# EDGAR Filing Document

**Accession Number:** 0001111741
**File Stem:** 0001193125-25-282709
**Filing Date:** 2025-11
**Character Count:** 292378
**Document Hash:** 1698c5954471769259b400464d049a00
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-282709.hdr.sgml**: 20251114

**ACCESSION NUMBER**: 0001193125-25-282709

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 100

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251114

**DATE AS OF CHANGE**: 20251114

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DYNARESOURCE, INC.
- **CENTRAL INDEX KEY:** 0001111741
- **STANDARD INDUSTRIAL CLASSIFICATION:** METAL MINING [1000]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 941589426
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-30371
- **FILM NUMBER:** 251485074

**BUSINESS ADDRESS:**
- **STREET 1:** 222 W. LAS COLINAS BLVD
- **STREET 2:** SUITE 1910 NORTH TOWER
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75039
- **BUSINESS PHONE:** (972) 868-9066

**MAIL ADDRESS:**
- **STREET 1:** 222 W. LAS COLINAS BLVD
- **STREET 2:** SUITE 1910 NORTH TOWER
- **CITY:** IRVING
- **STATE:** TX
- **ZIP:** 75039

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DYNARESOURCE INC
- **DATE OF NAME CHANGE:** 20080508

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DYNA RESOURCE INC
- **DATE OF NAME CHANGE:** 20000412

?xml version='1.0' encoding='ASCII'? 10-Q

[**<u>**Table of Contents**</u>**](#toc_page)

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **September 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period**

**Commission File Number:** 000-30371

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![img245375195_0.jpg](img245375195_0.jpg)

DYNARESOURCE, INC.

**(Exact Name of Registrant as Specified in its Charter)**

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---

| | |
|:---|:---|
| Delaware | 94-1589426 |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |
| 222 W. Las Colinas Blvd.**,** Suite 1910 North Tower<br>Irving**,** TX | 75039 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code:** 

**(**972**)** 869-9400

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Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☐ |  |  |

---

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[**<u>**Table of Contents**</u>**](#toc_page)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 14, 2025 there were 29,315,726 shares of Common Stock of the registrant outstanding.

------

[**<u>**Table of Contents**</u>**](#toc_page)

**<u>**TABLE OF CONTENTS**</u>**

---

| | | |
|:---|:---|:---|
| <u>PART I.</u> | [<u>FINANCIAL STATEMENTS</u>](#financial_statements) |  |
| <u>ITEM 1.</u> | [<u>Unaudited Condensed Interim Consolidated Financial Statements</u>](#consolidated_financial_statements) | 3 |
|  | [<u>Notes to Unaudited Condensed Interim Consolidated Financial Statements</u>](#notes_to_the_unaudited_consolidated_fin) | 7 |
| <u>ITEM 2.</u> | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | 31 |
| <u>ITEM 3.</u> | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_and_qualitative) | 45 |
| <u>ITEM 4.</u> | [<u>Controls and Procedures</u>](#item_4_controls_and_procedures) | 45 |
| <u>PART II.</u> | [<u>OTHER INFORMATION</u>](#part_ii) |  |
| <u>ITEM 1.</u> | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 47 |
| <u>ITEM 2.</u> | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_of_equity) | 48 |
| <u>ITEM 3.</u> | [<u>Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | 48 |
| <u>ITEM 4.</u> | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 48 |
| <u>ITEM 5.</u> | [<u>Other Information</u>](#item_5_other_information) | 48 |
| <u>ITEM 6.</u> | [<u>Exhibits</u>](#item_6_exhibits) | 49 |

---

**CERTIFICATIONS**

---

| | |
|:---|:---|
| EXHIBIT 31.1 | CHIEF EXECUTIVE OFFICER CERTIFICATION |
| EXHIBIT 31.2 | CHIEF FINANCIAL OFFICER CERTIFICATION |
| EXHIBIT 32.1 | CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 |

---

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[**<u>**Table of Contents**</u>**](#toc_page)

**DYNARESOURCE, INC.**

**CONDENSED INTERIM CONSOLIDATED BAL** **ANCE SHEETS**

**SEPTEMBER 30, 2025 AND DECEMBER 31, 2024**

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  | **(Unaudited)** | **(Restated)** |
| **ASSETS** |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | $4876966 | $4781352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 1293494 | 1208346 |
| &nbsp;&nbsp;&nbsp;&nbsp;Concentrate and ore inventories (Note 4) | 1761356 | 1576392 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign tax receivable | 2009941 | 2690309 |
| &nbsp;&nbsp;&nbsp;&nbsp;Supplies inventory | 2664526 | 1258064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets (Note 6) | 1162687 | 656239 |
| Total current assets | 13768970 | 12170702 |
| Mineral property interests, plant and equipment (net of accumulated |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; depreciation and depletion of $744,377 and $42,738) (Note 5) | 12438141 | 4211968 |
| Right-of-use assets, net | 523750 | 734229 |
| Deferred tax asset, net (Note 14) | 3814590 | 4633513 |
| Foreign tax receivable | 24743342 | 16613129 |
| Other assets |  | 160407 |
| **TOTAL ASSETS** | $55288793 | $38523948 |
| **LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities |  |  |
| Accounts payable and accrued liabilities (Note 7) | $17839369 | $10317179 |
| Accrued mining taxes and other liabilities (Note 7) | 4616599 | 5172685 |
| Derivative liability (Note 8) | 1115206 | 892167 |
| Credit line (Note 9) | 5833333 | 9850000 |
| Current portion of operating lease payable (Note 15) | 87689 | 122630 |
| Mining concession duties payable (Note 10) | 4956971 | 4059565 |
| Total current liabilities | 34449167 | 30414226 |
| Credit line (Note 9) | 9166667 |  |
| Operating lease payable, less current portion (Note 15) | 511317 | 702531 |
| Deferred tax liability (Note 14) | 307777 | 307777 |
| Asset retirement obligation (Note 11) | 238478 | 223520 |
| Other liabilities | 352783 |  |
| **TOTAL LIABILITIES** | 45026189 | 31648054 |
| **TEMPORARY EQUITY (Note 12)** |  |  |
| Series C Senior Convertible Preferred Stock, $0.0001 par value, 1,734,992 shares authorized, issued and outstanding | 4337480 | 4337480 |
| Series D Senior Convertible Preferred Stock, $0.0001 par value, 3,000,000 shares authorized, 760,000 shares issued and outstanding | 1520000 | 1520000 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| **STOCKHOLDERS' EQUITY (Note 12)** |  |  |
| Common Stock, $0.01 par value, 40,000,000 shares authorized 29,315,726 shares issued and outstanding | 293157 | 293157 |
| Series E Convertible Preferred Stock, $0.0001 par value, 1,552,795 shares authorized, issued and outstanding | 2500000 | 2500000 |
| Preferred rights | 40000 | 40000 |
| Shares to be issued | 240000 |  |
| Additional paid-in-capital | 71375688 | 69131186 |
| Treasury stock, 37,180 shares each period, at cost | (95023) | (95023) |
| Accumulated other comprehensive income | (3251109) | (1788699) |
| Accumulated deficit | (66697589) | (69062207) |
| **TOTAL STOCKHOLDERS' EQUITY** | 4405124 | 1018414 |
| **TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS' EQUITY** | $55288793 | $38523948 |

---

**The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.**

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[**<u>**Table of Contents**</u>**](#toc_page)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **DYNARESOURCE, INC.** | **DYNARESOURCE, INC.** | **DYNARESOURCE, INC.** | **DYNARESOURCE, INC.** | **DYNARESOURCE, INC.** |
| **CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND** | **CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND** | **CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND** | **CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND** | **CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND** |
| **COMPREHENSIVE INCOME (LOSS)** | **COMPREHENSIVE INCOME (LOSS)** | **COMPREHENSIVE INCOME (LOSS)** | **COMPREHENSIVE INCOME (LOSS)** | **COMPREHENSIVE INCOME (LOSS)** |
| **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024** |
| **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | **Three months** | **Three months** | **Nine months** | **Nine months** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **REVENUE** | 14119589 | 11203505 | 43702276 | 31715963 |
| Operating costs | (11083333) | (10879420) | (31745772) | (35192790) |
| Depreciation and depletion | (314757) |  | (723294) |  |
| **GROSS PROFIT** | $2721499 | $324085 | $11233210 | $(3476827) |
| General and administrative expenses | 1587771 | 908880 | 4632309 | 3176716 |
| Stock-based compensation (Note 13) | 1657839 |  | 2484503 | 822500 |
| Accretion expense (Note 11) | 4986 | 4565 | 14958 | 13695 |
| Right of use asset amortization | 19520 | 26237 | 75029 | 85666 |
| Depreciation and amortization | 23719 | 7906 | 23719 | 22593 |
| **OPERATING INCOME (LOSS)** | (572336) | (623503) | 4002692 | (7597997) |
| Foreign currency losses | (3921219) | 267548 | (4084085) | 244356 |
| Interest expense | 419413 | 469933 | 1195090 | 1305270 |
| Derivative mark-to-market loss (gain) | (44610) | (477125) | 223039 | (923017) |
| Other expenses | 1460236 | (13347) | 2029975 | (18309) |
| **NET INCOME (LOSS) BEFORE TAXES** | 1513844 | (870512) | 4638673 | (8206297) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mining tax expense (Note 14) | 542872 |  | 1354635 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (Note 14) | (288248) |  | 919420 |  |
| TOTAL TAX EXPENSE | 254624 |  | 2274055 |  |
| **NET INCOME (LOSS)** | $1259220 | $(870512) | $2364618 | $(8206297) |
| DEEMED DIVIDEND FOR SERIES C & D PREFERRED | (58574) | (58574) | (175724) | (175724) |
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $1200646 | $(929086) | $2188894 | $(8382021) |
| **INCOME (LOSS) PER SHARE ATTRIBUTABLE TO THE EQUITY HOLDERS OF DYNARESOURCE, INC.** |  |  |  |  |
| Basic income (loss) per common share | $0.04 | $(0.04) | $0.07 | $(0.36) |
| Weighted average shares outstanding – Basic | 29315726 | 23658995 | 29315726 | 23470266 |
| Diluted income (loss) per common share | $0.06 | $(0.04) | $0.10 | $(0.36) |
| Weighted average shares outstanding – Diluted | 38155766 | 23658995 | 38155766 | 23470266 |
| **OTHER COMPREHENSIVE INCOME (LOSS)** |  |  |  |  |
| Unrealized foreign currency translation gain (loss) | (2430032) | (746323) | (1462410) | (1243875) |
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (2430032) | (746323) | (1462410) | (1243875) |
| **TOTAL COMPREHENSIVE INCOME (LOSS)** | $(1170812) | $(1616835) | $902208 | $(9450172) |

---

**The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.**

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[**<u>**Table of Contents**</u>**](#toc_page)

**DYNARESOURCE, INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

**FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024**

**(Restated)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred E** | **Preferred E** | **Common** | **Common** | **Preferred** | **Preferred** | **Shares To Be** | **Paid In** | **Treasury** | **Treasury** | **Other Comp** | **Accumulated** |  |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Rights** | **Amount** | **Issued** | **Capital** | **Shares** | **Amount** | **Income** | **Deficit** | **Totals** |
| Balance, June 30, 2024 | 1552795 | $2500000 | 23658995 | $236590 | 1 | $40000 | $— | $62791191 | 37180 | $(95023) | $200148 | $(65905952) | $(233046) |
| Sales of Series E Convertible Preferred Stock | - | - | - | - | - | - | - | - | - | - | - | - | $— |
| Stock Issued for Services | - | - | - | - | - | - | - | - | - | - | - | - | $— |
| Stock Compensation - Vesting | - | - | - | - | - | - | - | - | - | - | - | - | $— |
| Other Comprehensive Income | - | - | - | - | - | - | - | - | - | - | (746323) | - | $(746323) |
| Net Loss | - | - | - | - | - | - | - | - | - | - | - | (870512) | $(870512) |
| Balance, September 30, 2024 | 1552795 | $2500000 | 23658995 | $236590 | 1 | $40000 | $— | $62791191 | 37180 | $(95023) | $(546175) | $(66776464) | $(1849881) |
| Balance January 1, 2024 (restated) |  | $— | 23371708 | $233717 | 1 | $40000 | $— | $61509032 | 37180 | $(95023) | $697700 | $(58570167) | $3815259 |
| Sales of Series E Convertible Preferred Stock | 1552795 | 2500000 | - | - | - | - | - | - | - | - | - | - | $2500000 |
| Stock Issued for Services | - | - | 287287 | 2873 | - | - | - | 459659 | - | - | - | - | $462532 |
| Stock Compensation - Vesting | - | - | - | - | - | - | - | 822500 | - | - | - | - | $822500 |
| Other Comprehensive Income | - | - | - | - | - | - | - | - | - | - | (1243875) | - | $(1243875) |
| Net Loss | - | - | - | - | - | - | - | - | - | - | - | (8206297) | $(8206297) |
| Balance, September 30, 2024 | 1552795 | $2500000 | 23658995 | $236590 | 1 | $40000 | $— | $62791191 | 37180 | $(95023) | $(546175) | $(66776464) | $(1849881) |
| Balance, June 30, 2025 | 1552795 | $2500000 | 29315726 | $293157 | 1 | $40000 | $240000 | $69717850 | 37180 | $(95023) | $(821077) | $(67956809) | $3918098 |
| Stock Issued for Services | - | - | - | - | - | - | - | - | - | - | - | - | $— |
| Stock-based compensation - Vesting | - | - | - | - | - | - | - | 1657838 | - | - | - | - | $1657838 |
| Other Comprehensive Income | - | - | - | - | - | - | - | - | - | - | (2430032) | - | $(2430032) |
| Net Income | - | - | - | - | - | - | - | - | - | - | - | 1259220 | $1259220 |
| Balance, September 30, 2025 | 1552795 | $2500000 | 29315726 | $293157 | 1 | $40000 | $240000 | $71375688 | 37180 | $(95023) | $(3251109) | $(66697589) | $4405124 |
| Balance January 1, 2025 (restated) | 1552795 | $2500000 | 29315726 | $293157 | 1 | $40000 | $— | 69131186 | 37180 | $(95023) | $(1788699) | $(69062207) | $1018414 |
| Stock Issued for Services | - | - | - | - | - | - | 240000 | - | - | - | - | - | $240000 |
| Stock-based compensation - Vesting | - | - | - | - | - | - | - | 2244502 | - | - | - | - | $2244502 |
| Other Comprehensive Income | - | - | - | - | - | - | - | - | - | - | (1462410) | - | $(1462410) |
| Net Income | - | - | - | - | - | - | - | - | - | - | - | 2364618 | $2364618 |
| Balance, September 30, 2025 | 1552795 | $2500000 | 29315726 | $293157 | 1 | $40000 | $240000 | 71375688 | 37180 | $(95023) | $(3251109) | $(66697589) | $4405124 |

---

**The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.**

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[**<u>**Table of Contents**</u>**](#toc_page)

**DYNARESOURCE, INC.**

**CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| Net income (loss) | $2364618 | $(8206297) |
| Adjustments to reconcile net income (loss) to cash used in operating activities |  |  |
| Derivatives mark-to-market gain | 223039 | (923017) |
| Accretion expense | 14958 | 13695 |
| Depreciation and depletion (Note 5) | 747013 | 22593 |
| Right-of-use asset amortization | 75029 | 85666 |
| Other expense | 1291230 |  |
| Stock-based compensation | 2484503 | 822500 |
| Deferred tax asset | 818923 |  |
| Foreign exchange | (1295217) |  |
| Operating cash flows before change in non-cash working capital items | 6724096 | (8184860) |
| Change in non-cash working capital items: |  |  |
| Accounts receivable | (85148) | (535583) |
| Inventories | (1920684) | 233211 |
| Foreign tax receivable | (5530841) | (5008356) |
| Other assets | (279503) | (1007697) |
| Accounts payable and accrued expenses | 4700397 | 2680834 |
| Other liabilities | 352783 | 2808978 |
| **CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES** | 3961100 | (9013473) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| Mine development | (6863818) |  |
| Purchase of equipment | (2109368) | (6755) |
| **CASH FLOWS USED IN INVESTING ACTIVITIES** | (8973186) | (6755) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Proceeds from credit line (Note 9) | 17650000 | 4000000 |
| Proceeds from sale of Series E Convertible Preferred Stock (Note 12) | - | 2500000 |
| Payments of credit line (Note 9) | (12500000) | (2437500) |
| Operating lease payments | (90704) | (83787) |
| **CASH FLOWS PROVIDED BY FINANCING ACTIVITIES** | 5059296 | 3978713 |
| Effects of foreign currency in cash | 48404 | 33826 |
| **NET INCREASE (DECREASE) IN CASH** | 95614 | (5007689) |
| **CASH AT BEGINNING OF PERIOD** | 4781352 | 5603713 |
| **CASH AT END OF PERIOD** | 4876966 | $596024 |
| **SUPPLEMENTAL DISCLOSURES** |  |  |
| Cash paid for interest | $743051 | $955272 |
| Cash paid for income taxes | $— | $— |
| Conversion of accrued expenses into common stock | $— | $462532 |

---

**The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.**

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[**<u>**Table of Contents**</u>**](#toc_page)

**DYNARESOURCE, INC.**

**NOTES TO THE UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER 30, 2025**

**<u>NOTE 1 - NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES</u>**

**Nature of Activities, History and Organization**

DynaResource, Inc. (the "Company" or "DynaResource") was organized on September 28, 1937, as a California corporation under the name of West Coast Mines, Inc. In 1998, the Company re-domiciled to Delaware and changed its name to DynaResource, Inc. The Company is in the business of acquiring, investing in, and developing precious metal properties, and the production of precious metals.

As of December 31, 2024, the Company had one wholly owned subsidiary in the United States, DynaMéxico US Holding, LLC ("US Holding") and three wholly owned subsidiaries in Mexico, DynaResource de México, S.A. de C.V. ("DynaMéxico"), Mineras de DynaResources S.A. de C.V. ("DynaMineras") and DynaResource Operaciones de San José de Gracia S.A. de C.V. ("DynaOperaciones"). In April 2024, as part of the Company's organizational, operating and tax strategy in Mexico, the Company purchased Minera de Alica S.A. de C.V. ("DynaAlica") a Mexican corporation with no assets, liabilities or activity.

Although the Company considers the four Mexican subsidiaries to be wholly owned, each has issued one qualifying share to a second shareholder as required under Mexican law, with such qualifying shares held by US Holding. DynaMéxico owns a portfolio of mining concessions that currently comprises its 100% interest in the San José de Gracia mine ("SJG") in northern Sinaloa State, México.

**Principles of Consolidation**

The unaudited condensed interim consolidated financial statements include the accounts of DynaResource, Inc., as well as the Company's wholly owned subsidiaries DynaMéxico, DynaMineras, DynaOperaciones and DynaAlica. All significant intercompany transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.

**Significant Accounting Policies**

The Company's management selects and applies accounting policies in accordance with generally accepted accounting principles ("GAAP") and determines the methods for their application. The application of these policies requires the use of estimates and the appropriate recognition, matching, and timing of revenues and expenses. The accounting policies adopted conform to GAAP and have been applied consistently in the preparation of these unaudited condensed interim consolidated financial statements.

The unaudited condensed interim consolidated financial statements and accompanying notes are representations of the Company's management, which is responsible for their integrity and objectivity. Management acknowledges its responsibility for adopting sound accounting practices, establishing and maintaining an effective system of internal accounting controls, and preventing and detecting fraud. The Company's system of internal accounting control is designed to ensure, among other objectives: (1) that recorded transactions are valid; (2) that valid transactions are recorded; and (3) that transactions are recorded in the proper period in a timely manner to produce financial statements that fairly present the financial position, results of operations, and cash flows of the Company for the periods presented.

**Basis of Presentation**

These unaudited condensed interim consolidated financial statements reflect the accounts of the Company and have been prepared in accordance with GAAP and the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") for interim financial reporting. Certain information and footnote disclosures normally included in audited annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted.

**Going concern**

These interim financial statements have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future. The information should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes included in its Annual Report on Form 10-K for the year ended December 31, 2024.

As of September 30, 2025, the Company had negative working capital of $20,680,197, an accumulated deficit of $66,697,589, and for the period ended September 30, 2025, had a net income of $2,364,618. These matters raise substantial doubt about the Company's suability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's

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ability to further implement its business plan, raise additional capital as needed from the sales of stock, additional debt financing or debt refinancing as may be required. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

**Use of Estimates**

The preparation of unaudited condensed interim consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the amounts reported in the financial statements and disclosures of contingent assets and liabilities. Actual results could differ materially from those estimates.

**Production Stage Issuer**

The definitions of Measured Mineral Resource, Mineral Reserve and Mineral Resource are set forth in SEC Regulation S-K, Item 1300 ("S-K 1300").

*Measured mineral resource* is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.

*Mineral reserve* is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.

*Mineral resource* is a concentration or occurrence of material of economic interest in or on the Earth's crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralization, taking into account relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralization drilled or sampled.

In accordance with S-K 1300, the SJG mine was classified as an Exploration Stage Property prior to January 1, 2025. This classification was based on the fact that the SJG mine had no Mineral Reserves as defined under S-K 1300. Although the SJG mine engaged in the mining of Mineral Resources and production of gold-silver concentrate, such activities were not sufficient to alter its classification as an Exploration Stage Property.

Effective January 1, 2025, following the completion of a Mineral Reserve estimate in accordance with S-K 1300, the Company transitioned from an Exploration Stage issuer to a Production Stage issuer. In connection with this transition, the Company updated its accounting estimates related to the capitalization of development costs and its depreciation and depletion methodologies. This change is treated as a change in accounting estimate under Accounting Standards Codification ("ASC") 250, and has been applied prospectively from January 1, 2025.

**Segment Information**

The Company operates as one reportable segment, focused on the exploration, development, production and sale of gold and silver in Mexico.

**Cash and Cash Equivalents**

The Company considers all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. Cash balances may, at times, exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limits. As of September 30, 2025, the Company had $4,543,033 in deposits in U.S. banks in excess of the FDIC limit. The Company had no cash equivalents as of September 30, 2025 or December 31, 2024. Deposits are maintained with high-quality financial institutions that management believes are creditworthy.

**Accounts Receivable and Allowances for Doubtful Accounts**

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Accounts receivable consist primarily of trade receivables related to the sale of metal concentrate, recorded net of allowances for doubtful accounts and mark-to-market adjustments on provisional invoices based on forward metal prices. An allowance is recorded when receivables are determined to be uncollectible. As of September 30, 2025 and December 31, 2024 management believes all accounts receivable are fully collectable.

**Mined Tonnage Inventory**

Mined tonnage inventory represents ore mined and stockpiled for further processing. Stockpile quantities are estimated based on tonnes added and removed, contained metals (based on assays), and estimated metallurgical recovery rates. Costs are allocated to stockpiles based on relative values and mining costs. Stockpiles are carried at the lower of average cost or net realizable value, based on estimated future sales prices, less estimated costs to complete production and sale.

**Concentrate Inventory**

Concentrate inventory, consisting of metal concentrates located at the Company facilities or in transit to customers is carried at the lower of production cost or net realizable value, based on current metals prices.

**Foreign Tax Receivable**

Foreign tax receivable is comprised of recoverable value-added taxes ("IVA") paid to the Mexican government on goods and services. Under certain circumstances, IVA is recoverable by filing a tax return. Amounts paid are tracked and recognized as receivables until collected.

**Proven and Probable Reserves**

The definitions of proven and probable mineral reserves are set forth in S-K 1300.

A proven mineral reserve is the economically mineable part of a measured mineral resource. The qualified person reflects a high degree of confidence in the results obtained from the application of modifying factors, as well as in the estimates of tonnage and grade or quality. A proven mineral reserve can only result from the conversion of a measured mineral resource.

A probable mineral reserve is the economically mineable part of an indicated mineral resource and in some cases, a measured mineral resource. The qualified person's confidence in the modifying factors and in the estimates of tonnage and grade or quality is lower for a probable reserve than for a proven mineral reserve, but still sufficient to demonstrate that extraction is economically viable at the time of recording, based on reasonable investment and market assumptions.

The lower level of confidence associated with a probable reserve arises either from geologic uncertainty when converting an indicated mineral resource or from greater risks related to the modifying factors when converting a measured mineral resource. A qualified person must classify a measured mineral resource as a probable mineral reserve if confidence in the application of the modifying factors is insufficient to support classification as a proven mineral reserve. See Note 3.

**Mineral Property Interests, Plant and Equipment**

*Mineral property interests:*

Mineral property interests consist of capitalized expenditures related to the development of mineral properties and mining concessions arising from acquisitions. The amount capitalized represents the fair value of the mineral property and associated mining concessions at the time of acquisition.

Development costs include engineering and metallurgical studies, drilling, and related costs to delineate an ore body, removal of overburden to initially expose an ore body at open pit surface mines, and the construction of access paths and other infrastructure to gain access to the ore body at underground mines. Development costs are expensed as Development and Stripping Costs when incurred until an economically viable deposit has been delineated, at which point such costs are capitalized. Where multiple open pits exist at a mine, pre-stripping costs are capitalized separately for each pit. Production commences when saleable minerals, beyond a de minimis amount, are produced.

