close to junctions of regionally interpreted “graben bounding” fault structures.

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7.1.18 Tres Amigos, Bulk Sample

Tres Amigos is a relatively new prospect and the most northerly drilled area. It is located 1.2 km northeast of San Pablo.

In the spring of 1999, personnel under the direction of Mr. Wayne C. Henderson, P.E. of Lockwood Greene Engineers visited the Property with the purpose of obtaining samples for metallurgical testing. Six samples were collected and forwarded to Hazen Research in Golden, Colorado for test work under the direction of Mr. Henderson. The following description of the samples was provided by Mr. Henderson.

This is a bulk composite taken from the lower Tres Amigos Adit over a 3-m strike distance. This sample contains significant Au, Ag, Cu and Zn grades that are higher than observed or reported from previous Tres Amigos mining and processing efforts. The sample was prepared using hand-gathered, selected vein rock from sidewall and roof fall material in the Adit (Pamicon, 1999).

7.1.19 Regional Stream Sediment Sampling

A stream sediment survey was conducted from January 3 to March 20, 2007, during which a total of 143 samples were taken. The 143 samples were taken over an area of ~875 km2. Dyna de Mexico identified strong steam sediment anomalies from many locations, including near La Prieta, north of Tres Amigos, and south of the Village of San José de Gracia. Additional geochemical anomalies were found in the areas of Cajoncito, El Peñasco, Arroyo Hondo and el Aguajito.

The sampling methodology used corresponds to the sampling of the sediments of streams, obtaining the samples in low water conditions and avoiding the time of rain. All samples collected in the field were sifted to -80 mesh and packed in bags of Kraft paper and overprotected in plastic bags for the purpose of avoiding contamination.

The samples were then trucked to Hermosillo, Mexico, where they were sent by air courier to International Plasma Labs’ Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption (“AA”) finish. Samples grading >1.0 g/t Au were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma (“ICP”) analysis (aqua regia digest) was conducted on all samples (Figure 7.6).

Inspectorate’s Metals and Minerals Inspection and Laboratory Testing Services are certified by BSI, in compliance with the ISO 9001:2008 Guidelines for Quality Management. Inspectorate’s Quality Assurance Program meets all established criteria as related to reporting requirements for mining and exploration companies under S-K 1300, and is compliant with those practices deemed “best industry” in analytical data generation of mineral samples. Inspectorate is independent of Dyna de Mexico and the Issuer.

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Figure STYLEREF 1 \s 7. Stream Sediments Map

Source: Espinoza and Sandefur (2012)

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7.1.20 Rock and Soil Geochemistry

Field work and sampling was conducted in the period from 2006 to 2009 in two stages carried out by SJG Project geologists. The samples covered a total of 4,500 ha and collected a total of 7,400 rock and soil samples (Figure 7.7).

All samples taken were placed in labeled Kraft bags and sealed to prevent contamination. The samples were then trucked to Hermosillo, Mexico where Inspectorate America Corp. (“Inspectorate”) crushed each sample to -150 mesh. The rejects remained with Inspectorate, whereas the pulps were sent by air courier to Inspectorate’s Richmond, BC, Canada facility and analyzed for gold by fire assay with Atomic Absorption (“AA”) finish. Samples grading >1.0 g/t Au were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma (“ICP”) analysis (aqua regia digest) was conducted on all samples. A QA/QC program was implemented as part of the sampling procedure for the drill program. One standard, one blank or one duplicate was inserted per group of 20 samples sent to the laboratory. The standards were purchased commercially from Rocklabs Ltd. of Auckland, New Zealand.

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Figure STYLEREF 1 \s 7. Rock and Soil Geochemistry Map

Source: Espinoza and Sandefur (2012)

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Inspectorate’s Metals and Minerals Inspection and Laboratory Testing Services are certified by BSI, in compliance with the ISO 9001:2008 Guidelines for Quality Management. Inspectorate’s Quality Assurance Program meets all established criteria as related to reporting requirements for mining and exploration companies under S-K 1300 and is compliant with those practices deemed “best industry” in analytical data generation of mineral samples. Inspectorate is independent of Dyna de Mexico and the Issuer.

The geochemical response in the vicinity of the Tres Amigos and Orange Tree Veins clearly reflects the presence of both structures. In the case of the Tres Amigos Structure, the orientation of the anomaly is N10-20E, whereas the anomaly associated with the Orange Tree Structure is oriented N30-45W.

To the north and northeast of the Orange Tree/Tres Amigos Areas, geochemical anomalies suggest the presence of buried mineralization which might link the two target areas. The presence of highly anomalous values (>250 ppb Au) to the north could reflect another similar intersection between the two vein systems; scout drilling in this sector is strongly recommended. In the La Prieta/ El Rosario sector, geochemical anomalies occur within the sedimentary sequence, near the contact with overlying andesite; this likely reflects an extension (?) of the La Prieta structure, which occurs in this lithological setting. The most impressive anomaly occurs in the central part of the survey area, where values >500 ppb Au define a northeast trending zone >1 km long. This trend clearly parallels the general strike of the San Pablo, La Union, Veta Tierra, La Parilla, and Gossan Cap Veins. These data suggest additional mineralized veins may be encountered further to the northeast within the SJG Property. Additional strong stream sediment anomalies reflect the northeastern trend of La Purisima-Palos Chinos workings and suggest additional mineralization will be encountered to the southwest in the vicinity of the Argillic Zone.

7.1.21 Dipole-Dipole Complex Resistivity, Natural Source AMT Surveys and Ground Magnetics

Zonge Engineering and Research Organization (“Zonge”) was retained by Dyna de Mexico to conduct dipole-dipole Complex Resistivity IP (“CRIP”) and Natural Source Audio-frequency Magnetotellurics (‘NSAMT”) investigations on the SJG Project during the period of March to May, 2009. CRIP data were acquired on 10 lines for a total coverage of 22.7 line-km with 82 additional collected stations.

The purpose of this geophysical program was to detect sulfide deposits, with specific interest in pyrite hosting gold. Zonge crew chief Paco Romero supervised the field operation for this survey under Zonge job number 0914. Geophysicist Emmett Van Reed was responsible for survey oversight and direction from the Zonge Engineering office. The report covered data acquisition, instrumentation, and processing, and an interpretive discussion of geophysical model results.

A ground magnetic survey was also conducted by Zonge Engineering on the SJG Project. From January 28 to March 4, 2009, 43 lines of magnetic data were collected under the auspices of Zonge Job No. 08223. The magnetic survey line tracks are shown in Figures 7.8 to 7.12.

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Figure STYLEREF 1 \s 7. Geophysical Survey Lines and Mineralized Zones at the SJG Project

Source: Zonge (2009)

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Figure STYLEREF 1 \s 7. Dipole-Dipole, IP Data, Depth Slice at 200 m

Source: Zonge (2009)

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Figure STYLEREF 1 \s 7. Dipole-Dipole, Resistivity Data, Depth Slice at 200 m

Source: Zonge (2009)

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Figure STYLEREF 1 \s 7. RTP Magnetic Intensity of the SJG Mineralized Zones

Source: Zonge (2009)

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Figure STYLEREF 1 \s 7. RTP Magnetic Intensity with Magnetic Lineament/Zone Interpretation

Source: Zonge (2009)

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Initially the geophysical program completed on the SJG Project area involved ground magnetic and dipole-dipole CRIP surveys intended to investigate high-grade pyrite mineralization associated with northeast and southeast structural trends (this pyrite mineralization hosts gold). Laboratory testing of drill core samples in Appendix B of the report) identified the relationship between magnetic susceptibility, induced polarization (“IP”) and resistivity, relative to geology on the survey grid.

The CRIP field program successfully identified IP anomalies which could be pyrite-like mineralization associated with volcanic rock that appears to be strongly controlled by structure and fracturing. In addition to northeast and southeast structural trends, east west and south-west fracturing also appear to be present. IP responses of 30 to 50 mrad are consistent with 3 to 5% pyrite, even if distributed as small stock-work like veins.

Based on the results of the CRIP data acquired at this time, it is possible that the survey grid could be divided into five different IP zones. Four of the zones are shown in Figure 7.11 (see above). The 5th zone is represented by IP sources located within the metasedimentary rocks. Although the intensities of these responses are high, the IP features are not well defined. There are also three areas in which both ground magnetic and DRIP coverage should be extended.

Although CRIP and ground magnetic coverage in the northern half of the survey grid is reasonably detailed (this is the area covered by Lines A, B, C and D in Figure 7.12 – see above), the IP sources may extend towards the north and possibly to the northeast. It may be useful to extend ground magnetic and CRIP coverage farther to the north and northeast.

7.2 Drilling

7.2.1 Introduction and Overview

In total, six drilling program have been completed on the SJG Mine Property since 1992. Historical programs were completed in 1992 and 1997. More recently, drilling programs were completed by Dyna de Mexico in 2007-2008, 2009-2011, 2021-2022 and 2023-2024. In total, 595 drill holes have been completed for 595,040 m (Table 7.19).

The drilling programs completed in 1992 to 2011, in 2021 and 2022, and in 2023-2024 are summarized separately below.

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Table STYLEREF 1 \s 7. <br>Drilling Summary for the SJG Project Property
	Industrial Peñoles 1992		Golden Hemlock 19971		Dyna de Mexico<br><br>(2007-2008)		Dyna de Mexico<br><br>(2009-2011)		Dyna de Mexico<br><br>(2021-2022)		Dyna de Mexico<br><br>(2023-2024)
Target	Drill Holes	Meters	Drill Holes	Meters	Drill Holes	Meters	Drill Holes	Meters	Drill Holes	Meters	Drill Holes	Meters	Total Drill Holes	Total Meters
Tres Amigos2	0	0	29	3,534.55	24	5,445.13	64	16,961.63	35	7401.95	1	269.50	117	25,941.31
San Pablo	4	280.43	12	533.95	52	13,108.87	49	8,874.03	5	1071.50	37	10,671.00	117	22,797.28
La Union	6	934.22	8	710.77	16	3,640.15	24	5,167.58	83	11,179.40	54	14,714.50	54	10,452.72
La Purisima3	1	146.30	13	1,168.95	34	7,947.72	32	6,486.34	0	0	8	1,854.00	80	15,749.31
Argillic Zone	0	0	1	140.55	0	0	3	797.05	0	0	0	0	4	937.60
Total	11	1,360.95	63	6,088.77	126	30,141.87	172	38,286.63	123	19,653	100	27,509.00	595	123,040.07

Source: Espinoza and Sandefur (2012) and DynaResource (March 2025)

Notes:

In the consecutive numbering used for the drill hole identification during the 1997 drilling program

(drill hole numbers from 97-001 to 97-064), for unknown reason the number 97-038 was omitted by

the Golden Hemlock geologists, so this drill hole 97-038 apparently does not exist.

The Tres Amigos Zone includes Tep Ceceña (see Table 6.1).
The La Purisima Zone includes the historical Palos Chinos workings (refer to section 7.2.5).

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7.2.2 1992 to 2011 Drilling Programs

Four drilling programs have been completed between 1992 and 2011 in the vicinity of the historical mines at San José de Gracia totaling 372 drill holes for 75,878 m (Figure 7.13 and Table 7.19). All the drilling has been diamond drill core, except for a single reverse circulation (“RC”) drilling program, completed by the Mexican Corporation Industrial Peñoles (“Peñoles”) in 1992.

First, Peñoles completed 11 short RC drill holes in 1992, for a total 1,361 m, targeting shallow mineralization and up-dip potential of previously identified ore bodies. Unfortunately, the results of this drill program are not well documented and therefore unreliable.

Second, in 1997 Golden Hemlock drilled 63 core holes for a total of 6,089 m.

Third, Dyna de Mexico conducted drill programs from 2007 to 2008 during which a total of 126 drill core holes were completed totaling 30,142 m.

Fourth, Dyna de Mexico conducted drill programs from 2009 to 2011 during which a total of 172 drill core holes were completed totaling 38,287 m.

The drilling programs of 2007 to 2011 were concentrated in the Tres Amigos, San Pablo, La Union, and La Purisima Zone areas (Figure 7.13).

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Figure STYLEREF 1 \s 7. Plan View of Drilling in the SJG Project Area 1992 to 2011

Source: Espinoza and Sandefur (2012)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

7.2.2.1 Factors that Could Impact Reliability of Results

Peñoles 1992 and Golden Hemlock 1997 Drilling Programs

In 1992, Peñoles completed 11 short RC drill holes at various locations near San Pablo and La Union areas. Unfortunately, these data were not well kept and the quality of the assays is uncertain.

During Golden Hemlock’s 1997 drill program, no information is available on what Quality Assurance and Quality Control (“QA/QC”) measures were in place and consequently the 2,431 drill core assays from 63 drill holes cannot be verified as to the quality of the laboratory assay results (Pamicon, 1999).

Recent Sample Control 2007 to 2011

The larger drill programs completed in 2007 to 2008 and 2009 to 2011 incorporated a program of Quality Assurance /Quality Control (“QA/QC”) for all the 40,070 samples taken from 290 of the 298 diamond drill holes (drill holes 07-09 to 11-298). Project geologists first logged and marked the drill core at storage facilities at the SJG Project. Technicians later split the individual drill core lengths with a diamond saw, placed half the drill core in a plastic bag, numbered the bags for the laboratory, and then closed them with security clips. The samples were trucked to Hermosillo, Mexico, where Sonora Sample Preparation SA de CV (“SSP”) crushed each sample to -150 mesh. The rejects remained with SSP and the pulps were air couriered to International Plasma Labs Ltd. (“IPL”) of Vancouver, Canada or Inspectorate Labs of Reno, Nevada and analyzed for gold by fire assay with Atomic Absorption (“AA”) finish. IPL was acquired by Inspectorate and all samples were subsequently sent to the Inspectorate preparation facility in Hermosillo. Samples grading >10 g/t Au were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma (“ICP”) analysis (aqua regia digest) was conducted on all samples. The remaining half of the drill core is stored in warehouse on site at the Dyna de Mexico camp at the SJG Project.

Regarding Quality Assurance/Quality Control under Dyna de Mexico, one of either of the regular blanks, duplicates, or one of the three different certified reference materials were inserted into each lab shipment of assays, per 20 samples. Certified standards were purchased commercially from Rocklabs Ltd., of Auckland, New Zealand.

Inspectorate’s Metals and Minerals Inspection and Laboratory Testing Services are certified by BSI, in compliance with the ISO 9001:2008 Guidelines for Quality Management. Inspectorate’s Quality Assurance Program meets all established criteria as related to reporting requirements for mining and exploration companies under NI-43-101, and is compliant with those practices deemed “best industry” in analytical data generation of mineral samples. Inspectorate is independent of Dyna de Mexico and the Issuer.

The drilling distribution along the four major trends at SJG and the drill holes completed in the Argillic Zone are listed above in Table 7.19. All drilling was diamond core, except for the 1992 Peñoles program.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

7.2.2.2 Drilling at Tres Amigos

One hundred and seventeen drill core holes totaling 25,941 m were completed in the Tres Amigos area, including 26 drill holes completed by Golden Hemlock in 1997 and 91 drill holes by Dyna de Mexico between 2008 and 2011. The vein structures are located in an area with deep valleys and steep terrain, which makes any future drilling problematic unless drill platforms are developed underground. Many of the current drill holes have two or three collars from a single set-up, some of which have been turned 180° to get additional cuts of the shallow- to moderately-dipping vein structures. Of the 117 drill holes completed in the Tres Amigos area, 99 have been used to define the mineralized zone and to calculate the Mineral Resources (see Table 7.19, above, and Tables 7.20 and 7.21). The Tres Amigos mineralized veins remain open to expansion by drilling down-dip and along strike to the northeast and southwest.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Selected Drill Hole Assay Intercepts of Tres Amigos 1992 to 2011
Drill Hole	Target	From<br><br>(m)	To<br><br>(m)	Length<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(%)	Pb<br><br>(%)	Zn<br><br>(%)
97-002	Tres Amigos	42.70	58.20	15.50	3.99	15.10	0.38	0.00	0.00
97-006	Tres Amigos	27.80	29.65	1.85	6.46	45.50	1.10	0.03	0.32
97-007	Tres Amigos	57.00	67.00	10.00	3.41	12.20	0.09	0.00	0.00
97-009	Tres Amigos	100.00	102.00	2.00	13.53	3.10	0.02	0.01	0.50
97-012	Tres Amigos	24.50	26.20	1.70	8.57	34.90	0.39	1.00	4.30
97-013	Tres Amigos	95.00	107.50	12.50	20.80	21.80	0.43	0.06	0.15
97-035	Tres Amigos	126.00	132.00	6.00	8.84	14.20	0.28	0.00	0.13
97-037	Tres Amigos	35.90	37.20	1.30	11.97	15.00	0.19	0.22	3.60
97-039	Tres Amigos	40.20	43.20	3.00	29.50	44.60	0.58	0.95	7.45
97-040	Tres Amigos	78.00	80.00	2.00	14.88	10.90	0.19	0.17	0.10
97-040	Tres Amigos	92.00	94.00	2.00	10.81	16.30	0.38	0.01	0.78
97-040	Tres Amigos	104.00	108.00	4.00	7.21	4.80	0.04	0.00	0.25
97-045	Tres Amigos	100.00	106.00	6.00	11.46	3.40	0.03	0.02	0.17
97-047	Tres Amigos	124.94	132.00	7.06	7.51	15.40	0.09	0.27	3.42
97-050	Tres Amigos	78.00	80.00	2.00	8.53	10.80	0.05	0.78	2.00
08-102	Tres Amigos	158.66	162.47	3.81	5.10	6.60	0.14	0.01	0.19
08-104	Tres Amigos	67.45	68.80	1.35	26.20	327.90	1.60	0.23	0.01
08-113	Tres Amigos	25.10	26.70	1.60	13.40	3.20	0.00	0.01	0.90
08-115	Tres Amigos	153.30	159.00	5.70	8.31	8.30	0.17	0.00	0.07
08-116	Tres Amigos	134.80	138.10	3.30	21.74	9.90	0.06	0.04	0.15
08-118	Tres Amigos	27.84	31.88	4.04	5.18	30.50	0.38	0.80	5.68
08-118	Tres Amigos	52.65	53.73	1.08	13.70	13.90	0.06	0.98	4.53
10-150	Tres Amigos	285.61	288.49	2.88	10.93	14.24	0.32	0.01	0.03
10-150	Tres Amigos	312.80	321.81	9.01	3.97	2.35	0.09	0.00	0.03
10-151	Tres Amigos	208.38	216.20	7.82	22.19	14.70	0.36	0.01	0.06
10-152	Tres Amigos	174.42	175.55	1.13	9.85	16.68	0.18	0.05	0.15
10-153	Tres Amigos	207.47	211.10	3.63	5.36	12.92	0.33	0.05	0.23

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Table STYLEREF 1 \s 7. <br>Selected Drill Hole Assay Intercepts of Tres Amigos 1992 to 2011
Drill Hole	Target	From<br><br>(m)	To<br><br>(m)	Length<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(%)	Pb<br><br>(%)	Zn<br><br>(%)
10-154	Tres Amigos	73.00	74.75	1.75	21.89	9.30	0.00	0.00	0.02
10-175	Tres Amigos	135.93	140.00	4.07	3.41	8.34	0.15	0.28	0.56
10-175	Tres Amigos	241.59	245.40	3.81	6.37	3.41	0.02	0.00	0.03
10-176	Tres Amigos	221.04	228.91	7.87	2.00	7.02	0.18	0.09	1.02
10-177	Tres Amigos	228.63	245.00	16.37	10.58	9.75	0.25	0.02	0.09
10-178	Tres Amigos	222.55	233.45	10.90	4.22	8.11	0.31	0.01	0.13
10-179	Tres Amigos	75.3	77.02	1.72	105.51	49.60	0.03	0.01	0.06
10-179	Tres Amigos	174.85	179.52	4.67	5.70	15.89	0.11	0.00	0.16
10-226	Tres Amigos	205.05	213.09	8.04	18.47	19.77	0.42	0.13	0.22
10-227	Tres Amigos	176.95	186.75	9.80	8.42	11.92	0.41	0.04	0.33
10-228	Tres Amigos	164.31	167.29	2.98	3.73	26.21	0.58	0.09	0.35
10-230	Tres Amigos	244.91	249.45	4.54	18.09	15.48	0.53	0.02	0.03
10-231	Tres Amigos	266.70	269.45	2.75	8.99	35.18	0.84	0.00	0.03
10-233	Tres Amigos	177.00	179.40	2.40	5.42	2.87	0.03	0.04	0.41
10-234	Tres Amigos	214.61	217.97	3.36	15.05	13.45	0.23	0.01	0.01
10-235	Tres Amigos	147.65	151.15	3.50	2.95	0.55	0.01	0.00	0.01
10-237	Tres Amigos	92.44	92.84	0.40	883.91	195.00	0.24	0.77	5.35
11-246	Tres Amigos	107.30	108.20	0.90	63.85	10.10	0.03	0.01	0.01
11-257	Tres Amigos	60.84	63.33	2.49	5.37	9.28	0.25	0.01	0.40
11-257	Tres Amigos	92.00	94.66	2.66	5.00	6.74	0.25	0.02	1.16
11-260	Tres Amigos	63.40	71.15	7.75	7.84	10.68	0.16	0.12	2.28
11-265	Tres Amigos	47.95	52.17	4.22	3.07	2.14	0.07	0.00	0.08
11-271	Tres Amigos	115.40	120.15	4.75	13.93	18.56	0.54	0.02	0.14
11-278	Tres Amigos	66.75	67.40	0.65	16.34	2.80	0.02	0.02	0.08
11-280	Tres Amigos	3.05	4.57	1.52	10.67	0.50	0.01	0.00	0.01

Notes: Intervals calculated with a 2 g/t Au cut-off grade, 5 m barren and 0.1 m minimum sample length; true thickness not calculated.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the Tres Amigos Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
97-001	213,713	2,898,104	628.0	62.00	150	-60	DDH
97-002	213,713	2,898,104	628.0	62.50	150	-80	DDH
97-003	213,772	2,898,147	637.2	76.00	150	-60	DDH
97-004	213,772	2,898,147	637.2	73.00	150	-80	DDH
97-005	213,819	2,898,103	671.0	41.20	150	-60	DDH
97-006	213,819	2,898,103	671.0	41.00	105	-60	DDH
97-007	213,699	2,898,121	622.8	89.00	150	-80	DDH
97-008	213,699	2,898,121	622.8	106.70	330	-80	DDH
97-009	213,669	2,898,111	620.8	152.40	0	-90	DDH
97-010	213,669	2,898,111	620.8	115.80	330	-74	DDH
97-011	213,659	2,898,066	620.0	47.70	0	-90	DDH
97-012	213,659	2,898,066	620.0	91.40	165	-60	DDH
97-013	213,744	2,898,166	629.0	156.40	0	-90	DDH
97-014	213,741	2,898,129	629.0	73.00	0	-90	DDH
97-035	213,718	2,898,198	628.0	208.79	0	-90	DDH
97-036	213,673	2,898,210	632.3	268.22	150	-70	DDH
97-037	213,750	2,898,169	630.0	118.30	63	-75	DDH
97-039	213,750	2,898,169	630.0	118.00	63	-60	DDH
97-040	213,750	2,898,169	630.0	140.50	243	-75	DDH
97-041	213,724	2,898,128	628.0	93.30	0	-90	DDH
97-042	213,727	2,898,184	629.0	128.50	0	-90	DDH
97-043	213,727	2,898,184	629.0	127.13	63	-70	DDH
97-044	213,725	2,898,207	630.0	150.91	63	-84	DDH
97-045	213,673	2,898,210	632.3	192.38	63	-72	DDH
97-046	213,652	2,898,223	633.0	239.30	63	-80	DDH
97-047	213,772	2,898,147	637.2	137.20	0	-90	DDH
08-052	213,490	2,898,016	677.9	205.40	0	-90	DDH
08-102	213,492	2,898,017	678.2	252.07	50	-60	DDH
08-110	213,642	2,898,247	637.9	249.02	0	-90	DDH
08-111	213,641	2,898,246	637.8	252.07	200	-75	DDH
08-112	213,640	2,898,245	637.9	200.25	65	-75	DDH
08-113	213,648	2,898,220	636.6	200.25	0	-90	DDH
08-114	213,648	2,898,218	636.8	281.90	200	-75	DDH
08-115	213,695	2,898,211	633.6	200.10	0	-90	DDH
08-116	213,695	2,898,210	633.6	250.05	200	-75	DDH
08-117	213,691	2,898,115	621.9	251.75	238	-60	DDH
08-118	213,675	2,898,060	617.8	250.15	230	-75	DDH

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the Tres Amigos Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
08-119	213,688	2,897,791	597.8	200.25	130	-60	DDH
09-127	213,485	2,897,219	633.07	201.17	100	-60	DDH
09-128	213,500	2,897,307	622.85	202.69	100	-60	DDH
09-129	213,498	2,897,365	604.28	202.69	100	-75	DDH
09-130	213,360	2,897,376	620.76	67.06	0	-90	DDH
09-142	213,362	2,897,386	620.83	300.23	105	-75	DDH
10-148	213,553	2,898,225	724.64	355.09	0	-90	DDH
10-149	213,562	2,898,197	720.39	361.19	0	-90	DDH
10-150	213,504	2,898,167	716.76	367.28	0	-90	DDH
10-151	213,529	2,898,106	725.45	370.33	0	-90	DDH
10-152	213,529	2,898,106	725.43	336.8	135	-60	DDH
10-153	213,481	2,898,094	727.7	370.33	0	-90	DDH
10-154	213,429	2,898,069	714.97	367.28	0	-90	DDH
10-155	213,402	2,898,019	707.82	355.09	0	-90	DDH
10-156	213,490	2,898,016	678.21	242.32	135	-70	DDH
10-157	213,426	2,897,944	666.74	241.07	135	-70	DDH
10-163	213,172	2,897,745	717.85	254.51	0	-90	DDH
10-164	213,253	2,898,004	666.00	300.23	0	-90	DDH
10-165	213,253	2,898,004	665.94	309.37	130	-70	DDH
10-169	213,689	2,897,587	579.07	208.79	110	-60	DDH
10-170	213,687	2,897,585	579.61	28.96	145	-60	DDH
10-171	213,688	2,897,590	579.64	220.98	145	-75	DDH
10-172	213,449	2,897,601	611.05	300.23	130	-60	DDH
10-173	213,500	2,897,771	625.06	300.23	130	-60	DDH
10-174	213,635	2,897,903	615.57	260.6	130	-60	DDH
10-175	213,567	2,898,203	721.43	361.19	60	-80	DDH
10-176	213,568	2,898,204	721.39	364.24	135	-70	DDH
10-177	213,508	2,898,171	716.49	357.19	135	-80	DDH
10-178	213,568	2,898,146	691.89	352.04	0	-90	DDH
10-179	213,568	2,898,145	691.89	355.09	135	-75	DDH
10-180	213,485	2,898,095	727.05	306.32	135	-75	DDH
10-181	213,435	2,897,992	676.42	309.37	125	-70	DDH
10-182	213,429	2,898,069	715.57	400.81	135	-75	DDH
10-183	213,387	2,897,977	686.91	16.96	0	-90	DDH
10-184	213,385	2,897,978	687.08	309.37	0	-90	DDH
10-185	213,538	2,898,020	654.17	251.46	0	-90	DDH
10-225	213,567	2,898,149	692.08	272.8	40	-80	DDH

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the Tres Amigos Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
10-226	213,555	2,898,116	711.77	300.23	0	-90	DDH
10-227	213,568	2,898,146	692.03	269.75	115	-75	DDH
10-228	213,555	2,898,116	711.77	278.89	135	-65	DDH
10-229	213,533	2,898,184	714.75	400.81	0	-90	DDH
10-230	213,507	2,898,169	716.38	370.33	205	-80	DDH
10-231	213,533	2,898,183	714.74	300.23	140	-82	DDH
10-232	213,533	2,898,020	657.68	272.8	135	-60	DDH
10-233	213,513	2,898,102	727.17	367.28	140	-65	DDH
10-234	213,690	2,898,115	621.88	248.41	170	-60	DDH
10-235	213,671	2,898,205	632.5	272.8	200	-75	DDH
10-237	213,683	2,897,960	616.52	178.31	0	-90	DDH
10-239	213,686	2,897,959	616.5	210.31	130	-60	DDH
11-242	213,508	2,898,103	727.6	376.43	210	-80	DDH
11-246	213,574	2,897,946	612.75	251.46	130	-75	DDH
11-251	213,577	2,897,878	606.27	202.69	130	-60	DDH
11-254	213,576	2,897,879	606.36	202.69	0	-90	DDH
11-257	213,736	2,898,183	626.89	214.88	0	-90	DDH
11-260	213,748	2,898,117	630.39	172.21	0	-90	DDH
11-262	213,748	2,898,117	630.56	150.88	130	-60	DDH
11-265	213,505	2,897,852	621.46	163.07	130	-70	DDH
11-267	213,505	2,897,852	621.44	220.98	0	-90	DDH
11-269	213,427	2,897,827	644.3	193.55	130	-70	DDH
11-271	213,426	2,897,828	644.3	190.5	0	-90	DDH
11-273	213,499	2,897,770	624.98	160.02	0	-90	DDH
11-275	213,466	2,897,651	627.44	172.21	0	-90	DDH
11-276	213,448	2,897,602	611.03	184.4	0	-90	DDH
11-278	213,369	2,897,666	631.77	260.6	0	-90	DDH
11-280	213,264	2,897,710	658.93	193.55	130	-70	DDH

7.2.2.3 Drilling at San Pablo Area

San Pablo is located south of the Tres Amigos area and north of the La Union area (Figure 7.13). One hundred and seventeen drill holes totaling 22,797 m have been completed at and around the San Pablo area. These programs included completion of four RC drill holes by Peñoles in 1992, 12 NQ drill core holes by Golden Hemlock in 1997, and 101 HQ/NQ drill core holes by Dyna de Mexico in 2007 to 2011. The Dyna de Mexico programs consisted of 52 drill core holes totaling 13,109 m during 2007 and 2008 and 49 drill core holes totaling 8,874 m during 2009 to 2011 (see Table 7.19; Tables 7.22 and 7.23).

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The drilling identifies a tabular shaped mineralized zone trending ~30° north-northeast with variable dips of between 35° and 55° to the northwest. Along this plane, the mineralized zone plunges to the southwest over 550 m with roughly 70% of the shoot lying below the underground workings at San Pablo. The San Pablo mineralized veins remain open to expansion by drilling down-dip and along strike to the northeast and southwest.

Table STYLEREF 1 \s 7. <br>Selected Drill Hole Assay Intercepts of San Pablo 1992 to 2011
Drill Hole ID	Target	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(%)	Pb<br><br>(%)	Zn<br><br>(%)
07-007	San Pablo	85.50	87.50	2.00	24.55	45.00	0.49	0.03	0.07
07-008	San Pablo	115.80	118.10	2.30	7.60	18.90	0.02	0.01	0.00
07-009	San Pablo	167.40	170.55	3.15	8.24	2.00	0.00	0.00	0.01
07-012	San Pablo	19.70	23.90	4.20	10.45	10.00	0.15	0.00	0.01
07-023	San Pablo	69.10	70.50	1.40	9.16	24.50	0.63	0.03	0.04
07-026	San Pablo	65.90	67.80	1.90	34.00	18.70	0.21	0.01	0.05
07-027	San Pablo	142.80	148.85	6.05	13.72	28.60	1.06	0.02	0.04
07-029	San Pablo	130.60	132.30	1.70	23.86	43.00	0.94	0.00	0.01
07-031	San Pablo	94.25	98.05	3.80	31.32	69.60	1.01	0.23	0.74
08-048	San Pablo	219.46	228.66	9.20	4.39	7.50	0.28	0.00	0.01
08-051	San Pablo	183.55	192.60	9.05	22.95	13.60	0.40	0.00	0.03
08-060	San Pablo	235.70	238.60	2.90	13.88	12.50	0.58	0.00	0.01
08-089	San Pablo	173.80	175.10	1.30	4.11	35.60	1.00	0.01	0.01
08-090	San Pablo	190.70	191.90	1.20	11.55	48.50	1.00	0.02	0.02
08-092	San Pablo	124.80	125.80	1.00	23.31	0.50	0.00	0.01	0.00
08-097	San Pablo	227.69	229.75	2.06	17.04	20.00	0.56	0.03	0.04
09-131	San Pablo	95.55	96.65	1.10	28.25	20.30	0.26	0.17	0.18
09-133	San Pablo	126.80	129.80	3.00	13.10	10.25	0.32	0.00	0.02
09-134	San Pablo	79.09	81.57	2.48	4.33	9.46	0.36	0.00	0.02
09-135	San Pablo	75.70	79.10	3.40	4.60	24.29	1.22	0.01	0.02
09-137	San Pablo	135.90	140.87	4.97	5.35	12.46	0.31	0.00	0.01
09-137	San Pablo	157.25	158.93	1.68	12.50	16.90	0.39	0.00	0.01
09-138	San Pablo	150.62	153.59	2.97	8.80	10.46	0.28	0.00	0.02
09-139	San Pablo	132.18	137.68	5.50	20.51	25.82	0.70	0.00	0.01
09-140	San Pablo	99.92	102.20	2.28	4.59	67.30	1.77	0.00	0.01
10-195	San Pablo	170.67	173.61	2.94	3.26	10.47	0.32	0.00	0.00
10-197	San Pablo	48.15	51.82	3.67	7.96	13.18	0.49	0.00	0.03
10-197	San Pablo	102.00	105.30	3.30	28.38	14.00	0.00	0.01	0.09
10-199	San Pablo	4.68	6.24	1.56	9.14	4.10	0.02	0.00	0.00
10-201	San Pablo	23.40	25.50	2.10	15.78	17.35	0.19	0.01	0.02
10-203	San Pablo	70.65	76.15	5.50	332.86	143.9	0.02	0.00	0.01

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Selected Drill Hole Assay Intercepts of San Pablo 1992 to 2011
Drill Hole ID	Target	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(%)	Pb<br><br>(%)	Zn<br><br>(%)
10-207	San Pablo	80.15	83.20	3.05	16.74	24.17	0.54	0.01	0.02
10-212	San Pablo	46.80	51.60	4.80	5.90	6.97	0.38	0.01	0.22
10-213	San Pablo	171.75	173.56	1.81	5.78	10.60	0.18	0.00	0.01
10-215	San Pablo	186.80	190.27	3.47	15.82	14.68	0.41	0.03	0.02
10-217	San Pablo	182.64	184.06	1.42	89.95	38.70	0.74	0.00	0.01
10-219	San Pablo	155.84	157.25	1.41	10.82	11.84	0.39	0.00	0.01
10-221	San Pablo	69.98	71.98	2.00	13.14	23.93	0.62	0.00	0.01
10-224	San Pablo	122.82	125.05	2.23	5.29	18.70	0.69	0.02	0.04
10-224	San Pablo	148.60	154.95	6.35	7.04	13.31	0.57	0.00	0.01
10-236	San Pablo	112.96	117.03	4.07	11.38	22.92	0.68	0.00	0.01
11-247	San Pablo	63.60	65.45	1.85	10.49	5.92	0.01	0.00	0.02
11-247	San Pablo	80.00	83.47	3.47	5.00	36.71	0.53	0.01	0.02
11-249	San Pablo	108.20	109.93	1.73	8.21	30.29	0.80	0.00	0.02
11-250	San Pablo	101.72	104.81	3.09	20.15	53.44	0.88	0.24	0.54
11-263	San Pablo	119.88	121.13	1.25	9.47	21.70	0.65	0.01	0.04
11-264	San Pablo	145.21	146.45	1.24	21.24	78.80	0.72	0.04	0.01
11-268	San Pablo	92.65	94.25	1.60	11.74	21.13	0.37	0.01	0.04

Notes: Intervals calculated with a 2 g/t Au cut-off grade, 5 m barren and 0.1 m minimum sample length; true thickness not calculated.

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the San Pablo Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
92-007	213,024	2,897,050	730.0	124.97	90	-45	RC
92-008	212,916	2,897,251	670.0	51.82	0	-90	RC
92-009	213,101	2,897,240	694.8	51.82	0	-90	RC
92-010	213,055	2,897,239	685.0	51.82	202	-45	RC
97-015	213,098	2,897,179	710.0	55.77	0	-90	DDH
97-016	213,118	2,897,184	707.4	48.76	0	-90	DDH
97-017	213,095	2,897,149	711.8	54.90	0	-90	DDH
97-018	213,139	2,897,210	698.9	42.67	0	-90	DDH
97-019	213,050	2,897,150	709.9	39.60	0	-90	DDH
97-020	213,073	2,897,176	708.8	47.90	0	-90	DDH
97-021	213,079	2,897,202	703.5	42.70	0	-90	DDH
97-022	213,142	2,897,239	689.9	22.20	0	-90	DDH

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the San Pablo Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
97-023	213,088	2,897,236	695.0	14.78	0	-90	DDH
97-024	213,112	2,897,237	695.0	52.50	230	-45	DDH
97-025	213,106	2,897,128	715.9	45.72	0	-90	DDH
97-026	213,106	2,897,206	707.0	66.45	0	-90	DDH
07-004	212,871	2,897,301	653.5	169.90	110	-60	DDH
07-005	212,911	2,896,999	722.3	197.60	0	-90	DDH
07-007	212,928	2,897,111	724.2	179.40	110	-60	DDH
07-008	212,925	2,897,306	647.1	149.60	40	-60	DDH
07-009	212,856	2,897,252	679.2	180.75	130	-60	DDH
07-010	212,855	2,897,253	679.4	161.65	0	-90	DDH
07-011	212,991	2,897,214	689.0	148.10	130	-60	DDH
07-012	212,990	2,897,215	688.9	103.70	0	-90	DDH
07-023	212,930	2,897,044	723.5	208.90	110	-60	DDH
07-024	213,012	2,897,040	740.7	255.50	0	-90	DDH
07-025	213,013	2,897,040	740.7	201.15	110	-62	DDH
07-026	212,964	2,897,168	704.8	201.30	110	-60	DDH
07-027	212,839	2,897,158	727.0	258.10	0	-90	DDH
07-028	212,848	2,897,205	697.8	210.00	127	-60	DDH
07-029	212,847	2,897,205	697.8	251.30	0	-90	DDH
07-030	212,811	2,897,089	695.5	259.50	0	-90	DDH
07-031	212,812	2,897,089	695.6	213.35	110	-60	DDH
07-032	212,811	2,896,994	698.3	261.95	0	-90	DDH
07-033	212,811	2,896,994	698.4	200.90	110	-60	DDH
07-034	212,874	2,897,300	653.9	251.05	0	-90	DDH
08-046	212,731	2,897,183	711.9	269.35	0	-90	DDH
08-048	212,716	2,897,128	708.9	269.70	0	-90	DDH
08-049	212,756	2,897,297	670.1	258.25	0	-90	DDH
08-050	212,751	2,897,229	695.4	244.55	0	-90	DDH
08-051	212,700	2,897,073	685.3	231.80	0	-90	DDH
08-053	212,631	2,897,151	689.7	302.20	0	-90	DDH
08-056	212,686	2,897,003	676.8	248.10	0	-90	DDH
08-058	212,646	2,897,252	693.3	312.70	0	-90	DDH
08-060	212,618	2,897,091	678.1	296.55	0	-90	DDH
08-062	212,673	2,896,960	671.5	264.80	0	-90	DDH
08-064	212,582	2,896,992	662.0	282.05	0	-90	DDH
08-065	212,583	2,896,917	634.6	268.30	0	-90	DDH
08-067	212,545	2,897,106	702.2	335.60	0	-90	DDH

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Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the San Pablo Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
08-074	212,534	2,897,064	701.6	364.85	0	-90	DDH
08-077	212,534	2,897,010	670.1	352.66	0	-90	DDH
08-079	212,418	2,897,021	691.0	343.51	0	-90	DDH
08-081	212,422	2,897,075	682.8	367.89	0	-90	DDH
08-083	212,460	2,897,107	676.8	346.56	0	-90	DDH
08-085	213,069	2,897,527	672.4	249.02	0	-90	DDH
08-086	213,016	2,897,447	677.1	248.41	0	-90	DDH
08-087	212,967	2,897,389	676.9	249.02	0	-90	DDH
08-088	212,892	2,897,358	683.2	249.02	0	-90	DDH
08-089	212,752	2,897,234	695.1	239.88	110	-75	DDH
08-090	212,730	2,897,185	711.6	249.02	110	-75	DDH
08-091	212,713	2,897,120	709.0	252.07	110	-75	DDH
08-092	212,705	2,897,071	684.9	252.07	110	-60	DDH
08-093	212,686	2,897,005	677.4	246.05	110	-60	DDH
08-094	212,628	2,897,157	689.5	299.01	110	-75	DDH
08-095	212,619	2,897,090	677.9	256.03	110	-75	DDH
08-096	212,544	2,897,109	702.2	344.73	110	-75	DDH
08-097	212,534	2,897,064	701.7	268.83	110	-60	DDH
08-098	212,550	2,897,012	670.2	282.55	110	-75	DDH
09-131	212,840	2,897,111	709.65	150.88	0	-90	DDH
09-132	212,841	2,897,111	709.67	181.36	110	-70	DDH
09-133	212,839	2,897,157	726.92	163.07	110	-80	DDH
09-134	212,900	2,897,083	715.04	129.54	0	-90	DDH
09-135	212,901	2,897,083	715.10	126.49	110	-60	DDH
09-136	212,958	2,897,012	728.77	251.46	110	-60	DDH
09-137	212,716	2,897,058	685.42	211.84	110	-78	DDH
09-138	212,660	2,897,046	666.81	193.55	110	-75	DDH
09-139	212,798	2,897,137	712.51	216.41	110	-75	DDH
09-140	212,871	2,897,130	723.38	105.16	110	-75	DDH
10-166	212,826	2,897,297	663.09	202.69	0	-90	DDH
10-167	212,546	2,897,241	714.56	352.04	110	-70	DDH
10-168	212,412	2,896,907	699.36	400.81	0	-90	DDH
10-189	212,893	2,897,261	664.94	163.07	105	-60	DDH
10-192	212,907	2,897,235	673.74	208.79	0	-90	DDH
10-194	213,001	2,897,265	664.98	64.01	110	-75	DDH
10-195	212,814	2,897,251	678.97	185.20	0	-90	DDH
10-197	212,921	2,897,201	685.31	156.97	105	-50	DDH

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Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the San Pablo Area
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length (m)	Azimuth (°)	Dip<br><br>(°)	Type
10-199	213,044	2,897,223	689.46	64.01	110	-75	DDH
10-200	213,039	2,897,192	700.01	51.82	110	-60	DDH
10-201	213,028	2,897,166	706.69	108.20	110	-60	DDH
10-203	212,970	2,897,172	704.80	175.26	0	-90	DDH
10-205	212,952	2,897,133	711.97	119.29	110	-60	DDH
10-207	212,919	2,897,127	717.83	156.97	110	-70	DDH
10-209	212,966	2,897,064	736.32	129.54	110	-60	DDH
10-210	213,010	2,897,086	728.28	111.25	110	-75	DDH
10-212	213,016	2,897,118	723.78	108.20	110	-75	DDH
10-213	212,729	2,897,153	710.33	217.93	110	-65	DDH
10-215	212,728	2,897,154	710.33	233.17	110	-80	DDH
10-217	212,742	2,897,212	696.96	254.41	110	-80	DDH
10-219	212,742	2,897,211	696.99	227.08	110	-60	DDH
10-221	212,906	2,897,173	703.18	126.49	115	-50	DDH
10-222	212,848	2,897,204	698.02	202.69	110	-75	DDH
10-224	212,808	2,897,205	695.50	220.98	0	-90	DDH
10-236	212,843	2,897,182	712.15	176.78	120	-75	DDH
10-238	212,664	2,897,101	685.51	263.65	0	-90	DDH
11-240	212,535	2,897,064	701.60	317.17	110	-75	DDH
11-243	212,859	2,897,040	705.90	141.73	110	-60	DDH
11-245	212,803	2,897,026	697.59	150.88	110	-60	DDH
11-247	212,870	2,897,066	700.44	150.88	110	-60	DDH
11-249	212,812	2,897,089	695.52	160.02	110	-75	DDH
11-250	212,802	2,897,069	689.01	163.07	110	-75	DDH
11-253	212,778	2,897,102	691.80	181.36	0	-90	DDH
11-255	212,721	2,897,094	698.37	220.98	110	-65	DDH
11-258	212,744	2,897,013	683.19	169.16	110	-60	DDH
11-261	212,763	2,897,040	686.41	153.92	110	-60	DDH
11-263	212,707	2,897,031	682.15	190.50	110	-75	DDH
11-264	212,687	2,897,002	677.27	211.84	110	-75	DDH
11-279	212,633	2,896,978	643.46	251.46	0	-90	DDH

7.2.2.4 Drilling at La Union Area

The La Union area is located in the center portion of the four km long stretch of historical mines and prospects at San José de Gracia, being south of San Pablo area and north of the La Purisima area (Figure 7.13). As described previously, the La Union Mine is part of the larger La Parilla to

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Veta Tierra Trend with a general southwest striking, northwest dipping (50° to 70°) series of veins (Veta Tierra, Sta. Eduwiges, La Union, La Mochomera, La Parilla) that can be traced along a 700 m strike length northeastwards to La Prieta.

