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.

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.

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

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

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

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;

 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.

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%.