Dundee Precious Metals Inc.
TSX : DPM

Dundee Precious Metals Inc.

February 20, 2007 21:38 ET

DPM 2006 Year End Financial Results

SOLID BALANCE SHEET AND ASSET GROWTH CONTINUE STRONG EXPLORATION FOCUS FOR 2007

TORONTO, ONTARIO--(CCNMatthews - Feb. 20, 2007) -

(All amounts have been expressed in Canadian dollars except where indicated.)

Dundee Precious Metals Inc. (TSX:DPM) ("Dundee Precious", "DPM" or "the Company") reported its 2006 year end financial results with continued strength on its balance sheet and improved and expanded operations.

"2006 has been an eventful year for the Company. DPM has achieved significant financial results from both its mining operations and its investment activities. We have expanded our asset base with a new mining property in Armenia, the commencement of an exciting exploration program in Serbia and the continuation of advanced exploration activities in northern Canada", said Jonathan Goodman, President and CEO of Dundee Precious. "In Bulgaria, the Chelopech Mine has been awarded the European Green Apple Gold prize in recognition of the environmental remediation work undertaken at the site. The Company's development plans have also been prepared in compliance with some of the strictest environmental laws in the world. DPM is prepared to make significant investments in the country that will be of considerable benefit to the communities and the State. We are confident the government will recognize this and support our future plans," he added.

HIGHLIGHTS

- DPM had net earnings of $18.4 million or $0.34 per share ($0.33 per share on a diluted basis) for the three months ended December 31, 2006, compared with net earnings of $6.2 million or $0.11 per share for the three months ended December 31, 2005. In 2006, DPM had net earnings of $69.7 million or $1.29 per share ($1.26 on a diluted basis) in comparison to the prior year's net earnings of $19.9 million or $0.37 per share.

- As at December 31, 2006, the Company had working capital of $40.7 million and an investment portfolio with a market value of $189.5 million, which in the aggregate equated to $4.26 per share, down from $5.12 per share at December 31, 2005.

- The Chelopech gold/copper mine reported revenue of $29.5 million on sales of 25,366 tonnes of gold/copper concentrate for the three months ended December 31, 2006, as a result of high commodity prices. For the year ended December 31, 2006, Chelopech had revenues of $106.2 million on sales of 64,939 tonnes of gold/copper concentrate. Kapan had revenues of $4.7 million for the four months ended December 31, 2006 on sales of 1,300 tonnes of gold/copper concentrate and 1,702 tonnes of zinc concentrate.

- Investment activities generated investment income of $23.1 million and $68.7 million for the three and twelve months ended December 31, 2006, respectively.

SIGNIFICANT CURRENT EVENTS

- On October 24, 2006, the Bulgarian Court ruled in favour of the Company's claim that the Minister of Environment and Waters ("MoEW") failure to issue a final resolution on the Chelopech Environmental Impact Assessment ("EIA") was unlawful and should be interpreted as a silent refusal and has ordered the Minister to issue a final resolution on the project. The MoEW has appealed the decision and a hearing is scheduled for February 22, 2007.

- The MoEW continues to withhold approval of the Chelopech EIA. It has been reported in the press that the MoEW wants additional State participation in the project. DPM's position is that the royalty rate is globally competitive and that the existing concession agreement, which is with the Ministry of Economy and Energy on behalf of the Republic of Bulgaria, cannot be unilaterally altered.

- On February 13, 2007, the Supreme Administrative Court of Bulgaria revoked the silent refusal of the MoEW on the Krumovgrad EIA. The Environmental Protection Act does not provide for a silent refusal and therefore, the MoEW has been required to issue a pronouncement on the EIA. This decision is open to appeal to the five member panel Court of Appeal in Bulgaria for fourteen days from receipt of official notification by the parties.

- As the market for high arsenic bearing concentrate weakens, and the final approval of the Chelopech EIA is further delayed, the Company continues assessing alternative locations for its proposed metal processing facilities. This situation will likely result in a slowing down or suspension of operations at Chelopech in 2008 until facilities capable of processing the Chelopech material can be constructed and commissioned or alternative markets for the Chelopech concentrate can be found.

A complete set of DPM's consolidated financial statements and the Management's Discussion and Analysis for the year ended December 31, 2006 are posted on our website at www.dundeeprecious.com and have been filed on Sedar at www.sedar.com.

An analyst conference call is scheduled for Wednesday, February 21, 2007 at 8:30 a.m. (EST) to present these results and will be webcast live at http://phx.corporate-ir.net/playerlink.zhtml?c=69218&s=wm&e=1471230. The audio webcast for this conference call will be archived and available on the Company's website.

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, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and an 80% 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 "Risks 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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