During the production phase of a mine, costs incurred to provide access to reserves and resources that will be produced in future periods and that would not have otherwise been accessible are capitalized and included in the carrying value of the related mineral property interest.

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When proven and probable mineral reserves (as defined by S-K 1300) exist, development costs are capitalized. Drilling and related costs are capitalized for an ore body where an economically viable deposit exists and the activities are directed at obtaining additional information, providing greater definition of the ore body, or converting non-reserve mineralization to proven and/or probable reserves if the benefit is expected to be realized over a period beyond one year. All other drilling and related costs are expensed as incurred as Exploration or Development and Stripping Costs. Exploration costs include costs incurred to identify new mineral resources, evaluate potential resources, and convert mineral resources into proven and probable mineral reserves. Drilling costs incurred for the purpose of operational ore control during the production stage, rather than for obtaining additional information about the ore body, are allocated to inventory costs and then expensed as a component of production costs applicable to sales once revenue from the sale of inventory is realized.

Mineral property interests are amortized upon commencement of production on a unit-of-production basis over proven and probable mineral reserves. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, the amortization of the capitalized costs is charged to expense based on the most appropriate method, which includes the straight-line method and the units-of-production method over the total estimated production over the life of the mine, as determined by internal mine plans.

*Plant and equipment:* 

For properties where the Company has established economically viable deposits, expenditures for plant and equipment are capitalized and recorded at cost. The cost capitalized for plant and equipment includes borrowing costs that attributable to qualifying assets. Plant and equipment are depreciated using the straight-line method over the estimated productive lives of the assets.

*Construction-in-progress costs:* 

Assets under construction are capitalized as construction-in-progress until the asset is available for its intended use, at which point costs are transferred to the appropriate category of plant and equipment or mineral property interest and amortized. Construction-in-progress costs comprise the purchase price of the asset and any directly attributable costs incurred to bring the asset into working condition for its intended use.

Office furniture and equipment are depreciated using the straight-line method over estimated useful lives ranging from three to five years. Leasehold improvements related to the Company's corporate office are amortized over the term of the lease, which is 52 months.

For properties where the Company has not established economically viable deposits, substantially all costs, including design, engineering, construction, and installation of equipment, are expensed as incurred unless the equipment has alternative uses, significant salvage value, or probable future benefit, in which case the equipment is capitalized at cost.

**Impairment of Long-Lived Assets:** 

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Mineral properties are monitored for indicators of impairment based on factors such as changes in mineral prices, government regulations and taxation, the Company's continued right to explore the area, results from exploration activities (including assays, technical reports, and drill results), and the Company's ongoing plans and ability to fund exploration programs on the property.

For operating mines, recoverability is assessed by comparing the undiscounted future net cash flows expected to be generated by the asset to its net book value. If the net book value exceeds future net undiscounted future net cash flows, an impairment loss is recognized and measured as the excess of the asset's net book value over its estimated fair value. Fair value for operating mines is determined using a combined approach, which includes a discounted cash flow model for the existing operations and a market approach for the valuation of exploration land claims.

Future cash flows are estimated based on quantities of recoverable mineralized material, expected gold and silver prices (considering current and historical prices, trends, and relevant market factors), production levels, operating costs, capital requirements and reclamation obligations, all based on current life-of-mine plans. The term "recoverable mineralized material" refers to the estimated quantity of gold or other commodities recoverable after accounting for processing and treatment losses.

In estimating future cash flows, assets are grouped at the lowest level for which there are separately identifiable cash flows that are largely independent of the cash flows of other asset groups. The Company's estimates of future cash flows involve significant judgments and assumptions. Actual future results, including quantities of recoverable minerals, commodity prices, production levels, operating and capital costs, may differ materially due the inherent risks and uncertainties involved.

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The recoverability of the carrying value of each mineral property is assessed annually or more frequently if events or changes in circumstances indicate potential impairment. Indicators of impairment include adverse changes in any of the following:

• estimated recoverable ounces of gold, silver or other precious minerals;

• estimated future commodity prices;

• estimated expected future operating costs, capital expenditures and reclamation expenditures.

A write-down to fair value is recognized when the expected future cash flows are less than the net book value of the property, or when other events or changes in circumstances indicate that the carrying amount is not recoverable. As of September 30, 2025 and December 31, 2024, no indicators of impairment existed.

**Asset Retirement Obligation ("ARO")**

Provisions for environmental rehabilitation are recognized for the estimated future closure, restoration, and rehabilitation costs (which include the dismantling and demolition of infrastructure, removal of residual materials, and remediation of disturbed areas) in the accounting period when the related environmental disturbance occurs. The associated asset retirement costs, including periodic adjustments, if any, are capitalized as part of the carrying amount of the long-lived asset if proven or probable reserves exist or if the costs relate to an acquired mineral property interest. Otherwise, the costs are expensed as incurred. Periodic accretion is recorded as an increase to the reclamation and remediation liabilities and recognized as an operating expense.

Prior to January 1, 2025, the Company was classified as an Exploration Stage issuer, had not demonstrated proven or probable reserves, and did not qualify for asset capitalization. Accordingly, all the costs associated with reclamation and remediation obligations were expensed as incurred. See Note 3.

The fair value of reclamation and remediation liabilities is measured by discounting the expected cash flows, using a credit-adjusted risk-free rate of interest and considering the effects of inflation. The Company prepares estimates of the timing and amounts of expected cash flows when reclamation and remediation liabilities are incurred, and updates these estimates to reflect changes in facts and circumstances. The estimation of fair value involves significant judgment, including assumptions regarding the amount and timing of cash flows, inflation rates, and credit risk.

Changes in regulations or laws, instances of non-compliance that result in fines, or unforeseen environmental contamination could result in a material impact on reclamation and remediation liabilities recognized in operations. Significant judgments and estimates are involved when assessing the fair value of AROs. Expected cash flows relating to AROs could occur over long periods of time, and the assessment of the extent of required environmental remediation work is highly subjective. As a result, the fair value of the AROs may change materially over time.

**Property Holding Costs**

Property holding costs to maintain a property on a care and maintenance basis are expensed as incurred. Such costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs.

**Exploration Costs**

Exploration costs, including costs related to exploration activities, development, direct field operations, and related administrative expenses are expensed in the period in which they are incurred.

**Leases**

The Company adopted ASC 842, *Leases* which requires the recognition of a right-of-use asset and a corresponding lease liability for all leases at the commencement date, measured based on the present value of lease payments over the lease term. ASC 842 also requires additional qualitative and quantitative disclosures regarding leasing arrangements. The Company adopted ASC 842 prospectively and elected the package of transition practical expedients, which permits Company not to reassess of (i) whether existing or expired contracts contain leases, (ii) lease classification, and (iii) initial direct costs. In addition, the Company elected other available practical expedients, including the option not to separate lease and non-lease components – primarily common area maintenance charges – for all classes of underlying assets, and the option to exclude leases with an initial term of 12 months or less from recognition under ASC 842.

**Transactions In and Translations of Foreign Currency**

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The functional currency of the Company's subsidiaries is the Mexican Peso. Accordingly, the financial statements of the subsidiaries are translated from Mexican Pesos into U.S. dollars using (i) the exchange rate prevailing at the balance sheet date for balance sheet accounts, and (ii) the weighted average exchange rate of the reporting period for income statement accounts. Foreign currency translation gains and losses are recorded as a separate component of stockholders' equity and reported within comprehensive income (loss).

Foreign currency transactions are translated into the respective functional currency of the entity or division, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items denominated in foreign currencies using period-end exchange rates are recognized in profit or loss. Non-monetary items that are not remeasured at period-end are measured at historical cost, translated using the exchange rate prevailing on the date of the original transaction, except for non-monetary items measured at fair value, which using the exchange rate on the date the fair value was determined. Gains and losses are included in the consolidated statement of operations and comprehensive income (loss).

The unaudited financial statements of the subsidiaries should not be construed as a representation that Mexican Pesos have been, could have been, or may in the future be converted into U.S. Dollars at the rates used for translation or any other exchange rates.

The relevant exchange rates used in the preparation of the unaudited financial statements for the subsidiaries were as follows for the periods ended September 30, 2025 and December 31, 2024 (expressed as Mexican Pesos per one U.S. dollar):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **December 31,<br>2024** | **December 31,<br>2024** |
| Current Exchange Rate |  | 18.31 |  | 20.86 |

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The relevant exchange rates used in the preparation of the income statement portion of unaudited financial statements for the subsidiaries are as follows for the periods ended September 30, 2025 and 2024 (Mexican Pesos per one U.S. dollar):

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| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2024** |
| Weighted Average Exchange Rate for the Nine Months Ended | 19.50 | 17.74 |

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The Company recorded currency transaction gains of $162,866 and $23,192 for the nine months ended September 30, 2025 and 2024, respectively.

**Stock-based Compensation**

The Company accounts for stock options at fair value as prescribed in ASC 718, *Stock-Based Compensation*. The Company estimates the fair value of each stock option at the grant date using the Black-Scholes option-pricing model and recognizes for expense over the service period, if any, associated with the stock option. The Company's estimates may be impacted by variables including, but not limited to, stock price volatility, employee stock option exercise behavior, and estimates of forfeitures.

**Income Taxes**

The Company accounts for income taxes under ASC 740, *Income Taxes****,*** using the liability method. This approach recognizing certain temporary differences between the financial reporting basis and the related income tax basis for such liabilities and assets. This method generates either a net deferred tax asset or liability, measured using the statutory tax rates in effect. The deferred tax expense or benefit is derived from changes in the net deferred tax asset or liability during the reporting period. The Company records a valuation allowance against any portion of deferred tax assets when it concludes, based on the weight of available evidence, that it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Income from the Company's subsidiaries in México is taxed in accordance with applicable Mexican tax law.

**Uncertain Tax Position**

The Company is subject to income taxes in the U.S. and other foreign jurisdictions, where certain outcomes are uncertain. The evaluation of uncertain tax positions requires significant judgment in the interpretation and application of GAAP and complex domestic and international tax laws. The Company establishes reserves to eliminate some or all of the tax benefit of a position when it determine that one of the following conditions exists: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the period originally taken. In evaluating uncertainty: (1) it is presumed that the tax position will be examined by the relevant authority with full knowledge of all relevant information; (2) the technical merits of a tax position are based on sources such as legislation, legislative intent, regulations, rulings, and case law; and (3) each tax position is assessed independently, without offsetting or aggregation with other tax positions taken. Although management believes that the Company's reserves are reasonable, there can be no assurance that

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the final outcome will not differ from the amounts reflected in the financial statements. A number of years may pass before an uncertain tax position is audited and ultimately resolved. The statute of limitations and audit period vary by jurisdiction. Any previously reserved tax benefit will be recognized in income tax expense in the first interim period during which: (1) the tax position is "more likely than not" to be sustained, (2) the tax position is settled through negotiation or litigation, or (3) the statute of limitations has expired.

**Comprehensive Income (Loss)**

The Company follows ASC 220, *Comprehensive Income*, which establishes standards for the reporting and presentation of comprehensive income and its components in general-purpose consolidated financial statements. Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss), such as unrealized gains and losses resulting from the translation of assets and liabilities of the Company's foreign operations.

**Revenue Recognition**

The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers*. Revenue is generated from the sale of gold and silver concentrate produced from its mining operations. Revenue is recognized, net of treatment and refining charges, when the Company satisfies its performance obligation – typically upon delivery to the customer's facility. At that point, the customer assumes the risks and rewards of ownership and has the ability to control the material.

Revenue is initially recorded on a provisional basis using the contract price and estimated metal quantities based on assay results. Adjustments to provisional sales prices are made to reflect mark-to-market changes in forward metal prices until final settlement. The difference between the provisional and final sales price is treated as an embedded derivative, which be accrued for separately from the host contract. The host contract represents the receivable based on the quoted metal prices at the time of delivery. The embedded derivative, which does not qualify for hedge accounting, is remeasured at each reporting date, and changes in fair value are recognized in revenue until final pricing is determined. These price fluctuations – occurring between delivery and final settlement – result in revenue adjustments for previously recorded concentrate sales. The primary risk associated with the provisional pricing lies in potential variances between the estimated precious metals content, based on initial assay data, and the actual recoveries confirmed through final processing and settlement.

For the nine months ended September 30, 2025 and 2024, no revenue was recognized during the period from deferred contract liabilities, and no customer deposits were refunded to the customer due to order cancellations.

Shipping and handling costs incurred after control transfers to the customer are treated as fulfillment costs.

**Derivative Financial Instruments**

Certain warrants by the Company are classified as derivative financial liabilities. Their estimated fair value is determined using the Black-Scholes option pricing model and remeasured each reporting period. Changes in fair value are recorded in the statements of operations and comprehensive income (loss). Key inputs to the model include share price volatility, dividend yield, and expected term.

**Fair Value of Financial Instruments** 

The Company's financial instruments include cash, accounts receivable, accounts payable, credit line, installment notes payable and derivative liabilities. The carrying values of cash, accounts receivable, accounts payable, and credit line approximate fair value due to their short-term nature. Installment credit line also approximates fair value based on the relationship between stated interest rates and the Company's risk-adjusted borrowing rate. Derivative liabilities are measured using the Black-Scholes model.

**Earnings (Loss) Per Share**

Earnings (loss) per share is calculated in accordance with ASC 260, *Earnings per Share*. Basic earnings (loss) is calculated using the weighted average number of common shares outstanding during the period. Dilutive earnings (loss) share includes the effect of potentially dilutive common shares, such as stock warrants and convertible preferred shares, except in periods of net loss, when such securities would be considered anti-dilutive.

The Company's Series C Senior Convertible Preferred Stock (the "Series C Preferred Stock") and related outstanding dividends are convertible into 3,031,669 and 2,942,695 shares of Common Stock as of September 30, 2025 and 2024, respectively. The Company's Series D Senior Convertible Preferred Stock (the "Series D Preferred Stock") and related outstanding dividends are convertible into 851,200 and 820,800 shares of common stock as of September 30, 2025 and 2024, respectively. The Company's Series E Convertible Preferred Stock (the "Series E Preferred Stock") are convertible into 1,552,794 shares of common stock as of September 30, 2025. During the periods ended September 30, 2025 and 2024, the Company had warrants outstanding to purcha**s**e 892,165 shares of common stock.

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**Related Party Transactions**

ASC 850, *Related Party Disclosures*, requires companies to disclose material related party transactions in their financial statements. The Company complies with this requirement by disclosing all such transactions. A related party is defined as an individual or entity that, through direct or indirect means – including intermediaries – has the ability to control, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, members of management, their immediate family members, and any other parties that may exert significant influence over the management or operating policies. A party is also considered related if it has an ownership interest in one transacting party and can significantly influence the other, to an extent that the affected party may be unable to pursue its own separate interests fully.

**Significant Judgments, Estimates and Assumptions**

The preparation of financial statements in accordance with GAAP requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the reporting date, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on management's historical experience and best available information. Actual results could differ from these estimates, and such differences could have a material impact on future operating results and cash flows.

Key areas involving significant judgment and estimates that may result in material changes to the carrying amounts of assets and liabilities include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the determination of income tax provisions, which involves complex estimates and assumptions about future events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•quantitative and qualitative factors used in the assessment of impairment of the Company's mineral property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the evaluation of drilling results, resource models, and any other technical data affecting the impairment assessment and provisions for environmental rehabilitation and restoration obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the valuation of derivatives liabilities, which requires the selection of appropriate valuation models and significant judgment in determining input assumptions.

**Reclassification**

Certain prior period amounts in the Condensed Interim Consolidated Balance Sheet have been reclassified to conform with current period presentation. All amounts previously presented under "Mining Concessions" as of December 31, 2024, have been reclassified to "Mineral Property Interests, Plant and Equipment". See Note 3. Amounts relating to accrued interest on the Francisco Arturo mining concession duties payable (Note 10) that were previously included under "Accrued Liabilities" as of March 31, 2025 and December 31, 2024 have been reclassified to "Mining concession duties payable". In addition, certain non-trade obligations previously included under accounts payable and accrued liabilities as of March 31, 2025 and December 31, 2024 have been reclassified to "Accrued mining taxes and other liabilities". These reclassifications better reflect the nature of the liabilities and had no effect on current liabilities, net income or cash flows in any period reported.

Amounts in the Condensed Interim Consolidated Statement of Income (Loss) and Comprehensive Income (Loss) related to mine development and stripping costs for the three and nine months ended September 30, 2025 have been included as part of mine production costs to conform to the current year presentation. See Note 3. This reclassification better reflects the nature of the costs and had no effect on net income or cash flows in any period presented. In addition, effective for the three months ended September 30, 2025, the Company reclassified and consolidated previously reported cost categories—including Mine Production Costs, Mill Production Costs Applicable to Sales, Camp, Warehouse and Facilities, Transportation Costs, Property Holding Costs, Facilities Expansion Costs, and Exploration Drilling—into a single line item titled 'Operating Costs.' This reclassification has been applied retrospectively, and all prior period amounts previously disclosed under these categories have been adjusted to conform to the current period presentation.

**Commodity Pricing Contract**

The Company is party to a Gold Concentrate Purchase Agreement dated February 1, 2021 (the "Offtake Agreement") with an affiliate of Ocean Partners, MK Metal Trading México, S.A. de C.V. In September 2024, the Company entered into a commodity pricing arrangement pursuant to the terms of the Offtake Agreement. Under the pricing arrangement, the Company locked in the sales price for 75% of its recoverable gold up to 9,000 ounces, at a price of $2,495 per ounce. This forward pricing arrangement ensured price certainty for a portion of the Company's gold concentrate shipments, mitigating exposure to adverse fluctuations in gold prices. The Company fulfilled its delivery obligations under the contract in March 2025. The financial impact of this contract during the quarter ended March 31, 2025, was a reduction in revenue of approximately $1.1 million.

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In August 2025, the Company entered into a commodity pricing arrangement pursuant to the terms of the Offtake Agreement. Under this Min/Max pricing arrangement, the Company hedged the sales price for 6,000 troy ounces of gold, representing 1,000 ounces per month from September 30, 2025 through February 27, 2026. The arrangement utilizes monthly expiring options, establishing a minimum price of $3,200 per ounce (put strike) and a maximum price of $3,500 per ounce (call strike).

Under the terms of the pricing arrangement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If the market price is below $3,200 per ounce at expiry, the Company will sell the monthly quantity at $3,200.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If the market price is above $3,500 per ounce at expiry, the Company will sell at $3,500.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If the market price is between $3,200 and $3,500 per ounce, the Company may price the required ounces at prevailing market levels.

This pricing arrangement provides price certainty for a portion of the Company's gold concentrate shipments during the specified period, mitigating exposure to adverse fluctuations in gold prices. Any costs associated with unwinding or modifying the structure will be borne by the Company. All other terms and conditions remain unchanged from the original Offtake Agreement and its amendments.

**Recently Issued Accounting Standards**

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The update enhances transparency by requiring entities to provide more detailed income tax disclosures, including: (1) disaggregation of specific categories within the effective tax rate reconciliation; (2) disclosure of income (or loss) from continuing operations before income taxes, separately for domestic and foreign operations; and (3) disclosure of income tax expense or benefit from continuing operations, disaggregated by federal, state and foreign jurisdictions. ASU 2023-09 also introduces a requirement to disclose income taxes paid to federal, state, local, and foreign jurisdictions, along with other amendments aimed at improving the consistency and usefulness of tax disclosures for financial statement users. The standard is to be applied prospectively, although retrospective application is permitted. The Company is currently evaluating the impact of ASU 2023-09 on its consolidated financial statements and related disclosures.

In March 2024, FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income (Subtopic 220-240): Expense Disaggregation Disclosures*, which requires all public entities to disclose disaggregated expense information for certain natural expense categories – including inventory purchases, employee compensation, depreciation, amortization of intangible assets, and depletion – within each relevant income statement line item. The objective is to provide greater transparency into the nature and function of expenses reported. The amendments are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027. Early adoption is permitted. Entities may apply the standard either prospectively to periods after the effective date or retrospectively to all prior periods presented. The Company is currently evaluating the potential impact of adopting ASU 2024-03 on its consolidated financial statements and related disclosures.

**<u>NOTE 2 - RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS</u>** 

In August 2025, management determined that the Company had accounted for Special and Extraordinary Mining Duties in Mexico inaccurately in certain prior periods, and that, mining tax expense and mining tax liabilities were not recognized in connection with consolidated financial statements prepared for the fiscal years ended December 31, 2021, 2022, and 2023 contained in its Annual Reports on Form 10-K for those years. As a result of these misstatements, the Company is restating certain financial information for the periods noted. All restated financial information is included in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the "Form 10-Q"), and the Company has not filed, and does not intend to file, amendments to any of our filings that the Company have previously filed with the SEC.

*Restatement Background*

In March 2025, the Mexican Tax Authority (Servicio de Administracion, "SAT") issued a re-assessment for the 2021 tax year of DynaMexico. Following receipt of such reassessment, the Company identified previously unrecognized liabilities related to Special and Extraordinary Mining Duties applicable to its mining operations in Mexico. These duties, which are statutory and recurring in nature, were not fully recognized in the fiscal year ended December 31, 2021. The Company undertook a thorough internal review of its tax filings from prior years to ensure compliance and completeness of any other potential liabilities. As a result of the internal review, management identified unrecognized mining duties and corresponding liabilities from DynaMexico and DynaMineras, two of the Company's subsidiaries that operated the SJG mine during the years reviewed. The previously unrecognized liabilities total approximately $1.1 million, $0.9 million, $0.6 million, and $0.5 million for the fiscal years ended December 31, 2021, 2022, 2023 and 2024, respectively, inclusive of inflation adjustments, and penalties.

The internal review determined that restatement changes were necessary due to:

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• an understatement of mining tax expense in each period of the consolidated statement of operations; and

• an understatement of mining tax liabilities in each period of the consolidated balance sheets

*Items Included in this Filing*

This Form 10-Q includes restated condensed consolidated financial statements and related disclosures as of and for the years ended December 31, 2021, 2022, 2023 and 2024.

