Ares Dynamic Credit Allocation Fund : Section 19(a) – July 2021

The Ares Dynamic Credit Allocation Fund

Important Information Regarding Your Fund's Distribution

July 30, 2021:

The following table provides an estimate of the source of the July 30, 2021 distribution made by Ares Dynamic Credit Allocation Fund, Inc. (the "Fund"), based on the Fund's calendar year-to-date activity. This information is being provided pursuant to Section 19(a) of the Investment Company Act of 1940, as amended. This is not intended to be used, nor should it be used, by stockholders in preparing any tax return, determining the amount of any tax due, or for any other tax reporting purposes.

Ordinary

Long-Term

Interest-

Payable

Per Share

Taxable

Capital

Return of

Related

Date

CUSIP

Distribution

Income

Gains(1)

Capital(2)

Dividends(3)

7/30/2021

04014F102

$0.0975

$0.0975

$ --

$ --

50.73%

1. May represent current period realized capital gains, which are subject to change based on the Fund's investment activity through its calendar year-end. Should the Fund's net income or capital gains position change, the calendar year-to-date amounts will be updated to reflect those changes.
2. This amount may represent a return of the stockholders' principal, unrealized capital gains that may be recognized prior to the Fund's calendar year-end, or some combination thereof. Should the Fund's net income or capital gains position change, the calendar year-to-date amounts will be updated to reflect those changes.
3. Percentage of Dividends which are Interest-Related Dividends (commonly referred as Qualified Interest Income) in accordance with IRC §871(k), that may be exempt from U.S. withholding tax when distributed to non-U.S. stockholders.

In 2022, the Fund will send to stockholders such tax information reporting forms (e.g., Internal Revenue Service Form 1099-DIV) as are required by applicable law. Those tax information reporting forms will contain information that the tax authorities require the Fund to provide to stockholders, which includes information about how the Fund is reporting the character of distributions paid by the Fund to the applicable tax authorities along with other information required to be reported under applicable law.

The Fund does not provide tax advice. Stockholders should consult with their own tax advisors as to the tax consequences of the source of any distributions by the Fund, or any other aspect of holding stock in the Fund. Any statements as to U.S. tax matters contained in the notice were not intended or written to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.