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

Dundee Precious Metals Inc.

September 10, 2009 19:17 ET

DPM Exploration Confirms Two New Gold Discoveries in the Timok Magmatic Complex and Along Its Western Margin in Serbia

TORONTO, ONTARIO--(Marketwire - Sept. 10, 2009) - Dundee Precious Metals Inc.
(TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) (the "Company" or "DPM") announced that, as part of a limited program recently undertaken to delineate several key anomalies, drilling on the western margin of the Timok Magmatic Complex in northeastern Serbia has confirmed two gold discoveries with bulk tonnage potential.

HIGHLIGHTS

- COKA RAKITA GOLD PORPHYRY PROSPECT

--Exploration has defined a 1km by 500m strong gold in soil anomaly, in which trenching outlined encouraging gold grades throughout the extent of the anomaly.

-- Initial "scout" RC drilling and follow up diamond drilling of the Coka Rakita gold porphyry prospect has returned wide, consistent intersections of gold mineralization.

-- Three RC drill holes were completed late in 2008 with the following results:

-- RARC001: 10m at 0.64g/t Au from 32m.

-- RARC002: 57m at 1.47g/t Au from 73m to end of hole.

-- RARC003: 49m at 0.77g/t Au from 105m to end of hole.

-- Three successful diamond drill holes have been completed to date in 2009 (three were abandoned at the same dill pad due to drilling difficulties) with the following results:

--- RADD001: 47m at 2.15g/t Au from 85m (RADD001 is a 'twin' of RARC002)

--- RADD004: 14m at 1.19g/t Au from 57m

---RADD006: 116m at 1.15g/t Au from 57m - including 48m at 1.85g/t Au from 87m)

-- The gold mineralization style is typified by disseminated zones hosted in strongly silica-carbonate-pyrite altered intermediate intrusives.

-- Less than 10% of the gold soil anomaly has been tested by drilling to date.

- KRAKU PESTER SEDIMENT HOSTED ('CARLIN STYLE') PROSPECT

-- Exploration of the greater than 25km long West Timok sediment hosted ('Carlin style') mineralized province has outlined numerous prospects in which wide zones of gold mineralization were intersected by trench sampling.

-- Gold mineralization is associated with deformed and silicified limestones, marble and skarns, sediments and tuffs, intruded by andesites and monzonites.

-- One of the higher ranking targets, Kraku Pester, is characterized by a +1km long soil anomaly with a typical 'Carlin' geochemical signature and trenching has returned consistent mineralized widths in excess of 50m.

-- The first diamond drill hole at Kraku Pester has intersected the following:

--- PEDD001: 63.5m at 1.5g/t Au from 2.5m, including 28.3m at 2.35g/t Au from 11.7m.

-- A follow-up drill hole is being set up in order to confirm the dip of the mineralization and tenor some 80m away from PEDD001, down dip.

BACKGROUND

DPM has been undertaking a multi-disciplinary exploration program in the Timok Magmatic Complex and its Western margin since 2006. Several styles of mineralization have been identified, including the following:
- Porphyry Cu-Au-Ag-Mo.
- High sulphidation Au-Cu-Ag.
- Epithermal Au-Ag.
- Porphyry Au
- Sediment hosted ('Carlin' style) Au

The first three mineralization styles have been well documented in the Timok because they comprise the giant Bor and Madjanpek deposits. The latter two styles above were unknown until DPM commenced exploration in the Timok.

The multi-disciplinary exploration approach has involved the intensive collection and interpretation of data including aerial and ground geophysics and 3D modeling, soil sampling, geochemical data manipulation, geological mapping, compilation of 3D regional geological models, petrology and metallurgy, trench sampling and drilling. As a result of the exploration program, two new styles of gold mineralization were found to exist in the Timok Magmatic Complex and adjacent to it.

A drilling program initiated in July 2009, was designed to test the first porphyry Au target, Coka Rakita, and a high ranking sediment hosted target, Kraku Pester. The location of these prospects within DPM licenses is shown in Figure 1.

At Coka Rakita the northernmost part of the 1km by 500m soil anomaly has been chosen for an initial drill test, primarily to confirm the mineralization style and gold grades, determine the geometry of the mineralization and obtain material for preliminary metallurgical testing (an inherent part of the DPM standard exploration procedures).