The impact of the correction of the misstatements on the consolidated financial statements related to the mining duties as of and for the years ended December 31, 2021, 2022, 2023 and 2024, which have now been corrected, is summarized below. The applicable accompanying notes to the consolidated financial statements have also been updated, as applicable.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2021** | **As previously stated** | **As previously stated** | **Adjustments** | **Adjustments** | **As restated** | **As restated** |
| **Consolidated Statements of Financial Position** |  |  |  |  |  |  |
| Accrued expenses | $— | 5440204 | $— | 1070806 | $— | 6511010 |
| Accumulated deficit | $— | (50722465) | $— | (1070806) | $— | (51793271) |
| **Consolidated statements of loss and comprehensive loss** |  |  |  |  |  |  |
| Other income/(expenses) | $— | 1072 | $— | (1070806) | $— | (1069734) |
| Comprehensive income for the year | $— | 8534363 | $— | (1070806) | $— | 7463557 |
| Income per share, basic and diluted | $— | 0.47 |  |  | $— | 0.41 |
| **Consolidated statements of changes in equity** |  |  |  |  |  |  |
| Income for the year | $— | 8534363 | $— | (1070806) | $— | 7463557 |
| Deficit – December 31, 2021 | $— | (50722465) | $— | (1070806) | $— | (51793271) |
| Total equity | $— | (151589) | $— | (1070806) | $— | (1222395) |
| **2022** | **As previously stated** | **As previously stated** | **Adjustments** | **Adjustments** | **As restated** | **As restated** |
| **Consolidated Statements of Financial Position** |  |  |  |  |  |  |
| Accrued expenses | $— | 5756961 | $— | 891894 | $— | 6648855 |
| Deferred tax asset | $— | 2970410 | $— | 384196 | $— | 3354606 |
| Accumulated deficit | $— | (44036663) | $— | (507698) | $— | (44544361) |
| **Consolidated statements of loss and comprehensive loss** |  |  |  |  |  |  |
| Other income/(expenses) | $— | 2242 | $— | (507698) | $— | (505456) |
| Comprehensive income for the year | $— | 6685802 | $— | (507698) | $— | 6178104 |
| Income per share, basic and diluted | $— | 0.33 |  |  | $— | 0.29 |
| **Consolidated statements of changes in equity** |  |  |  |  |  |  |
| Income for the year | $— | 6685802 | $— | (507698) | $— | 6178104 |
| Deficit – December 31, 2021 | $— | (50722465) | $— | (1070806) | $— | (51793271) |
| Deficit – December 31, 2022 | $— | (44036663) | $— | (1578504) | $— | (45615167) |
| Total equity | $— | 13192141 | $— | (1578504) | $— | 11613637 |
| **Consolidated statements of changes in assets** |  |  |  |  |  |  |
| Deferred tax asset | $— | 2970410 | $— | 384196 | $— | 3354606 |
| Total Assets | $— | 40942912 | $— | 384196 | $— | 41327108 |
| **Consolidated statements of changes in liabilities** |  |  |  |  |  |  |
| Accrued expenses | $— | 5756961 | $— | 1962700 | $— | 7719661 |
| Total liabilities | $— | 21893291 | $— | 1962700 | $— | 23855991 |
| **2023** | **As previously stated** | **As previously stated** | **Adjustments** | **Adjustments** | **As revised** | **As revised** |
| **Consolidated Statements of Financial Position** |  |  |  |  |  |  |
| Accrued liabilities | $— | 7727621 | $— | 627025 | $— | 8354646 |
| Deferred tax asset | $— | 4264115 | $— | 126070 | $— | 4390185 |
| Accumulated deficit | $— | (58570167) | $— | (500955) | $— | (59071122) |
| **Consolidated statements of loss and comprehensive loss** |  |  |  |  |  |  |
| Other income/(expenses) | $— | 2218 | $— | (500955) | $— | (498737) |
| Comprehensive loss for the year | $— | (14533504) | $— | (500955) | $— | (15034459) |
| Loss per share, basic and diluted | $— | (0.65) |  |  | $— | (0.68) |
| **Consolidated statements of changes in equity** |  |  |  |  |  |  |
| Loss for the year | $— | (14533504) | $— | (500955) | $— | (15034459) |
| Deficit – December 31, 2021 | $— | (50722465) | $— | (1070806) | $— | (51793271) |
| Deficit – December 31, 2022 | $— | (44036663) | $— | (507698) | $— | (44544361) |
| Deficit – December 31, 2023 | $— | (58570167) | $— | (2079459) | $— | (60649626) |
| Total equity | $— | 3815259 | $— | (2079459) | $— | 1735800 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Consolidated statements of changes in assets** |  |  |  |  |  |  |
| Deferred tax asset | $— | 4264115 | $— | 510266 | $— | 4774381 |
| Total Assets | $— | 35438350 | $— | 510266 | $— | 35948616 |
| **Consolidated statements of changes in liabilities** |  |  |  |  |  |  |
| Accrued expenses | $— | 7727621 | $— | 2589725 | $— | 10317346 |
| Total liabilities | $— | 25765611 | $— | 2589725 | $— | 28355336 |
| **2024** | **As previously stated** | **As previously stated** | **Adjustments** | **Adjustments** | **As revised** | **As revised** |
| **Consolidated Statements of Financial Position** |  |  |  |  |  |  |
| Accrued mining taxes and other liabilities | $— | 5172685 | $— | 483880 | $— | 5656565 |
| Deferred tax asset | $— | 4025957 | $— | 97289 | $— | 4123246 |
| Accumulated deficit | $— | (66705019) | $— | (386591) | $— | (67091610) |
| Consolidated statements of loss and comprehensive loss |  |  |  |  |  |  |
| **Other income/(expenses)** | $— | 50171 | $— | (386591) | $— | (336420) |
| Comprehensive loss for the year | $— | (8134852) | $— | (386591) | $— | (8521443) |
| Loss per share, basic and diluted | $— | (0.34) |  |  | $— | (0.36) |
| **Consolidated statements of changes in equity** |  |  |  |  |  |  |
| Loss for the year | $— | (8134852) | $— | (386591) | $— | (8521443) |
| Deficit – December 31, 2021 | $— | (50722465) | $— | (1070806) | $— | (51793271) |
| Deficit – December 31, 2022 | $— | (44036663) | $— | (507698) | $— | (44544361) |
| Deficit – December 31, 2023 | $— | (58570167) | $— | (500955) | $— | (59071122) |
| Deficit – December 31, 2024 | $— | (66705019) | $— | (2466050) | $— | (69171069) |
| Total equity | $— | 3375602 | $— | (2466050) | $— | 909552 |
| **Consolidated statements of changes in assets** |  |  |  |  |  |  |
| Deferred tax asset | $— | 4025957 | $— | 607555 | $— | 4633512 |
| Total Assets | $— | 37916392 | $— | 607555 | $— | 38523947 |
| **Consolidated statements of changes in liabilities** |  |  |  |  |  |  |
| Accrued mining taxes and other liabilities | $— | 5172685 | $— | 3073605 | $— | 8246290 |
| Total liabilities | $— | 28683310 | $— | 3073605 | $— | 31756915 |

---

**<u>NOTE 3 - CHANGE IN ACCOUNTING ESTIMATE DUE TO TRANSITION TO PRODUCTION STAGE</u>**

On May 20, 2025, the Company filed a Technical Report Summary ("TRS") for the SJG mine, which was prepared in accordance with S-K 1300. The TRS includes the Company's first declaration of mineral reserves and supports the transition from an Exploration Stage issuer to a Production Stage issuer.

The TRS was filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on May 20, 2025, and is incorporated herein by reference as Exhibit 96.1 to this Quarterly Report on Form 10-Q.

As a result of the declaration of proven and probable mineral reserves, the Company has revised certain accounting estimates prospectively, including the capitalization of certain development costs and the commencement of systematic depreciation of applicable assets. These changes have been applied prospectively in accordance with ASC 250, with no restatement of prior periods.

**Impact on Accounting Estimates**

In connection with this transition, the Company revised its accounting estimates as follows:

**1. Capitalization of Development Costs**

• Prior to January 1, 2025, all underground mine development costs were expensed as incurred, as the SJG mine was classified as an exploration-stage property.

• Effective January 1, 2025, mine development costs that are directly related to sustaining and production-related activities are capitalized as part of "Mineral Property Interests, Plant and Equipment."

• As a result capitalization of development costs during the nine months ended September 30, 2025 increased by approximately $6.864 million, compared to prior periods.

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**2. Depreciation and Depletion**

• Beginning in 2025, the Company commenced depletion of capitalized mine development costs and depreciation of mineral property interests (including mining concessions) using the Unit-of-Production ("UOP") method, based on total proven and probable mineral reserves.

• As a result depreciation and depletion expense during the nine months ended September 30, 2025 increased by approximately $0.723 million, compared to prior periods.

**Financial Impact of the Change**

The adoption of these revised estimates in Q3 2025 had the following impact on the Company's financial results:

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| | |
|:---|:---|
| **Impact Area** | **Increase/(Decrease)** |
| Capitalized Development Costs | $6.864 million |
| Depreciation and Depletion Expense | $0.723 million |

---

This change in accounting estimate has been applied prospectively in accordance with ASC 250, *Accounting Changes and Error Corrections*, with no restatement of prior periods.

**Forward-Looking Considerations**

Management anticipates that these changes will result in increased capitalized costs and higher depreciation expense in future periods. The Company will continue to review and update its reserve estimates and related accounting assumptions on an ongoing basis, consistent with GAAP.

**<u>NOTE 4 - CONCENTRATE AND ORE INVENTORIES</u>**

Inventories are stated at the lower of cost or net realizable value and consist of mined ore and finished goods in the form of gold-silver concentrates. Inventory balances as of September 30, 2025 and December 31, 2024 were as follows:

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| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Mined tonnage | $1256013 | $1406448 |
| Gold-Silver concentrates | 505343 | 169944 |
| Total inventories | $1761356 | $1576392 |

---

**<u>NOTE 5 – MINERAL PROPERTY INTERESTS, PLANT AND EQUIPMENT</u>**

The cost and carrying value of mineral property interests, plant and equipment at September 30, 2025 and December 31, 2024 was as follows:

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| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Mineral property interests, cost |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mining concessions | $4132678 | $4132678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mine development | 6869072 |  |
| Subtotal | $11001750 | $4132678 |
| Less: accumulated depletion | (723294) |  |
| Mineral property interests, carrying value | $10278456 | $4132678 |
| Plant and equipment, cost |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Construction in progress | $1304489 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Plant and equipment | 823344 | 73691 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 55571 | 48337 |
| Subtotal | 2183404 | 122028 |
| Less: Accumulated depreciation and amortization | (23719) | (42738) |
| Plant and equipment, carrying value | $2159685 | $79290 |
| Mineral property interests, plant and equipment, carrying value | $12438141 | $4211968 |

---

Mineral properties include the SJG mining concessions (December 31, 2024 - $4,132,678) and capitalized mine development costs. The SJG property interests are depleted based on the units-of-production method over the estimated proven and probable mineral reserves.

The definitions of proven and probable mineral reserves are set forth in S-K 1300. If proven and probable mineral reserves exist at the Company's properties, the relevant related capitalized mineral property interests are depleted using the units-of-production method. The Company's SJG property has proven and probable mineral reserves estimated in accordance with S-K 1300. See Note 3.

Mineral properties totaled $10,278,456 as of September 30, 2025 and included capitalized development costs of $6,863,818 during the period ended September 30, 2025. Depletion expense during the nine months ended September 30, 2025 and 2024, was $723,294 and $nil, respectively.

Depreciation and amortization are recorded over each asset's estimated useful life. Depreciation and amortization expense was $23,719 and $22,593 for the nine months ended September 30, 2025 and 2024, respectively.

**<u>NOTE 6 - OTHER CURRENT ASSETS</u>**

As of September 30, 2025 and December 31, 2024, other current assets consisted of the following:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| Advances to suppliers | 647562 | 386216 |
| Prepaid expenses | 515125 | 270023 |
| Total other current assets | $1162687 | $656239 |

---

**<u>NOTE 7 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES</u>**

As of September 30, 2025 and December 31, 2024, the Company had the following accounts payable and accrued liabilities:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
|  |  | **(Restated)** |
| Accounts payable | $11265448 | $8777183 |
| Accrued vendors | $2971548 | 406487 |
| Accrued payroll and board fees | $365792 | 412500 |
| Accrued interest | $152579 |  |
| Other accrued liabilities | $3084002 | 721009 |
| Trade payables and accruals | $17839369 | $10317179 |
| Accrued mining taxes (Note 2) | $2952677 | 3322116 |
| Other liabilities | $1663922 | 1850569 |
| Accrued mining taxes and other liabilities | $4616599 | $5172685 |

---

**<u>NOTE 8 - DERIVATIVE LIABILITY</u>** 

**Warrants Issued With the Notes Convertible Into Series D Preferred**

In fiscal 2020, the Company closed a financing agreement with Golden Post Rail, LLC ("Golden Post") and certain shareholders pursuant to which the Company issued convertible promissory notes bearing interest at 10%. These notes were convertible into shares of Series D Preferred Stock and Common Stock purchase warrants (the "2020 Warrants") exercisable at $0.01 per share, with a ten-year expiration. The 2020 Warrants contain anti-dilution provisions. See Note 12. The Company analyzed the conversion features of the promissory notes and determined that the 2020 Warrants and the remaining purchaser warrants issued in connection with the notes qualified as derivative liabilities. The fair value was required to be allocated among the notes, the notes' conversion features, and the 2020 Warrants and remaining purchaser warrants, and was subsequently remeasured at each reporting date. The Company performed a valuation of the conversion features of the 2020 Warrants and remaining purchaser warrants. In performing the valuation, the Company applied the guidance in ASC 820, *Fair Value Measurements,* which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). To measure fair value, the Company incorporated assumptions that market participants would use in pricing the asset or liability and utilized market data to the maximum extent possible.

In instances where the determination of fair value is based on inputs from different levels of the fair value hierarchy, the level within which the entire fair value measurement is classified is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the overall fair value measurement requires judgment and considers factors specific to the asset or liability.

The Company classified the inputs in this valuation as Level 3 within the fair value hierarchy under ASC 820 and utilized an equity simulation model to determine the value of conversion feature associated with the 2020 Warrants issued in connection with the notes convertible into Series D Preferred Stock, based on the assumptions set forth below:

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| | | |
|:---|:---|:---|
| Period Ended | **September 30,<br>2025** | **December 31,<br>2024** |
| Annual volatility rate | 108% | 128% |
| Risk free rate | 3.60% | 4.25% |
| Expected life (years) | 4.62 | 5.37 |
| Fair value of common stock | $1.25 | $1.00 |

---

For the nine months ended September 30, 2025 and the twelve months ended December 31, 2024, an active market for the Company's common stock did not exist. Accordingly, the fair value of the Company's common stock was estimated using a valuation model with level 3 inputs. See Note 16.

The following table summarizes the changes in the fair value of the derivative liability during the nine months ended September 30, 2025 and the twelve months ended December 31, 2024.

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| | | |
|:---|:---|:---|
| Period Ended | **September 30,<br>2025** | **December 31,<br>2024** |
| Fair value of derivative (warrants), beginning of period | $892167 | $1797341 |
| Exercise of warrants | - | - |
| Change in fair value of derivative | 223039 | (905174) |
| Fair value of derivative (warrants), end of period | $1115206 | $892167 |

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**<u>NOTE 9 - CREDIT LINE</u>**

<u>(A) Advance Credit Line Facility/Customer Advances</u>

On February 4, 2021, the Company entered into an Advance Credit Line Facility and Purchase Agreement (the "ACL"), with a commercial buyer. On August 2, 2023, the ACL was extended through December 2026 in an Amendment Agreement (the "Amendment"). Under the terms of the ACL and Amendment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Beginning in September 2023, up to $10 million of the ACL advance may be converted into a one-year installment loan (the "RCL") bearing interest at 3M SOFR + 7.5% and amortized as follows: Month 1, interest only; Months 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest. Conversion into an installment loan reduces the available ACL on a pro rata basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•If the ACL is converted into the RCL, subsequent deliveries during the term must be paid in cash within ten days of delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Amendment provides the buyer with a right of first refusal under the Offtake Agreement, to provide offtake financing and purchase other concentrates (zinc, silver, copper, etc) and doré from the Company's open pit and underground operations.

<u>(B) Revolving Credit Line (RCL) & Temporary Advance Credit Line (TACL)</u>

On December 1, 2023, the Company exercised its option under the ACL to convert the outstanding balance of $9,750,000 into an RCL. The RCL is repayable as follows: Month 1, interest only; Months 2-11, 5% principal plus interest; and Month 12, final 50% principal plus interest.

On June 20, 2024, the Company amended the terms of the RCL. Under the amendment, the Company could receive up to an additional $4,000,000 under a temporary advance credit line (the "TACL") at the same interest rate, with the TACL maturing on November 30, 2024. As part of the amendment, the Company also received a put option (the "Put Option") allowing it to convert up to $9,000,000 of the RCL into common stock at $1.61 per share, exercisable from November 1, 2024 until the November 30, 2024. If both the RCL and the TACL were repaid in full on or before November 30, 2024, the maximum principal amount of the RCL would increase to $12,500,000. However, if the Put Option was exercised for an amount greater than $4,000,000, the maximum principal amount of the RCL would be reduced on a dollar-for-dollar basis by the excess.

As part of the June 20, 2024 amendment, the Company granted a security interest in its Mexican IVA tax claims to the holder of the RCL and TACL notes.

In November 2024, the Company repaid the TACL in full and renewed the RCL for an additional one-year term. Under the renewal, the TACL was discontinued, and the Put Option was removed. The maximum principal amount of $12,500,000, the interest rate, and repayment terms remained unchanged.

<u>(C) Amendment to Offtake Agreement and Credit Facility</u>

On August 22, 2025, DynaMexico entered into an amendment (the "Amendment") to the Gold Concentrate Purchase Agreement originally dated February 1, 2021 (as amended, the "Offtake Agreement"), with MK Metal Trading Mexico S.A. de C.V. ("Buyer") and Ocean Partners UK Limited ("Ocean Partners UK").

The Amendment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Extends the term of the Offtake Agreement through December 31, 2030, with automatic annual renewals unless terminated by either party with 365 days' notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adds Ocean Partners UK as a joint buyer under the Offtake Agreement, with full rights and obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Establishes a new $15 million Concentrate Credit Facility (the "Credit Facility"), replacing the prior $12.5 million facility, with principal repayable in equal monthly installments over months 7 through 24, bearing interest at 3-month SOFR plus 6.75%;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Introduces a $3 million termination fee payable by DynaMexico to Buyer under certain conditions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Provides security for the Credit Facility, including a parent company guarantee from the Company, a general security agreement, and a pledge of DynaMexico shares.

The Credit Facility is structured as a 24-month loan. For the first six months of the loan tenor, DynaMexico is required to make interest-only payments. Beginning in month 7 and continuing through month 24, the loan is repayable in 18 equal monthly principal installments, plus interest.

Concurrent with the Amendment, DynaMexico and Ocean Partners UK entered into the Credit Facility, and the Company executed a Parent Company Guarantee in favor of Ocean Partners UK, guaranteeing DynaMexico's obligations under the Credit Facility.

The following is a summary of the RCL, TACL and Credit Facility activity during the periods ended September 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| Balance beginning of period | $9850000 | $9750000 |
| Advances | 17650000 | 12000000 |
| Principal Payments | (12500000) | (11900000) |
| Balance end of period | $15000000 | $9850000 |
| Current liability | $5833333 | $9850000 |
| Non-current liability | 9166667 |  |

---

Interest expense on the RCL for the periods ended September 30, 2025 and 2024 were $883,729 and $597,293, respectively.

**<u>NOTE 10 – CONCESSION DUTIES PAYABLE</u>**

In June 2018, the Company entered into financing agreements for unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2017 and the period ended June 30, 2018 in the amount of $1,739,392. The Company paid an initial 20% down payment of $347,826 and financed the balance over 36 months at an interest rate of 22% per annum.

In February 2019, the Company entered into a financing agreement for unpaid mining concession taxes on the Francisco Arturo mining concession for the year ended December 31, 2018 in the amount of $335,350. The Company paid an initial 20% down payment of $67,070 and financed the balance over 36 months at an interest rate of 22% per annum.

In June 2018, the Company applied for a reduction of the Francisco Arturo mining concession, from 69,121 hectares to 3,280 hectares. The Company continues to accrue approximately $22,500 (USD) every semester (six months) on the Francisco Arturo mining concession.

As of June 2019, the Company ceased making monthly payments on the Francisco Arturo concession financing notes and petitioned the Servicio de Administración Tributaria (the "SAT"), the Mexican federal tax authority, for a reduction in the liability proportionate to the reduction in the Francisco Arturo concession area. For financial reporting purposes, the Company continues to carry all financing notes related to unpaid mining concession taxes on the Francisco Arturo concessions at their unpaid principal amounts and accrues interest. As of September 30, 2025 and December 31, 2024, $2,865,125 and $2,221,119 of accrued interest was included in the concessions duties payable balance.

The following summarizes the activity during the nine months ended September 30, 2025:

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| | |
|:---|:---|
| Balance December 31, 2024 | $4059565 |
| Exchange rate adjustment | 591406 |
| 2025 Interest | 306000 |
| 2025 principal payments |  |
| Balance September 30, 2025 | $4956971 |

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**<u>NOTE 11 - ASSET RETIREMENT OBLIGATION</u>**

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During 2023, the Company completed a significant upgrade to the milling facility. As a result, an ARO was established as of December 31, 2023, reflecting the estimated undiscounted costs totaling $316,800 to decommission the plant and tailings pond at the end of the estimated life of the mines in operation as of that date. The ARO was discounted using credit-adjusted, risk-free interest rate of 9.2%. As this is a production stage property that qualifies for asset capitalization, any new costs incurred after January 1, 2025 associated with the obligation can be capitalized to mineral property interests, plant and equipment.

Asset retirement obligation consisted of the following as of September 30, 2025 and December 31, 2024:

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| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
|  | **2025** | **2024** |
| Asset retirement obligation at beginning of year | $223520 | $198468 |
| Additions to ARO liability |  | 6792 |
| Accretion | 14958 | 18260 |
| Asset retirement obligation at end of year | $238478 | $223520 |

---

**<u>NOTE 12 - STOCKHOLDERS' EQUITY</u>**

The total number of shares of all classes of capital stock authorized for issuance by the Company is 60,001,000 shares, consisting of (i) 20,001,000 shares of Preferred Stock, par value $0.0001 per share ("Preferred Stock"), of which 1,734,992 are designated as Series C Preferred Stock, 3,000,000 shares are designated as Series D Preferred Stock, and 1,552,795 shares are designated as Series E Preferred Stock; and (ii) 40,000,000 shares of Common Stock, par value $0.01 per share ("Common Stock"). As of September 30, 2025, 13,713,213 shares of Preferred Stock remain un-designated.

**Series C Senior Convertible Preferred Stock**

As of September 30, 2025 and December 31, 2024 there were 1,734,992 shares of Series C Preferred Stock outstanding. As of September 30, 2025, the Series C Preferred Stock is convertible to Common Stock at $1.95 per share or redeemable in cash at the shareholder's option and include anti-dilution protection. The Series C Preferred Stock may receive a 4% per annum dividend, payable if available, and in arrears, calculated at 4% of $4,337,480 payable annually on June 30. As of September 30, 2025, dividends for the years 2016 to 2025 totaling $1,574,274 were in arrears.

Because the Series C Preferred Stock is mandatorily redeemable by the Company at the election of the holder upon maturity, it is classified as "temporary equity" on the consolidated balance sheet.

**Series D Senior Convertible Preferred Stock**

**Financing Agreement with Golden Post Rail, LLC, and with Shareholders of DynaResource, Inc.**

On May 14, 2020, the Company closed a financing agreement with certain shareholders totaling $4,020,000, which was convertible into Series D Preferred Stock. In connection with this financing, the noteholders also received the 2020 Warrants, as outlined in Note 8, to purchase an aggregate of 1,260,633 shares of the Company's Common Stock at an exercise price of $.01 a share.

On October 7, 2021, the Company paid $2,500,000 to repurchase one note. The remaining ten noteholders elected to convert their notes totaling $1,520,000 into Series D Preferred Stock at $2.00 per share. Concurrently with the note conversion the noteholders exercised 368,468 of the 2020 Warrants to purchase 368,468 shares of the Company's Common Stock at $0.01 per share. On October 18, 2021, the Company issued 760,000 shares of Series D Preferred Stock. The Series D Preferred Stock may receive a 4% per annum dividend, payable if available, and in arrears, calculated at 4.0% of $1,520,000 payable annually on October 18. As of September 30, 2025 dividends for the years 2022 to 2024 totaling $182,400 were in arrears.

Because the Series D Preferred is mandatorily redeemable by the Company at the election of the holder upon maturity, it is classified as "temporary equity" on the consolidated balance sheet.

Deemed dividends on the Series C Preferred Stock and Series D Preferred Stock for the nine months ended September 30, 2025 and 2024, were $175,724 and $175,724 respectively. As these dividends have not been declared by the Company, they are required to be presented as an adjustment "below" the net income (loss) line on the accompanying unaudited condensed interim consolidated statements of income.

**Series E Convertible Preferred Stock**

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As of September 30, 2025 and December 31, 2024, there were 1,552,795 Series E Preferred Stock outstanding. The Series E Preferred Stocks is convertible on a one-for-one basis into shares of Common Stock, subject to equitable adjustment. They are eligible to receive the equivalent of any Common Stock dividend declared but carry no preferred dividend rights and are not redeemable for cash.

**Preferred Stock (Undesignated)**

In addition to the 1,734,992 shares designated as Series C Preferred Stock, the 3,000,000 shares designated as Series D Preferred Stock, and 1,552,795 such shares designated as Series E Preferred Stock, the Company is authorized to issue an additional 13,713,213 shares of Preferred Stock, each having a par value of $0.0001 per share. The Board of Director has authority to issue Preferred Stock from time to time in one or more series and, with respect to each series, to fix and determine by resolution the designations, powers, preferences, rights, qualifications, limitations, and restrictions of such series. As of September 30, 2025 and December 31, 2024, there were no other shares of Preferred Stock outstanding.

The shares of each series of Preferred Stock may vary from the shares of any other series thereof in any or all these rights and terms. The Board of Directors may increase the number of shares designated for any existing series by resolution, adding authorized but unissued and undesignated shares to that series. Unless otherwise provided in a particular Preferred Stock designation, the Board of Directors may also decrease the number of shares designated for any existing series by resolution, returning such shares to the pool of authorized, unissued and undesignated Preferred Stock.

**Common Stock**

The Company is authorized to issue 40,000,000 shares of Common Stock, par value $0.01 per share. These shares carry full voting rights. As of September 30, 2025, and December 31, 2024, there were 29,315,726 shares of common stock outstanding. No dividends were declared or paid during the nine months ended September 30, 2025 and 2024.

**Preferred Rights**

The Company issued "Preferred Rights" and received proceeds of $784,500 for these rights. This amount is reflected as "Preferred Rights" within stockholders' equity in the accompanying condensed interim consolidated balance sheets. As of September 30, 2025, $744,500 had been repaid, leaving a balance of $40,000 as of September 30, 2025 and December 31, 2024.

**Stock Issuances**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On June 27, 2024 the Company issued 1,552,795 shares of Series E Preferred Stock for cash consideration of $2,500,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On June 28, 2024 the Company issued 287,287 shares of Common Stock, valued at $462,532, to senior executives as compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•On October 18, 2024, the Company issued 5,769,231 shares of Common Stock for cash consideration of $6,000,000

**Treasury Stock** 

There were no treasury stock transactions during the nine months ended September 30, 2025, or during the year ended December 31, 2024.

There were 37,180 shares of treasury stock outstanding as of September 30, 2025 and December 31, 2024.

**Warrants**

As of September 30, 2025, the Company had outstanding warrants to purchase 892,165 shares of Common Stock. These warrants were issued as part of the 2020 financing transaction involving notes convertible into Series D Preferred Stock.

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** | **Weighted** |  |
|  |  | **Average** | **Average** |  |
|  |  | **Exercise** | **Remaining** |  |
|  | **Number** | **Price** | **Contractual** | **Intrinsic** |
|  | **of Shares** | **per share** | **Life (Years)** | **Value** |
| Balance at December 31, 2023 | 892165 | $0.01 | 6.37 |  |
| Exercise of warrants |  |  |  |  |
| Forfeiture of the warrants |  |  |  |  |
| Balance at December 31, 2024 | 892165 | $0.01 | 6.37 |  |
| Exercise of warrants |  |  |  |  |
| Forfeiture of the warrants |  |  |  |  |
| Balance at September 30, 2025 | 892165 | $0.01 | 4.62 |  |
| Exercisable at September 30, 2025 | 892165 | $0.01 | 4.62 |  |

---

A derivative liability was recognized upon the issuance of the 2020 Warrants. As of September 30, 2025, the derivative liability totaled $1,115,206. See Note 8.

