Council of Ministers Approves Granting of Krumovgrad Mining Concession

TORONTO, ONTARIO--(Marketwire - Feb. 9, 2011) - Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) ("DPM" or "the Company") is pleased to announce that the Council of Ministers of the Republic of Bulgaria has today approved the granting of a 30 year concession to Balkan Mineral and Mining EAD to develop the Khan Krum Deposit in Krumovgrad. 

The Council of Minister's resolution is subject to publication in the State Gazette of the Republic of Bulgaria. Exercise of the concession rights by the Company is also subject to a positive environmental impact assessment ("EIA") resolution being issued by the Minister of Environment and Waters.

"Approval of the 30 year concession is another step forward towards building a mine at Krumovgrad. The next major step is the EIA process which is currently in the public consultation phase", said Jonathan Goodman, President and CEO of DPM. 

The new project scope for the Krumovgrad gold deposit involves a significantly reduced operating footprint with one major landowner, one single integrated tailings and mine waste facility, a simplified processing route that does not require the use of cyanide and a longer operating life than previously considered. The changes that have led to this new scope are based on community feedback on the earlier project proposal. For this project the EIA permit and compatibility with the European Union legislative requirement to protect habitats and species are the only major environmental approvals required.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development, mining and processing of precious metals properties. The Company's operating interests include its 100% ownership of Chelopech Mining EAD, its principal asset being the Chelopech mine, a gold, copper, silver concentrates producer located east of Sofia, Bulgaria, a 100% ownership of Namibia Custom Smelters (Pty) Ltd., a concentrate processing facility located in Tsumeb, Namibia, and a 100% interest in Deno Gold Mining Company CJSC, its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located in southern Armenia. DPM's interests also include a 100% interest in the Krumovgrad development stage gold property located in south eastern Bulgaria, near the town of Krumovgrad and certain exploration and exploitation properties in Serbia.

FORWARD-LOOKING STATEMENTS

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