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

Dundee Precious Metals Inc.

February 21, 2008 08:01 ET

DPM Exploration Confirms Scope and Grade of Major Molybdenum Mineralization in Serbia

TORONTO, ONTARIO--(Marketwire - Feb. 21, 2008) - Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT) (the "Company" or "DPM") announced that further exploration work in Serbia continues to support the previously announced molybdenum (Mo) mineralization at its Surdulica Project in southeastern Serbia.

"The exploration program we conducted in late 2007 has confirmed the scope and grade of the Surdulica molybdenum rhenium project, of which less than 8% of the anomalous Mo 'footprint' has been drill tested by DPM to date. A thorough scoping study to cover all aspects of developing the Surdulica project during 2008 is underway and we are very excited by the potential of this rapidly advancing project," said Jonathan Goodman, President and CEO of DPM.

HIGHLIGHTS

- Soil sampling confirms the presence of a major zone of anomalous Mo over eight Km long and up to three Km wide.

- A 26,400 metre diamond drilling, RC drilling and trench sampling program has returned numerous significant intersections from both Mackatica and Borovik, with the majority of holes returning multiple wide Mo intersections.

- Detailed ground magnetics surveying strongly suggests that the Mackatica and Borovik Prospects form contiguous parts of a larger mineralized system.

- To date, less than 8% of the currently established soil sampling anomaly has been drill tested.

- Both Mackatica and Borovik Prospects are open in all directions with wide intersections being confirmed to greater than 300 metres vertical depth.

- Metallurgical sampling has been completed on diamond drill core obtained from the Borovik Prospect and testwork is underway.

- Independent engineers Arccon Mining Services of Perth have been commissioned to compile the scoping study, working in tandem with both DPM technical staff and other international and Serbian consulting groups, which is planned to be completed during Q2 2008.

MAIN INTERCEPTS

- Results from diamond drilling, Reverse Circulation ("RC") drilling and trench sampling have confirmed both the extent and tenor of the Mackatica and Borovik Prospects.

- Outstanding individual intercepts (which form part of multiple intersections within individual drill holes) include the following (using a 300ppm Mo cut off, 2m minimum interval and 2m maximum contiguous internal waste):

Note 1,000 ppm Mo equals 0.1% Mo



- Mackatica

- MCDD002 39m at 1,013ppm Mo from 5m.
- MCDD002 60m at 750ppm Mo from 189m
- MCDD003 150m at 732ppm Mo from 55m.
- MCDD006 123m at 510ppm Mo from 112m.
- MCDD022 160m at 738ppm Mo from 89m.
- MCDD029 59.4m at 638ppm Mo from 105.7.
- MCDD032 102m at 531ppm Mo from 0m.
- MCDD035 62m at 640ppm Mo from 82m.
- MCDD039 101m at 600ppm Mo from 243m.
- MCDD043 78.3m at 752ppm Mo from 152.7m
- MCDD053 46.5m at 898ppm Mo from 7.5m
- MCDT006 59.6m at 699ppm Mo from 304m
- MCRC006 187m at 611ppm Mo from 62m
- MCRC014 97m at 655ppm Mo from 146m.

- Borovik

- BVDD004 44m at 816ppm Mo from 136m.
- BVDD005 66m at 610ppm Mo from 54m.
- BVDT002 81.6m at 552ppm Mo from 117.4m.
- BVRC001 63m at 729ppm Mo from 44m.
- BVRC005 135m at 582ppm Mo from 0m.


Introduction

Following the recognition of potentially significant Mo and rhenium ("Re") mineralization at the Surdulica project DPM has undertaken an aggressive diamond and RC drilling program along with an extensive surface trench sampling program, the results of which have been received, validated and compiled. Figure 1 displays the location of the Surdulica Mo - Re project in southeastern Serbia.