**Options**

As of December 31, 2024, the Company had outstanding options to purchase an aggregate of 1,150,000 shares of Common Stock, issued to Directors and Executive Officers as compensation:

On February 16, 2024, in conjunction with joining the Board of Directors, Mr. Quinton Hennigh was awarded options to purchase up to 400,000 shares of Common Stock at an exercise price of $5.00 per share. The options vest in 25% increments on each of the first four anniversaries of the grant date and expiring five years after the grant date.

On June 3, 2024, in conjunction with accepting the position of Chief Executive Officer, Mr. Rohan Hazelton was awarded options to purchase up to 750,000 shares of Common Stock at an exercise price of $1.75 per share. The options vest and becoming exercisable in one-third increments on each of the first three anniversaries of the grant date and expiring five years after the grant date.

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Weighted** | **Weighted** |  |
|  |  | **Average** | **Average** |  |
|  |  | **Exercise** | **Remaining** |  |
|  | **Number** | **Price** | **Contractual** | **Intrinsic** |
|  | **of Shares** | **per share** | **Life (Years)** | **Value** |
| Balance at December 31, 2023 |  | $— |  |  |
| Issuance of options | 1150000 | $2.88 |  |  |
| Exercise of options |  | $— |  |  |
| Forfeiture of the options |  | $— |  |  |
| Balance at December 31, 2024 |  | $— |  |  |
| Issuance of options | 1150000 | $2.88 | 3.97 |  |
| Exercise of options |  | $— |  |  |
| Forfeiture of the options |  | $— |  |  |
| Balance at September 30, 2025 | 1150000 | $2.88 | 3.23 |  |
| Vested & Exercisable at September 30, 2025 | 350000 | $2.68 | 3.23 |  |

---

**<u>NOTE 13 – STOCK-BASED COMPENSATION</u>** 

On December 28, 2022, the Company issued 1,500,000 shares of restricted Common Stock to certain key employees and consultants. The shares were 25% vested upon issuance and vest an additional 25% on each of December 28, 2023, 2024, and 2025. The shares were valued at the closing stock price of $2.35 per share on the date of issuance and accounted for under ASC 718, *Compensation – Stock Compensation*. Stock-based compensation expense related to these awards was $1,219,062 and $881,250 for the

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years ended December 31, 2024 and December 31, 2023, respectively, representing the 25% vested portion of the total grant value recognized each year. The 2024 expenses also included an additional $327,813 related to accelerated vesting resulting from terminations. In connection with these terminations, 112,500 shares under these awards were cancelled in December 2024. As of December 31, 2024, deferred compensation totaling $297,063 remained unvested.

On June 3, 2024, Mr. Rohan Hazelton was appointed Chief Executive Officer of the Company. In connection with his appointment, the Company entered into an Employment Agreement with Mr. Hazelton providing for a signing bonus of 750,000 stock options (detailed below), 500,000 restricted stock units ("RSUs") vesting one-third annually on each of the first three anniversaries of the grant date, and 500,000 deferred stock units ("DSUs"), with the terms and performance metrics to be determined by the Compensation Committee.

On July 22, 2024, Mr. Alonso Sotomayor was appointed Chief Financial Officer of the Company. In connection with his appointment, the Company entered into an Employment Agreement providing for a signing bonus of 225,000 RSUs, vesting one-third annually on each of the first three anniversaries of the grant date.

On February 16, 2024, in connection with joining the Board of Directors, Mr. Quinton Hennigh was awarded options to purchase up to 400,000 shares of Common Stock at an exercise price of $5.00 per share, vesting in 25% increments on each of the first four anniversaries of the grant date and expiring five years after the date of grant.

The inputs utilized in calculating the fair value of the stock options and awards are as follows:

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| | |
|:---|:---|
|  | **February 16, 2024** |
| Annual volatility rate | 127.93% |
| Risk free rate | 4.36% |
| Expected life at issuance | 5.0 |
| Fair Value of stock options | $1.15 |

---

On June 3, 2024, in conjunction with accepting the position of Chief Executive Officer, Mr. Rohan Hazelton was awarded options to purchase up to 750,000 shares of the Company's Common Stock at an exercise price of $1.75 per share. The options vest and becoming exercisable in one-third increments on each of the first three anniversaries of the grant date and expiring five years after the grant date.

The inputs used to calculate the fair value of the options were as follows:

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| | |
|:---|:---|
|  | **June 3, 2024** |
| Annual volatility rate | 105.55% |
| Risk free rate | 4.42% |
| Expected life at issuance | 5.0 |
| Fair Value of stock options | $1.38 |

---

Mr. Hazelton also received 500,000 DSUs payable upon achievement of performance targets and 500,000 RSUs vesting in one-third increments on each of first three anniversaries of the grant date, with the terms and performance metrics to be determined by the Compensation Committee.

**Management Bonuses**

On March 28, 2025, the Compensation Committee approved bonus awards for the management team totaling $457,500, consisting of $217,500 in cash and $240,000 in common stock. The stock portion represents 263,736 shares, calculated based on the closing price of $0.91 per share on March 28, 2025. Of these awards, $70,000 in cash and $135,000 in stock (equivalent to 148,352 shares) were allocated to directors and officers. The Board of Directors ratified these awards on April 2, 2025.

**Independent Director Compensation**

Also on March 28, 2025, the Compensation Committee approved annual compensation for independent directors, consisting of a base cash component of $25,000 and an additional $50,000 to be paid in shares of common stock. The equity portion of the compensation is subject to vesting as follows: one-third vests immediately, one-third vests one year from the grant date, and the remaining one-third vests two years from the grant date. This resulted in a total stock-based award of $250,000 for the five independent directors. The Board of Directors approved this compensation on April 2, 2025.

**<u>NOTE 14 - INCOME TAXES</u>**

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The Company has adopted ASC 740-10, *Income Taxes*, which requires the use of the liability method for the recognition of income tax expense, and for the measurement of current and deferred income tax liabilities and assets. Deferred tax assets and liabilities are recognized based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates expected to apply in the periods in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not to be realized.

The Company's income tax expense and effective tax rate are significantly impacted by the mix of domestic and foreign earnings before income taxes. The applicable statutory income tax rate in Mexico is 30%, which is higher than the combined U.S. federal and state statutory tax rate of approximately 21%.

**<u>NOTE 15 - COMMITMENTS AND CONTINGENCIES</u>**

**Concession Taxes**

The Company is required to pay mining concession taxes in Mexico to maintain concessions owned by DynaMéxico. In addition, the Company must incur a minimum level of annual expenditures for all concessions held. The minimum expenditures are calculated based on the land area and the age of the concessions. Amounts spent in excess of the minimum may be carried forward indefinitely over the life of the concessions and are adjusted annually for inflation. Based on management's recent business activities, current operations, and forward-looking plans – and considering expenditures incurred on mining concessions from 2002 through 2017, as well as continuing expenditures – the Company does not anticipate any difficulty for DynaMéxico in meeting the minimum annual expenditure requirements. The current minimum expenditure rate ranges from approximately $388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carry-forward amounts to cover more than ten years of the minimum annual requirements (calculated based on the 2017 minimum, adjusted annually for inflation at an assumed rate of 4%).

**Leases**

In addition to the surface rights held by DynaMéxico pursuant to the *Mining Act* of México and its Regulations (*Ley Minera y su Reglamento*), DynaMineras maintains access and surface rights to the SJG Project pursuant to a 20-year Land Lease Agreement. The 20 Year Land Lease Agreement with the Santa Maria Ejido Community surrounding San Jose de Gracia was dated January 6, 2014 and continues through January 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG and provides for annual lease payments on January 1<sup>st</sup> each year by DynaMineras, in the amount of $1,359,443 Pesos (approximately $67,000 USD) adjusted for inflation based on the Mexico minimum wage increase. Rent was $5,429,373 Pesos (approximately $266,000 USD) for the year ended December 31, 2025. The Land Lease Agreement provides DynaMineras with surface access to the core resource areas of SJG (4,399 hectares) and allows for all permitted mining and exploration activities.

The Company also leases office space for its corporate headquarters located in Irving, Texas. In February 2023, the Company entered into a 52-month lease extension that included additional office space. As part of the amended lease, the Company received four months of free rent upon completion of the office expansion. The expansion was completed and the Company moved into the new space effective August 1, 2023. The Company makes tiered monthly lease payments on the first day of each month.

The Company determines whether a contract is or contains a lease at inception. As of September 30, 2025, the Company has two operating leases: (i) a 52 month lease for office space with a remaining term of 32 months; and (ii) a 20-year ground lease associated with its Mexico mining operations, with a remaining term of approximately 8.75 years. Variable lease costs consist primarily of common area maintenance, storage, parking, and utilities. The Company's leases do not have any residual value guarantees or restrictive covenants.

As the implicit discount rate is not readily determinable for most of the Company's lease agreements, the Company uses an estimated incremental borrowing rate to determine the initial present value of lease payments. The incremental borrowing rate is based on the Company's interest rates on its outstanding promissory notes.

**<u>NOTE 16 - FAIR VALUE OF FINANCIAL INSTRUMENTS</u>**

The Company follows the guidance in ASC 820, *Fair Value Measurement*, which establishes a framework for measuring fair value and requires disclosures about fair value measurements. ASC 820 defines a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

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*Level 1 Inputs -* Quoted prices (unadjusted) for identical instruments in active markets.

*Level 2 Inputs -* Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations for which all significant inputs are observable.

*Level 3 Inputs -* Valuations based on inputs that are unobservable and involve significant management judgement or estimation.

As of September 30, 2025 and December 31, 2024, the Company's financial assets and liabilities were measured at fair value using Level 3 inputs, with the exception of cash, accounts receivable, foreign tax receivable, notes payable, mining concession duties payable, which were valued using Level 1 inputs. A description of the valuation techniques and assumptions for Level 3 measurements is provided in Note 8.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total** | **Quoted<br>Prices in<br>Active<br>Markets<br>For<br>Identical<br>Assets (Level 1)** | **Significant<br>Other<br>Observable<br>Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| Fair Value Measurement as of September 30, 2025: |  |  |  |  |
| Liabilities: |  |  |  |  |
| Derivative Liabilities | $1115206 | $- | $- | $1115206 |
| Totals | $1115206 | $- | $- | $1115206 |
| Fair Value Measurement as of December 31, 2024: |  |  |  |  |
| Liabilities: |  |  |  |  |
| Derivative Liabilities | $892167 | $- | $- | $892167 |
| Totals | $892167 | $- | $- | $892167 |

---

The fair values of other financial assets and liabilities were estimated to approximate their carrying amounts due to their short-term maturities and historically negligible credit losses, and are classified within Level 1 of the fair value hierarchy.

**<u>NOTE 17 - CUSTOMER CONCENTRATION</u>** 

For the periods ended September 30, 2025 and December 31, 2024, one customer accounted for 100% of revenue and accounts receivable.

**<u>NOTE 18 – SEGMENTED INFORMATION</u>**

The Company operates as a single reportable segment focused on the development and operation of its gold-silver project in Mexico, The Company's Chief Executive Officer ("CEO") serves as the Chief Operating Decision Maker ("CODM"). The CODM uses consolidated net income (loss) as the measure of segment performance and for purposes of resource allocation. Segment assets is reported on the consolidated balance sheet as total consolidated assets. A majority of the Company's assets located in Mexico, with the following geographic concentrations as of September 30, 2025 and December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Mexico** | **United States** | **Total** |
| **September 30. 2025** |  |  |  |
| Mineral property interests, plant and equipment, net | 12382570 | 55571 | 12438141 |
| Current assets | 13676279 | 92691 | 13768970 |
| Other assets | 25267092 | 3814590 | 29081682 |
| Total assets | $51325941 | $3962852 | $55288793 |
| **December 31, 2024 (Restated)** |  |  |  |
| Mineral property interests, plant and equipment, net | 4132678 | 79290 | 4211968 |
| Current assets | 7246087 | 4924615 | 12170702 |
| Other assets | 20002993 | 2138285 | 22141278 |
| Total assets | $31381758 | $7142190 | $38523948 |

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30, 2025** | **September 30, 2024** |
| Total Revenue for the year - Mexico | $43702276 | $31715963 |
| Total Revenue for the year - United States | - | - |
| Total Revenue for the year | $43702276 | $31715963 |

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30, 2025** | **September 30, 2024** |
| Total comprehensive income (loss) for the year - Mexico | $7970444 | $(6916503) |
| Total comprehensive income (loss) for the year - United States | (7068236) | (2533669) |
| Total comprehensive income (loss) for the year | $902208 | $(9450172) |

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**<u>NOTE 19 - RELATED PARTY TRANSACTIONS</u>**

**Management Bonuses**

On March 28, 2025, the Compensation Committee approved bonus awards to the management team in cash and common stock. The stock portion is based on the closing price of $0.91 per share on March 28, 2025. Of these awards $70,000 in cash and $135,000 in stock (equivalent to 148,352 shares) were allocated to directors and officers. The Board of Directors ratified these awards on April 2, 2025.

**Independent Director Compensation**

On March 28, 2025, the Compensation Committee approved annual compensation for independent directors, consisting of a base cash payment of $25,000 per director, plus additional cash compensation of $4,000 for each committee membership and $3,000 for each committee chairmanship held by the director. In addition, each independent director was awarded $50,000 in equity compensation, to be paid in shares of common stock. The equity awards are subject to a vesting schedule whereby one-third vests immediately, one-third vests one year from the grant date, and the remaining one-third vests two years from the grant date. The Board of Directors approved this compensation on April 2, 2025.

During the nine months ended September 30, 2025 and 2024, the Company paid or accrued $155,292 and $237,500 in management fees to directors. As of September 30, 2025 and December 31, 2024, amounts due to related parties and included in accrued liabilities totaled $352,250 and $412,500.

**<u>NOTE 20 - SUBSEQUENT EVENTS</u>**

The Company has evaluated subsequent events through the date of these condensed interim consolidated financial statements were issued. There were no items requiring disclosure.

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") which we refer to in this report as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements are not historical facts, they reflect our current expectations, estimates and projections regarding future results and events, including matters related to our mining business, including resource estimates, exploration efforts, results and expenditures, development initiatives at the SJG mine, estimated production and capacity, costs, capital expenditures, expenses, recoveries, gold prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, environmental, social and governance ("ESG") and human capital management initiatives, risk management strategies, capital resources and use, cash flow maximization, mine life and other strategic initiatives. Such forward-looking statements are identified by the use of words such as "believes," "intends," "expects," "hopes," "may," "will", "should," "plan," "projected," "contemplates," "anticipates" or similar words and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward-looking information in this report includes, but is not limited to, statements regarding the beliefs, plans, expectations or intentions of management, as of the date of report, regarding: (i) DynaResource, Inc.'s (the "Company") ability to develop its exploration assets via operational cash flow from gold concentrate production; and (ii) the Company's plans and expectations regarding its proposed 2024 exploration program for its SJG mine. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that these expectations will be realized. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks related to: (1) fluctuations in commodity price, particularly gold and silver; (2) the Company's ability to retain or engage qualified employees or contractors necessary to conduct operations at the SJG mine; (3) fluctuations in the demand for gold, silver and other minerals; (4) unexpected difficulties with the milling and the extraction of minerals from the Company's projects; (5) unexpected interruptions and problems encountered in the operation of the SJG mine; (6) factors that delay or cause difficulties in timing of shipments of concentrates by the Company; (7) potential negative financial impact from regulatory investigations, claims, lawsuits and other legal proceedings and challenges; (8) the possibility that the Company may not have sufficient capital to operate its SJG mine or facilitate the further exploration of the SJG district; (9) inflationary pressures; (10) continued access to financing sources; (11) government orders that may require temporary suspension of operations or effects on our suppliers (12) the effects of environmental and other governmental regulations and government shut-downs; (13) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries; (14) our ability to raise additional financing necessary to conduct our business, make payments or refinance our debt; and (15) other factors beyond the Company's control. Additional risks are discussed in our Annual Report on Form 10K for the year ended December 31, 2024, and other filings with the SEC.

There is a significant risk that such forward-looking statements will not prove to be accurate. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Given current economic volatility and commodity fluctuations, any forward-looking statements or projections may be impacted significantly. Consequently, there is no representation by the Company that actual results achieved will be the same as those forecast. You are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

**Recent Developments**

On May 20, 2025, the Company filed a Technical Report Summary ("TRS") for the SJG mine, which was prepared in accordance with S-K 1300. The TRS includes the Company's first declaration of mineral reserves and supports the transition from an Exploration Stage issuer to a Production Stage issuer. The TRS was filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on May 20, 2025, and is incorporated herein by reference as Exhibit 96.1 to this Quarterly Report on Form 10-Q.

This transition to Production Stage has resulted in certain changes in accounting treatment, including the prospective capitalization of development expenditures and the commencement of depreciation on applicable assets, as further described in Note 3 to the unaudited condensed interim consolidated financial statements. Management anticipates that these changes will result in increased capitalized costs and higher depreciation expense in future periods.

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**Company**

The Company is a minerals investment, production, and exploration company, currently advancing its high-grade SJG gold mine in Mexico through its operating subsidiary, DynaMéxico. Activities are focused on exploration, technical evaluation, and project development aimed at expanding the mineral resource base.

The Company conducts operations in Mexico through its wholly-owned subsidiary, DynaMéxico. As of the date of this report, the Company owns 100% of the outstanding shares of DynaMéxico, which in turn holds 100% ownership of the mining concessions, equipment, camp, and related facilities which comprise the SJG mine.

In addition to advancing the SJG mine, the Company has also focused on strengthening its corporate governance practices, with the objective of meeting the listing requirements of additional stock exchanges in the United States and/or Canada.

**Project Improvements, Expansion and Increased Output**

Since 2015, the Company has carried out limited site-scale processing and operational activities at the SJG mine to support its exploration and evaluation programs. These activities have been directed toward enhancing the technical understanding of the deposit, optimizing on-site infrastructure, and advancing project development. In 2022, the Company expanded its exploration efforts at the SJG mine with the objective of increasing the project's mineral resource base, primarily targeting gold mineralization.

From initial small-scale operations averaging 100 tons per 24-hour operating day in 2015, throughput has steadily increased, reaching an average of approximately 700 tons per day in 2024. In 2023 alone, daily processing volumes rose by 30%, from 550 tons to 700 tons per day.

For 2025, the Company expects to increase average daily throughput to approximately 800 tons, with installed capacity now in place to support up to approximately 1,000 tons per day.

**Summary of Mining and Mill Operations** 

*Annual Results from 2018 to 2024:*

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year | **Total Tons<br>Mined &<br>Processed** | **Reported<br>Mill Feed<br>Grade (g/t Au)** | **Reported<br>Recovery%** | **Gross Gold<br>Concentrates<br>Recovered<br>(Au oz.)** | **Net Gold (1)<br>Concentrates<br>Sold<br>(Au oz.)** |
| **2018** | 52038 | 9.82 | 86.11% | 14147 | 13418 |
| **2019** | 66031 | 5.81 | 86.86% | 10646 | 9713 |
| **2020** | 44218 | 5.65 | 87.31% | 7001 | 5828 |
| **2021** | 97088 | 9.67 | 88.79% | 26728 | 22566 |
| **2022** | 137740 | 8.18 | 80.00% | 28988 | 25554 |
| **2023** | 198518 | 5.58 | 76.50% | 27252 | 24829 |
| **2024** | 257676 | 4.07 | 76.24% | 25677 | 22003 |

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In 2024, on-site operational activities at the SJG mine resulted in the processing of approximately 257,676 tons of material and the production of approximately 25,677 gross ounces of gold ("Au Oz"). After applying dry weight adjustments pursuant to settlement terms with the buyer, approximately 22,003 Au Oz were sold.

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Q*uarterly Results for the Three and Nine Months Ended September 30, 2025 and 2024:* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Three months ended** | **Three months ended** | **Nine months ended** | **Nine months ended** |
| **Key Operating Information** | **Unit** | **September 30, 2025** | **September 30, 2024** | **September 30, 2025** | **September 30, 2024** |
| **Operating Data** |  |  |  |  |  |
| Ore mined | ton | 74860 | 60992 | 212894 | 174292 |
| Mining rate | tpd | 814 | 663 | 780 | 636 |
| Ore Milled | ton | 62741 | 61900 | 196949 | 190006 |
| Mill Throughput | tpd | 682 | 673 | 721 | 693 |
| Grade | g/t | 3.39 | 3.78 | 3.55 | 4.05 |
| Recovery Au | % | 70.50% | 75.39% | 73.02% | 76.48% |
| Gold Ounces Produced | oz | 4830 | 5676 | 16312 | 18902 |
| Gold Ounces Sold | oz | 4780 | 5026 | 16101 | 15106 |

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(1)Gold concentrate sold during the period does not equal gold concentrate recovered during the period due to timing of shipments to the buyer, the buyer's payability discounts on gold concentrate purchases, and adjustments based on dry weight and final assay results under provisional settlement terms.

Mill feed grades and recovery rates are based on internal estimates derived from assay data and estimated weights of material processed.

The decrease in feed grade at the processing facility resulted from a planned reduction in the mining of certain high-grade zones in accordance with the mine plan, as well as higher than expected dilution encountered in the processed material. Increased throughput at the SJG mine also contributed to a greater volume of lower-grade ore being treated. To support throughput, the Company opened a new development area at San Pablo during the fourth quarter of 2023, an additional target zone, La Mochomera, in May 2024, and an additional area at Tres Amigos and a new development at Palos Chinos which is expected to yield higher-grade material at depth.

**<u>San Jose de Gracia Gold Project S-K 1300 Technical Report Summary</u>**

The Company released its S-K 1300 Technical Report Summary (the "Report") for the SJG mine in Sinaloa, Mexico. The Report includes the Company's Initial Mineral Reserve Estimate, which outlines a high-grade Proven and Probable Mineral Reserve of 250,000 gold ozs for the San Jose de Gracia mine. This initial Mineral Reserve Estimate and Report was prepared by the independent firm P&E Mining Consultants Inc ("P&E"), with metallurgical test work completed by Sepro Systems Inc ("Sepro") laboratories in Vancouver, B.C., and process plant review and operations aspects by D.E.N.M. Engineering Ltd. These independent groups of Qualified Persons have reviewed and approved the contents of this news release. The Report was filed by the Company with the Securities and Exchange Commission on May 20, 2025.l

**Highlights Include:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Proven & Probable Mineral Reserves of 1,607 k tonnes at 4.91 g/t gold, totaling 253,000 gold ounces (see Table 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Indicated Mineral Resource of 286 k tonnes at 6.74 g/t gold and Inferred Mineral Resource of 97 k tonnes at 4.37 g/t gold. (see Table 2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Life of Mine of 7-years based on current Mineral Reserves with excellent potential to extend along strike and adjacent to the existing underground mine infrastructure and in the wider San Jose de Gracia mine property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•After-tax NPV of the Project is estimated at $84.4 M ($110.0 M pre-tax) under baseline scenarios of 5% discount rate and $2,500/oz Au. At a $3,000/oz gold price the after-tax NPV is estimated at $133.3 M ($183.6 M pre-tax).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•An Operating Cash Cost of $1,327 (US$/oz Au Eq) and an All-in Sustaining Cost of $1,720 (US$/oz Au Eq).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Significant Upside - Gold price sensitivity with conservative pricing assumption ($2,500 oz Au ~25% below current spot gold price) used in the Report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Growth Potential – Mineral Reserves / Mineral Resources defined for only three of the mineralized structures in the San Jose de Gracia mine property, which historically hosted mining on a total of 20 discrete mineralized structures.

