Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

September 20, 2005 16:15 ET

Dundee Precious Metals Acquires Units Of Mediterranean Minerals Corp. On Settlement Of Debt And Purchases Shares Of Adamus Resources Limited

TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2005) - In accordance with regulatory requirements, Dundee Precious Metals Inc. (TSX:DPM) ("Dundee Precious" or the "Company") announces that it has acquired 18,000,000 units of Mediterranean Minerals Corp. ("Mediterranean") at $0.05 each in full settlement of a $900,000 convertible debenture. Each unit consists of one common share and one share purchase warrant that is exercisable into one common share of Mediterranean at $0.10 for a one year period. The above securities represent an approximate 15.5% interest in Mediterranean, on an undiluted basis, and approximately 26.6% assuming the exercise of the warrants.

The Company now holds an aggregate of 20,099,286 common shares and 19,529,000 warrants of Mediterranean which represents an approximate 17.4% interest in Mediterranean, on an undiluted basis, and approximately 29.3% assuming the exercise of all warrants held.

Dundee Precious also acquired an aggregate of 3,595,000 ordinary shares of Adamus Resources Limited ("Adamus") on the open market at $0.36 per share, which securities represent an approximate 4.2% interest. The Company now holds an aggregate of 9,095,000 ordinary shares of Adamus which represents approximately 10.5%.

The above noted securities held by Dundee Precious are held for investment purposes. These investments will be reviewed on a continuing basis and such holdings may be increased or decreased in the future.

Dundee Precious is a Canadian operating 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 development project, both located in Bulgaria and is engaged in mineral exploration activities in the region. In addition, Dundee Precious has the option to earn a 60% interest in the Back River gold project in Nunavut, Canada. The Company also holds a significant and strategic portfolio of investments in the precious metals and mineral related sector.

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