Exploration Activities

Along with the multi-rig drilling program, a multi-disciplinary exploration programme is underway including regional geological and structural analysis, detailed geological and alteration mapping, ground magnetics surveying, geophysical property testing of core, systematic surface geochemical sampling and trenching. In addition, a representative suite of metallurgical samples has been collected from the Borovik core and sent to SGS Lakefield in Toronto for initial test work to compliment the work completed to date on the Mackatica drill core.

Table 1 summarizes the drilling and trenching completed at Mackatica and Surdulica from September to December 2007. A total of 26,472m of diamond drilling, RC drilling and trench sampling were completed, comprising 17,301m of diamond drilling, 5035m of RC drilling and 4136m of trenching. The Mackatica prospect was the initial focus of the programme and the onset of winter conditions precluded further drilling at Borovik. DPM's standard suite of drilling, sampling and assaying protocols was employed throughout the program, including strict monitoring of drilling and sample quality, duplicate and replicate sampling, use of internationally accredited standards and blanks, the submission of suites of samples to multiple laboratories and intensive QAQC monitoring. The samples were prepared at DPM's Bor sample preparation facility, and the sub samples were assayed at the Chelopech laboratory in Bulgaria, both of which are independently managed by SGS Laboratories.

All Mo assays have been received for the drilling to date, with the results for one trench at Borovik being outstanding at the time of compilation of this report. All samples also have been sent to SGS Lakefield in Toronto for detailed analysis of Re and a full suite of other elements including check analysis of Mo using the ICP-MS technique (inductively couple plasma followed by reading on a mass spectrometer). Results obtained by this technique on Mackatica samples have shown an extremely high correlation between Mo and Re grades. Results are awaited from the ICP-MS analyses.

Table 2 summarizes drilling and trenching results, using a 300ppm Mo cut off, in order to illustrate the following key points:

- The great majority of drill holes have returned multiple, thick intercepts, with average aggregate down hole intercept widths per hole in the range 60m to 80m.

- Similar weighted average Mo grades have been returned from Mackatica and Borovik ranging from 550ppm Mo to 590ppm Mo which correspond precisely with the targeted grade, based on the available historical data.



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Table 1
Mackatica and Borovik Prospects
2007 Drilling and Trenching Summary

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Borovik
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Phase Drilling Trench Total
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Diamond (m) RC (m) (m) (m)
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Proof of Concept 2078.4 899 2977.4
Initial 80m x 80m 1443.4 794 50 2287.4
Extension 80m x 80m
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Total 3521.8 794 949 5264.8
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Mackatica
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Phase Drilling Trench Total
------------------------
Diamond (m) RC (m) (m) (m)
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Proof of Concept 1710.1 2426 4136.1
Initial 80m x 80m 9182.4 2638 11820.4
Extension 80m x 80m 2886.6 1603 761 5250.6
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Total 13779.1 4241 3187 21207.1
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Program Total 17300.9 5035 4136 26471.9
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Prospect Number Maximum Average
of holes Depth (m) Depth (m)
---------------------------------------------------------
Mackatica 76 363.6 238.2
Borovik 19 340.1 227.2
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Total 95 363.6 236.0
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Tables 3 and 4 display significant individual intercepts for Borovik and Mackatica, respectively, using a 300ppm Mo cut off, 2m minimum intercept length and a maximum of 2m contiguous internal waste. Numerous thick, high grade intercepts have been returned, and it is stressed that these are individual intercepts in holes returning multiple zones. Appendix A contains a full listing of drill and trench intercepts for Borovik and Appendix B contains the full intercept listing for Mackatica, using a 300ppm Mo cut off grade.

