TORONTO, ONTARIO–(Marketwire – Nov. 4, 2010) –

(All Monetary Figures Are Expressed in U.S Dollars Unless Otherwise Stated)

Dundee Precious Metals Inc. (“DPM” or the “Company”) (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) currently voiced the unaudited formula for the third entertain finished Sep 30, 2010. DPM reported third entertain of 2010 net gain attributable to equity shareholders of the Company of $34.4 million (basic net gain per share of $0.28 and widely separated net gain per share of $0.26). This compares with third entertain of 2009 net gain attributable to equity shareholders of $3.7 million (basic and widely separated net gain per share of $0.04).

“The third entertain was an one some-more essential one for DPM and a bustling one, with all projects relocating brazen as planned,” pronounced Jonathan Goodman, President and Chief Executive Officer. “At Chelopech, the mine/mill enlargement to stand in prolongation stays on report and on budget. The plan is staid to begin the ramp up and should furnish 1.2 to 1.3 million tonnes of ore in 2011.  The Tsumeb smelter in Namibia launched multiform initiatives which will result in one some-more improvements to the environmental, illness and reserve standards at site,” he said.  ”Deno Gold finished the enlargement at the finish of October, which had a sure stroke on the jot down third entertain results, and we have been seeking brazen to starting the open array training module before to to winter sets in.  In addition, the brand brand new EIA, surveying the revised Krumovgrad bullion project, has right away been filed with the Bulgarian government.”

Third Quarter 2010 – Financial Highlights

• In the third entertain of 2010, DPM reported net gain attributable to equity shareholders of $34.4 million or $0.28 per share compared to net earnings attributable to equity shareholders of $3.7 million or $0.04 per share in the third entertain of 2009. The duration over duration enlarge in net gain attributable to equity shareholders was essentially due to unrealized enlightened mark-to-market adjustments in the Company’s land of Sabina Gold & Silver Corp. (“Sabina”) special warrants (“Sabina Special Warrants”).

• DPM accessible a gross profit of $17.4 million in the third entertain of 2010 compared to a gross profit of $17.2 million in the analogous before to year period. Higher duration over duration steel prices were equivalent by reduce deliveries of concentrates and reduce bullion in combine sold. Deliveries of concentrates in the third entertain of 2010 of 26,029 tonnes were 1,974 tonnes reduce than the analogous before to year duration deliveries of 28,003 tonnes due, in part, to a drawdown in register in the third entertain of 2009. Partially offsetting the reduce deliveries of Chelopech concentrates in the third entertain of 2010 were aloft prolongation and deliveries of concentrates from Deno Gold. Gold recoveries at Chelopech in 2010 were adversely impacted by the estimate of tall sulphur to copper class ore (Block 151). Material mined in 2009 contained reduce sulphur to copper class ore ensuing in aloft steel recoveries and profitability.

• In Jul 2010, DPM resolved the formerly voiced agreement with PJV Resources Inc. and Rodeo Capital Corp. (now Avala Resources Ltd.) (“Avala”) wherein it perceived a 50.3% approach determining seductiveness in Avala and $1.6 million money in sell for DPM’s Serbian subsidiary, Dundee Plemeniti Metali d.o.o. The post merger stroke on the converging of Avala in to DPM’s monetary formula was a $20.9 million net enlarge in money and money equivalents. As of Sep 30, 2010, DPM hold 50.2% of Avala usual shares.

• As at Sep 30, 2010, DPM had cash, money equivalents and short-term investments of $97.3 million, together with Avala’s money and money equivalents of $17.4 million, compared to $75.6 million at Dec 31, 2009. Investments at satisfactory worth totalled $147.1 million at Sep 30, 2010 compared to $34.4 million at Dec 31, 2009.

2011 Outlook

• For the year 2011, cave outlay at Chelopech is approaching to operation in in in between 1.2 million and 1.3 million tonnes of ore, in line with the programmed ramp up to an annualized prolongation rate of dual million tonnes of ore. At this level, Chelopech is approaching to furnish we estimate 100,000 tonnes of concentrate. Following execution of the mine/mill enlargement to 600,000 tonnes of ore in 2010, Deno Gold is approaching to furnish in in in between 25,000 and 30,000 tonnes of concentrate. 

• Total collateral expenditures for the year 2011 have been projected to operation in in in between $140 million and $150 million, together with $62 million to finish the cave and indent enlargement at Chelopech, $20 million for environmental and plant optimizations projects at NCS and $25 million at Deno Gold to serve raise subterraneous operations and allege the due open array project. Pending execution of the decisive feasibility investigate for the Krumovgrad plan in Bulgaria and taking of approvals of the environmental stroke assessment, the Company additionally expects to move brazen with the building a whole of this project.

A finish set of DPM’s Consolidated Financial Statements, Notes to the Consolidated Financial Statements and Management’s Discussion and Analysis for the 3 months finished Sep 30, 2010 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 land an researcher call on Friday, Nov 5, 2010 at 8.30 a.m. (EST).

The call will be webcast live (audio only) at: http://www.gowebcasting.com/2028.

The audio webcast for this discussion call will be archived and accessible on the Company’s website at www.dundeeprecious.com.