**Mineral Reserves**

The Mineral Reserves and Mineral Resource are as follows;

**Table 1: Mineral Reserves for the San José de Gracia Project** 

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp; **Mineral Reserve Estimate** <sup>(1-9)</sup> | &nbsp;&nbsp; **Mineral Reserve Estimate** <sup>(1-9)</sup> | &nbsp;&nbsp; **Mineral Reserve Estimate** <sup>(1-9)</sup> | &nbsp;&nbsp; **Mineral Reserve Estimate** <sup>(1-9)</sup> |
| &nbsp;&nbsp;**Reserve Class** | &nbsp;&nbsp;**Tonnes (k)** | &nbsp;&nbsp;**Grade (g/t Au)** | &nbsp;&nbsp;**Contained Metal (koz Au)** |
| &nbsp;&nbsp;**Proven** | &nbsp;&nbsp;1114 | &nbsp;&nbsp;5.23 | &nbsp;&nbsp;187.2 |
| &nbsp;&nbsp;**Probable** | &nbsp;&nbsp;493 | &nbsp;&nbsp;4.18 | &nbsp;&nbsp;66.3 |
| &nbsp;&nbsp;**Proven & Probable**<sup>9</sup> | &nbsp;&nbsp;**1607** | &nbsp;&nbsp;**4.91** | &nbsp;&nbsp;**253.5** |

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***Notes:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*1. Mineral Reserves are based on Measured and Indicated Mineral Resource Classifications only.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2. Mineral Reserves are reported using the 2014 CIM Definition Standards and 2019 Best Practices Guidelines and have an effective date of March 24, 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*3. Mineral Reserves are defined within mine plans and incorporate mining dilution and ore losses.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*4. Underground Mineral Reserves are based on metal price of US$2,500/oz Au and are constrained within a mine design, and use process plant recoveries varying between 76-80% for Au*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*5. An Underground economic cut-off value of US$140/t is estimated to differentiate ore from waste and is based on cost assumptions of US$99/t for mining US$23/t processing, US$18/t site general and administrative. Mineralized material above a cut-off of $90/t that is planned to be mined adjacent to economic material is identified as Marginal ore, as the revenue it generates exceeds the additional costs associated with haulage, processing and backfilling the material versus leaving it in the stope as backfill.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*6. Smelter terms result in an average value paid per ounce of gold of 90.53% of the value of the gold in concentrate, after accounting for all contract terms.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*7. The provided LOM block models do not track deleterious elements noted in the smelter terms, which could reduce the payable value of the concentrate. However, DynaResource asserts that no penalties of this nature have historically been assessed on any payment invoice from the existing concentrate buyer.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*8. Totals may not sum due to rounding.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*9. Mineral Reserves derived from marginal material total 312 kt at 2.03 g/t Au for a total contained metal content of 20.3 koz.*

**Mineral Resources**

**Table 2: Mineral Resources for the San José de Gracia Project** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Mineral Resource Estimate at 2.0 g/t Au Cut-off** <sup>(1-6)</sup> | &nbsp;&nbsp;**Mineral Resource Estimate at 2.0 g/t Au Cut-off** <sup>(1-6)</sup> | &nbsp;&nbsp;**Mineral Resource Estimate at 2.0 g/t Au Cut-off** <sup>(1-6)</sup> | &nbsp;&nbsp;**Mineral Resource Estimate at 2.0 g/t Au Cut-off** <sup>(1-6)</sup> | &nbsp;&nbsp;**Mineral Resource Estimate at 2.0 g/t Au Cut-off** <sup>(1-6)</sup> | &nbsp;&nbsp;**Mineral Resource Estimate at 2.0 g/t Au Cut-off** <sup>(1-6)</sup> |
| &nbsp;&nbsp;**Zone** | &nbsp;&nbsp;**Classification** | &nbsp;&nbsp;**Tonnes**<br>**(k)** | &nbsp;&nbsp;**Au**<br>**(g/t)** | &nbsp;&nbsp;**Au**<br>**(koz)** | &nbsp;&nbsp;**Metallurgical** <br>**Recovery** |
| &nbsp;&nbsp;San Pablo/Mochomera | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;286 | &nbsp;&nbsp;6.74 | &nbsp;&nbsp;62 | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;San Pablo/Mochomera | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;51 | &nbsp;&nbsp;4.29 | &nbsp;&nbsp;7 | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;Tres Amigos | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;46 | &nbsp;&nbsp;4.45 | &nbsp;&nbsp;7 | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;Indicated | &nbsp;&nbsp;286 | &nbsp;&nbsp;6.74 | &nbsp;&nbsp;62 | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;Inferred | &nbsp;&nbsp;97 | &nbsp;&nbsp;4.37 | &nbsp;&nbsp;14 | &nbsp;&nbsp;80% |

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***Notes:***

*1. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.*

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*2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It can be reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.*

*3. The Mineral Resource is estimated using Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations.* 

*4. Mined areas as of December 31, 2024, were depleted from the block models.*

*5. Mineral Resources are exclusive of Mineral Reserves.*

*6. All numbers are rounded.* 

**Economic Analysis**

For the current 7 year mine life exploiting the Tres Amigos, San Pablo and Mochomera orebodies the following was the key economic results from the study.

**Table 3: Key Economic Parameters**

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| | |
|:---|:---|
| &nbsp;&nbsp;**KEY ECONOMIC PARAMETERS** | &nbsp;&nbsp;**KEY ECONOMIC PARAMETERS** |
| &nbsp;&nbsp;**Parameter** | &nbsp;&nbsp;**Amount** |
| &nbsp;&nbsp;Production mine life (years) | &nbsp;&nbsp;7 |
| &nbsp;&nbsp;Production rate (tpd) | &nbsp;&nbsp;630 |
| &nbsp;&nbsp;Production rate (ktpa) | &nbsp;&nbsp;230 |
| &nbsp;&nbsp;Total production (kt) | &nbsp;&nbsp;1607 |
| &nbsp;&nbsp;Gold grade (g/t) | &nbsp;&nbsp;4.91 |
| &nbsp;&nbsp;Gold process recovery (%) | &nbsp;&nbsp;79.9 |
| &nbsp;&nbsp;Gold smelting/refining (%) | &nbsp;&nbsp;94 |
| &nbsp;&nbsp;Gold payable (koz) | &nbsp;&nbsp;190 |
| &nbsp;&nbsp;Gold Equivalent payable (koz) | &nbsp;&nbsp;190 |
| &nbsp;&nbsp;Net Revenue ($M) | &nbsp;&nbsp;463.6 |
| &nbsp;&nbsp;Sustaining Capital Costs ($M) | &nbsp;&nbsp;81.6 |
| &nbsp;&nbsp;Operating Cost ($/t processed) | &nbsp;&nbsp;155.85 |
| &nbsp;&nbsp;Operating Cost ($M) | &nbsp;&nbsp;250.4 |
| &nbsp;&nbsp;Operating Cash Cost (US$/oz AuEq) | &nbsp;&nbsp;1327 |
| &nbsp;&nbsp;All-in Sustaining Cost (US$/oz AuEq) | &nbsp;&nbsp;1720 |
| &nbsp;&nbsp;Pre-Tax Cash Flow ($M) | &nbsp;&nbsp;131.6 |
| &nbsp;&nbsp;Pre-Tax NPV (5% discount) ($M) | &nbsp;&nbsp;110.0 |
| &nbsp;&nbsp;Income Taxes ($M) | &nbsp;&nbsp;32.1 |
| &nbsp;&nbsp;After-Tax Cash Flow ($M) | &nbsp;&nbsp;99.5 |
| &nbsp;&nbsp;After-Tax NPV (5% discount) ($M) | &nbsp;&nbsp;84.4 |

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**Sensitivity Analysis**

The after-tax NPV sensitivities to ±20% changes in gold metal price, gold head grade, gold metallurgical recoveries, OPEX and CAPEX are presented in Figure 1 and Table 4 below. The after-tax base case NPV's is most sensitive to the gold metal price followed by gold metallurgical recoveries and gold head grades followed by OPEX, and then CAPEX.

**Figure 1: After-Tax NPV @ 5% Sensitivity Parameter Values**

![img245375195_1.jpg](img245375195_1.jpg)

**Table 4: After-Tax NPV @5% Sensitivity Graph**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS** | &nbsp;&nbsp;**EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS** | &nbsp;&nbsp;**EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS** | &nbsp;&nbsp;**EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS** | &nbsp;&nbsp;**EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS** | &nbsp;&nbsp;**EXTENDED GOLD PRICE AFTER-TAX NPV SENSITIVITY ANALYSIS** |
| &nbsp;&nbsp;**Gold Price (US$/oz)** | &nbsp;&nbsp;**2,000**<br>(80%) | &nbsp;&nbsp;**2,250**<br>(90%) | &nbsp;&nbsp;**2,500**<br>(100%) | &nbsp;&nbsp;**2,750**<br>(110%) | &nbsp;&nbsp;**3,000**<br>(120%) |
| &nbsp;&nbsp;After-Tax Project NPV @5% | &nbsp;&nbsp;27.5 | &nbsp;&nbsp;58.3 | &nbsp;&nbsp;84.4 | &nbsp;&nbsp;110.4 | &nbsp;&nbsp;133.3  |

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The SJG mine exhibits strong leverage to gold prices, especially with long-term gold price expectations exceeding the base case assumptions made in this report. At current spot prices above $3,200 per gold ounce, after tax NPV would be expected to materially exceed $133.3 million.

**2025 THIRD QUARTER HIGHLIGHTS**

**Operational Performance**

During the third quarter of 2025, the Company continued to advance the optimization program at the SJG mine. This program is focused on increasing process plant throughput and recoveries, improving maintenance and equipment utilization, and ultimately enhancing operational efficiencies and profit margins at the SJG mine.

Operational results for Q3 2025 showed improved performance across several critical operational metrics (particularly in costs) due to the ongoing optimization program. The average underground development was 1,264 meters per month in Q3 2025 (1,268 in Q2 2025), compared to 383 meters per month in Q3 2024. This increase allowed the mine to access over 20 production stopes. Expanded development work also led to the discovery of two new mineralized veins – one at the Tres Amigos mine and one at La Mochomera – which are currently being developed as potential additional high-grade ore sources. Process plant reliability also improved. Electrical refurbishment and preventative maintenance programs resulted in ball mill availability exceeding 95% for the quarter. Additionally, the flotation circuit underwent an optimization and refurbishment program, which required staged shutdowns of individual flotation cells for repair.

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A construction work program to establish a primary gravity gold circuit with the installation of three new Falcon gravity concentrators was underway by the end of Q3 with commissioning completed in early Q4. These Falcon units were installed after the ball mills to recover the significant portion of free gold available in the San Pablo, San Pablo Sur and La Mochomera deposits. In addition, the SJG process plant has an additional Falcon unit already installed on the tailings circuit. The aim of the installation of these Falcon units is to boost gold recoveries improving operational efficiency and SJG's mine economics, especially in the current higher priced gold environment.

Milled ore for Q3 2025 was 62,741 tons (approximately 682 tons per day), a slight reduction with Q2 2025 production of 66,834 tons due to the monsoonal wet season and the requirement to use coarser crushing screens.. With the current high ball mill availability, the Company is evaluating cost-effective strategies to utilize additional processing capacity of approximately 100 wet tons per day. Gold metal recoveries for the quarter averaged 73%, a slight decrease from the 74% gold recovery achieved in Q2 2025 primarily due to a coarse mill feed due to the wet season.

During Q3 2025, metal production totaled 1,648 ounces of gold in July, 1,822 ounces in August, and 1,360 ounces in September. Total metal production for Q3 2025 was 4,830 ounces of gold, below Q2 2025 production of 5,701 ounces due to wet season impacts and lower than planned grade. The average gold feed grade was 3.39 g/t for Q3 2025 and year to date (9 months) the average gold feed grade was 3.55 g/t gold.

Mine development for Q3 2025 was on budget with 3,013 meters of development completed, compared to 3,804 meters in Q2 2025. The completion of new development drifts enabled the Company to have more than 20 stopes into production by the end of the quarter. This additional mining flexibility is expected to positively impact ore tonnage and grades in the coming months. The Company has also completed a capital works program to enhance mine ventilation across all three mines which included connecting the Mochomera and San Pablo Sur mines which has had an immediate impact on the working environment. Improved ventilation time has resulted in an improvement in working conditions and faster re-entry times following blasting activities. Planning for a central Raise Bore ventilation shaft in the La Mochomera and San Pablo mines occurred during the quarter, further optimizing the mine ventilation.

Detailed Activities by Deposit:

**Tres Amigos**

Original mine planning at Tres Amigos anticipated closure by the end of Q1 2025. However, geological reinterpretations and targeted short exploration drifts identified two additional mineralized structures – the Victoria and Alexa veins – located within 40 meters of existing underground infrastructure.

To date approximately 40,000 tonnes of high-grade ore has been extracted from this high-grade structure. In addition, a new ore drive was completed on the upper levels of the Tres Amigos North Zone which is an area well known for free gold occurrences, providing access to a new high-grade ore face. Mining from this face is expected to contribute to Q4 2025 production and is expected to continue throughout 2026. This new access will also enable future diamond drilling to test the north and south extensions of the deposit, with the goal of increasing inventory.

**San Pablo Viejo and San Pablo Sur**

Throughout Q3 2025, the Company continued mining multiple faces at the San Pablo deposit while advancing development toward the deeper southern extensions.

San Pablo Viejo and San Pablo Sur are expected to remain the primary sources of gold production through 2025 and 2026, with additional upside potential beyond that horizon. Particularly promising is the South Extension at the 500 level, which could yield high-grade ("Bonanza"-style)gold mineralization in the short to mid-term. Ongoing development efforts are positioning the mine for continued growth, including expansion deeper into the La Mochomera vein system.

**La Mochomera** 

The La Mochomera vein is also expected to be a significant source of gold production in 2025 and 2026, with especially promising high-grade potential at depth. During Q1 2025, development activities intersected a previously unrecognized high-grade mineralized structure, now designated as the "532 Vein". The significance and potential of this new discovery are currently being evaluated.

**OUTLOOK (SJG MINE)** 

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With the development progress achieved in Q3 2025 and the increase in mining faces now available to the Company, management remains confident in the ongoing progress and long-term performance of the SJG mine. The Company's focus for the remainder of the year is to improve production and grade through the implementation of additional and ongoing operational enhancements and development work. With the grade challenges over the recent quarters resulting in lower production than anticipated, the Company has revised its 2025 annual production guidance to approximately 21,000 gold ounces compared to the previously adjusted guidance of 25,000 gold ounces.

While the Company made significant headway in Q3 2025, optimization efforts will continue to focus on improving gold ore grades to the mill, throughput rates, and recoveries. San Pablo Sur, San Pablo, La Mochomera and the Tres Amigos ore bodies are expected to remain the main contributors to production in the year ahead. Further development in these areas will also be a key focus to access additional high-grade zones and mining faces.

The capital works program to add a primary gravity gold circuit to the processing plant involves the installation of three new Falcon gravity concentrators. These concentrators were installed downstream of the ball mills to recover the significant portion of the free gold present in the San Pablo, San Pablo Sur, and La Mochomera deposits. The three new Falcon concentrator units have now been wet commissioned and have commenced producing gravity gold concentrate.

A new tailings dam was completed during Q3 2024, with an estimated storage capacity of 670,751 cubic meters, distributed over two stages to accommodate up to three years of additional tailings. The third-stage facility is currently in use, and planning for construction of the fourth stage is underway. The Company has also begun evaluating a potential location for a third tailings storage facility at the SJG mine. These studies include environmental and geotechnical surveys to identify a preferred site.

**Results for the Three and Nine Months Ended September 30, 2025 and 2024**

REVENUE: Revenue for the nine months ended September 30, 2025 and 2024 was $43,702,276 and $31,715,963, respectively. Revenue for the three months ended September 30, 2025 and 2024 was $14,119,589 and $11,203,505, respectively. The increase was primarily due to higher tonnage mined and processed, as well as higher realized gold prices.

During the first quarter of 2025, the Company's provisional gold assays (based on internal lab results) indicated higher gold content than was ultimately realized upon final settlement. This variance was attributed to the presence of coarse, "nuggety" gold in the ore, which can cause significant assay fluctuations. After identifying this issue, in early March the Company implemented enhanced laboratory QA/QC protocols to better account for coarse gold during analysis. Subsequent assay results have aligned within acceptable tolerances relative to final buyer assays, confirming the effectiveness of these measures. The settlement adjustment related to first quarter production of $1.4 million was recorded in the second quarter of 2025, when final assays were received and reconciled. The Company continues to monitor its assaying processes to ensure accurate reporting of gold production going forward.

OPERATING COSTS: Operating costs for the nine months ended September 30, 2025 and 2024 were $31,745,772 and $35,192,790, respectively. Operating costs for the three months ended September 30, 2025 and 2024 were $11,083,333 and $10,879,420, respectively. The cost decrease for the nine months ended September 30, 2025 reflected $6.9 million in capitalized mine development costs incurred beginning January 2025 following the issuance of the Company's Maiden Mineral Reserve Estimate under Reg. S-K 1300 and the resulting change to the Company's capitalization policies, which was part of the operating costs during 2024.

GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses for the nine months ended September 30, 2025 and 2024 were $4,632,310 and $3,262,382, respectively. General and administrative expenses for the three months ended September 30, 2025 and 2024 were $1,587,772 and $994,546, respectively. These represent corporate overhead not directly attributable to site operations, including management, accounting, and legal expenses.

STOCK-BASED COMPENSATION EXPENSE: Stock-based compensation expense was $2,484,503 and $822,500 for the nine months ended September 30, 2025 and 2024 respectively. Stock-based compensation expense for the three months ended September 30, 2025 and 2024 was $1,657,839 and $Nil, respectively and was related to the vesting of restricted stock awards issued in 2024 combined with shares awarded in 2025.

DEPRECIATION AND DEPLETION: Depreciation and depletion expense for the nine months ended September 30, 2025 and 2024 were $747,013 and $22,593, respectively. Depreciation and depletion expense for the three months ended September 30, 2025 and 2024 were $338,476 and $7,906, respectively. With the Company's transition from Exploration Stage to Production Stage under S-K 1300, the Company began capitalizing mine development costs and commenced depreciation and depletion charges on a units-of- production basis.

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ACCRETION EXPENSE. Accretion expense for the nine months ended September 30, 2025 and 2024 was $14,958 and $13,695, respectively. Accretion expense for the three months ended September 30, 2025 and 2024 was $4,986 and $4,565, respectively. The Company began accreting its asset retirement obligation on January 1, 2024, related to estimated costs to decommission the milling plant and tailings pond at the estimated life of the mines in operation at the establishment of the ARO in 2023 as a result of the expansion of the milling operation.

**Liquidity and Capital Resources**

As of September 30, 2025, the Company had negative working capital of $20,680,197 comprised of current assets of $13,768,970 and current liabilities of $34,449,167. This represented an increase of $2,436,673 from the Company's negative working capital of $18,243,524 as of December 31, 2024, primarily due to increased cash used in investing activities during the nine months ended September 30, 2025, and higher accounts payable and accrued liabilities as of September 30, 2025.

Net cash provided by operating activities for the nine months ended September 30, 2025 was $6,724,096 compared to a use of $8,184,860 during the nine months ended September 30, 2024. The improvement in the cash flow from operations was primarily attributable to the Company's income generated in the nine months of 2025, driven by increased revenue and lower mine operating costs.

Cash used in investing activities for the nine months ended September 30, 2025 totaled $8,973,186 compared to $6,755 during the nine months ended September 30, 2024. The increase reflected $6.9 million in capitalized mine development costs incurred beginning January 2025 following the issuance of the Company's Maiden Mineral Reserve Estimate under Reg. S-K 1300 and the resulting change to the Company's capitalization policies.

Cash provided by financing activities for the nine months ended September 30, 2025 and 2024 was $5,059,296 and $3,978,713, respectively. The netco cash provided by financing activities during the nine months ended September 30, 2025 came from $17,650,000 of advances from the company's Revolving Credit Line ("RCL") offset by $12,500,000 in payments on the RCL and $90,704 in operating lease payments.

Through September 30, 2025, the Company's available liquidity and operations have been financed primarily through its operations and the revenue generated from the sale of product.

Although the Company has incurred positive net income and net cash inflows from operating activities for the nine months ended September 30, 2025, there were many expenditures associated with investing activities which were made that were not expended for the production of revenue during the current period, such as underground development and mine expansion costs. If these expenses had not been made, the Company's net decrease in cash would have been minimized. The Company believes its cash and cash receipts from its revenue arrangement, proceeds from the sale of equity and proceeds from borrowing will be sufficient to meet its working capital and capital expenditure needs for at least the next 12 months from the date these financial statements were available for issuance. Future capital requirements will depend on many factors, including the Company's rate of mining, milling, and exploration activities and growth. To the extent that existing capital and revenue growth are not sufficient to fund future activities, the Company may need to raise capital through additional equity or debt financings. Additional funds may not be available on terms favorable to the Company or at all. Failure to raise additional capital, if needed, could have a material adverse effect on the Company's financial position, results of operations and cash flows.

**Off-Balance Sheet Arrangements**

As of September 30, 2025, the Company had no off-balance sheet arrangements that would have a material adverse effect on its financial condition, results of operations, or liquidity.

**Plan of Operation**

The plan of operation for 2025 includes the continued enhancement of site infrastructure and processing capabilities, along with expanded exploration drilling at the SJG mine. During 2024, the Company processed an average of approximately 700 tons of material per day. For the first six month of 2025 an average of 730 tons of material per day was processed and for the second half of 2025, the Company anticipates increasing daily processing throughput to an average of 800 tons per day. The Company now has processing capacity of up to 1,000 tons per day, with a target rate of 800 tons per day. The Company has initiated development as part of its exploration activities on additional target areas (Victoria and Palos Chinos structures) which are anticipated to yield higher-grade material for processing. The Company expects that a combination of higher-grade feed material, increased processing throughput, and higher gold prices will produce a significant increase in revenue in 2025, as part of its ongoing exploration and project advancement efforts.

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The Company plans to continue its exploration drilling program from underground and commence drilling from surface in the second half of 2025. Management and geologists will make decisions based on drill results, corporate strategies, market conditions, surface mapping, sampling, and target generation. The Company has contracted with a "Qualified Person," within the meaning of S-K 1300, to interpret the collected data and compile a formal Mineral Resource Estimate update which was filed on May 20, 2025.

**Capital Expenditures**

Primary capital expenditures in 2025 have been directed toward increasing underground infrastructure development and enhancing processing capacity at the SJG mine. Average underground development in Q3 2025 was 1,246 meters per month, compared to 380 meters per month in 2024. Processing systems have been upgraded through the installation of new concentrators and the repurposing of the original grinding mill. Additional equipment acquisitions and infrastructure improvements have also enhanced site access and operational capacity. The company is planning a major Ventilation Upgrade in the La Mochomera and San Pablo mines with the installation of a central Raise Bore ventilation shaft. Works for this shaft are scheduled to commence in Q4 2025. Effective January 1, 2025, capital expenditures are capitalized in accordance with S-K 1300. See Note 3 of the unaudited condensed interim consolidated financial statements.

**Exploration Activity**

The Company continues to invest in exploration spending on near-mine extensions as well as geological studies and reinterpretations. The Company completed an S-K 1300 Mineral Resource Estimate in Q2 2025 covering San Pablo Sur, San Pablo, La Mochomera and the Tres Amigos ore bodies which includes development proposals for additional exploration of ore veins in the short and mid-term.

The Company expects to start near-mine extension drilling in Q4 2025 and expand exploration to surrounding areas by year-end. Exploration will focus on growing the known resources at the SJG mine.

The Company intends to prioritize exploration of high-grade underground targets that can be readily incorporated into the mine plan, as well continue the regional program to better understand the broader potential of the SJG land package. Additionally, planning for deeper and lateral drilling between the San Pablo and Tres Amigos veins has highlighted the potential to extend high-grade underground resources at the SJG mine, especially in areas previously considered discontinuous due to faulting. The Company has identified opportunities to develop San Pablo, San Pablo Sur, La Mochomera, and Tres Amigos exploration potential. At the La Mochomera deposit, the Company plans to explore southward toward the historic Palos Chinos and Purisima mines, which operated over 100 years ago as high-grade producers. Of note is the Palos Chinos exploration target, located within 40 meters of the existing La Mochomera mine infrastructure.

In June 2025, the Company provided an update on exploration activities at its 100%-owned San Jose de Gracia gold project in Sinaloa, Mexico. This update included the preliminary identification of two potential high-grade mineralized zones situated adjacent to existing mine infrastructure. These zones are currently under evaluation for future exploration and development potential.

*Note: Assay results referenced in this Quarterly Report on Form 10-Q are based on internal laboratory analyses conducted at the San Jose de Gracia plant. They have not been verified by an independent third-party laboratory and do not conform to disclosure standards such as S-K 1300 or NI 43-101.*

Over the past nine months, the Company has been compiling and interpreting geological, geochemical, geophysical, and historical mining data to support an exploration diamond drilling program planned for later in 2025. This review has led to the identification of the Victoria zone, a previously undocumented mineralized structure located approximately 40 meters from the upper-level development at the Tres Amigos mine (see Figures 1 and 2). Similarly, analysis of historical workings mining activity has highlighted the potential of the Palos Chinos zone, situated near active workings at Mochomera (see Figure 3). Both zones are undergoing early-stage evaluation through exploration drifting, geological mapping, channel sampling, and internal bulk sampling. Material is being processed at the San José de Gracia plant to assess mineralization, metallurgy, and gold recovery characteristics.

**Victoria Target (Tres Amigos Mine Area)** 

Geological and structural analysis at the Tres Amigos working face has led to the identification of an exploration target in the previously underexplored hanging wall of the Tres Amigos vein system. Subsequent development drifting toward this target has resulted in the discovery of a previously undocumented mineralized vein approximately 1.5 meters in width (see Figure 3). To date, a total of 110 meters of drifting has been completed on two sublevels (550 and 540 levels, spaced 10 meters apart), alongside the collection and analysis of 1,069 channel samples. In addition, the Company has mined and processed a bulk sample of approximately 10,000 tonnes, with internal assay results indicating an estimated average grade of 8 grams per tonne gold. Based on the current exploration work, the Victoria zone is considered to have a conceptual exploration target of approximately 100,000 tonnes grading between 7 and 8 grams per tonne gold, representing a potential of ~25,000 ounces of contained gold.

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*Note: The potential quantity and grade of the Victoria target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further work will result in the delineation of a mineral resource.*

![img245375195_2.jpg](img245375195_2.jpg)

**Figure 1**: Plan view of the existing underground infrastructure at Tres Amigos, highlighting the location of the newly identified Victoria vein in the hanging wall zone.