Drilling at La Union totals 54 holes for 19,453 m. Six drill holes totaling 934 m were completed at La Union by Peñoles in 1992, eight drill holes totaling 711 m were completed by Golden Hemlock in 1997, and 40 drill holes totaling (8,808 m) were completed by Dyna de Mexico from 2007 To 2011. In the latter program, Dyna de Mexico completed 16 drill holes totaling 3,640 m in the 2007 and 2008 drilling programs and an additional 24 drill holes totaling 6,486 m in the 2009 to 2011 drilling programs (see Table 7.19; Tables 7.24 and 7.25).

Drilling along strike to the northeast from La Union has demonstrated continuity of the vein hosting structure as far as the historical Veta Tierra Mine. Additional drilling here is required to determine whether La Union, Veta Tierra and San Pablo are all the same structure. The La Union mineralized veins remain open to expansion by drilling down-dip and along strike northeast and southwest.

Table STYLEREF 1 \s 7. <br>Selected Drill Hole Assay Intercepts of La Union 1992 to 2011
Drill Hole ID	Target	From (m)	To<br><br>(m)	Length<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(%)	Pb<br><br>(%)	Zn<br><br>(%)
92-001	La Union	46.00	60.96	14.96	2.58
97-027	La Union	20.30	21.30	1.00	6.14	12.50	0.05	0.24	0.04
97-029	La Union	38.10	41.20	3.10	3.63	8.60	0.11	0.02	0.06
97-030	La Union	75.00	78.10	3.10	4.62	9.10	0.50	0.00	0.01
97-031	La Union	87.00	91.00	4.00	2.84	6.70	0.34	0.00	0.01
97-034	La Union	45.70	47.70	2.00	8.87	4.10	0.14	0.00	0.01
08-061	La Union	27.80	31.30	3.50	2.01	24.80	0.45	0.22	0.15
08-076	La Union	32.75	34.85	2.10	36.09	47.80	0.43	0.80	1.06
08-080	La Union	125.30	128.40	3.10	4.82	4.40	0.11	0.00	0.01
09-143	La Union	55.36	56.76	1.40	12.08	8.80	0.13	0.01	0.01
10-208	La Union	150.61	152.67	2.06	6.60	10.30	0.40	0.00	0.01
10-216	La Union	39.24	42.20	2.96	12.36	3.45	0.06	0.00	0.01
10-218	La Union	140.01	141.30	1.29	8.42	6.41	0.08	0.00	0.01
10-223	La Union	29.52	31.14	1.62	9.90	6.60	0.02	0.00	0.02
10-223	La Union	63.90	67.42	3.52	10.24	10.69	0.62	0.00	0.01
11-244	La Union	73.82	74.86	1.04	9.79	65.20	1.42	0.03	0.37
11-252	La Union	55.25	59.70	4.45	4.26	12.05	0.37	0.01	0.04
11-256	La Union	51.61	52.85	1.24	144.08	138.60	1.06	1.61	1.78
11-256	La Union	99.93	101.29	1.36	9.04	3.30	0.01	0.00	0.01
11-298	La Union	49.15	49.85	0.7	49.39	20.80	0.20	0.01	0.03

Notes: Intervals calculated with a 2 g/t Au cut-off grade, 5 m barren and 0.1 m minimum sample length; true thickness not calculated.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Union Area
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
92-001	212,890	2,896,746	685.0	201.17	150	-45	RC	La Union
92-002	213,064	2,896,931	760.0	201.17	150	-45	RC	La Union
92-003	213,018	2,896,661	720.0	120.40	150	-45	RC	La Union
92-004	213,026	2,896,823	765.0	152.40	150	-45	RC	La Union
92-005	213,196	2,896,851	790.0	100.58	150	-45	RC	La Union
92-006	213,221	2,897,014	748.0	158.50	150	-45	RC	La Union
97-027	212,959	2,896,769	730.0	82.30	90	-60	DDH	La Union
97-028	212,959	2,896,769	730.0	28.04	0	-90	DDH	La Union
97-029	212,931	2,896,795	730.0	44.20	90	-60	DDH	La Union
97-030	212,950	2,896,715	698.0	100.58	110	-60	DDH	La Union
97-031	212,949	2,896,738	710.0	100.58	110	-50	DDH	La Union
97-032	212,913	2,896,707	690.0	128.00	110	-60	DDH	La Union
97-033	212,905	2,896,745	692.0	161.54	110	-50	DDH	La Union
97-034	212,947	2,896,685	688.0	65.53	110	-60	DDH	La Union
08-055	212,791	2,896,815	637.3	212.45	110	-60	DDH	La Union
08-057	212,847	2,896,836	662.8	203.35	110	-60	DDH	La Union
08-059	212,780	2,896,762	653.2	218.95	110	-60	DDH	La Union
08-061	212,741	2,896,702	622.9	218.90	150	-60	DDH	La Union
08-072	212,739	2,896,703	622.7	227.30	0	-90	DDH	La Union
08-075	212,614	2,896,604	588.5	241.90	130	-60	DDH	La Union
08-076	212,686	2,896,671	603.8	274.60	130	-60	DDH	La Union
08-078	212,526	2,896,492	572.0	222.60	130	-60	DDH	La Union
08-080	212,569	2,896,555	595.3	217.55	132	-75	DDH	La Union
08-120	212,622	2,896,721	610.4	250.85	130	-60	DDH	La Union
08-121	212,600	2,896,691	623.6	94.15	130	-60	DDH	La Union
08-122	212,550	2,896,658	629.1	251.25	130	-60	DDH	La Union
08-123	212,491	2,896,610	631.6	250.70	130	-60	DDH	La Union
08-124	212,435	2,896,554	623.4	250.90	130	-60	DDH	La Union
08-125	212,596	2,896,691	623.4	252.35	130	-75	DDH	La Union
08-126	212,543	2,896,743	647.6	252.35	130	-60	DDH	La Union
09-143	212,765	2,896,873	631.58	227.08	115	-60	DDH	La Union
09-144	212,764	2,896,873	631.69	217.93	0	-90	DDH	La Union
10-158	212,818	2,896,927	664.39	244.42	110	-60	DDH	La Union
10-159	212,817	2,896,928	664.44	106.68	0	-90	DDH	La Union
10-208	212,836	2,896,558	642.74	156.97	0	-90	DDH	La Union
10-211	212,742	2,896,614	637.48	172.21	130	-60	DDH	La Union

P&E Mining Consultants Inc. Report No. 474 Page 157 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Union Area
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
10-214	212,794	2,896,651	649.55	160.02	130	-60	DDH	La Union
10-216	212,932	2,896,666	683.25	150.88	120	-70	DDH	La Union
10-218	212,931	2,896,760	701.16	166.12	110	-75	DDH	La Union
10-220	212,899	2,896,716	687.28	230.12	110	-75	DDH	La Union
10-223	212,965	2,896,753	714.69	172.21	110	-60	DDH	La Union
11-241	212,882	2,896,875	708.81	244.32	110	-60	DDH	La Union
11-244	212,881	2,896,875	708.75	272.8	0	-90	DDH	La Union
11-248	212,975	2,896,888	740.87	242.32	0	-90	DDH	La Union
11-252	213,043	2,896,803	756.77	202.69	110	-60	DDH	La Union
11-256	213,057	2,896,878	757.26	220.98	110	-60	DDH	La Union
11-259	213,101	2,896,969	732.92	199.64	110	-60	DDH	La Union
11-266	213,080	2,897,096	722.88	202.69	110	-60	DDH	La Union
11-268	212,735	2,896,918	671.96	352.04	0	-90	DDH	La Union
11-272	212,735	2,896,918	671.98	297.18	110	-75	DDH	La Union
11-283	212,701	2,896,845	638.05	251.46	0	-90	DDH	La Union
11-286	212,702	2,896,845	637.94	244	110	-60	DDH	La Union
11-292	212,701	2,896,759	620.09	220.98	125	-60	DDH	La Union
11-298	212,702	2,896,759	620.08	211.84	0	-90	DDH	La Union

7.2.2.5 Drilling in the La Purisima Area

The La Purisima Area is located in the southern portion of the ~4 km-long extent of gold mines and prospects at the SJG Project. La Purisima is located 250 m south of La Union and 1,800 m northeast of the Village of San José de Gracia.

Drilling at La Purisima totals 80 drill holes for 15,749 m. One drill hole totaling 146 m was completed by Industrial Peñoles in 1992, 13 drill holes for 1,169 m were completed by Golden Hemlock in 1997, and 66 drill holes for 14,434 m were completed by Dyna de Mexico during the 2007 to 2011 drilling programs (see Table 7.19; Tables 7.26 and 7.27).

Drilling at La Purisima has established an up-dip connection between the historical Palos Chinos workings and the main La Purisima Zone outlining a mineralized shoot plunging to the southwest. Mineralized intercepts are generally narrower than at Tres Amigos and San Pablo.

The La Purisima mineralized zone remains open up-dip to the Palos Chinos structure and open down-dip and along strike to the northwest and southeast.

P&E Mining Consultants Inc. Report No. 474 Page 158 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Selected Drill Hole Assay Intercepts of La Purisima 1992 to 2011
Drill Hole ID	Target	From (m)	To<br><br>(m)	Length (m)	Au<br><br>(g/t)	Ag<br><br>(g/t)	Cu<br><br>(%)	Pb<br><br>(%)	Zn<br><br>(%)
97-055	La Purisima	24.40	27.40	3.00	5.24	28.50	0.63	0.35	1.83
97-063	La Purisima	54.50	61.50	7.00	3.13	4.00	0.07	0.02	0.00
97-063	La Purisima	67.30	70.00	2.70	8.45	11.10	0.68	0.00	0.00
07-016	La Purisima	32.45	34.60	2.15	5.20	4.20	0.22	0.00	0.01
07-021	La Purisima	158.70	160.80	2.10	75.90	76.00	1.61	0.07	0.00
07-036	La Purisima	91.40	92.82	1.42	4.47	2.60	0.01	0.01	0.06
07-037	La Purisima	251.30	253.50	2.20	4.88	23.00	0.01	0.01	0.00
07-039	La Purisima	197.55	200.80	3.25	10.93	4.60	0.04	0.00	0.01
07-042	La Purisima	16.10	18.30	2.20	3.02	2.00	0.01	0.01	0.05
08-068	La Purisima	135.40	137.00	1.60	18.16	8.30	0.04	0.03	0.22
08-070	La Purisima	120.50	121.60	1.10	9.50	2.70	0.01	0.00	0.06
08-082	La Purisima	151.60	153.30	1.70	18.16	0.10	0.00	0.00	0.04
10-161	La Purisima	87.70	99.67	11.97	3.12	4.86	0.36	0.00	0.01
10-186	La Purisima	92.10	93.45	1.35	14.73	11.17	0.47	0.00	0.00
10-193	La Purisima	41.15	46.75	5.60	3.96	32.31	0.01	0.10	0.14
10-198	La Purisima	35.05	36.58	1.53	13.64	6.10	0.14	0.00	0.00
10-204	La Purisima	128.02	131.86	3.84	4.06	3.15	0.09	0.00	0.00
10-204	La Purisima	173.15	174.58	1.43	7.21	5.57	0.08	0.00	0.01
10-206	La Purisima	121.73	124.04	2.31	14.63	3.45	0.02	0.00	0.00
11-282	La Purisima	27.43	30.48	3.05	6.21	3.44	0.01	0.02	0.03
11-282	La Purisima	74.45	75.36	0.91	18.87	10.10	0.03	0.00	0.00
11-282	La Purisima	152.40	153.92	1.52	7.79	1.40	0.04	0.00	0.00
11-285	La Purisima	85.06	87.92	2.86	3.93	0.80	0.03	0.00	0.00
11-285	La Purisima	98.50	102.15	3.65	6.70	3.87	0.20	0.00	0.01
11-289	La Purisima	109.73	112.78	3.05	9.50	7.05	0.11	0.02	0.00
11-293	La Purisima	38.11	39.27	1.16	10.06	0.50	0.01	0.00	0.00
11-293	La Purisima	158.75	160.55	1.80	12.65	2.84	0.10	0.00	0.01

P&E Mining Consultants Inc. Report No. 474 Page 159 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Purisima Trend
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
92-011	212,804	2,896,505	630.0	146.30	90	-45	RC	La Purisima
97-051	212,671	2,895,765	540.0	93.90	0	-90	DDH	La Purisima
97-052	212,949	2,895,743	512.0	26.52	0	-90	DDH	La Purisima
97-053	212,870	2,895,515	509.0	117.07	0	-90	DDH	La Purisima
97-054	212,947	2,895,455	510.0	80.50	0	-90	DDH	La Purisima
97-055	213,052	2,895,729	465.0	150.30	0	-90	DDH	La Purisima
97-056	213,000	2,895,711	491.0	186.90	0	-90	DDH	La Purisima
97-057	213,000	2,895,735	485.0	130.80	0	-90	DDH	La Purisima
97-058	212,956	2,895,728	510.0	35.67	0	-90	DDH	La Purisima
97-059	212,956	2,895,719	511.8	38.41	0	-90	DDH	La Purisima
97-060	212,894	2,895,701	511.0	74.09	0	-90	DDH	La Purisima
97-061	213,087	2,895,413	487.0	38.11	0	-90	DDH	La Purisima
97-062	213,087	2,895,413	487.0	54.88	62	-60	DDH	La Purisima
97-063	212,869	2,896,326	590.0	141.80	57	-60	DDH	La Purisima
97-064	211,960	2,895,020	420.1	140.55	o	-90	DDH	Argillic
07-001	212,944	2,896,203	596.4	129.20	55	-60	DDH	La Purisima
07-002	212,888	2,896,287	590.6	167.50	55	-60	DDH	La Purisima
07-003	212,801	2,896,343	589.8	185.85	55	-60	DDH	La Purisima
07-015	212,867	2,896,328	591.4	166.70	30	-60	DDH	La Purisima
07-016	212,869	2,896,326	590.0	174.50	57	-45	DDH	La Purisima

P&E Mining Consultants Inc. Report No. 474 Page 160 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Purisima Trend
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
07-017	212,866	2,896,328	590.1	137.70	0	-90	DDH	La Purisima
07-018	212,891	2,896,016	536.1	151.20	0	-90	DDH	La Purisima
07-019	212,892	2,896,016	536.3	147.65	90	-60	DDH	La Purisima
07-020	213,064	2,895,723	462.3	156.20	80	-75	DDH	La Purisima
07-021	212,683	2,895,995	544.7	191.25	90	-75	DDH	La Purisima
07-022	212,683	2,895,995	544.7	198.85	0	-90	DDH	La Purisima
07-035	212,752	2,895,814	547.5	254.10	0	-90	DDH	La Purisima
07-036	212,711	2,895,920	549.3	244.40	60	-75	DDH	La Purisima
07-037	212,711	2,895,920	549.3	253.50	0	-90	DDH	La Purisima
07-038	212,770	2,895,998	501.8	205.65	0	-90	DDH	La Purisima
07-039	212,846	2,895,989	511.7	206.85	0	-90	DDH	La Purisima
07-040	212,675	2,896,049	541.4	308.05	60	-75	DDH	La Purisima
07-041	212,675	2,896,049	541.4	309.65	0	-90	DDH	La Purisima
07-042	212,699	2,896,143	547.5	306.65	0	-90	DDH	La Purisima
08-043	212,776	2,895,751	529.5	300.65	0	-90	DDH	La Purisima
08-044	212,808	2,895,455	534.2	301.40	0	-90	DDH	La Purisima
08-045	213,211	2,896,137	573.6	201.10	0	-90	DDH	La Purisima
08-047	213,219	2,895,883	535.9	252.85	60	-60	DDH	La Purisima
08-063	212,756	2,895,525	538.9	353.10	0	-90	DDH	La Purisima
08-066	212,691	2,895,780	542.8	346.00	0	-90	DDH	La Purisima

P&E Mining Consultants Inc. Report No. 474 Page 161 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Purisima Trend
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
08-068	212,755	2,895,815	547.2	255.12	60	-65	DDH	La Purisima
08-069	212,775	2,895,752	529.7	282.55	60	-50	DDH	La Purisima
08-070	212,747	2,895,862	554.2	255.12	60	-70	DDH	La Purisima
08-071	212,886	2,895,729	514.8	276.45	60	-60	DDH	La Purisima
08-073	212,909	2,895,667	510.5	230.73	60	-60	DDH	La Purisima
08-082	212,666	2,895,830	558.2	212.20	60	-70	DDH	La Purisima
08-084	212,789	2,895,676	530.8	297.30	60	-60	DDH	La Purisima
08-099	212,827	2,895,610	523.1	252.07	60	-70	DDH	La Purisima
08-100	212,881	2,895,565	511.7	236.83	60	-60	DDH	La Purisima
09-141	212,817	2,896,233	541.06	202.69	60	-60	DDH	La Purisima
09-145	212,470	2,896,290	622.77	172.21	70	-60	DDH	La Purisima
09-146	212,557	2,895,925	590.35	172.21	60	-70	DDH	La Purisima
09-147	212,556	2,895,925	590.34	315.47	0	-90	DDH	La Purisima
10-160	212,842	2,896,197	539.48	211.84	60	-60	DDH	La Purisima
10-161	212,816	2,896,129	520.17	211.84	60	-60	DDH	La Purisima
10-162	213,285	2,895,942	516.03	205.74	140	-60	DDH	La Purisima
10-186	212,815	2,896,129	520.1	251.46	0	-90	DDH	La Purisima
10-187	212,818	2,896,067	532.23	205.74	60	-60	DDH	La Purisima
10-188	212,893	2,895,934	490.32	220.98	0	-90	DDH	La Purisima
10-190	212,669	2,895,880	569.07	327.66	0	-90	DDH	La Purisima

P&E Mining Consultants Inc. Report No. 474 Page 162 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Purisima Trend
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
10-191	212,702	2,895,958	534.93	202.69	0	-90	DDH	La Purisima
10-193	212,656	2,896,124	546.47	251.46	0	-90	DDH	La Purisima
10-196	212,769	2,896,144	518.97	205.74	0	-90	DDH	La Purisima
10-198	212,791	2,896,091	518.33	202.69	0	-90	DDH	La Purisima
10-202	212,768	2,896,046	510.72	196.6	0	-90	DDH	La Purisima
10-204	212,818	2,896,067	532.28	211.84	60	-85	DDH	La Purisima
10-206	212,885	2,896,061	538.54	140.21	0	-90	DDH	La Purisima
11-270	212,606	2,896,229	592.38	202.69	0	-90	DDH	La Purisima
11-274	212,552	2,896,108	590.99	187.45	0	-90	DDH	La Purisima
11-277	212,554	2,896,027	602.68	202.69	0	-90	DDH	La Purisima
11-281	212,595	2,896,060	570	112.78	0	-90	DDH	La Purisima
11-282	212,815	2,896,234	541.18	204.22	0	-90	DDH	La Purisima
11-284	212,604	2,896,152	564.49	201.17	0	-90	DDH	La Purisima
11-285	212,843	2,896,197	539.36	202.69	0	-90	DDH	La Purisima
11-287	212,885	2,896,061	538.92	202.69	65	-60	DDH	La Purisima
11-288	212,670	2,896,188	580.43	51.82	0	-90	DDH	La Purisima
11-289	212,778	2,895,954	524.4	160.02	0	-90	DDH	La Purisima
11-290	212,802	2,896,179	523.73	202.69	0	-90	DDH	La Purisima
11-291	212,327	2,895,500	482.79	251.46	135	-60	DDH	Argillic
11-293	212,770	2,896,045	510.69	227.08	65	-70	DDH	La Purisima
11-294	211,978	2,895,129	435.77	291.08	60	-60	DDH	Argillic

P&E Mining Consultants Inc. Report No. 474 Page 163 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>Drill Collar Locations, Orientation and Hole Lengths<br>in the La Purisima Trend
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length (m)	Azimuth<br><br>(°)	Dip<br><br>(°)	Type	Target
11-295	212,820	2,896,007	505.24	207.44	40	-60	DDH	La Purisima
11-296	212,820	2,896,006	505.08	211.84	0	-90	DDH	La Purisima
11-297	211,987	2,894,962	414.62	254.51	60	-60	DDH	Argillic

7.2.3 2021-2022 Drilling Program

In a Company press release dated November 15, 2021, DynaResource announced start of an ~15,000 m surface drilling program at SJG. This was the first drilling program at SJG since 2011. The purpose of the surface drilling program was three-fold: 1) to aid definition of a potential bulk mineable Mineral Resource; 2) to expand underground Mineral Resources; and 3) discover new and additional mineralized zones with potential to become future Mineral Resources.

In total, 123 drill holes were completed for 19,104 m. The main areas drilled were Tres Amigos Zone (35 drill holes totaling 7,402 m; includes 8 drill holes totaling 3,051 m at Tep Ceceña), La Union Zone (83 drill holes totaling 10,823 m; includes 10 drill holes totaling 1,447.30 m at La Union-Mochomera), and San Pablo (5 drill holes totaling 1,072 4 drill; includes 4 drill holes totaling 802 m at Palos Chinos) (Figure 7.14 and Tables 7.28 and 7.29).

P&E Mining Consultants Inc. Report No. 474 Page 164 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Plan View of post-2011 Drilling at the SJG Project

Source: Modified by P&E (This Report) from DynaResource (March 2025)

P&E Mining Consultants Inc. Report No. 474 Page 165 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG21-299	TRES_AMIGOS	Main	2.00	6.00	4.00	1.053	5.2
SJG21-299	TRES_AMIGOS	including	2.00	4.00	2.00	1.862	7.3
SJG21-299	TRES_AMIGOS	Main	89.50	91.90	2.40	0.643	6.6
SJG21-299	TRES_AMIGOS	including	89.50	90.45	0.95	1.194	7.2
SJG21-302	TRES_AMIGOS	Main	44.50	47.50	3.00	6.188	10.5
SJG21-302	TRES_AMIGOS	including	46.00	47.00	1.00	17.400	24.6
SJG21-303	TRES_AMIGOS	Main	0.00	8.00	8.00	1.048	6.9
SJG21-303	TRES_AMIGOS	including	4.00	6.00	2.00	2.745	2.7
SJG21-303	TRES_AMIGOS	Main	113.00	122.00	9.00	2.370	4.7
SJG21-303	TRES_AMIGOS	including	120.00	122.00	2.00	6.245	6.1
SJG21-303	TRES_AMIGOS	Main	133.00	134.00	1.00	5.282	3.5
SJG21-304	TRES_AMIGOS	Main	40.00	56.00	16.00	2.067	3.6
SJG21-304	TRES_AMIGOS	including	46.00	48.00	2.00	13.200	6.3
SJG21-305	TRES_AMIGOS	Main	171.60	176.80	5.20	1.548	15.9
SJG21-305	TRES_AMIGOS	including	172.60	173.15	0.55	10.600	97.0
SJG21-306	TRES_AMIGOS	Main	1.10	6.60	5.50	12.582	18.2
SJG21-306	TRES_AMIGOS	including	3.60	6.60	3.00	22.900	31.5
SJG21-307	TRES_AMIGOS	Main	0.00	4.60	4.60	16.206	26.7
SJG21-307	TRES_AMIGOS	including	1.10	3.60	2.50	22.158	34.2
SJG21-307	TRES_AMIGOS	Main	15.60	18.60	3.00	2.792	4.1
SJG21-307	TRES_AMIGOS	including	18.10	18.60	0.50	9.346	5.1
SJG21-307	TRES_AMIGOS	Main	19.60	26.70	7.10	3.242	6.3
SJG21-307	TRES_AMIGOS	including	23.80	24.40	0.60	15.700	13.6
SJG21-307	TRES_AMIGOS	Main	73.85	76.75	2.90	4.748	10.7
SJG21-307	TRES_AMIGOS	including	73.85	74.55	0.70	9.647	29.1
SJG21-307	TRES_AMIGOS	Main	84.00	88.50	4.50	3.160	5.6
SJG21-307	TRES_AMIGOS	including	85.00	86.00	1.00	9.798	5.5
SJG21-308	TRES_AMIGOS	Main	1.00	3.50	2.50	106.365	52.3
SJG21-308	TRES_AMIGOS	including	1.50	3.50	2.00	131.575	49.5
SJG21-308	TRES_AMIGOS	Main	38.00	43.00	5.00	3.954	13.8
SJG21-308	TRES_AMIGOS	including	40.00	42.00	2.00	5.773	19.2
SJG21-308	TRES_AMIGOS	Main	63.50	64.50	1.00	7.063	12.6
SJG21-308	TRES_AMIGOS	including	64.00	64.50	0.50	9.619	9.3
SJG21-309	TRES_AMIGOS	Main	87.80	93.80	6.00	0.637	6.4
SJG21-309	TRES_AMIGOS	including	91.80	92.80	1.00	2.367	9.2
SJG22-310	TRES_AMIGOS	Main	23.50	25.70	2.20	1.707	5.3
SJG22-312	TRES_AMIGOS	Main	22.50	23.50	1.00	1.820	5.1
SJG22-312	TRES_AMIGOS	Main	65.00	67.00	2.00	1.707	6.7
SJG22-312	TRES_AMIGOS	including	65.00	65.50	0.50	5.043	20.4

P&E Mining Consultants Inc. Report No. 474 Page 166 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG22-312	TRES_AMIGOS	Main	132.85	139.00	6.15	0.961	4.7
SJG22-312	TRES_AMIGOS	including	132.85	133.35	0.50	9.826	9.9
SJG22-313	TRES_AMIGOS	Main	41.70	42.70	1.00	0.756	41.6
SJG22-313	TRES_AMIGOS	Main	164.80	165.30	0.50	9.614	17.1
SJG22-313	TRES_AMIGOS	Main	168.80	169.80	1.00	2.073	2.8
SJG22-313	TRES_AMIGOS	Main	201.30	202.30	1.00	1.157	13.5
SJG22-314	TRES_AMIGOS	Main	1.80	4.30	2.50	2.511	16.8
SJG22-314	TRES_AMIGOS	Main	10.50	13.50	3.00	13.585	19.6
SJG22-314	TRES_AMIGOS	including	10.50	12.50	2.00	20.200	28.3
SJG22-315	TRES_AMIGOS	Main	93.00	97.60	4.60	2.134	7.2
SJG22-315	TRES_AMIGOS	including	94.00	95.50	1.50	3.467	8.6
SJG22-317	TRES_AMIGOS	Main	151.00	157.00	6.00	4.258	6.1
SJG22-317	TRES_AMIGOS	including	155.00	156.00	1.00	15.900	6.1
SJG22-318	TRES_AMIGOS	Main	8.00	10.00	2.00	3.693	14.2
SJG22-318	TRES_AMIGOS	Main	63.00	65.50	2.50	2.754	11.7
SJG22-318	TRES_AMIGOS	including	63.50	64.00	0.50	6.158	16.6
SJG22-318	TRES_AMIGOS	including	98.00	99.00	1.00	35.200	6.1
SJG22-322	LA_UNION	Main	42.00	49.00	7.00	1.464	2.3
SJG22-322	LA_UNION	including	44.50	45.00	0.50	5.992	4.9
SJG22-323	LA_UNION	Main	43.50	46.00	2.50	3.690	13.6
SJG22-323	LA_UNION	including	45.50	46.00	0.50	15.900	50.4
SJG22-325	LA_UNION	Main	78.50	90.00	11.50	1.160	10.8
SJG22-325	LA_UNION	including	86.50	87.50	1.00	5.159	27.1
SJG22-326	LA_UNION	Main	29.00	45.00	16.00	4.143	3.6
SJG22-326	LA_UNION	including	37.00	38.00	1.00	57.100	9.7
SJG22-326	LA_UNION	Main	62.00	63.00	1.00	2.165	2.0
SJG22-326	LA_UNION	Main	105.00	105.50	0.50	15.200	14.1
SJG22-326	LA_UNION	Main	111.00	115.50	4.50	6.447	5.5
SJG22-326	LA_UNION	including	114.00	115.00	1.00	20.258	15.3
SJG22-327	LA_UNION	Main	114.00	119.80	5.80	2.501	3.1
SJG22-327	LA_UNION	including	118.00	118.80	0.80	15.300	10.0
SJG22-328	LA_UNION	Main	5.00	25.50	20.50	0.596	7.4
SJG22-328	LA_UNION	including	7.00	8.00	1.00	4.335	5.3
SJG22-329	LA_UNION	Main	20.00	37.50	17.50	0.635	2.3
SJG22-329	LA_UNION	including	20.00	21.50	1.50	4.104	0.4
SJG22-331	LA_UNION	Main	26.00	41.00	15.00	0.649	1.2
SJG22-331	LA_UNION	including	26.00	27.50	1.50	3.597	1.4
SJG22-332	LA_UNION	Main	0.00	3.00	3.00	2.003	5.6
SJG22-332	LA_UNION	Main	20.00	21.00	1.00	42.900	19.2

P&E Mining Consultants Inc. Report No. 474 Page 167 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG22-332	LA_UNION	Main	31.00	34.40	3.40	1.660	9.9
SJG22-332	LA_UNION	Main	98.00	120.00	22.00	2.022	6.7
SJG22-332	LA_UNION	including	108.00	109.50	1.50	20.998	29.2
SJG22-332	LA_UNION	Main	127.50	129.50	2.00	4.152	2.7
SJG22-335	LA_UNION	Main	122.00	126.00	4.00	1.161	4.5
SJG22-335	LA_UNION	including	122.50	123.00	0.50	6.760	29.3
SJG22-336	LA_UNION	Main	30.50	36.50	6.00	5.265	24.5
SJG22-336	LA_UNION	including	30.50	31.50	1.00	25.900	100.0
SJG22-336	LA_UNION	Main	131.90	134.40	2.50	1.630	3.0
SJG22-336	LA_UNION	including	133.40	133.90	0.50	6.990	10.8
SJG22-337	LA_UNION	Main	40.50	50.00	9.50	2.516	3.4
SJG22-337	LA_UNION	including	49.00	50.00	1.00	22.350	20.5
SJG22-337	LA_UNION	Main	61.80	64.50	2.70	2.711	7.7
SJG22-339	LA_UNION	Main	4.00	6.00	2.00	16.100	3.1
SJG22-341	LA_UNION	Main	9.00	15.00	6.00	0.914	4.3
SJG22-341	LA_UNION	including	9.00	10.50	1.50	2.711	2.7
SJG22-341	LA_UNION	Main	19.50	22.00	2.50	4.194	4.9
SJG22-341	LA_UNION	including	21.00	22.00	1.00	7.973	8.3
SJG22-341	LA_UNION	Main	79.35	83.50	4.15	1.107	0.9
SJG22-341	LA_UNION	including	79.35	80.00	0.65	5.994	1.3
SJG22-342	LA_UNION	Main	61.00	67.00	6.00	0.545	1.3
SJG22-342	LA_UNION	including	62.00	62.50	0.50	3.983	4.2
SJG22-343	LA_UNION	Main	74.00	77.50	3.50	1.664	1.6
SJG22-343	LA_UNION	including	75.50	76.00	0.50	4.781	1.8
SJG22-345	LA_UNION	Main	8.00	16.00	8.00	4.526	6.1
SJG22-345	LA_UNION	including	10.00	12.00	2.00	14.500	18.5
SJG22-346	LA_UNION	Main	6.00	10.00	4.00	36.589	32.7
SJG22-346	LA_UNION	including	6.00	8.00	2.00	72.500	50.4
SJG22-347	TRES_AMIGOS	Main	2.00	6.00	4.00	1.917	15.7
SJG22-347	TRES_AMIGOS	including	2.00	4.00	2.00	3.472	22.7
SJG22-349	TRES_AMIGOS	Main	14.65	16.35	1.70	1.928	25.6
SJG22-349	TRES_AMIGOS	including	15.15	15.85	0.70	4.249	53.2
SJG22-349	TRES_AMIGOS	Main	63.00	63.50	0.50	1.201	14.6
SJG22-350	TRES_AMIGOS	Main	12.00	13.50	1.50	3.092	7.6
SJG22-351	TRES_AMIGOS	Main	101.00	103.00	2.00	6.121	6.2
SJG22-352	TRES_AMIGOS	Main	17.30	23.00	5.70	3.068	7.0
SJG22-352	TRES_AMIGOS	including	17.30	18.30	1.00	12.900	13.5
SJG22-353	TRES_AMIGOS	Main	55.00	56.00	1.00	6.571	7.3
SJG22-354	LA_UNION	Main	0.00	2.00	2.00	2.125	3.5

P&E Mining Consultants Inc. Report No. 474 Page 168 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG22-360	LA_UNION	Main	45.00	54.50	9.50	7.346	8.3
SJG22-360	LA_UNION	including	54.00	54.50	0.50	122.200	18.4
SJG22-361	LA_UNION	Main	2.00	22.00	20.00	2.641	7.9
SJG22-361	LA_UNION	including	12.00	14.00	2.00	14.800	6.9
SJG22-363	LA_UNION	Main	2.00	6.00	4.00	2.128	5.6
SJG22-363	LA_UNION	Main	39.10	42.70	3.60	11.233	5.0
SJG22-363	LA_UNION	including	39.10	41.60	2.50	15.500	6.2
SJG22-365	LA_UNION	Main	28.50	34.00	5.50	1.700	3.3
SJG22-365	LA_UNION	including	28.50	29.00	0.50	15.500	5.0
SJG22-366	LA_UNION	Main	14.90	20.00	5.10	7.189	12.0
SJG22-366	LA_UNION	including	17.00	18.30	1.30	17.300	39.6
SJG22-370	LA_UNION	Main	0.00	7.00	7.00	1.599	2.8
SJG22-370	LA_UNION	including	6.00	7.00	1.00	8.378	9.2
SJG22-370	LA_UNION	Main	12.00	20.00	8.00	1.594	2.8
SJG22-370	LA_UNION	including	18.00	20.00	2.00	5.231	7.1
SJG22-371	LA_UNION	Main	0.00	10.00	10.00	3.788	15.1
SJG22-371	LA_UNION	including	8.00	10.00	2.00	17.500	61.5
SJG22-371	LA_UNION	Main	31.00	33.00	2.00	1.128	5.5
SJG22-372	LA_UNION	Main	0.00	3.50	3.50	1.732	4.5
SJG22-372	LA_UNION	Main	23.00	31.50	8.50	2.039	7.2
SJG22-372	LA_UNION	including	24.40	26.00	1.60	6.600	16.6
SJG22-375	LA_UNION	Main	22.00	24.00	2.00	3.239	1.8
SJG22-379	LA_UNION	Main	16.00	18.00	2.00	3.782	10.4
SJG22-379	LA_UNION	including	17.50	18.00	0.50	12.300	20.4
SJG22-379	LA_UNION	Main	57.80	58.30	0.50	0.483	24.6
SJG22-382	SAN_PABLO	Main	114.80	121.20	6.40	8.396	16.3
SJG22-382	SAN_PABLO	including	119.00	121.20	2.20	17.600	16.9
SJG22-383	LA_UNION	Main	16.95	17.45	0.50	17.200	6.8
SJG22-384	LA_UNION	Main	110.50	113.50	3.00	5.377	5.8
SJG22-384	LA_UNION	including	110.50	112.00	1.50	10.500	7.6
SJG22-385	SAN_PABLO	Main	69.00	74.00	5.00	5.952	7.9
SJG22-385	SAN_PABLO	including	70.80	71.80	1.00	28.400	24.4
SJG22-386	SAN_PABLO	Main	73.00	76.50	3.50	3.769	34.0
SJG22-386	SAN_PABLO	including	74.00	75.40	1.40	7.159	76.6
SJG22-388	LA_UNION	Main	93.00	101.70	8.70	1.205	4.0
SJG22-388	LA_UNION	including	96.60	97.50	0.90	8.767	6.2
SJG22-389	LA_UNION	Main	24.00	30.00	6.00	2.798	8.4
SJG22-389	LA_UNION	including	27.50	28.00	0.50	11.600	25.7
SJG22-390	LA_UNION	Main	12.50	18.00	5.50	3.876	2.6

P&E Mining Consultants Inc. Report No. 474 Page 169 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG22-390	LA_UNION	including	14.00	16.00	2.00	9.600	2.6
SJG22-391	LA_UNION	Main	104.00	133.80	29.80	0.437	7.0
SJG22-391	LA_UNION	including	104.00	104.70	0.70	4.545	1.9
SJG22-393	LA_UNION	Main	93.00	94.50	1.50	18.300	15.0
SJG22-394	LA_UNION	Main	66.50	83.00	16.50	2.109	2.4
SJG22-394	LA_UNION	including	76.90	77.40	0.50	60.300	18.1
SJG22-395	LA_UNION	Main	41.50	50.00	8.50	6.694	3.9
SJG22-395	LA_UNION	including	46.15	48.80	2.65	20.051	6.4
SJG22-400	LA_UNION	Main	80.95	118.00	37.05	0.604	5.8
SJG22-400	LA_UNION	including	112.50	114.00	1.50	4.827	7.6
SJG22-402	TEPEH-CECEÑA	Main	346.20	346.70	0.50	2.348	3.1
SJG22-407	SAN_PABLO_SUR	Main	70.50	71.50	1.00	2.406	38.4
SJG22-408	SAN_PABLO_SUR	Main	66.00	69.00	3.00	10.251	14.7
SJG22-409	SAN_PABLO_SUR	including	66.00	67.00	1.00	25.900	20.9
SJG22-409	SAN_PABLO_SUR	Main	46.90	63.00	16.10	1.401	4.4
SJG22-409	SAN_PABLO_SUR	including	48.00	49.80	1.80	7.304	17.2
SJG22-410	SAN_PABLO_SUR	Main	24.00	28.00	4.00	4.144	9.5
SJG22-410	SAN_PABLO_SUR	Main	26.35	28.00	1.65	8.647	15.5
SJG22-411	SAN_PABLO_SUR	Main	46.00	56.00	10.00	1.356	3.9
SJG22-411	SAN_PABLO_SUR	including	46.00	47.00	1.00	7.585	8.7
SJG22-412	PALOS_CHINOS	Main	44.90	45.70	0.80	1.609	12.2
SJG22-412	PALOS_CHINOS	Main	206.00	213.00	7.00	1.403	3.1
SJG22-412	PALOS_CHINOS	including	209.25	210.00	0.75	6.107	9.7
SJG22-415	PALOS_CHINOS	Main	45.00	52.00	7.00	1.708	2.6
SJG22-415	PALOS_CHINOS	including	47.00	48.00	1.00	5.279	3.6
SJG22-415	PALOS_CHINOS	Main	87.90	96.00	8.10	0.948	1.2
SJG22-415	PALOS_CHINOS	Main	119.00	121.05	2.05	2.453	2.4
SJG22-416	PALOS_CHINOS	including	120.30	121.05	0.75	5.846	3.9
SJG22-416	SAN_PABLO	Main	128.00	130.00	2.00	0.951	0.7
SJG22-416	SAN_PABLO	Main	188.50	200.00	11.50	0.893	5.3
SJG22-416	SAN_PABLO	including	197.50	200.00	2.50	2.939	3.7
SJG22-419	TEPEH-CECEÑA	Main	123.50	124.00	0.50	1.817	3.5
SJG22-420	SAN_PABLO_SUR	Main	48.00	50.00	2.00	16.700	14.8
SJG22-421	SAN_PABLO_SUR	Main	101.75	108.20	6.45	119.303	25.1
SJG22-421	SAN_PABLO_SUR	including	101.75	104.00	2.25	335.507	50.8

P&E Mining Consultants Inc. Report No. 474 Page 170 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG21·299	213,599	2,897,929	618.72	179.4	Tres Amigos	128	-65
SJG21·300	213,563	2,897,959	622.23	150.9	Tres Amigos	0	-90
SJG21·301	213,649	2,897,952	614.64	181.6	Tres Amigos	128	-60
SJG21·302	213,648	2,897,953	614.65	163.6	Tres Amigos	0	-90
SJG21·303	213,565	2,897,915	620.84	145.7	Tres Amigos	0	-90
SJG21·304	213,686	2,898,084	621.57	236.3	Tres Amigos	128	-62
SJG21·305	213,686	2,898,084	621.70	227.3	Tres Amigos	0	-90
SJG21·306	213,685	2,898,050	617.18	17.0	Tres Amigos	146	-67
SJG21·307	213,687	2,898,047	617.18	210.0	Tres Amigos	146	-67
SJG21·308	213,687	2,898,047	617.17	204.8	Tres Amigos	146	-58
SJG21·309	213,663	2,898,004	614.35	188.9	Tres Amigos	128	-75
SJG21·310	213,663	2,898,005	614.55	46.7	Tres Amigos	128	-60
SJG21·311	213,658	2,898,001	614.55	14.9	Tres Amigos	0	-90
SJG21·312	213,668	2,898,000	614.64	203.4	Tres Amigos	0	-90
SJG21·313	213,674	2,898,011	615.21	220.3	Tres Amigos	128	-45
SJG21·314	213,674	2,898,012	615.21	14.1	Tres Amigos	0	-90
SJG21·315	213,685	2,897,956	616.40	200.3	Tres Amigos	0	-90
SJG21·316	213,686	2,897,955	616.41	185.5	Tres Amigos	128	-75
SJG21·317	213,605	2,897,894	609.51	179.1	Tres Amigos	128	-65
SJG21·318	213,638	2,897,889	611.13	166.7	Tres Amigos	128	-45
SJG21·319	213,017	2,896,628	702.05	47.0	La Union	112	-60
SJG21·320	213,014	2,896,668	706.69	70.9	La Union	112	-60
SJG21·321	212,911	2,896,916	724.10	113.0	La Union	112	-60
SJG21·322	212,976	2,896,952	730.75	142.8	La Union	112	-50
SJG21·323	213,012	2,896,965	739.12	158.0	La Union	112	-60
SJG21·324	213,036	2,896,758	738.54	142.9	La Union	112	-60
SJG21·325	212,985	2,896,830	740.75	173.0	La Union	112	-60
SJG21·326	212,978	2,896,857	740.97	143.0	La Union	112	-65
SJG21·327	213,028	2,896,932	739.27	181.4	La Union	112	-50
SJG21·328	212,977	2,896,710	693.07	139.5	La Union	112	-50
SJG21·329	212,983	2,896,676	692.00	163.9	La Union	112	-60
SJG21·330	212,989	2,896,640	687.33	185.0	La Union	112	-60
SJG21·331	212,697	2,896,644	683.94	168.5	La Union	112	-60
SJG21·332	212,907	2,896,669	680.80	200.0	La Union	112	-60
SJG21·333	212,859	2,896,732	674.38	204.5	La Union	112	-75
SJG21·334	212,841	2,896,709	667.01	211.5	La Union	112	-50
SJG21·335	212,702	2,896,625	623.65	217.5	La Union	130	-6
SJG21·336	212,726	2,896,709	621.18	221.0	La Union	130	-60

