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

Dundee Precious Metals Inc.

September 12, 2008 12:50 ET

DPM Exploration Defines a Cluster of Cu-Au-Mo-Ag Porphyries in the Coka Kuruga Mining Concession, Bor District, Eastern Serbia

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2008) - Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT) (the "Company" or "DPM") announced that exploration in the Coka Kuruga Mining Concession, Bor District, eastern Serbia has delineated a series of Cu-Au-Mo-Ag mineralized porphyry style bodies. Initial diamond drilling ("DD") and reverse circulation ("RC") drilling has confirmed multiple wide mineralized intercepts.

"Our exploration program at Coka Kuruga has confirmed a cluster of mineralized porphyries, which we are aggressively drilling to define and 'fast track' an open-pit copper-gold-molybdenum project. Initial pattern drilling of the first target, Valja Strz, has confirmed wide zones of near surface mineralization which we have tracked for more than 450 metres vertical depth" said Jonathan Goodman, President and CEO.

HIGHLIGHTS

- Multi-disciplinary exploration has identified a cluster of structurally controlled, Cu-Au-Mo-Ag mineralized 'porphyry style' bodies.

- Initial pattern drilling of the first target, Valja Strz (121 DD and RC holes completed for 27,153.3m), has confirmed broad mineralized zones over 700m along strike, and 300m wide that have been traced to more than 450m vertical depth.

- Scout drilling of adjacent targets has demonstrated additional near surface mineralization, suggesting that a series of open-pittable porphyry bodies will be defined with further pattern drilling.

- Numerous additional targets have been identified within a 5km by 4km area.

- DPM in house modelling supports the potential for Valja Strz to host an economic deposit, with a NI 43-101 resource to commence upon receipt of final assays.

MAIN INTERCEPTS

Table 1 highlights key intercepts.

In situ copper ("CuEq") and gold equivalent ("AuEq") grades are based on the following metal prices: Au: US$850/oz, Ag: US$16/oz, Cu: US$2.50/lb, Mo: US$20/lb.

BACKGROUND

DPM's Serbian exploration team has carried out an aggressive, multi-disciplinary exploration program on the Coka Kuruga Mining Concession, in eastern Serbia since 2006. Figure 1 shows the location of the project area. Exploration targets have included both porphyry Cu-Au-Mo and high-sulphidation Cu-Au-Ag systems. The multi-disciplinary exploration has included airborne and ground geophysics, soil geochemistry, geological mapping, structural analysis, trenching and drilling (DD and RC).

Statistical analysis of the geochemical soil sampling data has enabled imaging of the data using Cu-Au-Mo correlation, which, along with the geophysical and geological data has defined a cluster of porphyry-style targets within a 5km by 4km area. There is a strong structural control on the mineralization which comprises both stockwork veining and intense silicification of andesitic and diorite host rocks. Figure 2 shows the Cu-Au-Mo correlation image along with the principal exploration targets. Warm colours define areas with a high Cu-Au-Mo correlation. Coka Rakita is a Au-Ag target with similar structural and alteration characteristics to the porphyry bodies.



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Table 1
Intersection Highlights: September 2008
Cut off: $15 In Situ Value

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HOLEID FROM TO INTERVAL AU AG CU MO S CUEQ AUEQ
(m) (m) (m) (g/t) (ppm) (%) (ppm) (%)
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DSRC004 22 99 77 0.69 1.0 0.33 12 1.5 0.69 1.38
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VZDD002 207 313 106 0.96 2.2 0.78 76 1.9 1.34 2.70
VZDD002 367 527.5 160.5 0.53 1.0 0.47 145 1.5 0.85 1.72
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VZDD003 325 402 77 0.42 1.1 0.50 122 2.1 0.81 1.64
VZDD003 442 491 49 0.74 1.3 0.72 113 2.3 1.19 2.39
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VZDD007 121 238 117 0.42 1.9 0.72 84 2.2 1.01 2.04
VZDD007 259 432.3 173.3 0.59 2.0 0.64 121 2.3 1.05 2.11
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VZDD012 148 255 107 0.31 1.0 0.41 121 1.7 0.67 1.36
VZDD012 264 420 156 0.48 1.4 0.45 82 1.5 0.76 1.54
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VZDD019 190 312 122 0.54 1.5 0.53 92 1.7 0.88 1.78
VZDD019 413 546 133 0.33 0.7 0.26 106 1.4 0.52 1.05
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VZDD020 287 359 72 0.98 2.0 0.68 98 1.8 1.26 2.55
VZDD020 386 537 151 0.42 1.1 0.44 123 1.4 0.75 1.52
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VZDD023 251 404 153 0.19 0.7 0.27 125 1.0 0.47 0.95
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VZDD024 87 239 152 0.34 1.1 0.44 92 1.5 0.69 1.40
VZDD024 266 372 106 0.27 1.1 0.34 149 1.8 0.60 1.21
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VZDD032 5.7 156 150.3 0.36 0.9 0.31 33 1.5 0.52 1.06
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VZDD035 3 93 90 0.46 1.9 0.42 11 1.5 0.67 1.36
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Notes: 1) Drill intersections are down hole.
2) Drill hole intersections represent intercepts into a porphyry
style body
3) Minimum intersection width: 5m
4) Maximum consecutive waste: 5m
5) Uncut assays
6) All samples assayed at SGS managed labs (Australia, Bulgaria)
7) International standards and full QAQC samples inserted with all
sample batches

