Krumovgrad Gold Project Advances to Public Consultation Stage

TORONTO, ONTARIO--(Marketwire - Jan. 4, 2011) - Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) ("DPM" or "the Company") is pleased to announce that the permitting process for its Krumovgrad gold project in Bulgaria has taken another step forward. Following the submission of the Company's new Environmental Impact Assessment Report ("EIA") and Natura 2000 Compatibility Assessment Report ("CAR") for the Krumovgrad gold project proposal to the Bulgarian Ministry of Environment and Waters ("MoEW"), the MoEW has delivered a "positive grade" to both the EIA and associated CAR, meaning all information required under the EIA Regulation is complete. 

Based on this positive assessment of the quality of the submissions, and in compliance with the requirements under the Bulgarian environmental legislation, DPM will commence the public dissemination of the EIA documentation which will culminate with organized public hearings with the Krumovgrad Municipality and other potentially affected municipalities or villages. It is anticipated that the public hearings will be completed during the first quarter of 2011.

The new project scope for the Krumovgrad gold deposit involves a significantly reduced operating footprint with one major landowner, one single integrated tailings and mine waste facility, a simplified processing route that does not require the use of cyanide and a longer operating life than previously considered. The changes that have led to this new scope are based on community feedback on the earlier project proposal. For this project the EIA permit and compatibility with the European Union legislative requirement to protect habitats and species are the only major environmental approvals required.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development, mining and processing of precious metals properties. The Company's operating interests include its 100% ownership of Chelopech Mining EAD, its principal asset being the Chelopech mine, a gold, copper, silver concentrates producer located east of Sofia, Bulgaria, a 100% ownership of Namibia Custom Smelters (Pty) Ltd., a concentrate processing facility located in Tsumeb, Namibia, and a 100% interest in Deno Gold Mining Company CJSC, its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located in southern Armenia. DPM's interests also include a 100% interest in the Krumovgrad development stage gold property located in south eastern Bulgaria, near the town of Krumovgrad and certain exploration and exploitation properties in Serbia.

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 "Risk 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.