Malaga reports sales of $2.3 million of tungsten concentrate for the first quarter 2007

Montr�al, Qu�bec, May 23, 2007 - For the quarter ended March 31, 2007, Malaga inc. (previously Dynacor Mines Inc.) (TSX: DYN) reports gross sales deriving from tungsten concentrate from its Pasto Bueno mine, in the amount of $2.3 million. Also, as previously announced, the Pasto Bueno mine began commercial production as of April 1, 2007.

It is important to note that due to the fact that commercial production was announced after the closing of Q1-2007, the gross sales amount of $2.3 million was presented on the Q1 financial statements, under deduction of deferred development and exploration expenses. For further detail, see the complete consolidated financial statements for Q1-2007.

REORGANIZATIONAL UPDATE
On February 20, 2007, the Company announced, by way of press release, its intention to roll over its gold assets into a new subsidiary (the "Reorganization"). During the Annual Shareholders Meeting, held May 16, 2007, the Reorganization was voted in. Pursuant to a share purchase agreement to be entered into between the Company and its subsidiary Dynacor Gold Mines Inc., the Company transferred to Dynacor Gold Mines Inc. the shares of Minera Dynacor del Per� S.A.C., a wholly-owned subsidiary of the Company which owns the gold interests in the Acari, Casaden and Tumi pampa properties, located in Peru. The Pasto Bueno property, therefore the tungsten assets, is to remain the principal asset of the Company, newly named Malaga Inc.

Malaga Inc. reports its financial results for the three-month period ended March 31, 2007. The consolidated financial statements along with management's discussion and analysis are available for viewing on the Malaga Inc. website at www.dynacor.com. The documents can also be found on SEDAR (www.sedar.com).

SUMMARY OF FINANCIAL RESULTS FOR THE FIRST QUARTER 2007
compared to results for the first quarter 2006

• The Company reported a net loss of $932,920 compared to a net loss of $367,560 for the same three-month period in 2006. Included in this, is an increase in administrative expenses from $344,275 in Q1-2006 to $711,532 in Q1-2007. The increase is due to the rise in activity related to the start-up of production at the Pasto Bueno mill in Peru.
  
  
• During the first quarter of 2007, the Company has continued increasing its production at the Pasto Bueno mine. The mine's current production rate is at 186 tonnes/day. Increases are expected to continue in order to achieve by Q2-2007, the mill's maximum capacity of 250 tonnes/day.
  
  
• Total gold sales at the Acari mine, derived from ore purchased from local miners, were 4,312 ounces in Q1-2007, compared to 2,336 ounces in Q1-2006.
  
  
• The average selling price per ounce of gold was US$644 in Q1-2007, compared to US$543 per ounce in Q1-2006.
  
  
• Operating costs per ounce of gold sold increased to US$572 per ounce in Q1-2007, compared to US$487 per ounce in Q1-2006.
  
  
• Along with the increase of gold production at the Acari mine, and the increase in the price of gold, the Company's gross margin increased from $169,982 in Q1-2006 to $378,583 in Q1-2007.

Working capital at March 31, 2007 was $2,686,936 compared to $1,655,837 at March 31, 2006.

COMPANY PROFILE
Malaga Inc. is a mining company which owns and operates, through its subsidiaries, a tungsten mine and gold plant with mining and exploration activities focused in Peru. It holds 100% interest, and operates the Pasto Bueno tungsten mine. In addition, the Company holds 44% interest in the Peruvian company called Hidroelectrica Pelagatos. This corporation operates the hydroelectric potential of the Pasto Bueno property.

The Company focuses on efficient and productive mining practices, in order to optimize current operations. The Company is committed to growth, through increasing its production levels, continuing exploration projects on existing properties and through strategic acquisitions. It also seeks diverse growth opportunities such as the hydroelectric potential through Hidroelectrica Pelagatos.

For more information, please contact:

MARC BLAIS 
PRESIDENT 
MALAGA INC. 
450 667-3224 

JEAN MARTINEAU / CHRISTINA LALLI
CHAIRMAN OF THE BOARD / INVESTOR RELATIONS
MALAGA INC.
450 667-3224

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