October 10, 2003

News Release: Dynatec Corporation Announces C$50 Million 'Bought Deal'Financing

Dynatec Corporation (DY-TSX) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Griffiths McBurney &Partners and Salman Partners Inc., and including Merrill Lynch Canada Inc., Paradigm Capital Inc. and National Bank Financial Inc., which have agreed to purchase, on a bought deal basis, 40,000,000 common shares of the Company at a purchase price of $1.25 per share, for aggregate gross proceeds of $50 million. The underwriters will also have the option to purchase up to an additional 4,000,000 common shares at the issue price on or prior to the closing date for additional gross proceeds of $5 million. The Company plans to use the net proceeds of this financing for the advancement of its mineral properties, including the Ambatovy nickel project in Madagascar and the Sudbury Joint Venture nickel-copper-precious metals projects, and for general corporate purposes. The common shares to be issued under this offering will be offered by way of a short form prospectus in all of the provinces in Canada and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on October 30, 2003 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State of the United States in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

About Dynatec Corporation

Dynatec Corporation is a growing mining company with significant mining, drilling and metallurgical operations. The Company's expertise has been developed over a 23-year history as a leading service provider to the mining industry. Dynatec's strategy is to grow and create value by applying its extensive capabilities to direct ownership in attractive projects. The Sudbury Joint Venture, which commenced production of nickel, copper, platinum, palladium and gold in May 2003, was the first example of this strategy in action. The Company's agreement to earn a 53% interest in the Ambatovy nickel project in Madagascar is the next step, one that will accelerate Dynatec's plans to become Canada's next major mining company. For more information about Dynatec and its business strategy, please see the Company's website at www.dynatec.ca.

This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward- looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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For further information: please contact: Dynatec Corporation, Mark Utting, Director, Communications &Investor Relations, (905) 780-1980 Ext. 329, (905) 780-1990 (Fax), Email: utting(at)dynatec.ca

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