DynaResource (DYNR) 10-K 27 Apr 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Apr. 18, 2017
Document And Entity Information
Entity Registrant Name	DYNARESOURCE INC
Entity Central Index Key	1,111,741
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float	$ 28,552,410
Entity Common Stock, Shares Outstanding		16,722,825
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and Cash Equivalents	$ 2,197,005	$ 1,922,599
Accounts Receivable	454,140	145,650
Inventories	561,238	98,056
Foreign Tax Receivable	1,083,364	597,012
Other current assets	73,871	6,064
Total Current Assets	4,369,618	2,769,381
Mining Equipment and Fixtures (Net of Accumulated Depreciation of $821,132 and $823,044)	578,743	635,950
Mining Concessions	4,132,678	4,132,678
Investments in Affiliate	70,000	70,000
Receivables from Affiliate	0	159,143
Other Assets	15,450	20,130
TOTAL ASSETS	9,166,489	7,787,282
Current Liabilities:
Accounts Payable	309,952	259,762
Convertible Notes Payable	956,250	956,250
Advances - Related Party	0	150,000
Due to Non-controlling Interest	231,500	231,500
Accrued Expenses	1,198,278	799,249
Derivative Liabilities	5,106,090	5,382,737
Total Current Liabilities	7,802,070	7,779,498
TOTAL LIABILITIES	7,802,070	7,779,498
Preferred Stock, Series C, $.0001 par value, 1,733,221 shares Authorized, 1,733,221 outstanding as of 2016 and 2015	4,333,053	4,333,053
Equity:
Preferred Stock, Series A, $0.0001 par value, 1,000 shares Authorized, 1,000 and 1,000 issued and outstanding	1	1
Common Stock, $0.01 par value, 25,000,000 shares authorized, 16,722,825 shares outstanding as of 2016 and 2015	167,228	167,228
Preferred Rights	40,000	40,000
Additional Paid In Capital	55,083,783	55,083,783
Treasury Stock, 1,112,313 outstanding as of 2016 and 2015	(3,175,515)	(3,175,515)
Accumulated Other Comprehensive Income	3,771,532	4,822,094
Accumulated Deficit	(53,013,185)	(54,800,910)
Total DynaResource, Inc. Stockholders' Equity	2,873,844	2,136,681
Non-controlling Interest	(5,842,478)	(6,461,950)
TOTAL (DEFICIT)	(2,968,634)	(4,325,269)
TOTAL LIABILITIES AND EQUITY	$ 9,166,489	$ 7,782,282

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accumulated Depreciation, Mining Equipment and Fixtures	$ 821,132	$ 823,044
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,733,221	1,733,221
Series C, shares issued	1,733,221	1,733,221
Series C, shares outstanding	1,733,221	1,733,221
Series A, shares issued	1,000	1,000
Series A, shares outstanding	1,000	1,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	16,722,825	16,722,825
Common stock, shares outstanding	16,722,825	16,722,825
Treasury stock	1,112,313	1,112,313

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
REVENUES	$ 9,496,105	$ 944,910
COSTS AND EXPENSES OF MINING OPERATIONS
Production Costs Applicable to Sales	2,263,409	141,737
Mine Operating Costs	2,621,707	438,484
Pre-Pilot Production Costs	64,795	2,444,469
Property Holding Costs	185,263	394,535
General and Administrative	2,598,916	3,988,331
Depreciation and Amortization	77,638	128,513
Total Operating Expenses	7,811,728	7,536,069
NET OPERATING LOSS	1,684,377	(6,591,159)
OTHER INCOME (EXPENSE)
Foreign Currency Translation Gains/Losses	(20,218)	(2,479,449)
Interest Expense	(119,532)	(240,129)
Inducement Expense	0	(826,347)
Derivatives Adj. Mark-to-Market Gain (Loss)	276,647	(204,279)
Other Income (Expense)	(156,882)	720
Total Other (Expense)	(19,985)	(3,749,484)
NET INCOME (LOSS) BEFORE TAXES	1,664,392	(10,340,643)
TAXES	0	0
NET INCOME (LOSS)	1,664,392	(10,340,643)
Deemed Dividend for Series C Preferred	(173,797)	(87,374)
Accretion of Preferred Stock to Redemption	0	(4,637,179)
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	283,333	560,643
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ 1,773,928	$ (14,504,553)
EARNINGS PER SHARE DATA ATTRIBUTABLE TOTHE EQUITY HOLDERS OF DYNARESOURCE, INC.
Basic Gain (Loss) per Common Share	$ 0.11	$ (0.92)
Weighted Average Shares Outstanding, Basic	16,722,825	15,819,701
Diluted Gain (Loss) per Common Share	$ 0.09	$ (.92)
Weighted Average Shares Outstanding, Diluted	18,560,464	15,819,701
OTHER COMPREHENSIVE LOSS:
Foreign Currency Translation Gains/Losses	$ (147,757)	$ (2,606,387)
TOTAL OTHER COMPREHENSIVE LOSS	(147,757)	(2,606,387)
TOTAL COMPREHENSIVE LOSS	1,516,635	(12,947,030)
ATTRIBUTABLE TO:
EQUITY HOLDERS OF DYNARESOURCE, INC.	897,163	(12,667,108)
NON-CONTROLLING INTERESTS	619,472	(279,922)
Total	$ 1,516,635	$ (12,947,030)

Shareholders Equity

Shareholders Equity - USD ($)	Preferred Stock - Series A	Common Stock	Preferred Rights	Additional Paid-In Capital	Treasury Stock	Other Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Noncontrolling Interest	Total
Shares, Beginning Balance at Dec. 31, 2014	1,000	14,146,024			1,378,013
Amount, Beginning Balance at Dec. 31, 2014	$ 1	$ 141,461	$ 40,000	$ 50,042,582	$ (4,152,750)	$ 2,495,629	$ (40,383,731)	$ (6,181,229)	$ 2,001,963
Advances Converted to Common Shares		70,000
Advances Converted to Common Shares, Amount		$ 700		174,300					175,000
Sale of Common Shares, number of shares		1,169,500
Sale of Common Shares, value of shares		$ 11,695		2,906,055					2,917,750
Issuance of Common Shares for Services, shares		250,000
Issuance of Common Shares for Services, value		$ 2,500		432,500					435,000
Notes Payable Converted To Common Shares		337,162
Notes Payable Converted to Common		$ 3,372		839,532					842,904
Treasury Stock Purchased, shares		750,000			750,000
Treasury Stock Purchased		$ 7,500		1,297,500	$ (1,305,000)				0
Issuance of Treasury Shares for Services, shares					(1,015,700)
Issuance of Treasury Shares for Services				(515,700)	$ 2,282,235				1,766,535
Inducement Expense				826,347					826,347
Issuance of Warrants - Golden Post				(3,025,758)					(3,025,758)
Derivatives from Golden Post Preferred Stock				2,106,425					2,106,425
Accretion Expense due to Golden Post Pref Stock							(4,637,179)		(4,637,179)
Fractional Shares		139
Other Comprehensive Income						2,326,465		279,922	2,606,387
Net Income (Loss)							(9,780,000)	(560,643)	(10,340,643)
Shares, Ending Balance at Dec. 31, 2015	1,000	16,722,825			1,112,313
Amount, Ending Balance at Dec. 31, 2015	$ 1	$ 167,228	40,000	55,083,783	$ (3,175,515)	4,822,094	(54,800,910)	6,461,950	2,136,681
Treasury Stock Purchased									0
Other Comprehensive Income						(1,050,562)		902,805	(147,757)
Paid Dividend on Preferred Shares							(160,000)		(160,000)
Net Income (Loss)							1,947,725	283,333	1,664,392
Shares, Ending Balance at Dec. 31, 2016	1,000	16,722,825			1,112,313
Amount, Ending Balance at Dec. 31, 2016	$ 0	$ 167,228	$ 40,000	$ 55,083,783	$ (3,175,515)	$ 3,771,532	$ (53,013,185)	$ (5,482,478)	$ 2,873,844

Statements of Cash Flows

Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ 1,664,392	$ (10,340,643)
Adjustments to reconcile net loss to cash (used in) operating activities:
Issuance of Common Stock for Services	0	435,000
Distribution of Treasury Shares	0	1,766,535
Inducement Expense	0	826,347
Derivatives Adj. Mark-to-Market Gain (Loss)	(276,647)	204,279
Depreciation and Amortization	77,638	128,513
Write Off Receivables from Affiliate	157,679	0
Change in Operating Assets and Liabilities
Accounts Receivable	(366,861)	(141,109)
Receivables from Affiliate	0	(8,877)
Inventories	(529,405)	(14,642)
Foreign Tax Receivable	(643,604)	(463,499)
Other Assets	(79,698)	15,908
Accounts Payable	63,587	183,914
Accrued Liabilities	468,055	299,196
CASH FLOWS (USED IN) OPERATING ACTIVITIES	535,136	(7,109,078)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equipment	(145,030)	(669,428)
CASH FLOWS (USED IN) INVESTING ACTIVITIES	(145,030)	(669,428)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Advances - Related Party	0	325,000
Proceeds of Sale of Common Stock	0	2,917,750
Payments of Notes Payable	0	(228,570)
Proceeds from Sale of Preferred Stock Series C	0	3,955,000
Payment of Dividends	(160,000)	0
Payment of Promissory Notes-Related Party	(150,000)	0
Purchase of Treasury Stock	0	0
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES	(310,000)	6,969,180
Effect of Foreign Exchange	194,300	2,480,966
NET INCREASE (DECREASE) IN CASH	274,406	1,671,640
CASH AT BEGINNING OF PERIOD	1,922,599	250,959
CASH AT END OF PERIOD	2,197,005	1,922,599
SUPPLEMENTAL DISCLOSURES
Cash Paid for Interest	119,532	175,467
Cash Paid for Income Taxes	0	0
NON CASH TRANSACTIONS
Note Conversion to Common Stock	0	842,904
Issuance of Preferred Stock C - Derivative Liabilities	0	2,152,700
Derivative liability from Warrants	0	3,025,758
Accretion of Preferred Series C to Redemption Value	0	4,637,179
Advance Conversion to Common Stock	0	175,000
Issuance of Common Stock for Treasury Stock	$ 0	$ 1,305,000