The drilling carried out to date indicates that both Mackatica and Borovik are 'open' in all directions, with strong intercepts being returned at the peripheries of both sets of drilling and at depth, as shown in Figure 2, which shows the drilling and trench results overlaid on soil assays received to date in the vicinity of Mackatica and Borovik. The mineralization and alteration styles shown in drill core from both Mackatica and Borovik correspond to a 'molybdenum porphyry' style, albeit with a strong structural control. In addition, a programme of detailed ground magnetics surveying suggests that the alteration systems which host Mackatica and Borovik are contiguous and the two prospects form part of a significantly larger system, which is also borne out by the soil sampling results. Figure 3 displays a cross section from Mackatica and shows the typical wide mineralized zones encountered at both Mackatica and Borovik. The cross section also illustrates that the mineralized zones are open at depth.



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Table 2
2007 Program : Drilling and Trenching Summary
300 ppm Mo cut off

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Data type Number of Number Number Average Average Average
mineralized of Inter- of Inter- Intercept Inter- Mo
Holes/ sections cepts length cept_m (ppm)
Trenches per hole (m) per hole
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Mackatica
Trenches 31 54 2 12 20 506
Mackatica
Diamond
drilling 50 172 3 18 60 590
Mackatica RC
drilling 11 42 4 21 79 538
Borovik
Trenches 1 14 14 20 278 511
Borovik
diamond
drilling 14 65 5 8 75 545
Brovik RC
drilling 7 15 2 30 65 572
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Notes: (i) Diamond drilling includes diamond 'tails' of RC holes
(ii) RC drilling' is the proportion of a hole drilled by RC
methods
(iii) Minimum 2m intercept, maximum 2m contiguous waste
(iv) No top cut used


A suite of representative samples has been collected from the Borovik diamond core and sent to SGS Lakefield in Toronto for initial metallurgical testwork. The formal report on the Borovik testwork is pending.

A comprehensive database is maintained using Acquire software and the database is in the final stages of validation prior to being sent to RSG Global Coffey Mining in Perth, who have been commissioned to complete a National Instrument 43-101 ("NI 43-101") compliant resource estimate on the drilling and trenching to date as part of the scoping study.

Following the initial 'ridge and spur' soil sampling, a programme of grid based infill soil sampling has begun, using a 100m by 50m sampling pattern. Figure 4 displays gridded Mo data for all soil assays received to date, and clearly outlines a major zone of anomalous Mo some 8km long. The drilling completed to date covers less than 8% of the total anomalous Mo zone. As soon as snow cover clears, detailed infill soil sampling of the southern half of the Surdulica Exploration Licence will be completed in order to enable first pass trench sampling to be completed, followed by 'footprint' scale drill testing.

A key aim of the 2008 exploration programme at Surdulica is to determine the scale of Mo-Re mineralization at Surdulica in order to formulate key parameters for a pre-feasibility study, an essential part of which will be wide spaced 'footprint' drilling in order to provide an initial data source for updated NI 43-101 compliant resource estimates.

Arccon Mining Services of Perth has been commissioned to manage the scoping study and work in close conjunction with both DPM technical staff and a variety of international and Serbian consulting groups. Completion of the scoping study is anticipated during Q2 2008 in order to determine key metrics for a pre-feasibility study.

In addition, DPM has established a significant logistical base in Surdulica in order to facilitate management of this rapidly expanding project.

DPM is particularly encouraged by results obtained to date, which have confirmed the tenor and potential of the Surdulica Mo-Re project. The project will be a key focus for both exploration and engineering studies in Serbia during 2008, particularly given the strategic location of the project within Europe and the excellent infrastructure which exists very close to the project area.



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Table 3
Borovik
Significant individual intercepts
300 ppm Mo cut off