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG21·337	213,048	2,896,817	761.18	151.5	La Union	112	-50
SJG21·338	213,062	2,896,869	760.60	83.3	La Union	0	-90
SJG21·339	213,100	2,896,699	760.95	81.0	La Union	112	-60
SJG21·340	213,019	2,896,722	761.31	82.5	La Union	112	-60
SJG21·341	213,101	2,896,769	764.91	126.0	La Union	112	-60
SJG21·342	213,064	2,896,722	749.80	131.0	La Union	112	-60
SJG21·343	213,073	2,896,751	756.49	129.5	La Union	112	-60
SJG21·344	213,094	2,896,815	771.83	120.5	La Union	112	-60
SJG21·345	213,140	2,896,792	779.62	177.5	La Union	112	-60
SJG21·346	213,136	2,896,763	775.66	138.5	La Union	112	-60
SJG21·347	213,630	2,897,929	610.42	168.5	Tres Amigos	0	-90
SJG21·348	213,631	2,897,928	610.51	200.0	Tres Amigos	128	-63
SJG21·349	213,631	2,897,927	610.56	207.0	Tres Amigos	128	-45
SJG21·350	213,667	2,897,951	612.34	197.0	Tres Amigos	128	-75
SJG21·351	213,668	2,897,950	612.34	187.5	Tres Amigos	308	-80
SJG21·352	213,682	2,897,958	616.25	200.0	Tres Amigos	308	-70
SJG21·353	213,647	2,897,952	614.60	56.0	Tres Amigos	308	-60
SJG21·354	213,155	2,896,835	770.17	117.0	La Union	112	-60
SJG21·355	213,105	2,896,856	765.04	147.0	La Union	112	-60
SJG21·356	213,056	2,896,976	735.23	150.0	La Union	112	-60
SJG21·357	213,059	2,896,967	735.36	125.5	La Union	112	-60
SJG21·358	213,170	2,896,785	785.46	168.5	La Union	112	-60
SJG21·359	213,200	2,896,812	785.04	108.0	La Union	112	-60
SJG21·360	213,078	2,896,912	747.61	54.5	La Union	112	-67
SJG21·361	213,221	2,896,962	753.75	84.5	La Union	112	-60
SJG21·362	213,210	2,896,919	752.20	108.0	La Union	112	-60
SJG21·363	213,150	2,896,918	743.58	96.0	La Union	112	-60
SJG21·364	213,136	2,896,882	753.11	99.0	La Union	112	-60
SJG21·365	213,164	2,896,934	740.86	81.0	La Union	112	-60
SJG21·366	213,111	2,896,930	742.52	117.5	La Union	112	-60
SJG21·367	213,197	2,897,004	740.94	81.0	La Union	112	-60
SJG21·368	213,192	2,897,037	731.65	51.5	La Union	112	-60
SJG21·369	213,240	2,897,020	743.93	42.0	La Union	112	-60
SJG21·370	213,191	2,896,883	757.67	72.0	La Union	112	-60
SJG21·371	213,174	2,896,868	759.09	57.0	La Union	112	-50
SJG21·372	213,190	2,896,963	749.03	96.0	La Union	112	-60
SJG21·373	213,117	2,896,999	727.19	96.5	La Union	112	-60
SJG21·374	213,069	2,897,016	726.28	144.0	La Union	112	-60

P&E Mining Consultants Inc. Report No. 474 Page 172 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG21·375	213,089	2,897,039	720.82	120.0	La Union	112	-60
SJG21·376	213,132	2,897,019	719.33	96.0	La Union	112	-60
SJG21·377	213,142	2,897,052	713.09	96.0	La Union	112	-60
SJG21·378	213,052	2,897,097	721.45	165.5	La Union	112	-70
SJG21·379	213,067	2,897,123	712.74	144.0	La Union	112	-60
SJG21·380	213,119	2,897,120	714.39	87.0	La Union	112	-60
SJG21·381	213,097	2,897,147	710.04	84.5	La Union	112	-60
SJG21·382	212,846	2,897,177	710.90	121.2	La Union	112	-50
SJG21·383	213,009	2,896,730	714.38	180.0	La Union	112	-50
SJG21·384	212,950	2,896,837	727.15	198.0	La Union	112	-50
SJG21·385	212,972	2,897,080	733.33	192.5	La Union	112	-60
SJG21·386	212,948	2,897,064	728.96	225.5	La Union	112	-60
SJG21·387	213,001	2,896,960	738.91	151.0	La Union	0	-90
SJG21·388	212,976	2,896,996	737.37	177.0	La Union	112	-60
SJG21·389	213,147	2,896,837	770.14	192.5	La Union	292	-75
SJG21·390	213,030	2,896,841	763.05	79.5	La Union	112	-50
SJG21·391	212,864	2,896,920	713.11	179.0	La Union	112	-60
SJG21·392	212,831	2,896,979	707.69	162.0	La Union	112	-55
SJG21·393	212,781	2,897,000	688.92	94.5	La Union	112	-60
SJG21·394	213,083	2,896,951	736.82	150.0	La Union	112	-60
SJG21·395	213,131	2,896,957	738.64	114.0	La Union	112	-60
SJG21·396	212,935	2,896,932	722.98	216.5	La Union	112	-60
SJG21·397	213,016	2,896,886	743.91	178.0	La Union	112	-83
SJG21·398	212,950	2,897,252	669.98	123.0	La Union	112	-66
SJG21·399	212,928	2,897,277	662.31	120.0	La Union	112	-45
SJG21·400	213,061	2,896,880	757.44	175.0	La Union	0	-90
SJG21·401	213,172	2,896,881	742.93	89.0	La Union	112	-60
SJG21·402	212,800	2,897,788	730.00	409.5	Tep Ceceña	112	-50
SJG21·403	212,870	2,897,856	733.00	484.5	Tep Ceceña	112	-50
SJG21·404	212,871	2,897,854	733.00	457.5	Tep Ceceña	112	-60
SJG21·405	212,865	2,897,701	734.00	204.0	Tep Ceceña	112	-45
SJG21·406	212,866	2,897,701	734.00	400.5	Tep Ceceña	112	-60
SJG21·407	212,623	2,896,719	610.05	201.0	La Union	127	-45
SJG21·408	212,624	2,896,721	609.95	123.0	La Union	100	-45
SJG21·409	212,734	2,896,706	623.08	87.0	La Union	270	-60
SJG21·410	212,736	2,896,704	623.27	49.0	La Union	0	-90
SJG21·411	212,735	2,896,703	623.10	189.0	La Union	228	-60
SJG21·412	212,951	2,896,350	651.20	255.0	Palos Chinos	60	-45

P&E Mining Consultants Inc. Report No. 474 Page 173 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2021-2022 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elevation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG21·413	212,959	2,896,210	605.41	247.5	Palos Chinos	60	-50
SJG21·414	212,959	2,896,209	605.37	90.5	Palos Chinos	60	-70
SJG21·415	212,950	2,896,350	651.11	209.0	Palos Chinos	60	-70
SJG21·416	212,798	2,897,264	672.88	269.5	San Palo	0	-90
SJG21·417	212,742	2,897,353	676.35	308.5	Tep Ceceña	0	-90
SJG21·418	212,883	2,897,576	730.10	433.5	Tep Ceceña	112	-45
SJG21·419	212,807	2,897,448	727.79	352.5	Tep Ceceña	112	-60
SJG21·420	212,637	2,896,807	642.29	162.0	La Union	100	-45
SJG21·421	212,635	2,896,807	642.49	254.0	La Union	0	-90

7.2.4 2023-2024 Drilling Program

In the 2023-2024 program, 100 drill holes were completed totaling 27,509 m (Tables 7.30 and 7.31). The areas drilled were San Pablo (45 drill holes totaling 12,525 m; includes 8 drill holes totaling 1,854 m at Palos Chinos, the La Union- Mochomera Area (54 drill holes totaling 14,715 m), and at Tres Amigos (1 drill hole totaling 270 m) (see Figure 7.14 above and Tables 7.30 and 7.31). Cross sectional views of the drilling results for Palos Chinos are shown in Figures 7.15 to 7.18 and for Mochomera in Figure 7.19 to 7.21.

P&E Mining Consultants Inc. Report No. 474 Page 174 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-422	SAN_PABLO_SUR	Main	92.00	97.50	5.50	4.205	11.8
SJG23-422	SAN_PABLO_SUR	including	92.00	94.00	2.00	9.717	23.2
SJG23-423	SAN_PABLO_SUR	Main	114.70	121.00	6.30	1.256	8.3
SJG23-423	SAN_PABLO_SUR	including	120.45	121.00	0.55	5.368	3.0
SJG23-424	SAN_PABLO_SUR	Main	127.50	128.95	1.45	2.164	14.2
SJG23-424	SAN_PABLO_SUR	including	127.50	128.35	0.85	3.634	1.2
SJG23-425	SAN_PABLO_SUR	Main	110.80	119.00	8.20	1.507	13.9
SJG23-425	SAN_PABLO_SUR	including	116.00	117.80	1.80	4.023	38.3
SJG23-426	SAN_PABLO_SUR	Main	115.00	121.00	6.00	9.047	5.7
SJG23-426	SAN_PABLO_SUR	including	116.80	117.50	0.70	74.300	31.8
SJG23-426	SAN_PABLO_SUR	Main	225.00	227.50	2.50	3.378	1.3
SJG23-426	SAN_PABLO_SUR	including	226.50	227.50	1.00	8.080	2.9
SJG23-428	SAN_PABLO_SUR	Main	108.00	108.50	0.50	3.690	33.2
SJG23-429	SAN_PABLO_SUR	Main	97.00	99.00	2.00	27.000	47.3
SJG23-429	SAN_PABLO_SUR	Main	144.00	145.20	1.20	33.245	21.9
SJG23-429	SAN_PABLO_SUR	including	144.50	145.20	0.70	56.800	36.5
SJG23-430	SAN_PABLO_SUR	Main	144.95	146.30	1.35	1.831	19.8
SJG23-432	SAN_PABLO_SUR	Main	257.40	258.00	0.60	5.986	10.7
SJG23-433	SAN_PABLO_SUR	Main	132.00	134.30	2.30	3.198	7.1
SJG23-433	SAN_PABLO_SUR	including	132.90	133.80	0.90	7.796	12.3
SJG23-434	SAN_PABLO_DOWN_DIP	Main	177.60	178.60	1.00	2.788	6.4
SJG23-434	SAN_PABLO_DOWN_DIP	including	178.10	178.60	0.50	5.269	7.5
SJG23-436	SAN_PABLO_DOWN_DIP	Main	137.35	152.50	15.15	0.475	2.5
SJG23-436	SAN_PABLO_DOWN_DIP	including	144.70	145.40	0.70	3.845	29.2
SJG23-438	SAN_PABLO_DOWN_DIP	Main	184.20	184.70	0.50	1.116	6.1

P&E Mining Consultants Inc. Report No. 474 Page 175 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-438	SAN_PABLO_DOWN_DIP	Main	236.00	240.00	4.00	1.816	2.7
SJG23-438	SAN_PABLO_DOWN_DIP	including	239.50	240.00	0.50	12.900	8.3
SJG23-439	SAN_PABLO_DOWN_DIP	Main	172.40	173.10	0.70	0.814	28.6
SJG23-439	SAN_PABLO_DOWN_DIP	Main	221.65	222.15	0.50	3.341	100.0
SJG23-444	SAN_PABLO_DOWN_DIP	Main	136.00	138.55	2.55	7.191	14.1
SJG23-444	SAN_PABLO_DOWN_DIP	including	137.15	138.55	1.40	12.900	24.2
SJG23-445	SAN_PABLO_DOWN_DIP	Main	285.80	289.00	3.20	1.073	0.9
SJG23-445	SAN_PABLO_DOWN_DIP	including	285.80	286.30	0.50	5.355	0.5
SJG23-446	SAN_PABLO_DOWN_DIP	Main	335.75	336.35	0.60	1.673	9.4
SJG23-448	SAN_PABLO_DOWN_DIP	Main	381.00	381.60	0.60	5.583	19.5
SJG23-449	SAN_PABLO_SUR	Main	248.35	253.00	4.65	2.261	3.2
SJG23-449	SAN_PABLO_SUR	including	250.80	253.00	2.20	4.541	3.3
SJG23-450	SAN_PABLO_SUR	Main	225.80	226.30	0.50	0.334	25.9
SJG23-450	SAN_PABLO_SUR	Main	285.00	309.00	24.00	0.440	1.0
SJG23-450	SAN_PABLO_SUR	including	290.50	291.50	1.00	5.323	9.1
SJG23-451	SAN_PABLO_SUR	Main	252.00	258.00	6.00	0.469	0.4
SJG23-451	SAN_PABLO_SUR	Main	288.00	292.50	4.50	0.444	0.7
SJG23-452	SAN_PABLO_SUR	Main	223.00	231.20	8.20	0.785	1.6
SJG23-452	SAN_PABLO_SUR	including	223.90	224.40	0.50	7.216	3.1
SJG23-452	SAN_PABLO_SUR	Main	247.00	257.00	10.00	0.534	0.2
SJG23-452	SAN_PABLO_SUR	Main	261.00	269.00	8.00	0.905	0.3
SJG23-452	SAN_PABLO_SUR	Main	285.00	287.00	2.00	0.938	2.2
SJG23-453	SAN_PABLO_SUR	Main	20.00	22.00	2.00	0.765	0.2
SJG23-453	SAN_PABLO_SUR	Main	26.00	30.00	4.00	0.209	0.2
SJG23-453	SAN_PABLO_SUR	Main	181.00	183.00	2.00	0.762	18.2
SJG23-453	SAN_PABLO_SUR	Main	258.00	260.00	2.00	0.857	0.8

P&E Mining Consultants Inc. Report No. 474 Page 176 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-453	SAN_PABLO_SUR	Main	266.00	267.00	1.00	3.864	2.2
SJG23-453	SAN_PABLO_SUR	Main	492.00	492.50	0.50	4.859	8.3
SJG23-454	SAN_PABLO_SUR	Main	125.00	125.50	0.50	1.286	2.7
SJG23-454	SAN_PABLO_SUR	Main	189.00	195.00	6.00	0.986	0.7
SJG23-455	SAN_PABLO_SUR	Main	39.90	42.00	2.10	2.728	5.7
SJG23-455	SAN_PABLO_SUR	including	40.50	42.00	1.50	3.716	3.7
SJG23-455	SAN_PABLO_SUR	Main	70.00	72.00	2.00	2.381	1.8
SJG23-455	SAN_PABLO_SUR	Main	168.00	171.30	3.30	0.727	12.6
SJG23-455	SAN_PABLO_SUR	including	168.00	169.40	1.40	1.071	5.2
SJG23-456	SAN_PABLO_SUR	Main	53.70	54.20	0.50	0.514	31.8
SJG23-456	SAN_PABLO_SUR	Main	70.65	71.15	0.50	3.907	19.3
SJG23-456	SAN_PABLO_SUR	Main	76.40	76.90	0.50	1.526	24.2
SJG23-456	SAN_PABLO_SUR	Main	138.00	140.00	2.00	0.353	2.3
SJG23-456	SAN_PABLO_SUR	Main	158.60	159.10	0.50	1.110	0.7
SJG23-457	SAN_PABLO_SUR	Main	98.50	108.00	9.50	0.973	6.7
SJG23-457	SAN_PABLO_SUR	Main	138.00	142.00	4.00	3.788	4.8
SJG23-457	SAN_PABLO_SUR	including	138.00	140.00	2.00	5.684	8.2
SJG23-457	SAN_PABLO_SUR	Main	187.00	199.00	12.00	0.274	1.3
SJG23-457	SAN_PABLO_SUR	Main	205.00	227.40	22.40	0.756	5.3
SJG23-457	SAN_PABLO_SUR	including	212.00	214.50	2.50	2.273	11.1
SJG23-458	SAN_PABLO_SUR	Main	91.00	96.60	5.60	1.371	21.8
SJG23-458	SAN_PABLO_SUR	including	95.40	96.60	1.20	5.069	97.4
SJG23-458	SAN_PABLO_SUR	Main	206.00	220.00	14.00	0.484	5.2
SJG23-459	LA_MOCHOMERA	Main	7.50	14.00	6.50	0.440	7.4
SJG23-459	LA_MOCHOMERA	Main	21.60	22.10	0.50	1.363	23.8
SJG23-459	LA_MOCHOMERA	Main	59.50	67.00	7.50	8.047	11.6

P&E Mining Consultants Inc. Report No. 474 Page 177 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-459	LA_MOCHOMERA	including	62.70	65.30	2.60	22.200	30.3
SJG23-459	LA_MOCHOMERA	Main	71.00	75.00	4.00	1.004	2.5
SJG23-459	LA_MOCHOMERA	Main	90.00	94.00	4.00	0.673	6.9
SJG23-459	LA_MOCHOMERA	Main	98.00	102.00	4.00	0.292	3.6
SJG23-460	LA_MOCHOMERA	Main	57.20	57.70	0.50	0.687	7.2
SJG23-460	LA_MOCHOMERA	Main	75.00	79.50	4.50	0.927	2.2
SJG23-460	LA_MOCHOMERA	Main	83.50	86.00	2.50	0.372	4.5
SJG23-460	LA_MOCHOMERA	Main	88.85	103.00	14.15	1.309	3.8
SJG23-460	LA_MOCHOMERA	including	93.00	94.00	1.00	5.931	10.7
SJG23-460	LA_MOCHOMERA	including	94.70	95.30	0.60	5.369	12.2
SJG23-461	LA_MOCHOMERA	Main	4.00	8.00	4.00	8.821	3.1
SJG23-461	LA_MOCHOMERA	including	4.00	6.00	2.00	16.800	5.0
SJG23-461	LA_MOCHOMERA	Main	100.40	107.00	6.60	8.111	10.9
SJG23-461	LA_MOCHOMERA	including	100.40	101.60	1.20	15.300	27.8
SJG23-461	LA_MOCHOMERA	AND	103.80	105.40	1.60	18.600	13.1
SJG23-461	LA_MOCHOMERA	Main	291.00	293.00	2.00	3.027	2.9
SJG23-462	LA_MOCHOMERA	Main	109.50	110.00	0.50	4.314	30.8
SJG23-462	LA_MOCHOMERA	Main	178.95	184.00	5.05	16.741	8.4
SJG23-462	LA_MOCHOMERA	including	178.95	180.85	1.90	42.418	20.7
SJG23-463	LA_MOCHOMERA	Main	119.00	125.00	6.00	4.284	2.6
SJG23-463	LA_MOCHOMERA	including	120.00	121.20	1.20	7.182	7.1
SJG23-463	LA_MOCHOMERA	AND	123.00	125.00	2.00	7.320	1.3
SJG23-463	LA_MOCHOMERA	Main	148.50	149.00	0.50	2.025	0.6
SJG23-463	LA_MOCHOMERA	Main	219.25	225.00	5.75	1.141	0.6
SJG23-464	LA_MOCHOMERA	Main	263.00	269.00	6.00	2.606	1.5
SJG23-464	LA_MOCHOMERA	including	263.00	267.00	4.00	3.717	2.1

P&E Mining Consultants Inc. Report No. 474 Page 178 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-465	LA_MOCHOMERA	Main	147.00	147.50	0.50	2.291	8.0
SJG23-465	LA_MOCHOMERA	Main	172.00	182.00	10.00	2.022	5.2
SJG23-465	LA_MOCHOMERA	including	173.10	175.20	2.10	7.016	6.3
SJG23-466	LA_MOCHOMERA	Main	36.50	38.50	2.00	0.296	4.3
SJG23-466	LA_MOCHOMERA	Main	62.00	64.00	2.00	0.954	4.0
SJG23-466	LA_MOCHOMERA	Main	107.50	108.00	0.50	0.474	4.5
SJG23-466	LA_MOCHOMERA	Main	116.00	117.50	1.50	0.608	4.7
SJG23-466	LA_MOCHOMERA	Main	177.00	177.65	0.65	0.279	1.6
SJG23-466	LA_MOCHOMERA	Main	189.80	193.15	3.35	0.452	2.2
SJG23-466	LA_MOCHOMERA	Main	226.00	230.00	4.00	0.415	0.4
SJG23-466	LA_MOCHOMERA	Main	248.30	250.90	2.60	1.254	8.0
SJG23-466	LA_MOCHOMERA	Main	260.20	262.00	1.80	0.337	0.3
SJG23-467	LA_MOCHOMERA	Main	55.50	56.00	0.50	1.260	8.4
SJG23-467	LA_MOCHOMERA	Main	82.00	84.05	2.05	3.758	6.9
SJG23-467	LA_MOCHOMERA	including	83.20	84.05	0.85	8.959	14.4
SJG23-467	LA_MOCHOMERA	Main	127.20	134.20	7.00	2.106	2.0
SJG23-467	LA_MOCHOMERA	including	129.30	130.10	0.80	8.775	6.9
SJG23-467	LA_MOCHOMERA	including	133.50	134.20	0.70	5.442	3.1
SJG23-468	LA_MOCHOMERA	Main	25.00	30.00	5.00	2.014	3.8
SJG23-468	LA_MOCHOMERA	including	26.80	28.00	1.20	4.402	3.8
SJG23-468	LA_MOCHOMERA	Main	156.85	162.45	5.60	9.419	5.4
SJG23-468	LA_MOCHOMERA	including	156.85	160.10	3.25	15.202	7.6
SJG23-469	LA_MOCHOMERA	Main	33.00	37.00	4.00	3.544	10.8
SJG23-469	LA_MOCHOMERA	including	33.00	35.25	2.25	5.547	17.4
SJG23-469	LA_MOCHOMERA	Main	40.50	41.00	0.50	1.788	6.3
SJG23-469	LA_MOCHOMERA	Main	74.25	75.85	1.60	3.559	12.3

P&E Mining Consultants Inc. Report No. 474 Page 179 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-469	LA_MOCHOMERA	Main	126.00	132.00	6.00	4.010	6.0
SJG23-469	LA_MOCHOMERA	including	127.60	130.75	3.15	6.898	9.0
SJG23-469	LA_MOCHOMERA	Main	147.60	152.00	4.40	1.015	1.8
SJG23-469	LA_MOCHOMERA	Main	224.00	226.00	2.00	1.830	0.6
SJG23-469	LA_MOCHOMERA	Main	266.00	270.00	4.00	1.049	1.2
SJG23-470	LA_MOCHOMERA	Main	27.40	33.20	5.80	5.891	7.3
SJG23-470	LA_MOCHOMERA	including	27.40	28.00	0.60	34.600	20.3
SJG23-470	LA_MOCHOMERA	including	32.40	33.20	0.80	4.681	8.3
SJG23-470	LA_MOCHOMERA	Main	59.00	71.10	12.10	1.298	2.8
SJG23-470	LA_MOCHOMERA	including	60.55	61.40	0.85	8.131	6.9
SJG23-470	LA_MOCHOMERA	including	70.50	71.10	0.60	6.491	10.2
SJG23-470	LA_MOCHOMERA	Main	81.65	87.00	5.35	5.148	6.3
SJG23-470	LA_MOCHOMERA	including	82.70	83.25	0.55	11.700	25.6
SJG23-470	LA_MOCHOMERA	AND	84.35	87.00	2.65	6.719	4.8
SJG23-470	LA_MOCHOMERA	Main	102.50	103.00	0.50	1.560	10.6
SJG23-470	LA_MOCHOMERA	Main	132.00	138.00	6.00	3.383	3.5
SJG23-470	LA_MOCHOMERA	including	134.30	136.00	1.70	8.662	9.3
SJG23-470	LA_MOCHOMERA	Main	257.00	266.00	9.00	0.598	0.5
SJG23-470	LA_MOCHOMERA	including	259.00	259.90	0.90	3.450	0.9
SJG23-473	LA_MOCHOMERA	Main	65.15	77.90	12.75	4.600	4.4
SJG23-473	LA_MOCHOMERA	including	65.15	66.30	1.15	17.700	5.8
SJG23-473	LA_MOCHOMERA	including	69.15	72.30	3.15	3.573	3.4
SJG23-473	LA_MOCHOMERA	including	73.30	76.75	3.45	4.965	7.2
SJG23-473	LA_MOCHOMERA	Main	88.20	91.20	3.00	3.933	24.6
SJG23-473	LA_MOCHOMERA	including	88.20	91.20	3.00	3.933	24.6
SJG23-484	LA_MOCHOMERA	Main	115.70	116.80	1.10	2.911	3.9

P&E Mining Consultants Inc. Report No. 474 Page 180 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG23-484	LA_MOCHOMERA	including	116.25	116.75	0.50	4.780	0.5
SJG23-484	LA_MOCHOMERA	Main	131.00	131.50	0.50	9.076	10.9
SJG23-484	LA_MOCHOMERA	including	131.00	131.50	0.50	9.076	10.9
SJG24-501	LA_MOCHOMERA	Main	98.30	103.00	4.70	8.823	25.6
SJG24-501	LA_MOCHOMERA	including	100.20	101.90	1.70	19.082	45.7
SJG24-501	LA_MOCHOMERA	Main	281.35	281.85	0.50	2.326	2.2
SJG24-502	LA_MOCHOMERA	Main	0.00	3.70	3.70	2.160	7.4
SJG24-502	LA_MOCHOMERA	Main	65.00	67.50	2.50	5.383	6.8
SJG24-502	LA_MOCHOMERA	including	66.00	67.50	1.50	8.798	9.9
SJG24-502	LA_MOCHOMERA	Main	113.00	115.50	2.50	0.994	2.8
SJG24-502	LA_MOCHOMERA	Main	120.80	122.15	1.35	13.218	26.9
SJG24-502	LA_MOCHOMERA	including	121.50	122.15	0.65	25.600	51.7
SJG24-503	LA_MOCHOMERA	Main	38.00	41.00	3.00	11.153	5.8
SJG24-503	LA_MOCHOMERA	including	38.00	39.00	1.00	10.800	5.9
SJG24-503	LA_MOCHOMERA	including	40.00	41.00	1.00	22.600	9.9
SJG24-503	LA_MOCHOMERA	Main	112.00	126.50	14.50	2.176	5.3
SJG24-503	LA_MOCHOMERA	including	124.00	126.50	2.50	9.983	24.7
SJG24-503	LA_MOCHOMERA	Main	188.00	196.00	8.00	0.928	2.4
SJG24-504	PALOS_CHINOS	Main	0.00	2.00	2.00	1.181	1.0
SJG24-504	PALOS_CHINOS	Main	144.80	145.30	0.50	5.170	21.7
SJG24-504	PALOS_CHINOS	Main	202.00	208.00	6.00	1.053	0.3
SJG24-504	PALOS_CHINOS	Main	241.00	243.00	2.00	1.892	0.2
SJG24-505	LA_MOCHOMERA	Main	134.00	136.00	2.00	0.995	1.5
SJG24-506	PALOS_CHINOS	Main	42.00	43.50	1.50	2.428	2.1
SJG24-506	PALOS_CHINOS	Main	52.70	56.75	4.05	0.940	2.2
SJG24-506	PALOS_CHINOS	Main	89.00	91.70	2.70	0.858	10.0

P&E Mining Consultants Inc. Report No. 474 Page 181 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG24-507	LA_MOCHOMERA	Main	14.00	21.00	7.00	0.875	3.7
SJG24-507	LA_MOCHOMERA	Main	130.00	133.05	3.05	1.215	3.0
SJG24-507	LA_MOCHOMERA	Main	172.00	174.50	2.50	0.896	6.2
SJG24-508	PALOS_CHINOS	Main	38.00	42.50	4.50	3.556	1.6
SJG24-508	PALOS_CHINOS	including	39.10	41.00	1.90	7.473	2.7
SJG24-509	LA_MOCHOMERA	Main	0.00	3.00	3.00	1.124	1.6
SJG24-509	LA_MOCHOMERA	Main	65.00	72.25	7.25	1.250	3.0
SJG24-510	LA_MOCHOMERA	Main	90.65	97.20	6.55	3.042	6.2
SJG24-510	LA_MOCHOMERA	including	95.30	97.20	1.90	7.387	13.6
SJG24-510	LA_MOCHOMERA	Main	196.30	203.90	7.60	13.926	5.1
SJG24-510	LA_MOCHOMERA	including	196.30	198.30	2.00	51.900	18.4
SJG24-510	LA_MOCHOMERA	Main	212.00	227.00	15.00	3.916	2.6
SJG24-510	LA_MOCHOMERA	including	215.90	221.00	5.10	6.182	2.7
SJG24-510	LA_MOCHOMERA	including	223.00	225.00	2.00	6.263	6.0
SJG24-511	LA_MOCHOMERA	Main	88.50	90.00	1.50	1.062	2.7
SJG24-511	LA_MOCHOMERA	Main	152.00	158.00	6.00	5.519	28.9
SJG24-511	LA_MOCHOMERA	including	156.00	158.00	2.00	15.191	80.1
SJG24-512	LA_MOCHOMERA	Main	62.00	64.50	2.50	0.799	4.8
SJG24-512	LA_MOCHOMERA	Main	111.20	111.75	0.55	11.400	9.9
SJG24-513	LA_MOCHOMERA	Main	40.25	40.75	0.50	0.369	6.0
SJG24-513	LA_MOCHOMERA	Main	59.25	60.45	1.20	3.545	6.9
SJG24-514	LA_MOCHOMERA	Main	42.05	45.05	3.00	4.227	5.7
SJG24-514	LA_MOCHOMERA	including	42.05	43.05	1.00	8.250	11.0
SJG24-514	LA_MOCHOMERA	Main	94.15	94.80	0.65	5.975	4.5
SJG24-515	LA_MOCHOMERA	Main	49.00	53.40	4.40	3.513	9.2
SJG24-515	LA_MOCHOMERA	including	52.00	53.40	1.40	6.342	9.6

P&E Mining Consultants Inc. Report No. 474 Page 182 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7.<br>2023-2024 Selected Assay Intercepts
Drill Hole ID	Mineralized<br><br>Zone	Intercept	From<br><br>(m)	To<br><br>(m)	Interval<br><br>(m)	Au<br><br>(g/t)	Ag<br><br>(g/t)
SJG24-515	LA_MOCHOMERA	Main	59.00	64.15	5.15	4.391	8.6
SJG24-515	LA_MOCHOMERA	including	61.00	64.15	3.15	6.158	11.7
SJG24-516	PALOS_CHINOS	Main	37.00	42.00	5.00	3.024	3.6
SJG24-516	PALOS_CHINOS	including	37.85	39.35	1.50	8.424	8.3
SJG24-516	PALOS_CHINOS	Main	139.00	139.50	0.50	3.318	16.3
SJG24-517	LA_MOCHOMERA	Main	105.00	110.00	5.00	2.350	22.4
SJG24-517	LA_MOCHOMERA	including	106.75	108.15	1.40	5.782	31.6
SJG24-517	LA_MOCHOMERA	Main	176.00	182.00	6.00	0.980	1.4
SJG24-517	LA_MOCHOMERA	Main	200.00	202.00	2.00	1.623	3.9
SJG24-518	LA_MOCHOMERA	Main	0.00	4.00	4.00	9.587	7.4
SJG24-518	LA_MOCHOMERA	including	0.00	2.00	2.00	16.200	9.3
SJG24-518	LA_MOCHOMERA	Main	162.00	173.00	11.00	2.430	2.7
SJG24-518	LA_MOCHOMERA	including	164.60	165.70	1.10	9.487	7.3
SJG24-518	LA_MOCHOMERA	including	166.80	168.00	1.20	5.209	5.3
SJG24-519	PALOS_CHINOS	Main	56.70	67.65	10.95	3.498	1.8
SJG24-519	PALOS_CHINOS	including	59.80	61.50	1.70	6.258	2.1
SJG24-519	PALOS_CHINOS	including	63.00	66.00	3.00	8.266	2.9
SJG24-520	LA_MOCHOMERA	Main	178.20	180.00	1.80	0.369	14.2
SJG24-521	PALOS_CHINOS	Main	57.90	61.70	3.80	1.889	5.1
SJG24-521	PALOS_CHINOS	including	57.90	59.00	1.10	4.166	15.6
SJG24-521	PALOS_CHINOS	Main	101.15	103.45	2.30	1.690	1.4
SJG24-521	PALOS_CHINOS	including	101.15	102.40	1.25	2.928	2.4

P&E Mining Consultants Inc. Report No. 474 Page 183 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2023-2024 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG23-422	212,636	2,896,807	642.47	232.50	San_Pablo	106	-60
SJG23-423	212,619	2,896,855	646.31	259.50	San_Pablo	112	-45
SJG23-424	212,618	2,896,855	646.18	248.00	San_Pablo	0	-90
SJG23-425	212,618	2,896,855	646.29	241.00	San_Pablo	112	-60
SJG23-426	212,629	2,896,934	646.83	253.50	San_Pablo	112	-45
SJG23-427	212,628	2,896,935	646.76	227.50	San_Pablo	0	-90
SJG23-428	212,629	2,896,935	646.78	238.50	San_Pablo	112	-60
SJG23-429	212,535	2,896,848	634.62	274.50	San_Pablo	112	-60
SJG23-430	212,535	2,896,849	634.71	281.00	San_Pablo	0	-90
SJG23-431	212,569	2,896,781	638.93	289.50	San_Pablo	112	-45
SJG23-432	212,569	2,896,781	638.99	290.00	San_Pablo	112	-60
SJG23-433	212,568	2,896,782	639.09	265.50	San_Pablo	0	-90
SJG23-434	212,789	2,897,314	666.54	275.50	San_Pablo	0	-90
SJG23-435	212,836	2,897,334	665.53	302.50	San_Pablo	0	-90
SJG23-436	212,704	2,897,263	684.37	299.50	San_Pablo	0	-90
SJG23-437	212,715	2,897,229	695.39	314.50	San_Pablo	0	-90
SJG23-438	212,706	2,897,210	703.55	320.50	San_Pablo	0	-90
SJG23-439	212,552	2,897,232	710.81	331.50	San_Pablo	112	-60
SJG23-440	212,551	2,897,232	710.77	419.50	San_Pablo	0	-90
SJG23-441	212,602	2,897,153	709.10	401.00	San_Pablo	0	-90
SJG23-442	212,627	2,896,934	645.52	151.50	San_Pablo	130	-45
SJG23-443	212,626	2,896,937	645.60	151.50	San_Pablo	117	-47
SJG23-444	212,631	2,896,973	642.10	181.50	San_Pablo	160	-45
SJG23-445	212,601	2,897,178	708.62	326.50	San_Pablo	0	-90
SJG23-446	212,637	2,897,152	689.15	344.00	San_Pablo	112	-85
SJG23-447	212,517	2,897,095	703.57	380.50	San_Pablo	0	-90
SJG23-448	212,518	2,897,095	703.57	404.00	San_Pablo	112	-70
SJG23-449	212,556	2,896,659	629.09	298.50	San_Pablo	130	-80
SJG23-450	212,542	2,896,728	642.49	314.50	San_Pablo	0	-90
SJG23-451	212,502	2,896,689	645.60	292.50	San_Pablo	130	-80
SJG23-452	212,437	2,896,679	646.19	409.50	San_Pablo	130	-75
SJG23-453	212,487	2,896,612	630.78	526.50	San_Pablo	130	-75
SJG23-454	212,780	2,896,798	633.66	195.00	San_Pablo	112	-45
SJG23-455	212,764	2,896,874	630.65	196.00	San_Pablo	112	-45
SJG23-456	212,772	2,896,943	667.48	259.50	San_Pablo	112	-75
SJG23-457	212,734	2,896,957	673.33	241.50	San_Pablo	112	-75

P&E Mining Consultants Inc. Report No. 474 Page 184 of 380

DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2023-2024 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG23-458	212,737	2,896,923	670.85	232.50	San_Pablo	112	-60
SJG23-459	212,870	2,896,581	647.51	271.50	La_Union_M	132	-50
SJG23-460	212,847	2,896,560	642.14	292.50	La_Union_M	132	-50
SJG23-461	212,833	2,896,547	641.51	388.50	La_Union_M	130	-50
SJG23-462	212,751	2,896,620	638.31	367.50	La_Union_M	130	-50
SJG23-463	212,847	2,896,643	653.99	343.50	La_Union_M	130	-60
SJG23-464	212,745	2,896,739	640.75	274.50	La_Union_M	112	-60
SJG23-465	212,791	2,896,721	655.65	235.50	La_Union_M	112	-60
SJG23-466	212,752	2,896,622	638.52	325.00	La_Union_M	130	-75
SJG23-467	212,833	2,896,612	648.02	331.50	La_Union_M	130	-55
SJG23-468	212,828	2,896,586	642.79	254.50	La_Union_M	0	-90
SJG23-469	212,815	2,896,569	640.73	343.50	La_Union_M	130	-55
SJG23-470	212,797	2,896,543	630.41	326.00	La_Union_M	130	-60
SJG23-471	213,440	2,898,135	760.33	269.50	Tres_Amigos	0	-90
SJG23-472	212,848	2,896,503	640.87	379.50	La_Union_M	130	-50
SJG23-473	212,829	2,896,683	660.84	370.50	La_Union_M	112	-50
SJG23-474	212,824	2,896,513	634.37	310.50	La_Union_M	130	-55
SJG23-475	212,855	2,896,637	653.72	303.00	La_Union_M	130	-75
SJG23-476	212,781	2,896,593	636.61	302.00	La_Union_M	130	-70
SJG23-477	212,827	2,896,680	660.83	314.00	La_Union_M	130	-67
SJG23-478	212,837	2,896,594	644.39	302.00	La_Union_M	130	-60
SJG23-479	212,876	2,896,604	651.06	317.00	La_Union_M	130	-60
SJG23-480	212,825	2,896,571	642.04	310.50	La_Union_M	130	-60
SJG23-481	212,736	2,896,566	618.53	329.00	La_Union_M	130	-60
SJG23-482	212,717	2,896,588	624.77	41.50	La_Union_M	130	-60
SJG23-483	212,802	2,896,497	630.96	292.50	La_Union_M	130	-60
SJG23-484	212,774	2,896,519	618.47	287.00	La_Union_M	130	-70
SJG23-485	212,753	2,896,460	618.30	259.50	La_Union_M	130	-60
SJG23-486	212,856	2,896,656	665.41	299.00	La_Union_M	130	-60
SJG23-487	212,900	2,896,632	671.70	290.00	La_Union_M	130	-60
SJG23-488	212,739	2,896,442	608.21	308.00	La_Union_M	130	-60
SJG23-489	212,853	2,896,693	674.44	321.00	La_Union_M	130	-60
SJG23-490	212,721	2,896,455	609.47	308.00	La_Union_M	130	-60
SJG23-491	212,774	2,896,472	627.99	292.50	La_Union_M	130	-60
SJG23-492	212,726	2,896,476	610.22	317.00	La_Union_M	130	-60
SJG23-493	212,833	2,896,446	630.04	286.50	La_Union_M	130	-60
SJG23-494	212,751	2,896,499	609.18	275.00	La_Union_M	130	-60

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 7. <br>2023-2024 Drilling Program Summary
Drill Hole ID	Easting	Northing	Elev-ation<br><br>(masl)	Length<br><br>(m)	Target	Azimuth<br><br>(°)	Dip<br><br>(°)
SJG23-495	212,798	2,896,544	630.33	272.00	La_Union_M	130	-70
SJG23-496	212,751	2,896,500	608.99	149.00	La_Union_M	0	-90
SJG24-497	212,884	2,896,396	630.38	296.00	Palos_Chinos	60	-50
SJG24-498	212,789	2,896,656	649.26	281.00	La_Union_M	130	-75
SJG24-499	212,659	2,896,489	590.82	287.00	La_Union_M	130	-60
SJG24-500	212,688	2,896,444	599.64	54.00	La_Union_M	130	-75
SJG24-501	212,843	2,896,476	649.29	301.50	La_Union_M	130	-60
SJG24-502	212,731	2,896,321	546.02	232.50	Palos_Chinos	60	-60
SJG24-503	212,659	2,896,488	590.77	316.00	La_Union_M	0	-90
SJG24-504	212,741	2,896,210	538.64	317.00	Palos_Chinos	0	-90
SJG24-505	212,656	2,896,563	605.59	257.00	La_Union_M	130	-80
SJG24-506	212,805	2,896,286	553.66	215.00	La_Union_M	60	-60
SJG24-507	212,716	2,896,505	602.60	227.50	La_Union_M	0	-90
SJG24-508	212,891	2,896,217	564.08	206.00	Palos_Chinos	60	-60
SJG24-509	212,881	2,896,560	642.65	166.50	La_Union_M	130	-45
SJG24-510	212,809	2,896,460	633.78	227.00	La_Union_M	130	-60
SJG24-511	212,782	2,896,430	607.66	200.00	La_Union_M	130	-60
SJG24-512	212,820	2,896,424	617.97	182.00	La_Union_M	130	-60
SJG24-513	212,867	2,896,419	627.67	200.00	La_Union_M	130	-55
SJG24-514	212,911	2,896,366	634.95	242.00	Palos_Chinos	60	-60
SJG24-515	212,885	2,896,504	653.97	206.00	La_Union_M	130	-50
SJG24-516	212,939	2,896,308	631.57	208.50	Palos_Chinos	60	-60
SJG24-517	212,841	2,896,475	649.35	212.00	La_Union_M	130	-45
SJG24-518	212,828	2,896,618	647.96	200.00	La_Union_M	0	-90
SJG24-519	212,861	2,896,380	612.58	188.00	Palos_Chinos	60	-60
SJG24-520	212,834	2,896,655	656.45	191.50	La_Union_M	0	-90
SJG24-521	212,848	2,896,404	614.49	164.00	Palos_Chinos	60	-60

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Palos Chinos Cross Section 1

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Palos Chinos Cross Section 2

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Palos Chinos Cross Section 3

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Palos Chinos Cross Section 4

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Mochomera Cross Section 1

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Mochomera Cross Section 2

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 7. Mochomera Cross Section 3

Source: DynaResource (March 2025)

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

8.0 Sample Preparation, Analysis and Security

8.1 Historical Drill Hole Sampling at SJG (2007 to 2011)

Three basic periods of drilling and sample collection have taken place by previous operators at the SJG Project. Peñoles completed 11 short reverse circulation drill holes at various locations near San Pablo and La Union areas in 1992. However, these data were not well kept and the quality of the assays is questionable, and therefore not included in the current Mineral Resource data. There is also no information available regarding any Quality Assurance / Quality Control (“QA/QC”) procedures undertaken at the Project during Golden Hemlock’s 1997 drill program. The larger drill programs completed in 2007 to 2008 and 2009 to 2011 incorporated QA/QC protocol for all 38,151 samples included in the current MRE, taken from 298 diamond drill holes. It is these phases of drilling at the Project that are covered in this section of the Report.