1. Nature of Activities and Sig

1. Nature of Activities and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Nature of Activities and Significant Accounting Policies	Nature of Activities, History and Organization DynaResource, Inc. (The “Company”, “DynaResource”, or “DynaUSA”) was organized 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. In 2000, the Company formed a wholly owned subsidiary, DynaResource de México S.A. de C.V., chartered in México (“DynaMéxico”). This Company was formed to acquire, invest in and develop resource properties in México. DynaMéxico owns a portfolio of mining concessions that currently includes its interests in the San José de Gracia Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 69,121 hectares (170,802 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 80% of the outstanding capital of DynaMéxico. In 2005, the Company formed DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”), and acquired effective control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owned 25% of DynaMineras and acquired effective control of DynaMineras by acquiring the option to purchase the remaining 75% of the Shares of DynaMineras. The Company finalized the option and acquisition of DynaMineras in January 2010, and now owns 100% of DynaMineras. The results of these subsidiaries are consolidated with those of the Company. From January 2008 through March 2011, DynaMéxico issued 100 Variable Capital Series “B” shares to Goldgroup Resources, Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver BC (“Goldgroup”), in exchange for Goldgroup’s contribution of $18,000,000 to DynaMéxico. At March 14, 2011, Goldgroup owned 50% of the outstanding capital shares of DynaMéxico. On June 21, 2013, DynaResource acquired a Certificate for 300 Series “B” Variable Capital Shares of DynaMéxico, in exchange for the settlement of accounts receivable from DynaMéxico in the amount of $31,090,710 Mexican Pesos (approximately $2.4 million USD). After the issuance and receipt of the 300 Series B Shares, DynaUSA holds 80% of the total outstanding Capital of DynaMéxico. The Company elected to become a voluntary reporting issuer in Canada in order to avail itself of Canadian regulations regarding reporting for mining properties and, more specifically, National Instrument 43-101 (“NI 43-101”). This regulation sets forth standards for reporting resources in a mineral property and is a standard recognized in the mining industry. Reclassifications Certain financial statement reclassifications have been made to prior period balances to reflect the current period’s presentation format; such reclassifications had no impact on the Company’s consolidated statements of operations or consolidated statements of cash flows and had no material impact on the Company’s consolidated balance sheets. Significant Accounting Policies The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements. The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items that: 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented. Basis of Presentation The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States. Principles of Consolidation The financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. (80% ownership), DynaResource Operaciones S.A. de C.V. (100% ownership) and Mineras de DynaResource S.A. de C.V. (100% ownership). All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated. Non-Controlling Interest The Company’s subsidiary, DynaResource de México S.A. de C.V, is 20% owned by Goldgroup Mining, Inc. On May 17, 2013, the ownership changed from 50% to 20%. The Company accounts for this outside interest as “non-controlling interest”. Investments in Affiliates The Company owns a 20% interest in DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”), together “DynaNevada”. The Company accounts for this investment using the cost basis. 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. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accounts Receivable and Allowances for Doubtful Accounts The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. As of December 31, 2016 and 2015, respectively, no allowance has been made. Foreign Tax Receivable Foreign Tax Receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are remitted. The total amounts of the IVA receivable as of December 31, 2016 and December 31, 2015 are $1,083,364 and $597,012, respectively. Inventory Inventories are carried at the lower of cost or fair value and consist of mined tonnage, and gravity and flotation concentrates, and gravity tailings or flotation feed material. The inventories are $561,238 and $98,056 as of December 31, 2016 and December 31, 2015, respectively. Proven and Probable Reserves (No Known Reserves) The definition of proven and probable reserves is set forth in SEC Industry Guide 7 (“Industry Guide 7”). Proven reserves for which (1) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. As of December 31, 2016, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. The Company classifies the development of its properties, including the San Jose de Gracia Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7. Property Substantially all costs, including design, engineering, construction, and installation of equipment are expensed as incurred as the Company has not established proven and probable reserves on any of its properties. Only certain types of equipment which has alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Depreciation is computed using the straight-line method with the exception of mining equipment. Mining equipment is depreciated using the units-of-production method based on tonnes processed over the estimated total mine life. Office furniture, equipment and light vehicles are being depreciated on a straight-line method over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company's corporate office, are being amortized over the term of the lease of 10 years. Trailers, heavy vehicles and other site equipment are being depreciated on a straight-line method over estimated economic lives from 5 to 15 years. Buildings are being depreciated on straight line method over an estimated economic life of 20 years. Design, Construction, and Development Costs: When proven and probable reserves as defined by Industry Guide 7 exist, development costs are capitalized and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company's properties, design, construction and development costs are not capitalized at any of the Company's properties, and accordingly, substantially all costs are expensed as incurred, resulting in the Company reporting larger losses than if such expenditures had been capitalized. Additionally, the Company does not have a corresponding depreciation or amortization of these costs going forward since these expenditures were expensed as incurred as opposed to being capitalized. As a result of these and other differences, the Company's financial statements may not be comparable to the financial statements of mining companies that have established reserves. Mining Properties Interests Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the San Jose de Gracia Property, capitalized costs and mineral property interests are amortized using the straight-line method once production begins. As of December 31, 2016, the mining interests have been in the pilot production stage and therefore, no amortization has been expensed. Mining properties consist of 33 mining concessions covering approximately 69,121 hectares at the San Jose de Gracia property (“SJG”), the basis of which are amortized on the unit of production method based on estimated recoverable resources. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related costs are recorded do not necessarily reflect present or future values. Impairment of Assets: For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment 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 related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable mineralized material" refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to 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 will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of December 31, 2016 and 2015, no indications of impairment existed. Asset Retirement Obligation: Pre-Pilot Production Costs During 2015 and 2016, the Company has conducted rehabilitation activity at the San Pablo mine, and has refurbished the Pilot Mill Facility at San Jose de Gracia and, in general is preparing for test mining and pilot milling (“Pilot Production”) Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process are expensed as pre pilot-production costs. Property Holding Costs Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs. Exploration Costs Exploration costs are charged to operations and expenses as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred. Foreign Currency Translation The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican Pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for nonmonetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency translation gains and losses are reported as a separate component of stockholders’ equity (comprehensive income (loss). The financial statements of the subsidiaries should not be construed as representations that Mexican Pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the periods ended December 31, 2016 and December 31, 2015 (Mexican Pesos per one U.S. dollar): Dec 31, 2016 Dec 31, 2015 Current exchange rate Pesos 20.65 17.34 Weighted average exchange rate for the period ended Pesos 18.69 15.87 The Company recorded currency transaction losses of $(20,218) for the year ended December 31, 2016 and $(2,479,449) in 2015. Income Taxes The Company accounts for income taxes under ASC 740 “Income Taxes” Income from the Company’s subsidiaries in México are taxed at applicable Mexican tax law. Use of Estimates In order to prepare financial statement in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. Comprehensive Income (Loss) ASC 220 “Comprehensive Income” Revenue Recognition The Company recognizes revenue in accordance with ASC 605-10, " Revenue Recognition in Financial Statements Stock-Based Compensation The Company accounts for stock options at fair value as prescribed in ASC 718. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option. The Company accounts for stock options issued and vesting to non-employees in accordance with ASC Topic 505-50 “ Equity -Based Payment to Non-Employees” Fair value of Financial Instruments The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate. Per Share Amounts Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 3,593,689 warrants outstanding at December 31, 2016 exercisable at $2.50 per share, which upon exercise, would result in the issuance of 3,593,689 shares of common stock. The Company also had convertible debt instruments as of December 31, 2016 which, upon conversion at a valuation of $2.50 per share, would result in the issuance of 337,162 shares of stock. The Company had 4,345,497 warrants outstanding at December 31, 2015 exercisable at $2.50 per share. The Company also had convertible debt instruments as of December 31, 2015 which, upon conversion, would result in the issuance of 337,162 shares of stock. All warrant are exercisable at $2.50 per share. As the Company incurred a net loss during the period ended December 31, 2015, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive and, therefore, have been excluded from the computation. Years ended December 31 2016 2015 Net income $ 1,773,928 $ (14,504,553 ) Shares: Weighted average number of common shares outstanding, Basic 16,722,825 15,819,701 Diluted weighted average number of common shares outstanding, Diluted 18,560,464 15,819,701 Basic earnings per share $ 0.11 $ (0.92 ) Diluted earnings per share $ 0.09 $ (0.92 ) Related Party Transactions FASB ASC 850, "Related Party Disclosures" requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.” Recently Issued Accounting Pronouncements Presentation of Financial Statements—Going Concern—Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern: Presentation of Financial Statements and Property, Plant and Equipment—Reporting Discontinued Operations and Disclosures of Components of an Entity: Revenue from Contracts with Customers:

2. Inventories

2. Inventories	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	The Company commenced underground test mining and pilot milling activities (“pilot production”) in the 2nd quarter of 2014. Rehabilitation of the San Pablo Mine and refurbishing of the Pilot Mill Facility and construction of the adjacent tailings pond continued through 2016. Inventories are carried at the lower of cost or fair value and consist of mined tonnage, gravity-flotation concentrates, and gravity tailings (or, flotation feed material). Inventory balances of December 31, 2016 and December 31, 2015, respectively, were as follows: 2016 2015 Mined Tonnage, Gold-Silver Concentrates, and/or Gravity Tailings (Flotation Feed Material) $ 561,238 $ 98,056 Total Inventories $ 561,238 $ 98,056

3. Property

3. Property	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property	Property consists of the following at December 31, 2016 and December 31, 2015: 2016 2015 Mining camp equipment $ 399,180 $ 402,212 Transportation equipment 282,379 301,074 Machinery and equipment 470,741 509,298 Office furniture and fixtures 75,829 75,829 Office equipment 171,746 170,581 Sub-total 1,399,875 1,458,994 Less: Accumulated depreciation (821,132 ) (823,044 ) Total Property $ 578,743 $ 635,950 The Company purchased equipment of $145,030 and $669,428 in the years ended December 31, 2016 and 2015, respectively. Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was $77,638 and $128,513 for the years ended December 31, 2016 and 2015, respectively.

