Dynacor Gold Mines Inc. (dynacor) Symbol: DNG Toronto Stock Exchange (TSX)

MONTREAL, May 22 /CNW Telbec/ - Dynacor Gold Mines Inc. (Dynacor TSX:DNG) is pleased to announce record gold sales of 6.71 million dollars as well as its financial results for the first quarter of 2008. The consolidated financial statements (all currency figures appear in Canadian dollars unless otherwise specified) along with the management's discussion and analysis are available for the viewing on the Dynacor's website at www.dynacorgold.com and the documents have been filed with SEDAR at www.sedar.com.

	    Q1 2008 Highlights  	    << 	    - Record gold sales of 6.71 million dollars at an average sale price of 	      US$931 an ounce produced at an average custom milling cost of US$818; 	    - Gross earnings of $799,257 (before amortization) and $725,597 (after 	      amortization) and net earnings of $228,600 ($0.01 per share); 	    - Cash and cash equivalents of $1,488,297 and a working capital of 	      $4,490,273; 	    - For the first time in its history the Acari plant attained a daily 	      production capacity of 120t/day (a 100% increase since Q1 2006); 	    - Drilling of the Tumipampa property continued at a fast pace and the 	      Company expects to release these results during Q2  

Overall, during Q1 2008 Dynacor operated in a favourable environment that was characterized by a buoyant gold market. Record gold sales were attained and the capacity of the Acari Plant was increased by 20% relative to Q4 2007. Management is determined to pursue this expansion in the plant's capacity during 2008. The Company also opened a new gold ore purchasing office in Espinar/Cusco some 770 km south of the Acari where many new gold mining operations have emerged in the last two years.

Operating Activities

The Company recorded net earnings of $228,600, or earnings per share of $0.01. Gross earnings reached $725,597. Gross earnings were reduced, mainly, by the general and administrative expenses of $416,792 and the stock-based compensation of $174,004 in regards with the issuance of stock options during the period.

	    Principal Financial Data (in $000) 	                                                                 Three-month 	                                                                period ended 	                                                              March 31, 2008 	                                                            ----------------- 	    Sales                                                              6,710 	    Net earnings                                                         229 	    Cash flow increase from operating activities before 	    Non-cash working capital items                                       481 	    Cash flow from operating activities                                  180 	    Cash and cash equivalents                                          1,488 	    Total assets                                                      20,702 	    Shareholders' equity                                              17,812 	    Outstanding shares as at March 31                             30,000,100  	    Gold Sales 	    Gold sales can be summarized as follows: 	                                                                        2008  	    Sales of gold (ounces)                                             7,266 	                                                            -----------------  	                                                                           $ 	    Sales                                                          6,710,432 	    Cost of sales                                                  5,911,175 	                                                            -----------------  	    Gross earnings before amortization                               799,257 	    Amortization                                                      73,660 	                                                            ----------------- 	    Gross earnings                                                   725,597 	                                                            ----------------- 	    >>  

In Q1 2008, total gold production came from the purchase of ore from local producers and was sold in the open market and the Company did not have any hedging activities.

	    OUTLOOK FOR 2008  	    Custom Gold Milling  

Phase 1 of the increase in milling capacity has now been completed and the Acari mill now has a daily capacity of 120 tons/day. During Q1 2008, the Company installed a new additional ball mill (5.5 x 6 ft) and a new 16 x 16 ft cyanidation tank. Both of these new pieces of equipment have been tested and are now fully operational. Installation of the Merrill Crowe unit is now completed and this equipment is undergoing extensive testing before being commissioned. Once it is operational it will enable the Company to further increase its production capacity during Q2/Q3 2008.

The Company expects to process over 30,000 ounces of gold in 2008 and will gradually increase its capacity up to 150t/day by the end of 2008.

Exploration Activities

Phase 1 of the previously announced 11,000 meter drilling campaign of the Tumipampa property (see Press Release dated November 22, 2007) has been completed on schedule. In all 15 holes have been drilled adding up to a total of approximately 3,000 meters. Initial results on three drill holes were reported in a press release on the 12th of February 2008 and the Company is eagerly awaiting further results which will be reported as soon as possible.

Dynacor Gold plans to continue to explore actively its 100% owned Tumipampa property during Q3 and Q4 of 2008 and this will include drilling as well geophysical surveys and surface sampling.

Ivan Quiroz, Vice President Operations and Director, is a mining engineer and metallurgist, and a member of the Collegio de Ingenieros del Peru. He is Dynacor Gold's "Qualified Person" and is responsible for the technical information contained in this press release. Thus, Mr. Quiroz can testify to the precision and exactitude of the data and the mining and geological knowledge of the Acari plant, and the Tumipampa property, as required by National Instrument 43-101 and its annexes with respect to the reporting and content of this press release.

ABOUT DYNACOR GOLD MINES INC.

Dynacor is a gold exploration and mining company, that has been active in Peru through its subsidiaries since 1996. The Company's assets include the Acari, Casaden and Tumipampa exploration properties. The Acari mill produces gold by custom milling. Dynacor's strength and competitive advantage comes with the experience and knowledge the Company has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.

For further information

Jean Martineau, President & CEO, Dynacor Gold Mines Inc., (514) 288-3224
Renmark Financial Communications Inc.: James Buchanan: jbuchanan@renmarkfinancial.com
Eric Saint-Pierre: estpierre@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com