DYNACOR TO SPIN OFF GOLD ASSETS TO SHAREHOLDERS

Montreal, Quebec, February 20, 2007 - Dynacor Mines Inc. (TSX: DYN) is pleased to announce its intention to roll over its gold assets into a new subsidiary and to give its shareholders ownership of such subsidiary. Dynacor will continue to focus on developing its tungsten production at the Pasto Bueno mine, in Peru.

"The creation of this new company is further evidence of Dynacor's focus on maximizing value and profitable growth. The transaction reflects the different business characteristics of the new company and those of the on-going Dynacor. It also provides our shareholders with two distinct investment alternatives," said Marc Blais, president and chief executive officer of Dynacor.

The new company, to be named later, will have all the current gold assets of Dynacor, namely the Acari mine and all the gold exploration properties, which include the Tumipampa and Casaden properties.

Acari Operations
In 2005, the Acari mine generated an operating profit of $1,032,979 from the 14,300 ounces of gold produced from the custom milling operations. During 2006, the mill capacity was enlarged from 60 to 100 t/d and will be increased again in 2007 to be able to process 130 t/d.

Tumipampa Property
The Tumipampa property was acquired in 2001. In 2002 and 2003, sixteen holes were drilled for a total of 4,055 metres. As of today, six major veins have been discovered. Drill hole number one intercepted a structure named "Manto Dorado" grading 7.33 g/t Au and 0.71% Cu on 5.18 metres (true width). Drill hole number three intercepted a structure grading 8.20 g/t Au and 0.06% Cu on 3.39 metres. Finally, drill hole number six intercepted a vein grading 12.25 g/t Au on 1.30 metre.

The Plan
The plan is for the new company to be domiciled in Canada and to list its shares on a recognizable Canadian stock exchange.

The current directors and officers of Dynacor will be the first directors and officers of the new company.

The intended spin-off will be in the form of a pro-rata distribution of common stock of the new company, which is expected to be available on a tax neutral basis to the majority of Dynacor shareholders. The capital structure of the two companies at the time of the spin-off will be optimized according to their respective financial requirements and opportunities. As part of the transaction, it is contemplated that the new company will raise equity to finance the exploration programs on its gold properties.

The transaction is contingent upon a number of conditions including the receipt of required regulatory approvals. Assuming these conditions are met, Dynacor expects to complete the transaction in April 2007.

In due course, information relating to the transaction, including a prospectus, will be prepared and distributed to holders of Dynacor common shares. Record and distribution dates for the spin-off of the new company, as well as the other details relating to the distribution of the new company's shares will be established prior to completion of the transaction.

Iv�n Quiroz, General Manager and Director, is a mining engineer and metallurgist, and a member of the Collegio de Ingenieros del Per�. He is the Qualified Person ("QP") and is responsible for the technical information contained in this press release.

For more information, please contact:

Marc Blais, President  
Dynacor Mines Inc.  
450-667-3224  

Jean Martineau, Chairman of the Board
Dynacor Mines Inc.
450-667-3224

Renmark Financial Communications Inc.
Sylvain Laberge: ! slaberge@renmarkfinancial.com
Danielle Velez : dvelez@renmarkfinancial.com
Media: Vanessa Napoli : vnapoli@renmarkfinancial.com
Tel.: (514) 939-3989  Fax: (514) 939-3717
www.renmarkfinancial.com