Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

March 29, 2005 11:35 ET

Dundee Precious Metals Inc.-Announcement: Bulgarian Investment Agency Issues Class 1 Investment Certificates for Chelopech Mine Expansion and Ada Tepe Construction Projects


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DUNDEE PRECIOUS METALS INC.

TSX SYMBOL: DPM

MARCH 29, 2005 - 11:35 ET

Dundee Precious Metals Inc.-Announcement: Bulgarian
Investment Agency Issues Class 1 Investment
Certificates for Chelopech Mine Expansion and Ada Tepe
Construction Projects

TORONTO, ONTARIO--(CCNMatthews - March 29, 2005) - Dundee Precious
Metals Inc. (TSX:DPM) ("Dundee" or the "Company"") has been awarded with
Class 1 Investment Certificates for its Chelopech expansion and Ada Tepe
construction projects by the InvestBulgaria Agency (BIA), pursuant to
the Encouragement of Investments Act.

The Act establishes the terms and procedures for encouraging investments
in Bulgaria and provides for preferential treatment of investment
projects which meet certain criteria, namely: a) the investment must
comprise fixed assets with the purpose of creating new or expanding
and/or modernizing existing production of goods and/or services; b) job
creation and c) implementation within three years.

"The news is very encouraging to our Bulgarian operations and shows the
support of the Bulgarian Government to Dundee's mining projects", said
Jonathan Goodman, President and Chief Executive Officer of DPM.

The preferential treatment measures are differentiated according to the
class of investments. The Company, with an estimated investment within
the next three years of BGN 124.4 million (US$80 million) in Chelopech
and BGN 101.7 (US$68 million) in Ada Tepe, qualified for the most
preferential status as Class 1 Investment. Dundee is not planning to
apply for a government grant for infrastructure development; however, it
will benefit from the opportunity to acquire the lands required for the
implementation of the investment projects without tender or competition,
will receive individual administrative service from BIA and will enjoy
reduced administrative time frames.

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.

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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