Dundee Precious Metals Inc.
TSX : DPM
TSX : DPM.WT

Dundee Precious Metals Inc.

December 21, 2007 09:31 ET

DPM Acquires Additional Interest in Kapan Mine in Armenia

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2007) - Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT) (the "Company" or "DPM") is pleased to announce that it has completed the purchase of a further 15% interest in Vatrin Investment Limited ("Vatrin"), a private entity, and now holds an aggregate 95% interest in Vatrin. Vatrin holds 100% of Deno Gold Mining Company, with its principal asset, the Kapan mining project, located in southern Armenia (the "Kapan Mine").

The net purchase price, which amounted to US$4.7 million, was satisfied through a combination of cash and the issuance of 337,033 common shares of DPM.

The Kapan Mine is located approximately 1.5km from the town of Kapan and some 320km south of the Armenian capital of Yerevan. It is an operating mine that is being treated, operationally, as a development project as plans are to convert much of it to an open pit. The Company is currently undertaking proof of concept drilling in Armenia to assist in defining two starter pits, previously identified by Russian historical drilling, and a future strategy for the development of the Kapan Mine.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development and mining of precious metals. It currently owns the Chelopech Mine, a producing gold/copper mine and the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, and is engaged in mineral exploration activities in Serbia. In addition, DPM owns a 100% interest in the Back River gold exploration project in Nunavut, Canada and a 95% interest in the Kapan Mine in Armenia. The Company also holds a significant and strategic portfolio of investments in the precious metals and mineral related sector.

FORWARD LOOKING STATEMENTS

This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors" which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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