4. Mining Concessions

4. Mining Concessions	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Mining Concessions	Mining properties consist of the following at December 31, 2016 and December 31, 2015: 2016 2015 San Jose de Gracia (“SJG”): Total Mining Concessions $ 4,132,678 $ 4,132,678 Depletion expense was $nil and $nil for the years ended December 31, 2016 and 2015, respectively.

5. Investment in Affiliate _ Re

5. Investment in Affiliate / Receivables from Affilate	12 Months Ended
	Dec. 31, 2016
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]
Investment in Affiliate / Receivables from Affilate	Through December 31, 2016, the Company loaned a total of $805,760 to DynaResource Nevada, Inc. (“DynaNevada”), a Nevada Corporation, which owns 100% of one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”). The terms of the Note Receivable provided for a “Convertible Loan”, repayable at 5% interest over a 3-year period, and convertible at the Company’s option into common stock of DynaNevada at $.25 / Share. DynaNevada is a related entity (affiliate), and through its subsidiary, DynaNevada de México has entered into an Option agreement with Grupo México (IMMSA) in México, for the exploration and development of approximately 3,000 hectares in the State of San Luis Potosi (“The Santa Gertrudis Property”). DynaNevada de México exercised the Option with IMMSA in March 2010, so that DynaNevada de México now owns 100% of the Santa Gertrudis Property. In June 2010, DynaNevada de México acquired an additional 6,000 hectares in the State of Sinaloa (the “San Juan Property”). On December 31, 2010, the Company exercised its option to convert the note receivable and other receivable from DynaNevada into shares of common stock at a rate of $.25 / Share. The Company received 3,223,040 shares, which represents approximately 19.95% of the outstanding shares of DynaNevada. At the time of the exchange, DynaNevada’s net book value was approximately $695,000, consisting of $30,000 cash and the remainder unproven mining properties. Based upon the above, Management estimated the value of the Company’s DynaNevada shares as of December 31, 2016 and December 31, 2015 to be $70,000 and $70,000, respectively. The loss was taken to “other income (loss) on the income statement in previous years. The Company has advanced funds to DynaNevada on a regular basis in order for DynaNevada to meets its basis filing and reporting obligations with the Mexican authorities relating to tax returns and paying taxes on its mining concessions. During 2016, the Company determined that the notes were uncollectable due to the lack of operations in the entity and wrote off the advanced funds. As of December 31, 2016, and December 31, 2015, the advances totaled $nil and $159,143, respectively.

6. Convertible Promissory Notes

6. Convertible Promissory Notes	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Convertible Promissory Notes	Notes Payable – Series I In April and May 2013, the Company entered into note agreements with shareholders in the principal amount of $1,495,000, of which $340,000 was then converted to preferred shares within the same year, netting to proceeds of $1,155,000 (the “Series I Notes”). The Series I Notes bear simple interest at twelve and a half percent (12.5%), accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The holders of the Series I Notes (in aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, on the first fifty thousand tons processed through the mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting “all expenses related to the production”, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series I Notes. The Notes originally matured on December 31, 2015. In April 2015, the Company received note extensions (allonges) from all Series I note holders to ensure that all Series I Notes were in good standing and also extended the maturity date of the Series I Notes to December 31, 2016. At December 31, 2016, one of the Series I Notes remained outstanding for a total of $5,800.78 and was paid off in 2017, one of the Series I Notes was further extended to June 30, 2017, and the remaining Series I Notes were further extended to December 31, 2017. The Company has the right to prepay the Series I Notes with a ten percent (10%) penalty. The Series I Note holder retains the option, at any time prior to maturity or prepayment, to convert any unpaid principal and accrued interest into Common Stock at $5.00 per share. If the Series I Note is converted into Common Stock, at the time of conversion, the holder would also receive warrants, in the same number as the number of common shares received upon conversion, to purchase additional common shares of the Company for $7.50 per share, with such warrants expiring on December 31, 2018. Notes Payable – Series II In 2013 and 2014, the Company entered into additional note agreements of $199,808 and $250,000, respectively (the “Series II Notes”) with similar terms as the Series I Notes. The Series II Notes bear simple interest at twelve and a half percent (12.5%), accrued for twelve months, and with the accrued interest to be added to the principal, and then interest will be paid by the Company, quarterly in arrears. The holders of the Series II Notes (in aggregate) are also entitled to receive ten percent (10%) of the net profits received by the Company, on the second fifty thousand tons processed through the mill facilities at San Jose de Gracia. Such net profits (if any) are to be calculated after deducting “all expenses related to the production” l, and after a prior deduction of thirty-three percent (33%) from the net profits, to be deposited into a sinking fund cash reserve. To date, the Company has not produced any net profits as calculated in accordance with the Series II Notes. The Notes originally matured on December 31, 2015. In April 2015, the Company received allonges (note extensions) from all noteholders to ensure that all notes were in good standing and also confirmed the maturity of the Series II notes to be December 31, 2016. At December 31, 2016, the remaining Series II Notes were further extended to December 31, 2017. The Company has the right to prepay the Series II Notes with a ten percent (10%) penalty. The Note holder may, at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into common stock of the Company at $5.00 per share. At the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $7.50 per share, such warrant expiring on December 31, 2018. On June 30, 2015, the Company entered into conversion agreements with six (6) note holders. Principal and interest in the amount of $809,784 plus $33,120 of accrued interest (total of $842,903) was contracted to convert into 337,162 common shares. In addition, 337,162 warrants were issued which provide the option to purchase common shares at $2.50, with all warrants expiring December 31, 2017. The Company recorded $826,347 inducement expense related to these conversion transactions. On August 17, 2015, these common shares and warrants were issued. At December 31, 2016, the principal and capitalized interest balance on the remaining Series I Notes was $765,000, and the principal and capitalized interest on the Series II Notes was $191,250, for a total Note balance of $956,250.. The accrued interest for these notes was $29,883 and $29,883 as of December 31, 2016 and 2015, respectively. The Company paid $203,500 to KBM and $25,070 to Series I debt holders for a total of $228,570 during 2015.

7. Income Taxes

7. Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	The Company has adopted ASC 740-10, “ Income Taxes” The cumulative tax effect at the expected tax rate of 34% (blended for U.S. and México) of significant items comprising the Company’s net deferred tax amounts as of December 31, 2016 and December 31, 2015 are as follows: Deferred Tax Asset Related to: 2016 2015 Prior Year $ 17,535,800 $ 13,652,086 Tax Benefit for Current Year (533,317 ) 3,883,714 Total Deferred Tax Asset 17,002,483 17,535,800 Less: Valuation Allowance (17,002,483 ) (17,535,800 ) Net Deferred Tax Asset $ — $ — The net deferred tax asset and benefit for the current year is generated primarily from the cumulative net operating loss carry-forward which is approximately $49,300,000 at December 31, 2016, and will expire in the years 2025 through 2031. The realization of deferred tax benefits is contingent upon future earnings and is fully reserved at December 31, 2016. On December 11, 2013, the Mexican government enacted a tax reform that increased the effective tax rate applicable to the Company's Mexican operations. The law, effective January 1, 2014, increased the future corporate income tax rate to 30%, created a 10% withholding tax on dividends paid to non-resident shareholders and created a new Extraordinary Mining duty which is equal to 0.5% of gross revenues from the sale of gold, silver and platinum. Furthermore, the reform introduced a Special Mining Duty of 7.5%. The Special Mining Duty is deductible for income tax purposes. The Special Mining Duty is generally applicable to earnings before income tax, depreciation, depletion, amortization and interest. There will be no deductions related to development type costs but exploration and prospecting costs are deductible when incurred. Certain non-deducted exploration expenditures incurred prior to January 1, 2014 are also deductible in the calculation of the Special Mining Duty. For the year ended December 31, 2014, the Company had no taxes payable under the 7.5% Special Mining Duty. The Company or its subsidiaries file income tax returns in the United States and México. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction: United States: 2012 to 2015 México: 2011 to 2015 The Company does not have any other material items of temporary or permanent differences, which give rise to deferred tax assets or liabilities.

