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TAYLOR HARD MONEY ADVISORS, INC. PO Box 780555, Maspeth, NY 11378 (718) 457-1426 July 20, 2012

J Taylors WWW.MININGSTOCKS.COM

Energy & Tech Stocks

Weekly Hotline Message (Now in our 30thYear) July 20, 2012

Stock Pick of the Week

Dynacor Gold MinesTraded TSXDNG/USOTCDNGDF; Shares O/S 35.8 million

Recent Price $0.50 = $18 Million Market Cap

This is one of my favorite A1 producers. At $0.50this is a real bargain in my view for the followingreasons:

The company is beating its guidance forthe production of 50,000 ounces of goldthis year from its core ore purchasingbusiness and may well earn $0.20 pershare this year. (See discussion of latestquarterly results below.)

Steady growth can be expected to continuefrom an increase in the core business of orepurchases plus production from its ownhigh-grade underground vein system,which should bolster profit marginsconsiderably.

The companys exploration prospects forits gold-copper skarn target are looking asgood as ever, as no fewer than six major

mining companies surround the prospectlocated in elephant country.

Management is committed to growing thecompany organically and is very carefulnot to dilute shareholders interest in thecompany.

The company is well regarded in Peru andhas a very good working relationship withlocal communities. It views the latest

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TAYLOR HARD MONEY ADVISORS, INC. PO Box 780555, Maspeth, NY 11378 (718) 457-1426 July 20, 2012

Copyright @ 2012 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED

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political change there as positive for the country and for its business, though it has resulted in sometemporary delays in May production and in receiving permits for drilling at Tumipampa.

The stock is priced at a very low level. It is currently selling at approximately 2 X this yearsprojected earnings and 1 X earning in a year or two from now, as the company may conceivablyexceed the 100,000-ounce-per-year production level and as it begins producing from its own high-grade underground deposit.

Following is a press release put out this past week that announced June production levels:

Dynacor produces 5,327 oz Au in June

2012-07-18 07:06 ET - News Release

Mr. Jean Martineau reports

DYNACOR: JUNE 2012 RECORD GOLD PRODUCTION

During the past six months Dynacor Gold Mines Inc.'s ore processing plant at Acari has been operating atclose to its maximum capacity of 220 tonnes per day and continues to generate a strong cash flow for the

company. In the month of June, 2012, Dynacor produced an all-time record of 5,327 ounces of gold ascompared with its previous record in February, 2012, of 4,747 ounces of gold, representing an increase of12.2 per cent.

During the second quarter the company produced 12,384 ounces of gold. Production slowed down for atwo-week period in May when the company stopped purchasing ore in order to assess the impact of thenew legislation on its ore purchasing activities and ensure compliance. During this period, the companyprocessed the low-grade ore it had in its inventory albeit at a slower rate.

Ore processing data for gold in first quarter and second quarter 2012 are summarized in the associatedtable. Silver production in first quarter and second quarter 2012 was 41,112 and 34,529 ounces,respectively. The company is confident that its production for 2012 will meet or exceed its previously

published 2012 guidance of 50,000 ounces of gold.GOLD ORE PROCESSING DURING Q1 AND Q2 2012

Average ore Average Gold

processed gold grade Yield produced

Calendar (tonnes/day) (oz/tonne) (%) (ounces)

Q1 216 0.794 94.0% 13,111

Q2

April 215 0.817 93.6% 4,394

May 142 0.715 93.8% 2,663

June 220 0.895 93.5% 5,327

2012/2013 outlook for gold ore processing

In order to maintain its growth and gold production momentum, in October, 2011, the company decided tobuild a new ore processing plant at Chala in southern Peru. As required by the Peruvian mining laws twocommunity participative workshops were successfully held in Chala in early 2012. The necessary land forthe new plant and tailing ponds has been acquired. An environmental impact study has been submitted tothe authorities and the necessary hydrological study realized. The engineering study for the new plant is

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TAYLOR HARD MONEY ADVISORS, INC. PO Box 780555, Maspeth, NY 11378 (718) 457-1426 July 20, 2012

Copyright @ 2012 TAYLOR HARD MONEY ADVISORS, INC. ALL RIGHTS RESERVED

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now complete. The company is awaiting the environmental permit in order to apply for the constructionpermit, which is the last step to build the new facility.

This new gold ore processing facility will have an initial capacity of 300 tonnes per day and designed tobe readily upgraded to 430 tonnes per day. When this new plant comes on stream Dynacor's goldproduction from ore processing will increase substantially.

EDITORS COMMENT: This companys management team has a history of under promising and overdelivering. The May number was lower because management need to be sure all its suppliers of ore werein compliance with new government regulations, which management believes will benefit Dynacor. Thatwas only a temporary slowdown. Despite that slowdown, production levels are on track to beat the50,000-ounce projection for the year.

Although permitting of Tumipampa for drilling has been delayed, management is confident it will soonhave permits and it is also of the opinion that the new government in Peru is doing a great job on theenvironmental front and in ridding the country of the kind of backroom corruption that may have beenmore common in the past. Overall, management believes the environment for its business in Peru isimproving with the new government.

J Taylors Gold, Energy & Tech Stocks (JTGETS), is published monthly as a copyright publication of Taylor Hard Money Advisors, Inc.(THMA), Tel.: (718) 457-1426. Website: www.miningstocks.com. THMA provides investment ideas solely on a paid subscription basis. Companiesare selected for presentation in JTGTS strictly on their merits as perceived by THMA. No fee is charged to the company for inclusion. The currencyused in this publication is the U.S. dollar unless otherwise noted. The material contained herein is solely for information purposes. Readers areencouraged to conduct their own research and due diligence, and/or obtain professional advice. The information contained herein is based on sources,which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the

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