Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

February 25, 2005 13:46 ET

Dundee Precious Metals Completes Resource Update at Its Ada Tepe Gold Project Measured And Indicated Gold Resources Increased to 835,000 Oz


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DUNDEE PRECIOUS METALS INC.

TSX SYMBOL: DPM

FEBRUARY 25, 2005 - 13:46 ET

Dundee Precious Metals Completes Resource Update at
Its Ada Tepe Gold Project Measured And Indicated Gold
Resources Increased to 835,000 Oz

TORONTO, ONTARIO--(CCNMatthews - Feb. 25, 2005) - Dundee Precious Metals
Inc. (TSX:DPM) ("Dundee Precious") announced the completion of its
resource estimate of its Ada Tepe gold project in Bulgaria for year end
2004 resulting in a 78,000 ounce (oz) increase in the Measured and
Indicated Resources compared to its previously reported estimate
announced in October 2004.

As part of the feasibility study for the Ada Tepe project currently
underway, and subsequent to the previous resource update, the objective
of the additional infill drilling program was to ensure that any
Inferred Resources in the Upper Zone, occurring within the likely open
pit outline, were upgraded to the Indicated Resources category. As
expected, the program confirmed increased measured and indicated gold
resources of 835,000 ounces which will now be incorporated in the
calculation of the reserves for the feasibility study expected by the
end of March 2005.

The updated resource estimate included an additional 36 reverse
circulation (RC) drill holes targeted to test inferred and lower
confidence regions of the resource model reported in October 2004. The
resource estimate has been classified in accordance to the criteria laid
out in the Canadian National Instrument 43-101.

DEPOSIT GEOLOGY AND GEOLOGICAL MODELLING

The geological model generated for the October 2004 resource estimate
was updated to reflect the additional drill hole data. The geological
model includes wireframes for lithology, oxidation and mineralized
domain boundaries. In aggregate, 26 mineralised domains were
interpreted, representing 24 Upper Zone domains and a single Wall Zone
domain, plus a separate zone constraining the mineralized overburden.



Table 1
Ada Tepe Deposit Gold Resources
(1.0g/t Au lower cut off grade)
---------------------------------------------------------------
Lower Gold Silver
Cutoff 1.0 --------------------------------------
(Au g/t) Tonnes Grade Au Oz Grade Ag Oz
(Million) (g/t) (000) (g/t) (000)
---------------------------------------------------------------
Measured 2.65 5.9 500 3.0 259
---------------------------------------------------------------
Indicated 2.57 4.1 335 2.0 181
---------------------------------------------------------------
M&I 5.22 5.0 835 3.0 440
---------------------------------------------------------------
Inferred 0.21 1.6 11 1.0 8
---------------------------------------------------------------


UPDATED RESOURCE ESTIMATE

Table 1 above, summarizes the resource estimate based on a multiple
indicator kriging estimate (and selective mining unit emulation of
6.25mE by 5mN by 2.5mRL size blocks) for the Upper Zone, and ordinary
kriging of the Wall Zone (and Overburden Zone) in 12.5mN by 5mRL size
blocks, as reported by RSG Global Pty Ltd. Silver was estimated using
linear regression from the gold grade estimates, due to the robust
correlation between the two elements and in order to determine a
selective mining estimate for silver as well as gold.



Table 2
Ada Tepe Deposit Gold Resources
At 1.0 g/t Au lower cut off grade
Grade Tonnage Distribution of RSG Global Preferred
Resource Estimate Sub-divided by Mineralized Zones and
JORC / CIM Resource Classification
(12.5mE x 12.5mN x 5mRL Size Blocks for Wall Zone and Overburden and
SMU emulation of 6.25mE x 5mN x 2.5mRL Size Blocks for Upper Zone)

---------------------------------------------------------------------
JORC / Wall Zone Upper Zone
CIM ------------------------------------------------------------
Re- Tonnes Gold Silver Tonnes Gold Silver
source ------------------------------------------------------------
Category (Kt) (g/t) (Koz) (g/t) (Koz) (Kt) (g/t) (Koz) (g/t) (Koz)
---------------------------------------------------------------------

Measured 1929 6.4 395 3 204 721 4.53 105 2 54

---------------------------------------------------------------------

Indicated 208 4.6 31 3 17 2364 4.0 304 2 164

---------------------------------------------------------------------

Measured+
Indicat-
ed 2137 6.2 426 3 221 3085 4.1 409 2 219

---------------------------------------------------------------------

Inferred - - - - - 4 2.3 - 2 -

---------------------------------------------------------------------


---------------------------------------------------------------------
JORC / Overburden Combined Zones
CIM ------------------------------------------------------------
Re- Tonnes Gold Silver Tonnes Gold Silver
source ------------------------------------------------------------
Category (Kt) (g/t) (Koz) (g/t) (Koz) (Kt) (g/t) (Koz) (g/t) (Koz)
---------------------------------------------------------------------

Measured - - - - - 2650 5.9 500 3 259

---------------------------------------------------------------------

Indicated - - - - - 2572 4.1 335 2 181

---------------------------------------------------------------------

Measured+
Indicated - - - - - 5222 5.0 835 3 440

---------------------------------------------------------------------

Inferred 209 1.6 10 1 8 213 1.6 11 1 8

---------------------------------------------------------------------


RESOURCE

In the above Table 2, summarised criteria applied to resource
categorization are as follows:

- Measured Resource is restricted to the densely drilled Wall Zone
(approximately 25m x 25m drilling or better) and the Upper Zone regions
that are defined by a notional 12.5m x 12.5m drill spacing.

- Indicated Resource is restricted to regions drilled on average to a
spacing of 25m x 25m or better, excluding the Measured Resource blocks.

- Inferred Resource represents the lower geological confidence blocks
that do meet the indicated or measured criteria. All mineralized
overburden blocks are classified as Inferred Resources.

RESOURCE DATABASE

The resource database applied to the December 2004 study included a
combined 651 diamond and reverse circulation (RC) drill holes for
56,525.75m of drilling (37,170.2m of RC and 19,355.55m of diamond). A
further 425 trenches (18,299.8m of trenching) were also available and
included in the resource estimation study. Significantly, the updated
resource estimate included 36 RC drill holes (2,095m of drilling)
completed post the October 2004 resource estimate. Tonnage estimates
have been based on some 5,764 bulk density estimates made on sealed
diamond drill core at an ISO 9002 accredited laboratory in Sofia,
Bulgaria.

GRADE ESTIMATION

A similar approach was applied to these grades estimation studies to
that applied to construct the October 2004 resource model.

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 "Risks
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.

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 Ada
Tepe, an advanced stage exploration property, 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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    DUNDEE PRECIOUS METALS INC.
    Jonathan Goodman
    President & Chief Executive Officer
    (416) 365-2408
    jgoodman@dundeeprecious.com
    or
    DUNDEE PRECIOUS METALS INC.
    Gabriela M. Sanchez
    Vice President Investor Relations
    (416) 365-2549
    gsanchez@dundeeprecious.com