Mr. Murray Oliver reports

DYNASTY REPORTS MINE INCIDENT

Dynasty Metals & Mining Inc., on April 20, 2014, safely evacuated all employees from the main decline, Cabo de Hornos (the mine), at its Zaruma gold project, as a precautionary measure due to a significant amount of smoke that was being emitted by a generator which was located inside the mine, near the portal entrance.

The smoke was produced as a result of a poor fuel mix in the generator, and although a significant amount of smoke was emitted, there was no fire in the mine or generator. The evacuation of the mine meant that the company missed the day shift of mining operations; however, mine operations were quickly recommenced and is now operating as usual.

The company thanks the government for its co-operation on this matter.