8. Stockholders' Equity

8. Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Stockholders' Equity	Authorized Capital Preferred Stock Common Stock Series A Preferred Stock The Company has designated 1,000 shares of its Preferred Stock as Series A, having a par value of $0.0001 per share. Holders of the Series A Preferred Stock have the right to elect a majority of the Board of Directors of the Company. In October 2007, the Company issued 1,000 shares of Series A Preferred Stock to its CEO. At December 31, 2016 and December 31, 2015, there were 1,000 and 1,000 shares of Series A Preferred Stock outstanding, respectively. Series C Senior Convertible Preferred Shares On June 30, 2015, the Company issued 1,600,000 Series C Senior Convertible Preferred Shares (the “Series C Preferred Shares”) at $2.50 per share for gross proceeds of $ 4,000,000, as well as issuing 133,221 additional Series C Preferred Shares due to anti-dilution provisions (with no cash remuneration). Legal fees of $45,000 were deducted from the proceeds of this transaction at closing. These Series C Preferred Shares are convertible to common shares at $2.50 per share, through February 20, 2020. The Series C Preferred Shares may receive a 4% per annum dividend, payable if available, and in arrears. A description of the transaction which included the issuance of the Series C Preferred Shares is included below. During 2016 the company paid Dividends of $160,000 to the holder of Series C Convertible Preferred Stock. The Dividend is calculated at 4.0% of $4,000,000 payable annually on June 30. Financing Agreement with Golden Post Rail, LLC, a Texas Limited Liability Company 1. On May 6, 2015, the Company, Golden Post Rail, LLC, a Texas limited liability company (“Golden Post”), and Mr. Koy W. (“K.D.”) Diepholz, Chairman-CEO of the Company entered into a Securities Purchase Agreement (the “SPA”). Pursuant to the SPA, Golden Post acquired the following securities: a) 1,600,000 shares of Series C Senior Convertible Preferred Stock (the “Series C Preferred”) at a purchase price of $2.50 per share ($4M USD), plus an additional 133,221 shares of Series C Preferred pursuant to anti-dilution provisions. The Series C Preferred is entitled to receive dividends at the per share rate of four percent (4%) per annum, ranks senior (in priority) to the Common Stock, the Series A Preferred Stock, and each other class or series of equity security of the Company. The Series C Preferred is convertible into Common Stock of the Company at the price of $2.41 per share, and is entitled to anti-dilution protection for (i) subsequent equity issuances by the Company and (ii) changes in the Company’s ownership of DynaResource de México SA de CV (“DynaMéxico”). The Series C Preferred is also entitled to preemptive rights, and the holder has the right to designate one person to the Company’s Board of Directors as a Class III director. b) A Common Stock Purchase Warrant (the “Golden Post Warrant”) for the purchase of 2,166,527 shares of the Company’s Common Stock, at an exercise price of $2.50 per share, and expiring June 30, 2020. The anti-dilution protections contained in the terms of the Series C Preferred are essentially replicated in the Golden Post Warrant. 2. Pursuant to the SPA, the Company executed a Registration Rights Agreement pursuant to which Golden Post may require the Company to register the shares of Common Stock which may be issued upon the conversion of the Series C Preferred and the shares of Common Stock issuable upon the exercise of the Warrant, including any additional shares of Common Stock issuable pursuant to anti-dilution provisions. In 2015, due to underlying anti-dilutive provisions contained in the Series C Preferred Shares and the Golden Post Warrant, the Company incurred derivative liabilities of $2,419,359 in connection with the Series C Preferred Shares, and $2,963,378 in connection with the Golden Post Warrant. Additionally, the Company fully accreted the discount related to the Series C Preferred Shares and the Golden Post Warrant in the amount of $4,637,179, which is reflected “below” the net income (loss) amount. Also in 2015, the Company reported $87,374 deemed dividend for Golden Post Rail related to its 4% dividend terms. As the Company has not declared these dividends, it is required only as an item “below” the net income (loss) amount. In 2016 the total Derivative Liability was $5,106,090 which included $2,592,452 for the Series C Preferred Shares, and $2,513,638 in connection with the Golden Post Warrant. The Deemed Dividend for 2016 and 2015 was $173,797, and $87,374 respectively Due to the nature of this transaction as mandatorily redeemable, the preferred shares are classified as “temporary equity” on the balance sheet. Preferred Series C Carrying Value, December 31, 2014 $ - Issuances at Fair Value, net of issuance costs 3,955,000 Bifurcation of Derivative Liability (2,152,700 ) Relative Fair Value of Warrants – Preferred Stock Discount (2,106,426 ) Accretion of Preferred Stock to Redemption Value 4,637,179 Carrying Value, December 31, 2015 4,333,053 Issuances at Fair Value, net of issuance costs 0 Bifurcation of Derivative Liability 0 Relative Fair Value of Warrants – Preferred Stock Discount 0 Accretion of Preferred Stock to Redemption Value 0 Carrying Value, December 31, 2016 4,333,053 Preferred Stock (Undesignated) In addition to the 1,000 shares designated as Series A Preferred Stock and the 1,733,221 shares designated as Series C Preferred Shares, the Company is authorized to issue an additional 16,266,779 shares of Preferred Stock, having a par value of $0.0001 per share. The Board of Directors of the Company has authority to issue the Preferred Stock from time to time in one or more series, and with respect to each series of the Preferred Stock, to fix and state by the resolution the terms attached to the Preferred Stock. At December 31, 2016 and December 31, 2015, there were no other shares of Preferred Stock outstanding. Separate Series; Increase or Decrease in Authorized Shares Common Stock The Company is authorized to issue 25,000,000 common shares at a par value of $0.01 per share. These shares have full voting rights. At December 31, 2016 and December 31, 2015, there were 16,722,825 shares outstanding, respectively. No dividends were paid for the years ended December 31, 2016 and 2015, respectively. Preferred Rights The Company issued “Preferred Rights” for the rights to percentages of revenues generated from the San Jose de Gracia Pilot Production Plant, and received $158,500 in 2003 and $626,000 in 2002. This has been reflected as “Preferred Rights” in stockholders’ equity. As of December 31, 2004, $558,312 was repaid and as of December 31, 2005, an additional $186,188 was repaid, leaving a current balance of $40,000 and $40,000 as of December 31, 2016 and December 31, 2015, respectively. Stock Issuances 2016 Activity None. 2015 Activity During the year ended December 31, 2015, the Company issued 407,162 common shares for the conversion of notes, accrued interest and advances at $2.50 per share. These stock issuances also included the issuance of 407,162 warrants exercisable at $2.50 per share, expiring December 31, 2017. The Company issued 1,169,500 common shares for total cash received of, $2,917,750 and the Company also issued 1,319,000 Warrants, with 1,020,000 of these warrants exercisable at $2.50 per share expiring December 31, 2017 and 149,500 warrants exercisable at $5 per share through December 31, 2016 and 149,500 warrants exercisable at $7.50 per share, expiring December 31, 2016. The Company issued 2,166,527 warrants related the Preferred Series C shares issued in the current year. These warrants are exercisable at $2.50 per share and expire June 30, 2020. During 2015, the Company issued 750,000 common shares to Mineras de DynaResource S.A. de C.V. (“DynaMineras”, a wholly owned subsidiary) in exchange for services at a fair value of $1.74 per share. The shares are carried in Treasury for consolidation purposes. During 2015, the Company issued 250,000 shares to Dynacap Group Ltd., a related party, for services rendered at a fair value of $1.74 per share and recognized $435,000 in expense. Treasury Stock During the year ended December 31, 2015, the Company distributed 395,700 treasury shares for services rendered and recognized $791,400 expense related to same. The Company distributed 600,000 treasury shares for services rendered and recognized $924,000 expense for such distribution. Company recognized $51,135 in expense for the distribution of 20,000 treasury shares. At December 31, 2016 and 2015, 1,112,313 treasury shares were outstanding. Note Conversions As described in Note 6, Six (6) Noteholders converted principal and interest in the amount of $809,784 plus $33,120 of accrued interest (total of $842,904) into 337,162 shares of common stock ($2.50 per share). In addition, 337,162 warrants were issued, exercisable at $2.50 per share, expiring December 31, 2017. Conversion of Advances- Related Party The Company converted $175,000 of advances for the issuance of 70,000 shares of common (at $2.50 per share) as well as issuing 70,000 warrants, exercisable at $2.50 per share, expiring December 31, 2017. Warrants 2016 activity The Company had 3,593,689 warrants outstanding at December 31, 2016. There were no warrants issued or exercised in 2016 and 567,500 warrants expired in 2016. 2015 activity The Company had 4,161,189 warrants outstanding at December 31, 2015. During 2015, the Company issued 149,500 warrants at $5/share, expiring December 31, 2016 and 149,500 warrants at $7.50/share expiring December 31, 2017. The Company also issued 1,020,000 warrants at $2.50/share, expiring December 31, 2017. The Company also issued 2,166,527 warrants with anti-dilution provisions at $2.50/share, subsequently reset to $2.41/share and expiring June 30, 2020. The Company also issued 407,162 warrants at $2.50/share, expiring December 31, 2017. Expiration of 991,150 warrants occurred during the year. During the years ended December 31, 2016 and 2015, no warrants were exercised. The Company recorded no expense related to the issuance of these warrants since these warrants were issued in common stock for cash sales and note conversions. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Balance at December 31, 2014 1,259,650 $ 5.80 .96 $ - Granted 3,892,689 $ 6.25 $ Exercised - $ - $ - Forfeited (991,150 ) $ 4.69 $ - Balance at December 31, 2015 4,161,189 $ 3.07 3.17 $ - Granted - $ - $ - Exercised - $ - $ - Forfeited (567,500 ) $ 7.02 $ - Balance at December 31, 2016 3,593,689 $ 2.45 2.51 $ - Exercisable at December 31, 2016 3,593,689 2.45 2.51 $ -

