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DynaResource Reports Recent Drilling Results From San Jose de Gracia

332.86 g/t Au over 5.5 M., Including: 2,424.89 g/t Au over 0.75 M. (DDH 10-203);

89.95 g/t over 1.42 M (DDH 10-217);


News provided by

DynaResource, Inc.

Jan 28, 2011, 12:05 ET

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IRVING, Texas, Jan. 28, 2011 /PRNewswire/ -- DynaResource, Inc. (Pink Sheets: DYNR) (DynaUSA or the Company) is pleased to announce recent drilling results from the current 18,500 meter diamond drilling program at the San Jose de Gracia Project in Sinaloa, Mexico ("San Jose de Gracia" – or "SJG"). The Company reports very significant gold mineralization intercepted at San Pablo area, including Drill Hole # SJG-10-203 yielding 332.86 g/t Au and 143.9 g/t Ag over 5.50 meters from 70.65 to 76.15 meters depth (true width estimated to be 4.0 meters); and, including 0.75 meters of 2,424.89 g/t Au and 1,037.80 g/t Ag; and, Drill Hole # 10-217 which intercepted 89.95 g/t Au over 1.42 M. Assay results of drill holes 10-203 and 10-217, and additional drilling results from San Pablo, La Union and La Purisima areas are shown below:

Highlights



SJG Drill Hole

From (m)

To (m)

Length (m)

Au g/t

Ag g/t

# 10–203 (San Pablo)

70.65

76.15

5.50

332.86

143.90

Including

70.65

71.40

0.75

2,424.89

1,037.80

# 10–217 (San Pablo)

182.64

184.06

1.42

89.95

38.7

SAN PABLO VEIN

SJG Drill Hole

Mineralization


From (m)

To (m)

Interval (m)

Au grade (g/t)

SJG 10-195

54.03

54.43

0.40

3.43

And

110.16

110.89

0.73

2.18

And

163.89

165.72

1.83

2.20

And

167.95

169.16

1.21

3.68

And

170.67

173.61

2.94

3.26

SJG 10-197

12.19

13.35

1.16

2.83

And

48.15

51.82

3.67

7.96

And

102.00

105.30

3.30

28.38

SJG 10-199

4.68

6.24

1.56

9.14

SJG 10-201

23.40

25.50

2.10

15.78

SJG 10-203

36.05

36.75

0.70

3.23

And

47.24

49.15

1.91

3.42

And

70.65

76.15

5.50

332.86*

Including

70.65

71.40

0.75

2,424.89*

SJG 10-205

56.70

57.65

0.95

6.71

And

63.05

63.50

0.45

7.73

SJG 10-207

80.15

83.20

3.05

16.74

SJG 10-210

46.05

46.45

0.4

2.58

SJG 10-212

46.80

51.60

4.80

5.90

And

54.97

56.50

1.53

2.85

SJG 10-213

171.75

173.56

1.81

5.78

SJG 10-215

186.80

190.27

3.47

15.82

And

196.70

198.10

1.40

2.53

SJG 10-217

182.64

184.06

1.42

89.95*

SJG 10-219

141.34

141.80

0.46

4.49

And

144.59

145.30

0.71

7.92

And

155.84

157.25

1.41

10.82

And

176.72

177.52

0.80

2.23

SJG 10-221

69.98

71.98

2.00

13.14

And

75.28

75.82

0.54

3.26

And

93.85

94.50

0.65

22.41

SJG 10-224

122.82

125.05

2.23

5.29

And

148.60

154.95

6.35

7.04

Including

151.60

154.95

3.35

11.93

And

158.70

159.48

0.78

1.80

And

197.9

198.35

0.45

6.84



LA UNION VEIN

SJG Drill Hole

Mineralization


From (m)

To (m)

Interval (m)

Au grade (g/t)

SJG 10-208

150.61

152.67

2.06

6.60

SJG 10-216

15.48

17.25

1.77

5.45

And

39.24

42.20

2.96

12.36

SJG 10-218

59.68

60.08

0.40

2.53

And

140.01

141.30

1.29

8.42

SJG 10-220

92.91

93.31

0.40

2.83

SJG 10-223

25.40

26.65

1.25

2.28

And

29.52

31.14

1.62

9.90

And

57.45

60.60

3.15

2.33

And

63.90

67.42

3.52

10.24

And

74.60

77.65

3.05

2.18

LA PURISIMA VEIN


SJG Drill Hole

Mineralization


From (m)

To (m)

Interval (m)

Au grade (g/t)

SJG 10-191

69.84

71.12

1.28

2.08

And

190.50

191.67

1.17

2.04

SJG 10-193

41.15

46.75

5.60

3.96

SJG 10-198

35.05

36.58

1.53

13.64

SJG 10-202

37.50

38.65

1.15

5.36

SJG 10-204

45.60

46.65

1.05

3.85

And

83.35

86.45

3.10

2.19

And

128.02

131.86

3.84

4.06

And

173.15

174.58

1.43

7.21

And

183.63

184.40

0.77

9.91

SJG 10-206

121.73

124.04

2.31

14.63

K.D. DIEPHOLZ, CHAIRMAN / CEO of DynaResource stated, "The exceptional bonanza grade drill intersection at drill hole SJG # 10-203 further confirms the rich mineralization which typifies the San Jose de Gracia District. The results of 10-217, and the additional results from recent drill holes intercepting the San Pablo quartz breccia vein, La Union, and La Purisima are consistent with previous drilling results from these areas. The Company is pleased to recognize these results and we look forward to receiving and reporting additional drilling results, including those from Tres Amigos, in the near future."

