Dundee Precious Metals Inc. ("DPM" or the "Company") (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A) today announced its unaudited results for the third quarter ended September 30, 2009. DPM reported third quarter net earnings of $4.1 million (basic and diluted net earnings per share of $0.04). This compares with third quarter 2008 net earnings of $6.5 million (basic and diluted net earnings per share of $0.11).

"I am very pleased to report our third quarter 2009 results, noted Jonathan Goodman, President and CEO of DPM. At Chelopech, we continue to experience steady and consistent operating performance - contributing to solid financial gains. The Chelopech mine and mill expansion plans are now finalized and construction has begun with completion expected in the second quarter of 2011. Operational and productivity improvements at Deno Gold translated into positive gross profit from mining operations - a recent first for this facility."

The following table summarizes the Company's financial and operating results for the periods indicated:

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$ millions, except per share amounts                                        
Ended September 30,                        Three Months       Nine Months   
                                         ----------------- -----------------
                                           2009     2008     2009     2008  
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Net Revenue                             $   50.3 $   16.7 $  110.0 $   89.2 
Cost of Sales                               31.5     23.8     78.1     74.5 
------------------------------------------------ -------- -------- -------- 
Gross Profit (Loss) from Mining                                             
Operations                                  18.8     (7.1)    31.9     14.7 
------------------------------------------------ -------- -------- -------- 
Investment and Other Income (Expense)       (3.7)    27.9     (3.5)    28.9 
Net Earnings                                 4.1      6.5      1.3      0.8 
                                                                            
Basic Net Earnings Per Share            $   0.04 $   0.11 $   0.01 $   0.01 
Diluted Net Earnings Per Share          $   0.04 $   0.11 $   0.01 $   0.01 
                                                                            
Net Cash Provided By (Used in) Operating                                    
Activities                                  11.7    (10.4)    (3.3)     3.9 
Capital Expenditures                        (9.8)   (19.3)   (25.9)   (66.7)
Proceeds on Sale (Purchase) of Short-term                                   
Investments                                (15.1)       -     14.0        - 
Proceeds on Sale of Exploration Property       -        -      7.0        - 
Other Investing Activities                  (1.8)    41.0     (4.2)    61.0 
Financing Activities                        (1.0)    15.2     (3.6)    13.3 
------------------------------------------------ -------- -------- -------- 
Net Increase (Decrease) in Cash         $  (16.0) $  26.5 $  (16.0) $  11.5 
------------------------------------------------ -------- -------- -------- 
                                                                            