At Kraku Pester, a two hole program has been designed to obtain the same information as at Coka Rakita, and in particular to determine the dip of the mineralization.

RESULTS

COKA RAKITA

Figure 2 shows the Coka Rakita gold soil anomaly and the location of the initial RC and diamond drill testing. It should be noted that the area is characterized by very poor exposure and deep soil cover. Throughout the soil anomaly, where trenches have been able to penetrate to bedrock, encouraging gold intersections have been returned. Mineralization is hosted in andesites and monzonites and is located close to the eastern boundary of the polyphase Potaj Cuka monzonite intrusion. Figure 3 shows the northern sector of the Coka Rakita gold anomaly and the interpreted NW trending zone that is the subject of the initial drill testing. Tables 1 and 2 summarize drill intercepts to date at a 1.0g/t Au and 0.4g/t Au cut off, respectively, and Table 3 shows the collar coordinates.



Table 1: Coka Rakita drill assays at a 1.0 g/t cut off with a minimum
interval of 5m and a maximum dilution of 5m.

----------------------------------------------------------------------------
Hole From (m) To (m) Interval (m) Au g/t Gram Metres Ag g/t
----------------------------------------------------------------------------
RADD001 91 131 40 2.45 98 1.2
----------------------------------------------------------------------------
RADD004 44 53.7 9.7 1.46 14 0.4
----------------------------------------------------------------------------
RADD006 87 135 48 1.85 89 1
----------------------------------------------------------------------------
RADD006 144 150 6 1.74 10 0.5
----------------------------------------------------------------------------
RADD006 164 173 9 1.06 9 0.6
----------------------------------------------------------------------------
RARC002 106 128 22 2.91 64 1.3
----------------------------------------------------------------------------
RARC003 132 146 14 1.63 22 1.1
----------------------------------------------------------------------------
Note: RARC denotes a reverse circulation drill hole and RADD denotes a
diamond drill hole


Table 2: Coka Rakita drill assays at a 0.4 g/t cut off with a minimum
interval of 5m and a maximum dilution of 5m.

----------------------------------------------------------------------------
Hole From (m) To (m) Interval (m) Au g/t Gram Metres Ag g/t
----------------------------------------------------------------------------
RADD001 72 77 5 0.86 4 0.5
----------------------------------------------------------------------------
RADD001 85 132 47 2.15 101 1.1
----------------------------------------------------------------------------
RADD001 210 215 5 0.64 3 0.7
----------------------------------------------------------------------------
RADD004 43 57 14 1.19 16 0.8
----------------------------------------------------------------------------
RADD006 57 173 116 1.15 134 0.9
----------------------------------------------------------------------------
RARC001 2 7 5 0.41 2 1.4
----------------------------------------------------------------------------
RARC001 32 42 10 0.63 6 0.5
----------------------------------------------------------------------------
RARC002 73 130 57 1.47 84 0.9
----------------------------------------------------------------------------
RARC003 3 8 5 0.57 2 0.7
----------------------------------------------------------------------------
RARC003 106 126 20 0.44 8 1.3
----------------------------------------------------------------------------
RARC003 132 153 21 1.27 26 0.9
----------------------------------------------------------------------------


Table 3: Collar co-ordinates for Coka Rakita drilling

----------------------------------------------------------------------------
Hole Grid EAST NORTH RL Dip DEPTH
----------------------------------------------------------------------------
RARC001 UTM(WGS84)34N 572845.22 4895918.52 885.81 -60 46
----------------------------------------------------------------------------
RARC002 UTM(WGS84)34N 572783.92 4896004.84 889.12 -60 130
----------------------------------------------------------------------------
RARC003 UTM(WGS84)34N 572849.82 4896027.77 902.20 -60 154
----------------------------------------------------------------------------
RADD001 UTM(WGS84)34N 572780.00 4896007.00 889.12 -60 246.2
----------------------------------------------------------------------------
RADD004 UTM(WGS84)34N 572814.00 4895890.00 867.00 -60 145.8
----------------------------------------------------------------------------
RADD006 UTM(WGS84)34N 572902.00 4896034.00 900.80 -50 250
----------------------------------------------------------------------------


The drilling to date at Coka Rakita is considered very encouraging, as the style of mineralization and the extent of the gold soil anomaly highlights the potential for a large tonnage, porphyry-gold style mineralized deposit.