Formula for AuEq:
AuEq equals ((Au_ppmx27.3281)+(Ag_ppmx0.5144)+(Cu_%x55.1155)+
(Mo_ppmx0.04409)/27.2381
Formula for CuEq:
CuEq equals ((Au_ppmx27.3281)+(Ag_ppmx0.5144)+(Cu_%x55.1155)+
(Mo_ppmx0.04409)/55.1155



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Table 2
Drilling Summary: September 2008

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Diamond Reverse Circulation Total
Hole -------------- -------------------- ----------------
Area Code Holes Metres Holes Metres Holes Metres
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Dimitru Potok DP 7 2208.5 7 2208.5

Dimitru Potok
South East DS 4 1054.6 7 652 11 1706.6

Valja Strz VZ 42 18736.3 79 8417 121 27153.3

Valja Strz
Far South VF 5 462 5 462.0
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TOTALS 53 21999.4 91 9531 144 31530.4
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RESULTS FROM THE DPM DIAMOND AND REVERSE CIRCULATION DRILLING PROGRAM

Following scout drilling of the Valja Strz target in 2007, a program of pattern drilling has been completed as an initial test of Valja Strz. An 80m by 80m drill spacing has been used for the diamond drilling, with infill RC drilling of the upper part of the system using a 40m by 40m spacing. Table 2 summarizes the drilling program completed to date and Appendix 1 contains collar details of the drilling program. In addition to Valja Strz, initial scout drilling has also been undertaken on the Dimitru Potok and Dimitru Potok South East targets. Assay results have been returned for the majority of the diamond drilling (results are awaited for 9 diamond and 52 RC holes). Figure 3 shows the drill pattern at Valja Strz, overlain on a 'Quickbird' satellite image.

Until the full assay facility is commissioned at Bor (construction of the laboratory is currently being finalized and will be managed independently by SGS), samples have been despatched for assay at the SGS managed laboratory at Chelopech in Bulgaria. A full sequence of duplicates, replicates and internationally accredited standards have been employed throughout the exploration program as part of DPM's rigorous exploration procedures.

The drilling has returned broad mineralized intersections within a mineralized envelope extending from the surface to at least 450 metres vertical depth, 700m along strike and 300m wide. The great majority of drill holes have returned multiple wide intercepts over the entire length of the holes. Structural analysis of oriented diamond drill core has confirmed the strong structural control on the Cu-Au-Mo-Ag mineralization. A sub vertical high grade core has been defined at Valja Strz, as shown in Figure 4, which displays the Valja Strz drilling and a grade envelope based on $30 in situ value. Appendix 2 contains a full listing of drill intersections using a $15 in situ value cut off (based on prices of $850/oz Au, $16/oz Ag, $2.50/lb Cu and $20/lb Mo), a minimum intersection width of 5m and a maximum of 5 metres contiguous waste. Table 1 highlights key intercepts (it should be noted that the holes listed in Table 1 have numerous additional mineralized intercepts, as shown in Appendix 2). Broad intercepts with encouraging Cu, Au and Mo grades have been confirmed, following up on the initial 2007 scout drilling program. Excellent metallurgical characteristics were returned from a testwork program on the first diamond drill holes which were submitted to SGS Lakefield in Toronto, Canada in 2007, with initial tests indicating 93% Cu recovery and 76% Au recovery. Further metallurgical samples have been submitted in August 2008 with representative samples covering the full strike length of 700m.

Both the diamond and reverse circulation drilling, along with trenching, have confirmed that mineralization begins at the topographic surface. Following the receipt of all assays, a fully validated database will be compiled in order to allow an independent NI 43-101 resource estimate and initial pit optimization to be produced. In-house DPM resource modelling and pit optimization has confirmed the potential for a significant open-pit project, based on the production of a Cu-Au-Mo concentrate and an aggressive program of drilling is planned for the remainder of the porphyry cluster targets.

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.

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.

Please note - Figure 1: Project location is available on the Marketwire website at the following link: http://media3.marketwire.com/docs/912dpmfigure1.pdf

Please note - Figure 2: Location of porphyry prospects with Mo-Au-Cu soil geochemistry correlation index is available on the Marketwire website at the following link: http://media3.marketwire.com/docs/912dpmfigure2.pdf

Please note - Figure 3: Drill Plan at Valja Strz Prospect on Quickbird Image is available on the Marketwire website at the following link: http://media3.marketwire.com/docs/912dpmfigure3.pdf

Please note - Figure 4: Perspective view (looking NW) - Valja Strz drilling and $30 in situ value grade shell (500m scale bar) is available on the Marketwire website at the following link: http://media3.marketwire.com/docs/912dpmfigure4.pdf

Please note: The Appendices referenced in this release are available on the Marketwire website at the following link: http://media3.marketwire.com/docs/912dpmAppendices.pdf

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