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![img245375195_3.jpg](img245375195_3.jpg)

**Figure 2:** Photograph of the Victoria vein, highlighting a vein width of 1.5 meters and abundant sulphide mineralization, including chalcopyrite, pyrite, galena, and sphalerite, characteristic of this high-grade gold-bearing structure.

**Palos Chinos** 

Exploration drifting toward the historical Palos Chinos vein system has advanced to approximately 70 meters from current mine workings. Observations from this development, combined with historical mapping from 1999-2000, suggest a second near-infrastructure exploration target. Preliminary evaluation indicates a conceptual exploration target of approximately 90,000 tonnes grading 5 to 6 g/t per tonne gold, representing a potential of ~15,000 ounces of contained gold.

*Cautionary Statement: The potential quantity and grade of the Palos Chinos target are conceptual in nature. There has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the delineation of a mineral resource.*

The ongoing exploration drifts have encountered minor disseminated mineralized structures within the footwall of the Palos Chinos structure, supporting the potential for additional mineralization along the trend (see Figure 3).

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![img245375195_4.jpg](img245375195_4.jpg)

**Figure 3**: Image showing existing underground infrastructure at the Mochomera vein system, showing the special relationship to the newly identified Victoria vein and its proximity to the Palos Chinos exploration drift.

![img245375195_5.jpg](img245375195_5.jpg)

**Figure 4**: Photograph of a mineralized vein exposed in the drift development advancing toward the main Palo Chinos vein.

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Detailed mapping and sampling conducted in 1999 and 2000 across multiple levels of the historical Palos Chinos workings confirmed that the mined-out section of the Palos Chinos vein generally averages between 1.0 and 1.5 meters in thickness, with a steep westerly dip ranging from 60° to 80°. Along strike, several mineralized shoots were identified, displaying key structural and mineralogical characteristics, including:

• A shift in strike orientation from south to southeast;

• A localized shallowing of dip angles between 35° to 40°;

• Vein thickening to between 2 and 4 meters;

• Increased development of chlorite-rich stockwork adjacent to the vein;

• Elevated gold grades, including individual samples grading up to 92.5 g/t Au over 0.7 meters; and

• A mineralized shoot transect averaging 7.6 g/t Au over 7.6 meters, including 13.4 g/t Au over 3.4 meters within the main Palos Chinos vein (see Table 1).

In total, 180 samples were collected along the Palos Chinos trend from both surface exposures and underground workings. Of these, 74 samples were taken directly from the Palos Chinos vein and adjacent mineralized hanging wall and footwall zones. Based on this dataset, the Palos Chinos vein returned an average grade of 11.4 g/t Au over an average width of 1.2 meters. Additionally, mining above the Palos Chinos level exposed a parallel, laterally continuous hanging wall vein located approximately 4 to 5 meters above the main structure. Three samples collected from this vein returned gold grades ranging from 11.3 to 18.5 g/t Au and also contained notable concentrates of copper, with localized lead and zinc values over narrow widths. A summary of significant historical assay results from the Palos Chinos vein is provided in Table 1.

![img245375195_6.jpg](img245375195_6.jpg)

**Table 1:** Summary of significant historical assay results samples from the Palos Chinos vein.

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The reported average vein thickness of 1.2 meters is derived from the mean of all individual sample interval widths and does not reflect the full extent of the historically mined zone between the Palos Chinos and Saramiento levels. To determine the broader mineralized envelope, a representative channel potential sample transect spanning the interval between the Palos Chinos vein and a parallel hanging wall structure returned an average of 7.4 g/t Au over 7.6 meters (see Table 1). These results indicate that portions of the Palos Chinos trend may exhibit sufficient thickness, grade continuity, and structural geometry to be amenable to mechanized mining, subject to further drilling, geotechnical evaluation, and mine planning studies.

![img245375195_7.jpg](img245375195_7.jpg)

**Figure 5:** Assay results from a representative channel sample transect extending from the footwall contact, across the Palos Chinos vein and associated chlorite stockwork zone, to the hanging wall vein. The composite interval averages 7.4 g/t Au over 7.6 meters (true width), with notable enrichment in gold, silver, and copper across discrete intervals

**Production Stage**

The Company is currently classified as a Production Stage issuer under S-K 1300. Prior to January 1, 2025, the Company was considered an Exploration Stage issuer, having engaged in mining, milling, and extraction activities without having established proven and probable mineral reserves.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Not applicable to smaller reporting companies.

**ITEM 4. CONTROLS AND PROCEDURES**

<u>Evaluation of Disclosure Controls and Procedures</u>

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2025. This evaluation was conducted under the supervision and with the participation of our principal executive officer and principal financial officer, who concluded that our disclosure controls and procedures are effective at the reasonable assurance level as of the end of the period covered by this Quarterly Report on Form 10-Q. For purposes of this section, the term "disclosure controls and procedures" refers to controls and other procedures designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers (or persons performing similar functions), as appropriate, to allow timely decisions regarding required disclosure.

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We recognize the importance of having effective controls in place to manage risks and ensure the integrity of our financial reporting. We are committed to continuously improving our control environment through ongoing monitoring, testing, and remediation of control deficiencies. Our management team is actively involved in overseeing the effectiveness of our controls, and we have established a culture of accountability and transparency to ensure that all employees understand their roles and responsibilities in maintaining a strong control environment. We are also investing in technology to streamline our control processes and reduce the risk of errors and fraud. We believe that these efforts will enhance our level of control effectiveness.

<u>Changes in Internal Control over Financial Reporting</u>

The Company did not make any changes in its internal control over financial reporting during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, its internal control over financial reporting. Our process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures and the remediation of any deficiencies, which may be identified during this process.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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**PART II**

**ITEM 1. LEGAL PROCEEDINGS** 

From time to time, the Company becomes involved in legal matters in the ordinary course of its business. The Company intends to defend itself vigorously against any such claims. It is the Company's policy to accrue for amounts related to lawsuits brought against it if it is probable that a liability has been incurred and an amount can be reasonably estimated. Although the outcome of such matters cannot be predicted with certainty, the Company believes that the outcome of those ordinary-course matters in which it is currently involved will not have a material adverse effect on its results of operations, liquidity, or financial position.

**DynaMexico Tax Re-assessment**

On March 3, 2025, the Mexican tax authority, Servicio de Administración Tributaria ("SAT"), issued a reassessment for the 2021 tax year of Dynaresource de México ("DynaMexico") asserting a discrepancy in taxable income totaling $19 million USD (368 million MXN), inclusive of interest, inflation adjustments, and penalties. The reassessment encompasses several key components, including the determination of taxable income, treatment of available tax losses, and the denial of deductibility for legitimate mining production costs and other expenses. It also includes assessments related to mining concession fees. Additionally, the Company believes the reassessment does not properly reflect the application of an appropriate transfer pricing methodology in the deduction of intercompany management fees.

On March 28, 2025, the Company submitted a request through the Mexican Taxpayer Ombudsman, Procuraduría de la Defensa del Contribuyente ("Prodecon"), seeking a Conclusive Agreement ("Acuerdo Conclusivo") with SAT. To date, the Company has successfully defended $5.7 million USD ($112 million MXN) of the reassessed amount of taxable income, with $13.3 million USD ($256 million MXN) remaining under review. While the Company is actively contesting most of the reassessment, during the course of its review it identified previously unrecorded obligations related to Special and Extraordinary Mining Duties for fiscal years 2021, 2022 and 2023. As a result, a liability of $3 million USD has been recognized in the unaudited condensed interim consolidated financial statements to reflect the Company's current estimate of the amount owed in respect of these items. See Note 2 to the unaudited condensed interim consolidated financial statements.

**Title of Properties**

On July 17, 2025, the Company's Board of Directors authorized Company management to commence a legal process under Mexican law referred to as "amparo" in order to protect the Company's rights with respect to the following nine mining concessions (the "Impacted Concessions") related to the Company's San José de Gracia mine project:

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| | | |
|:---|:---|:---|
| **TITLE NO.** | **NAME** | **AREA (ha)** |
| 172216 | LOS TRES AMIGOS | 23.0000 |
| 184473 | SAN SEBASTIÁN | 40.0000 |
| 184999 | NUEVO ROSARIO | 32.8781 |
| 208537 | SAN JOSÉ | 27.0000 |
| 215555 | PIEDRAS DE LUMBRE UNO | 40.2754 |
| 215556 | PIEDRAS DE LUMBRE 2 | 34.8493 |
| 226289 | LA NUEVA ESPERANZA | 40.0000 |
| 230494 | FRANCISCO ARTURO | 3279.5600 |
| 231166 | FINISTERRE 4 | 2142.1302 |

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During a review by the Company's executive management of information related to the Company's mining concessions, the Company became aware that a public website hosted by the Mexican Secretariat of Economy (Secretaría de Economía) (the "Website") includes information indicating that the Impacted Concessions are not currently active. Although the Website also indicates that the published information is for informational purposes only and that such information is not officially valid, and the Company has not received any formal notification from any Mexican authority asserting adverse action that could result in the nullification or cancellation of the rights under any of the Impacted Concessions, the Board determined it prudent, as a precautionary measure, to authorize the Company to commence the amparo process to challenge the inactive status of the Impacted Concessions indicated on the Website and any related administrative action(s) taken in violation of the Company's due process rights.

The Company continues to review information available to it and intends to take appropriate action to protect its rights to the Impacted Concessions; however, no assurance can be provided regarding the outcome of its actions or the availability of the Impacted Concessions to the Company in the future.

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**Environmental Fine and Installment Arrangement**

On July 19, 2024, the Federal Attorney for Environmental Protection (PROFEPA) issued a resolution determining a fine of MXN $8,251,320 against DynaMexico, in connection with alleged irregularities in the construction and operation of the tailings dam and related facilities at the San José de Gracia site. The Company filed a nullity trial before the Federal Court of Administrative Justice, and on May 28, 2025, obtained a suspension of enforcement of the fine. The Company continues to contest the PROFEPA assessment through all available legal remedies.

On September 11, 2025, the Mexican tax authority (SAT) notified the Company of the updated fine amount of MXN $8,716,519, inclusive of adjustments. Pursuant to a Board resolution dated October 6, 2025, the Company authorized DynaMexico to enter into an installment arrangement with SAT, requiring a 20% upfront payment and the balance to be paid over thirty-six (36) monthly installments. The total cost under the plan is approximately MXN $9.57 million, including principal of MXN $6.98 million and interest.

The Company expressly reserves its right to continue contesting the underlying PROFEPA fine and, if successful, to seek recovery of amounts paid under the SAT arrangement.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

As the Company has no mines located in the United States or any of its territories, the disclosure required by this Item is not applicable.

**ITEM 5. OTHER INFORMATION**

During the fiscal quarter ended September 30, 2025, none of our directors or officers informed us of the adoption, modification or termination of a "Rule 10b-5 trading arrangement" or "non-Rule 10b-5 trading arrangement," as those terms are defined in Regulation S-K, Item 408.

Effective May 20, 2025, the Board of Directors of the Company and the Series C and Series D Preferred Stockholders approved and adopted the Second Amendment to the Amended and Restated Bylaws of the Company (the "Second Amendment"), to restate Article III, Section 3.02 thereof in its entirety. The effect of the Second Amendment is to alter the permitted composition of the Board of Directors of the Company, consistent with both (i) the July 17, 2023 Certificate of Amendment filed with the Secretary of State of the State of Delaware (the "Certificate of Amendment") and (ii) the current composition of the Board of Directors.

Pursuant to the Certificate of Amendment and as set forth in the Second Amendment: (i) the Board of Directors is divided into two classes of directors, Class I Directors and Class II Directors, all of whom are eligible for election at each annual meeting of the stockholders; (ii) the Board of Directors have the right to fix the number of directors from time to time; provided that there must always be at least one Class II Director; and (iii) the Class I Directors are elected by the vote of the holders of the issued and outstanding shares of Common Stock voting together as a single class, and the Class II Directors are elected by the vote of the holders of the issued and outstanding shares of Series C Preferred Stock voting together as a single class (and to the extent that no shares of Series C Preferred Stock are issued and outstanding, then the Class II Directors will be elected by the vote of the holders of the issued and outstanding shares of Common Stock voting together as a single class).

The Second Amendment to the Amended and Restated Bylaws of the Company is attached to this Quarterly Report on Form 10-Q as Exhibit 3.1.

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**ITEM 6. EXHIBITS**

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| | |
|:---|:---|
| **Exhibit Number;**  | **Name of Exhibit** |
| [<u>10.1</u>](dynr-ex10_1.htm) | [<u>Amendment Agreement, dated as of August 5, 2025, by and among DynaResource de Mexico, SA de CV, MK Metal Trading Mexico SA de CV, and Ocean Partners UK Limited (portions of this exhibit (indicated by asterisks) have been omitted pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934)</u>](dynr-ex10_1.htm) |
| [<u>10.2</u>](dynr-ex10_2.htm) | [<u>Concentrate Credit Facility, dated August 22, 2025, by and between DynaResource de Mexico, SA de CV and Ocean Partners UK Limited.</u>](dynr-ex10_2.htm) |
| [<u>10.3</u>](dynr-ex10_3.htm) | [<u>Parent Company Guarantee, dated August 22, 2025, by and between DynaResource, Inc., DynaResource de Mexico, SA de CV and Ocean Partners UK Limited.</u>](dynr-ex10_3.htm) |
| [<u>23.1</u>](https://www.sec.gov/Archives/edgar/data/1111741/000095017025074899/dynr-ex23_1.htm) | [<u>Consent of P&E Mining Consultants Inc., incorporated by reference to Exhibit 23.1 to the Company's Form 8-K/A filed on May 20, 2025.</u>](https://www.sec.gov/Archives/edgar/data/1111741/000095017025074899/dynr-ex23_1.htm) |
| [<u>23.2</u>](https://www.sec.gov/Archives/edgar/data/1111741/000095017025074899/dynr-ex23_2.htm) | [<u>Consent of D.E.N.M Engineering Ltd., incorporated by reference to Exhibit 23.2 to the Company's Form 8-K/A filed on May 20, 2025.</u>](https://www.sec.gov/Archives/edgar/data/1111741/000095017025074899/dynr-ex23_2.htm) |
| [<u>96.1</u>](https://www.sec.gov/Archives/edgar/data/1111741/000095017025074899/dynr-ex99_1.htm) | [<u>Technical Report Summary for the San José de Gracia Project effective March 24, 2025, incorporated by reference to Exhibit 99.1 to the Company's Form 8-K/A filed on May 20, 2025.</u>](https://www.sec.gov/Archives/edgar/data/1111741/000095017025074899/dynr-ex99_1.htm) |
| 31.1 | [<u>Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.</u>](dynr-ex31_1.htm) |
| 31.2 | [<u>Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.</u>](dynr-ex31_2.htm) |
| 32.1 | [<u>Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.</u>](dynr-ex32_1.htm) |
| 101 | <u>The following materials from the DynaResource, Inc. Quarterly Report on Form 10-Q for the Nine months ended September 30, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Interim Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, (ii) Condensed Interim Statements of Income (Loss) and Comprehensive Income (Loss) for the Three and Nine months ended September 30, 2025 and 2024 (Unaudited), (iii) Condensed Interim Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Nine months ended September 30, 2025 and 2024 (Unaudited), (iv) Condensed Interim Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited), and (vi) Notes to Unaudited Condensed Interim Consolidated Financial Statements.</u> |
| 104 | <u>Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.INS)</u> |

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**SIGNATURES**

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | DynaResource, Inc. | DynaResource, Inc. |
| Date: November 14, 2025 | By: | /*s/ Rohan Hazelton* |
|  |  | Rohan Hazelton,  |
|  |  | President and Chief Executive Officer |
|  |  | (principal executive officer) |

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| | | |
|:---|:---|:---|
| Date: November 14, 2025 | By: | /*s/ Alonso Sotomayor* |
|  |  | Alonso Sotomayor,  |
|  |  | Chief Financial Officer |
|  |  | (principal financial and accounting officer) |

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## Exhibit 10.1

Exhibit 10.1

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) OF THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. SUCH EXCLUDED INFORMATION IS DESIGNATED WITH [\*\*\*].

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|:---|:---|
| **CONTRATO DE COMPRA NO. MKM.SP 90731**<br>**ENMIENDA No. 5**<br>ENMIENDA con fecha 5 de agosto del 2025 Entre<br>**DYNARESOURCE DE MEXICO S.A. DE C.V.**<br>Calle Cedro Number 303 Col. Alameda<br>Mazatlán, Sinaloa Mexico CP 82123 52 (669) 991-4988<br>De aquí en adelante referida como "**La Vendedora**"<br>**MK METAL TRADING MEXICO SA DE CV**<br>Av. Ejercito Nacional Mexicano<br>No. 769, Torre B Piso 3 Oficina L02, Col. Granada, Mexico City, 11520 Mexico<br>De aquí en adelante referida como "La<br>**Compradora**". Y<br>**OCEAN PARTNERS UK LIMITED**<br>The Pearce Building, Third floor, West Street Maidenhead, Berkshire SL6 1RL<br>United Kingdom<br>De aquí en adelante referida como "La<br>**Compradora Conjunta**".<br>La Compradora, la Compradora Conjunta y la Vendedora juntos se conocerán como las "**Partes**".<br>**ANTECEDENTES**<br>La Vendedora y la Compradora celebraron un Contrato mediante un Acuerdo de Cesión, Asunción y Consentimiento del Contrato de Concentrado de Oro con fecha 23 de marzo de 2022, que fue una cesión del Contrato con<br>fecha 1 de febrero de 2021 y sus posteriores modificaciones (el "**Contrato**"). | **PURCHASE CONTRACT NO. MKM.SP 90731**<br>**AMENDMENT No. 5**<br>AMENDMENT Dated August 5th, 2025 Between<br>**DYNARESOURCE DE MEXICO S.A. DE C.V.**<br>Calle Cedro Number 303 Col. Alameda<br>Mazatlán, Sinaloa Mexico CP 82123 52 (669) 991-4988<br>Hereinafter called "**Selle**r"<br>**MK METAL TRADING MEXICO SA DE CV**<br>Av. Ejercito Nacional Mexicano<br>No. 769, Torre B Piso 3 Oficina L02, Col. Granada, Mexico City, 11520 Mexico<br>Hereinafter called "**Buyer**"<br>AND<br>**OCEAN PARTNERS UK LIMITED**<br>The Pearce Building, Third floor, West Street Maidenhead, Berkshire SL6 1RL<br>United Kingdom<br>Hereinafter called "**Joint Buyer**"<br>The Buyer, Joint Buyer and Seller together shall be known as the "**Parties**".<br>**BACKGROUND**<br>The Seller and the Buyer entered into a Contract via Assignment, Assumption and Consent Agreement of Gold Concentrate Contract dated 23rd March 2022 which was an assignment of the Contract dated 1st February 2021 and<br>amended at various times thereafter (the "**Contract**"). |

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| &nbsp;&nbsp;Las Partes desean enmendar el Contrato para agregar a la Compradora Conjunta como Parte del Contrato en calidad de Compradora Conjunta, con todos los derechos y obligaciones establecidos en el mismo. Las Partes también acordaron modificar la Cláusula<br>&nbsp;&nbsp;&nbsp;&nbsp;2. Duración y Cantidad, la Cláusula 8. Pago, la Cláusula 22. Terminación y el ANEXO 2, Metales Pagables del Contrato.<br>**ADHESIÓN DE LA COMPRADORA CONJUNTA**<br>Con efecto a partir de la fecha de esta Enmienda:<br>a)La Compradora Conjunta se adherirá y pasará a ser parte del Contrato como "Compradora Conjunta" junto con la Compradora existente;<br>b)Todas las referencias a la "Compradora" en el Contrato se entenderán referidas tanto a la Compradora como a la Compradora Conjunta (en conjunto, las "Compradoras Conjuntas");<br>c)Las Compradoras Conjuntas serán solidariamente responsables de todas las obligaciones, responsabilidades y deberes de la Compradora en virtud del Contrato; y<br>d)La Compradora Conjunta tendrá derecho a ejercer todos los derechos, recursos, facultades y beneficios otorgados a la Compradora en virtud del Contrato, de la misma manera y en la misma medida como si hubiera sido Parte original del mismo.<br>&nbsp;&nbsp;&nbsp;&nbsp;**2. DURACIÓN Y CANTIDAD**<br>El presente Contrato inicia el 27 de enero del 2021 y se mantendrá vigente hasta que tanto la Compradora como la Vendedora cumplan las obligaciones que se generen del presente.<br>Sujeto a los términos del presente Contrato, la Vendedora acuerda hacer sus mejores esfuerzos para producir y vender a la Compradora, y la Compradora acuerda comprar el 100% de la producción de Concentrado Oro de flotación y gravimétrico (en adelante denominado el "**Concentrado**") para el periodo desde el 27 de enero del 2021 hasta el 31 de diciembre del 2030, sujeto a una entrega mínima proyectada por la Vendedora en 80,000 WMT de Concentrado (menos 10%), según lo establecido en la Clausula 3 y de | &nbsp;&nbsp;The Parties wish to amend the Contract to add the Joint Buyer as a Party to the Contract as a Joint Buyer, with full rights and obligations as set out therein. The Parties also agreed to amend Clause 2. Duration and Quantity, Clause<br>&nbsp;&nbsp;&nbsp;&nbsp;8. Payment, Clause 22. Termination and Schedule 2 Metal Payments of the Contract.<br>**ACCESSION OF THE JOINT BUYER**<br>With effect from the date of this Amendment:<br>a)The Joint Buyer shall accede to and become a party to the Contract as a "Joint Buyer" alongside the existing Buyer;<br>b)All references in the Contract to the "Buyer" shall be deemed to refer to both the Buyer and the Joint Buyer (collectively, the "Joint Buyers");<br>c)The Joint Buyers shall be jointly and severally liable for all obligations, liabilities, and duties of the Buyer under the Contract; and<br>d)The Joint Buyer shall be entitled to exercise all rights, remedies, entitlements, and benefits granted to the Buyer under the Contract, in the same manner and to the same extent as if it were an original Party thereto.<br>&nbsp;&nbsp;&nbsp;&nbsp;**2. DURATION AND QUANTITY**<br>The Contract commences on January 27, 2021, and shall remain in force until completion of Buyer's and Seller's obligations herein.<br>Subject to the terms of this Contract, the Seller agrees to use its best efforts to produce and sell to Buyer, and Buyer agrees to buy 100% of the Gold Concentrate floatation and gravity production (hereinafter referred to as the "**Concentrate**"), for the period from January 27th, 2021 to December 31st, 2030, subject to a minimum delivery which is projected by Seller to be 80,000 WMT of Concentrate (minus 10%), as set out in Clause 3 and in accordance with the terms and conditions of this Contract. The parties intend that the Buyer shall buy such |

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| &nbsp;&nbsp;acuerdo con los términos y condiciones del presente Contrato. Las Partes tienen la intención de que la Compradora compre la cantidad de Concentrado según lo establecido en la Parte A del ANEXO 1 del presente Contrato, sujeto a lo establecido en el siguiente párrafo.<br>Las Partes aceptan y toman conocimiento que las cantidades establecidas en la Parte A del ANEXO 1 del presente Contrato son aproximadas y que la cantidad real de Concentrado en cada entrega puede sufrir variación. En la medida en que la cantidad de Concentrado en cualquier entrega puede exceder o puede ser excedida por la cantidad establecida en la Parte A del ANEXO 1 del presente Contrato (la "**Cantidad Contractual**" para esta entrega) por 10% más o menos que la Cantidad Contractual, se considerará que la Vendedora ha satisfecho por completo sus obligaciones bajo el presente Contrato.<br>Después del 31 de diciembre del 2030, el Contrato se extenderá automáticamente cada año, salvo que cualquiera de las partes notifique por escrito la terminación del Contrato con al menos 365 días antes de la fecha de terminación. Para mayor claridad, la fecha más temprana en la que puede darse una cancelación es el 31 de diciembre del 2030, y dicha notificación deberá entregarse a más tardar el 1 de enero del 2030, de lo contrario, el Contrato se extenderá automáticamente hasta el 31 de diciembre de 2031.<br>En la fecha efectiva de la cancelación, cualquier adelanto pendiente conforme el Contrato de Crédito de Concentrado, conforme a la Cláusula 8 [del presente] deberá ser reembolsado en su totalidad; de lo contrario, la Vendedora deberá continuar realizando entregas del 100% de la producción a la Compradora hasta que se hayan saldado por completo los montos pendientes.<br>&nbsp;&nbsp;&nbsp;&nbsp;**8. PAGO**<br>*El siguiente párrafo será añadido al final de esta Clausula:*<br>A partir del 5 de agosto de 2025, la Línea de Crédito Revolvente ya no estará disponible para su desembolso.<br>Al momento de la firma de esta Enmienda, o en fechas cercanas a la misma, la Compradora | &nbsp;&nbsp;quantities of the Concentrate as are set out in the Part A of Schedule 1 to this Contract, subject to the paragraph below.<br>The Parties hereto accept and acknowledge that the shipment quantities set out in Part A of Schedule 1 to this Contract are approximations and that the actual quantity of Concentrate in each shipment may vary therefrom. To the extent that the quantity of Concentrate in any shipment exceeds, or is exceeded by, the quantity set out in Part A of Schedule 1 to this Contract (the "**Target Quantity**" for that shipment) by 10% more or less of the Target Quantity, the Seller shall be deemed to have satisfied its obligations under this Contract in full.<br>After December 31st, 2030, the Contract shall automatically extend annually, unless written termination by either party is given no later than<br>365 days before the date of termination. For clarity, the earliest cancellation that may be given is December 31st, 2030, with cancellation notice to be provided no later than January 1st, 2030, otherwise the Contract will automatically extend until December 31st, 2031.<br>On the effective date of Cancellation, any outstanding advances under the Concentrate Credit Agreement under Clause 8 [herein] must be repaid in full, otherwise, the Seller must continue to make deliveries of 100% of production to the Buyer until such point as any outstanding amounts are settled.<br>&nbsp;&nbsp;&nbsp;&nbsp;**8. PAYMENT**<br>*The following paragraph shall be added to the end of this Clause:*<br>Effective 5th August 2025, the Revolving Credit Facility shall no longer be available for draw.<br>On or around signing of this Amendment, the Buyer shall provide a Concentrate Credit Facility |

