Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

October 24, 2006 20:30 ET

Supreme Administrative Court Orders Minister of Environment and Waters to Issue a Resolution on DPM's Chelopech Mine Expansion EIA in Bulgaria

TORONTO, ONTARIO--(CCNMatthews - Oct. 24, 2006) - Dundee Precious Metals Inc. (TSX:DPM) ("Dundee Precious" or the "Company") announces that in a unanimous decision on October 24, 2006, a three member panel of the Supreme Administrative Court ("SAC") revoked the silent refusal of the Minister of Environment and Waters, Mr. Jevdet Chakarov, and ordered him to issue a Resolution on the Environmental Impact Assessment ("EIA") on the Company's Expansion Project (the "Project").

Starting in December 2005, the Company undertook the EIA process for the Project in full compliance with all Bulgarian laws. The Project will increase the amount of copper-gold ore processed at Chelopech and the production of metals from concentrate. The EIA process was completed in early 2006, and was subjected to an expert review by the Supreme Expert Environmental Council ("SEEC") on two separate occasions. At both meetings, the SEEC voted overwhelmingly in favour of the Project's implementation. Under the terms of the Environmental Protection Act ("EPA"), the Minister was required by law to endorse the draft Resolution of the SEEC approving the EIA, but refused to do so by the March 18 legislative deadline. As a result of the Minister's inaction, on March 29, the Company lodged an appeal with the SAC against the Minister, and his failure to issue a final Resolution on the EIA for the Project.

In its action, the Company claimed that the Minister's failure to comply with the statutory requirements of the EPA was wrongful, and, therefore, his reliance on silent refusal as a justification for his inaction should be revoked. The SAC's decision of October 24 supported the Company's claim and ruled in favour of the appeal. In their decision, the SAC confirmed that the Company had met all of the legal and administrative requirements necessary for the Project's EIA. As such, the Minister's inaction was deemed unlawful and should be interpreted as a wrongful silent refusal. The SAC went on to order the Minister to issue a final Resolution on the Company's Project. This decision is open to appeal to a full court of five justices for a period of fourteen days.

Dundee Precious Metals Inc. is a Canadian based, international 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 the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, and is engaged in mineral exploration activities in Serbia. In addition, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and an 80% interest in the Kapan Mining Project in Armenia. The Company also holds a significant and strategic portfolio of investments in the precious metals and mineral related sector.


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.

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