Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

September 01, 2005 13:00 ET

Dundee Precious Metals Announces Intention to Make a Normal Course Issuer Bid

TORONTO, ONTARIO--(CCNMatthews - Sept. 1, 2005) - Dundee Precious Metals Inc. (TSX:DPM) ("Dundee Precious" or "the Company") announced that purchases of a maximum of 4,085,362 of its common shares, representing approximately 10% of the "Public Float" on the date hereof, by means of a normal course issuer bid through the facilities of The Toronto Stock Exchange ("TSX"), will commence on September 6, 2005 and will terminate no later than September 5, 2006. The purchases will be made in accordance with the Policies and rules of the TSX. There are currently 53,639,675 common shares issued and outstanding. The price paid for any common shares acquired will be the market price at the time of purchase and all common shares purchased under the normal course issuer bid will be cancelled.

Dundee Precious purchased 499,800 common shares at $6.53 per share under its previous normal course issuer bid which commenced on May 17, 2004 and terminated on May 16, 2005.

Dundee Precious believes that the purchase of its common shares at current market values represents a good long-term investment for the Company.

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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