9. Related Party Transactions

9. Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company follows FASB ASC subtopic 850-10, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions. Pursuant to ASC 850-10-20, related parties include: a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. Material related party transactions are required to be disclosed in the consolidated financial statements, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which statements of operation are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which statements of operations are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Dynacap Group Ltd. The Company paid $116,750 and $81,500 to Dynacap Group, Ltd. (“Dynacap”, an entity controlled by the CEO of the Company) for consulting and other fees during the years ended December 31, 2016 and 2015, respectively. Dynacap retains 2 individuals, who are family members of the CEO, as independent contractors who provide administrative and executive support services to the Company. Dynacap has provided these services to the Company for recent years. The Company also issued 250,000 shares of common stock in February 2015 to Dynacap for services performed at $1.74 per share and recognized expense $435,000. Cash Advances by Management Company Chairman/CEO loaned $75,000 and a former Company CFO loaned $150,000 as advances to the Company in 2015. In 2015, the Company converted $175,000 of advances from the CEO for the issuance of 70,000 shares of common (at $2.50 per share) as well as 70,000 warrants, exercisable at $2.50 per share, expiring December 31, 2017. These shares were issued in August 2015. The Company repaid the $150,000 advance to the former CFO in 2016. Stock Issued to Management In 2015, the Company CEO received 20,000 treasury shares for services. Note Agreement with Management The Company entered into a note agreement with its CFO for the receipt of $250,000 on April 24, 2014. The agreement calls for simple interest at an annual rate of 12.5%. Interest for the first year is to be capitalized and added to the note. After one year, the Company is to make quarterly payments in arrears. The Note matured on December 31, 2015. The Company has the right to prepay the Note with a ten percent (10%) penalty. The Note holder may, at any time prior to maturity or prepayment, convert any unpaid principal and accrued interest into common stock of the Company at $3.75 until December 31, 2016, and at 5.00 per share after December 31, 2016, but prior to December 31, 2016. At the time of conversion, the holder would receive a warrant to purchase additional common shares of the Company for $7.50 per share, such warrant expiring 2 years from the date of issue. On April 24, 2015, the CFO agreed to convert $250,000 principal plus $30,555 accrued interest into 115,222 common shares at $2.50/Share, with 115,222 warrants, exercisable at $2.50 per share, expiring December 31, 2017. These shares and warrants were issued on August 24, 2015. Advances from Goldgroup Mining Inc. (“Goldgroup”) to Dyna México In 2014, Goldgroup advanced $111,500 to DynaMéxico and in 2013 Goldgroup advanced $120,000 USD to DynaMéxico. This total $231,500 is being carried by DynaMéxico as a Due to Non-Controlling Interest. DynaResource Nevada, Inc. and DynaNevada de México S.A. de C.V. (together “DynaNevada”) The Company advanced DynaNevada $0 and $0 in the years ended December 31, 2016 and 2015, respectively, for maintenance of its corporate obligations and mining concessions. The advances were written off in 2016. The balance for the years ended December 31, 2016 and 2015 are $0 and $159,143, respectively.

10. Commitments and Contingenci

10. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	The Company is required to pay taxes in México in order to maintain mining concessions owned by DynaMéxico. Additionally, the Company is required to incur a minimum amount of expenditures each year for all concessions held. The minimum expenditures are calculated based upon the land area, as well as 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 and current and forward plans, and considering expenditures on mining concessions since 2002-2016 and continuing expenditures in current and forward activities, the Company does not anticipate that DynaMéxico will have any difficulties meeting the minimum annual expenditures for the concessions ($388 – $2,400 Mexican Pesos per hectare). DynaMéxico retains sufficient carry-forward amounts to cover over 10 years of the minimum expenditure (as calculated at the 2016 minimum, adjusted for annual inflation of 4%). In addition to the surface rights held by DynaMéxico pursuant to the Mining Act Ley Minera y su Reglamento 20 Year Land Lease Agreement with the Santa Maria Ejido Community surrounding San Jose de Gracia was dated January 6, 2014 and continues through 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG, and provides for annual lease payments by DynaMineras of $1,359,443 Pesos (approx. $72,000 USD), commencing in 2014. In August 2016, the Company entered into a sixty-six month extension of the lease through 2021. The Company paid rent expense of $67,746 and $55,764 related to this lease for the years ended December 31, 2016 and 2015, respectively. YEAR AMOUNT 2017 $68,881 2018 $80,969 2019 $82,775 2020 $84,581 2021 $86,387 TOTAL $403,593 Other Contingencies The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Company conducts its operations so as to protect public health and the environment, and believes its operations are materially in compliance with all applicable laws and regulations. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations. Damages Awarded to DynaMéxico in México Litigation On October 5, 2016, DynaResource de México SA de C.V. (“DynaMéxico”), was awarded in excess of $48 M USD (Forty-Eight Million Dollars) in damages from Goldgroup Resources, Inc. (the “Goldgroup Damages”) by virtue of a Sentencia Definitiva (the “Definitive Sentence”) issued by the Thirty Sixth Civil Court of the Superior Court of Justice of the Federal District of México (Tribunal Superior de Justicia del Distrito Federal), File number 1120/2014. The Definitive Sentence included the considerations and resolutions by the Court, and additional Resolutions were also ordered in favor of DynaMéxico (together the Goldgroup Damages and the additional Resolutions are referred to as, the “Oct. 5, 2015 Resolution”). The October 5, 2015 Resolution is described in Part II, Item 1., Legal Proceedings. Litigation The Company believes that no material adverse change will occur as a result of the legal actions taken, and the Company further believes that there is little to no potential for the assessment of a material monetary judgment against the Company for legal actions it has filed in México. Further, the Company believes there is no legal basis for which to conduct arbitration proceedings. (See Item 3. Legal Proceedings. And, see Item 7. Management’s Discussion and Analysis of Financial Conditions and Results of Operations).

11. Derivative liabilities

11. Derivative liabilities	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liabilities	Preferred Series C Stock As discussed in Note 8, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the stock qualified as a derivative liability and is required to be bifurcated and accounted for as such since the host and the embedded instrument are not clearly and closely related. The Company performed a valuation of the conversion feature. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is 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 fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used an equity simulation model to determine the value of conversion feature of the Series C Preferred Stock based on the assumptions below: 2016 2015 Annual volatility rate 123 % 134 % Risk free rate 1.93 % 1.76 % Holding Period 5 years 5 years Fair Value of common stock $ 1.75 $ 1.65 For the year ended December 31, 2016, 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. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2016 and 2015: Year Ended 2016 2015 Fair value of derivative (stock), beginning of year $ 2,419,359 $ — Change in fair value of derivative 173,093 266,659 Fair value of derivative on the date of issuance — 2,152,700 Fair value of derivative(stock), end of year $ 2,592,452 $ 2,419,359 Preferred Series C Warrants As discussed in Note 8, the Company analyzed the embedded conversion features of the Series C Preferred Stock and determined that the Warrants qualified as a derivative liability and is required to be bifurcated and accounted for as such since the host and the embedded instrument are not clearly and closely related. The Company performed a valuation of the conversion feature. In performing the valuation, the Company applied the guidance in ASC 820, “Fair Value Measurements”, In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is 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 fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company considered the inputs in this valuation to be level 3 in the fair value hierarchy under ASC 820 and used an equity simulation model to determine the value of conversion feature of the Warrants based on the assumptions below: 2016 2015 Annual volatility rate 123 % 134 % Risk free rate 1.93 % 1.76 % Holding Period 5 years 5 years Fair Value of common stock $ 1.75 $ 1.65 For the year ended December 31, 2016, 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. The below table represents the change in the fair value of the derivative liability during the years ended December 31, 2016 and 2015: Year Ended 2016 2015 Fair value of derivative (warrants), beginning of year $ 2,963,378 $ — Change in fair value of derivative (449,740 ) (62,380 ) Fair value of derivative on the date of issuance — 3,025,758 Fair value of derivative(warrants), end of year $ 2,513,638 $ 2,963,378

12. Non-Controlling Interest

12. Non-Controlling Interest	12 Months Ended
	Dec. 31, 2016
Noncontrolling Interest [Abstract]
Non-Controlling Interest	The Company’s Non-Controlling Interest recorded in the consolidated financial statements relates to an interest in DynaResource de México, S.A. de C.V. of 50% through May 13, 2013, and 20% thereafter. Changes in Non-Controlling Interest for the years ended December 31, 2016 and December 31, 2015, respectively were as follows: Year Ended December 31, 2016 Year Ended December 31, 2015 Beginning balance $ (6,461,950 ) $ (6,181,229 ) Operating income (loss) (283,333 ) (560,643 ) Share of Other Comprehensive Income (loss) 902,805 279,922 Ending balance $ (5,842,478 ) $ (6,461,950 ) The Company began allocating a portion of other comprehensive income (loss) to the non-controlling interest with the adoption of ASC 160 as of January 1, 2009. However, this amount is only reflected in the income statement.