Concentrate Produced (mt)                                                   
  Chelopech                               20,816   13,567   56,023   39,738 
  Deno Gold                                2,972    4,608    6,145    9,197 
Cash Cost per tonne Ore Processed                                           
(US$/t)(1)                                                                  
  Chelopech (excluding royalties)       $  59.31 $  60.69 $  51.98 $  60.39 
  Deno Gold                             $  78.31 $ 110.75 $  72.43 $ 109.62 
------------------------------------------------ -------- -------- -------- 
Third Quarter 2009 - Financial Highlights 
  Net earnings in the third quarter of 2009 were $4.1 million compared to
  net earnings of $6.5 million in the corresponding prior year period. The
  decrease in net earnings, period over period, was primarily due to lower
  investment and other income partially offset by higher gross profit from
  mining operations and reductions in exploration and administrative
  expenses. The increase in gross profit from mining operations, period
  over period, was primarily due to higher deliveries of concentrates
  produced at Chelopech and Deno Gold, lower production costs at Deno Gold
  and Chelopech, and a 10% increase in gold price. These positive
  variances were partially offset by a 24% decrease in copper price in the
  third quarter of 2009 relative to the corresponding prior year period.
  Included in the third quarter of 2008 results was a gain of $27.2
  million on the sale of the Company's holdings in Eldorado Gold
  Corporation. 
  Chelopech recorded a gross profit from mining operations of $17.5
  million in the third quarter of 2009 compared to a gross loss from
  mining operations of $1.5 million in the third quarter of 2008.
  Chelopech operations reported net revenue of $41.9 million on
  corresponding concentrate deliveries of 23,493 tonnes. Chelopech cash
  cost per tonne of ore processed(1), excluding royalties, in the period 
  was 2% lower than the corresponding prior year period due to the 
  favourable impact of a 5% devaluation of the average Euro to U.S. 
  foreign exchange rate, lower input cost for backfill as the slurry 
  needed for the backfill in the period was produced on site whereas, in 
  the third quarter of 2008, it was purchased from a third party and 
  reduced spending on services as a result of cost savings initiatives. 
  These positive variances were partially offset by higher maintenance 
  costs resulting from planned maintenance on mobile equipment and the 
  planned maintenance shutdown at the mill and higher employment expenses.
  Cash cost per tonne of ore processed(1), including royalties, in the 
  third quarter of 2009 of US$62.41 was 3% lower than the third quarter of
  2008 cash cost per tonne of ore processed(1), including royalties, of 
  US$64.52.
  Deno Gold recorded a gross profit from mining operations of $1.3 million
  in the third quarter of 2009 compared to a gross loss from mining
  operations of $5.6 million in the corresponding prior year period.
  Continued operating improvements at Deno Gold during the quarter,
  including reductions in headcount and external contractors and tighter
  inventory and cost controls, and a 23% devaluation of the Armenian dram
  to U.S. dollar exchange rate contributed to a 29%, period over period,
  reduction in cash cost per tonne of ore processed(1), to US$78.31.
  Deliveries of concentrate in the period of 4,510 tonnes were 153% higher
  than the corresponding prior year period due to a drawdown of
  concentrate inventory. It is currently anticipated that the positive
  performance will continue into the future given improved operating
  processes and controls, particularly in the areas of mine dilution and
  productivity. 
  Net cash provided by operating activities was $11.7 million in the third
  quarter of 2009 compared to cash used in operating activities of $10.4
  million in the corresponding prior year period. The increase in cash
  provided by operating activities was primarily due to higher gross
  profit from mining operations. 
  As at September 30, 2009, DPM had cash, cash equivalents and short-term
  investments of $74.0 million compared to $104.0 million at December 31,
  2008. 
Significant Items
  A comprehensive review of the mine and mill expansion plans at Chelopech
  resulted in certain scope changes being made to optimize the planned
  investment. Such changes include the installation of an underground
  crushing and conveying system in lieu of a shaft upgrade to facilitate
  the increase in mine output to two million tonnes of ore per year. The
  scope changes increased total expansion capital by US$42.5 million and
  decreased projected unit operating cost by US$6 per tonne (US$12.0
  million per year). The estimated capital cost to complete the mine and
  mill expansion project, including the installation of an underground
  crushing and conveying system but excluding capital spending required to
  complete the metals processing facility ("MPF"), special projects
  associated with on-going operations and sustaining capital, is US$102.0
  million. This amount includes approximately US$19.0 million that is
  forecast to be spent in the year 2009. Completion of the mine and mill
  expansion is planned for the second quarter of 2011. Following
  commissioning, unit operating cost for the expanded facility is expected
  to decrease to approximately US$34 per tonne of ore processed. 
  In September 2009, the Bulgarian Ministry of Environment and Waters
  ("MoEW") issued the Integrated Pollution Prevention and Control ("IPPC")
  permit for the MPF to be constructed in Chelopech, Bulgaria. The IPPC
  and the Seveso (working with hazardous substances) permits are
  prerequisites for the issuance of the MPF construction permit. The
  application for the Seveso permit has been made. The MPF incorporates
  pressure oxidation, solvent extraction and electrowinning and carbon in
  leach cyanidation to treat the Chelopech copper/gold concentrates and
  produce copper cathode and gold dore. 
  Following DPM's announcement on July 31, 2009 regarding the subscription
  of shares of Weatherly International plc ("WTI"), the Company purchased
  40.5 million ordinary shares of WTI for US$2.0 million ($2.2 million)  representing approximately 9.1% of WTI issued and outstanding shares. If
  required by WTI on or before July 31, 2010, the Company will subscribe
  for up to an additional US$5.0 million worth of WTI ordinary shares
  based on the then prevailing market price but in no event, except in
  certain circumstances, less than GBP0.03 per share. The Company also
  completed an agreement with WTI's subsidiary, Namibia Custom Smelters
  (Pty) Limited ("NCS"), to extend the Chelopech concentrate purchase and
  sales contract to and including the year 2020. 
  In September 2009, the MoEW issued a Commercial Discovery Certificate
  (the "Certificate") for the Krumovgrad gold deposit to DPM's Bulgarian
  subsidiary, Balkan Mineral and Mining EAD. The Certificate is the final
  requirement for conversion of the property to a mining concession, the
  application for which has already been filed with the Bulgarian
  government. 
  The Company continues to evaluate value enhancing strategic
  opportunities available to it in respect of its Serbian assets. As part
  of a limited program undertaken during the third quarter of 2009 to
  delineate several key anomalies, drilling on the western margin of the
  Timok Magmatic Complex in Serbia has confirmed two gold discoveries with
  bulk tonnage potential. 

