Positive Pre-Feasibility Study And Encouraging New Exploration Results For Timok Gold Project

TORONTO - Dundee Precious Metals Inc. reported on the pre-feasibility study (PFS) for its Timok Gold Project in Serbia. The PFS is focused on the development of the oxide and transitional portions of the project and confirms Timok’s potential as an attractive organic growth opportunity within the Company’s portfolio. Based on the results of the PFS, the Company has received Board approval to proceed with a feasibility study (FS).

Highlights: Positive pre-feasibility study results, including: After-tax NPV5% of $135 million and internal rate of return of 21% (based on a $1,500 per ounce gold price assumption); 547,000 gold ounces recovered over an 8-year mine life, with annual gold production estimated to average approximately 80,000 ounces in years 1 to 6, and approximately 70,000 ounces per year over the life of mine; Life of mine average all-in sustaining cost of $693 per ounce; Initial capital cost estimate of $211 million; Opportunity to optimize capital costs: DPM has identified a number of initiatives to reduce the initial capital estimate and optimize overall economics, including the potential for contractor mining, which will be evaluated as part of the FS; Potential to add additional existing resources to the mine plan: While the FS will continue to focus on the oxide portion of the deposit, there is potential to incorporate additional existing Mineral Resources into the mine plan by processing the sulphide portion of the ore body, which will be evaluated in parallel with the FS. Timok contains an additional 1.3 million ounces in Indicated Mineral Resources, contained within 32.3 million tonnes (Mt) at a grade (g/t) of 1.27 g/t; Adding value through exploration: Encouraging new results from exploration activities, which were focused on adding resources to extend the project life, including: 40.5 meters at 2.83 g/t Au from drill hole BIDD125 at the Chocolate South oxide prospect; and 36 meters at 5.26 g/t Au, including 7 meters at 14.45 g/t Au, from drill hole RADD013 at the new Coka Rakita sulphide prospect.

“The Timok project continues to advance as a potential future growth opportunity for DPM,” said David Rae, President and Chief Executive Officer. “With additional optimization opportunities to enhance the project and very encouraging exploration results, we believe Timok represents an attractive opportunity to provide organic growth in a region where we have had a presence for many years.”