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| &nbsp;&nbsp;deberá proporcionar una Línea de Crédito de Concentrado por un monto máximo de<br>$15,000,000.00 (Quince Millones de Dólares, moneda legal de los Estados Unidos de América), sujeto a los términos y condiciones del Acuerdo de Crédito de Concentrado. Los fondos de la Línea de Crédito de Concentrado se utilizarán primero para la liquidación total de cualquier saldo bajo la Línea de Crédito Revolvente y luego se pagarán a la Vendedora. La Compradora podrá realizar libremente asignaciones/deducciones de cualquier pago bajo el Contrato para la liquidación de cualquier saldo adeudado bajo el Acuerdo de Crédito de Concentrado. En caso de un posible conflicto con los términos del Contrato y el Acuerdo de Crédito de Concentrado, prevalecerán los términos del Acuerdo de Crédito de Concentrado.<br>&nbsp;&nbsp;&nbsp;&nbsp;**22. TERMINACIÓN**<br>*El siguiente párrafo será añadido al final de la Clausula original:*<br>Esta Cláusula deja sin efecto la Cláusula incorporada en la Enmienda 3 con fecha 17 de junio del 2024. En un plazo de 30 días calendario contados desde la ocurrencia de un cambio de control de la Vendedora entendiéndose por cambio de control la venta a un tercero de la mayoría de los activos o acciones de la Vendedora, su sociedad matriz beneficiaria, o cualquiera de sus subsidiarias materiales, la Vendedora o sus sucesores, a su elección, podrán dar por terminado el Contrato sin necesidad de cumplir con el período mínimo de notificación de cancelación previsto en la Cláusula 2 para entregas futuras, ni en la Cláusula 19, y pagando a la Compradora una penalidad por terminación equivalente a US$3 millones, así como cualquier monto adeudado y pendiente conforme al Contrato, la Línea de Crédito Revolvente previsto en la Cláusula 8, el cual deberá abonarse al momento de presentar la notificación.<br>La terminación no será efectiva hasta que dichos montos hayan sido pagados en su totalidad. Después de la entrega de la notificación y el pago de la penalidad, las entregas ya realizadas antes de la notificación deberán finalizarse conforme al curso regular del Contrato. | &nbsp;&nbsp;in an amount of up to $15,000,000.00 (Fifteen Million Dollars, legal currency of the United States of America), subject to the terms and conditions of the Concentrate Credit Agreement. Proceeds of the Concentrate Credit Facility shall be used for the full settlement of any balances under the Revolving Credit Facility first, and then shall be paid to the Seller. The Buyer can freely make allocations/deductions from any payments under the Contract towards the settlement of any due balances under the Concentrate Credit Agreement. In case of a potential conflict with the terms of the Contract and the Concentrate Credit Agreement, the terms of the Concentrate Credit Agreement shall prevail.<br>&nbsp;&nbsp;&nbsp;&nbsp;**22. TERMINATION**<br>*The following paragraph shall be added to the end of the original Clause:*<br>This Clause cancels the Clause added in Amendment 3 dated June 17th, 2024. Within 30 calendar days of the event of a change of control of the Seller, with a change of control being defined as a sale to a third party of the majority of the assets or shares of the Seller, its beneficial parent company, or any other material subsidiaries, the Seller or Seller's successors at their option may terminate the Contract without adhering to the minimum cancellation notice period in Clause 2 for future deliveries or Clause 19 and paying the Buyer a termination fee of US$3 million as well as any amounts due and outstanding under the Contract, the Revolving Credit Facility and in Clause 8, due on provision of the notice.<br>Termination shall not be effective until such time as these amounts are settled in full. After provision of the notice and payment of the fee, any completed deliveries that occurred before the notice shall be finalized under the regular course of the Contract. |

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| &nbsp;&nbsp;**Todos los otros términos y condiciones permanecen de acuerdo con el Contrato original con fecha 1 de febrero del 2021, el Acuerdo de Cesión, Asunción y Consentimiento del Contrato de Concentrado de Oro de fecha 23 de marzo de 2022, la Enmienda No. 1 con fecha 1 de agosto del 2023, la Enmienda No. 2 con fecha 6 de noviembre del 2023, la Enmienda No. 3 con fecha 17 de junio del 2024, la Enmienda No. 4 con fecha 11 de septiembre del 2024 y la Enmienda 5 con fecha 4 de abril del 2025, todos ellos referidos en conjunto como el Contrato.** | &nbsp;&nbsp;**All other terms and conditions to remain as per original Contract dated February 1**<sup>st</sup>**, 2021, Assignment, Assumption and Consent Agreement of Gold Concentrate Contract dated 23rd March 2022, the Amendment No.**<br>**1** **dated August 1**<sup>st</sup>**, 2023, the Amendment No.**<br>**2 dated November 6**<sup>th</sup>**, 2023, the Amendment No. 3 dated June 17**<sup>th</sup>**, 2024, the Amendment No. 4 dated September 11**<sup>th</sup>**, 2024 and the Amendment No. 5 dated April 4**<sup>th</sup>**, 2025, all being referred as the Contract.** |

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**<u>ESTANDO CONFORME CON SU CONTENIDO</u>**, las partes otorgan y firman la presente Enmienda en el día y año mencionado por escrito al inicio/ **<u>IN WITNESS WHEREOF</u>** the parties hereto have executed this Contract as of the day and year first above written.

En nombre y representación de la **Vendedora**/ For and on behalf of **Seller**: **DynaResource de México, S. A. De C. V.**

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| Firma/Signed by | /s/ Rohan Hazelton | /s/ Rohan Hazelton |
| Nombre/Name in Print: | Rohan Hazelton | Rohan Hazelton |
| Título/Title: | Presidente | President |
| Fecha/Date: | 22 ago 2025 | August 22, 2025 |

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En nombre y representación de la **Compradora**/ For and on behalf of **Buyer: MK METAL TRADING MEXICO S. A. DE C. V.**

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| Firma/Signed by | s/s Francisco Espinosa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**/s/ Ana Lilia Canuas**<br>|
| Nombre/Name in Print: | Francisco Espinosa | Ana Lilia Canuas |
| Título/Title: | Trader | CAO |
| Fecha/Date: | 22-Aug-2025 | 22-Aug-2025 |

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En nombre y representación de la **Compradora Conjunta**/ For and on behalf of **Joint Buyer: OCEAN PARTNERS UK LIMITED.**

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| Firma/Signed by | /s/ Neil Paulter | /s/ Sandeep Mittal |
| Nombre/Name in Print: | Neil Poulter | Sandeep Mittal |
| Título/Title: | Director | Director |
| Fecha/Date: | 22-Aug-2025 | 22-Aug-2025 |

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CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

**<u>ANEXO 2/SCHEDULE 2</u>**

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TÉRMINOS DE COMPRA**<br><u>Metales Pagables</u><br>Con respecto a cada tonelada métrica seca del Material (o prorrateado por cada fracción de tonelada métrica seca), la Compradora pagará lo siguiente:<br>Plata: La Compradora deberá pagar por el menor de (i) [\*\*\*] del contenido de plata por tms en el Concentrado según se determine de conformidad con este Contrato, y (ii) el número total de unidades de dicho contenido menos una deducción de cincuenta (50) grs. por tms, a un precio igual al precio de cotización diaria de US Dollars LBMA spot, según lo publique www.lbma.org.uk (o cualquier otro sitio web que pueda reemplazar el sitio web de LBMA en ese servicio, en opinión de La Compradora) promediado sobre el de Cotización de conformidad con la Cláusula 7.1 de este Contrato.<br>Oro: La Compradora pagará según la siguiente tabla para el contenido del oro por tonelada métrica seca de Concentrado, sujeto a una deducción mínima de 2 (dos) gramos por tonelada métrica seca según lo determinado de conformidad con el presente Contrato, al precio igual a la media de las cotizaciones diarias de la mañana y de la tarde del London Bullion Market Association (LBMA) US$ para el Oro, tal como se publica en www.lbma.org.uk (o cualquier otro sitio web que pueda reemplazar el sitio web de la LBMA en ese servicio, en<br>opinión de La Compradora), promediado durante el Periodo de Cotizaciones. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASE TERMS**<br><u>Metal Payments</u><br>In respect of each dry metric ton of Material (or pro rata for each fraction of a dry metric ton), the Buyer shall pay the following:<br>Silver: The Buyer shall pay for the lower of (i) [\*\*\*] of the silver content per dmt in the Concentrate as determined in accordance with this Contract and<br>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the total number of units of such content less a deduction of fifty (50) grams per dmt, at a price equal to the daily US Dollars LBMA spot quotation price for silver, as published by www.lbma.org.uk (or such other website that may replace the LBMA website on that service, in the opinion of Buyer), averaged over the Quotational Period as per Clause 7.1 of this Contract.<br>Gold: The Buyer shall pay as per the below table for the gold content per dmt of Concentrate, subject to a minimum deduction of 2 (two) grams per dry metric ton as determined in accordance with this Contract, at a price equal to the mean of the daily London Bullion Market Association (LBMA) US$ morning and afternoon quotations for gold, as published by www.lbma.org.uk (or such other website that may replace the LBMA website on that service, in the opinion of Buyer), averaged over the Quotational Period. |

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| Year / Content | Au <=35gr | &nbsp;&nbsp;&nbsp;&nbsp;Au > 35 &<br><= 45gr | &nbsp;&nbsp;&nbsp;&nbsp;Au > 45 &<br><= 60gr | &nbsp;&nbsp;&nbsp;&nbsp;Au > 60 &<br>< = 75gr | &nbsp;&nbsp;&nbsp;&nbsp;Au > 75 &<br><= 90gr | &nbsp;&nbsp;&nbsp;&nbsp;Au > 90 &<br><= 150gr | Au >150gr |
| 2021 to June<br>2024 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| July 2024 to<br>December 2025 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2026 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2027 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2028 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2029 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2030 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

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## Exhibit 10.2

## OCEAN PARTNERS UK LIMITED CREDIT FACILITY AGREEMENT
This Credit Facility Agreement (the "<u>Agreement</u>") is entered into by and among the parties set forth below as of August 22, 2025. This Agreement shall supersede all previous agreements among the parties with respect to the subject matter hereof.

## CHAPTER I. TERMS AND CONDITIONS

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Lender:** | &nbsp;&nbsp;Ocean Partners UK Limited ("<u>Lender</u>"), a corporation duly organized and validly existing under the laws of the United Kingdom with registered number 5171451. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Borrower:** | &nbsp;&nbsp;Dynaresource de Mexico S.A. de C.V. ("<u>Borrower</u>"), a company operating in, organized and validly existing under the laws of Mexico. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Facility:** | &nbsp;&nbsp;The Lender shall make available to the Borrower a credit facility (the "<u>Facility</u>") in an amount of up to $15,000,000.00 (Fifteen Million Dollars, legal currency of the United States of America, also known as the "<u>Facility Amount</u>"), subject to the terms and conditions of this Agreement.<br>Throughout this Agreement, any references to "<u>Dollar</u>" and "<u>$</u>" shall mean the legal currency of the United States of America. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Purpose:** | &nbsp;&nbsp;For repayment of existing advances to the Lender in full, expansion capital, working capital and general corporate purposes. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Availability:** | &nbsp;&nbsp;The Lender shall make a sole draw or reimbursement to the Borrower in a total amount not exceeding the Facility Amount (the "<u>Draw</u>"), following satisfaction of all Conditions Precedent (as defined below), including the Borrower delivering to the Lender a completed Draw request (a "<u>Draw</u> <u>Request</u>") each in a form and substance acceptable to the Lender. The Draw will be advanced by the Lender to the Borrower within three Business Days of receipt by the Lender<br>of the Draw Request. |

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. Maturity Date:** | &nbsp;&nbsp;The Facility shall mature on the earlier of: (a) 24 full calendar months; and (b) the date on which this Agreement is terminated in accordance with the terms hereof (the "<u>Maturity Date</u>"). |

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. Mandatory Repayment:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall repay the principal amount in accordance with the following schedule, with repayment calculated from the date of drawing the Draw:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Following a grace period of six full calendar months from the Draw, the Facility Amount drawn shall be repaid in accordance with the following schedule:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The Facility Amount drawn shall be repaid in 18 equal monthly installments, payable in Months 7 through 24 after the first Draw.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The repayments shall be made against deliveries of concentrate (the "Concentrates") as set out in the terms of the Concentrate Agreements (defined below).<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)The Lender (or any group companies of the Lender), at its sole discretion, may elect to deduct the full or partial repayment amounts from the Borrower's obligations to the Lender related to the delivery of Concentrates (each, a "Lender Concentrates Payable"). Any such deduction shall be credited against the outstanding balance of the Facility.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)If the Lender Concentrates Payable are not sufficient to cover a monthly principal repayment plus interest, any shortfall shall be repaid immediately by the Borrower in cash, no later than the last Business Day of the month any principal amount is owed; and **a**ny unpaid balances shall be paid in cash on the Maturity Date.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)The records of the receipt of payment by the Lender's<br>nominated bank shall be used to determine the exact date of any principal repayment. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. Payment of Interest:** | &nbsp;&nbsp;Borrower will pay to Lender the Facility Interest each calendar month following the accrual date (each, an "<u>Interest Payment Date</u>"), as follows:<br>by setoff against any Lender Concentrates Payable owing on such Interest Payment Date; and in cash, to the extent that on such Interest Payment Date the Facility Interest plus principal payable exceeds the Lender Concentrates Payable, |

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Facility Interest:** | &nbsp;&nbsp;Interest on outstanding amounts under the Facility (the "<u>Facility Interest</u>") shall accrue daily commencing on the date that the Draw is advanced, and thereafter shall be payable monthly in arrears by the Borrower on the last Business Day of the next month at the rate of 6.75% per annum + 3 Month SOFR Rate (the "<u>Facility Interest Rate</u>").<br>For purposes of this Agreement, "<u>3 Month SOFR Rate</u>" shall refer to the rate published by the CME Group, representing the forward-looking cost of borrowing cash overnight collateralized by U.S. Treasury securities, as determined based on actual transactions in the repurchase agreement market. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. Default Interest:** | &nbsp;&nbsp;Upon the occurrence and during the continuation of any Event of Default (as defined below), a rate of six percent (6.0%) per annum in excess of the Facility Interest Rate otherwise in effect, as it may vary from time to time, accrued on a daily basis and computed on the basis of a 360 day year over the full remaining Facility balance including principal and any overdue interest. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K. Voluntary Prepayment Option:** | &nbsp;&nbsp;The Borrower may prepay any or all of the outstanding amounts owing under the Facility at any time with 14 (fourteen) days notice. Any prepayment will be subject to 1% flat fee payable over the amount prepaid. In the case of a partial prepayment, each mandatory payment as set out in Chapter I, Section G hereof will remain the same until the Facility Amount is repaid in full. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L. Fee:** | There will be no facility fee payable by the Borrower. However, the Borrower shall pay, on demand, all documented reasonable legal and other professional costs and expenses incurred by the Lender in connection with the negotiation, preparation, signing, administration, and enforcement of this Agreement and any related documents, up to an aggregate amount of $25,000.00 (twenty-five thousand Dollars, legal currency of the United States of America). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**M. Intentionally Blank** | Intentionally Blank |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**N. Intentionally Blank** | Intentionally Blank |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**O. Form of Payment:** | &nbsp;&nbsp;Each payment to the Lender hereunder will be paid, to the extent possible and except as explicitly set out herein, by set off against the Lender Concentrates Payable (if any) at the time each such payment is due, and otherwise will be paid by the Borrower to such account as the Lender shall specify. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**P. Address of Lender:** | &nbsp;&nbsp;Ocean Partners UK Limited The Pearce Building,<br>Third Floor, West Street, Maidenhead, Berkshire, SL6 1RL, UK |

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| | |
|:---|:---|
|  | &nbsp;&nbsp;e-mail : \*\*\* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Q. Address and facsimile number of Borrower, for notices under this**<br>**agreement:** | &nbsp;&nbsp;Dynaresource de Mexico S.A. de C.V. Calle Cedro Number 303<br>Col. Alameda<br>Mazatlan, Sinaloa Mexico Zip Code 82123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**R. Address and facsimile number of Lender, for notices under this agreement:** | &nbsp;&nbsp;Ocean Partners UK Limited The Pearce Building<br>Third Floor, West Street Maidenhead, Berkshire SL6 1RL<br>United Kingdom |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**S. Closing Date** | &nbsp;&nbsp;Means the date in which the Conditions Precedent under this Agreement have been fully satisfied, to Lender's satisfaction. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**T. Property** | &nbsp;&nbsp;Means the San José de Gracia Project Property |

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## CHAPTER II CLAUSES
**<u>ARTICLE I</u>**

**<u>Amount, Cash Payments, Draws and Availability Period</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **<u>Amount of the Credit</u>.** Lender hereby opens the Facility in favour of the Borrower pursuant to and upon the terms and conditions set forth in this Agreement, in the Facility Amount set forth in Chapter I, Section C hereof, against Concentrates to be delivered to the Lender and purchased by it under the Concentrate Agreements (defined below). The purpose of the Facility is to repayment of existing advances to the Lender, expansion capital, working capital and general corporate purposes at the mining operations, and the proceeds of the Facility shall be applied accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **<u>Draws</u>.**, An advance by way of a Draw under the Facility shall be made available as provided in Chapter I, Section E hereof, as requested by Borrower, provided all Conditions Precedent set forth herein have been satisfied to Lender's satisfaction. Upon the Lender's receipt of a written Draw Request, appropriately completed and accompanied by the documents referred to therein, Lender is authorized by Borrower to advance each Draw as provided in Chapter I, Section E hereof.

## <u>ARTICLE II</u> 
**<u>Fees and Reimbursement</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **<u>Fees, Expenses and Warrants</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Borrower shall pay to Lender the Fee as defined and set forth in Chapter I, Section

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **<u>Repayment</u>.** Borrower agrees to repay Lender all amounts owing under the Facility on the dates and under the terms set forth in Chapter I hereof. Amounts repaid by the Borrower hereunder may not be re-borrowed.

## <u>ARTICLE III</u> 
**<u>Conditions Precedent. Representations, Warranties, Covenants</u> <u>and Post-closing Conditions</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **<u>Conditions Precedent</u>.** Without limiting any of the terms of this Agreement, the Lender shall not be required to advance each Draw unless and until each of the following conditions (the "<u>Conditions Precedent</u>") has been fulfilled in form and substance acceptable to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Borrower shall have executed and delivered to the Lender this Agreement and if applicable pursuant to the terms of this Agreement, any security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The Borrower as seller and the Lender as buyer shall have executed and delivered an exclusive commercial agreement for the extension of the offtake agreement through December 31, 2030, in substantially the form of the agreement attached hereto as Annex "A" (the "<u>Concentrate Agreement</u>"), and in any case in a form acceptable to the Lender and/or Lender's bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Except as disclosed in the Borrower's public filings, all representations and warranties by the Borrower in this Agreement are true and correct on the date of the Draw Request and remain true and correct on the date of the Draw, and that no Event of Default under this Agreement shall

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have occurred;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The Lender and the Borrower shall each have received approval of its Board of Directors with respect to the transactions contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)No law, regulation, ruling or other action shall exist or have occurred which would prevent the Lender or the Borrower from fulfilling their respective obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)The Lender and any external parties that it engages for such purposes shall have satisfactorily completed all due diligence as the Lender deems necessary or advisable in connection with this Agreement and the matters and transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)Any issues or conditions that may arise from the Lender or its agents conducting its due diligence shall have been addressed or resolved to the satisfaction of the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)The Lender shall have received, in form and substance acceptable to the Lender in its discretion, a guarantee (the "Guarantee") of the Lender's obligations by Dynaresource Inc. (the "Guarantor").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)The Lender shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)verification certificates and an extract of a resolution of the board of directors of the Borrower, and the Guarantor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)approving the terms of, and the transactions contemplated by, the Transaction Documents to which it is a party and resolving that it execute, deliver and perform the Transaction Documents to which is it a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)authorizing a specified person or persons to execute the Transaction Documents to which it is a party on its behalf, or referencing the existing attorneys-in-fact with sufficient powers of attorney that are authorized to execute the Transaction Documents to which it is a party on its behalf and providing evidence of such powers of attorney;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a specimen of the signature each of person authorized by the resolution referred to in paragraph (14)(a) above in relation to the Transaction Documents and related documents.

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For the purposes of this Agreement, Transaction Documents shall mean this agreement, the Concentrate Agreements, the Security and the Guarantee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)The Borrower or its affiliates shall not be in default hereunder or under the Concentrate Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **<u>Representations, Warranties and Covenants</u>**

In order to induce the Lender to enter into this Agreement and to make the advance, the Borrower hereby represents, warrants and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Borrower is duly organized and validly existing under the laws of Mexico;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The Guarantor is duly organized and validly existing under the laws of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The Borrower and the Guarantor have full legal right to execute, deliver and perform this Agreement and have taken all necessary corporate actions to authorize the execution, delivery and performance of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)All consents, licenses, authorizations and corporate approvals necessary to make all required payments under this Agreement, or exemptions by any governmental authority which are necessary or advisable (a) for the execution, delivery, performance and observance by the Borrower of this Agreement, and (b) for the validity, binding effect and enforceability of this Agreement, have been obtained and are in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)The execution, delivery and performance or observance by the Borrower of the terms of, and consummation by the Borrower of the transactions contemplated by this Agreement, to the best of its knowledge, does not and will not conflict with or result in a breach or violation of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any law, ordinance, decree, regulation or other requirement; or (ii) any order, writ, injunction, judgment or decree of any court or other tribunal. Further, the execution, delivery and performance or observance by the Borrower of the terms of, and consummation by the Borrower of the transactions contemplated by this Agreement does not and will not conflict with or result in a breach of any agreement or instrument to which the Borrower is a party, or by which it or any of it revenues, properties or assets may be bound, or result in the creation or imposition of any lien upon any of the revenues, properties or assets of the Borrower pursuant to any such agreement or instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)This Agreement has been duly executed and delivered by the Borrower and constitutes obligations of the Borrower which are legal, valid and binding upon the Borrower and enforceable against the Borrower in accordance with their respective terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)The attorney[s]-in-fact of the Borrower [has/have] sufficient powers and authority to execute and deliver this Agreement, powers and authority that [has/have] not been revoked or limited in any manner whatsoever to this date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)No legal proceedings are pending or, to the best of the Borrower's knowledge and belief, threatened before any court or governmental authority which might materially and adversely affect the Borrower's or Guarantor's financial condition, business or operations, restrain or enjoin or have the effect of restraining or enjoining the Borrower's performance or observance of the terms and conditions or in any other manner question the validity, binding effect or enforceability of this Agreement;

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(9)The Borrower and Guarantor. shall pay all taxes as they become due;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)The Borrower and Guarantor, shall comply with all laws and material contractual obligations including but not limited to anti-corruption, anti-money laundering, anti-slavery and sanctions laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)The Borrower and Guarantor shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Borrower shall maintain, with financially sound and reputable insurers, insurance coverage with respect to its properties and business against any casualties and contingencies, of any types, on such terms, and in such amounts as is customary for companies of established reputation engaged in the same or a similar business and operating in the same or similar locations, and in any event, in accordance with the practices of a prudent operator in the mining industry in Mexico.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)shall not do anything or omit to do anything that would cause an insurance claim to be disallowed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)shall maintain the Property and its associated facilities in good working order and condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)The Borrower and Guarantor shall not abandon the Property and shall maintain all government authorizations, licenses and permits required to operate the Property in a normal operating fashion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)The Borrower and Guarantor will maintain accounting records in accordance with the public company accounting standards in effect from time to time in Mexico consistently applied throughout the accounting periods involved; promptly furnish the Lender with such information concerning its business affairs and financial condition as the Lender may reasonably request; permit representatives of the Lender to visit and inspect the Property and examine any of the books and records of the Borrower at any reasonable time and as often as the Lender may reasonably desire;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)The Borrower and Guarantor shall provide the Lender the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Quarterly Reports: as soon as they become available, but in any event within 60 days of the end of its four fiscal quarters: (i) unaudited consolidated financial statements (including a balance sheet, statements of income, retained earnings and changes in financial position), (ii) a compliance certificate demonstrating compliance with the Facility Agreement including financial covenants and list of any new material subsidiaries, and total hedging liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Annual Reports: as soon as they become available, but in any event within 90 days of the end of its fiscal year: audited annual consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Annual Budget, Mine Plan, and Reserve Statement: as soon as they become available, but in any event within 90 days of the end of its fiscal year: (i) a budget for that fiscal year, prepared on a monthly basis, consisting of, among other things, a capital expenditure forecast, balance sheet projections, income and cash flow projections, and statements of changes in financial position for each fiscal quarter in that fiscal year, prepared on a consolidated basis, (ii) an annual life of mine plan contained in a financial model prepared by the Borrower, (iii) NI 43-101 qualified mineral reserve statement, or equivalent such as SK-1300 mineral reserve estimate, for its respective mining properties, if updated from any prior such statement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Monthly Operating Reports: as soon as they become available, but in any event within

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45 days of the end of each calendar month, internally prepared operations report including production values, sales values, pricing, royalties and operating costs and comments on any deviation from expected results, as well as updates of any variance between actual and budgeted capital expenditures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Promptly such other information regarding financial condition, business and operations of Borrower and Guarantor as the Lender may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)The Borrower or Guarantor shall not (and shall cause its direct and indirect subsidiaries not to) pledge, encumber or otherwise grant any charge or security interest in and to any of its assets or property (in each case a "<u>Charge</u>") while this Agreement is in effect, except for Charges disclosed to the Lender and consented to by the Lender in advance, in the Lender's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)The Borrower or Guarantor shall not sell, lease or otherwise dispose of any material assets worth greater than $5,000,000.00 (five million Dollars, legal currency of the United States of America), in a given 12 month period excluding for obsolete or damaged assets (at arm's length and for fair market value) or for product in the ordinary course of business, without the consent of the Lender not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)Borrower shall not declare and pay any dividends or distributions without the express consent of the Lender not to be unreasonably withheld and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)The Borrower and Guarantor are solvent (which for this purpose shall mean that the fair market value of its tangible property is in excess of the total amount of its debts and that is able to pay, and is currently paying, its debts as they come due, provided however, that the term "debts" shall be understood as any amounts or trade payables (other than accrued liabilities not yet due, and any tax liabilities being disputed, which shall not be comprised within the definition of such term), by the Borrower that are due and not yet paid (but not in default or breach of any type)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Post-closing Conditions**

The Borrower shall, within sixty (60) Business Days following the Closing Date (or such later date as the Lender may agree in writing), deliver to the Lender duly executed and enforceable versions of the security interests over the assets and shares of the Borrower, each in form and substance satisfactory to the Lender. Failure to deliver such documents within the specified period shall constitute an Event of Default under this Agreement.