Trench highlights include:

- RATR002: 63m at 0.64g/t Au

- RATR007: 50m at 0.39g/t Au

- RATR008: 38m at 0.49g/t Au

- RATR016: 24m at 1.92g/t Au

KRAKU PESTER

Figure 4 shows the location of the Kraku Pester prospect in the West Timok, sediment hosted gold province and shows a detail of the Carlin-geochemical scoring image. Figure 5 shows details of the geology, trench sampling and the location of diamond drill hole PEDD001.

Tables 4 and 5 summarize the intersection for diamond drill hole PEDD001 and Table 6 the collar coordinates. Assays are pending from 66m to the bottom of hole, which is dominated by the Potaj Cuka composite intrusive. Ag assays from the first 66m are also pending.



Table 4: Kraku Pester drill assays at a 1.0 g/t cut off with a minimum
interval of 5m and a maximum dilution of 5m.

-------------------------------------------------------------
Hole From (m) To (m) Interval (m) Au g/t Gram Metres
-------------------------------------------------------------
PEDD001 11.7 40 28.3 2.35 66
-------------------------------------------------------------
PEDD001 60 66 6 1.18 7
-------------------------------------------------------------


Table 5: Kraku Pester drill assays at a 0.4 g/t cut off with a minimum
interval of 5m and a maximum dilution of 5m

-------------------------------------------------------------
Hole From (m) To (m) Interval (m) Au g/t Gram Metres
-------------------------------------------------------------
PEDD001 2.5 66 63.5 1.53 97
-------------------------------------------------------------


Table 6: Collar co-ordinates for Kraku Pester drill hole PEDD001

------------------------------------------------------------------------
Hole Grid EAST NORTH RL DIP DEPTH
------------------------------------------------------------------------
PEDD001 UTM(WGS84)34N 569997 4894490 556.6 -60 143.6
------------------------------------------------------------------------


The next planned hole at Kraku Pester is underway and is designed to intersect the mineralization 80m down dip from PEDD001 in order to determine the dip, provide further information on the tenor of mineralization and to provide additional core for preliminary metallurgical testing.

The Kraku Pester drilling is considered extremely encouraging, as it is one of many targets within the Western Timok sediment hosted gold province. In addition, recently completed stream sediment sampling has indicated that soil sampling to date has tested less than 30% of the overall 'footprint' of anomalous stream sediment samples, which extend significantly to the west and which define the geochemical signature of the sediment hosted gold province. Follow-up soil sampling is underway, along with first-phase detailed geological mapping.

Trench highlights include:

- PETR001: 60m at 0.41g/t Au and 23m at 0.7g/t Au

- PETR002: 18m at 1.81g/t Au and 28m at 3.03g/t Au

- PETR028: 54m at 0.40g/t Au

- PETR033: 50m at 1.10g/t Au

- PETR035: 58m at 1.57g/t Au

Sampling and Analysis

For the majority of the trench sampling program a two metre sample interval has been used and the samples have been prepared at the SGS managed laboratory facility at Bor, eastern Serbia and have been assayed at the SGS managed laboratory at Chelopech in Bulgaria. Following DPM Exploration standard procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards have been submitted with each batch of samples. Diamond drill core has been prepared and assayed at the SGS managed laboratory at Chelopech in Bulgaria. A one metre sampling interval has been used where possible for the Kraku Pester and Coka Rakita diamond drilling program. RC drill assay samples were prepared in the SGS managed laboratory facility at Bor and assayed at the SGS managed laboratory at Chelopech in Bulgaria. Sampling was undertaken on a one metre basis using strict DPM procedures to ensure the highest possible sample quality.

Dr. Julian F. H. Barnes, a qualified person under National Instrument 43-101 and Executive Vice President of DPM, has supervised the preparation of the technical data included in this press release.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development and mining of precious metals. DPM owns the Chelopech Mine, a producing gold/copper mine, and the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, as well as a 95% interest in the Kapan Mine in Armenia. In addition, it is engaged in mineral exploration activities in Serbia.

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.

To view the Appendices, please visit the following link: http://media3.marketwire.com/docs/AppendicesNRSerbia.pdf

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