8.1.1 Historical Sample Preparation and Security

Project geologists first logged and marked the drill core at storage facilities in SJG, whereas technicians later split the individual drill core lengths with a diamond saw, placed half the drill core in a plastic bag, numbered the bags for the laboratory, and closed them with security clips, before shipping them to the laboratory. The remaining half of the drill core is stored in warehouse on-site at the Dyna de Mexico camp in San José de Gracia.

8.1.2 Historical Sample Preparation and Analysis

The half drill core samples were trucked to Hermosillo, Mexico where Sonora Sample Preparation SA de CV (“SSP”) crushed each sample to -150 mesh. The rejects remained with SSP, whereas the pulps were air couriered to International Plasma Labs Ltd. (“IPL”) in Vancouver, Canada or Inspectorate Labs of Reno in Nevada and analyzed for gold by fire assay with Atomic Absorption (“AA”) finish. Samples over 10 gram per tonne gold were re-run using fire assay with gravity finish. In addition, a 30 element Inductively Coupled Plasma (“ICP”) analysis (aqua regia digest) was conducted on all samples. The remaining half of the drill core is stored on site at the Company’s camp in San José de Gracia.

IPL of Vancouver maintained ISO9001 accreditation for quality management systems, and Inspectorate laboratories (rebranded as Bureau Veritas on October 1, 2018) were, during the time of the previously noted drilling and sampling campaigns, certified by BSI in compliance with the ISO 9001:2008 Guidelines for Quality Management. Inspectorate and IPL are independent of DynaResource and P&E.

8.1.3 Historical Quality Assurance / Quality Control

The field QA/QC protocols included insertion of one of either the regular blanks, duplicates, or Certified Reference Materials (“CRMs”) into each lab shipment of assays, per 20 samples. The CRMs used in the 2007 to 2011 drill programs at the Project were purchased from Rocklabs Ltd., of Auckland, New Zealand. The resultant QA/QC data was reviewed on receipt of assay data

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and assessed for performance. A sample result was deemed to fail if it plotted outside ±3 certified standard deviations. At least 90% of the population of each CRM should fulfill the set criteria for the assay data to demonstrate satisfactory accuracy. Re-assay of all batches of samples with CRM results plotting outside three standard deviations of the certified mean value was undertaken during the 2007 to 2011 drill programs at SJG.

8.1.3.1 2007 – 2008 Quality Assurance / Quality Control

The CRMs SP-37, SG-31 and OxL51 were utilized during the 2007 to 2008 drill program at the Project. Performance charts of the three CRMs show the majority of the CRM assay data returning values within two standard deviations of the certified mean value and CRM performance is summarized as follows, using a ±2 standard deviation control:

 SP-37: 23 out of 323 samples (7.1%) plot outside ±2 certified standard deviations;

 SG-31: 15 out of 254 samples (5.9%) plot outside ±2 certified standard deviations; and

 OxL-51: 18 out of 262 samples (6.9%) plot outside ±2 certified standard deviations

The overall failure rate for the CRMs during the 2007 to 2008 program is 6.7%, representing at least 90% of the overall population, plotting within ±3 certified standard deviations, and thereby demonstrating satisfactory accuracy.

A total of 417 blank samples were inserted into the drill core sample stream during the 2007 to 2008 program. The vast majority of blank results returned values below the set tolerance limit of 20 ppb and within acceptable range. Three minor outliers were identified that required re-assay: sample 11592 (24 ppb Au), sample 14705 (30 ppb Au), and sample 14724 (40 ppb Au). The QP does not consider contamination to be of material impact to the 2007 to 2008 SJG data.

A total of 226 drill core duplicate samples were collected throughout the 2007-2008 drilling program and results were scatter graphed. Two samples were identified as outliers that required re-assay: sample 1373 (original 297 ppb Au, duplicate 102 ppb Au) and sample 1900 (original 320 ppb Au, duplicate 203 ppb Au) and 17 outliers in total were removed from the dataset. When outliers were removed, the overall correlation between original and duplicate samples for gold is excellent with an R2 value of 0.9762.

It is the QP’s opinion that the sample preparation, analyses and security measures undertaken at the SJG Project from 2007 to 2008 were adequate and the data are suitable for use in the current MRE.

8.1.3.2 2009 to 2011 Quality Assurance / Quality Control

Seven CRMs (SG-31, SP-37, OxL-51, OxL63, SG40, Sj-53 and OxP76) were utilized at the Project from 2009 to 2011. Performance charts of the seven CRMs show the majority of the CRM assay data returning values within three standard deviations of the certified mean value and CRM performance is summarized as follows, using a ±3 standard deviation control:

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

 SG-31: 1 out of 283 samples (0.4%) plot outside ±3 certified standard deviations;

 SP-37: 14 out of 618 samples (2.3%) plot outside ±3 certified standard deviations;

 OxL-51: 0 out of 80 samples (0%) plot outside ±3 certified standard deviations;

 OxL63: 11 out of 461 samples (2.4%) plot outside ±3 certified standard deviations;

 SG40: 19 out of 320 samples (5.9%) plot outside ±3 certified standard deviations;

 Sj-53: 40 out of 214 samples (18.7%) plot outside ±3 certified standard deviations; and

 OxP76: 6 out of 138 samples (4.3%) plot outside ±3 certified standard deviations.

The Sj-53 CRM performed quite poorly during the 2009 to 2011 program, with a failure rate of 18.7%. However, checks of such failures were in place with batches re-assayed containing CRM samples with results plotting outside three standard deviations of the certified mean value. The overall failure rate for the CRMs during the 2007 to 2008 program is 4.3%, representing at least 90% of the overall population, plotting within ±3 certified standard deviations, and thereby demonstrating satisfactory accuracy.

A total of 558 blank samples were inserted into the drill core sample stream during the 2009 to 2011 program. The vast majority of blank results returned values below the set tolerance limit of 20 ppb and within acceptable range. A total of 14 minor outliers (all <40 ppb Au) were identified that required re-assay. The QP does not consider contamination to be of material impact to the 2009 to 2011 SJG data.

Drill core duplicates were again collected during the 2009 to 2011 drill program at the same rate as in the 2007 to 2008 program. Duplicate data were scatter graphed for assessment and the majority of the data plots within acceptable limits.

It is the QP’s opinion that the sample preparation, analyses and security measures undertaken at the SJG Project from 2009 to 2011 were adequate and the data are suitable for use in the current MRE.

8.2 Bulk Density Determinations

The bulk density used for the current MRE is 2.68 t/m3, which is derived from the 2012 Technical Report on the SJG Project, due to no new density data being available since that time. A total of 5,540 drill core samples were measured for bulk density using the weight in air versus weight in water method. The samples were taken from all mineral zones. Dried samples were coated with paraffin wax before being measured. The tabulated results have been sorted by lithology and mineralized veins. The average bulk density of 5,051 wall rock samples is 2.59 t/m3, whereas the average bulk density for 489 samples of vein material is 2.68 t/m3.

Independent verification sampling carried out in February 2025 by a P&E QP, is in agreement with these measurements. A total of 12 due diligence samples were measured independently for bulk density, returning mean and median values of 2.74 t/m3 and 2.70 t/m3 respectively, and a minimum value of 2.52 t/m3 and a maximum value of 3.11 t/m3.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

8.3 Recent Drill Hole Sampling by DYNA de Mexico (2021 to 2024)

8.3.1 Sample Preparation and Security

Upon arrival at the secure drill core logging facility, a qualified geologist logged the diamond drill core and recorded observations and measurements. The samples were then marked and measured for sampling by a geologist, and the drill core digitally photographed prior to sampling. The minimum sampled interval is 0.4 m, the maximum is 7.5 m, and the average length is 1.7 m.

Drill core boxes containing HQ-diameter (64 mm or 2.51 inch) drill core marked for sampling, were transferred to the drill core cutting facility and samples were cut longitudinally in half by an electric powered diamond saw (Figure 8.1). One half of the sawn drill core was then taken as a sample that was immediately placed in a plastic sample bag and identified with a unique assay tag, and the sample number recorded on the log-sheet prior to entry into the master database. The other half of the drill core was returned to the drill core box for archival purposes. Sample bags were then placed into rice bags and sealed before being transported to the Sample Preparation Branch of Bureau Veritas Minerals Laboratory, located in Hermosillo, Sonora.

CRMs and blanks were routinely inserted into the sample sequence. CRMs were inserted at a rate of ~1 in 26 during the 2021 to 2022 drill program and 1 in 40 during the 2023 to 2024 program. Blanks were inserted at a rate of 1 in 40 during 2021-2022 and 1 in 44 throughout 2023-2024.

Chain of custody was maintained from drill site to laboratory by authorized personnel. Drill core boxes were collected from the drill site by the geologists responsible for supervising completion of the drill hole. Geologists surveyed the drill core, recorded the necessary geological data, marked the drill core for sampling, and prepared the CRMs and blanks. Geologists supervised the drill core cutting technicians, bagged and sacked the drill core samples, and the samples were then shipped by authorized personnel for delivery to the sample preparation lab.

Grade control samples taken in undergrounds workings and stockpiles were transported by the sampling geologist, and then sent to the Mine Laboratory.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. Core sampling facilities: Electric Diamond Saw

Source: SPM (2025)

8.3.2 Sample Preparation and Analysis

Drill core samples were prepared and assayed at the Bureau Veritas Minerals Laboratories (“Bureau Veritas”) sample preparation facilities in Hermosillo and Vancouver.

When received by the lab, samples were weighed and dried, then crushed to 70% passing 200 mesh, split by riffle splitter to approximately 250 g, and pulverized to 85% passing 200 mesh. All samples were analyzed for gold by 30g fire assay method with an AAS finish (code FA430, reporting limits 0.005 to 10 ppm). Samples returning grades of 10 ppm Au or greater were further analysed by fire assay with gravimetric finish (code FA530). Samples were also analysed for an array of 36 elements, including silver, copper lead and zinc, by Aqua Regia digest with an ICP-ES finish (code AQ300).

The Bureau Veritas labs in Hermisillo and Vancouver are independent laboratories whose quality management system and selected analytical methods (including methods FA430, FA530 and AQ300) are ISO/IEC 17025:2017 accredited by the Standards Council of Canada.

8.4 Recent Quality Assurance / Quality Control (Dyna de Mexico: 2021 to 2024)

DynaResource initiated a systematic QA/QC program at the Project in 2021, including the routine insertion of CRMs and blanks into the drill core sample sequence. CRMs were inserted at a rate of around one in 26 during the 2021 to 2022 drill program and 1 in 40 during the 2023 to 2024

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

program. Blanks were inserted at a rate of 1 in 40 during 2021-2022 and 1 in 44 throughout 2023-2024. The CRMs used over the 2021 to 2024 drill programs at the Project were purchased from Rocklabs Ltd., of Auckland, New Zealand, or KLEN International (74) Pty Ltd., of Neerabup, Western Australia. The QA/QC program was maintained and monitored by Lucero Reyes, Data and QA/QC Programs Manager of Servicios y Proyectos Mineros de Mexico (“SPM”). A sample result was deemed to fail if it plotted outside ±3 certified standard deviations.

8.4.1 Quality Assurance / Quality Control (2021 – 2022)

8.4.1.1 Performance of Certified Reference Materials

A total of 519 CRMs were submitted together with the 13,502 drill core samples to determine assay accuracy of the analyses at Bureau Veritas, he primary assay laboratory utilized in 2021-2022. Reference materials from various reputable suppliers were used to match various grade ranges, from the highest at 14.6 g/t Au to the lowest at 0.971 g/t Au. A sample result is deemed as failed if it plots outside ±3 certified standard deviations.

The eight CRM types used at the Project over the 2021-2022 period and details the number and percentage of failures for each CRM are presented in Table 8.1 and the results shown in Figures 8.2 to 8.9). The OxG140 CRM performed extremely poorly with more failures than passes on record and a failure rate of around 60% (Table 8.1 and Figure 8.3). From the commencement of the program until around drill hole SJG22-315, and then again from around drill hole SJG22-350 to the end of the program, all OxG140 CRMs fail high. The OxH163 and OxL159 CRMs performed poorly towards the end of the 2021/2022 program (Table 8.1 and Figures 8.6 and 8.9), when consecutive low failures can be observed following drill holes SJG22-378 and SJG22-412, respectively. An overall failure rate of ~14% was calculated for the OxH163 CRM and 8% for the OxL159 CRM. An overall failure rate of around 15% was observed for the CRMs during the 2021 to 2022 program. All other CRMs performed at an acceptable level.

The QP has reviewed each batch containing failed CRMs and considers that the majority of failures do not impact the integrity of the data. Recommendation is made, however, to re-assay two batches within the 2022/2022 data to confirm results: batches HMS21001226 and HMS22000022.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 8. <br>Summary of Certified Reference Materials Used at SJG Project: 2021-2022
Certified Reference Material	Certified Mean Value (ppm)	± 1SD (ppm)	± 2SD (ppm)	Lab Results
				No. Results	No. Failures	% Failure Rate	Average Result (ppm)
Monitoring Gold
CRM Sulfide	14.6	0.6	1.2	2	0	0.0%	14.0
OxG140	1.019	0.022	0.044	72	43	59.7%	1.132
OxG179	1.063	0.026	0.052	37	2	5.4%	1.063
OxG180	0.971	0.026	0.052	59	2	3.4%	1.069
OxH163	1.313	0.026	0.052	74	10	13.5%	1.255
Oxi164	1.79	0.036	0.072	19	0	0.0%	1.796
OxL118	5.828	0.149	0.298	20	0	0.0%	5.822
OxL159	5.849	0.139	0.278	238	18	7.6%	5.520
Total				519	75	14.5%

Source: This Report

Note: SD = standard deviation.

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For CRM Sulfide: 2021 - 2022

Source: This Report

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxG140: 2021 - 2022

Source: This Report

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxG179: 2021 - 2022

Source: This Report

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxG180: 2021 – 2022

Source: This Report

Figure STYLEREF 1 \s 8. SJG Performance Chart For OxH163: 2021 - 2022

Source: This Report

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For Oxi164: 2021 - 2022

Source: This Report

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxL118: 2021 - 2022

Source: This Report

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxL159: 2021 - 2022

Source: This Report

8.4.1.2 Performance of Blanks

A total of 338 blank samples were inserted into the drill core sample stream during the 2021 to 2022 program. The tolerance limit was set at five times the lower detection limit, at 0.025 g/t Au. The vast majority of blanks plotted below the set tolerance limit (Figure 8.10) and only four samples plotted outside of this range (samples 803576 at 0.037 g/t Au, 795528 at 0.055 g/t Au, 793378 at 0.059 g/t Au and 803043 at 0.065 g/t Au). The QP does not consider any of the failures to be material to the Mineral Resource data and blank performance is considered satisfactory.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For Blank: 2021 - 2022

Source: This Report

8.4.1.3 Performance of Duplicates

No duplicates were assessed for the 2021 to 2022 drill program.

8.4.1.4 Performance of Umpire Samples

No umpire samples were assessed for the 2021 to 2022 drill program.

8.4.2 Quality Assurance / Quality Control (2023 – 2024)

A total of 368 CRMs were submitted together with the 14,645 drill core samples to determine assay accuracy of the analyzes at Bureau Veritas (the primary lab utilized in 2023-2024). Reference materials from various reputable suppliers were used, to cater for various grade ranges from the highest at 5.849 g/t Au to the lowest at 0.971 g/t Au. A sample result is deemed as failed if it plots outside ±3 certified standard deviations.

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The four CRM types used at the Project in the 2023-2024 period and details the number and percentage of failures for each CRM are presented in Table 8.2. All CRMs performed well throughout the program (Table 8.2 and Figures 8.11 to 8.14), with acceptable pass rates. The OxG180 CRM returned a number of elevated results at the end of the program (Figure 8.11).

The QP has reviewed each batch containing failed CRMs and considers that the majority of failures do not impact the integrity of the data. However, batch HMS24000126 within the 2023/2024 data should be re-assayed to confirm results.

Table STYLEREF 1 \s 8. <br>Summary of Certified Reference Materials Used at SJG Project 2023-2024
Certified Reference Material	Certified Mean Value (ppm)	± 1SD (ppm)	± 2SD (ppm)	Lab Results
				No. Results	No. Failures	% Failure Rate	Average Result (ppm)
Monitoring Gold
OxG180	0.971	0.026	0.052	162	8	4.9%	0.969
OXG191	1.093	0.021	0.042	31	1	3.2%	1.083
OxL159	5.849	0.139	0.278	144	4	2.8%	5.733
OxL196	5.818	0.164	0.328	31	0	0.0%	5.787
Totals				368	13	3.5%

Source: This Report

Note: SD = standard deviation.

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxG180: 2023 - 2024

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Source: This Report

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxG191: 2023 - 2024

Source: This Report

Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxL159: 2023 - 2024

Source: This Report

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Figure STYLEREF 1 \s 8. SJG Project Performance Chart For OxL196: 2023 - 2024

Source: This Report

8.4.2.1 Performance of Blanks

A total of 332 blank samples were inserted into the drill core sample stream during the 2023 to 2024 program. The tolerance limit was set at five times the lower detection limit, at 0.025 g/t Au. The vast majority of blanks plotted below the set tolerance limit (Figure 8.15) and only two samples plotted outside of this range (samples 813082 at 0.041 g/t Au and 812296 at 0.088 g/t Au). The QP does not consider any of the failures to be material to the Mineral Resource data and blank performance is considered satisfactory.

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Figure STYLEREF 1 \s 8. San José de Gracia Performance Chart For Blanks: 2023 - 2024

Source: This Report

8.4.2.2 Performance of Duplicates

No duplicates were assessed for the 2023 to 2024 drill program.

8.4.2.3 Performance of Umpire Samples

No umpire samples were assessed for the 2023 to 2024 drill program.

8.5 Conclusion

The QP of this Report section has reviewed the sample preparation, analyses and security procedures undertaken at the Property and is of the opinion of the QP that the SJG Project data are suitable for use in the current Mineral Resource Estimate.

The QP recommends DynaResource complete the following work:

 Re-assay batches HMS21001226, HMS22000022 and HMS24000126 to confirm drill core sample results;

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 Follow up QC sample failures upon receipt of assay results, requesting the re-assay of batches as required, and liaise with the lab promptly about increased QC sample failure rates to ensure issues are addressed early;

 CRM and blank insertion rate of around 1:20;

 Undertake field and coarse reject duplicate sampling, ensuring a representative range of grades is sampled; and

 Submit a minimum of 5% of samples analyzed at the primary laboratory to a reputable secondary laboratory, ensuring that the appropriate QC samples are inserted into the sample stream to be sent for check analyses, to aid in identifying potential issues with a particular lab.

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9.0 Data Verification

9.1 2025 P&E Data Verification

9.1.1 March 2025 Data Verification

The QPs of this Technical Report section (the “Authors”) completed verification of the SJG drill hole assay data for gold in March 2025. Assay data from 2021 to 2024 were verified for the Project by the QPs, by comparison of the database entries with more recent assay certificates downloaded directly from the Bureau Veritas lab online portal, and copies of historical pdf assay certificates supplied by DynaResource. The QPs verified a total of 4,111 samples out of 28,148 overall samples from 2021 to 2024 were verified, representing ~15% of the over 2021 to 2024 data, and 13% of the constrained data. A total of 6,317 samples from the historical 2007 to 2011 data were also verified, representing ~17% of the overall 2007 to 2011 data, and 12% of the constrained data. The overall number of samples verified in the database equalled 10,428 out of 71,790, or ~15% of the overall data. No material issues were encountered during the verification process.

9.1.2 Drill Hole Data Validation

The QPs also validated the Mineral Resource database in GEMS™ by checking for inconsistencies in analytical units, duplicate entries, interval, length or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals or distances greater than the reported drill hole length, inappropriate collar locations, survey and missing interval, and coordinate fields. A few minor errors were identified and corrected in the database.

9.2 P&E Site Visit and Independent Sampling

The SJG Project was visited by Mr. David Burga, P.Geo., and Mr. David Salari, P.Eng., of P&E, on February 24, 2025, for the purpose of completing a site visit and due diligence sampling. Mr. Burga and Mr. Salari met with DynaResource staff and visited the process plant and laboratory in the afternoon of the 24th. During the site visit, two secured and lockable areas for on-site drill core storage were observed. An underground tour was also conducted and Mssrs. Burga and Salari visited the San Pablo and Tres Amigos Mine areas (Figures 9.1 to 9.4). Ventilation was observed to be poor in both areas, with a high amount of dust evident in the air near the workings when vehicles passed and where machines were moving rock. It is acknowledged that the Company has implemented a capital works program to improve the ventilation and working environment in all three mines. All workings are conventional cut-and-fill, and the Company is considering long hole possibilities. Following the mine tour, Mr. Burga and Mr. Salari visited the field to take GPS locations of drill hole collars. Drill collars were marked by a plastic bucket filled with concrete enveloping the plastic casing and a metal tag with the drill hole number embedded in the concrete. The marker for drill hole 24-517 is shown in Figure 9.5 and the drill hole collars located during the site visit are listed in Table 9.1.

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Figure STYLEREF 1 \s 9. Photograph on Level AC475 at San Pablo

Source: This Report

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Figure STYLEREF 1 \s 9. Photograph of Vein and Fault on Level 577 at Mochomera

Source: This Report

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Figure STYLEREF 1 \s 9. Photograph of Scoop Tram in San Pablo Area

Source: This Report

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Figure STYLEREF 1 \s 9. Photograph on Level 640 of Tres Amigos

Source: This Report

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Figure STYLEREF 1 \s 9. Collar Marker For Drill Hole 24-517

Source: This Report

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Table STYLEREF 1 \s 9. <br>Drill Hole Collar GPS Locations Taken During the 2025 SJG Project Site Visit
Drill Hole ID	Easting	Northing
23-459	212,835	2,896,788
23-515	212,777	2,896,822
23-467	212,779	2,896,816
23-474	212,773	2,896,717
23-485	212,699	2,896,662
24-501	212,786	2,896,676
24-517	212,786	2,896,676
24-512	212,767	2,896,625
24-521	212,796	2,896,602

Source: This Report

Mr. Burga collected 12 samples from 12 drill holes completed from 2010 to 2023, during the February 2025 site visit. A range of high, medium and low-grade samples were selected from the stored drill core. Samples were collected by cutting a quarter drill core with a drill core saw, with the other quarter drill core remaining in the drill core box. Individual samples were placed in plastic bags with a uniquely numbered tag, after which all samples were collectively placed in a larger bag and delivered personally to Actlabs in Ancaster, Ontario, by Mr. Burga for analysis. Gold and silver were analyzed by Fire Assay with gravimetric finish. Bulk density determinations were also measured on all drill core samples.

The Actlabs’ Quality System is accredited to international quality standards through ISO/IEC 17025:2017 and ISO 9001:2015. The accreditation program includes ongoing audits, which verify the QA system and all applicable registered test methods. Actlabs is also accredited by Health Canada. Actlabs is independent of P&E and DynaResource.

Results of the San José de Gracia Mine site visit verification samples for gold are presented in Figure 9.6.

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Figure STYLEREF 1 \s 9. Results of the February 2025 Au Verification Samples

Source: This Report

9.3 Adequacy of Data

Verification of the San José de Gracia Mine data, used for the current Mineral Resource Estimate, was undertaken by the Authors, and included a site visit, due diligence sampling of the 2010 to 2023 drill holes, verification of both recent and historical drilling assay data, and assessment of the available historical and recent QA/QC data. Verification was undertaken utilising data supplied by DynaResource, as well as downloaded directly from the Bureau Veritas lab online portal. Verification of the data collected at SJG reveals no current material issues with the data and the QPs consider that there is acceptable correlation between assay values in DynaResource’s database and the independent verification samples collected and analyzed at Actlabs in Ancaster, Ontario. Some variation is observed between the original versus site visit sample gold data, which is consistent with expectations for this type of mineralization.

The QPs are satisfied that sufficient verification of the data has been undertaken and that the supplied data are adequate for use in the current Mineral Resource Estimate for the SJG Project.

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10.0 Mineral Processing and Metallurgical Testing

10.1 Metallurgical Overview

This section provides a description of the mineralization and metallurgical characterization of the SJG Deposit. Multiple scoping testwork programs have been completed on the mineralized materials, including at least one testwork program completed by the current operators. Identifying the correct geo-metallurgical model for the Deposit is key to the overall economic viability of the Project.

The primary economic metal of interest is gold, with secondary interests in silver and copper. The results of concentration by gravity and flotation testwork demonstrate the non-complex and consistent nature of the SJG Deposit metallurgy that can be implemented successfully for gold recovery and somewhat modestly for silver recovery.

Interestingly, recovery results are not dependent on the lithology or zonation of the Deposit. Mining is below the water table in fresh rock with fresh sulfides.

10.2 Metallurgical Test Work Programs 1999 to 2006

Mineralized material and process plant tailings samples for the metallurgical testwork consisted of ~500 kg of bulk stockpiled material from the lower adit of the Tres Amigos Mine and ~100 kg of bulk sample ore from the Gossan Cap surface area. Three additional 5 to 15 kg mineralized material samples were assembled from splits of drill hole cores to represent different mineralized material types, including composite drill cores, massive sulfide vein drill cores and disseminated, non-sulfide mineralized drill cores.

Two separate preliminary test programs were completed: 1) on the bulk stockpiled material from the Tres Amigo lower adit; and 2) on bulk samples of existing tailings. During testing, a concept for metallurgical processing was developed to produce both gravity and flotation concentrates. Testwork confirmed a metallurgical flow sheet to be utilized at the San José de Gracia Deposit to recover up to 90% of the feed gold into the concentrates. This testwork also established a preliminary flowsheet for a process plant circuit to process either primary mineralized material or to reprocess existing tailings.

Hazen Research Laboratories Inc. of Golden, Colorado were subsequently engaged to independently confirm the results and complete additional optimization testwork. Hazen findings are presented in its “Process Development for the Tres Amigos Orebody” report, dated August 1999.

The Hazen report highlights the following points:

 Mineralogical examinations indicate sulfide mineralization is fairly coarse-grained:

 Initial gravity beneficiation/flotation testwork on bulk ore samples indicated up to 80% recovery of feed gold into gravity concentrates while maintaining a minimum concentrate grade of 100 g/t Au;

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 Existing tailings samples with feed grades of 3 to 8 g/t Au returned similar recovery results, but had to be cleaned to produce a final concentrate with >100 g Au/t;

 Overall gold recoveries into gravity cleaner concentrate were >50% of total feed gold;

 Flotation tests on primary mineralized material samples indicated recoveries of 85 to 90% of feed gold into rougher concentrates;

 Recoveries after cleaning dropped to 65 to 75% range when >100 g/t Au grade;

 Combination circuit of gravity pre-concentration stage with flotation on gravity tailings indicated potential recovery >90% of feed gold into gravity concentrate, rougher flotation and cleaner flotation concentrates, while maintaining a 100 g/t Au grade in all concentrates; and

 Suggest Tres Amigos will respond positively to beneficiation processes of gravity separation and flotation.

Despite being a small-scale operation, results are representative of an underground mining operation with process recoveries of ~90% of in situ mineralization.

10.3 Liem Consultores Metallurgy Testwork, 2024

 Process Plant Feed: Final concentrate grade of 78 g/t Au with 76.6% recovery;

 Stock Mineralized Material: Final concentrate grade of 44 g/t Au with 84% recovery;

 Testing at higher pH of 9.0 resulted in decreased gold and reduced recovery;

 Mineralogical review of process plant feed showed 87% of gold is associated with pyrite; and

 Native gold and electrum are also present.

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Table STYLEREF 1 \s 10. <br>Summary Grades and Final Recoveries
Sample	Head Au Grade<br><br>(g/t)	Concentrate Au Grade<br><br>(g/t)	Recovery<br><br>Au<br><br>(%)
Process Plant Feed	4.10	78.19	76.6
La Mochomera	0.62	73.0	73.0
Stock Mineralized Material	3.83	86.3	86.3
Stock pH 9	3.83	72.2	72.2

Source: Liem (2024)

10.4 Sepro Mineral Systems Corp.

Sepro Systems Inc. in Vancouver, B.C. completed testwork on 9 kg (20 lb) samples from each of the La Mochomera, San Pablo and San Pablo Sur Deposits.

The objective of the testwork was to determine the Gravity Recoverable Gold (“GRG”) content of the head sample and to treat the gravity tailings response to standard flotation processes. Samples were ground to a P80 66 to 73 µm to investigate the potential effect of finer grind on GRG and fed to gravity concentration where the concentrate was panned and assayed to confirm mineral content.

The combined gravity and concentrate tailings were treated with flotation under the following scoping conditions:

 No regrinding prior to flotation;

 Primary Collector Potassium Amyl Xanthate (PAX) and Dialkyl Dithiophosphates (DTP) 3181A added in rougher stages;

 Aero MaxGold (AMG900) added as promoter;

 Methyl Isobutyl Carbinol (MIBC) added as frother; and

 Natural pH to promote pyrite flotation.

GRG content results of head samples:

 La Mochomera: 6.04 g/t Au;

 San Pablo Sur: 13.7 g/t Au; and

 San Pablo: 13.3 g/t Au.

Sample testwork results:

 La Mochomera: 32.7% Au recovery at 902 g/t Au. Flotation recovered an additional 63.9% Au with an overall recovery of 96.5%;

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 San Pablo Sur: 33.8% Au recovery at 1792 g/t Au. Flotation recovered an additional 62.6% Au with an overall recovery of 96.4%; and

 San Pablo: 23.8% Au recovery at 2019 g/t Au. Flotation recovered an additional 71.4% Au with an overall recovery of 95.2%.

The Sepro testwork indicated a high degree of recovery, with no optimization required. Further gravity and flotation testwork are recommended to evaluate varying grind sizes on overall gold recovery for selected mineralized zones. Utilizing a three-stage GRG with additional flotation testwork will increase confidence in current plant operations.

Dyna has purchased and will be installing new Sepro gravity concentration equipment in July 2025 for existing three grinding circuits in the SJG process plant.

10.5 Metallurgical Performance

The San José de Gracia Mine is an operating mine with a flotation process plant. Nominal capacity is up to 800 tpd and in 2024, the plant produced 50 to 70 tonnes of concentrates daily with head grades at 4 to 5 g/t Au, concentrates at 50 to 70 g/t Au, and an average recovery of 76% Au.

Current operating data supplied by Dyna de Mexico has been reviewed by the QP.

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11.0 Mineral Resource Estimates

11.1 Introduction

The purpose of this Report Summary section is to present the Mineral Resource Estimate for SJG Project of DynaResource with a drilling data cut-off date of December 31, 2024. This Mineral Resource Estimate initially was performed by Servicios Y Proyectos Mineros De Mexico (“SPM”) and was reviewed and accepted by P&E Mining Consultants Inc. (“P&E”).

The Mineral Resources Estimate presented herein is reported in accordance with S-K 1300. Confidence in the estimate of an Inferred Mineral Resource is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Mineral Resources may be affected by further infill and exploration drilling that may result in increases or decreases in subsequent Mineral Resource Estimate.

This Mineral Resource Estimate was initially conducted with MineSight™ software (version 16.10) by SPM, and was reviewed and accepted by Yungang Wu, P.Geo. and Eugene Puritch, P.Eng., FEC, CET of P&E (Brampton, Ontario). Messrs. Wu and Puritch are independent of DynaResource as defined in S-K 1300.

The effective date of this Mineral Resource Estimate is March 24, 2025.

11.2 Mineral Resource Definitions

According to S-K 1300, a Mineral Resource is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A Mineral Resource is a reasonable estimate of mineralization, considering relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no guarantee that all or any part of the Mineral Resource will be converted into Mineral Reserve.

11.2.1 Inferred Mineral Resource

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated based on limited geological evidence and sampling. The level of geological uncertainty associated with an Inferred Mineral Resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Given that an Inferred Mineral Resource has the lowest level of geological confidence of all Mineral Resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an Inferred Mineral Resource may

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not be considered when assessing the economic viability of a mining project and may not be converted to a Mineral Reserve.

11.2.2 Indicated Mineral Resource

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated based on adequate geological evidence and sampling. The level of geological certainty associated with an Indicated Mineral Resource is sufficient to allow a QP to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an Indicated Mineral Resource has a lower level of confidence than the level of confidence of a Measured Mineral Resource, an Indicated Mineral Resource may only be converted to a Probable Mineral Reserve.

11.2.3 Measured Mineral Resource

A Measured Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a Measured Mineral Resource is sufficient to allow a QP to apply modifying factors, as defined in this section, in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a Measured Mineral Resource has a higher level of confidence than the level of confidence of either an Indicated Mineral Resource or an Inferred Mineral Resource, a Measured Mineral Resource may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.

11.3 Database

DynaResource provided a database of 627 diamond holes totaling 126,736 m from various drilling campaigns, in CSV format. The data cut-off date was December 31, 2024. A total of 393 drill holes totaling 80,345 m intersected the Mineral Resource domain wireframes (Table 11.1). SPM excluded 48 drill holes (completed in 2021-2022) from this Mineral Resource Estimate (Table 11.2), due to QAQC issues. Underground production drill holes (8,037) and chip samples were only used to define zones or domains; however, they were not utilized for grade estimation of the MRE, due to quality of the data. A drill plan is presented in Section 11.20.1.

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Table STYLEREF 1 \s 11. <br>Database Summary
Area	Number of Drill Holes	Dill Hole Length<br><br>(m)	Number of Drill Holes Intersecting Wireframes	Length of Drill Holes Intersecting Wireframes<br><br>(m)	Number Drill Holes Excluded
TA* Drill Hole	196	38,670	114	21,635	18
SPUM** Drill Hole	431	88,066	279	58,710	30
Total Drill Hole	627	126,736	393	80,345	48
UG Holes and Chips	8,087	24,719	-	-	8,087

Note: * TA- Tres Amigos and Tep Ceceña Zones.

** SPUM- San Pablo, La Purisima, La Union and Mochomera Zones.

Table STYLEREF 1 \s 11. <br>Drill Holes Ignored for the MRE
Hole ID	Hole ID	Hole ID	Hole ID	Hole ID	Hole ID
SJG21-299	SJG21-309	SJG22-324	SJG22-346	SJG22-383	SJG22-411
SJG21-300	SJG22-310	SJG22-332	SJG22-352	SJG22-387	SJG22-412
SJG21-302	SJG22-312	SJG22-333	SJG22-357	SJG22-388	SJG22-413
SJG21-303	SJG22-313	SJG22-335	SJG22-362	SJG22-392	SJG22-414
SJG21-304	SJG22-315	SJG22-336	SJG22-371	SJG22-393	SJG22-415
SJG21-305	SJG22-318	SJG22-337	SJG22-372	SJG22-397	SJG22-418
SJG21-307	SJG22-322	SJG22-340	SJG22-378	SJG22-399	SJG22-419
SJG21-308	SJG22-323	SJG22-341	SJG22-380	SJG22-402	SJG22-420

Extra data were provided by DynaResource including surveys of tunnels, mining stopes, and other underground developments from various mining activities. The latest topographic survey from 2024 corrected discrepancies in older drill hole collar surveys to standardize the source and origin of all surveys.

The database contained Au, Ag, Cu, Pb and Zn. At the request of DynaResource, SPM analyzed the data and considered that only Au was viable, whereas the other elements are not relevant. P&E didn’t review Ag, Cu, Pb and Zn assays as they were not provided for reviewing.

The database contains 65,648 gold assays. The basic gold raw assay statistics are presented in Table 11 3.

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Table STYLEREF 1 \s 11.<br>Assay Database Basic Statistics
Variable	Au<br>(g/t)	Sample Length<br>(m)
Number of samples	65,648	65,648
Minimum value	0.001	0.03
Maximum value	2,424.89	31.30
Mean	0.30	1.79
Median	0.03	1.95
Variance	115.95	0.32
Standard Deviation	10.77	0.56
Coefficient of variation	35.84	0.31

11.4 Data Verification

The QPs verified the Mineral Resource database by checking for inconsistencies in analytical units, duplicate entries, interval, length, or distance values less than or equal to zero, blank or zero-value assay results, out-of-sequence intervals, intervals, or distances greater than the reported drill hole length, inappropriate collar locations, survey and missing interval and coordinate fields. A few errors were identified and corrected in the databases. The QPs are of the opinion that the supplied database is suitable for Mineral Resource estimation.

11.5 Domain Interpretation

Gold mineralization at SJDG is found in veins of varying thicknesses and locally in stockwork zones. Across the district, between 20 and 40 structures were identified. However, only 11 structures have been considered for Mineral Resource estimation due to their superior continuity and proven development viability based on current production data. These veins exhibit very similar characteristics, as evidenced by geological descriptions.

The mineralized vein wireframes were interpreted and constructed by SPM using MineSight™ software and the QPs reviewed the models and consider the wireframes to reasonably represent the assay data and are suitable for Mineral Resource estimation.

Using the drilling data, cross-section modeling generated polylines to create 3-D wireframes, each assigned a unique rock code (Table 11.4). This code was applied to composites and blocks. Vein wireframe was developed for each vein by manually tagging drill hole sample intercepts using the drill core field logs, maps, and assays. The vein model represents the continuous zone of structurally hosted gold mineralization.

A total of 11 mineralized domain wireframes were created to represent the mineralized veins. The wireframes were used as constraining boundaries during Mineral Resource estimation, for rock coding, statistical analysis, and compositing limits. The 3-D domains are presented in Section 11.20.2.

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A topographical surface was created by SPM and used to remove all mineralized veins above the surface. The historical mined stopes and development were constructed by SPM. However, they did not match the domain wireframes well, due to survey differences. In order to fully deplete the mined area, the QPs created “Cookie cutter” polylines following the available underground mined shapes. Block model volumes captured within the mined depletion “cookie cutter” lines that were projected onto the Mineral Resource block model were depleted from the Mineral Resource Estimate.

Table STYLEREF 1 \s 11.<br>Domain Rock Codes for MRE
Area	Domain	Rock Code	Volume<br>(m3)
SPUM	SP100	100	587,194
	MOCH200	200	428,761
	MOCH201	201	247,874
	MOCH202	202	74,554
	MOCH203	203	43,093
	MOCH204	204	87,442
	PUR300	300	348,981
	PUR301	301	201,042
	PUR302	302	132,130
TA	TA400	400	550,217
	Cecena401	401	177,507
Mined	Stopes	500

Notes: SPUM- San Pablo, La Purisima, La Union and Mochomera Zones.

TA- Tres Amigos and Tep Ceceña Zones.

11.6 Wireframe Constrained Assays

Wireframe constrained assays were back coded in the assay database with the rock codes that were derived from intersections of the mineralized domains and drill holes. The basic statistics of mineralized wireframe constrained assays are presented in Table 11 5.

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Table STYLEREF 1 \s 11. <br>Basic Statistics of Constrained Assays
Variable	Au<br>(g/t)	Sample Length<br>(m)
Number of samples	1,197	1,197
Minimum value	0.003	0.30
Maximum value	2,424.89	5.00
Mean	7.77	1.43
Median	0.39	1.50
Variance	5,533.92	0.30
Standard Deviation	74.39	0.55
Coefficient of variation	9.57	0.38

11.7 Compositing

To regularize assay sampling intervals for grade interpolation, drill hole intervals within vein wireframes were composited to 1.0 m lengths. Gold composites began at the first intersection point between assay data and the hanging wall of the 3-D zonal constraint, ending when exiting the footwall. Non-assayed and below detection limit assays were set to 0.001 g/t. If the last interval was <0.25 m, its length was adjusted to equalize the composite intervals not to introduce short sample bias. The composite statistics are summarized in Table 11.6.

Table 11. <br>Basic Statistics of Composites
Variable	Au_Com<br>(g/t)	Au_Cap<br>(g/t)
Number of samples	1,725	1,725
Minimum value	0	0
Maximum value	1,122.35	90
Mean	5.32	3.82
Median	0.37	0.37
Variance	1,448.38	91.68
Standard Deviation	38.06	9.57
Coefficient of variation	7.15	2.5

Note: Au_Com – Au composite; Au_Cap – Au capped composite.

11.8 Capping

Grade capping analyses were undertaken on the 1.0 m composite values in the database within the constraining wireframes to control possible bias resulting from erratic high-grade composites in the database, and to maintain the high-grade local variation.

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Log-probability plots for gold composites were generated by SPM for mineralized veins (Figure 11.1). It was determined to apply a capping value of 90 g/t Au to all domains with a total of 7 composites capped. The QPs of this Report section completed a capping analysis for each individual domain, finding some degree of discrepancies in capping values. However, the QPs deemed the SPM’s capping value acceptable when considering the Au population distribution from underground production samples (which was not used for grade interpolation of the MRE). The statistics of the capped composites is exhibited in Table 11.6 (see above). The capped composites were utilized to develop variograms and for block model grade interpolation and classification.

Figure STYLEREF 1 \s 11. Au Composite Probability Plot of All Domains

11.9 Variography

Variography analyses were performed using the gold composites within each individual vein wireframe as a guide to determining a grade interpolation search distance and ellipse orientation strategy. The QPs independently developed variograms to verify the search ellipse used for grade interpolation. Selected variograms are presented in Section 11.20.3.

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Continuity ellipses based on the observed ranges were subsequently generated and utilized as the basis for grade estimation search ranges, distance weighting calculations and Mineral Resource classification criteria.

11.10 Bulk Density

The bulk density used for this MRE is 2.68 t/m3, which is derived from the 2012 Technical Report of the SJG Operation, due to no new density data being available since then. The 2012 Technical Report stated “A total of 5,540 pieces of drill core were measured for specific gravity using the weight in air versus weight in water method. This represents an additional 3,897 measurements taken in the 2010-11 drill seasons with bulk density measurements taken from all mineral zones. Dried samples were coated with paraffin wax before being measured. The results tabulated have been sorted by lithology and mineralized veins. The average bulk density of 5,051 wall rock samples is 2.59 t/m3, whereas the average bulk density for 489 samples of vein material is 2.68 t/m3. The QPs of this Report didn’t review the bulk density data since it was unavailable. However, a P&E QP collected 12 samples on a February 2025 site visit that averaged 2.74 t/m3.

11.11 Block Model

The block models were constructed by SPM using MineSight™ software. The QPs reviewed and verified the block models by comparing to the block models interpolated with GEOVIA GEMS™ software. The model reviews were discussed between SPM, DynaResource and the QPs during the course of this Mineral Resource Estimate. The main revisions made to the MRE model were classification and depletion.

The block model origins and block sizes are presented in Table 11.7. Each block model consists of separate model attributes for estimated gold grade, rock type (mineralized domains), volume percentage, bulk density, classification and depletion.

The block model contains volume percentage data to accurately represent the volume and tonnage contained within the constraining mineralized domains, as well as a volume void percentage of underground workings such as stopes, cruises and tunnels, etc.

