Dundee Sustainable Technologies Reports 2014 Financial Results

MONTREAL, QUEBEC--(Marketwired - March 25, 2015) - Dundee Sustainable Technologies Inc. ("DST" or the "Corporation") (CSE:DST), is reporting its financial results as at and for the year ended December 31, 2014. The Corporation's audited annual consolidated financial statements, along with the accompanying management's discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed by interested parties under the Corporation's profile at www.sedar.com or the Corporation's website at www.dundeetechnologies.com.

2014 Highlights

All amounts are in Canadian dollars unless stated otherwise.

• The Corporation's objective is to finalize the development of the chlorination technology to extract precious and base metals, through the construction of a demonstration plant (the "Plant") of 15 tonnes per day that will operate on an industrial scale and under continuous operating conditions;

• The budget for construction and operation of the Plant, which was originally established at $27 million in June 2013, has been revised to $25 million due to savings on the acquisition costs of some major equipment and close follow-up of the construction costs.

• As of December 31, 2014, the Corporation has expended $11 million towards the budgeted $25 million required to complete and operate the Plant during its demonstration phase;

• The Corporation received in 2014, $3.2 million ($0.7 million in 2013) from the Sustainable Development Technology Canada Foundation ("SDTC"). The SDTC agreed to financially assist the Corporation in developing and demonstrating its technology by contributing up to $5 million in grant;

• A wholly-owned subsidiary of Dundee Corporation loaned $5.65 million to the Corporation in 2014. At December 31, 2014, Dundee Corporation held a 63% interest in the Corporation.

Construction update

The Plant is completed at 85% and its commissioning is expected during the second quarter of 2015.

Pursuant to a consortium agreement with Dundee Precious Metals Inc. ("DPM"), the Corporation was supplied with 600 tonnes of pyrite concentrate for processing during the first four month period of the Plant operations.

Once the processing of the DPM concentrate is completed, the Plant is expected to process commercial material. At full capacity, the Plant should process approximately 5,000 tonnes of concentrate per year.

Summary of financial results

Reflective of its current stage of development, DST does not report any revenue. In 2014, it incurred a net loss of $31.2 million (2013 - $4.0 million). Total costs for 2014 include $22.2 million impairment of exploration and evaluation assets and $7.9 million for the construction of the Plant (2013 - $3.1 million).

As at December 31, 2014, the Corporation recorded impairment charges of all costs on the Shinning Tree mining properties. These properties were acquired as part of the acquisition of Creso Exploration Inc. in 2014 with the intent of using the minerals extracted from the properties to further advance the testing of the Corporation's proprietary technologies processes and for future processing. The Corporation has subsequently decided to foreclose any further investment or funding of the properties in order to de-risk the extraction cost and is in the process of arranging for alternative means to obtain the minerals needed to complete the testing.

Outlook

The Corporation has been actively looking for various concentrate feed sources which can be processed in the Plant. DST entered into preliminary agreements with identified partners to secure concentrate feed material for the Plant in 2016.

In the short term, DST's business model encompasses the implementation of its technology in collaboration with mine owners. DST is actively pursuing negotiation and testing in view of future implementation of its technology on new mine projects.

Patents

DST's technology is protected by patents filed during the development of the technology to reinforce the level of protection. To date, DST has obtained patents on 13 different processes for its technologies. The Corporation has 33 patents granted or published in 14 countries and 32 patents pending or filed in 20 countries. The patents to which the Corporation currently has rights expire between 2022 and 2032.

About Dundee Sustainable Technologies

DST is engaged in the development of technologies for the treatment of refractory ores containing sulfides and arsenic. Dundee Technologies has developed proprietary hydrometallurgical processes, and owns the related patents, for the extraction of precious and base metals from ores, concentrates and tailings, which cannot be extracted with conventional processes because of metallurgical issues or environmental considerations.

DST' patented approach provides a cyanide-free process to allow the exploitation of gold and other deposits that would otherwise face metallurgical issues with conventional methods. The primary benefits of the innovative technology are shorter processing times, a closed-loop operation eliminating the need for costly tailings pond, reduced environmental footprint related to inert and stable characteristics of the tailings, and lesser emissions due to lower energy consumption.

The process developed by DST is a recognized "green technology" for which it was awarded a $5.7 million grant towards the construction of a $25.0 million demonstration plant. The completed commissioning of the demonstration plant is scheduled for the second quarter of 2015. With a capacity of 15 tonnes per day, the demonstration plant will serve as a proof of concept for the chlorination extraction technology on an industrial scale and under continuous operating conditions.

Over the last ten years, DST has tested over 100 different gold deposits, both oxide and sulfide ores at the lab level and at its pilot plant. These tests have, consistently achieved gold recoveries in excess of 90%, using chlorination instead of cyanide.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements that address future events and conditions, which are subject to various risks and uncertainties. Actual results could differ materially from those anticipated in such forward- looking statements as a result of numerous factors, some of which may be beyond the Corporation's control.

Forward-looking statements are based on the expectations and opinions of the Corporation's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

These risks, uncertainties and assumptions include, but are not limited to, those described in the section of the Management's Discussion and Analysis (MD&A) entitled "Risk and Uncertainties" as filed on March 24, 2015 on SEDAR.

The Canadian Securities Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.