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Hole/Trench From To Interval Mo Sulphur Mo_M
Number (m) (m) (m) (ppm) (%) (ppm(x)m)
---------------------- -----------------------------------------------------
Diamond Drilling
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BVDD003 19.9 86 66.1 473 0.5 31286
BVDD004 29 73 44 614 1.9 27029
BVDD004 136 180 44 816 1.4 35908
BVDD005 54 120 66 610 2.6 40230
BVDD005 128 156 28 907 3.1 25401
BVDD006 249 296 47 444 2.1 20872
BVDT002 117.4 199 81.6 552 1.2 45039
BVDT002 219 285 66 495 0.8 32663
BVDT003 191 225 34 768 1.2 26119
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RC Drilling
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BVRC001 44 107 63 729 1.6 45942
BVRC002 65 110 45 577 1.4 25945
BVRC004 29 59 30 666 0.8 19969
BVRC005 0 135 135 582 1.7 78539
BVRC006 24 76 52 457 0.8 23782
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Trench
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BVTR001 495 533 38 537 0.1 20398
BVTR001 555 609 54 683 0.1 36884
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Note: (i) 2m minimum interval and 2m maximum contiguous waste
(ii) No upper cut applied


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Table 4
Mackatica
Significant individual intercepts
300 ppm Mo cut off

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Hole/Trench From To Interval Mo Sulphur Mo_M
Number (m) (m) (m) (ppm) (%) (ppm(x)m)
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Diamond Drilling
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MCDD001 49 66 17 1033 4.1 17561
MCDD002 5 44 39 1013 2.7 39491
MCDD002 153 174 21 939 1.5 19716
MCDD002 189 249 60 750 2.9 44985
MCDD003 2.1 48 45.9 756 2.5 34713
MCDD003 55 205 150 732 4.1 109818
MCDD006 112 235 123 510 1.9 62771
MCDD007 156 199 43 604 3.6 25985
MCDD008 219 250.3 31.3 675 1.7 21142
MCDD009 69 90 21 1141 3.7 23971
MCDD012 31 75 44 429 1.2 18861
MCDD013 135 168 33 568 1.7 18738
MCDD020 57.3 82 24.7 786 1.1 19426
MCDD022 89 249 160 738 2.6 118115
MCDD029 105.7 165.1 59.4 638 37890
MCDD032 0 102 102 531 1.0 54113
MCDD032 153 193 40 479 3.6 19142
MCDD033 0 21 21 1472 0.8 30912
MCDD035 82 144 62 640 2.1 39709
MCDD037 38 82 44 537 1.1 23645
MCDD039 243 344 101 600 3.2 60642
MCDD043 152.7 231 78.3 752 1.0 58858
MCDD045 28 63 35 647 2.8 22662
MCDD052 172 192 20 955 2.5 19099
MCDD053 7.5 54 46.5 898 1.0 41755
MCDT006 304 363.6 59.6 699 3.2 41678
MCDT014 220 264.5 44.5 622 3.0 27677
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RC Drilling
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MCRC006 62 249 187 611 2.5 114307
MCRC009 54 94 40 447 1.9 17890
MCRC014 81 178 97 655 2.5 63575
MCRC020 56 106 50 529 1.6 26470
MCRC021 146 182 36 655 2.9 23584
MCRC022 62 96 34 534 2.0 18156
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Mackatica Trenches
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MCTR044 0 42 42 464 0.0 19486
MCTR046 0 35 35 736 0.0 25765
MCTR059 6 36 30 707 0.1 21211
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Note: (i) 2m minimum interval and 2m maximum contiguous waste
(ii) No upper cut applied


Dr. Julian F. H. Barnes, a qualified person under NI 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. 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 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 INFORMATION

This news release contains "forward-looking information" or "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking information and forward-looking statements include, but are not limited to, statements with respect to the future prices of gold and other metals, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in this news release under and in the Company's annual information form under the heading "Risk Factors" and other documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.

To view Figure 1 of the Surdulica project, please visit the following link:

http://media3.marketwire.com/docs/dundeeFigure1.pdf

To view Figure 2 of the Surdulica project, please visit the following link:

http://media3.marketwire.com/docs/dundeeFigure2.pdf

To view Figure 3 of the Surdulica project, please visit the following link:

http://media3.marketwire.com/docs/dundeeFigure3.pdf

To view Figure 4 of the Surdulica project, please visit the following link:

http://media3.marketwire.com/docs/dundeeFigure4.pdf

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