Dynaresource, Inc. (OTC: DYNR)

DynaResource, Inc. engages in the acquisition, investment, and development of precious metal properties and the production and sale of gold and silver. The company’s primary operation centers on the San José de Gracia mine in northern Sinaloa, Mexico, where it extracts ore, processes it into gold and silver concentrate, and sells the concentrate to third party processors. As of December 31, 2025, DynaResource operated through a wholly owned U. S. holding company and 4 Mexican subsidiaries that hold the mining concessions and conduct all exploration, development, and production activities. The San José de Gracia mine consists of multiple mineral concessions that have been granted for 50 year terms and are renewable for another 50 years upon timely application.

The company generates revenue solely from the sale of gold and silver concentrate produced at the San José de Gracia mine. Concentrate is produced by crushing and grinding the ore to a sand like consistency, allowing waste materials to be separated and the gold and silver content to be concentrated. Concentrate is sold under offtake agreements to a buyer that offers the best terms based on price, treatment, refining, and payment conditions, with the price tied to the London PM gold fix less a payability adjustment. In 2025, DynaResource delivered and sold 20,848 ounces of gold contained in concentrate. Under its offtake agreements, DynaResource has entered into various hedging arrangements, including a fixed price contract for 9,000 ounces of gold at $2,495 per ounce and a series of collar options that set price floors and caps for additional ounces.

The company operates through the following segments. No other operating segments are identified by the company.

• Exploration, Development, Production and Sale of Gold and Silver: This segment encompasses the acquisition of mining concessions, exploration and drilling, ore extraction, processing into gold and silver concentrate, and the sale of that concentrate to third party refiners. It also includes the management of environmental compliance, community relations, and the maintenance of processing facilities at the San José de Gracia site.

DynaResource operates in a highly competitive precious metal mining industry that includes large, well capitalized companies with extensive technical staff and financial resources. While the company may face disadvantages in securing capital and competing for prime mineral properties, it differentiates itself through a focus on responsible production, including the use of biodegradable solvents, community investment projects, and long term renewable mining concessions in Mexico. The company’s competitive position is further supported by its adherence to Mexican mining laws, its ongoing reclamation efforts, and its efforts to maintain good relations with local communities.

The company sells its gold and silver concentrate to a 1 off take purchaser under an Advance Credit Line Facility and a Revolving Credit Line Facility, but it notes that the concentrate can be sold to numerous traders worldwide, so it is not dependent on a limited number of customers. The buyer is typically a precious metal trader or refiner that processes the concentrate into final metal products. This arrangement allows DynaResource to access global precious metal markets while maintaining flexibility to negotiate terms based on prevailing market conditions.