13. Fair Value of Financial Ins

13. Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	The ASC guidance for fair value measurements and disclosure establishes a fair value 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 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Inputs Level 2 Inputs Level 3 Inputs As of December 31, 2016, and December 31, 2015, the Company’s financial assets were measured at fair value using Level 3 inputs, with the exception of cash, which was valued using Level 1 inputs. A description of the valuation of the Level 3 inputs is discussed in Note 11. Fair Value Measurement at December 31, 2016 Using: December 31, 2016 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: None - - - - Totals $- $- $- $- Liabilities: Derivative Liabilities $ 5,106,090 — — 5,106,090 Totals $ 5,106,090 $ — $ — $ 5,106,090 Fair Value Measurement at December 31, 2015 Using: Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: Derivative Liabilities $ 5,382,737 — — 5,382,737 Totals $ — $ — $ — $ —

14. Subsequent Events

14. Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	On January 28, February 9, March 10, March 17, March 25, April 3, and April 10, DynaMineras reported the delivery for sale of an approximate total of 1,773 gross Oz gold concentrates (exact weights in gold and silver Oz to be determined at final settlement). Cash Receipts in 2017 from the Delivery / Sale of Gold Concentrates in 2016 DynaMineras reports receipts in the total amount of $454,140 USD as payment for the delivery and sale of gold concentrates in 2016, through March 30, 2017. Appointment of Eduardo Luna to the Board of Directors of DynaUSA, and as Advisor to President of DynaMineras On March 6, 2017 Concurrently, DynaMineras, appointed Mr. Luna as Special Advisor to the President of DynaMineras. Mr. Luna currently serves as a member of the Board of Directors of Silver Wheaton Corp., which is the largest pure precious metals streaming company in the world. Mr. Luna has also served as a Member of the Board of Directors of Goldcorp Inc., Alamos Gold Inc., and Primero Mining Corp. During his distinguished career, Mr. Luna has received several mining industry recognitions and appointments, which include: ● National Mining Award, Mexico, 1997; ● President of the Mexican Chamber of Mines; ● President of the Consulting Board for the School of Mines, Universidad de Guanajuato; ● Member of the Advisory Boards of the School of Mines of National University of Mexico and University of Zacatecas; ● President of The Silver Institute 2002 – 2003. Mr. Luna received a Bachelor’s degree in Mining Engineering from Universidad de Guanajuato, 1971; an MBA from Tecnológico de Monterrey, 1979; and an Advanced Management degree from Harvard Business School. In 1997 Mr. Luna was appointed Trustee of Fundación Pro Niños de la Calle, a charity that works with children living on the streets of Mexico City.

15. Revenue Concentration

15. Revenue Concentration	12 Months Ended
	Dec. 31, 2016
Revenue Concentration
Revenue Concentration	The Company had certain customers whose revenue individually represented 10% or more of the Company’s total revenue, or whose accounts receivable balances individually represented 10% or more of the Company’s total accounts receivable, as follows: For the twelve months ended December 31, 2016 and 2015, two customers accounted for 100% and three customers accounted for 100% of revenue, respectively. At December 31, 2016, one customer accounted for 100% of accounts receivable. At December 31, 2015, one customer accounted for 100% of accounts receivable.

1. NATURE OF ACTIVITIES AND S22

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Nature Of Activities And Significant Accounting Policies Policies
Nature of Activities, History and Organization	DynaResource, Inc. (The “Company”, “DynaResource”, or “DynaUSA”) was organized 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. In 2000, the Company formed a wholly owned subsidiary, DynaResource de México S.A. de C.V., chartered in México (“DynaMéxico”). This Company was formed to acquire, invest in and develop resource properties in México. DynaMéxico owns a portfolio of mining concessions that currently includes its interests in the San José de Gracia Project (“SJG”) in northern Sinaloa State, México. The SJG District covers 69,121 hectares (170,802 acres) on the west side of the Sierra Madre mountain range. The Company currently owns 80% of the outstanding capital of DynaMéxico. In 2005, the Company formed DynaResource Operaciones de San Jose De Gracia S.A. de C.V. (“DynaOperaciones”), and acquired effective control of Mineras de DynaResource, S.A. de C.V. (formerly Minera Finesterre S.A. de C.V., “DynaMineras”). The Company owned 25% of DynaMineras and acquired effective control of DynaMineras by acquiring the option to purchase the remaining 75% of the Shares of DynaMineras. The Company finalized the option and acquisition of DynaMineras in January 2010, and now owns 100% of DynaMineras. The results of these subsidiaries are consolidated with those of the Company. From January 2008 through March 2011, DynaMéxico issued 100 Variable Capital Series “B” shares to Goldgroup Resources, Inc., a wholly owned subsidiary of Goldgroup Mining Inc. Vancouver BC (“Goldgroup”), in exchange for Goldgroup’s contribution of $18,000,000 to DynaMéxico. At March 14, 2011, Goldgroup owned 50% of the outstanding capital shares of DynaMéxico. On June 21, 2013, DynaResource acquired a Certificate for 300 Series “B” Variable Capital Shares of DynaMéxico, in exchange for the settlement of accounts receivable from DynaMéxico in the amount of $31,090,710 Mexican Pesos (approximately $2.4 million USD). After the issuance and receipt of the 300 Series B Shares, DynaUSA holds 80% of the total outstanding Capital of DynaMéxico. The Company elected to become a voluntary reporting issuer in Canada in order to avail itself of Canadian regulations regarding reporting for mining properties and, more specifically, National Instrument 43-101 (“NI 43-101”). This regulation sets forth standards for reporting resources in a mineral property and is a standard recognized in the mining industry.
Reclassifications/Revision	Certain financial statement reclassifications have been made to prior period balances to reflect the current period’s presentation format; such reclassifications had no impact on the Company’s consolidated statements of operations or consolidated statements of cash flows and had no material impact on the Company’s consolidated balance sheets.
Significant Accounting Policies	The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application. The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements. The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items that: 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods presented.
Basis of Presentation	The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.
Principles of Consolidation	The financial statements include the accounts of DynaResource, Inc., as well as DynaResource de México, S.A. de C.V. (80% ownership), DynaResource Operaciones S.A. de C.V. (100% ownership) and Mineras de DynaResource S.A. de C.V. (100% ownership). All significant inter-company transactions have been eliminated. All amounts are presented in U.S. Dollars unless otherwise stated.
Non-Controlling Interest	The Company’s subsidiary, DynaResource de México S.A. de C.V, is 20% owned by Goldgroup Mining, Inc. On May 17, 2013, the ownership changed from 50% to 20%. The Company accounts for this outside interest as “non-controlling interest”.
Investments in Affiliates	The Company owns a 20% interest in DynaResource Nevada, Inc., a Nevada Corporation (“DynaNevada”), with one operating subsidiary in México, DynaNevada de México, S.A. de C.V. (“DynaNevada de México”), together “DynaNevada”. The Company accounts for this investment using the cost basis.
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. At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits.
Accounts Receivable and Allowances for Doubtful Accounts	The allowance for accounts receivable is recorded when receivables are considered to be doubtful of collection. As of December 31, 2016 and 2015, respectively, no allowance has been made.
Foreign Tax Receivable	Foreign Tax Receivable is comprised of recoverable value-added taxes (“IVA”) charged by the Mexican government on goods and services rendered. Under certain circumstances, these taxes are recoverable by filing a tax return. Amounts paid for IVA are tracked and held as receivables until the funds are remitted. The total amounts of the IVA receivable as of December 31, 2016 and December 31, 2015 are $1,083,364 and $597,012, respectively.
Inventory	Inventories are carried at the lower of cost or fair value and consist of mined tonnage, and gravity and flotation concentrates, and gravity tailings or flotation feed material. The inventories are $561,238 and $98,056 as of December 31, 2016 and December 31, 2015, respectively.
Proven and Probable Reserves (No Known Reserves)	The definition of proven and probable reserves is set forth in SEC Industry Guide 7 (“Industry Guide 7”). Proven reserves for which (1) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes, grade and/or quality are computed from the results of detailed sampling and (b) the sites for inspection, sampling and measurement are spaced so closely and the geological character is so well defined that size, shape, depth and mineral content of the reserves are well-established. Probable reserves are reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling, and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven (measured) reserves, is high enough to assume continuity between points of observations. As of December 31, 2016, none of the Company's properties contain resources that satisfy the definition of proven and probable reserves. The Company classifies the development of its properties, including the San Jose de Gracia Property, as exploration stage projects since no proven or probable reserves have been established under Industry Guide 7.
Property	Substantially all costs, including design, engineering, construction, and installation of equipment are expensed as incurred as the Company has not established proven and probable reserves on any of its properties. Only certain types of equipment which has alternative uses or significant salvage value, may be capitalized without proven and probable reserves. Depreciation is computed using the straight-line method with the exception of mining equipment. Mining equipment is depreciated using the units-of-production method based on tonnes processed over the estimated total mine life. Office furniture, equipment and light vehicles are being depreciated on a straight-line method over estimated economic lives ranging from 3 to 5 years. Leasehold improvements, which relate to the Company's corporate office, are being amortized over the term of the lease of 10 years. Trailers, heavy vehicles and other site equipment are being depreciated on a straight-line method over estimated economic lives from 5 to 15 years. Buildings are being depreciated on straight line method over an estimated economic life of 20 years. Design, Construction, and Development Costs: When proven and probable reserves as defined by Industry Guide 7 exist, development costs are capitalized and the property is a commercially minable property. Mine development costs incurred either to develop new ore deposits, expand the capacity of operating mines, or to develop mine areas substantially in advance of current production would be capitalized. Costs of start-up activities and costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations as incurred. Costs of abandoned projects are charged to operations upon abandonment. All capitalized costs would be amortized using the units of production method over the estimated life of the ore body based on recoverable ounces to be mined from proven and probable reserves. Certain costs to design and construct mining and processing facilities may be incurred prior to establishing proven and probable reserves. As no proven and probable reserves have been established on any of the Company's properties, design, construction and development costs are not capitalized at any of the Company's properties, and accordingly, substantially all costs are expensed as incurred, resulting in the Company reporting larger losses than if such expenditures had been capitalized. Additionally, the Company does not have a corresponding depreciation or amortization of these costs going forward since these expenditures were expensed as incurred as opposed to being capitalized. As a result of these and other differences, the Company's financial statements may not be comparable to the financial statements of mining companies that have established reserves.
Mining Properties Interests	Mineral property interests include acquired interests in development and exploration stage properties, which are considered tangible assets. The amount capitalized relating to a mineral property interest represents its fair value at the time of acquisition. When a property does not contain mineralized material that satisfies the definition of proven and probable reserves, such as with the San Jose de Gracia Property, capitalized costs and mineral property interests are amortized using the straight-line method once production begins. As of December 31, 2016, the mining interests have been in the pilot production stage and therefore, no amortization has been expensed. Mining properties consist of 33 mining concessions covering approximately 69,121 hectares at the San Jose de Gracia property (“SJG”), the basis of which are amortized on the unit of production method based on estimated recoverable resources. If it is determined that the deferred costs related to a property are not recoverable over its productive life, those costs will be written down to fair value as a charge to operations in the period in which the determination is made. The amounts at which mineral properties and the related costs are recorded do not necessarily reflect present or future values. Impairment of Assets: For operating mines, recoverability is measured by comparing the undiscounted future net cash flows to the net book value. When the net book value exceeds future net undiscounted cash flows, an impairment loss is measured and recorded based on the excess of the net book value over fair value. Fair value for operating mines is determined using a combined approach, which uses a discounted cash flow model for the existing operations and a market approach for the fair value assessment 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 related factors), production levels, operating costs, capital requirements and reclamation costs, all based on life-of-mine plans. The term "recoverable mineralized material" refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during processing and treatment of mineralized material. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company's estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold, silver and other commodity prices, production levels and costs and capital are each subject to significant risks and uncertainties. The recoverability of the book value of each property will be assessed annually for indicators of impairment such as adverse changes to 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 will be recorded when the expected future cash flow is less than the net book value of the property or when events or changes in the property indicate that carrying amounts are not recoverable. This analysis will be completed as needed, and at least annually. As of the date of this filing, no events have occurred that would require write-down of any assets. As of December 31, 2016 and 2015, no indications of impairment existed. Asset Retirement Obligation:
Pre Pilot-Production Costs	During 2015 and 2016, the Company has conducted rehabilitation activity at the San Pablo mine, and has refurbished the Pilot Mill Facility at San Jose de Gracia and, in general is preparing for test mining and pilot milling (“Pilot Production”) Operations. The costs associated with the rehabilitation, preparation, clean up and facilitation of this process are expensed as pre pilot-production costs.
Property Holding Costs	Holding costs to maintain a property on a care and maintenance basis are expensed in the period they are incurred. These costs include security and maintenance expenses, lease and claim fees and payments, and environmental monitoring and reporting costs.
Exploration Costs	Exploration costs are charged to operations and expenses as incurred. Exploration, development, direct field costs and administrative costs are expensed in the period incurred.
Foreign Currency Translation	The functional currency for the subsidiaries of the Company is the Mexican Peso. As a result, the financial statements of the subsidiaries have been re-measured from Mexican Pesos into U.S. dollars using (i) current exchange rates for monetary asset and liability accounts, (ii) historical exchange rates for nonmonetary asset and liability accounts, (iii) historical exchange rates for revenues and expenses associated with nonmonetary assets and liabilities and (iv) the weighted average exchange rate of the reporting period for all other revenues and expenses. In addition, foreign currency translation gains and losses are reported as a separate component of stockholders’ equity (comprehensive income (loss). The financial statements of the subsidiaries should not be construed as representations that Mexican Pesos have been, could have been or may in the future be converted into U.S. dollars at such rates or any other rates. Relevant exchange rates used in the preparation of the financial statements for the subsidiaries are as follows for the periods ended December 31, 2016 and December 31, 2015 (Mexican Pesos per one U.S. dollar): Dec 31, 2016 Dec 31, 2015 Current exchange rate Pesos 20.65 17.34 Weighted average exchange rate for the period ended Pesos 18.69 15.87 The Company recorded currency transaction losses of $(20,218) for the year ended December 31, 2016 and $(2,479,449) in 2015.
Income Taxes	The Company accounts for income taxes under ASC 740 “Income Taxes” Income from the Company’s subsidiaries in México are taxed at applicable Mexican tax law.
Use of Estimates	In order to prepare financial statement in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based.
Comprehensive Income (Loss)	ASC 220 “Comprehensive Income”
Revenue Recognition	The Company recognizes revenue in accordance with ASC 605-10, " Revenue Recognition in Financial Statements
Stock-Based Compensation	The Company accounts for stock options at fair value as prescribed in ASC 718. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option-pricing model and provides for expense recognition over the service period, if any, of the stock option. The Company accounts for stock options issued and vesting to non-employees in accordance with ASC Topic 505-50 “ Equity -Based Payment to Non-Employees”
Per Share Amounts	Earnings per share are calculated in accordance with ASC 260 “ Earnings per Share The Company had 3,593,689 warrants outstanding at December 31, 2016 exercisable at $2.50 per share, which upon exercise, would result in the issuance of 3,593,689 shares of common stock. The Company also had convertible debt instruments as of December 31, 2016 which, upon conversion at a valuation of $2.50 per share, would result in the issuance of 337,162 shares of stock. The Company had 4,345,497 warrants outstanding at December 31, 2015 exercisable at $2.50 per share. The Company also had convertible debt instruments as of December 31, 2015 which, upon conversion, would result in the issuance of 337,162 shares of stock. All warrant are exercisable at $2.50 per share. As the Company incurred a net loss during the period ended December 31, 2015, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive and, therefore, have been excluded from the computation. Years ended December 31 2016 2015 Net income $ 1,773,928 $ (14,504,553 ) Shares: Weighted average number of common shares outstanding, Basic 16,722,825 15,819,701 Diluted weighted average number of common shares outstanding, Diluted 18,560,464 15,819,701 Basic earnings per share $ 0.11 $ (0.92 ) Diluted earnings per share $ 0.09 $ (0.92 )
Fair value of Financial Instruments	The Company’s financial instruments consist of cash, receivables, payables and long-term debt. The carrying amount of cash, receivable and payables approximates fair value because of the short-term nature of these items. The carrying amount of long-term debt approximates fair value due to the relationship between the interest rate on long-term debt and the Company’s incremental risk adjusted borrowing rate.
Related Party Transactions	The Company has a formal policy that includes procedures intended to ensure compliance with the related party provisions in common practice for public companies. For purposes of the policy, a “related party transaction” is a transaction in which the Company participates and in which a related party (including all of Dyna’s directors and executive officers) has a direct or indirect material interest. Any transaction exceeding the 1% threshold, and any transaction involving consulting, financial advisory, legal or accounting services that could impair a director’s independence, must be approved by the Board of Directors. Any related party transaction in which an executive officer or a Director has a personal interest, must be approved by the Board of Directors, following appropriate disclosure of all material aspects of the transaction.
Recently Issued Accounting Pronouncements	FASB ASC 850, "Related Party Disclosures" requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.”