A complete set of DPM's Consolidated Financial Statements, Notes to the Consolidated Financial Statements and Management's Discussion and Analysis for the third quarter ended September 30, 2009 will be posted on the Company's website at www.dundeeprecious.com and will be filed on Sedar at www.sedar.com.

Conference Call

DPM will be holding an analyst call to present its Third Quarter 2009 Financial Results on Thursday, November 5, 2009 at 8.30 a.m. (EST).

The call will be webcast live (audio only) at: http://events.digitalmedia.telus.com/dundee/110509/index.php.

The audio webcast for this conference call will be archived and available on the Company's website at www.dundeeprecious.com.

Overview

DPM is a Canadian-based, international mining company engaged in the acquisition, exploration, development and mining of precious metal properties. Its common shares and share purchase warrants (symbols: DPM; DPM.WT; DPM.WT.A) are traded on the Toronto Stock Exchange ("TSX"). DPM's business objectives are to identify, acquire, finance, develop and operate low-cost, long-life mining properties.

The Company's operating interests include its 100% ownership of Chelopech Mining EAD ("Chelopech"), a gold, copper, silver concentrates producer, owner of the Chelopech mine located approximately 70 kilometres east of Sofia, Bulgaria, and a 95% interest in Vatrin Investment Limited ("Vatrin"), a private entity which holds 100% of Deno Gold Mining Company CJSC ("Deno Gold"), its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located about 320 kilometres south east of the capital city of Yerevan 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 numerous exploration properties in one of the larger gold-copper-silver mining regions in Serbia.

Summarized Financial Results

Net revenue

Net revenue from the sale of concentrates of $50.3 million in the third quarter of 2009 was $33.6 million higher than the corresponding prior year period net revenue due to a significant increase in deliveries of concentrates produced at Chelopech and Deno Gold, net favourable mark-to-market adjustments, a 10% increase in gold price and the favourable impact of a weaker Canadian to U.S. dollar exchange rate partially offset by a 24% decrease in copper price. The weakening of the Canadian dollar relative to the U.S. dollar, period over period, increased revenue by $3.9 million in the period.

Deliveries of concentrates produced at Chelopech of 23,493 tonnes in the third quarter of 2009 were 126% higher than third quarter of 2008 deliveries of 10,376 tonnes. Deliveries of concentrates produced at Deno Gold of 4,510 tonnes in the third quarter of 2009 were 153% higher than third quarter of 2008 deliveries of 1,785 tonnes. Net favourable mark-to-market adjustments and final settlements of $1.5 million, related to the open positions of provisionally priced concentrate sales, were recorded in the third quarter of 2009 compared to net unfavourable mark-to-market adjustments and final settlements of $4.4 million in the third quarter of 2008. In the third quarter of 2009, DPM recorded realized losses on its copper derivatives of $0.4 million and unrealized gains of $0.03 million. The copper derivative contracts were entered into to mitigate substantially all the copper price exposure and associated earnings volatility the Company is exposed to as a result of the time lag between the receipt of provisional sales revenue of concentrate deliveries and its specified final pricing period.