Table STYLEREF 1 \s 11. <br>Block Model Definitions
Zone	Direction	Minimum	Maximum	Cell Size<br>(m)	Extent<br>(m)
SPUM	Easting	212,400	213,320	2	920
	Northing	2,895,630	2,897,400	2	1,770
	Elevation	200	850	2	650
TA	Easting	213,300	214,050	2	750
	Northing	2,897,700	2,898,500	2	800
	Elevation	180	840	2	660
No Rotation

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11.12 Grade Estimation

Mineral Resource estimation was restricted to the defined veins. All block grades were interpolated using Inverse Distance Cubed (“ID3”) anisotropic weighting in two passes. The first pass used 3 to 12 composites from two or more drill holes, and the second pass utilized 2 or more composites from 1 or more drill holes to ensure the majority of grade blocks within the defined veins were estimated. The search ellipse was rotated parallel to the strike of each mineralized vein with a search range of 100 m x 100 m x 50 m for the first pass, and 50 m x 50 m x 10 m for the second pass. The second pass overwrote the first pass. The Au grade of each vein was interpolated with its constrained unique capped composites denoted by rock code. The Au grade interpolation parameters are shown in Table 11.8.

Table STYLEREF 1 \s 11. <br>Block Model Au Interpolation Parameters
Pass	Number of Composites			Search Range<br>(m)
	Min	Max	Max per Hole	Major	Semi-Major	Minor
I	3	12	2	100	100	50
II	2	12	2	50	50	10

With thorough review and verification of the block grades against the adjacent composites with GEMSTM software, the QPs consider that the grade interpolation methods and parameters were undertaken with common industry best practices and are a reasonable representation of the in-situ Au grades, tonnages, and resultant metal contents.

Selected cross-sections and plans of Au blocks are presented in Section 11.20.4.

11.13 Classification

In the QP’s opinion, the Mineral Resource Estimate is supported by the drilling, assaying and exploration work completed up to the effective date and is based on spatial continuity of the mineralization within potentially mineable shapes. These factors are sufficient to indicate that the estimate is a reasonable potential for eventual economic extraction, thus qualifying it as a Mineral Resource under S-K 1300. The Mineral Resource was classified as Measured, Indicated, and Inferred based on the geological interpretation, variogram performance and drill hole spacing, and considering the production sampling.

A Measured Mineral Resource was classified for the domains of SP100, Moch200 and TA400 with a drill hole spacing of <30 m. Indicated Mineral Resources were classified for all domains with a drill hole spacing of ≤65 m. Inferred Mineral Resources were classified for all remaining grade blocks within the mineralized veins domains. Selected classification block cross-sections and plans are shown in Section 11.20.5.

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11.14 Depletion

The mined blocks were depleted from the volume percent attribute of the SPM’s block models. The In-situ block volume percent equals the percent of mineralized wireframe subtracting the percent of mined shapes (including stopes and all underground workings as of December 31, 2024). During reviewing, the QPs noticed that the stopes were not aligned with the mineralized wireframes well. To avoid overstating the Mineral Resource, the QPs created “cookie cutter” polylines following the stope shapes and depleted the Mineral Resource within the “cookie cutter” polylines from the SP100, Moch204 and TA400 domains.

11.15 Au Cut-off Grade Determination

The Mineral Resource Estimate was derived from applying a gold (“Au”) cut-off grade to the block models and reporting the resulting tonnes and grades for potentially mineable areas. The following parameters were used to calculate the Au cut-off grade that determine the underground mining potentially economic portions of the constrained mineralization:

 Au Price: US$2,500/oz (~3-year trailing and consensus long-term forecast average as of March 31, 2025).

 Au Process Recovery: 80%.

 Smelter Payable: 94%.

 Marginal Mining Cost: $72/t.

 Processing Cost: $25/t.

 G&A: $24/t.

The Au cut-off value of the underground Mineral Resource is calculated as follows:

($72 + $25 + $24)/($2,500/31.1035 x 80% x 94%) = 2.0 g/t Au

11.16 Mineral Resource Estimate

The Mineral Resource Estimate exclusive of Mineral Reserves is reported with an effective date of March 24, 2025 and is tabulated in Table 11.9. The QPs consider the mineralization of the SDG to be potentially amenable to underground mining methods.

Table STYLEREF 1 \s 11. <br>Mineral Resource Estimate at 2.0 g/t Au Cut-off (1-6)
Zone	Classification	Tonnes<br><br>(k)	Au<br><br>(g/t)	Au<br><br>(koz)	Metallurgical<br><br>Recovery
SPUM	Indicated	286	6.74	62	80%
	Inferred	51	4.29	7
TA	Inferred	46	4.45	7
Total	Indicated	286	6.74	62
	Inferred	97	4.37	14

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The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
The Mineral Resource is estimated using Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations.
Mined areas as of December 31, 2024, were depleted from the block models.
Mineral Resources are exclusive of Mineral Reserves.
All numbers are rounded.

11.17 Validation

The QPs validated the block models generated by SPM using a number of industry standard methods including block model interpolation using GEOVIA GEMSTM, visual and statistical methods.

Visual examination of composites and adjacent block grades on successive plans and cross-sections were performed on-screen to confirm that the block models correctly reflect the distribution of composite grades. The review of estimation parameters included:

 Number of composites used for grade estimation.

 Number of drill holes used for grade estimation.

 Mean distance to sample used.

 Number of passes used to estimate grade.

 Actual distance to closest point.

 Grade of true closest point.

 Mean value of the composites used.

A comparison of mean grades (including mined blocks) of block models interpolated with ID3 by SPM using MineSight and the QPs using GemsTM at a 2 g/t cut-off grade are presented in Table 11.10.

Table STYLEREF 1 \s 11. <br>Average Grade Comparison of Block Models
Data Type	Au<br><br>(g/t)
Block model interpolated by SPM	5.92
Block model interpolated by QPs	5.52

Au grade-tonnage comparison between block model generated by SPM and QPs on a global mineralization basis (including mined area) is presented in Figure 11.2.

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Figure STYLEREF 1 \s 11. Au Grade–Tonnage Curve of SJG Deposit

Local trends for gold were evaluated by comparing the SPM and QP estimate against the capped composites. The selected special swath plots of all domains (including mined areas) are shown in Figures 11.3 to 11.5.

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Figure STYLEREF 1 \s 11. Au Grade Swath Plot Easting

Figure STYLEREF 1 \s 11. Au Grade Swath Plot Northing

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Figure STYLEREF 1 \s 11. Au Grade Swath Plot Elevation

11.18 Potential Risks in Developing the Mineral Resource

The QPs are of the opinion that there are no known legal, political, environmental, or other risks that could materially affect the potential development of the Mineral Resources.

Due to the fact that SJG is a producing mine, there are moderate to low risks to continuing development of the Mineral Resource at the site, as follows in Table 11.11.

Table STYLEREF 1 \s 11. <br>Risks by Category
Risk Category	Explanation	Risk
Geology	Uncertainty in geological interpretation may affect Mineral Resource estimates in areas that have not been mined.	Moderate
Grade<br><br>Estimation	Bulk density applied to the MRE was based on the average measured bulk density. Local variations in bulk density may affect tonnage.	Low
	Grade capping is used to limit the influence of anomalous high-grade samples on all domains. Local grade trends may therefore be biased.	Low
	Classification is assigned algorithmically based on the number of samples within the search ellipse. This may create a small number of locally incongruent block classifications.	Low

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Table STYLEREF 1 \s 11. <br>Risks by Category
Risk Category	Explanation	Risk
Inverse Distance Cubed estimation may result in some local small tonnage high biased grades.	Low
Data	Database in Excel format may be modified accidently and contribute to grade estimation errors.	Low
Depletion	Historical mined areas may not be surveyed accurately, which could cause over or under depletion.	Moderate

11.19 Mineral Resource Estimate Conclusion

The QPs for this Individual Technical Report Summary section consider the Mineral Resource Estimate block model and Mineral Resource classification represent a reasonable estimation of the total Mineral Resources for the SJG Property with regard to compliance with: generally accepted industry standards and guidelines; the methodology used for grade estimation; the classification criteria used; and the actual implementation of the methodology in terms of Mineral Resource estimation and reporting.

The Mineral Resources have been estimated to conform with the requirements of the CRIRSCO Definitions in addition to the guidelines prepared by the Securities and Exchange Commission under the S-K §229.1300 to S-K §229.1305 regulations. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

11.20 Mineral Resource Estimate Illustrations

11.20.1 Drill Hole Plan

The surface diamond drill hole location plan is shown in Figure 11.6.

11.20.2 3-D Domains

The San José de Gracia 3-D domains are shown in Figure 11.7.

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Figure STYLEREF 1 \s 11. San José de Gracia Diamond Drill Hole Locations Plan

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Figure STYLEREF 1 \s 11. San José de Gracia 3-D Domains Plan

Source: P&E (This Report)

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11.20.3 Variograms

Variograms for the San José De Gracia Project are shown in Figure 11.8.

Figure STYLEREF 1 \s 11. San José de Gracia Variograms

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11.20.4 Au Block Model Cross Sections and Plans

Vertical cross sections and plans showing the gold block model outlines, gold grades in g/t Au, the mineralized domains, and underground mine workings are shown in Figure 11.9 to Figure 11.17. Figures 11.9 to 11.13 display the San Pablo, La Union and La Mochomera Zones, and Figures 11.14 to 11.17 the Tres Amigos Zone.

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Figure STYLEREF 1 \s 11. Au Block Model Vertical Cross Section 2,896,400 N, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Au Block Model Vertical Cross Section 2,896,700 N, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Au Block Model Vertical Cross Section 2,897,000 N, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Au Block Model Plan 600 Elevation, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Au Block Model Plan 500 Elevation, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Au Block Model Vertical Cross Section 2,897,950 N, Tres Amigos Zone

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Figure STYLEREF 1 \s 11. Au Block Model Vertical Cross Section 2,898,100 N, Tres Amigos Zone

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Figure STYLEREF 1 \s 11. Au Block Model Plan 600 Elevation, Tres Amigos Zone

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Figure STYLEREF 1 \s 11. Au Block Model Plan 500 Elevation, Tres Amigos Zone

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11.20.5 Classification Block Model Cross Sections and Plans

Vertical cross sections and plans showing the classification model outlines, the mineralized domains, and underground mine workings are shown in Figure 11.18 to Figure 11.26. Figures 11.18 to 11.22 display the San Pablo, La Union and La Mochomera Zones, and Figures 11.23 to 11.26 the Tres Amigos Zone.

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Figure STYLEREF 1 \s 11. Classification Block Model Vertical Cross Section 2,896,400 N, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Classification Block Model Vertical Cross Section 2,896,700 N, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Classification Block Model Vertical Cross Section 2,897,000 N, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Classification Block Model Plan 600 Elevation, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Classification Block Model Plan 500 Elevation, San Pablo, Union, and Mochomera Zones

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Figure STYLEREF 1 \s 11. Classification Block Model Vertical Cross Section 2,897,950 N, Tres Amigos Zone

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Figure STYLEREF 1 \s 11. Classification Block Model Vertical Cross Section 2,896,100 N, Tres Amigos Zone

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Figure STYLEREF 1 \s 11. Classification Block Model Plan 600 Elevation, Tres Amigos Zone

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Figure STYLEREF 1 \s 11. Classification Block Model Plan 500 Elevation, Tres Amigos Zone

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12.0 Mineral Reserve Estimates

The SJG Project utilizes underground cut-and-fill mining with a segregated ore blast for production, followed by a waste slash to generate unconsolidated backfill and provide clearance for machinery on the next cut in progression. The Mineral Reserve is derived from site-provided costs and designs, with modifying factors as stated in this Report section.

12.1 Mineral Reserve Summary

12.2 Factors that May Affect the Mineral Reserve Estimate

Information that will affect the cut-off value used for estimating the Mineral Reserve includes metal prices, smelter terms, the US Dollar:Mexican Peso exchange rate, dilution, overall mine and process variable and fixed costs, process plant recoveries, concentrate quality targets, changes in mine design, and management of the operation. The QPs consider that the underground mining methodologies, design criteria and parameters used are appropriate. However, external audits of the mine planning process are recommended to identify improvements and optimize the mine design in future iterations of the mine plan, and changes to laboratory testing to determine contents of deleterious elements in the various mining areas.

External factors, such as permitting, social, environmental governance (“ESG”) and political issues could affect the viability of the SJG Project. As such, these factors could materially impact the Mineral Reserve Estimate. The Mineral Reserve Estimate is summarized in Table 12.1.

Table STYLEREF 1 \s 12. <br>San José de Gracia Mineral Reserve (1-9)
Mineral Resource<br><br>Classification	Tonnes<br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Measured	981	5.94	187.2
Indicated	435	4.74	66.3
Measured & Indicated	1,416	5.57	253.5
Waste	192	-	-
Mineral Reserve<br><br>Classification	Tonnes<br><br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Proven	1,114	5.23	187.2
Probable	493	4.18	66.3
Proven & Probable 9	1,607	4.91	253.5

Notes:

Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.
Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.
Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.

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Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76 to 80% for Au.
An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.
Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.
The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.
Totals may not sum due to rounding.
Mineral Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.

12.3 Underground Mineral Reserve

The original Mineral Resource block models provided by DynaResource were:

 SPUM15RBM.dm, created March 5, 2025 at 12:21 pm; and

 TA15RBM.dm, created March 4, 2025 at 10:57 pm.

12.3.1 Block Model Changes from Mineral Resource Estimate to Mineral Reserve Estimate

The block models utilized in Mineral Resource estimation were modified in the following manner prior to use in the mine plan:

All Inferred Mineral Resource material had grades zeroed out, but the attributes for bulk density and class were unchanged. This material now reports as waste where mine plan shapes intersect these areas; and
All blocks containing nulls in grade or bulk density were removed from the block model.

The revised block models were renamed to:

 SPUM15RBM 050325 Cleaned.dm, created April 11, 2025 at 3:37 pm; and

 TA15RBM 050325 Cleaned.dm, created April 11, 2025 at 3:37 pm.

Mining shapes for the mine plan were originally constructed by DynaResource utilizing material from all three Mineral Resource classes (Measured, Indicated, Inferred). These shapes were not altered. However, as a result of the edits noted above, any material that was derived from Inferred Mineral Resource material has now been converted into diluting waste. All economic drivers have been recalculated after making these edits to ensure that shapes containing all three Mineral Resource classes are still economic after removing any impact of Inferred Mineral Resource material. Mined tonnes in the LOM plan derived from these areas total 4 kt of diluting waste with zero mineralization. Nulls were removed for simplicity and clarity in the planning process.

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12.3.2 Cut-off Value Calculations

Cut-off calculations have been performed based on revenues and costs as shown in the following sub-sections.

12.3.2.1 Metal Prices, Recoveries and Payable Value Calculations

The metal price utilized for the Mineral Reserve was US$2,500 per troy ounce of gold.

Process plant recoveries were provided by DynaResource, and are predominately 80%, with localized shapes at 76 or 78%. The weighted average process recovery of shapes in the mine plan is 79.77%.

Smelter terms for gold are as follows:

 Refining: $20.00/oz.

 Treatment: $99.00/dmt.

 Transport: $25.00/wmt.

 Payable Ratio: 94.375%.

Payable terms are variable, based on concentrate grade as listed in Table 12.2.

Table STYLEREF 1 \s 12. <br>San José de Gracia Smelter Payable Ratios
Concentrate Grade<br><br>(Au g/t)	Payable Ratio<br><br>(%)
0 to 35	93.5001
35 to 45	94.000
45 to 60	94.375
60 to 75	94.750
75 to 90	95.250
90 to 150	95.500
150+	96.500

Note: Ratio varies if grade is <30.77 g/t Au subject to a minimum deduction of 2.0 g/t.

Applicable to all concentrate grades, but only if the concentrate grade falls below 30.77 g/t, is a minimum deduction of 2 g/t Au. For this scenario, the payable ratio is calculated as:

Payable Ratio=1- 2Concentrate Grade

Payable terms also exist for Ag, but the block models do not track Ag as an attribute. Therefore, no revenues or costs from silver are included in the Mineral Reserve calculations.

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Deleterious element penalties exist in the payable terms, but the block models do not track these elements as attributes. Historically, deleterious element penalties have not been assessed to the concentrate. Deleterious element penalties are as follows:

 As, Sb: $3.00 per 0.1% content over 0.3%.

 Pb, Zn: $5.00 per 0.1% content over 0.3%.

 Bi: $3.00 per 0.01% content over 0.10%.

 F: $3.00 per 100 ppm content over 750 ppm.

All deleterious element penalties use fractions pro rata.

All shipments of concentrate in the previous 12 months ending March 2025 have been in the 45 to 60 g/t Au range without any deleterious element penalties. Therefore, utilizing all of the above information, the average realized value of gold has been roughly 90.5% of the value of the gold in concentrate.

12.3.2.2 Contractor Estimates

The Project has active development and production mining contracts with three mining contractors:

 INMIN in 2023;

 Ophata in 2024; and

 Rencer/Salvador Antonio Renteria Armendariz (“SARA”) in 2025.

All contracts cover similar work (development, production, backfill, LHD tramming, haulage, and additional ground support). Contracts were signed in 2023, 2024 and 2025 (one contractor each year). Comparison of Rencer/SARA to Ophata show escalation from 2024 to 2025 was approximately 5% on development, -10% on ore and waste backfill production and -3% on additional ground support. Tramming by LHD and haulage by truck were essentially unchanged. Negotiations and updates on the older contracts are underway, however, are unlikely to result in appreciable changes to the overall mining cost.

Utilizing the 2025 contract from Rencer/SARA, an estimate of costs for the deepest planned stope in the Purisima mining area was performed, accounting for development, production, backfill, tramming, and haulage. Total contract costs for all development and mining the area amount to $89.98/t, in line with general cost estimates of $99/t with the addition of $5 to $6/t in power costs for the underground mine and some level of additional ground support cost. The removal of CAPEX costs and the addition of processing and G&A costs show an estimated marginal cost of ~$75/t, appreciably less than the $90/t utilized in the mine plan, and indicative of conservatism in the mine plan.

A further contract with a blasting-specific contractor is in the end stages of negotiation, with the intention of replacing all production blasting operations of the existing contractors.

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12.3.2.3 Site Cost Estimates

Since the site is operating, historical cost summaries and budgets were utilized to generate costs for the mining plan. Site cost estimates are as follows:

 Mine Operation: $98.9/t ($99 used, includes development CAPEX).

 Process Plant Operation: $23.0/t ($23 used).

 G&A: $18.6/t ($18 used, as portion of G&A is fixed).

Additional costs for external G&A, selling cost and fixed process plant CAPEX were also provided. However, because the costs are largely fixed in respect to tonnes produced, only the variable costs listed above are utilized in the cut-off calculation. These additional costs average ~$42.50/t.

The Mine Operation cost of $99/t includes capital development of ramps and infrastructure that are not linearly related to tonnes and gold ounces produced. Best practice would be to segregate these costs from the mining cost and calculate each area’s operating profit prior to subtracting the associated cost of local capital development. However, retaining these costs in the cut-off calculations provides a conservative result. Therefore, these costs have been retained as per the above.

12.3.2.4 Cut-off Grade Estimates

The economic cut-off value for underground mining at the SJG Project is estimated at $140/t, equivalent to a cut-off grade of 2.40 g/t Au, utilizing the costs and revenues stated in the preceding subsections. Utilizing a marginal cut-off value of $90/t, the marginal cut-off grade is estimated at 1.55 g/t Au under the same conditions.

12.3.3 Dilution and Mining Loss

Dilution describes the necessary inclusion of sub-economic material in the mining process to recover economic material. For the Project, there are two primary sources of dilution: waste dilution (internal and external) and backfill dilution resulting from overbreak and over-digging (floor gouging) backfill on stope floors.

12.3.3.1 Internal Dilution

Internal dilution is the deliberate inclusion of sub-economic material in the design of a mining shape for the purposes of extracting economic material in a practical manner. This dilution may or may not be mineralized.

For the shapes in the LOM plan, internal dilution (calculated as the tonnage of material grading below the marginal cut-off grade divided by the total tonnes) is 10.8%, comprised of 8.8% mineralized material below marginal cut-off grade, and 2.0% unmineralized material. Gold content in mineralized material below the cut-off grade make- up 1.2% of the Mineral Reserve ounces (~3.2 koz Au).

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12.3.3.2 External Dilution

External dilution on mining shapes is the result of overbreak of the shape outside of the planned limits. In the LOM plan, production areas have been assigned an external dilution value of 12% by tonnage, and development areas (sills and mineralized portions of accesses) have been assigned an external dilution of zero, as it is assumed that face profiles can be maintained within reasonable tolerances of the nominal value, and that any overbreak will be into production areas of the stopes.

Overall weighted average external dilution is 10.1%. External dilution is mathematically applied (production shapes provided by DynaResource are limited to the mineralized wireframe) and assumed to be unmineralized.

12.3.3.3 Total Dilution

Total dilution, calculated as the sum of the tonnage of all material below the marginal cut-off grade divided by the total tonnes of all mined ore is calculated at 20.9%.

12.3.3.4 Mining Loss

Mining loss is defined as a portion of material left behind in an excavation due to any or all of drilling, blasting, excavating, or ground support issues.

Overall average underground mining loss for the Deposit is estimated at 5.0% by tonnage for all development and production areas.

12.3.3.5 Additional Considerations

Recent reconciliations by DynaResource have indicated that current external dilution is approximately 16.6%. Management has implemented new survey and blasting controls to reduce this number by at least a third which, when achieved, provides upside on the 12% dilution utilized in the mine plan. The same reconciliations have indicated that mining loss of gold ounces is approximately 10.2%. Again, new survey and blasting controls, in addition to further controls on material handling and tracking from the face through the process plant, are being implemented to reduce this value in line with the LOM plan value.

12.3.4 Underground Mineral Reserve Estimate

Mineral Reserves consist of Measured and Indicated Mineral Resources only.

12.3.5 Mining Plan Summary

The contents of the mine plan by Mineral Resource classification are shown in Table 12.3.

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Table STYLEREF 1 \s 12. <br>San José de Gracia Mine Plan by Mineral Resource Class1
Item	Class	Tonnes<br><br>(k)	Grade<br><br>(Au g/t)	Ounces<br><br>(koz Au)
Mining Shapes	Measured	1,033	5.94	197.1
	Indicated	457	4.74	69.8
	Waste	30	-	-
Added Dilution	External Dilution	172	-	-
Fully Diluted	Measured	1,173	5.23	197.1
	Indicated	519	4.18	69.8
Mining Loss	Measured	59	5.23	9.9
	Indicated	26	4.18	3.5
Mine Plan	Measured	1,114	5.23	187.2
	Indicated	493	4.18	66.3
	Total M&I	1,607	4.91	253.5

1 Totals may not sum due to rounding.

12.3.6 Underground Mineral Reserve

The underground Mineral Reserve for the SJG Project is presented in Table 12.4.

Table STYLEREF 1 \s 12. <br>San José de Gracia Mineral Reserve (1-9)
Mineral Resource Classification	Tonnes<br><br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Measured	981	5.94	187.2
Indicated	435	4.74	66.3
Measured & Indicated	1,416	5.57	253.5
Waste	192	-	-
Mineral Reserve Classification	Tonnes<br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Proven	1,114	5.23	187.2
Probable	493	4.18	66.3
Proven & Probable9	1,607	4.91	253.5

Notes:

Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.
Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.
Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.

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Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76 to 80% for Au.
An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.
Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.
The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that penalties of this nature have not historically been assessed on any payment invoice from the existing concentrate buyer.
Totals may not sum due to rounding.
Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.

The underground Mineral Reserve breakdown by grade bin is shown in Table 12.5.

Table STYLEREF 1 \s 12. <br>San José de Gracia Mineral Reserve by Grade Group1
Mineral Reserve Classification	Grade Group	Bin<br><br>Min	Min Max	Portion of Mineral Reserve Tonnes	Portion of Mineral Reserve Au Ounces
		(g/t Au)		(%)	(%)
Proven	High Grade	5.00	>5.00	27	54
	Mid Grade	3.00	5.00	18	13
	Low Grade	2.40	3.00	8	4
	Marginal Grade	1.55	2.40	8	3
	Dilution	>0.00	1.55	9	1
Probable	High Grade	5.00	>5.00	10	14
	Mid Grade	3.00	5.00	12	8
	Low Grade	2.40	3.00	3	2
	Marginal Grade	1.55	2.40	4	2
	Dilution	>0.00	1.55	2	0
Proven and<br><br>Probable	High Grade	5.00	>5.00	37	68
	Mid Grade	3.00	5.00	29	21
	Low Grade	2.40	3.00	11	6
	Marginal Grade	1.55	2.40	12	5
	Dilution	>0.00	1.55	11	1

Note: 1 Totals may not sum due to rounding.

Approximately 68% of all Au ounces in the Mineral Reserve are from mining areas grading >5.00 g/t Au. Approximately 23% of all mined tonnes are from areas grading at or below the economic cut-off grade, containing 6% of the Mineral Reserve Au ounces.

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13.0 Mining Methods

13.1 Introduction

The production plan focuses on a geological area characterized by narrow veins, extending over 2.75 km, as shown in Figure 13.1, and from the surface to a maximum depth of 480 m. To date, three main production zones have been identified:

 San Pablo, including the San Pablo and San Pablo Sur areas;

 La Mochomera, including the La Mochomera, La Unión and Purísima areas; and

 Tres Amigos, including the Tres Amigos and Ciseña areas.

The La Mochomera area is connected to the San Pablo area. The Tres Amigos area is an entirely separate mining area that shares no infrastructure or access with La Mochomera or San Pablo.

A semi-mechanized cut-and-fill mining method is utilized in all areas, with production drilling using hand-held drills, and Load-Haul-Dump (LHD) mechanized units being used for material handling. The ore is extracted in variable height lifts from 1.1 to 1.5 m depending on vein dip. This method involves extracting the ore in vertical sections following the dip (inclination) of the veins until reaching a drilling depth of 1.5 m (limited by drill steel length).

Access levels are nominally spaced 15 m apart, with a 3 m thick pillar left below the next upper level to provide stability and prevent the ingress of unconsolidated backfill from the stope above entering the active mining areas. Access to the veins is through crosscuts that intersect the vein perpendicularly. The slope of the crosscuts is initially at a -15% slope; however, it is adjusted as the mining front progresses upwards, until reaching a +15% slope. Slopes are nominal limits.

The mining method in use at the project is hybrid of textbook cut-and-fill and resue mining. For simplicity, this method will be referred to throughout as “Cut-and-Fill”. Initial development of the production sill is full-face, however, production utilizes an ore blast with minimal dilution to extract the vein, followed by a secondary waste slash to generate backfill for the stope and provide sufficient clearance for the mechanized equipment necessary to extract the material from the next lift in an overhand sequence.

The San Pablo Mine has two ramp access points: San Pablo Viejo and San Pablo Sur. Both ramp access points are used for the production from the same mineralized vein.

At the La Mochomera Mine, access is through a crosscut from the San Pablo Sur development ramp (Figure 13.2). Currently, work is being carried out on one mineralized body and plans are in place to integrate the La Unión and Purísima areas into the already developed infrastructure in this sector.

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Figure STYLEREF 1 \s 13. Mine Production Zones

Source: This Report

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Figure STYLEREF 1 \s 13. Isometric View of Mines Looking Southeast

Source: This Report

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The Tres Amigos Mine is an independent mineralized zone with two dedicated access points being the TAE Ramp and the TAO Ramp, which access the same mineralized body at different elevations. The infrastructure in this area also supports mining of the Ciseña area via a dedicated ramp accessed from the existing Tres Amigos ramp.

A detailed geo-technical assessment of the mine plan was scheduled and carried out by DYNA. The available geo-technical data was reviewed and used to define rock mass quality and rock mass structure domains. Geo-technical design input into the mine plan was then provided based on the domains, stability analyses and experience at the DYNA operation and other similar mines. The design input included:

 Stope dimensions and overbreak.

 Dimensions for crown, Sill, rib and inter-lode pillars.

 Offsets and strategies for mining around voids and historical workings.

 Offsets between stopes and development.

 Extraction sequencing.

13.2 Review and Limitations of Geomechanical Data

DYNA has completed an extensive campaign of underground mapping in the La Mochomera and San Pablo Zones. This Report relied on the following data collected by DYNA and contractors:

 Underground Mapping;

 Rock mass quality and structural mapping were completed with a total of more than 1 km of mapping available for use; and

 Mapping in La Mochomera and San Pablo includes ore drifts and waste development.

DYNA reviewed the available data to assess its reliability for use in the current study and supplemented it through the targeted collection of additional.

13.3 Rock Mass Characteristics and Domain Definition

13.3.1 Intact Rock Properties

Intact rock properties were based on the results of the laboratory strength tests completed by EOSCAN and MACEP (2024-2025), underground observations, and experience at other projects in Mexico. Each of the intact rock properties are briefly discussed below.

 Intact Strength: the average unconfined compressive strength (UCS) values for each of the major lithologies ranged from approximately 30 to 55 MPa. Based on underground observations, these results may under-represent the strength of the rock mass. A UCS of <20 MPa was defined for the slates or weathered metasedimentary rocks; and

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 Hoek-Brown MI and Triaxial compressive strength testing and Brazilian indirect tensile strength testing have not been completed to date. Therefore, Hoek-Brown MI values were estimated based on the published typical and lower bound values for Tuff (Hoek et al., 1992). Values of 13 and 8 were selected.

13.3.2 Rock Mass Structure

The dominant discontinuity orientations observed at the mine are summarized below. Some areas, particularly in La Mochomera, are limited by a set of faults that are displacing the vein to the northwest. The principal sets of discontinuities are listed below:

 Joint sets are sub-parallel to mineralization (E1). The mineralization strikes are approximately 198° and dip 50°;

 Joint sets have a contrary dip to that of the Mineralization (E2). This set is controlled by inverse faults which are cutting the vein;

 Joint Sets Sub-Perpendicular to the strike of the Mineralization. Joint set E5 is the most important because it is controlled by sinistral faults and has displaced the vein more than 2 meters (sub level 533 and 538 in La Mochomera); and

 Sub-Horizonal Joint Set. Minor set referred to as Joint sets E3 and E4. Between E5 and E4 there may be ore traps.

These general trends were reviewed in detail for each of the areas and veins. Potential controls on the rock mass structure were evaluated, including spatial variation between and within the veins, as well as between lithologies. The final domains are listed in Table 13.1 and stereography in Figure 13.3.

Table STYLEREF 1 \s 13. <br>Rock Mass Domains
ID	Strike<br><br>(°)	Dip<br><br>(°)
E1	198	49
E2	42	56
E3	262	46
E4	271	25
E5	313	82

Source: DynaResource (2025)

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Figure STYLEREF 1 \s 13. Stereography

Source: DynaResource (2025)

13.3.3 Rock Mass Quality

The rock mass quality varies between the veins. Prior to the start of the domain definition process, a combination of underground observations, development performance, mapping RMR76, Q method and GSI data was utilized, as follows.

 La Mochomera. Three dimensional models were developed for areas of moderate and major reduced rock mass quality. Areas of moderate reduced rock mass quality are associated with RMR76 values between 40 and 50. Areas of major reduced rock mass quality are associated with RMR76 between 20 and 30. Outside of these areas, the rock mass quality ranges between RMR76 values of 55 and 60; and

 San Pablo. Three Dimensional models were developed for areas of Moderate and Major reduced rock mass quality. The RMR76 data inside the reduced rock mass quality area ranges between 35 and 45 and the rock mass quality outside of the model has RMR76 values between 50 and 65.

The rock mass behavior in contact between metasedimentary rocks and the Rhyodacite can represent instability because the RMR76 values are <20.

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Potential controls on the rock mass quality were evaluated, including spatial variability, position relative to the mineralization, the influence of lithology and the influence of surface effects. The rock mass quality domains and the associated design values are summarized in Table 13.2.

Table STYLEREF 1 \s 13. <br>Typical Rock Mass Quality Ranges Based on<br>RMR76 Rock Mass Classification
Vein	Domain	Vein	Immediate<br><br>HW-FW	Distal<br><br>HW-FW
La Mochomera	Dike	20 to 40 Poor	20 to 50 Poor to Fair	-
	Rhyodacite	40-60 Fair to Good	55 to 60 Fair to Good	55 to 75 Good
San Pablo	Meta-sediments	20 Poor	35 Poor	-
	Rhyodacite	45 Fair	50 Fair	60 Good

Source: DynaResource (2025)

13.3.4 Faults

The characterization of the faults, including the parameters of primary and secondary faults, has been captured in three dimensional plans with the objective of identifying them in the planning of ramp and drift developments in ore and waste. There are several regional faults striking to the northeast and southwest and dipping to the northwest that cross-cut the veins.

13.3.5 Stress Regime

The far-field stress conditions were estimated Based on experience at other sites in Mexico as follows:

 σz (MPa) = 0.025z.

 KH = 1.

 Kh = 1 to 0.5.

The orientation of the principal far-field horizontal stress was assumed to be perpendicular to the local strike of the veins.

13.3.6 Stope Stability

The performance of the cut-and-fill stopes was evaluated using empirical design methods developed by Ouchi et al. (2008) and Hoek and Brown (1980). The analyses considered the maximum stope span of 3.5 m and the design values for the Mineralized Zone rock mass quality domains. The results suggest that the planned stope dimensions are achievable using conventional mining practices in most cases. The stopes within the areas of major reduced rock mass quality at La Mochomera and San Pablo are expected to require upgraded ground support (i.e., shotcrete or fibrecrete). This is consistent with current mining practices within these areas.

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13.3.7 Ground Support

The current ground support standards (provided by Ávila on August 14, 2024) are summarized below for reference:

 Type I and II: 2.4 m 39 mm long split set in the Back and shoulders on 1.2 x 1.2 m spacing in an overlapping dice pattern with welded wire mesh. Type I is installed to 2 m from the floor and Type II is installed to 2 m from the floor;

 Type III and IV: 2.4 m long rebar in the walls on 1.5 x 1.5 m spacing in an overlapping dice pattern with welded wire mesh. Type III is installed to 1.8 m from the floor and Type IV is installed to 1 m from the floor;

 Type V: In poor ground conditions, in-cycle shotcrete with a thickness of 2 inches (5 cm) is added to the Type IV standard to within 1.8 m of the floor. In practice, the shotcrete is typically extended to the floor; and

 Intersections: 2.4 m long rebar on a 1.5 m square pattern up to a maximum span of 5.5 m and 4 m long cable bolts on a 2 m square pattern up to a maximum span of 7.5 m.

These ground support standards were reviewed relative to the opening dimensions and rock mass conditions expected over the life of mine. Although the ground support standards are reasonable for the typical conditions currently encountered at the mine, the following modifications were made for the purposes of this study, in order to reflect planned changes and current practices:

 Type V: The shotcrete will be applied to the floor and a combination of short rounds and spiling with PM24 Super Swellex will be used in order to reflect current practice and recent ground support trials; and

 Intersections: The maximum intersection spans were re-evaluated Based on the planned changes to the development dimensions. The maximum span for which either 2.4 m long resin rebar or PM12 Swellex bolts can be used as intersection support was increased from 5.5 m to 8 m. For intersection spans greater than 8 m, 4 m long cable bolts on a 2 m square pattern will be installed in addition to the primary ground support standard.

Several iterations of the mine plan were provided and reviewed from a geomechanical perspective. Recommendations were made from the review. The recommendations have been addressed through changes to the mine design, to achieve better ground stability.

13.4 Production Mining

The SJG Project contains mineralized zones that vary in dip and thickness along both strike and depth. Generally, the veins are relatively thin (1 to 2 m in thickness), with localized areas being thicker. Dip of the veins varies between 30 to 40° from horizontal, with local areas being steeper. Due to the thickness of the veins, full-face drilling results in excessive dilution.

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Therefore, for production, the ore is initially blasted into the cut below prior to the footwall being slashed out to accommodate the machinery necessary for extraction of the next lift up. This results in the mining method being a hybrid of textbook cut-and-fill and resue mining. For simplicity, this method will be referred to throughout as “Cut-and-Fill”. An example of the progression is shown in Figure 13.4.

Figure STYLEREF 1 \s 13. Cut-and-Fill: Section View of Production Mining Sequence

Sequence progresses from left to right

Source: This Report

13.4.1 Stope Design Methodology and Mining Factors

The design of the stopes was utilizes the Mineral Resource wireframes of the veins. Production lifts were made at an average of 1.3 m vertical spacing (indicative of a 1.5 m hole depth at an average dip of 60 degrees from vertical) and on 4 m sections along the strike of the structure. No external dilution was added to the mining shapes, however, 12% dilution was mathematically added during mine planning.

Dilution refers to the mixing of waste material (non-economic rock) with the ore during the extraction process, which reduces the average grade of the extracted ore. Rock quality directly influences the stability of the walls and roofs of the extraction voids. In low-quality rock (fractured,

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altered or weak), it is common for fragments of waste material to break off during excavation. These factors can be attributed to areas with geological faults, hydrothermal alterations and the presence of irregular veins. In this case, a total dilution of 12% is assumed, distributed as follows: 5% due to rock quality, 5% due to mining operations and 2% due to material handling. Recent reconciliations indicate existing site dilution is ~16.6%. However, a specialized blasting contractor is being brought on board in Q2 2025, and improved surveying practices are being implemented, along with better control of ore/waste handling (tracking what is in each re-handling bay and truck to prevent ore being loaded as waste, or vice-versa), all of which management believes will achieve the desired result.

A mining loss of 5% of diluted tonnes and ounces was included to account for material planned to be extracted, but lost through any or all of: poor blasting practices/results, losses into the backfill below, poor material control (ore being loaded as waste, or vice-versa), and other mining-related reasons. Recent reconciliations indicate existing site mining loss on gold is approximately 10.2%, however, the same improvements mentioned for reducing dilution should also result in significant improvements to mining losses and achievement of the desired result.

When the diluted gold grade and mined tonnes were obtained, the revenue of each shape was determined using process plant recovery and smelter terms. Costs were subsequently attributed to shapes as described in Section 12, and each shape’s marginal profit was calculated. Stope shapes with negative marginal profit were tagged as waste. Waste shapes located beyond the economic blocks (either above, below, or along strike) were discarded from the mine plan, whereas waste shapes between economic zones of a stope were retained as mining through them was unavoidable.

Any remaining waste shape that exceeded the marginal cut-off value (e.g. had to be mined regardless of economics to reach economic ore, and whose revenue from processing would exceed the cost of transport to the mill, processing, and backfilling) were tagged as marginal. At this point, all remaining waste shapes were re-costed as per Section 12. Subsequently, the overall economics of the stope were evaluated utilizing the sum of marginal profits of marginal and economic ore, and stopes that generated negative values were either optimized until they made a profit, discarded from the mine plan. An example of this evaluation is shown in Figure 13.5.

Figure STYLEREF 1 \s 13. Example of Stope Containing Waste, Marginal and Economic Material (La Mochomera, EL 497)

Source: This Report

13.5 Development Mining

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All mine development and ore production is carried out by specialized contractors, in compliance with technical and safety standards. DynaResource provides various services that assist the execution of mining activities (construction, survey, and electrical/mechanical maintenance in addition to some supervision). An organizational chart of the mine operations is shown in Figure 13.6.

Various development types and profiles are utilized in the mine.

Development profiles are shown in Table 13.3.

Table STYLEREF 1 \s 13. <br>Development Profiles
Development Profile		Average Price Across All 3 Contractors<br><br>($US/m)
Width<br><br>(m)	Height<br><br>(m)
3.50	3.50	831.93
3.00	3.00	780.79
2.50	2.50	647.91
2.00	2.20	521.23
1.5 diameter raise		446.66

Different profiles are used for different purposes, as described in the sub-sections below.

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Figure STYLEREF 1 \s 13. Organizational Chart

Source: This Report

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13.5.1 Ramps

Main access ramps are driven at 12%, well within the performance envelope of underground equipment, allowing the safe and efficient transit of vehicles and heavy machinery (Figure 13.7).

Figure STYLEREF 1 \s 13. Ramp Development Standard

Source: This Report

13.5.2 Accesses and Sumps

Accesses are driven perpendicularly off of the ramp to intersect the veins with a slope of -15% (this slope is adjusted as the vertical cut of the vein is raised). After intersecting the vein, an additional 10 m of development is carried out, which is used for pumping sumps to assist in development on the vein (Figures 13.8 and 13.9).

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Figure STYLEREF 1 \s 13. Access Development Standard

Source: This Report

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Figure STYLEREF 1 \s 13. Sump Development Standard

Source: This Report

13.5.3 Sills

Development of the vein is carried out within a section of 2.0 m in width and 2.2 m in height. This development is driven at full profile (ore and waste are taken in the same blast), resulting in high dilution but increased productivity (Figure 13.10).

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Figure STYLEREF 1 \s 13. Sill Development Standard

Source: This Report

13.5.4 Loading Bays

Loading bays are strategically located on the main ramp, opposite accesses. These loading bays allow the filling of haul trucks for subsequent transport to the surface. The development standard is the same as the ramp except the gradient is +2%.

13.5.5 Ventilation System

The main ventilation system is located on the ramp, ensuring adequate airflow throughout the mine. Ventilation raises of 1.5 m diameter connect at each level with ventilation crosscuts. Bulkheads and regulators are constructed in the ventilation accesses to direct the airflow as necessary (Figure 13.11).

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Figure STYLEREF 1 \s 13. Ventilation Access Development Standard

Source: This Report

13.5.6 Standard Level Design

Levels are developed to a standard plan, as shown in Figure 13.12.

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Figure STYLEREF 1 \s 13. Standard Mining Level Plan

Source: This Report

13.6 Development Schedule

The mine development plan averages ~25 m per day (mpd) from 2025 to 2028, and then declines as development is completed in 2029.

Development cost distribution is: 57% of the scheduled development is allocated to operating expenses (OPEX); 43% is allocated to capital expenditures (CAPEX) which is intended for the construction of mine infrastructure.

The development schedule plans that all required access to the Mineral Resource will be achieved by 2029, with all the necessary infrastructure in place for ore extraction. However, active production will continue until 2031, allowing for the full exploitation of the Mineral Reserves. The mine development schedule is shown in Figure 13.13.

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Figure STYLEREF 1 \s 13. Mine Development Schedule

Source: This Report

Development quantities by period and profile are shown in Table 13.4.

Table STYLEREF 1 \s 13. <br>Mine Development Quantities (meters)
Year	2025	2026	2027	2028	2029	Total
Profile
3.5 x 3.5	3,336	3,296	2,760	3,474	1,766	14,632
3.0 x 3.0	1,674	1,880	1,510	1,566	990	7,620
2.5 x 2.5	542	568	588	408	460	2,566
2.2 x 2.0	3,218	2,432	2,686	3,260	1,096	12,692
D 1.5	435	332	323	459	281	1,829
Total	9,205	8,508	7,867	9,167	4,593	39,339

13.7 Mine Production

The mine operates under a contractor model, meaning that an external company is responsible for the extraction, transportation and processing of the ore. This allows the owner to reduce fixed costs and operational risks. No investment in fleet equipment is required for mine development and production. Contractors can adjust their capacity according to the mine's needs and bring the expertise required to achieve the desired productivity.