1. NATURE OF ACTIVITIES AND S23

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Nature Of Activities And Significant Accounting Policies Tables
Exchange rates	Dec 31, 2016 Dec 31, 2015 Current exchange rate Pesos 20.65 17.34 Weighted average exchange rate for the period ended Pesos 18.69 15.87
Per share amounts	Years ended December 31 2016 2015 Net income $ 1,773,928 $ (14,504,553 ) Shares: Weighted average number of common shares outstanding, Basic 16,722,825 15,819,701 Diluted weighted average number of common shares outstanding, Diluted 18,560,464 15,819,701 Basic earnings per share $ 0.11 $ (0.92 ) Diluted earnings per share $ 0.09 $ (0.92 )

2. INVENTORIES (Tables)

2. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2016
Inventories Tables
Inventory	2016 2015 Mined Tonnage, Gold-Silver Concentrates, and/or Gravity Tailings (Flotation Feed Material) $ 561,238 $ 98,056 Total Inventories $ 561,238 $ 98,056

3. PROPERTY (Tables)

3. PROPERTY (Tables)	12 Months Ended
	Dec. 31, 2016
Property Tables
Property	2016 2015 Mining camp equipment $ 399,180 $ 402,212 Transportation equipment 282,379 301,074 Machinery and equipment 470,741 509,298 Office furniture and fixtures 75,829 75,829 Office equipment 171,746 170,581 Sub-total 1,399,875 1,458,994 Less: Accumulated depreciation (821,132 ) (823,044 ) Total Property $ 578,743 $ 635,950

4. MINING CONCESSIONS (Tables)

4. MINING CONCESSIONS (Tables)	12 Months Ended
	Dec. 31, 2016
Mining Concessions Tables
Mining properties	2016 2015 San Jose de Gracia (“SJG”): Total Mining Concessions $ 4,132,678 $ 4,132,678

7. INCOME TAXES (Tables)

7. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes Tables
Deferred Tax Asset	2016 2015 Prior Year $ 17,535,800 $ 13,652,086 Tax Benefit for Current Year (533,317 ) 3,883,714 Total Deferred Tax Asset 17,002,483 17,535,800 Less: Valuation Allowance (17,002,483 ) (17,535,800 ) Net Deferred Tax Asset $ — $ —

8. STOCKHOLDERS' EQUITY (Tables

8. STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders Equity Tables
Series C Preferred Stock	Preferred Series C Carrying Value, December 31, 2014 $ - Issuances at Fair Value, net of issuance costs 3,955,000 Bifurcation of Derivative Liability (2,152,700 ) Relative Fair Value of Warrants – Preferred Stock Discount (2,106,426 ) Accretion of Preferred Stock to Redemption Value 4,637,179 Carrying Value, December 31, 2015 4,333,053 Issuances at Fair Value, net of issuance costs 0 Bifurcation of Derivative Liability 0 Relative Fair Value of Warrants – Preferred Stock Discount 0 Accretion of Preferred Stock to Redemption Value 0 Carrying Value, December 31, 2016 4,333,053
Warrants	Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Intrinsic Value Balance at December 31, 2014 1,259,650 $ 5.80 .96 $ - Granted 3,892,689 $ 6.25 $ Exercised - $ - $ - Forfeited (991,150 ) $ 4.69 $ - Balance at December 31, 2015 4,161,189 $ 3.07 3.17 $ - Granted - $ - $ - Exercised - $ - $ - Forfeited (567,500 ) $ 7.02 $ - Balance at December 31, 2016 3,593,689 $ 2.45 2.51 $ - Exercisable at December 31, 2016 3,593,689 2.45 2.51 $ -