## ARTICLE IV
**<u>Suspension and Cancellation; Events of Default</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **<u>Events of Default</u>.** If any of the following events (each an "<u>Event of Default</u>") has occurred and is continuing after the relevant cure period, if any, and not otherwise waived at any time by the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)A failure by the Borrower to pay when due any amount owing under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Any representation or warranty made by the Borrower in this Agreement or in connection herewith, or any statement made in any certificate, report or financial information

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furnished by the Borrower to the Lender is determined by the Lender to have been false or misleading in any material respect when made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)A failure by the Borrower or Guarantor to perform or comply with any of the covenants or provisions set forth in the Transaction Documents (exclusive of any events specified as an Event of Default in any other subparagraph of this paragraph A), which failure remains unremedied for a period of 30 days after the earlier of the Borrower becoming aware of that failure and written notice thereof being given to the Borrower by the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The Borrower shall default in connection with the Concentrate Agreement or any other material agreement with Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)The Borrower or Guarantor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is unable or admits inability to pay its debts as they fall due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)is deemed to, or is declared to, by competent authority, to be unable to pay its debts under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)suspends or threatens to suspend making payments on any of its debts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)The value of the assets of the Borrower or Guarantor, respectively, is less than its liabilities (taking into account contingent and prospective liabilities); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)The Borrower or Guarantor sell the Property or there is a change of control of the Borrower or Guarantor with a change of control being defined as the acquisition or increase and the corresponding disposal or decrease of direct or indirect control of the Property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)A moratorium is declared in respect of any indebtedness of the Borrower or Guarantor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)Any corporate action, legal proceedings or other procedure or step is taken in relation to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganization (by way of voluntary arrangement, scheme of arrangement or otherwise) of the Borrower or Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a composition, compromise, assignment or arrangement with any creditor of the Borrower or Guarantor for the reason of avoiding financial difficulty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the appointment of a liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of the Borrower, Guarantor or any of its assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)enforcement of any Security over any assets of the Borrower or Guarantor, or

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any analogous procedure or step is taken in any jurisdiction; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of the Borrower or any Guarantor and is not discharged within 14 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)A Transaction Document is terminated or the Borrower or Guarantor contends that a Transaction Document is not a legal, valid and binding obligation of the Borrower or Guarantor, enforceable in accordance with the terms thereof or in any way ceases to provide to the Lender the rights, privileges, benefits, power, and remedies intended to be conferred hereby, or the Borrower or Guarantor repudiate its obligations hereunder,

Then the Lender may immediately cancel its commitments under this Agreement and the Lender may immediately demand repayment by the Borrower and the Guarantor of all amounts then outstanding under the Facility, including accrued interest thereon to the date of payment, and all fees and other amounts owing under this Agreement.

If an Event of Default has occurred, and is continuing after the relevant cure period, or not otherwise waived by the Lender, the Lender may offset any other amounts owing to the Borrower under the Concentrate Agreements or any other agreement.

## <u>ARTICLE V</u> 
**<u>Jurisdiction</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.**<u>Submission to Jurisdiction</u>.** The courts of England have non-exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a "Dispute").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.The parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to this contrary. Therefore, the parties hereby irrevocably agree to submit to the courts of England to settle any Disputes over this Agreement, and hereby waive any right to bring suit in any other jurisdiction, venue or court that they may be entitled to by virtue of their current or future domicile, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.This Articles V is for the benefit of the Lender only. As a result, the Lender shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions.

## <u>ARTICLE VI</u> 
**<u>Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **<u>Payments</u>.** All payments hereunder, other than those made by way of set-off against Lender Concentrates Payable as provided herein, shall be made in freely transferable and immediately available Dollars at the office of the Lender as set forth in Chapter I, Section O of this Agreement, and shall be free and clear of any lien, encumbrance, set-off or counterclaim whatsoever.

If any payment hereunder becomes due and payable on a day which is not a Business Day (as defined below), then such payment shall be extended to the next succeeding Business Day and any applicable Facility Interest (including any interest at the default rate set out in Chapter I, Section J)

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shall be payable thereon during such extension. All amounts received hereunder by the Lender shall be applied in the manner and order of priority determined by the Lender in its sole discretion, on the understanding that all payments received shall be applied first to the Lender's expenses, then to accrued and unpaid interest, then to past due principal and then to principal. Any prepayments of principal shall be applied to unpaid principal in inverse order of maturity.

The agreements in this Article VI, Section B and any indemnities contained in this Agreement shall survive termination of this Agreement and all other amounts due hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **<u>Disclaimer</u>.** The Lender shall not be responsible in any way for the performance of any contract or obligation related to the Property that will affect the obligations of Borrower or Guarantor under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **<u>Governing Law</u>.** This Agreement shall be deemed to be a contract made under the laws of England and for all purposes shall be governed and construed in accordance with suchlaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **<u>Communications</u>.** All notices or other communications required or permitted to be given hereunder shall be delivered by hand or sent by facsimile or sent, postage prepaid, by registered, certified or express mail or overnight courier service at the address set forth in Chapter I of this Agreement or to such other address as may be designated by a party by notice given in accordance with this paragraph, and shall be deemed given when so delivered by hand or if mailed, and if by facsimile, on the date the transmission is made, which shall be confirmed in writing. [

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **<u>Business Day</u>.** When used in this Agreement, "Business Day" means any day on which dealings in Dollar deposits are carried on in the commercial banks in the United States of America, the United Mexican States and United Kingdom are open for domestic business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **<u>Assignment</u>.** The Borrower hereby expressly authorizes the Lender to sell, assign, transfer, pledge, negotiate, grant participations in or otherwise dispose of all or any part of the Borrower's indebtedness under this Agreement, even before the due date of the respective obligation in favor of any party, which party shall enjoy all the rights and privileges of the Lender under this Agreement. The Lender shall promptly before or after the fact; notify of such sale, assignment, transfer, pledge, negotiation, participation grant, or disposition to the Borrower. The Borrower shall, at the request of the Lender, execute and deliver to the Lender or to any party that the Lender may designate any such further instruments as may be necessary or desirable to give full force and effect to the disposition by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **<u>Entire Agreement</u>.** This Agreement sets forth the entire agreement among the Borrower and the Lender and supersedes any prior oral or written agreement or understanding, including without limitation any credit agreement previously executed with respect to the subject matter hereof.

In order to be effective hereunder, any waiver or amendment of any provision hereof must be in writing and signed by the party to be charged with the effect thereof.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereof execute this Agreement as of the date above written.

**Dynaresource de Mexico S.A. de C.V. OCEAN PARTNERS UK LIMITED**

<u>By: /s/ Rohan Hazelton</u> <u>By: /s/ Zekeriya Turhal</u>

Name: Rohan Hazelton Name: Zekeriya Turhal

Title: President Title: Director

ADDRESS: ADDRESS:

Calle Cedro Number 303 Col. Alameda

Mazatlan, Sinaloa Mexico Zip Code 82123

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## Exhibit 10.3

**HAYES BOONE** 

**22 August 2025**

**DYNARESOURCE, INC.**

**OCEAN PARTNERS UK LIMITED**

**and**

**DYNARESOURCE DE MEXICO S.A. DE C.V.**

**PARENT COMPANY GUARANTEE**

**in respect of the credit facility agreement made available by Ocean Partners UK Limited to DynaResource de Mexico SA de CV**

****

<br> **CONTENTS**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Interpretation3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Performance guarantee and indemnity4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Lender protections4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Variation to the Agreements5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Conditional discharge5

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Payments6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Costs6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Guarantor representations and warranties6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Assignment7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.Further assurance7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.Severance7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.Variation7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.Waiver8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.Third party rights8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.Rights and remedies8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.Consequences of discharge8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.Notices8

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.Service of Process9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.Entire agreement10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.Counterparts10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.Governing law10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.Jurisdiction10

This **DEED** is dated **22 August 2025 PARTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **DYNARESOURCE, INC.,** a corporation incorporated in the State of Delaware whose principal place of business is at 222 W. Las Colinas Blvd., Suite 1910 North Tower; Irving, Texas (the "**Guarantor**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **DYNARESOURCE DE MEXICO S.A. DE C.V.**, a company organised and validly existing under the laws of Mexico whose principal place of business is Calle Cedro Number 303 Col. Alameda Mazatlan, Sinaloa Mexico Zip Code 82123 (the "**Borrower**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **OCEAN PARTNERS UK LIMITED** a private limited company incorporated and registered in England and Wales with company number 5171451 whose registered office is at The Pearce Building, West Street, Maidenhead, England, SL6 1RL (the "**Lender**").

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**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.The Guarantor is the sole legal and beneficial owner of the Borrower (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.The Lender has made available to the Borrower (as defined below) a credit facility in an amount of up to US$15,000,000.00 (Fifteen Million Dollars, legal currency of the United States of America, pursuant to the terms of the Credit Facility Agreement (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.As a condition precedent to the Credit Facility Agreement (as defined below), the Guarantor has agreed to guarantee the due performance of the Credit Facility Agreement (as defined below) by the Borrower.

**AGREED TERMS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Interpretation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The defined terms of the Credit Facility Agreement (as defined below) shall apply to this Deed as if set out in this Deed and in addition the following shall also apply:

---

| | |
|:---|:---|
| "**Guaranteed Obligations**" | &nbsp;&nbsp;means all of the present and future obligations of the Borrower under or in connection with the Credit Facility Agreement if and when they become due for performance in accordance with their respective terms; and |
| **"Credit Facility Agreement"** | &nbsp;&nbsp;means the credit facility agreement dated the date hereof between the Lender and the Borrower in respect of the acquisition of Concentrates. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The rules of interpretation set out in the Credit Facility Agreement shall apply to this Deed as if set out in this Deed and in addition the following shall also apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Clause headings shall not affect the interpretation of this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)A person includes a natural person, corporate or unincorporated body (whether or not having separate legal personality).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Unless the context otherwise requires, words in the singular shall include the plural and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)A reference to legislation or a legislative provision:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is a reference to it as amended, extended or re-enacted from time to time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)shall include all subordinate legislation made from time to time under that legislation or legislative provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)A reference to "in writing" or "written" includes email but not fax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Any obligation on a party not to do something includes an obligation not to allow that thing to be done.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)A reference to this Deed or to any other agreement or document referred to in this Deed is a reference to this Deed or such other agreement or document as varied or novated (in each case, other than in breach of the provisions of this Deed) from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)A reference to any party shall include that party's personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)Any words following the terms including, include, in particular, for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Performance guarantee and indemnity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)In consideration of the Lender entering into the Credit Facility Agreement, the Guarantor guarantees to the Lender (and its successors, transferees and assigns) the due and punctual performance of all of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The Guarantor as principal obligor and as a separate and independent obligation and liability from its obligations and liabilities under clause 2.1 agrees to indemnify the Lender and keep the Lender indemnified in full and on demand from and against all and any losses, costs and expenses suffered or incurred by the Lender arising out of, or in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)any failure of the Borrower to perform or discharge the Guaranteed Obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)any of the Guaranteed Obligations being or becoming totally or partially unenforceable by reason of illegality, incapacity, lack or exceeding of powers, ineffectiveness of execution or any other matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Lender protections

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)This Deed is a continuing guarantee which shall remain in full force and effect until all the Guaranteed Obligations have been satisfied or performed in full, notwithstanding any intermediate

satisfaction or performance of the Guaranteed Obligations by the Borrower, the Guarantor or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The liability of the Guarantor under this Deed shall not be reduced, discharged or otherwise adversely affected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)any act, omission, matter or thing which would not have discharged or affected the liability of the Guarantor had it been a principal obligor instead of a guarantor; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)any other act or omission except an express written release by deed of the Guarantor by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)The Guarantor waives any right it may have to require the Lender (or any trustee or agent on its

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behalf) to proceed against or enforce any other right or claim for payment against any person before claiming from the Guarantor under this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Until all amounts which may be or become payable by the Borrower under or in connection with this Deed have been irrevocably paid in full, and unless the Lender otherwise directs in writing, the Guarantor shall not exercise any security or other rights which it may have by reason of performance by it of its obligations under this Deed, whether such rights arise by way of set-off, counterclaim, subrogation, indemnity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)The guarantee and indemnity effected by this Deed is in addition to and shall not affect nor be affected by or merge with any other judgment, security, right or remedy obtained or held by the Lender from time to time in respect of the discharge and performance of the Guaranteed Obligations by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Variation to the Agreements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Guarantor and the Borrower hereby agree and confirm that they will make any and all variations or amendments to the Credit Facility Agreement reasonably required by the Lender from time to time to give full effect to this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The Borrower hereby agrees and confirms that it will observe the due and punctual performance of the Guaranteed Obligations as so amended or varied in accordance with the terms of this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)The Guarantor hereby agrees and confirms that the guarantee and indemnity granted by it pursuant to this Deed shall automatically extend to the due and punctual performance of the Guaranteed Obligations as so amended, varied or extended from time to time, no matter how fundamental such amendments. variations or extensions are.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Conditional discharge

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Any release, discharge or settlement between the Guarantor and the Lender in relation to this Deed shall be deemed conditional on no right, security, disposition or payment to the Lender by the

Guarantor, the Borrower or any other person in respect of the Guaranteed Obligations being avoided, set aside, reduced or ordered to be refunded pursuant to any enactment or law relating to breach of duty by any person, insolvency, bankruptcy, liquidation, winding up, administration, protection from creditors generally, receivership or for any other reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)If any such right, security, disposition or payment is avoided, set aside, reduced or ordered to be refunded, the Lender shall be entitled subsequently to enforce this Deed against the Guarantor as if the release, discharge or settlement referred to in clause 5.1 had not occurred and any such right, security, disposition or payment had not been given or made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Payments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All sums payable by the Guarantor under this Deed shall be paid in full to the Lender in the currency required under the Credit Facility Agreement, free and clear of any deductions or withholdings of any kind, except for those required by any law or regulation binding on the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)If the Guarantor is required by law or regulation to make any deduction or withholding from any payment under this Deed, it shall also pay whatever additional amount is necessary to ensure that the Lender receives the full amount otherwise receivable had there been no deduction or withholding obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)If the Guarantor fails to make any payment due to the Lender under this Deed by the due date for payment, then the Guarantor shall pay default interest on the overdue amount at the rate of rate of six percent 6.00% per annum in excess of the Facility Interest Rate. Such default interest shall accrue on a daily basis from the due date until the date of actual payment of the overdue amount, whether before or after judgment. The Guarantor shall pay the default interest together with the overdue amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Costs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Guarantor shall on a full indemnity basis pay to the Lender on demand the amount of all costs and expenses (including reasonable legal and out-of-pocket expenses and any value added tax on those costs and expenses) which the Lender incurs in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)the preservation, exercise or enforcement of any rights under or in connection with this Deed or any attempt to do so; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)any discharge or release of this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Guarantor representations and warranties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Guarantor represents and warrants to the Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)it is a duly incorporated corporation validly existing under the law of its jurisdiction of incorporation and it has the power to own its assets and carry on its business as it is being conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)it has all requisite power and authority, and has taken all necessary action, to enable it to enter into, deliver and perform this Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)its obligations under this Deed shall, when executed, constitute legal, valid, and binding obligations enforceable in accordance with the terms of this Deed, except as limited by applicable bankruptcy, insolvency, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)it does not require the consent, approval or authority of any other person to enter into or

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perform its obligations under this Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)its entry into and performance of its obligations under this Deed will not constitute any breach of or default under any contractual, governmental or public obligation binding on it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)it is not engaged in any litigation or arbitration proceedings which might affect its capacity or ability to perform its obligations under this Deed and to the best of its knowledge no such legal or arbitration proceedings have been threatened or are pending against it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Assignment

The Lender may assign its benefits under this Deed to any person by notice in writing to the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.Further assurance

Each party shall (at its own expense) promptly execute and deliver all such documents, and take all such actions, or procure the execution and delivery of all such documents and taking of all such actions as are required to give full effect to this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.Severance

If any provision or part-provision of this Deed is or becomes invalid, illegal or unenforceable, it shall be deemed deleted, but that shall not affect the validity and enforceability of the rest of this Deed and if any such provision or part-provision is deemed so deleted, the parties shall negotiate in good faith to agree a replacement provision that, to the greatest extent possible, achieves the intended commercial result of the original provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.Variation

No variation of this Deed shall be effective unless it is in writing and signed by the parties or their authorised representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.Waiver

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)A waiver of any right or remedy under this Deed or by law is only effective if given in writing and shall not be deemed a waiver of any subsequent breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)A failure or delay by a party to exercise any right or remedy provided under this Deed or by law shall not constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict any further exercise of that or any other right or remedy. No single or partial exercise of any right or remedy provided under this Deed or by law shall prevent or restrict the further exercise of that or

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any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)A party that waives a right or remedy provided under this Deed or by law in relation to one party, or takes or fails to take any action against that party, does not affect its rights in relation to any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.Third party rights

Except where it expressly states otherwise, this Deed does not give rise to any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.Rights and remedies

The rights and remedies provided under this Deed are in addition to, and not exclusive of, any rights or remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.Consequences of discharge

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Any provision of this Deed that expressly or by implication is intended to continue in force on or after discharge of this Deed shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Discharge of this <u>Deed</u> shall not affect any rights, remedies, obligations or liabilities of the parties that have accrued up to the date of discharge, including the right to claim damages in respect of any breach of this Deed which existed at or before the date of discharge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.Notices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Any notice given to a party under or in connection with this Deed shall be in writing and shall be delivered by hand, by pre-paid first-class post or other next working day delivery service, or sent by email to the following addresses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)To the Guarantor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)222 W. Las Colinas Blvd., Suite 1910 North Tower; Irving, Texas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) rhazelton@dynaresource.com*

cc: *asotomayor@dynaresource.com*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)To the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Calle Cedro Number 303 Col. Alameda Mazatlan, Sinaloa Mexico Zip Code 82123;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) rhazelton@dynaresource.com*

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cc: *asotomayor@dynaresource.com*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)To the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Pearce Building, West Street, Maidenhead, England, SL6 1RL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b) brent.omland@oceanpartners.com*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any notice shall be deemed to have been received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)if delivered by hand, at the time the notice is left at the required address; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)if sent by pre-paid first-class post or other next working day delivery service, at 9.00 am on the fourth Business Day after posting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)if sent by email, at the time of receipt, or, if this time falls outside ordinary business hours in the place of receipt, when ordinary business hours resume in the place of receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.Service of Process

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Without prejudice to any other mode of service allowed under any relevant law the Guarantor and the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)shall, within 10 Business Days of the date of this Deed, (i) irrevocably appoint a process agent (the "**Process Agent**") as their agent for service of process in relation to any proceedings before the English courts in connection with this Deed and (ii) provide details of the Process Agent and such appointment to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)agree that failure by the Process Agent, when duly appointed, to notify the Guarantor and/or the Borrower (as appropriate) of the process will not invalidate the proceedings concerned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)if the Process Agent becomes unable or unwilling for any reason to continue to act as agent for service of process, the Guarantor and the Borrower must immediately (and in any event within five days of such event taking place) appoint another agent for service of process on terms acceptable to the Lender and failing this, the Lender may appoint another agent for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.Entire agreement

This Deed constitutes the entire agreement between the parties as regards the guarantee and indemnities granted herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.Counterparts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)This Deed may be executed in any number of counterparts, each of which shall constitute a duplicate original, but all the counterparts shall together constitute the one agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Transmission of the executed signature page of a counterpart of this Deed by email (in PDF, JPEG or other agreed format) take effect as the transmission of an executed "wet-ink" counterpart of this Deed and if this method of transmission is adopted, without prejudice to the validity of the Deed thus made, each party shall on request provide the other with the "wet ink" hard copy original of their counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)No counterpart shall be effective until each party has executed and delivered at least one executed counterpart.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.Governing law

This Deed and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the law of England.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.Jurisdiction

Each party irrevocably agrees, for the sole benefit of the Lender that, subject as provided below, the courts of England shall have exclusive jurisdiction over any dispute or claim arising out of or in connection with this Deed or its subject matter or formation (including non-contractual disputes or claims). Nothing in this clause shall limit the right of the Lender to take proceedings against Guarantor in any other court of competent jurisdiction, nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdictions, whether concurrently or not, to the extent permitted by the law of such other jurisdiction.

This **GUARANTEE** has been executed as a **DEED** and is delivered and takes effect on the date stated at the beginning of it.

**SIGNATURE PAGES**

**GUARANTOR**

EXECUTED by DYNARESOURCE, INC.

Acting by a duly authorized signatory in the presence of a witness

Authorized signatory signature: <u>/s/ Alonso Sotomayor</u>

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Authorized signature name: <u>Alonso Sotomayor</u> 

Witness Signature: s/s <u>Marcus Corlacte Sacca</u>

Witness Name: <u>Marcus Corlacte Sacca</u>

Witness Address: 610 - 168 Kings Street E

Toronto, Ontario

M5A 4S4

**BORROWER**

EXECUTED by DYNARESOURCE, INC.

Acting by a duly authorized signatory in the presence of a witness

Authorized signatory signature: <u>/s/ Rohan Hazelton</u>

Authorized signature name: <u>Rohan Hazelton</u> 

Witness Signature: s/s <u>Marcus Corlacte Sacca</u>

Witness Name: <u>Marcus Corlacte Sacca</u>

Witness Address: 610 - 168 Kings Street E

Toronto, Ontario

M5A 4S4

**LENDER**

**EXECUTED** by **OCEAN PARTNERS UK LIMITED**

acting by a duly authorised signatory in the presence of a witness:

/s/ Neil Poulter

Director signature: …………………………………………………..

Neil Poulter

Director name: …………………………………………………..

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/s/ Zekeriya Turhal

Witness signature: ………………………………………………….. Witness name: …Zekeriya Turhal ……………………..

Witness address: …The Pearce Building, West Street, .M.

…………………………………………………..

…………………………………………………..

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## Exhibit 31.1

**EXHIBIT 31.1**

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Rohan Hazelton, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this report on Form 10-Q of DYNARESOURCE, INC.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change to the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2025

---

| |
|:---|
| /s/ Rohan Hazelton |
| Rohan Hazelton |
| Chief Executive Officer<br>(principal executive officer) |

---

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## Exhibit 31.2

**EXHIBIT 31.2** 

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Alonso Sotomayor, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this report on Form 10-Q of DYNARESOURCE, INC.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change to the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 14, 2025

---

| |
|:---|
| /s/ Alonso Sotomayor |
| Alonso Sotomayor; |
| Chief Financial Officer<br>(principal financial and accounting officer) |

---

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## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the report of DynaResource, Inc. on Form 10-Q for the period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Rohan Hazelton |
| Rohan Hazelton |
| Chief Executive Officer<br>Dated: November 14, 2025 |
| /s/ Alonso Sotomayor |
| Alonso Sotomayor; |
| Chief Financial Officer<br>Dated: November 14, 2025 |

---

This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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