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The current mine plan has a production rate of approximately 230 ktpa. Historical average production capacity of 856 wet metric tonnes of ore per day at 5% moisture. However, an appreciable portion of these tonnes are diluting waste or newly discovered material that does not meet the required confidence level to be included in Mineral Reserves). Over the period encompassed by the mine plan (2025 to 2031), the average ore grade is 4.9 grams of gold per diluted tonne on 1.61 Mt for a total of 234.5 Moz Au, along with a small incidental Ag byproduct. Silver is not sampled for or included in the block model, and therefore Ag Mineral Reserves are not reported as part of the mine plan.

13.7.1 Mine Plan Summary

The annual ore mining plan is shown in Table 13.5.

Table STYLEREF 1 \s 13. <br>Annual Ore Mining Plan
Item	Year	2025	2026	2027	2028	2029	2030	2031	Total
Mined Tonnes<br><br>(k)	Ciseña	-	1	9	7	28	28	-	74
	La Mochomera	98	89	61	12	83	6	-	348
	La Unión	-	-	11	91	85	-	-	187
	Purísima	-	-	-	23	31	181	217	453
	San Pablo	52	30	130	100	9	-	-	321
	San Pablo Sur	25	48	26	-	-	-	-	99
	Tres Amigos	56	64	5	-	-	-	-	125
	Total	231	232	243	232	235	216	217	1,607
Contained Gold Mass<br><br>(koz Au)	Ciseña	-	0.1	2.9	2.0	6.3	8.2	-	19.4
	La Mochomera	12.4	14.9	9.7	1.6	13.7	1.2	-	53.6
	La Unión	-	-	1.8	13.0	12.6	-	-	27.4
	Purísima	-	-	-	3.0	3.9	21.4	29.0	57.2
	San Pablo	11.5	4.2	22.6	20.4	1.8	-	-	60.4
	San Pablo Sur	5.7	8.4	5.3	-	-	-	-	19.4
	Tres Amigos	6.5	9.0	0.6	-	-	-	-	16.0
	Total	36.1	36.7	42.8	39.9	38.3	30.8	29.0	253.5
Head Grade<br><br>(g/t Au)	Ciseña	-	2.92	9.93	8.52	6.99	8.96	-	8.20
	La Mochomera	3.96	5.23	4.96	4.20	5.15	6.29	-	4.79
	La Unión	-	-	4.88	4.46	4.62	-	-	4.56
	Purísima	-	-	-	3.99	3.93	3.66	4.14	3.93
	San Pablo	6.80	4.41	5.41	6.34	6.45	-	-	5.86
	San Pablo Sur	7.15	5.45	6.24	-	-	-	-	6.08
	Tres Amigos	3.61	4.36	3.41	-	-	-	-	3.98
	Average	4.86	4.92	5.49	5.33	5.06	4.43	4.14	4.91

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13.7.2 Production Sequence

The cut-and-fill stope development sequence is outlined below and shown in Figures 13.14 and 13.15:

Access

 An access ramp is driven off the main ramp to cross-cut the vein. Since mining progresses upwards, the back of the access ramp is slashed down, with the broken rock used to bring up the floor to allow access to each sequential overhand lift as needed.

 From the access, a full-face sill drift is driven on the bottom lift of the stope to the lateral extents of the ore. In cases where the stope strike extends further on higher lifts, full-face development is used to extend the lift as needed to access the ore.

Ore Production

 The ore is extracted in controlled-height vertical lifts using jack-leg drills for drilling. The height of lifts is limited by steel length and vein inclination, blasthole length is limited to 1.5 m.

 Extracted ore material is trammed to a loading bay and for loading into trucks. Trucks may also utilize the loading bay to dump waste backfill in for eventual placement in the stope by LHD.

Backfill

 Unconsolidated rock fill is generated by waste development and used as backfill to stabilize the voids after ore extraction and preparation for the next ore lift. Backfill of this type is placed with an LHD. Some backfill is generated from footwall slashing to provide sufficient clearance for mining equipment on the next lift in the sequence.

 Where insufficient development waste exists, surface quarrying is used to supplement the development waste for use in backfill.

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Figure STYLEREF 1 \s 13. Cut-and-Fill Cross-Section View of Access Development Sequence (View Bottom to Top)

Source: This Report

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Figure STYLEREF 1 \s 13. Cut-and-Fill Longitudinal Section View Development Sequence (View Bottom to Top)

Source: This Report

13.7.3 Waste Backfill

The use of unconsolidated waste material for backfilling in the cut-and-fill mining method is a technically and environmentally sustainable strategy, reducing costs and carbon emissions versus using cemented backfill.

13.7.3.1 Sources of Waste Material

The waste material is obtained from three sources:

Production areas where there is no commercially valuable ore and access to, or recovery of economic zones requires mining (includes footwall slashing for equipment clearances);
Development waste from lateral and vertical capital development; and
Surface quarrying.

13.7.3.2 Waste Rock Production

The annual production of waste material, showing the expected tonnage each year, is summarized in Figure 13.16.

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Figure STYLEREF 1 \s 13. Mine Backfill Requirements

Source: This Report

13.8 Services

13.8.1 Service Water

The water used comes from inside the mine, primarily collected from:

 Natural fractures: Groundwater that seeps through rock fractures is collected; and

 Exploration drill holes: During exploratory drilling activities, aquifers or water-bearing veins are intercepted and utilized.

The collected water is pumped to the surface and stored in 10,000-liter tanks. These tanks act as reservoirs to ensure a continuous and stable supply, which is then fed into the supply system for various needs (drilling, equipment cooling, dust suppression).

For water service standardization, the main line uses 100 mm diameter piping along the ramp and ventilation raises. The secondary line uses 50 mm diameter piping, and the final delivery is through 25 mm diameter piping.

13.8.2 Dewatering

Mine dewatering is carried out through a system of auxiliary sumps located along the main ramps. The size of the sumps is designed to handle the expected water flow and ensure efficient pumping. These sumps are equipped with 11 kW pumps, forming a sump circuit every 30 meters of head (vertical height). This setup overcomes the water column and ensures efficient pumping.

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This distribution prevents pump overload and ensures uninterrupted water transport. One hundred mm diameter piping is used to transport water through the sump circuit to the surface. This diameter is suitable for handling the flow generated by the 11 kW pumps and minimizes friction losses. The pumping flow rate is 5 liters per second (“l/s”), and the water is transported to the surface to be stored in 10,000-liter tanks before being used for mine services.

13.8.3 Compressed Air

This service originates on the mine surface using diesel-powered compressors. The service is standardized with 100 mm diameter piping in the main line (ramp and ventilation raises), 50 mm diameter piping in the secondary line, and 25 mm diameter piping for final delivery. The primary users of compressed air in the mine are:

 Drilling: Compressed air is used to power the pneumatic hammers of drilling machines, providing the energy needed to drill rock;

 Cleaning: Compressed air is also used to clean drill holes after drilling, removing dust and rock fragments; and

 Other Pneumatic Equipment: It can be used to operate other pneumatic tools, such as hammers, impact wrenches, and auxiliary ventilation systems.

13.8.4 Electrical Power

The main distribution network is supplied by diesel-powered generators located on the mine surface. The main power line, utilizing a distribution current of 480 volts, is routed through ventilation raises, connecting the surface to the lower levels of the mine. In some sections, the ramp is also used as part of the main line. The following are the primary power draws in the mine:

 Drilling Equipment (Jumbos): Electric drilling machines are powered by the network for drilling activities;

 Pumping: Electric pumps used for water management are powered by the network;

 Ventilation: Electric fans that ensure air injection and extraction are powered by the network;

 Exploration and Delineation Machines: Specialized equipment for exploration and orebody delineation is also powered by the network; and

 Cables and Conductors: High-resistance cables with special insulation are used to withstand the adverse conditions of the mine, such as humidity, dust, and vibrations. Distribution panels allow for the control and protection of electrical circuits, including switches and devices for overload and short-circuit protection.

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13.8.5 Ventilation

The ventilation system in the mine is essential to ensure a safe and healthy environment for workers, as well as to maintain optimal operating conditions. The main objectives are:

 Supply a constant flow of fresh air to working areas.

 Extract contaminated air, removing gases, dust, and other pollutants generated during mining operations.

 Control temperature and humidity, maintaining suitable conditions for worker comfort and safety, as well as the proper functioning of operating equipment.

The ventilation system uses a pull system, whereby fans pull fresh air into the mine via development openings, and exhaust the air through raises to surface. Exhaust raises are fitted with 150 kW main fans. Areas without primary ventilation (ramp extensions) have fresh air provided via 812 mm diameter ducting and 56 kW auxiliary fans, while production areas are serviced by 19 and 37 kW auxiliary fans in ducting of 610 and 355 mm, respectively.

The ventilation circuit as shown in Figures 13.17 and 13.18 is designed following the recommendations of a specialist mining ventilation consultant (Ing. Alfredo De Haro Rodarte, Ing Jorge Edgar Olivares Garcia), and considers factors such as:

 Required airflow rate, calculated based on the number of workers, equipment, and type of operation;

 Static pressure, determined by the length and diameter of the ducts, as well as friction losses; and

 Air distribution, ensuring that all areas of the mine receive an adequate flow of fresh air.

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Figure STYLEREF 1 \s 13. San Pablo-Mochomera Mine Ventilation System

Source: This Report

Figure STYLEREF 1 \s 13. Tres Amigos Mine Ventilation System

Source: This Report

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The mine functionally has two ventilation circuits, one for Tres Amigos and Cisena, and one for the rest of the mine. The Tres Amigos area nominally requires a total of 39 m3/s of fresh air to efficiently support operation. Recent measurements in December 2024 showed total exhaust flow of 37 m3/s, slightly less than that requirement. The remaining mining area require 49 m3/s of fresh air to efficiently support operations. Recent measurements in December 2024 showed total exhaust flow of 31 m3/s. Upgrades to the ventilation system are being evaluated by management.

13.8.6 Diesel Supply

Diesel is transported by rented tanker trucks, which are specifically designed for the safe transport of liquid fuels. These tankers comply with safety regulations and are equipped with spill and leak prevention systems. DYNA drivers are responsible for operating the tankers and ensuring that diesel is transported safely and efficiently to the mine facilities in SJG. The frequency of tanker trips depends on the daily diesel consumption at the mine.

Diesel is stored in two tanks, one with a capacity of 20,000 litres and another with 10,000 litres. These tanks are specifically designed for liquid fuels, constructed with corrosion-resistant materials. They are equipped with ventilation systems to prevent the accumulation of flammable vapors, fire protection systems, and secondary containment to prevent spills in case of leaks. An inventory control system is in place to maintain accurate records of diesel inventory, including stored quantities, daily consumption, and received deliveries.

Diesel is dispensed daily according to the needs of various equipment, primarily for electric generators, heavy machinery, compressors, and transport vehicles.

In terms of safety and environmental considerations, measures are implemented to prevent diesel spills, such as the use of secondary containers and leak detection systems. Diesel waste, such as used filters or contaminated oils, is managed in accordance with environmental regulations. Personnel responsible for diesel handling receive training in safety and emergency procedures.

13.9 Equipment for Development and Production

Contractors are responsible for providing and operating the equipment necessary for ore production. This includes heavy machinery such as:

 Haul Trucks: For the transport of ore and waste material;

 Jack Leg and Jumbos: For drilling blast holes in blasting operations and ground support; and

 Scoop Tram: production and development support.

Contractors handle all maintenance and operation of the equipment, reducing DYNA's operational burden. Contractors can adjust the equipment fleet according to the mine's needs. The major pieces of equipment in the fleet are seen in Table 13.6.

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Table STYLEREF 1 \s 13. <br>Mine Equipment Fleet
Classification	Type of Equipment	Quantity	Capacity
Development	Scoop Tram	8	2.7 m3
Production / Backfill	Scoop Tram	10	1.9 m3
Production / Backfill	Scoop Tram	1	1.5 m3
Development	1 Boom Jumbo	2	4.9 m
Development	1 Boom Jumbo	2	3.7 m
Development / Production	Haulage Truck	12	7 m3
Development/Ground Support	Jack Leg	33	1.8 or 2.4 m

13.10 Service Equipment

DYNA provides the contractor with the benefit of certain services equipment, retaining direct control over its use and maintenance. Some equipment is rented, some is owned. Renting equipment reduces the initial investment and long-term maintenance costs. Maintenance for all service equipment is carried out by a specialized contractor, ensuring the service life of the equipment.

The equipment provided by Dyna for services is listed in Table 13.7.

Table STYLEREF 1 \s 13. <br>Equipment Provided by Dyna
Classification	Type of Equipment	Number	Capacity	Owner
Electric Service	Power generator	1	375 kW	DYNA
Electric Service	Power generator	1	335 kW	DYNA
Electric Service	Power generator	1	375 kW	Rented
Compressed Air Service	Diesel-Powered Compressor	1	350 l/s	DYNA
Compressed Air Service	Diesel-Powered Compressor	2	350 l/s	Rented
Compressed Air Service	Diesel-Powered Compressor	1	425 l/s	DYNA
Ore hauling	Front-End loader	3	3.5 m3	DYNA

13.11 Haulage Routes

Two main haulage routes have been identified, corresponding to the material handling yards designated as San Pablo Yard and Tres Amigos Yard. Both routes exhibit variable topographic characteristics, with segments of different elevations and slopes, which influence the operational efficiency of mineral transport.

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13.11.1 Route to San Pablo Yard

The length of this haul route is 4.8 km and has an elevation change of approximately -220 m (Figure 13.19).

Figure STYLEREF 1 \s 13. San Pablo Haul Route and Elevation

Source: This Report

13.11.2 Route to Tres Amigos Yard

The length of this haul route is 8.0 km and has an elevation change of approximately -260 m (Figure 13.20).

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Figure STYLEREF 1 \s 13. Tres Amigos Haul Route and Elevation

Source: This Report

The extracted ore is temporarily stored in the designated yards, where an ore control evaluation is conducted to determine the ore's characteristics and its final destination stockpile at the processing plant. This process ensures the quality and consistency of the material sent for processing.

13.11.3 Loading and Haulage Equipment

The owner provides a front loader equipped with a weighing scale, responsible for loading the material onto the haulage trucks. At the end of each shift, the loader generates a detailed digital report that includes:

 Hauled tonnage.

 Number of trips made.

 Haulage hours.

The haul trucks used are operated by regional contractors and are designed to transport the material from the handling yards to the process plant. The truck fleet is monitored to ensure transport efficiency and meet production requirements.

The variability of the terrain on both haulage routes necessitates constant preventive maintenance of the equipment, as well as detailed planning of transport schedules to maximize operational efficiency. Additionally, the reports generated by the front loader allow for precise control of production and equipment performance.

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13.11.4 Mine Personnel

The mine operates on a continuous schedule, with two 12-hour shifts running 7 days a week to ensure uninterrupted production. The total workforce consists of 689 personnel, including 226 company employees and 367 contractors.

Contractors represent 53% of the workforce, providing operational flexibility and specialized expertise in key areas such as drilling, haulage and backfill operations.

All personnel, including contractors, are required to complete safety training and certification programs to ensure compliance with industry standards and maintain a safe working environment.

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14.0 Processing and Recovery Methods

14.1 Process Design Criteria

The SJG Project process plant has a nominal throughput rate of 800 tpd and consists of a conventional two-stage closed crushing circuit, a mill feed system for three primary grinding mills operated in closed circuit with hydrocyclones, a multi-stage flotation process for gold-pyrite and gold-chalcopyrite sulfide concentrate, and a tailings Sepro SB750 centrifugal gravity concentrator. The final flotation concentrate is thickened, dewatered, and bagged for shipping to a smelter along with the gravity concentrate.

Flotation tailings are pumped to a wet tailings area located 360 m northeast of the process plant at 73 m elevation. The tailings are decanted and the collected process water is returned to the plant’s internal water distribution system.

The QP visited the SJG Project process plant between February 24 and 27, 2024 and confirms that it is operating at an acceptable level with required improvements underway and planned for 2025. Processing improvements and on-going maintenance are priorities for the SJG management team, and these initiatives will continue to improve process operation in terms of process steady state, minimize operational downtime, and increase and optimize recovery and concentrate production.

Feed grades and monthly processing rates for 2024 were highly variable (Figure 14.1). Improvements and consistency in early 2025 have been reported.

Figure STYLEREF 1 \s 14. Process Plant Milling Rates and Feed Grades 2024

Source: Dyna (2025)

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14.2 Process Flowsheet and Description

The SJG Project process plant includes but not limited to the following:

 Two-Stage Crushing System

o Primary 24 inches x 36 inches Jaw Crusher.

o 4 ¼ ft Short Head Cone Crusher.

o ½ inch F50 for Mill Feed.

 Transfer Conveyors

o 6 ft x 16 ft Multi-Deck Vibrating Screen.

 Three (3) Primary Ball mills

o 500 Hp 8 ft dia. X 12 ft L.

o 300Hp 8 ft dia. X 88 ft L.

o 150 Hp Conical 8 ft dia. X 48 inches.

 Closed Circuit Mills with D15 and D10 cyclones producing cyclone overflow of P50 of 200 mesh (74 µm).

 Two (2) Secondary Ball Mills

o 150 Hp Conical Mill 8 ft dia. X 36 inches.

o 100 Hp 6 ft dia. X 6 ft L.

 Conditioning Tank 8 ft dia. X 8 ft.

 Two(2) Banks of three (3) Hybrid Flotation Cells

o Rougher and Scavenger 6 ft dia. X 12 ft.

 First Cleaner Flotation: Six (6) Denver No. 24 (50 ft3/cell) Sub A.

 Two Banks of Three (3) Hybrid Second Cleaner Flotation Cells 6 ft dia. X 12 ft.

 One Falcon SB 750 Centrifugal Concentrator.

 Concentrate Thickener 16 ft dia. X 12 ft*.

 Chamber Concentrate Filter Press, 1,000 mm plates (not in operation during site visit).

 Associated Milling, Flotation and Tailings Pumps.

 Reagent Feeding Pumps and System.

Process equipment is illustrated in the Figures 14.2 to 14.11 below.

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Figure STYLEREF 1 \s 14. Mined Feed from Three Mineralized Zones

Source: D.E.N.M. (2025)

Figure STYLEREF 1 \s 14. Coarse Mineralized Material Bin

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Source: D.E.N.M. (2025)

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Figure STYLEREF 1 \s 14. 500 Hp Primary Ball Mill Circuit 8 Feet Diameter by 12 Feet Long

Source: D.E.N.M. (2025)

Figure STYLEREF 1 \s 14. 300 Hp Primary Ball Mill Circuit 8 Feet diameter by 8 Feet Long

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Source: D.E.N.M. (2025)

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Figure STYLEREF 1 \s 14. Crusher Mill Mineralized Material Feed

Source: D.E.N.M. (2025)

Figure STYLEREF 1 \s 14. Rougher and Scavenger Hybrid Flotation Cells

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Source: D.E.N.M. (2025)

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Figure STYLEREF 1 \s 14. Denver Cleaner Flotation Cells

Source: D.E.N.M. (2025)

Figure STYLEREF 1 \s 14. Concentrate Dewatering Pits

Source: D.E.N.M. (2025)

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Figure STYLEREF 1 \s 14. Concentrate Bagged for Shipping

Source: D.E.N.M. (2025)

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Figure STYLEREF 1 \s 14. Process Flowsheet

Source: Dyna (2025)

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14.3 Summary of Mass and Water Balances

14.3.1 Tailings Water Management

As noted, flotation tailings are pumped to a wet tailings area located 360 m northeast of the process plant at 73 m elevation. The tailings are discharged at ~25% density and decanted via a berm collection system. Modifications to the pumping and tailings area are on-going with new tailings pumps and expanding tailings area. At present cycloning of the tailings is not utilized.

Based on a 629 tpd process plant throughput rate, pumping to the tailings area is at a rate of 391 USGPM (88.7 m3/h). This rate is based on operational data: solids S.G. = 2.6; slurry density = 25%; and slurry S.G. = 1.16. The resultant placed tailings will decant to 80% solids (i.e., 20% in-situ moisture). Decanted recycle water via the berm and water collection system is gravity fed back to the process plant at a rate of 317 USGPM (72 m3/h). Water make-up for the process plant operation only is 29 USGPM (6.6 m3/h) (refer to Figures 14.12 to 14.15).

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Figure STYLEREF 1 \s 14. Tailings Pit

Source: Dyna (2025)

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Figure STYLEREF 1 \s 14. Lined Tailings Storage Facility

Source: D.E.N.M. (2025)

Figure STYLEREF 1 \s 14. Newly Constructed Tailings Berm Facility

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Source: D.E.N.M. (2025)

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Figure STYLEREF 1 \s 14. Tailings Decanted Water Recovery – Gravity flow to Mill

Source: D.E.N.M. (2025)

14.3.2 Plant Water Supply

Water for the process plant is collected from a borehole located west/southwest from the process plant. The supply is complete with a pump and level and flow control system. The borehole is reportedly self-charging, and instances of low water flow have not been reported. During the wet system, water is abundant in the valley and collected accordingly (refer to Figure 14.16).

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Figure STYLEREF 1 \s 14. Process Plant Water Borehole and Pumping System

Source: D.E.N.M. (2025)

14.4 Products and Recoveries

Processing plant statistics for 2024 are presented below in Table 14.1 and for processing plant statistics for 2025 are presented in Table 14.2. On-going improvements and mechanical reliability are expected to improve production.

Further details on production and concentrates sold in 2024 are provided in Table 14.3.

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Table STYLEREF 1 \s 14. <br>Process Plant Statistics, 2024
2024	Tonnes Processed	Days	Head Grade			Concentrate				Rec %	Sales by Month
			Au <br>(g/t)	Au <br>(kg)	Au<br>(oz)	DMT<br>Monthy	Au <br>(g/t)	Au <br>(kg)	Au<br>(oz)	Au	US$	DMT<br><br>Monthy	Au (g/t)	Gross Gold Oz Monthy
Jan	14,583	30	4.43	64.619	2,078			52.150	1,677	80.70	1,766,427	702.06	44.22	998
Feb	22,740	29	4.54	103.140	3,316			81.461	2,619	78.98	3,741,691	1,085.58	54.39	1,898
Mar	24,009	31	4.41	105.984	3,407			83.939	2,699	79.20	3,920,739	1,130.05	50.72	1,843
Apr	21,099	28	4.16	87.773	2,822	1,478	44.53	65.830	2,116	75.00	3,327,393	970.26	50.15	1,564
May	23,808	31	4.05	96.422	3,100	1,361	52.23	71.077	2,285	73.72	4,639,964	1,241.24	53.78	2,146
Jun	21,868	30	3.50	76.601	2,463	1,194	47.65	56.911	1,830	74.30	3,479,433	1,079.16	47.00	1,631
Jul	21,215	30	3.82	81.123	2,608	1,115	54.30	60.543	1,947	74.63	3,924,645	1,242.83	44.42	1,775
Aug	17,598	24	3.78	66.492	2,138	1,035	48.11	49.806	1,601	74.91	2,966,670	807.96	50.41	1,310
Sept	23,087	30	3.75	86.575	2,783	1,420	45.84	65.077	2,092	75.17	4,494,699	1,370.12	44.07	1,941
Oct	25,596	31	4.17	106.653	3,429	1,425	57.32	81.677	2,626	76.58	6,432,513	1,513.03	56.02	2,725
Nov	23,108	30	4.02	92.862	2,986	1,348	50.35	67.861	2,182	73.08	4,821,435	1,229.90	52.31	2,068
Dec	18,966	29	4.18	79.299	2,550	1,214	50.42	61.198	1,968	77.17	4,910,100	1,326.30	49.34	2,104
Total	257,676	353	4.07	1047.542	33,679			797.530	25,641	76.13	48,425,710	13,698.49	49.96	22,003

Source: DynaResource (2025)

Notes: Rec = recovery, DMT = dry metric tonne.

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Table STYLEREF 1 \s 14. <br>Process Plant Statistics, 2025
2025	Tonnes Milled	Days	Ore Head			Concentrate				Rec %	Sales by Month
			Au <br>(g/t)	Au <br>(kg)	Au<br>(oz)	DMT<br>Monthy	Au <br>(g/t)	Au <br>(kg)	Au<br>(oz)	Au	US$	DMT Monthy	Au<br><br>(g/t)	Gross Gold Oz Monthy
Jan	22,889	31	3.82	87.369	2,809	1291	50.18	64.801	2,083	74.17	4,731,239	1,238.04	49.74	1,980
Feb	21,614	28	3.51	75.955	2,442	1211	46.37	56.162	1,806	73.94	4,651,182	1,270.01	46.73	1,908
YTD	44,504	59	3.67	163.324	5,251			120.963	3,889	74.06	9,382,420	2,508.05	48.22	3,888

Source: DynaResource (2025)

Notes: Rec = recovery, DMT = dry metric tonne, YTD = year to date.

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Table STYLEREF 1 \s 14. <br>Detailed Process Plant Production
Month	Sales<br><br>by Month	WMT<br><br>by Month	DMT<br><br>by Month	Gold<br><br>(g/t Au)	Gross<br><br>Gold Oz<br><br>by Month	Gold Oz<br><br>aft .5% 7%<br><br>by Month	Recovered<br><br>Oz at<br><br>Plant
Jan	1,766,426.96	791.40	702.06	44.22	998.11	993.12	1,676.65
Feb	3,741,690.50	1,221.03	1,085.58	54.39	1,898.17	1,888.68	2,619.03
Mar	3,920,738.99	1,263.48	1,130.05	50.72	1,842.71	1,833.50	2,698.68
Apr	3,327,393.49	1,084.99	970.26	50.15	1,564.32	1,556.50	2,116.47
May	4,639,963.81	1,386.11	1,241.24	53.78	2,146.06	2,135.33	2,285.16
Jun	3,479,433.23	1,202.41	1,079.16	47.00	1,630.88	1,622.72	1,830.00
Jul	3,924,644.72	1,387.27	1,242.83	44.42	1,774.86	1,765.99	1,946.50
Aug	2,966,670.45	900.62	807.96	50.41	1,309.59	1,303.04	1,601.30
Sep	4,494,699.14	1,526.59	1,370.12	44.07	1,941.13	1,931.43	2,092.29
Oct	6,432,512.67	1,684.81	1,513.03	56.02	2,725.01	2,711.38	2,447.00
Nov	4,821,435.18	1,369.36	1,229.90	52.31	2,068.37	2,058.03
Dec	4,910,100.50	1,477.74	1,326.30	49.34	2,104.06	2,093.54	1,968.00
Total	48,425,709.65	15,295.81	13,698.49		22,003.29	21,893.27	23,281.07

Source: DynaResource (2025)

Prior indications of discrepancies in delivered and received assayed grades and weights are currently being addressed. Final concentrate samples are now sent to a third party and discrepancies have been reduced and minimized.

As San José de Gracia Mine is currently in operation, Dyna de Mexico provided the 2024 operation costs shown in the Table 14.4 and Table 14.5. Costs and parameters were reviewed and discussed during Author’s site visit. Labor, power, consumables and associated costs were also confirmed. Power demand for the process plant is 1,460 kw and is supplied by Comision Federal de Electricidad (“CFE”) at a cost of $US 0.13/kwh adjusted for peak usage.

Table STYLEREF 1 \s 14. <br>Process Operating Cost Summary
Processing	Cost/Month<br><br>(US$)	Processed<br><br>(US$/t)	Total<br><br>(%)
Labor (Burden Included)	$566,833	$4.23	17.1%
Power and Fuel	$911,167	$6.80	27.4%
Maintenance and Operating Consumables	$1,342,750	$10.03	40.4%
Support Equipment	$503,083	$3.76	15.1%
Total	$3,323,833	$24.82	100.0%

Source: DynaResource (2025)

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Table STYLEREF 1 \s 14. Process Operating Costs Details
Details of Plant Operating Costs & Consumptions	MxP:US-202
Labor Costs (21 Personnel)	XN/persona
Power Costs	US/kwh
Plant Consumables
Grinding Media	kg/tonne
Reagents	Q
	g/t
	g/t
	g/t
	g/t
	g/t
Crusher Liners
Mill Liners







Processed (US/t)

All values are in US Dollars.

Source: DynaResource (2025)

Notes: 1 80,974 is the MxP conversion for labour to US$. 2 The conversion rate used is 20MxP: 1 US$.

14.4.1 Sampling and Analysis

Process plant sampling is prepared and assayed on-site at a metallurgical and assay facility. Plant sampling is limited and only the feed, tailings, and concentrates are manually sampled by the operators, sporadically during the day. No automatic samplers are currently utilized, but are strongly recommended. Additional mine and process plant feed samples from the three mineralized deposits are also assayed for grade control and metallurgical confirmation.

There is currently one process weightometer belt scale on the main process plant feed conveyor. Additional units are recommended on the individual feed belts to ensure increased metallurgical balancing of the process plant.

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The laboratory has full sample preparation equipment, such as crushers, riffles, screens, and drying ovens for mine and process plant samples. The assay laboratory is equipped with an atomic adsorption spectrometer unit (“AAS”), micro-balance, and fire assay equipment.

The facility has 21 personnel dedicated for analysis and operates 24 hours per day.

The laboratory is currently not certified to any standards. Additional capital spending is budgeted to upgrade the laboratory to acceptable standards.

14.4.2 Metallurgical Testing and Process Audits

On-going metallurgical testing continues with the gravity and flotation process and planned testwork for 2025 will focus on confirmation and optimization of recoveries and grades.

On-site sampling and process plant audits have been initiated on the rougher and scavenger flotation circuit with results demonstrating better process understanding and plant operating strategy.

14.5 Recommendations for Operational Improvements

As noted, the process plant is operating at an acceptable level with required improvements underway and planned for 2025. Processing improvements and on-going maintenance are priorities for the SJG management team, and these initiatives will continue to improve process operation in terms of process steady state, minimize operational downtime, and increase and optimize recovery and concentrate production.

Current and planned improvements include:

 Crushing circuit improvements to ensure consistent F80 feeds size for milling circuit;

 Improve overall circuit sampling and metallurgical balances to ensure monthly reconciliation;

 Installation of automatic samplers is recommended;

 Improve mill feed split to the three (3) primary grinding circuits as current manual gates for splitting feed and actual tonnage rates are unknown;

 Strategic installation of weightometers is recommended, preferably belt scales;

 Control loop with variable speed drives to ensure consistency to mill feed and avoid surges within the circuit;

 Gravity concentrators within the mill circuit;

 Flotation level control on cells; including rougher cells no. 1 and no. 2;

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 Revamp existing rougher and scavenger cells;

o Replace existing improper agitators with proper flotation impellers and diffusers, and

o Improved air introduction into the cells via the shaft

 Improve concentrate dewatering and filtering;

o Proper operation of concentrate thickener and existing chamber press to ensure and minimize resultant shipping moistures; and

 Upgrade site security with cameras and new fencing around plant and concentrate areas.

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15.0 Infrastructure

15.1 Access and Roadways

The SJG Project consists of a remote, stand-alone, operating mine and process plant complex located ~160 km north-northeast of Culiacan, the Capital of Sinaloa and the nearest major city. For this reason, DynaResource’s operation requires a significant degree of independence from publicly provided infrastructure, such as roadways, road maintenance, public transportation, and municipal services. Most of these services and related infrastructure are provided by the mine operation and a good deal of this is shared with and (or) benefits the communities in which they operate, or through which they transit. There is one major roadway to the Village of San José de Gracia, although other trails and tracks exist which can be periodically transited (mainly during the dry season) which enable transport out of the area over very rough terrain. For emergencies or expeditious purposes, air access is available to the town by single engine airplane.

15.1.1 External Access and Roadways

The only reasonably secure road access to the SJG Project, where DynaResource’s operations are located is over 84 km of ballasted road to the Town of Sinaloa de Leyva. The time required for this trip is ~4 hrs. Most of this road is in reasonably good condition in the dry season (October through June) and can be transited freely by vehicles of up to twenty tonne capacity except for short intervals which require more frequent maintenance due to minor embankment slumping and occasional small landslides. Some areas of poor ballast or road base have been worn down to hard rock requiring fill and grading. Additionally, due to the steep terrain, there are areas of very tight switchbacks which need to be periodically widened or re-graded to allow for transit by larger vehicles.

During the rainy season, additional maintenance is required as the above issues are exacerbated by the heavy thunderstorms and the resultant high flows in all water crossings. The road suffers from erosion of top cover and the formation of potholes during this season. Most of the maintenance required is on the 40 to 50 km section of this roadway closest to the SJG Project and other select portions, are maintained by Dyna de Mexico personnel or contractors directed by Dyna de Mexico.

Sinaloa de Leyva is a transportation hub for supplies, parts and concentrate shipments. From Sinaloa de Leyva to Guachumil, located on Federal Highway 15 the route is over paved surfaces for 70 km. However, the journey takes ~1-hr due to transiting through smaller towns.

From Guachumil, typical destinations for Dyna personnel would be:

 Culiacan for government filings, licenses and permissions, purchasing parts and supplies, and some technical services, such as motor and pump refurbishing. Air service to other cities in Mexico and to Dallas in the United States of America are also available;

 Mazatlán for parts, services, and some specialty equipment. Air service is available here for all parts of Mexico and direct service to the United States and Canada; and

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 Manzanillo for concentrate shipments.

Distances between these destinations are shown in Table 15.1.

Table STYLEREF 1 \s 15. <br>DynaResource’s Shipment and Supply Distances
	San José de Gracia	Sinaloa de Leyva	Guamuchil	Culiacan	Mazatlán	Manzanillo
San José de Gracia		84 km	154 km	280 km	513 km	1199 km
Sinaloa de Leyva	84 km		70 km	196 km	429 km	1113 km
Guamuchil	154 km	70 km		126 km	359 km	1043 km
Culiacan	280 km	196 km	126 km		233 km	952 km
Mazatlán	513 km	429 km	359 km	233 km		747 km
Manzanillo	1199 km	113 km	1043	952 km

15.1.2 Air Access

Within the San José de Gracia Village limits and <1 km (~650 m) from Dyna’s offices, there is a 665 m (2,200 ft) long airstrip surfaced in pea-sized gravel ~20 m wide. The airstrip runs somewhat west of north and slopes up-hill to the north. The only approach is from the south, and hence landings are slightly up-hill and take-off slightly downhill. The strip is suitable for single engine aircraft carrying up to 6 persons. Flying is normally limited to mornings, due to unpredictable winds and turbulence in the afternoons.

Flight for emergency repairs or other urgent matters are conducted from Mazatlán and Culiacan, Sinaloa. Flight time from Mazatlán is ~1 hr and 40 minutes, and 50 to 60 minutes from Culiacan.

15.1.3 Internal or Local Roadways and Transport

Currently active mine portals are located 6 and 7 km from the Village of San José de Gracia (Figure 15.1). The mine offices, camp, and process plant are located immediately adjacent to the town. The active tailings storage facility (“TSF”) is located 260 m from the process plant. Due to the steep terrain, and the adjacent town, a more circuitous route passing through San José de Graci Village and approaching the TSF from below requires 1.43 km of downstream buttress of the impoundment and 1.65 km to the current upper east end of the impoundment.

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Figure STYLEREF 1 \s 15. Map of Local Mining and Processing Facilities

Source: This Report

Roads and streets are typical of small rural communities, with the majority being composed of packed earth and gravel with local sections paved with concrete. More rural routes, such as those accessing the active mines, are intermittently ballasted earthen roads, generally 1.5 to 2 lanes wide with some restricted areas of one lane. Roadways are sufficient for the transportation of material in 20 tonne capacity double axel trucks and amply sized for light vehicle traffic. Some sections are steeper than would normally be recommended, due to difficult terrain reaching gradients of 12%.

15.2 Utilities

15.2.1 Electric Power

Power to the SJG Project site and process facility is supplied by the national grid and a power line installed and controlled by the Comision Federal de Electricidad (“CFE”). The 35 kV power line was installed in March 2012 from the La Estancia area of the Municipality of Sinaloa de Leyva that is ~45 miles (75 km) in length. There is an existing contract with CFE that guarantees and delivers 1,460 kW with cost of US$0.13/kWh with adjustment for peak usage.

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Power delivered is sufficient for the purpose of energizing the camp and process plant facilities. Power outages do occur, most frequently in late June through early September, the months of the heaviest rain fall. During power outages, the process plant can be operated using two diesel-fired generators providing 1,500 kW.

Electricity for underground operations is provided by generators located at the two mine portals. At Tres Amigos, there is a 500 kW Cummins 500 Generator. At the San Pablo Sur portal, serving San Pablo, San Pablo Sur and Mochomera, there are four separate generators, due to the much larger working area, more working faces, and a larger maintenance shop and office facility. All generators are manufactured by Cummins: three Cummins 500 models and one Cummins 450 generating 500, 500, 400 and 450 kW, respectively. All these generators are either owned or under long-term lease to Dyna de Mexico.

15.2.2 Water Supply

The water source for the SJG camp is from two water wells located close to the river that runs just west of the Village of San José de Gracia. Well No. 1 is located 220 m west of the process plant on the east side of the river and 290 m west southwest of the intermediate pump station located on the historical TSF. This well is serviced by a 43 kW Flygt pump. Well No. 2 is located 290 m northeast of the process plant and pumps by means of a Flygt 45 kW pump to the intermediate pump station on the historical TSF. The pump station is a small reservoir created on the historical TSF. Water from the reservoir moves to the process plant using a 20 kW flygt pump.

Dyna de Mexico has obtained the water concession rights through CONAGUA for this water source that provides for usage of 1,000,000 m3 per year. Currently, Dyna de Mexico estimates its consumption of water to be ~10,000 liters per week (520,000 liters/year).

Dyna de Mexico operates a small potable water plant such as those common throughout Mexico. Access to this water plant is shared with the community.

15.2.3 Waste and Wastewater

There are three main sources of wastewater associated with the Project: the process plant including the laboratory, the mines, and the man camp.

The process plant is currently operating as a zero-discharge facility. Make-up water is derived from the companies supply wells and 60% of water associated with the tailings is recovered and returned to the process plant. Laboratory waste of all types, including liquids, is streamed into the process plant water supply.

Mines in the district are notably dry. The small amounts of water generated and pumped is stored in tanks at mine portals, and is subsequently used for the needs of the mine and for dust control on the roads between the mine portals, the process plant stockpile and in areas of heavy traffic in the Village of San José de Gracia.

Waste water from the camp facilities is disposed of through a septic tank and percolation system. Disposal of residual solids is managed through a licensed contractor.

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Dyna maintains a solid waste landfill for solid waste. Hazardous waste is collected and disposed of by licensed contractors offsite.

15.3 Man Camp and Facilities

15.3.1 General

Dyna de Mexico manages a closed, dry camp adjacent to their process plant which provides housing, meals and basics services to a portion of their employees. Facilities are basic, however, adequate. Personal supplies and consumables are available in the adjacent Village of San José de Gracia. Other basic facilities such laundry and cleaning services are available for individuals during extended stays. The camp is connected by reliable internet service (Starlink).

15.3.2 Setting

San José de Gracia Village is a “Sindicatura” within the Municipality of Sinaloa, which has its headquarters in Sinaloa de Leyva. In 2025, the Village has a population of 2,500 inhabitants. This figures does not include small outlying villages (Ranchos) and larger individual holdings (haciendas). Some unknown percentage of the population split residency between San José de Gracia Village and other local communities such as Guamuchil and Culiacan.

The town is immediately southwest and adjacent to the company’s camp and process plant facilities and has a few shops providing limited food, clothing and other necessities. There are a few small snack bar type restaurants which do allow for a change from camp food for professional staff. A few services are available such as mechanics and residential construction. The town and environs provide >140 employees for the operation. There is no police presence in the town proper.

15.3.3 Housing

The mine site area camp maintains facilities which can accommodate about 65 persons in 32 rooms. Mine contractors manage their own camps for their personnel. The Village of SJDG has additional rooms via hotels and boarding houses. Out of a total workforce of 223 employees, 143 reside in SJDG. The company works a mix of 5/2, 14/7 and 20/10 rosters. Many of the senior staff are from outside the area and tend to work longer shifts to accommodate travel time. The camp provides reasonably comfortable, air-conditioned accommodation including sanitary facilities.

15.3.4 Dining

The kitchen is staffed by 5 full-time employees who deliver 4 to 5 meals per day either in a dedicated dining area or packed meals for individuals to take to their workstation. Approximately 80 people are provided with three meals per day. Most provisions from the kitchen come by truck from Guamuchil.

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15.3.5 Communication

There is phone service in the Village of San José de Gracia, but it is inconsistent and of poor quality. At the camp and mine sites, internet service is provided by Starlink services and many nodes are set up around camp. This service allows for VOIP communications worldwide and the efficient transfer of data although some accommodation needs to be made due to bandwidth with certain software. Large file transfers are best achieved using applications such as Whatsapp or WeTransfer.

15.3.6 Security

Dyna de Mexico’s camp is closed, and entry is restricted by a guard and gatehouse manned 24 hours per day. Additional security is stationed at explosive magazines.

15.3.7 Offices

Offices are available in the camp environment for various functions. Among these are human resources, purchasing, on-site accounting, community relations, safety, engineering, geology and surveying. There is also an available conference room with teleconferencing equipment allowing coordination with off-site upper management.

15.3.8 Medical Facilities

There is always a paramedic on site. Training for paramedics (TUM-B, and TUM-A) is provided and certified by the Cruz Roja De Mexico (Mexican Red Cross). A fully equipped ambulance is available on site in case of emergency. This vehicle can transport ill or injured patients to Guachumil or Culiacan as necessary. In case of more dire circumstances, Certified and experienced Air Ambulance service is available from Culiacan.

Under the authority of the Safety Supervisor, fully equipped first aid stations are in each mine, the camp site and within the process plant facility. First aid training is given to all staff, and employees are encouraged to enroll in qualification courses given through the Red Cross with the goal of increasing the number of TUM-B QP on-site.

Additionally, Dyna has built and equipped an 8-room medical clinic which is located ~100 m from the camp gate within the Village of San José de Gracia. This facility has been donated to local authorities. This will be staffed by a full-time physician and currently dental services are being offered.

DynaResource utilizes pre-employment drug and alcohol testing programs and random alcohol testing is utilized to determine fitness to work. Education programs on drugs and alcohol are also undertaken during safety, pre-shift and production meetings.

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15.3.9 Other Services

Residents of the camp have access to laundry and daily cleaning service. Treatment of minor medical problems is available through the paramedic on staff.

15.4 Off-Site Facilities

Due to the remote location of the SJG Project, the extended time necessary to access the Project area due to rural road conditions, and the inability of large capacity trucking to navigate the steep, highly difficult roadway between Sinaloa de Leyva and San Jose de Gracia, Dyna de Mexico maintains some facilities and employees off-site.

15.4.1 Sinaloa de Leyva

In Sinaloa de Leyva, Dyna de Mexico maintains a facility whose main purpose is to transfer concentrate, which arrives from the SJG Mine in San José de Gracia Village in 1.6 tonne super sacks carried by double axel, 18-tonne capacity over-the-road trucks provided by local contractors. The super sacks are transferred into 35-tonne capacity Semi-Trailer vehicles for the 1,113 km journey to the Ocean Partners warehouse facility in Manzanillo, in Colima State. Additionally, this site serves to some extent as a temporary warehouse for supplies and equipment destined for the operation since an economic saving is realized by using the more agile concentrate truck to transport these items to the operation.