10. COMMITMENTS AND CONTINGEN29

10. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments And Contingencies Tables
Leases	YEAR AMOUNT 2017 $68,881 2018 $80,969 2019 $82,775 2020 $84,581 2021 $86,387 TOTAL $403,593

11. DERIVATIVE LIABILITIES (Tab

11. DERIVATIVE LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
Preferred Series C Stock
Valuation assumption	2016 2015 Annual volatility rate 123 % 134 % Risk free rate 1.93 % 1.76 % Holding Period 5 years 5 years Fair Value of common stock $ 1.75 $ 1.65
Change in the fair value of the derivative liability	Year Ended 2016 2015 Fair value of derivative (stock), beginning of year $ 2,419,359 $ — Change in fair value of derivative 173,093 266,659 Fair value of derivative on the date of issuance — 2,152,700 Fair value of derivative(stock), end of year $ 2,592,452 $ 2,419,359
Preferred Series C Warrants
Valuation assumption	2016 2015 Annual volatility rate 123 % 134 % Risk free rate 1.93 % 1.76 % Holding Period 5 years 5 years Fair Value of common stock $ 1.75 $ 1.65
Change in the fair value of the derivative liability	Year Ended 2016 2015 Fair value of derivative (warrants), beginning of year $ 2,963,378 $ — Change in fair value of derivative (449,740 ) (62,380 ) Fair value of derivative on the date of issuance — 3,025,758 Fair value of derivative(warrants), end of year $ 2,513,638 $ 2,963,378

12. NON-CONTROLLING INTEREST (T

12. NON-CONTROLLING INTEREST (Tables)	12 Months Ended
	Dec. 31, 2016
Non-controlling Interest Tables
Changes in Non-controlling Interest	Year Ended December 31, 2016 Year Ended December 31, 2015 Beginning balance $ (6,461,950 ) $ (6,181,229 ) Operating income (loss) (283,333 ) (560,643 ) Share of Other Comprehensive Income (loss) 902,805 279,922 Ending balance $ (5,842,478 ) $ (6,461,950 )

13. FAIR VALUE OF FINANCIAL I32

13. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Of Financial Instruments Tables
Fair Value Measurement	December 31, 2016 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: None - - - - Totals $- $- $- $- Liabilities: Derivative Liabilities $ 5,106,090 — — 5,106,090 Totals $ 5,106,090 $ — $ — $ 5,106,090 Fair Value Measurement at December 31, 2015 Using: Assets: None — — — — Totals $ — $ — $ — $ — Liabilities: Derivative Liabilities $ 5,382,737 — — 5,382,737 Totals $ — $ — $ — $ —

1. NATURE OF ACTIVITIES AND S33

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2016	Dec. 31, 2015
Nature Of Activities And Significant Accounting Policies Details
Current exchange rate	20.65	17.34
Weighted average exhange rate for the period ended	18.69	15.87

1. NATURE OF ACTIVITIES AND S34

1. NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Nature Of Activities And Significant Accounting Policies Details 1
Net income	$ 1,773,928	$ (14,504,553)
Shares:
Weighted average number of common shares outstanding, Basic	16,722,825	15,819,701
Diluted weighted average number of common shares outstanding, Diluted	18,560,464	15,819,701
Basic earnings per share	$ 0.11	$ (0.92)
Diluted earnings per share	$ 0.09	$ (.92)

2. INVENTORIES (Details)

2. INVENTORIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventories Details
Gravity Tailings (Flotation Feed Material)	$ 561,238	$ 98,056
Inventory	$ 561,238	$ 98,056

3. PROPERTY (Details)

3. PROPERTY (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property Details
Mining camp equipment	$ 399,180	$ 402,212
Transportation equipment	282,379	301,074
Machinery and equipment	470,741	509,298
Office furniture and fixtures	75,829	75,829
Office equipment	171,746	170,581
Sub-total	1,399,875	1,458,994
Less: Accumulated depreciation	(821,132)	(823,044)
Total Property	$ 578,743	$ 635,950

3. PROPERTY (Details Narrative)

3. PROPERTY (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property Details Narrative
Depreciation expense	$ 77,638	$ 128,513

4. MINING CONCESSIONS (Details)

4. MINING CONCESSIONS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Mining Concessions Details
San Jose de Gracia ("SJG"): Total Mining Concessions	$ 4,132,678	$ 4,132,678

7. INCOME TAXES (Details)

7. INCOME TAXES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Details
Prior Year	$ 17,535,800	$ 13,652,086
Tax Benefit for Current Year	(533,317)	3,883,714
Total Deferred Tax Asset	17,002,483	17,535,800
Less: Valuation Allowance	(17,002,483)	(17,535,800)
Net Deferred Tax Asset	$ 0	$ 0

8. STOCKHOLDERS' EQUITY (Detail

8. STOCKHOLDERS' EQUITY (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Carrying Value, Beginning	$ 4,333,053
Accretion of Preferred Stock to Redemption Value	0	$ (4,637,179)
Carrying Value, Ending	4,333,053	4,333,053
Preferred Series C Stock
Carrying Value, Beginning	4,333,053	0
Issuances at Fair Value, net of issuance costs	0	3,955,000
Bifurcation of Derivative Liability	0	(2,152,700)
Relative Fair Value of Warrants-Preferred Stock Discount	0	(2,106,426)
Accretion of Preferred Stock to Redemption Value	0	4,637,179
Carrying Value, Ending	$ 4,333,053	$ 4,333,053

8. STOCKHOLDERS' EQUITY (Deta41

8. STOCKHOLDERS' EQUITY (Details 1) - Warrant - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of options
Outstanding, beginning of year	4,161,189	1,259,650
Granted	0	3,892,689
Exercised	0	0
Forfeited	(567,500)	(991,150)
Outstanding, end of year	3,593,689	4,161,189
Exercisable, end of year	3,593,689	4,161,189
Weighted average exercise price
Warrants Outstanding, Beginning	$ 3.07	$ 5.80
Warrants Granted	0	6.25
Warrants Exercised	0	0
Warrants forfeited	7.02	4.69
Warrants Outstanding, Ending	2.45	$ 3.07
Warrants Exercisable, Ending	$ 2.45
Weighted Average Remaining Contractual Life (Years)	3 years 2 months 1 day	11 months 16 days
Exercisable: Weighted Average Remaining Contractual Life (Years)	2 years 6 months 4 days	3 years 2 months 1 day
Intrinsic value	$ 0	$ 0

10. COMMITMENTS AND CONTINGEN42

10. COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2016USD ($)
Commitments And Contingencies Details
2,017	$ 68,881
2,018	80,969
2,019	82,775
2,020	84,851
2,021	86,387
Total	$ 403,593

11. DERIVATIVE LIABILITIES (Det

11. DERIVATIVE LIABILITIES (Details) - Preferred Series C Stock - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Annual volatility rate	123.00%	134.00%
Risk free rate	1.93%	1.76%
Holding Period	5 years	5 years
Fair Value of common stock	$ 1.75	$ 1.65

11. DERIVATIVE LIABILITIES (D44

11. DERIVATIVE LIABILITIES (Details 1) - Preferred Series C Stock - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair value of derivative, beginning of year	$ 2,419,359	$ 0
Gain on change in fair value of derivative	173,093	266,659
Fair value of derivative on the date of issuance	0	2,152,700
Fair value of derivative, December 31, 2016	$ 2,592,452	$ 2,419,359

11. DERIVATIVE LIABILITIES (D45

11. DERIVATIVE LIABILITIES (Details 2) - Preferred Series C Warrants - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Annual volatility rate	123.00%	134.00%
Risk free rate	1.93%	1.76%
Holding Period	5 years	5 years
Fair Value of common stock	$ 1.75	$ 1.65

11. DERIVATIVE LIABILITIES (D46

11. DERIVATIVE LIABILITIES (Details 3) - Preferred Series C Warrants - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair value of derivative, beginning of year	$ 2,963,378	$ 0
Gain on change in fair value of derivative	(449,740)	(62,380)
Fair value of derivative on the date of issuance	0	3,025,758
Fair value of derivative, December 31, 2016	$ 2,513,638	$ 2,963,378

12. NON-CONTROLLING INTEREST (D

12. NON-CONTROLLING INTEREST (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Non-controlling Interest Details
Noncontrolling interest	$ (6,461,950)	$ (6,181,229)
Operating income (loss)	(283,333)	(560,643)
Share of Other Comprehensive Income (loss)	902,805	279,922
Ending balance	$ (5,842,478)	$ (6,461,950)

13. FAIR VALUE OF FINANCIAL I48

13. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets:
Total Asset	$ 0	$ 0
Liabilities:
Derivative Liabilities	5,106,900	5,382,737
Total Liabilities	5,106,900	5,382,737
Fair value Level 1
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Fair value Level 2
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	0	0
Total Liabilities	0	0
Fair value Level 3
Assets:
Total Asset	0	0
Liabilities:
Derivative Liabilities	5,106,900	5,382,737
Total Liabilities	$ 5,106,900	$ 5,382,737