"I would like to express appreciation again to Goldgroup for its ongoing capital contributions to DynaMexico and for its technical contributions to SJG; and I would like to thank Dr. Jose Vargas Lugo, Operations Manager, for his focus and dedication to the activities of DynaMexico. The Company looks forward to continuing success in identifying additional gold resources at SJG through core drilling programs, and we look forward to planning the mining and production activities at SJG."

About San Jose de Gracia

The San Jose de Gracia District, covering 99,500 hectares, is 100%-owned by DynaResource de MexicoS.A. de C.V. ("DynaMexico"). DynaResource currently owns 75% of DynaMexico and Goldgroup owns 25 %, after completing the first stages of its Earn-In by contributing US $ 6 M. to DynaMexico at September 15, 2009. Goldgroup has contributed an additional US $ 9 M. (of the US. $ 12 M. required) towards the Earn In of an additional 25% of DynaMexico; and Goldgroup would complete the Earn In of a total of 50 % of DynaMexico through the contribution of the current balance remaining of US $ 3 M. by March 15, 2011.

In excess of one million Oz. Gold has been produced from the SJG District in the early 1900's, originating from veins grading from 30.0 g/t Au to 60.0 g/t Au. An updated 43-101 compliant technical report is expected to be commissioned by DynaMexico at the completion of the current 18,500 meter drill program, to update the gold resource reflected in the 43-101 report retained by Goldgroup dated March 2010. This March 10, 2010 43-101 report was authored by Jim Cuttle, B.Sc., P.Geo., Whistler, BC. Canada, and included a resource estimate compiled by Gary Giroux, Giroux Consultants Ltd., Vancouver, BC. Canada ("the Goldgroup 43-101"). The Goldgroup 43-101 (including drill holes through SJG 08-126 at August, 2009) reported an inferred resource at SJG of 618,000 Oz. Gold, with a cutoff of 2 g/t., and an overall average grade of 5.59 g/t Au; (Silver, Copper, and Zinc credits added an approx. 60,000 Oz. Au Equiv. to the Goldgroup 43-101). The updated 43-101 to be commissioned by DynaMexico ("the DynaMexico 43-101") will reflect the additional drilling results of core drill holes since SJG 08-126 (August, 2009) and will include the ongoing drill results at San Pablo, Tres Amigos, La Union and La Purisima areas of SJG.

In, June 2010, the SJG Project was recognized as the most significant Gold Project in the State of Sinaloa for the year 2010. (See Company News Release of Sept. 8, 2010).

DynaUSA and Goldgroup are targeting an annual production of 100,000 Oz. Gold from San Jose de Gracia.

About DynaResource

DynaResource is a Resource Investment and Management Company based in Irving, Texas, with a current focus on the SJG Project in Mexico, targeting growth in the defining and production of gold and silver resources. The Company formed DynaMexico in March, 2000 specifically for the purpose of acquiring and consolidating the SJG District; and it completed the consolidation of the entire SJG District (approx. 15 sq. Km. at that time) in 2003. During the period 2003 – 2006, DynaMexico conducted Pilot Production operations at the San Pablo area of SJG; reporting production results of: 18,250 Oz. Gold produced; 42,500 tons mined; average feed grade of approximately 20 g/t Gold; and, average production costs of < $ 175. / Oz. In September 2006, the Company entered into the Earn In / Option Agreement with Goldgroup, which provided that Goldgroup contribute $ 18 M. USD in funding to DynaMexico for exploration / development expenditures at SJG, in exchange for 50 % of the outstanding shares of DynaMexico.

In consideration of the historical 1 M. Oz. gold production from SJG, the results from the 2003-2006 pilot production operation, the gold resources being reported in the Goldgroup 43-101, the resources anticipated to be reported in the DynaMexico 43-101; and recent drilling results from San Pablo, Tres Amigos, La Union and La Purisima areas of SJG; the Company currently projects a potential 100,000 Oz. per year gold production from the SJG Project, from which the Company would be the beneficiary as a 50 % shareholder of DynaMexico. The Company has planned and structured itself for this potential revenue position as a shareholder of DynaMexico, and will consider distributions of a percentage of its retained earnings as a dividend to Shareholders.

For further information on DynaResource, please visit www.dynaresource.com or contact:

Brad J. Saulter, V.P.

Investor Relations

T: 972-868-9066

K.D. Diepholz, CEO T: 972-868-9066

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This News release contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed "forward-looking". All statements in this news release, other than statements of historical fact, that address events or developments that DynaResource expects to occur, are "forward-looking information". These statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities of DynaResource. These forward-looking statements reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to DynaResource. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company's plans at the San Jose de Gracia property. Many of these assumptions are based on factors and events that are not within the control of DynaResource and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country which DynaResource currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which DynaResource does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those risks referenced in the Annual Report for DynaResource available at www.sec.gov. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although DynaResource believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. DynaResource expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

SOURCE DynaResource, Inc.

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