15.4.2 Guamuchil

In Guamuchil, Dyna de Mexico maintains an administrative office which handles accounting, tax reporting, purchasing, and payroll. Additionally, there is a modest warehouse facility to hold consumables and other small parts and supplies necessary for the operation and are not readily available close to the operation proper.

15.4.3 Mazatlán

Since Mazatlán is a popular destination in Mexico for tourism and an important centre for the export of perishable goods (fruits, vegetables, and seafood), direct international flights to and from the United States of America and Canada are more frequent and accessible. It also serves as the headquarters for several significant junior to mid-sized mining and mine service companies, especially drilling and blasting contractors. For this reason, Dyna de Mexico maintains personnel in Mazatlán for the purpose of facilitating the logistics associated with these services.

15.5 Mines

Currently, Dyna is exploiting mineral from four distinct vein systems: San Pablo, San Pablo Sur, Mochomera and Tres Amigos, as shown in Figure 15.2. All except Tres Amigos are accessed through the San Pablo portal and decline. Many other sources of material are available as previously exploited veins, existing stockpiles and dumps from past operations, and presumably material to be developed based on ongoing exploration programs.

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Figure STYLEREF 1 \s 15. Aerial View of the SJG Main Mineral Trend (Looking West)

Source: This Report

15.5.1 San Pablo and San Pablo Sur

San Pablo, San Pablo Sur are accessed via the San Pablo portal and decline as shown in Figure 15.3. These workings have been exploited over many years, and still present opportunities along strike and at depth. Mining is performed by cut-and-fill. Material is blasted and removed sufficiently to allow access for stabilization of the back, and then to allow for the next lift to be drilled. This is performed three to four times until the required level height is reached. Then all material is removed and fill generated from development or excavated on the surface is placed and leveled to permit the cycle to continue above. Backs and walls are bolted with split sets where necessary (Figure 15.4).

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Figure STYLEREF 1 \s 15. Common Portal for San Pablo, San Pablo Sur, and Mochomera

Source: This Report

Figure STYLEREF 1 \s 15. Longitudinal Projection of San Pablo and San Pablo Sur

Source: This Report

Operations are carried out by contractors using a variety of equipment including 2.0 and 2.7 m3 scoop trams, jackleg drills, and various single and double axle trucks. Direction is provided by Dyna de Mexico staff. Blasted ore is removed from the mine to the lay down area in separate one truck load piles for sampling to provide adequate ore blending for the process plant.

Ventilation in the mine is assisted by fans installed at surface; however, the exhaust air exits through existing workings to the surface. Secondary escapeways consist of well-marked mine

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working no longer in use which lead to surface. Limited pumping is performed since the workings are relatively dry. Occasional accumulations of water are pumped to the surface and held for mine purposes and dust control in and around the mines and haul roads.

15.5.2 Mochomera

Mochomera is accessed through the same portal and decline system as the San Pablo and San Pablo Sur ore bodies. It is located subparallel and to the north and west of the San Pablo workings.

Methods of work, ventilation, pumping and escape ways are essentially of the same character as those in San Pablo. A ventilation raise to surface is planned soon to permit cleaner air in the working areas (Figure 15.5).

Figure STYLEREF 1 \s 15. Mochomera Longitudinal Projection

Source: This Report

15.5.3 Tres Amigos

Tres Amigos has been in exploitation for a considerable time and currently is operated to recover marginal ore on the fringes of the main vein mineralization. There is additional potential to the northeast and at depth. Work here is performed by a contractor as well with some equipment provided by Dyna de Mexico (Figure 15.6 and 15.7).

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Figure STYLEREF 1 \s 15. Tres Amigos Portal

Source: This Report

Operations here are like the San Pablo Mine with ore removed to the lay down area for sampling to allow for accurate mixing. Development material is used as back fill with additional material needed being pulled from existing surface dumps. Ore grade material is laid out in one truckload piles for sampling and mixing before being transported to the process plant.

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Figure STYLEREF 1 \s 15. Longitudinal Projection of Tres Amigos

Source: This Report

Note: grey = mine workings, red = mineral blocks.

15.6 Mine Support

15.6.1 Office

An office building with a large conference or meeting room (Figure 15.8) is located centrally to both active mine portals. Pre-shift meetings and planning sessions are held here, and the facility is sufficient to house all supervisory personnel from the operation including Dyna Staff and contractors. There is internet and hence VOIP telecommunications.

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Figure STYLEREF 1 \s 15. Mine Office Facility

Source: This Report

15.6.2 Ore Lay Down Areas

There are ample broken ore lay down areas at the two current mine portals. These areas allow for safe operation of multiple pieces of equipment, including loaded trucks coming from the mine with ore, trucks hauling waste from the mine, trucks and loaders blending material to be sent to the process plant, vehicles making supplies deliveries, light vehicles carrying supervisory staff, and the transit of various pieces of mine equipment.

15.6.3 Transportation

Supervisory staff are transported to the mine in light vehicles at their own schedule. Shift workers are brought to the mine in anticipation of their shift in buses.

15.6.4 Trucking

A combination of the contractor’s trucks and several local independent contractors provide transportation for material and supplies to the SJG Operation from San José de Gracia Village. Ore for the process plant is blended and loaded on the lay down areas after assay results from sampling are received. Some waste material from surface is moved underground from the lay down areas to provide additional fill. Trucks are also utilized to haul broken material to surface from underground stockpiles created by scoop trams.

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15.6.5 Shops

Two mine contractors are utilized, and each maintains a shop near the portal of mines where routine maintenance, some rebuilding, welding, and hardfacing are performed.

15.6.6 Bodega

A small, locked bodega is maintained at each lay down area for everyday consumables and hand tools. This includes safety equipment, rock bolts, pipe fittings and other small items,

15.6.7 Generators

Generators are maintained at both portals for electric power.

15.6.8 Compressed Air

Compressors are operated at each portal for operating drills, jumbos and other equipment. Three Dyna owned compressors are in service at Tres Amigos. Two Sullair compressors with 350 l/s capacity and one Atlas Copco with a capcity of 500 l/s. Three compressors are located at the San Pablo Portal. Two Dyna owned Sullair machines generate 500 and 425 l/s, respectively. These compressors are augmented by a rented Sullair machine on long-term lease yielding 350 l/s.

15.6.9 Magazines

Four explosive magazines are maintained in a secure compound with 24-hour guard service. Two of the magazines contain high explosives and ANFO with a total permitted capacity of 86 tonnes, and two magazines are for fuses, caps, det. cord, delays, connectors, etc. Licenses for all magazines are issued by Secretaria de Defensa Nacional (“SEDENA”, the Mexican authority for arms and explosives. and are renewed annually. The current permit expires 27 September 2025.

15.6.10 Fuel

One-thousand liter tanks for diesel storage are placed at each mine portal for daily consumption. These are replenished as needed by Dyna from their larger fuel store near the process plant. Mining contractors are responsible for their own fuel expenses; therefore, these deliveries are discounted from subsequent billings.

15.7 Tailings Storage Facility

Tailings are pumped uphill from the process plant to the TSF with a 10 x 15 cm positive displacement pump (Figure 15.9).

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Figure STYLEREF 1 \s 15. Aerial view of the TSF (Looking Southwest)

Source: This Report

The TSF is built in phases with the third phase currently under construction and in use. The facility is a concrete-buttressed, HDPE-lined impoundment using cycloned coarse material to contain fines and slimes that settle and dewater in the center of the impoundment. Currently, 5.5 ha of the permitted area is lined. Decanted water is covered by rafted pumps and returned to the process plant.

The current Phase III is permitted to occupy a total of 6 ha with the follow-on Phase IV to expand to 11 ha (also permitted). Phase three has a capacity of 1.3 million tonnes of material or ~52 months of operation.

15.8 Warehousing

Dyna de Mexico maintains warehouses or storage facilities in various areas depending on use and level of security.

15.8.1 Process Plant

The Company’s principal storage is adjacent to the process plant and houses all plant consumable, safety equipment, replacement parts, tires, tools, equipment, lubricants, laboratory supplies, and

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essentially all valuables and consumables of the operation. A separate enclosure serves as reagent storage. Access is limited and a warehouse manager is present.

This warehouse also manages fuel. Dyna de Mexico maintains up to 30,000 liters of diesel fuel on site in two tanks of 20,000 and 10,000 liters. There is an additional small amount of gasoline on the order of 200 liters used for small, motorized equipment.

15.8.2 Guamuchil

In Guamuchil, Dyna de Mexico maintains a warehouse for transshipment. This warehouse is essentially a receiving and dispatching warehouse used to handle purchases and supplies from all over Mexico, though mainly from Guamuchil, Los Mochis, and Culiacan, where the majority of consumable are sourced. This facility is managed by the purchasing and accounting personnel in Guamuchil.

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16.0 Market Studies

16.1 Overview

As of 2024, un-mined global gold Mineral Reserves are estimated at ~59,000 t (statista.com). These unmined Mineral Reserves are distributed unevenly across various countries, with the largest Mineral Reserves held by:

 Australia: 16.2%.

 Russia: 10.4%.

 South Africa: 6.3%.

As of December 2024, global central bank gold reserves totaled approximately 35,600 tonnes, marking the highest level since 1992 (gold.org). The International Monetary Fund (“IMF”) maintains significant gold holdings, amounting to 2,814 t (en.wikipedia.org).

Combining these figures, official institutions, including central banks and the IMF, hold approximately 38,400 t of gold. Estimating the total amount of gold held by private financial institutions is merely speculative due to limited or no disclosure requirements and the various types of entities. Precise figures for gold holdings by private financial institutions are not readily available.

Gold is introduced to the market from three sources: primary mining, by-product production from other mines, notably copper and other base metal mines, and recycling (Figure 16.1).

Figure STYLEREF 1 \s 16. Gold Market Sources

Formal mining companies (national, public, and private) represent most of the world gold production. Due to the expense of exploration and sustainable and economically sound development, production and final reclamation, these companies do not react rapidly to changing economic conditions. This leads to some Mineral Resources remaining undeveloped until there is a reasonable expectation of a stable environment for the operator to at least recover initial investment. Some gold deposits, having been discovered, remain in inventory for long periods of time due to price and cost environment, political situations in host countries or regions, or technological difficulties for which a solution needs to be found (generally involving either access or metallurgical extraction).

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Artisanal and small-scale gold mining (“ASGM”) accounts for an estimated 15 to 20% of global gold production. This sector involves millions of miners worldwide, particularly in developing countries across Africa, Asia, and South America. Although ASGM contributes significantly to gold supply, it operates informally and faces challenges, such as environmental impact, lack of regulation, and worker safety concerns. Despite these challenges, ASGM remains a crucial livelihood for many communities, providing economic opportunities, where large-scale mining is not feasible. ASGM also reacts more quickly to fluctuations in the economic environment due to the significantly lower cost of equipment, the mobility of equipment allowing for a change of location of operations, and in most cases a lack of strict environmental and governmental controls. Recently, a good deal of AGSM is conducted or funded by international criminal organizations as it uses many of the same techniques to extract mineral content as the artisanal diamond industry and offers the same mobility of assets desired by these groups.

16.2 Production Techniques

There are four basic methods for recovering gold or doré (an alloy of gold and silver and to some small degree some base metals) in modern, non-artisanal underground and surface operations. Three of these involve grinding ore in mills, normally in the presence of water. After grinding to a predetermined size, material can be recovered by gravity. Gold with a specific gravity of 19 g/cc is easily recovered if grain size is sufficiently large and liberated from gangue (waste) material. Various devices are utilized for this purpose, such as jigs, gold traps, vibrating concentrating tables, and centrifugal concentrators. The advantages of these techniques is that coarse gold can take less time to process than other techniques which require more reagents and energy. Recovered coarse gold pays at a significantly higher price, due to the ease of refining and the lower cost of transportation.

Ground ore (pulp) can also be leached using caustic solutions of sodium cyanide Other Lixiviants are occasionally used, however, >95% of operations use sodium cyanide. Material is agitated in vats or tanks until leaching is complete and then either the liquid portion is passed over activated carbon, or activated carbon is added to the ground material. Carbon adsorbs the gold from solution and then can be recovered from the carbon in the plants refining process (not to be confused with metal refining). An exception occurs when deposits have a silver-to-gold ratio higher than 6:1. In such instances, the Merrill-Crowe process becomes necessary. This process removes the precious metals in the clear leaching liquor, de-oxygenates it by passing it through a vacuum, and then adding zinc dust to the solution. Zinc replaces the precious metals in solution and a sludge can be recovered by filtering and then smelted to create doré.

A third method primarily used in base metals mines, but commonly in gold mines too, is flotation. Here again, the ore is ground conditioned with a few chemicals which attach to the metallic particles in the ore and the attach to a liquid gas interface created by injecting air to create bubbles in the mix. The metal particles are floated to the surface as froth, and the overflow is collected as a concentrate. In base metals mines, the precious metals are subsequently recovered when the concentrate is sent off site for smelting and refining. The Grasberg Copper Mine in Indonesia is the 3rd largest gold mine in the world.

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A final method is heap leaching. In this method, the ore is crushed but hardly ever ground and then stacked on impermeable pads. This material is sprayed with sodium cyanide solution which percolates through the ore, leaches the gold particles into a pregnant solution and reaches the impermeable layer. Subsequently the gold bearing solution, flows downhill to be collected and then can either passed through carbon filled towers to have the carbon adsorb the gold, or the Merrill-Crowe process is employed. Many techniques are used to enhance the permeability of the heaps of ore and to ensure the solution contacts the gold particles in the ore.

Except for flotation, all these techniques generate gold alloyed with other metals. These are sent to refiners who generate the final product.

16.3 Supply

Gold is produced on every continent except Antarctica. Approximately 3,600 t of gold are produced annually worldwide (Table 16.1). The ten largest gold producing countries are shown in Figure 16.2. China is the largest producer of gold, although none of the ten largest gold mines in the world are located there. A large component of Chinese gold production is by-product from copper mining and smelting.

Table STYLEREF 1 \s 16. Total Gold Supply 2023 and 2024

Figure STYLEREF 1 \s 16. Ten Largest Gold Producing Countries

Source: World Gold Council

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With respect to distribution, Africa, closely followed by Asia, produces the most gold as shown in Table 16.2. Mega-mines, such as Muruntau in Uzbekistan, The Witwatersrand in South Africa and the Gold fields in Ghana, are incredibly large sources of gold. The totals for production do not reflect the sales of scrap and recycled gold. Recycled gold from other uses meets the demand.

Table STYLEREF 1 \s 16. World Gold Production by Region 2010 to 2023

Source: World Gold Council

16.4 Demand

Overall, gold demand for various purposes was approximately 4,500 t for the last two years (Figure 16.3). Jewelry fabrication is the single highest consumer of gold although jewelry is considered an investment in many cultures, particularly the two largest consumers of fabricated jewelry, China, and India. In general, the four major areas of demand are jewelry, technology/electronics, central bank holdings, and investment/safe haven holdings.

Figure STYLEREF 1 \s 16. Gold Consumption by Category 2010 to 2023

Source: World Gold Council

A more detailed look demonstrates that jewelry and investment products plus other minor industries make a more complicated mosaic of the demand picture (Figure 16.4).

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Figure STYLEREF 1 \s 16. Gold Usage

Source: World Gold Council

16.5 Balance in the Gold Market

A look at the balance in the gold market gives a better appreciation of how supply and demand are well matched in the gold market (Table 16.3).

Balance in the gold market is achieved when the forces of supply and demand are stable, preventing extreme price volatility. This equilibrium is influenced by factors such as mining production, central bank reserves, jewelry and industrial demand, investment flows, and macroeconomic conditions. When demand for gold as a safe-haven asset rises, commonly due to economic uncertainty or inflation, prices tend to increase unless offset by higher supply from mining or recycled gold. Conversely, if supply outpaces demand, prices may decline. Central banks also play a crucial role in maintaining balance, as their buying or selling activities can impact global gold reserves and influence market sentiment. Achieving stability in the gold market requires a delicate interplay of these factors, as shifts in investor confidence, geopolitical events, or monetary policies can disrupt the balance, leading to fluctuations in gold prices.

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Table STYLEREF 1 \s 16. <br>Gold Supply and Demand (tonnes)
Item	2020	2021	2022	2023	2024
Supply
Mine production	3,484.0	3,572.8	3,631.7	3,644.1	3,661.2
Net producer hedging	-36.6	-5.4	-12.3	67.4	-56.8
Recycled gold	1,293.1	1,135.8	1,136.3	1,234.4	1,370.0
Total supply	4,740.5	4,703.2	4,755.7	4,945.9	4,974.5
Demand
Jewelry fabrication	1,323.7	2,230.8	2,195.3	2,191.0	2,003.5
Jewelry consumption	1,398.0	2,148.1	2,087.8	2,110.6	1,877.1
Jewelry inventory	-74.3	82.7	107.5	80.4	126.4
Technology	309.0	337.2	314.8	305.2	326.1
Electronics	255.3	278.7	257.7	248.7	270.6
Other industrial	41.9	47.1	46.8	47.1	46.5
Dentistry	11.9	11.4	10.3	9.4	8.9
Investment	1,794.9	991.5	1,112.5	945.5	1,179.5
Total bar and coin	902.3	1,180.3	1,222.1	1,189.8	1,186.3
Bars	542.8	810.9	802.2	781.7	860.0
Official coins	290.4	284.4	320.9	293.5	201.0
Medals/Imitation coins	69.1	84.9	98.9	114.6	125.2
ETFs & similar products	892.5	-188.8	-109.5	-244.2	-6.8
Central banks & other inst.	254.9	450.1	1,080.0	1,050.8	1,044.6
Gold demand	3,682.6	4,009.6	4,702.6	4,492.5	4,553.7
OTC and other	1,057.9	693.6	53.1	453.4	420.7
Total demand	4,740.5	4,703.2	4,755.7	4,945.9	4,974.5

Source: World Gold Council

The opposing forces of economic stability and confidence versus global political uncertainty, the status of inflation and central bank policy, keep a very clear balance between production or supply and consumption or demand and any shortfall or surplus is accommodated by investors or consumers adapting to circumstances on ta large scale such a manufactures, central banks, or investors, or on a smaller scale such as OTC transactions between individuals or private purchases outside regulated exchanges, and inventory adjustments at exchanges or fabricators.

16.6 Forecast

Gold price, unlike other industrial metals, is not determined purely by the balance between supply and fabrication demand, however, rather by the elevated levels of investment holdings, which is the function of the geopolitical and economic outlook.

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Forecasting metal prices over a five-year horizon involves considerable uncertainty due to various economic, geopolitical, and market factors. However, many sources have provided projections for gold and other metals. Such projections are incorrect due to the vagaries of the financial markets, where large consumers tend to affect prices. The impossibility of foreseeing such occurrences of natural disasters, armed conflict, and other “Black Swan” events makes forecasting difficult.

A 2021 Statement by WGC: “Gold prices are likely to follow a downward trend for the following three years as post-pandemic monetary policies continue to normalize, with annual prices slipping from $1,799 /oz in 2021 to $1,676/oz by 2024. Bullish sentiment is expected to return in 2025 and drive prices up to reach $1,762 /oz and later $1,890 /oz in 2026.” Even very well-informed people can miss predictive targets in periods of volatility (Figure 16.5).

Figure STYLEREF 1 \s 16. Gold Price Chart 2016 to 2025

Forecasting metal prices over a five-year horizon involves considerable uncertainty due to various economic, geopolitical, and market factors. However, several reputable sources (Figure 16.6) have provided projections for gold and other metals.

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Figure STYLEREF 1 \s 16. Gold Price Forecast Examples

Analyst’s forecasts for gold prices for extended periods such as 60 months into the future are rare due to the uncertainty of markets. Many factors outside the commercial environment for gold affect the price. These include global economic health, geopolitical stability, level of inflation and central bank policies.

One prediction for the upcoming 12 months that shows a steady predicted increase in metal prices (except for lead) for the next three quarters is represented in Table 16.4.

Table STYLEREF 1 \s 16. Metal Price 12 Month Prediction

Source: Trading Economics (3/4/2025)

16.7 Corporate Prospects

DynaResource (Dyna de Mexico) has recently completed a plan of operations forecasting mine and process plant production through to calendar year 2031. Currently an amended contract is in place for the purchase of all gold concentrates from the SJG Project Mine in Sinaloa. Concentrates will be delivered to the buyers warehouse in Manzanillo, Colima, Mexico. The plan of operations projects production of metal as shown in Table 16.5. The percentage paid for contained ounces based on grams of contained gold per tonne of concentrate is shown in Table 16.6. Concentrate typically runs >60 g/t, therefore a factor 94.75% is most accurate, except for some lower-grade gravity concentrates. Some deductions apply for deleterious metals, such as lead, arsenic and

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antimony, in the concentrate, and a standard deduction of two grams of gold content per tonne of concentrate. There is a slight credit given for silver content.

Table STYLEREF 1 \s 16. Projected Gold Production 2025-2029

Source: DynaResource

Table STYLEREF 1 \s 16. Projected Gold Concentrate Payment Schedule

Source: DynaResource

The corporate projections use a very conservative figure for sales price of metal, and based on the relatively small quantity of gold produced at SJG Project compared to overall Mexican gold production of 4,083,207 oz in 2023, and 4,179,699 oz in 2024, according to estimates by the U.S. Geological Survey. Under the existing offtake agreement, the Company will be able to sell all its production at or above the prevailing price, most likely above the figure used in its internal forecasts.

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17.0 Environmental Studies, Permitting, and Plans, Negotiations, or Agreements with Local Individuals or Groups

DynaResource operates the SJG Project moderate tonnage per day mining and mineral processing facilities in the State of Sinaloa. Approximately 800 tpd of mineralized material is crushed, ground, and subjected to froth flotation to produce a saleable gold concentrate.

The SJG Project Property is located in the Culiacan Mining District of Sinaloa State, Mexico approximately 120 km east-northeast of the coastal City of Los Mochis (Figure 17.1).

Figure STYLEREF 1 \s 17. SJG Project Location

Source: Modified by P&E (This Report) from DynaResource Annual Report (2024)

The SJG Project Property is located in and around the Village of San José de Gracia, ~100 km north of Guamuchil, on the west side of Mexico. The Village of San José de Gracia has a small airstrip and can be accessed by a small airplane, or alternatively, by a dirt mountain road. The roads providing access to the SJG Project are accessible year-round.

Plans are in place to increase processed tonnage to 900 tpd and to improve gold recovery by producing a gravity concentrate in advance of the flotation stage. Two concentrates will be produced: 1) a high-grade gravity concentrate; and 2) a modest grade flotation concentrate.

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Environmentally, there will be no significant potential impact. In the immediate term, the application of a cyanide leaching-based extraction and further concentration step will not be included.

17.1 Required Permits for Gold Exploration, Drilling and Mining

For the use of explosives materials exploration or mining activities, an Application for General Permit for Use, Consumption and Storage of Explosive (“GPCSE”) is required to be filed at the offices of the Secretariat of National Defense (“SEDENA”).

As a pre-requisite for issuance of an CSUP, Article 118 of the Federal Sustainable Forestry Development Act provides the posting of a bond to the Mexican Forestry Fund for remediation, restoration and reforestation of the areas impacted by the mineral exploration and exploitation activities.

As a pre-requisite for approval of operations , the Federal Environmental Protection and Ecological Equilibrium Act and its Regulations require the posting of a financially-assured bond to guarantee remediation and rehabilitation of the areas impacted by mining activities.

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Environment (“PROFEPA”) is the enforcement branch of SEMARNAT that is responsible for the monitoring and enforcement of environmental laws and regulations.

CONAGUA is the office responsible for certification of water rights and issuance of water rights concessions.

Processing time for issuance of a Water Rights Concession by CONAGUA is ~6 months.

17.2 Historical Dyna de Mexico Permitting

Exploration Permit

On June 28, 2010, Dyna de Mexico filed a Preventive Exploration Notice (an “IP”) at the office of SEMARNAT in connection with contemplated mineral exploration activities at the La Prieta, San Pablo, La Purísima, La Unión, Tres Amigos, and La Ceceña areas of the SJG Project. On July 21, 2010, SEMARNAT approved, for a term of 36 months, the execution of the mineral exploration activities at SJG set out in the IP, as it determined that such activities fall within the framework of the NOM-120, subject to the following two conditions: 1) filing and approval by SEMARNAT of a CSUP with respect to SJG (see below); and 2) posting of a bond in the amount of $134,487 Pesos to guarantee remediation and rehabilitation measures following the conclusion of the mineral exploration activities.

Change of Soil Use Permit

On August 9, 2010, Dyna de Mexico filed at the offices of SEMARNAT a CSUP Application and Technical Justification Study to carry out certain mineral exploration activities set out in the IP approved by SEMARNAT on July 21, 2010 (see above) at the La Prieta, San Pablo, La Purísima, La Unión, Tres Amigos and La Ceceña areas of SJG. On December 20, 2010, SEMARNAT approved the CSUP Application filed by Dyna de Mexico with respect to SJG and authorized Dyna de Mexico the execution of mineral exploration activities on 5.463 ha of SJG for a term of 36 months.

Explosives Permit

On February 10, 2003, SEDENA approved a General Permit for Use, Consumption and Storage of Explosives for use and storage of explosives materials in SJG. In June 2006, Dyna de Mexico ceased use of explosive materials in its mining activities at SJG and requested SEDENA to suspend the Explosives Permit. The Dyna de Mexico Explosives Permit has been temporarily suspended by SEDENA and Dyna de Mexico is required to file a re-activation application to re-activate the Permit.

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Water Rights Certification

On March 8, 2012, the Director of Water Administration of CONAGUA certified in writing the rights of Dyna de Mexico to use, exploit and extract 1,000,000 m3 of water per year from the company´s extraction infrastructure located in SJG. CONAGUA determined that Dyna de Mexico´s water rights are not subject to any other water rights concession or any other water extraction restriction. Water extracted by Dyna de Mexico will be subject to applicable levies imposed by the Mexican tax authorities under applicable tax laws. The bonding requirements are:

 Under the CSUP issued to Dyna de Mexico on December 20, 2010, SEMARNAT imposed on Dyna de Mexico a bonding obligation of $116,911M x $ for re-forestation and remediation measures at SJG. The Bond was posted by Dyna de Mexico; and

 Under the IP approved by SEMARNAT on July 21, 2010, SEMARNAT imposed on Dyna de Mexico a posting obligation in the amount of $134,487 Pesos to guarantee remediation and rehabilitation measures following the conclusion of the mineral exploration activities under the IP. The Bond was posted by Dyna de Mexico.

Dyna de Mexico has sought and obtained all required environmental permits, temporary land occupation rights and consent letters from the regulatory agencies, local municipalities and the State of Sinaloa required to complete the recent mining, production, exploration, and drilling activities on the four main deposit areas at SJG. Dyna de Mexico is expected to be required to obtain further permits to complete additional exploration activities and future mining and processing activities. Limited permit applications are anticipated to be applied as a result of the modestly altered 2025 processing strategy.

The SJG Project Mine holds the following Federal Permits and registrations:

 CONAGUA002, Exploitation of Underground water, 2013.

 LAU Processing Plant, 2019.

 CONAGUA003, Exploitation of Underground water, 2015.

 Exemption underground exploitation San Pablo Mine, 2013.

 Exemption Environmental Impact Manifest, SEMARNAT Resolutive, Underground Exploitation 080613 Ad 2013.

 Exemption Environmental Impact Manifest Resolutive SEMARNAT, Rehabilitation, Maintenance and Re-use, Flotation Plant 2013.

 Exemption, Underground exploitation, Re-use, 2013.

 Preventive Report (IP), Mining Exploration, 2018.

 Register in SEMARNAT, Dangerous Waste.

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 Exemption, Resolutive to Presentation of MIA, Underground Exploitation, 082115.

 Application of Exemption MIA, Mill Plant and Tailings Dam.

 Summary of Environmental Updates, San José de Gracia Mine.

 Forest, Change of Land Use, Exploration 2010.

 Environmental Impact Statement (MIA) Exemption.

 Justified Technical Studies for Mina San Pablo, La Union, Purisima, Tres Amigos.

 Act of Land Use Change (CUS).

 Explosives Use and Storage Permit.

 All Labor and Securities permitting.

17.3 Surface Lease Agreements

In addition to surface rights retained pursuant to the Mining Act of Mexico and its Regulations (Ley Minera y su Reglamento), Dyna de Mexico also maintains access and surface rights to virtually all the SJG Project area pursuant to a surface lease agreement entitled “Land Occupation Agreement” between the El Ejido Santa Maria and Dyna de Mexico, dated May 12, 2002 (the “SJG Project Surface Lease”) (Figure 17.2). This surface lease covers 28,295 ha (Figure 17.2). The term of the SJG Project Surface Lease is 30 years and, according to the 2025 SJG Legal Opinion, it is understood that the current agreement is in good standing.

Under the 30-year agreement with the Santa Maria Ejido, the Land in Common Use that covers the SJG Project area is 4,399 ha in size (Figure 17.2). Dyna de Mexico has no future financial obligations to maintain the SJG Project Surface Lease. However, Dyna de Mexico is required to execute mining activities in accordance with applicable Mexican environmental, mining and labor laws, and regulations.

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Figure STYLEREF 1 \s 17. The Lands of the Land Occupation Agreement with Santa Maria Ejido

Source: DynaResource (This Report)

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18.0 Capital and Operating Costs

The estimated capital and operating costs related to the operation of the mining and processing facilities are provided in this section.

All capital and operating cost estimates are shown in US dollars as at Q2 2025, unless otherwise stipulated.

18.1 Capital Cost Estimates

Capital cost estimates includes: mine development sustaining capital; additional development costs; external G&A; other sustaining CAPEX; IVA costs and credits; mining duties / withholding taxes; site infrastructure; plant filtration presses and closure / reclamation costs. The LOM total capital cost, for the years 2025 to 2031, is estimated at $81.4M, averaging $50.67/t processed. A breakdown of these estimates is provided in Table 18.1.

Table STYLEREF 1 \s 18. Summary of Total LOM Capital Costs (k)
Item / Year	2026	2027	2028	2029	2030	2031	Total
Sustaining Capital (U/G Development)	4,925	4,290	5,019	2,908	0	0	22,148
Additional Development	774	0	750	0	0	0	2,675
External G&A (Owner's Cost)	1,486	1,486	1,486	1,486	1,486	1,486	10,400
Sustaining Capital (Other)	1,990	4,104	3,900	3,900	3,900	1,700	22,684
IVA Movement	-6,434	-6,434	-6,434	0	0	0	-16,442
Special Mining Duty/Withholding Taxes	2,622	3,503	3,098	2,835	1,750	1,485	17,705
Process Plant Sustaining Costs	151	151	151	151	0	0	2,423
Site Infrastructure Sustaining Costs	1,790	2,404	2,200	2,200	2,200	0	14,399
Process Plant Expansion	0	0	0	0	0	0	889
Reclamation Costs	0	0	0	0	0	4,547	4,547
Total CAPEX (k)	7,303	9,503	10,170	13,480	9,336	9,218	81,427
CAPEX/t (US/t)	31.48	39.14	43.75	57.24	43.28	42.38	50.67

All values are in US Dollars.

Details of these estimates are provided in the following subsections.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

18.1.1 Sustaining Underground Mine Development Infrastructure

A total estimated $22.1M will be spent on sustaining underground mine development infrastructure, at DynaResource various operations, from 2025 to 2029. This amount includes: the cost of loading bays, ventilation raises, ramps, and ventilation drifts. A summary of estimated sustaining underground mine development infrastructure quantities and CAPEX costs, on a yearly basis is presented in Table 18.2.

Table STYLEREF 1 \s 18. Sustaining Underground Mine Development Capital Costs (k)
Heading / Year	2025	2026	2027	2028	2029	Total
Loading Drifts (m)	236	280	228	220	136	1,100
Ventilation Raises (m)	435	332	323	459	281	1,829
Ramps (m)	3,336	3,296	2,760	3,474	1,766	14,632
Ventilation Drifts (m)	542	568	588	408	460	2,566
Total (m)	4,549	4,476	3,899	4,561	2,643	20,127
Infrastructure @ 1,100.44/m (k)	5,006	4,925	4,290	5,019	2,908	22,148

All values are in US Dollars.

18.1.2 Additional Development Capital Costs

A total estimated $2.7M will be spent on additional development infrastructure, at Dyna Resource Inc. various operations, from 2025 to 2028. This includes: ventilation development; diamond drill service holes; concrete walls for ventilation control; electrical and safety bays, and concrete walls for water control. Details of these capital costs, on a yearly basis, are presented in Table 18.3.

Table STYLEREF 1 \s 18. Additional Underground Mine Development Capital Costs (k)
Heading / Year	2026	2027	2028	2029	Total
Ventilation Development	672	0	651		2,324
Diamond Drill Service Holes (HQ)	70	0	68		242
Concrete Walls For Ventilation Control	15	0	15		52
Electrical and Safety Bays	7	0	7		24
Concrete Walls For Water Control	10	0	9		34
Total Additional Development (k)	774	0	750		2,675

All values are in US Dollars.

18.1.3 External G&A (Owner's Cost)

An estimated $1,485,652 will be spent on land payments and other owner’s costs in 2025. It is estimated, and assumed, this CAPEX cost will continue through 2031 (LOM), on a yearly basis.

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18.1.4 Other Sustaining Capital Costs

An estimated $22.7M of capital will be spent on Other Sustaining Capital items, from 2025 to 2031, LOM. Items include tailings dams, exploration, plant expansions, electric line improvements, equipment replacements, plus many miscellaneous items. A schedule of Other Sustaining Capital expenditure estimates, on a yearly basis, is presented in Table 18.4.

Table STYLEREF 1 \s 18. Other Sustaining Capital Costs (k)
Item / Year	2026	2027	2028	2029	2030	2031	Total
Tailings Dam	200	200	200	200	200	200	1,200
Exploration	0	1,500	1,500	1,500	1,500	1,500	7,500
Plant Expansions	0	0	0	0	0	0	889
Electrical Line Improvement	612	204	0	0	0	0	816
Equipment Replacements	503	0	0	0	0	0	2,160
Other	675	2,200	2,200	2,200	2,200	0	10,119
Total Other Sustaining Capital (k)	1,990	4,104	3,900	3,900	3,900	1,700	22,684

All values are in US Dollars.

18.1.5 IVA Capital Costs and Credits

A 16% VAT tax is estimated to be paid on OPEX costs and most CAPEX costs. DynaResource, Inc. is estimated to pay 70% of those costs as a CAPEX item. There is an initial $19.3M tax credit, which will be spread out over a three-year period from 2026 to 2028. All IVA taxes paid from 2026 onward are expected to be recovered. There is a LOM IVA credit of $16.4M. A summary of estimated IVA taxes paid, recovered and movement, on a yearly basis, is presented in Table 18.5.

Table STYLEREF 1 \s 18. IVA Movement Capital Costs (k)
VAT Movement / Year	2025	2026	2027	2028	2029	2030	2031
Opening Balance	19,303	22,165	15,730	9,296	2,861	2,861	2,861
IVA Payable	5,723	5,069	5,412	5,367	5,160	4,693	4,181
IVA Recovered	2,861	11,504	11,847	11,801	5,160	4,693	4,181
Closing balance	22,165	15,730	9,296	2,861	2,861	2,861	2,861
IVA Movement	2,861	-6,434	-6,434	-6,434	0.0	0.0	0.0

All values are in US Dollars.

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18.1.6 Special Mining Duty Capital Cost

There is an 8.5% Special Mining Duty on yearly Operating Margins (less capitalized operating development). Special Mining Duty capital costs total $17.7M, LOM. A summary of this CAPEX estimate and calculation on a yearly basis is presented in Table 18.6.

Table STYLEREF 1 \s 18. Special Mining Duty Capital Costs (k)
Item / Year	2026	2027	2028	2029	2030	2031	Total
Net Revenue	67,249	78,584	73,091	70,262	56,398	53,101	463,647
OPEX	35,630	37,376	35,895	36,911	35,804	35,628	252,681
Operating Margin (EBITDA)	31,619	41,208	37,196	33,351	20,594	17,473	210,965
Less: UG Capitalized OPEX Development	-774	0	-750	0	0	0	-2,675
Subtotal	30,845	41,208	36,446	33,351	20,594	17,473	208,290
Special Mining Duty @ 8.5% Subtotal (k)	2,622	3,503	3,098	2,835	1,750	1,485	17,705

All values are in US Dollars.

18.1.7 Process Plant Sustaining Capital Costs

An estimated $2.4M of capital will be spent on process plant sustaining capital costs, LOM. A summary of these costs on a yearly basis is presented in Table 18.7.

Table STYLEREF 1 \s 18. Process Plant Sustaining Capital Costs (k)
Item / Year	2026	2027	2028	2029	2030	2031	Total
Process Plant Sustaining CAPEX	151	151	151	151	0	0	2,423

All values are in US Dollars.

18.1.8 Site Infrastructure Sustaining Capital Costs

Site infrastructure sustaining CAPEX totals $14.4M. Site infrastructure sustaining capital costs include: underground mine infrastructure, Maurice A, safety infrastructure, laboratory infrastructure, dam infrastructure, construction projects, security, camps, electrical line improvements, equipment replacement and many miscellaneous items. A summary of site infrastructure sustaining capital costs, on a yearly basis, is presented in Table 18.8.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 18. Site Infrastructure Sustaining Capital Costs (k)
Item / Year	2026	2027	2028	2029	2030	Total
Mine	0	0	0	0	0	2,218
Maurice A.	0	0	0	0	0	839
Industrial Safety	0	0	0	0	0	78
Laboratory	0	0	0	0	0	225
Dam	0	0	0	0	0	190
Construction	0	0	0	0	0	8
Security	0	0	0	0	0	15
Camp	0	0	0	0	0	32
Electrical Line Improvements	612	204	0	0	0	816
Equipment Replacement	503	0	0	0	0	503
Many Miscellaneous Items	675	2,200	2,200	2,200	2,200	9,475
Total Site Infrastructure Sustaining CAPEX (k)	1,790	2,404	2,200	2,200	2,200	14,399

All values are in US Dollars.

18.1.9 Process Plant Expansion Capital Costs

An estimate $0.9M CAPEX costs will be spent on process plant expansion items in 2025. Details of these process plant expansion CAPEX costs are presented in Table 18.9.

Table STYLEREF 1 \s 18. Process Plant Expansion Capital Costs in 2025 (k)
Item / Year
Water Well Drilling (Electrical Installations; Equipment)
Filter Press For Concentrate
Purchase and Install Falcon Equipment (3)
Tailing Pumps
Total Process Plant Expansion CAPEX (k)

All values are in US Dollars.

18.1.10 Reclamation and Closure Capital Costs

An estimate $4.5M CAPEX costs will be spent on reclamation and closure costs. Reclamation and closure costs include: process plant salvage and closure, mines salvage and closure, tailings dam closure, the cost to cover waste stockpile areas, remove surface facilities and infrastructure, complete final clean up and provide ongoing water monitoring and treatment, as required. The estimated reclamation, closure and salvage capital costs are summarized in Table 18.10.

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Table STYLEREF 1 \s 18. Reclamation and Closure Capital Costs in 2031 (k)
Item / Year
Process Plant Salvage and Closure
Mines Salvage and Closure
Tailings Dam Closure
Total Estimated Reclamation & Closure CAPEX (k)

All values are in US Dollars.

18.2 Operating Cost Estimates

The operating cost estimates (OPEX) include the cost of supervisory, operating and maintenance labor; operating consumables, materials and supplies, haulage and processing. The yearly operating cost varies from a high of $164.49/t in 2030, to a low of $152.08/t in 2025, averaging $155.85/t LOM. A summary of the average operating cost estimates for DynaResource’s SJG Project is provided in Table 18.11.

Table STYLEREF 1 \s 18. Summary of Average Operating Cost per Tonne Processed (/t)
Description
Underground Mining Cost
Additional Backfill Cost
Processing Cost
Site G&A
Total OPEX (US/tonne)

All values are in US Dollars.

Details of these estimates are provided in the following subsections.

18.2.1 Underground Mining OPEX Cost

An estimate $163.9M OPEX costs will be spent on underground mining, LOM. The $102.01/t underground mining OPEX cost used is based on the January to December 2025 budget estimate. The $102.01/t OPEX cost used is the average of the 2025 monthly estimates. Using the total 2025 mining cost, and the total 2025 budgeted 292.7 k tonnes (kt) processed, results in a $101.94/t processed OPEX cost. Please note that the cash flow estimated 2025 tonnes processed used is 230.9 k tonnes. A summary of 2025 monthly budgeted operating and maintenance costs, tonnes processed, and calculations is presented in Table 18.12.

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Table STYLEREF 1 \s 18. <br>Underground Budgeted 2025 Unit Mining Operating Costs
Description	Jan-25	Feb-25	Mar-25	Apr-25	May-25	Jun-25	Jul-25	Aug-25	Sep-25	Oct-25	Nov-25	Dec-25	2025	Used
Operations ($k)	2,464	2,260	2,446	2,290	2,383	2,377	2,349	2,425	2,337	2,346	2,397	2,263	28,338
Maintenance ($k)	132	140	120	105	184	99	108	102	126	120	168	97	1,501
Total Mining ($k)	2,595	2,400	2,566	2,394	2,566	2,477	2,457	2,528	2,463	2,466	2,566	2,360	29,838
Tonnes (k)	25.3	22.4	25.4	24.4	25.2	24.5	23.8	23.8	23.7	25.3	24.5	24.5	292.7	230.9
OPEX ($/t)	102.73	107.18	101.20	98.00	101.63	101.16	103.39	106.30	104.14	97.40	104.64	96.38	101.94	102.01

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Based on the budgeted 2025-unit mining OPEX cost of $102.01/t, the total LOM underground OPEX cost is $163.9M. A summary of yearly underground mining costs is presented in Table 18.13.

Table STYLEREF 1 \s 18. <br>Yearly Underground Mining Operating Costs
Item / Year	2025	2026	2027	2028	2029	2030	2031	Total/ Avg
Tonnes Processed (kt)	230.9	232.0	242.8	232.5	235.5	215.7	217.5	1,607
Costs / t Processed ($/t)	102.01	102.01	102.01	102.01	102.01	102.01	102.01	102.01
Underground Mining Cost ($M)	23.6	23.7	24.8	23.7	24.0	22.0	22.2	163.9

18.2.2 Additional Backfill OPEX Cost

An estimate $7.4M OPEX costs will be spent on addition backfill requirements, LOM Based on the yearly stoping tonnages and available development backfill tonnages there is a shortfall of required backfill tonnes. This shortfall will be supplemented with additional backfill from other sources, at an estimated OPEX cost of $11.50/t. A summary of yearly backfill tonnage requirements, development backfill tonnes available, additional backfill tonnes required and the OPEX cost of additional backfill is presented in Table 18.14.

Table STYLEREF 1 \s 18. <br>Additional Backfill Operating Costs
Item / Year	2025	2026	2027	2028	2029	2030	2031	Total/ Avg
Stope Outline Tonnes Required (kt)	230.9	232.0	242.8	232.5	235.5	215.7	217.5	1,606.9
Tonnes Required Including Overbreak (kt)	249.4	250.5	262.2	251.1	254.3	233.0	234.9	1,735.4
Development Backfill Available (kt)	226.5	220.5	176.6	202.4	144.1	43.6	76.4	1,090.0
Additional Backfill Required (kt)	22.8	30.0	85.7	48.7	110.2	189.4	158.5	645.4
Cost/t ($/t)	$11.50	$11.50	$11.50	$11.50	$11.50	$11.50	$11.50	$11.50
Additional Cost/Yr ($k)	$262.7	$345.5	$985.1	$559.9	$1,267.8	$2,178.1	$1,822.8	$7,422.0

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

18.2.3 Processing OPEX Cost

An estimate $39.9M OPEX costs will be spent on plant processing, LOM. The average processing OPEX cost is $24.82/t. Details of the estimated process plant operating costs are presented in Table 18.15.

