Dundee Precious Metals Completes $150 Million Revolving Credit Facility

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2013) -

(All monetary figures are expressed in U.S. Dollars unless otherwise stated)

Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT.A) ("DPM" or "the Company") has entered into a long-term committed revolving credit facility of $150 million (the "Revolving Facility") with BNP Paribas, Canadian Imperial Bank of Commerce, European Bank for Reconstruction and Development ("EBRD"), Raiffeisen Bank International AG ("Raiffeisen"), Royal Bank of Canada, and Unicredit Bank AG ("Unicredit"), who led the transaction. The Revolving Facility is comprised of two tranches of $125 million and $25 million that mature in February 2016 and 2018, respectively, and is supported by guarantees from and by pledges of the shares of the Company's wholly owned operating subsidiaries. Interest is based on LIBOR plus a spread, which varies between 2.75% and 4.25%, depending upon the Company's financial indebtedness and adjusted earnings, as defined in the Revolving Facility.

"This Revolving Facility provides us with a cost effective and flexible source of funding and we are delighted with the strong support we received from our existing lenders and the new banks who participated in this transaction" said Jonathan Goodman, DPM's President and CEO. "With this financing, our cash on hand and the strong cash flow we are generating, we are well positioned to fund our strategic initiatives, including the upgrades being made at NCS, the gold pyrite circuit at Chelopech, the drilling at Deno to support a potential mine expansion, and the development of the Krumovgrad gold project."

Concurrent with this transaction, DPM refinanced its Chelopech loans of $81.25 million with EBRD, Unicredit, and Raiffeisen. The terms of the new loans are substantially the same, with the exception that DPM has become the borrower, the lenders now share in the same security granted under the Revolving Facility, and the cash sweep that previously existed has been eliminated.

Background

Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. The Company's principal operating assets include the Chelopech operation, which produces a gold, copper and silver concentrate, located east of Sofia, Bulgaria; the Deno Gold operation, which produces gold, copper, zinc and silver concentrate, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold properties located in Bulgaria, Serbia, and northern Canada, including interests held through its 53.1% owned subsidiary, Avala Resources Ltd., its 47.3% interest in Dunav Resources Ltd. and its 10.7% interest in Sabina Gold & Silver Corp.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production and output, 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, copper, zinc and silver; 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 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. Unless required by securities laws, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.