DPM and Chelopech Mining Raise Final US$14.5 Million of Chelopech Project Financing Through Raiffeisenbank

TORONTO, ONTARIO--(Marketwire - May 10, 2011) - Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) (the "Company" or "DPM") and its wholly-owned subsidiary, Chelopech Mining EAD ("Chelopech"), are pleased to announce the signing today of a US$14.5 million long-term loan agreement with Raiffeisenbank (Bulgaria) EAD ("Raiffeisenbank"). The proceeds from this loan will be used to further assist in the financing of the Chelopech US$150 million mine and mill expansion in Bulgaria, which is currently underway and will double mine and mill output to 2 million tonnes of ore per year.

"This completes US$81.25 million in long term debt financing that was originally anticipated when we started the debt raising process," said Jonathan Goodman, President and CEO of DPM. "Although higher metal prices may preclude the need for the monies, we believe that conservative planning in these volatile markets, in addition to the flexibility gained from a syndicate of three institutions, is in the best interests of the Company. We wish to thank Raiffeisenbank for their interest and support and welcome them to our lending group," he said.

"Raiffeisenbank is one of the leading companies in corporate financing on the local market. The partnership with Chelopech Mining is more proof of the effective support our bank provides for Bulgarian businesses," said Momtchil Andreev, CEO of Raiffeisenbank (Bulgaria).

The loan agreement with Raiffeisenbank concludes US$81.25 million in long-term debt financing arrangements for the Chelopech expansion, which commenced with the US$66.75 million financing with the European Bank for Reconstruction and Development and Unicredit Bulbank ("Unicredit") that was put in place in December 2010.

The Raiffeisenbank loan, which is guaranteed by DPM and secured by a share pledge, is repayable in 10 equal semi-annual instalments, commencing June 2013 and bears interest at a rate of LIBOR plus 3.25% until project completion and LIBOR plus 2.80% thereafter. The Raiffeisenbank loans are subject to a cash sweep which obligates Chelopech to prepay up to an aggregate amount of 30% of Chelopech surplus cash flow rateably to Raiffeisenbank and Unicredit. This mandatory prepayment is limited to the equivalent of two years of Raiffeisenbank and Unicredit loan repayment.

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.

Raiffeisenbank (Bulgaria) EAD (www.rbb.bg) was established in 1994. The bank is fully owned by Raiffeisen Bank International AG ("RBI"). RBI regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe ("CEE") as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. RBI is the only Austrian bank with a presence in both the world's financial centres and in Asia, the group's further geographical area of focus. Around 60,000 RBI employees service about 14 million customers through around 3,000 business outlets, the great majority of which are located in CEE. RBI is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG ("RZB"). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI's shares are listed on the Vienna Stock Exchange.

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.