Table STYLEREF 1 \s 18. Process Plant Operating Costs (k)
Item / Year	2026	2027	2028	2029	2030	2031	Total/ Avg
Tonnes / Year	232.0	242.8	232.5	235.5	215.7	217.5	1,607
Labor	971.7	971.7	971.7	971.7	971.7	971.7	6,802
Power Costs	1,562	1,562	1,562	1,562	1,562	1,562	10,934
Grinding Media	421.5	421.5	421.5	421.5	421.5	421.5	2,950
Reagents
Aerophine 3420	172.4	172.4	172.4	172.4	172.4	172.4	1,207
A-31	174.0	174.0	174.0	174.0	174.0	174.0	1,218
PAX	36.8	36.8	36.8	36.8	36.8	36.8	258
Frother	47.7	47.7	47.7	47.7	47.7	47.7	334
Copper Sulfate	10.9	10.9	10.9	10.9	10.9	10.9	76
Crusher Liners	278.6	278.6	278.6	278.6	278.6	278.6	1,950
Mill Liners
Mill 8x12	143.9	143.9	143.9	143.9	143.9	143.9	1,007
Mill 8x8	118.1	118.1	118.1	118.1	118.1	118.1	827
Mill H2	59.0	59.0	59.0	59.0	59.0	59.0	413
Pump Spares	687.0	687.0	687.0	687.0	687.0	687.0	4,809
Lube, Oil, etc.	152.0	152.0	152.0	152.0	152.0	152.0	1,064
Support Equipment	862.4	862.4	862.4	862.4	862.4	862.4	6,037
Total Processing OPEX (k)	5,698	5,698	5,698	5,698	5,698	5,698	39,886
Total Processing OPEX (/t)	24.56	23.47	24.51	24.20	26.41	26.20	24.82

All values are in US Dollars.

18.2.4 Site G&A OPEX Costs

An estimate $39.2M OPEX costs will be spent on site G&S, LOM. Mine G&A include the cost of underground supervision and technical staff, support labor including: U/G mechanics, U/G electricians, service leaders, equipment operators, pump/construction operators, and mine laborers. It also includes the cost of support vehicle operation and maintenance and the cost of all electric power to service the underground. Yearly total OPEX costs remain constant. Site G&A OPEX costs/t vary from a low of $23.06/t in 2027 to a high of $25.96/t in 2030. A summary of these operating costs per tonne processed on a yearly basis is presented in Table 18.16.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Table STYLEREF 1 \s 18.<br>Site G&A Operating Costs
Item / Year	2025	2026	2027	2028	2029	2030	2031	Total/Avg
Tonnes Processed (kt)	230.9	232.0	242.8	232.5	235.5	215.7	217.5	1,607
Site G&A (k$)	5,600	5,600	5,600	5,600	5,600	5,600	5,600	39,203
Cost/t Processed ($/t)	24.25	24.14	23.06	24.09	23.78	25.96	25.75	24.40

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

19.0 Economic Analysis

Cautionary Statement – This Technical Report is considered by P&E Mining Consultants Inc. to meet the requirements of a Prefeasibility Study (“PFS”) as defined in S-K 1300 Standards of Disclosure for Mineral Projects, because the SJG Project is an operating mine. There is no guarantee that DynaResource will realize the results in this PFS, because some future projections made in this Report may not be realized.

A financial model was developed to estimate the LOM plan comprised of mining DynaResource SJG Project. The LOM plan covers a 7-year period. Currency is in Q2 2025 US dollars, unless otherwise stated. Inflation has not been considered in the financial analysis. Millions of dollars are stated as $ M.

19.1 Economic Criteria

19.1.1 Physical Parameters

Production Mine Life: 7 years.

Closure: 2031.

Production Rate: Averaging 630 tpd @ 365 days/year (0.230 Mtpa).

Total Production: Mineralized Rock Production 1,606,900 t @ 4.91 g/t Au.

Metallurgical Parameters: Process recovery 79.8% Au.

Total Payable Metal - Au Sold: 202,200 oz.

AuEq Sold: 207,600oz (Includes Ag revenue credit)

(Total AuEq payable metal contains 2.6% Ag).

Concentrate Payable (Includes smelting, refining, transport, duties):

Oz payable; Au 94%; 190,100 ozs.

Smelting; 125,900 dmt conc. @ $99/dmt.

Transportation; 141,000 wmt @ $25/wmt.

Refining; $20/Au oz sold.

Mining Duty; 1.03% of oz payable.

19.1.2 Revenue

The commercially saleable product generated by the Project is concentrate. DynaResource, Inc. would be paid once the concentrate has been delivered to the smelter and refinery, off-site. The metal price used in this PFS is US$2,500/oz Au.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Concentrate Payable (Includes smelting refining, transport and duties):

Net Revenue; 91.7%, overall, of Au sold.

Net Revenue: Au $463.6M.

The revenue generation by the SJG Project is summarized on a yearly basis in Table 19.1.

Table STYLEREF 1 \s 19. Summary of Total Revenue Generation (M)
Item / Year	2025	2026	2027	2028	2029	2030	2031	Total
Gold Sold (oz k)	28.3	29.3	34.3	31.9	30.6	24.6	23.2	202.2
Gold Price (US/oz)	2,500	2,500	2,500	2,500	2,500	2,500	2,500
Gold Sold Revenue	70.8	73.3	85.7	79.7	76.6	61.5	57.9	505.6
Gold Revenue @ Payable (M)	66.6	68.9	80.6	74.9	72.0	57.8	54.4	475.3
Silver Credit (M)	1.9	1.9	2.3	2.1	2.0	1.6	1.5	13.3
Less: Smelting, Transport & Refining (M)	2.8	2.9	3.4	3.2	3.0	2.4	2.3	20.0
Less: Extraordinary Mining Duty (M)	0.7	0.7	0.8	0.8	0.7	0.6	0.6	4.9
Net Revenue (M)	65.0	67.2	78.6	73.1	70.3	56.4	53.1	463.6

All values are in US Dollars.

19.1.3 Costs

Operating Costs

Total Average Cost: $155.85/t processed.

Cash Cost / AuEq oz ($/oz AuEq): $1,326.62/oz AuEq.

All-in Sustaining Cost (“AISC”)($/oz AuEq): $1,719.76/oz AuEq.

Capital Costs

Sustaining CAPEX: $81.6M.

Sustaining capital costs include the cost of: all mine development, process plant, mine equipment, surface infrastructure, underground infrastructure, a closure cost, a salvage credit, and Owner’s costs. There is no contingency in sustaining CAPEX.

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19.2 Cash Flow

An after-tax financial model has been developed for the SJG Project. The model does not take into account the following components:

 Financing cost;

 Insurance; and

 Overhead cost for a corporate office.

An after-tax cash flow summary is presented in Table 19.2. All estimated costs are in Q2 2025 US dollars with no allowance for inflation.

Table STYLEREF 1 \s 19. <br>After-Tax Cash Flow Summary
Description / Year	Units	2025	2026	2027	2028	2029	2030	2031	Total / Avg
Tonnes Processed	kt	230.9	232.0	242.8	232.5	235.5	215.7	217.5	1,606.9
Au Grade	g/t	4.86	4.92	5.49	5.33	5.06	4.43	4.14	4.91
AuEq oz	koz	29.1	30.1	35.2	32.7	31.5	25.2	23.8	207.6
Net Revenue		65.0	67.2	78.6	73.1	70.3	56.4	53.1	463.6
OPEX
Underground Mining Cost	$M	23.6	23.7	24.8	23.7	24.0	22.0	22.2	163.9
Additional Backfill Cost	$M	0.3	0.3	1.0	0.6	1.3	2.2	1.8	7.4
Processing Cost	$M	5.7	5.7	5.7	5.7	5.7	5.7	5.7	39.9
Site G&A	$M	5.6	5.6	5.6	5.6	5.6	5.6	5.6	39.2
Total OPEX	$M	35.1	35.3	37.1	35.6	36.6	35.5	35.3	250.4
Cash Cost/t	$/t	152.08	152.21	152.60	153.02	155.37	164.49	162.35	155.85
CAPEX
Sustaining Capital (Underground Development)	$M	5.0	4.9	4.3	5.0	2.9	0.0	0.0	22.1
Additional Development	$M	1.2	0.8	0.0	0.8	0.0	0.0	0.0	2.7
External G&A (Owner's Cost)	$M	1.5	1.5	1.5	1.5	1.5	1.5	1.5	10.4
Sustaining Capital (Other)	$M	3.2	2.0	4.1	3.9	3.9	3.9	1.7	22.7
IVA Movement	$M	2.8	-6.4	-6.4	-6.4	0.0	0.0	0.0	-16.5
Special Mining Duty/Withholding Taxes	$M	2.4	2.6	3.5	3.1	2.9	1.8	1.5	17.9
Investment In Plant	$M	1.8	0.2	0.2	0.2	0.2	0.0	0.0	2.4
Site Infrastructure	$M	3.6	1.8	2.4	2.2	2.2	2.2	0.0	14.4
Plant Expansion	$M	0.9	0.0	0.0	0.0	0.0	0.0	0.0	0.9

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Table STYLEREF 1 \s 19. <br>After-Tax Cash Flow Summary
Description / Year	Units	2025	2026	2027	2028	2029	2030	2031	Total / Avg
Reclamation Costs	$M	0.0	0.0	0.0	0.0	0.0	0.0	4.5	4.5
Total CAPEX	$M	22.4	7.3	9.5	10.2	13.5	9.4	9.2	81.6
CAPEX/t	$/t	97.13	31.60	39.25	43.86	57.36	43.41	42.51	50.78
Pre-Tax CF	$M	7.4	24.6	32.0	27.3	20.2	11.6	8.5	131.6
Income Taxes	$M	0.0	0.0	6.5	9.2	8.2	4.6	3.6	32.1
After-Tax CF	$M	7.4	24.6	25.5	18.1	11.9	6.9	5.0	99.5
After-Tax CCF	$M	7.4	32.0	57.5	75.6	87.6	94.5	99.5
After-tax NPV @ 5%	$M	84.4

19.3 Base Case Cash Flow Analysis

The following after-tax cash flow analysis was completed:

 Net Present Value (“NPV”) (at 5%, 6%, 7%, 8%, 9% and 10% discount rates).

The summary of the results of the cash flow analysis is presented in Table 19.3.

Table STYLEREF 1 \s 19. <br>Cash Flow Analysis
Description	Discount Rate<br><br>(%)	Value<br><br>(M$)
Undiscounted After-Tax CF	0	99.5
After-Tax NPV at	5	84.4
	6	81.8
	7	79.3
	8	76.9
	9	74.6
	10	72.5

The Project was evaluated on an after-tax cash flow basis which generates a net undiscounted cash flow estimated at $99.5M. This results in an after-tax NPV of $84.4M when using a 5% discount rate. The average life-of-mine cash cost is $1,326.62/oz AuEq at an average operating cost of $155.85/t processed. The average life-of-mine all-in sustaining cost (“AISC”) is estimated at $1,719.76/oz AuEq.

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19.4 Sensitivity Analysis

Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities to:

 Gold metal price;

 Gold head grade;

 Gold metallurgical recovery;

 Operating costs; and

 Capital costs.

Each of the sensitivity items were varied up and down by 10% and 20% to assess the effect it would have on the NPV at a 5% discount rate. The value of each parameter, at 80%, 90%, base, 110% and 120%, is presented in Table 19.4.

Table STYLEREF 1 \s 19. <br>Sensitivity Parameter Values
Parameter	80%	90%	100%	110%	120%
Au Metal Price (US$)	2,000	2,250	2,500	2,750	3,000
Au Head Grade (g/t)	3.93	4.42	4.91	5.40	5.89
Au Met Recovery (%)	63.8%	71.8%	79.8%	87.8%	95.7%
CAPEX ($M)	65.3	73.4	81.6	89.8	97.9
OPEX ($M)	200.3	225.4	250.4	275.5	300.5

The resultant after-tax NPV @ 5% values of each of the sensitivity parameters at 80% to 120% is presented in Table 19.5 and Figure 19.1.

Table STYLEREF 1 \s 19. After-Tax NPV Sensitivity at 5% Discount Rate (M)
Parameter	90%	100%	110%	120%
Au Metal Price	58.3	84.4	110.4	133.3
Au Head Grade	59.4	84.4	109.3	131.5
Au Met Recovery	59.4	84.4	109.3	131.5
CAPEX	91.2	84.4	77.5	70.6
OPEX	97.9	84.4	70.8	57.2

All values are in US Dollars.

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Figure STYLEREF 1 \s 19. After-Tax NPV Sensitivity Graph

Source: This Report

The after-tax base case NPV is most sensitive to the gold metal price followed by gold metallurgical recoveries, head grades, OPEX, and then CAPEX.

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20.0 Adjacent Properties

Advanced exploration or operating properties are not known to exist immediately adjacent, or contiguous to, the SJG Project Property that have relevance to this Report.

20.1 Nearby Properties and Operating Mines

Other precious metal occurrences have been identified in the 1:50,000 Government geological map ”San Jose de Gracia” (G13 -A81). These ‘interest areas’ include a concentration of prospects known as “Potrero de Vargas, located 9.3 km southwest of San José de Gracia, inside the claim block La Noria, 15 km south of San José de Gracia, and “Sierrita de German” located on the boundary of the claim block about 24 km southeast of the village.

These areas are currently outside of the area of review and may not necessarily be indicative of the mineralization to be found on the SJG Property that is the subject of this Report. Nonetheless, these are areas for Dyna de Mexico to consider in future exploration programs.

20.2 Comment on Adjacent Properties

The QP has been unable to verify the information above. The information is not necessarily indicative of the mineralization on the SJG Project Property that is the subject of this Report.

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21.0 Other Relevant Data and Information

The QPs are not aware of any additional relevant data or information that should be included in this Technical Report Summary.

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22.0 Interpretation and Conclusions

22.1 Introduction

The QPs note the following interpretations and conclusions in their respective areas of expertise, based on the review of the data available for this Report.

22.2 Mineral Tenure, Surface Rights, Water Rights, Royalties and Agreements

Information from legal and DynaResource experts support that the tenure held is valid and sufficient to support a declaration of Mineral Resources and Mineral Reserves.

The SJG Project Property covers an area of 3,970 ha (or 9,810 acres). The Property is covered by 29 mining concessions, 28 of which are held 100% by DynaResource’s wholly-owned subsidiary, Dyna de Mexico. The San Miguel mining concession is not under Dyna´s control. Dyna de Mexico has entered into transfer agreements with the registered owners to 50% undivided title to San Miguel. It has entered into promise to sell and purchase agreements with registered owners to 50% undivided title to the San Miguel mining concession. Under Mexican law, such transfer agreements require the consent or relinquishment of first rights of refusal from the registered owners to 100% undivided title to produce legal effects and be eligible for registration before the Mines Recorders´ Office. All the mining concessions of the SJG Project Property are in good standing as of the effective date of this Report.

In addition to surface rights retained pursuant to the Mining Act of Mexico and its Regulations, Dyna de Mexico also maintains access and surface rights to virtually all the SJG Project area pursuant to a surface lease agreement entitled “Land Occupation Agreement” between the El Ejido Santa Maria and Dyna de Mexico, dated May 12, 2002 (the “SJG Project Surface Lease”). This surface lease covers 28,295 ha. The term of the SJG Project Surface Lease is 30 years and it is understood that the current agreement is in good standing.

Under the 30-year agreement with the Santa Maria Ejido, the Land in Common Use that covers the SJG Project area is 4,399 ha in size. Dyna de Mexico has no future financial obligations to maintain the SJG Project Surface Lease. However, Dyna de Mexico is required to execute mining activities in accordance with applicable Mexican environmental, mining and labor laws, and regulations.

The water source for the SJG Project camp is a well located close to the river that runs just west of the Village of San José de Gracia. Dyna de Mexico has obtained the water concession rights for this water source, which provides for usage of 1,000,000 m3 per year. Currently, SJG Project estimates that its annual consumption of water is about half that amount.

The SJG Mine is not subject to any royalties or environmental liabilities.

To the extent known to the QP, there are no other significant factors and risks that may affect access, title, or the right or ability to perform work on the SJG Project Property that are not discussed in the Report.

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22.3 Geology and Mineralization

Mineral deposits on the SJG Project Property are classified as low sulfidation epithermal gold-silver deposits.

The understanding of the vein settings, lithologies, mineralization, and the geological, structural, and alteration controls on mineralization is sufficient to support estimation of Mineral Resources and Mineral Reserves.

There is remaining exploration potential in the SJG Project area. Some of the known veins remain open along strike and at depth. Surface geological mapping, mineral prospecting and limited drilling activities have identified mineralized structures to the north and south of the Project Area that require further drill testing.

22.4 Exploration, Drilling and Analytical data Collection in Support of Mineral Resource Estimation

22.5 Metallurgy and Processing (Updated: 09Apr25)

22.6 Mineral Resource Estimate

The effective date of this Mineral Resource Estimate is March 24, 2025. DynaResource provided a database of 627 diamond holes totaling 126,736 m in comma separated value (“csv”) format from several drilling programs. A total of 393 drill holes totaling 80,345 m intersected the Mineral Resource domain wireframes. Gold mineralization at SJG is found in many veins, of which only 11 have been considered for Mineral Resource estimation. Drill hole intervals within vein wireframes were composited to 1.0 m lengths. Grade capping analyses were undertaken on the 1.0 m composite values in the database and a capping value of 90 g/t Au was applied to all domains with a total of seven composites capped. Variography analyses were performed by the QPs using the gold composites within each individual vein The bulk density used for this MRE is 2.68 t/m3. Mineral Resource grade estimation was restricted to the defined veins. All block grades were interpolated using Inverse Distance Cubed (“ID3”) anisotropic weighting in two passes. The Mineral Resource Estimate exclusive of Mineral Reserves is stated in Table 22.1.

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Table STYLEREF 1 \s 22. <br>Mineral Resource Estimate at 2.0 g/t Au Cut-off
Zone	Classification	Tonnes<br><br>(k)	Au<br><br>(g/t)	Au<br><br>(koz)	Metallurgical<br><br>Recovery
Total	Indicated	286	6.74	62	80%
	Inferred	97	4.37	14

22.7 Mineral Reserve Estimate

Mining shapes were provided by DynaResource and average total dilution of 20.9% (10.8% internal, 10.1% external), with a 5% mining loss applied. Historical costs summaries, mining contracts and site budgets were used to generate costs and cut-off grades for the mining plan. Smelter terms for gold are $20/oz for refining, $99/dmt for treatment, $25/wmt for transport, and the payable ratio is 94.375%. The Mineral Reserve for the Project is summarized in Table 22.2.

Table STYLEREF 1 \s 22. <br>Mineral Reserve Estimate
Reserve Class	Tonnes<br>(k)	Grade<br>(g/t Au)	Contained Metal<br>(koz Au)
Proven	1,114	5.23	187.2
Probable	493	4.18	66.3
Proven & Probable1	1,607	4.91	253.5

Note: 1. Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.

22.8 Mining Methods

The SJG Project is an active underground cut-and-fill mining operation focused on extracting gold, with a minor silver byproduct, from narrow veins in three main production zones over a strike of 2.75 km to a maximum depth of 480 m below surface. The Project contains mineralized zones that vary in dip and thickness along both strike and depth. Generally, the veins are 1 to 2 m in thickness and dip between 30 to 40° from horizontal. The mining method is a hybrid of textbook cut-and-fill and resue. Access levels are nominally spaced 15 m apart, with a 3 m thick pillar left below next upper level to provide stability and prevent the ingress of unconsolidated backfill from the stope above entering the active mining areas. Ore is loaded into haul trucks at loading bays in the ramp on each level. Development rates in the mine plan average ~25 mpd from 2025 to 2028, with all planned capital development complete by EOY 2029. A total of 37.5 km of lateral development and 1.8 km of vertical development are included in the mine plan. The mine plan has an average ore production rate of ~230 ktpa for a LOM total of 1,607 kt.

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22.9 Recovery Methods

The process plant is operating at an acceptable level with required improvements underway and planned for 2025. For the year 2024, average gravity and flotation process recovery was 76% with two separate gravity and flotation concentrates bagged and shipped to off-shore smelters via the purchaser.

In 2024, the process plant produced 50 to 70 tonnes of concentrates daily with head grades at 4 to 5 g/t Au, concentrates at 50 to 70 g/t Au, and an average recovery of 76% Au. Total concentrate production was 26,641 ounces of gold. During the first two months of 2025, concentrate production was 3,889 ounces of gold at 74% recovery.

22.10 Project Infrastructure

The only reasonably secure road access to SJG Project is on 84 km of ballasted road to the Town of Sinaloa de Leyva. Most of this road is in reasonably good condition in the dry season (October through June) and can be transited freely by vehicles of up to 20 tonne capacity. Within the San José de Gracia Village limits and <1 km from DynaResource’s offices, there is a 665 m (2,200 ft) long airstrip surfaced in pea-sized gravel ~20 m wide. Currently active mine portals are located ~6 and 7 km from the Village of San José de Gracia. The mine offices, camp, and process plant are located immediately adjacent to the Town. The active tailings storage facility (“TSF”) is located 260 m from the process plant.

The water source for the SJG camp is from two water wells located close the Village of San José de Gracia. Dyna de Mexico has obtained the water concession rights through CONAGUA for this water source, which provides for usage of 1,000,000 m3 per year. Sixty percent of the water associated with the tailings is recovered and returned to the process plant. Waste water from the camp facilities is disposed of through a septic tank and percolation system.

Dyna de Mexico manages a closed, dry camp adjacent to their process plant which provides housing, meals and basics services to a portion of their employees. The camp is closed, and entry is restricted by a guard and gatehouse that are staffed 24 hours per day. Additional security is stationed at the explosive magazines. Offices are available in the camp environment to support human resources, purchasing, on-site accounting, community relations, safety, engineering, geology, and surveying. There is always a paramedic on-site. A fully equipped ambulance is available on-site in case of emergency. In case of more dire circumstances, air ambulance service is available from Culiacan.

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22.11 Markets and Contracts

At the SJG Project, the base metal flotation process recovery to concentrate technique is utilized. The concentrate is bagged and sent to a smelter for final gold recovery and payment. Dyna de Mexico has recently completed a plan of operations forecasting mine and process plant production through to calendar year 2029. Currently, an amended contract is in place for the purchase of all gold concentrates from the SJG Project. Concentrates will be delivered to the buyer’s warehouse in Manzanillo, Colima, Mexico. Concentrate typically runs >50 g/t Au and a payable factor 94.75% is most common. There is a slight credit for silver content. The corporate projections of ~155,000 payable gold ounces at US$2,500/oz for 2025 to 2029 are a very conservative and are based on the relatively small quantity of gold produced at the SJG Project. Under the existing offtake agreement, the company will be able to sell all its production at or above a prevailing price that will be most likely above the figure used in its internal forecasts.

22.12 Environmental Studies, Permitting and Social Considerations

Dyna de Mexico has sought and obtained all required environmental permits, temporary land occupation rights and consent letters from the regulatory agencies, local municipalities and the State of Sinaloa required to complete the recent mining, production, exploration, and drilling activities on the four main deposit areas at SJG. Dyna de Mexico is expected to be required to obtain further permits to complete additional exploration activities and future mining and processing activities. Limited permit applications are anticipated to be applied as a result of the modestly altered 2025 processing strategy.

The SJG Project Mine holds the following Federal Permits and registrations;

 CONAGUA002, Exploitation of Underground water, 2013.

 LAU Processing Plant, 2019.

 CONAGUA003, Exploitation of Underground water, 2015.

 Exemption underground exploitation San Pablo Mine, 2013.

 Exemption Environmental Impact Manifest, SEMARNAT Resolutive, Underground Exploitation 080613 Ad 2013.

 Exemption Environmental Impact Manifest Resolutive SEMARNAT, Rehabilitation.

 Maintenance and Re-use, Flotation Plant 2013.

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 Exemption, Underground exploitation, Re-use, 2013.

 Preventive Report (IP), Mining Exploration, 2018.

 Register in SEMARNAT, Dangerous Waste.

 Exemption, Resolutive to Presentation of MIA, Underground Exploitation, 082115.

 Application of Exemption MIA, Mill Plant and Tailings Dam.

 Summary of Environmental Updates, San José de Gracia Mine.

 Forest, Change of Land Use, Exploration 2010.

 Environmental Impact Statement (MIA) Exemption.

 Justified Technical Studies for Mina San Pablo, La Union, Purisima, Tres Amigos.

 Act of Land Use Change (CUS).

 Explosives Use and Storage Permit.

 All Labor and Securities permitting.

22.13 Capital and Operating Costs

22.14 Economic Analysis

A financial model was developed to estimate the LOM plan comprised of mining DynaResource’s SJG Project. The LOM plan covers a 7-year period. Currency is in Q2 2025 US dollars unless otherwise stated. Inflation has not been considered in the financial analysis. Under baseline scenarios of 5% discount rate and $2,500/oz Au, the overall after-tax NPV of the Project is estimated at $84.4M ($110.0M pre-tax). The after-tax base case NPV’s is most sensitive to the gold metal price followed by gold metallurgical recoveries and gold head grades followed by OPEX, and then CAPEX.

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22.15 Risks and Opportunities

22.15.1 Risks

22.15.1.1 Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation

A structured risk management process should be established to promote timely identification of risks, determine probability and consequence of risk actualization, and propose risk mitigation plans to reduce the probability and (or) impacts. The same process should be utilized to identify and promote opportunities.

22.15.1.2 Metallurgical Testwork and Recovery Plan

Potential risks for metallurgical testwork and recovery include:

 Metallurgical Recoveries (Low Risk). Forward looking recoveries as based on operating data and preliminary gravity and flotation testing. Unmet projected recoveries could result in reduced metal production and revenue. Continued internal testwork on the three mineralized zones will help minimize future risks;

 Mill Feed Hardness (Low Risk). Increases in hardness and grindability will lower planned mill throughput, reducing metal production. Additional milling capacity is available and could be strategically utilized;

 Water Source (Low Risk). The water source for the entire mine site is currently supplied by an existing bore hole pond and supply is based on the present water balance. To date, water shortages have not been reported. Nevertheless, a possible alternative water source could minimize risks of future water shortages; and

 Electricity Source (Low Risk). Power for the entire mine site is supplied by the limited CFE power supply main line which may risk future plant expansions. Generated power is available, but at a higher OPEX cost.

22.15.1.3 Mineral Resource Estimate

 MRE classification for Measured and Indicated may be overstated (low).

 Bulk density may be overstated (low).

 Inferred Resources may be costly to convert to Indicated (low).

 MRE grade may be overstated (low).

 Historical workings depletion may be understated (low).

22.15.1.4 Mineral Reserve Estimate and Mine Plan

 Some stopes may not be economically viable due to excessive development (mod).

 Marginal cut-off grade not being applied (low).

 Stope extraction sequence not optimized to maximize NPV (low).

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 Backfill sourced underground is too expensive (low).

 All operating costs not being are included in cut-off calculation (low).

22.15.1.5 Project Infrastructure

 Project main access road washout or landslide blockage (low).

 TSF embankment failure (low).

 Lack of make-up water for process plant (low).

 Excessive power interruptions (low).

22.15.2 Opportunities

22.15.2.1 Exploration and Mineral Resources

Several potential opportunities have been identified for expansion and increasing confidence of existing Mineral Resources, in addition to brownfields exploration to test defined targets along vein strike and at depth.

The most significant upside is the potential for:

 Conversion of Inferred Mineral Resources to Indicated Resources through infill drilling; and

 Discovery of additional mineralization through exploration and exploration drilling that may support Mineral Resource estimation.

The 2025 drill program should also focus on identifying additional Inferred Mineral Resources and to conversion of existing Inferred to Indicated Mineral Resources. Work will consist of infill and Inferred Resources drilling and brownfields exploration drilling to test mapped targets along vein strike and at depth.

22.15.2.2 Mineral Resource Estimate

 Additional Mineral Resources found during stope access development (mod).

 Inferred Mineral Resources converted to Indicated by re-examining classification (low).

 Mineral Resource cut-off grade lower due to high gold price (mod).

 Newly discovered mineralization from exploration drilling (mod).

22.15.2.3 Mine Design and Schedule Optimization

 Utilize marginal cut-off to define additional Mineral Reserves (mod).

 Stope economic viability checks to prevent project losses (mod).

 Optimize stope extraction sequence to maximize NPV (mod).

 Source low-cost surface material for backfill (mod).

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22.15.2.4 Recovery Plan

Potential opportunities for metallurgical testwork and recovery include:

 Current recovery assumptions and planned process flow changes will increase metal production and decrease OPEX cost, potentially having a positive impact on cash flow.

22.15.2.5 Project Infrastructure

 Invest more in local haulage road maintenance to improve trafficability (mod).

 Investigate modifications or alternatives to TSF expansion (low).

 Investigate additional water sources (mod).

23.0 Recommendations

Table STYLEREF 1 \s 23. <br>Summary of Budget for Recommended Exploration and<br>Development Activities in 2025
Exploration and Development Activity	Cost Estimate<br><br>($M)
Exploration and Mineral Resource Conversion Drilling (~15,000 m)	1.39
QA/QC	0.10
Bulk Density Investigation	0.03
Mineral Resource Estimation	0.15
Mine Design	0.10
Metallurgy	0.25
Subtotal	2.02
Contingency (15%)	0.30
Total	2.32

Note: Numbers may not add due to rounding.

23.1 Mine Exploration

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The specific objectives and targets of the recommended drilling are as follows. At Tres Amigos (Figure 23.1) 5,500 m of diamond drilling is recommended to target undefined and Inferred Mineral Resources. Also, this program would help define vein continuity laterally and at depth and confirm the presence of dominant structure and assess the Southeast extension of the Deposit in relation to a known regional-scale fault. In the San Pablo Northeast and Tres Amigos Southwest area, 4,300 m of exploration drilling is recommended to investigate whether mineralization is present in the unexplored area between these two deposits. At San Pablo (Figure 23.2), 2,350 m of diamond drilling is recommended to delineate new Inferred Mineral Resources in the San Pablo Veins below the 489 level. Some of these drill holes should be extended to define potential mineralization in a new structure, known at higher elevations as the Guadalupe Vein. At Mochomera (Figure 23.3), 1,300 m of drilling is recommended to convert Inferred Mineral Resources and also to define the northern limits of Level 480 at Mochomera and Level 470 of San Pablo.

Figure STYLEREF 1 \s 23. Recommended Drilling at Tres Amigos

Source: Modified by P&E (This Report) from DynaResource (March 2025)

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Figure STYLEREF 1 \s 23. Recommended Drilling at San Pablo

Source: Modified by P&E (This Report) from DynaResource (March 2025)

Figure STYLEREF 1 \s 23. Recommended Drilling at Mochomera

Source: Modified by P&E (This Report) from DynaResource (March 2025)

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23.2 Quality Assurance / Quality Control

Recommendation is made for future drill hole sampling at the Project to include the insertion of certified reference materials (“CRMs”) and blanks at a rate of ~1:20, the inclusion of field and coarse reject duplicates in QA/QC protocol, and to umpire sample a minimum of 5% of all future drill core samples at a reputable secondary laboratory. It is also recommended to follow-up QC sample failures on receipt of assay results, and liaise with the lab promptly about increased QC sample failure rates to ensure issues are addressed early. Recommendation is made to re-assay batches HMS21001226, HMS22000022, and HMS24000126 to confirm drill core sample results.

23.3 Mineral Resource Estimation

Mineral Resource recommendations are as follows:

 Frequent bulk density measurements on 10% of mineralized assays;

 Depletion of historical workings by cookie cutter projections onto Mineral Resource blocks; and

 Investigate grade capping by more than one method.

23.4 Mine Design

Mine design recommendations are as follows:

 Perform individual stope economic analyses to ensure viability.

 Utilize marginal cut-off grade in areas where adjacent working are viable.

 Optimize stope extraction sequence to maximize NPV.

 Perform trade-off analysis on backfill source (mined underground or surface quarry).

 Ensure all operating costs are included in cut-off calculation.

 Develop various cut-offs for each mine area.

23.5 Metallurgy and Processing

The process plant is operating at an acceptable level with required improvements underway and planned for 2025. Processing improvements and on-going maintenance are priorities for the SJG Operation management team and these initiatives will continue to improve process operation in terms of process steady state, minimize operational downtime, and increase and optimize recovery and concentrate production.

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Current and planned improvements include:

 Crushing circuit improvements to ensure consistent F80 feeds size for milling circuit;

 Improve overall circuit sampling and metallurgical balances to ensure monthly reconciliation;

 Installation of automatic samplers is recommended;

 Improve mill feed split to the three primary grinding circuits as current manual gates for splitting feed and actual tonnage rates are unknown;

 Strategic installation of weightometers is recommended, preferably belt scales;

 Control loop with variable speed drives to ensure consistency to mill feed and avoid surges within the circuit;

 Gravity concentrators within the mill circuit;

 Flotation level control on cells including rougher cells no. 1 and no. 2;

 Revamp existing rougher and scavenger cells;

o Replace existing improper agitators with proper flotation impellers and diffusers;

o Improved air introduction into the cells via the shaft;

 Improve concentrate dewatering and filtering;

o Proper operation of concentrate thickener and existing chamber press to ensure and minimize resultant shipping moistures, and

 Upgrade site security with cameras and new fencing around plant and concentrate areas.

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24.0 References

Buchanan, L.J. 1981. Precious Metal Deposits associated with Volcanic Environments in the Southwest; in Relations of Tectonics to Ore Deposits in the Southern Cordillera. Arizona Geological Society Digest, Vol. 14, 237-262.

Campa, M.F. and Coney, P.J. 1983. Tectono-Stratigraphic Terranes and Mineral Resources Distribution in Mexico, Can. J. Earth Sci., v. 20, pp. 1040-10.

Cambrubi, A., Farrari, L., Cosca, M.A., Cardellach, E. and Canals, A. 2003. Ages of Epithermal Deposits in Mexico: Regional Significance and Links with the Evolution of Tertiary Volcanism, Econ. Geol. v. 98, pp 1029-1037.

Camprubi, A. and Albinson, T. 2007. Epithermal Deposits in Mexico-Update of Current Knowledge, and an Empirical Reclassification, in Geol. Soc. America Special Paper 422, p. 377-415.

Caracle Creek. 2007. Structural Report, San Jose de Gracia Gold Property, Sinoloa State, Mexico. Prepared by Stephen Wetherup for Minas de DynaResources de Mexico S.A. de C.V. Dated September 21, 2007.

Childe, F. and Kaip, A. 2000a. “Interim Exploration Report for the San José de Gracia Gold Project”. Summary Report prepared for DynaResource, Inc., Irving, Texas (“DynaUSA”).

Childe, F. and Kaip, A. 2000b. “La Purisima Compilation and Resource Potential”, prepared for DynaResource, Inc., Irving, Texas (“DynaUSA”).

CIM Definition Standards. 2010. “For Mineral Resources and Mineral Reserves Prepared by the CIM Standing Committee on Reserve Definitions Adopted by CIM Council on November 27, 2010.”

Clark, H.M. 1991. “Geology of the Tayoltita Mine, San Dimas District, Durango, in The Geology of North America”, Vol. Pt-3, Economic Geology, Mexico, The Geological Society of America, p. 219-227.

Corbett, G.J. 2007. “Controls to Low Sulphidation Epithermal Au-Ag mineralization”.

Cordery, J. 2009. The Control on the Low Sulphidation Epithermal Gold Mineralization in the San Jose de Gracia Project, Sinaloa, Mexico. Internal Company Report dated June 27, 2009. 28 pages.

Cuttle, J. and Giroux, G. 2011. NI 43-101 Technical Report on the San Jose de Gracia Project and Resource Estimates on the Tres Amigos, San Pablo, La Union, La Purisima Zones, northeast Sinaloa, Mexico. Prepared for Goldgroup Resources Inc. with an amended date of February 28, 2011. 145 pages.

DynaResource de Mexico, SA de CV. Internal report from sampling and surveying at La Prieta, Buen Blanco.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Einaudi, M.T., Hedenquist, J.W. and Esra Inan, E. 2003. Sulfidation State of Fluids in Active and Extinct Hydrothermal Systems: Transition from Porphyry to Epithermal Environments, Econ. Geo., Special Pub. 10, 50 pp.

Espinoza, R. and Sandefur, R. 2012. Technical Report, San Jose de Gracia Project, Northern Sinaloa; Mexico. Technical Report prepared by Servicios y Proyextos Mineros de Mexico S.A. de C.V. for DynaResource de Mexico, S.A. de C.V. Effective Date: February 6, 2012, Report Date: March 28, 2012, amended December 31, 2012. 205 pages.

Giroux, G. and Cuttle, J. 2012. NI 43-101 Technical Report on the San Jose de Gracia Project: Updated Resource Estimates on the Tres Amigos, San Pablo, La Union, La Purisima Zones, Northeast Sinaloa, Mexico. Prepared for DynaResource de Mexico S.A. de C.V. Effective Date September 5, 2011, Report Date: January 3, 2012.

Gomez, C. 2024. Informe de Resultados Pruebas Metalurgicas.

Hazen Research Inc. 1999. “Process Development for Tres Amigos Orebody”. August 6, 1999. p. 3-18.

Heald, P., Foley, N.K and Hayba, D.O. 1987. “Comparative Anatomy of Volcanic-Hosted Epithermal Deposits: Acid-Sulphate and Adularia Sericite Types”; Economic Geology, Vol. 82, pages 1-2 6.

Henderson and Associates. 2006. “Process Description. New 250 MTPD Mill”. March 26, 2006. p. 1-7.

Henry, C.D. 1975. Geology and Ore Deposits of the San Dimas District, Sinaloa and Durango: Tayoltita, Durango, Mexico, San Luis Mining Co., internal report. 531 pages.

Kaip, A. and Childe, F. 2000. Interim Exploration Report for DynaResource, Inc., Irving, Texas (DynaUSA).

Kaip, A. and Childe, F. 2000. La Purisima Compilation and Resource Potential. Prepared for DynaResource, Inc., Irving, Texas (“DynaUSA”).

Luna R. and Sandefur R. 2012. Technical Report. San Jose de Gracia Project. Northern Sinaloa, Mexico, 2012.

McDowell, F.W., and Clabaugh, S.E. 1979. Ignimbrites of the Sierra Madre Occidental and their Relation to the Tectonic History of Western Mexico, in Chapin, C.E., and Elston, W.E., eds., Ash-Flow Tuffs: Geological Society of America Special Paper 180, p. 113–124.

Pamicon Developments Ltd. 1999. Summary Report of San Jose de Gracia Property. Sinaloa State, Mexico. Prepared by Ikona, C. K. and Scott, T. C. for Golden Hemlock Explorations Ltd., Vancouver, BC. September 1999.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

Pressacco, R. 2009. “Technical Report for the San José de Gracia Project and Resource Estimate for the San Pablo and Tres Amigos areas, Sinaloa State, Mexico”. Micon International Limited. In-complete internal report for Goldgroup Mining Inc.

Sedlock, R.L, Ortega-Gutierrez, F. and Speed, R.F. 1993. Tectonostratigraphic Terranes and Tectonic Evolution of Mexico, Geol. Soc. America, Special Paper 278, 153 pp.

Servicio Geológico Mexicano. 2008a. Carta Geológico-Minera, San Jose de Gracia G13 A81, Chihuahua- Sinaloa_GM, 1:50,000.

Servicio Geologico Mexicano. 2008b. “Texto de Carta Geologico- Minera G13 A81. San Jose de Gracia, Sinaloa- Chihuahua. 1:50,000. Procesos Analiticos e Informaticos SA de CV. p 1- 53.

Silitoe, R.H. 1997. “Characteristics and Controls of the Largest Porphyry Copper-Gold and Epithermal Deposits of the Circum Pacific Region”. Australian Journal of Earth Sciences, Vol. 44, 1997, pp. 373-388.

Southworth J R. 1905. The Mines of Mexico. Blake and McKenzie, Liverpool, England. p. 200-05.

Sullivan, J.R. and MacFarlane, R. 2006. A Technical Review of the San José de Gracia Gold Property, Sinaloa State, Mexico. Watts, Griffis and McQuat Limited. Draft internal report for Goldgroup Mining Inc.

Torres Ortiz J. 2008. San Jose de Gracia. Carta Geologico- Minera. Texto.

Zonge Engineering Research Organization Inc. 2009. Dipole - Dipole Complex Resistivity and Natural Source AMT Surveys on the San Jose de Gracia Project, Sinaloa, Mexico, Interpretive Report. Prepared by Reed, E.V., Geophysicist, Tucson, Arizona.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

25.0 Reliance on Information Provided by the Registrant

25.1 Introduction

The QPs have relied on information provided by DynaResource (the “Registrant”) including expert reports, in preparing its findings and conclusions regarding the following modifying factors: macroeconomic information, marketing information, legal matters, environmental matters, accommodations the registrant commits or plans to provide to local individuals or groups in connection with its mine plans, and governmental factors.

The QPs consider it reasonable to rely on DynaResource for this information, because they have obtained opinion from appropriate experts.

25.2 Legal Matters

The QPs have not independently reviewed ownership of the SJG Project Property and any underlying mineral tenure and surface rights. The QPs have fully relied on information derived from the Company and legal experts retained by DynaResource for this information through the following documents:

 Soluciones Mineras Leodan Carval, S.C. 2025. Opinion Legal sobre ciertas concesiones mineras gue integran el Proyecto Minero denominado "San Jose de Gracia" (La ''Propiedad SJG"). March 24, 2025; and

 “Land Occupation Agreement” between the El Ejido Santa Maria and Dyna de Mexico, dated May 12, 2002 (the “SJG Project Surface Lease”).

This information is used in the summary in Section 1, and in Section 3, Property Description and Location, of the Report. It is also used to support the Mineral Resource Estimate in Section 11, the Mineral Reserve Estimate in Section 12, and the economic analysis in Section 19.

25.3 Geomechanical

The QPs have fully relied on geomechanical information derived by Victor Avila and Diego Navarro, provided by DynaResource, and was used in Section 13.2 and 13.3 of this Report.

25.4 Environmental Matters and Community Accommodations

The QPs have not independently reviewed environmental baseline, permitting, and social information for the SJG Project Operation. The QPs have fully relied on information derived from the Company and experts retained by the company for this information.

This information is used in Section 17 of the Report. It is also used to support the Mineral Resource Estimate in Section 11, the Mineral Reserve Estimate in Section 12, and the economic analysis in Section 19.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico

25.5 Market Information

The QPs have fully relied on market and concentrate sales contracts information provided by DynaResource. The market information used in Section 16 of the Report is also used to support the Mineral Resource Estimate in Section 11, the Mineral Reserve Estimate in Section 12, and the economic analysis in Section 19.

25.6 Taxation

The QPs have fully relied on taxation information provided by DynaResource that was used in the economic analysis in Section 19 of this Report.

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DynaResource Inc., San José de Gracia Gold Project, Sinaloa State, Mexico