Overview

DPM is a Canadian-based, general mining association vigilant in the acquisition, exploration, growth and mining of changed steel properties. Its usual shares and share squeeze warrants (symbols: DPM; DPM.WT; DPM.WT.A) have been traded on the Toronto Stock Exchange (“TSX”). DPM’s commercial operation objectives have been to identify, acquire, finance, rise and work low-cost, long-life mining properties.

The Company’s handling interests embody the 100% tenure of Chelopech Mining EAD (“Chelopech”), the principal item being the Chelopech mine, a gold, copper, china concentrates producer, located we estimate 70 kilometres easterly of Sofia, Bulgaria, 100% tenure of Namibia Custom Smelters (Pty) Ltd. (“NCS”), a copper combine estimate trickery located in Tsumeb, Namibia, and a 95% seductiveness in Vatrin Investment Limited, a in siege entity which binds 100% of Deno Gold Mining Company CJSC (“Deno Gold”), the principal item being the Kapan mine, a gold, copper, zinc, china concentrates writer located about 320 kilometres south easterly of the collateral city of Yerevan in Southern Armenia. DPM’s interests additionally embody a 100% seductiveness in the Krumovgrad growth theatre bullion skill located in south eastern Bulgaria, nearby the locale of Krumovgrad, and sure scrutiny and exploitation properties in Serbia. The Company additionally currently binds a 50.2% determining seductiveness in Avala Resources Ltd., a newly formed, TSX Venture Exchange (“TSXV”) listed association (TSXV:AVZ) focused on the scrutiny and growth of the Timok and Potoj Cuka copper and bullion projects in Serbia.

Summarized Financial Results

Net revenue

Net revenue of $59.0 million in the third entertain of 2010 was $13.1 million aloft than the analogous before to year duration net revenue of $45.9 million due to a 28% enlarge in bullion prices, a 24% enlarge in copper prices and a 14% enlarge in zinc prices to some extent equivalent by reduce deliveries of concentrates and reduce bullion in combine sold. The estimate of a jagged volume of tall sulphur to copper class ore contributed to marked down bullion class and recoveries in the period. Net enlightened mark-to-market adjustments and last settlements of $1.2 million, associated to the open positions of provisionally labelled combine sales, were accessible in the third entertain of 2010 compared to net enlightened mark-to-market adjustments and last settlements of $1.4 million in the third entertain of 2009. Also contributing to the duration over duration enlarge in net revenue was the inclusion of NCS’s income following the merger by DPM in Mar 2010.

Deliveries of concentrates constructed at Chelopech of 19,595 tonnes in the third entertain of 2010 were 17% reduce than third entertain of 2009 deliveries of 23,493 tonnes due, in part, to a drawdown of combine register in the third entertain of 2009.

Deliveries of concentrates constructed at Deno Gold of 6,434 tonnes in the third entertain of 2010 were 43% aloft than third entertain of 2009 deliveries of 4,510 tonnes due to a relations enlarge in production.

Net revenue of $140.3 million in the initial 9 months of 2010 was $44.9 million aloft than the analogous before to year duration net revenue of $95.4 million due essentially to a 26% enlarge in bullion prices, a 54% enlarge in copper prices, a 43% enlarge in zinc prices and aloft deliveries of concentrates to some extent equivalent by reduce bullion in combine sold. Net unlucky mark-to-market adjustments and last settlements of $2.8 million, associated to the open positions of provisionally labelled combine sales, were accessible in the initial 9 months of 2010 compared to net enlightened mark-to-market adjustments and last settlements of $6.1 million in the initial 9 months of 2009. In the initial 9 months of 2010, DPM accessible net waste on the copper derivatives of $0.1 million, compared to net waste on copper derivatives of $3.8 million in the initial 9 months of 2009. Also contributing to the duration over duration enlarge in net revenue was the inclusion of NCS’s income following the merger by DPM in Mar 2010.

Deliveries of concentrates constructed at Chelopech of 55,178 tonnes in the initial 9 months of 2010 were 4% reduce than the analogous before to year duration deliveries of 57,751 tonnes.

Deliveries of concentrates constructed at Deno Gold of 12,633 tonnes in the initial 9 months of 2010 were 133% aloft than the analogous before to year duration deliveries of 5,415 tonnes as Deno Gold was on caring and upkeep in the initial entertain of 2009. In addition, combine prolongation in 2010 was aloft than 2009 due to increasing ore mined, which resulted in increasing combine deliveries.

The normal London Bullion bullion price(2) in the third entertain of 2010 of $1,227 per unit was 28% aloft than the third entertain of 2009 normal cost of $960 per ounce. The normal London Metal Exchange (“LME”) money copper price(2) in the third entertain of 2010 of $3.29 per bruise was 24% aloft than the third entertain of 2009 normal cost of $2.66 per pound. The normal LME money zinc price(2) in the third entertain of 2010 of $0.91 per bruise was 14% aloft than the third entertain of 2009 normal cost of $0.80 per pound.

The normal London Bullion bullion price(2) in the initial 9 months of 2010 of $1,176 per unit was 26% aloft than the analogous before to year duration normal cost of $930 per ounce. The normal LME money copper price(2) in the initial 9 months of 2010 of $3.25 per bruise was 54% aloft than the analogous before to year duration normal cost of $2.11 per pound. The normal LME money zinc price(2) in the initial 9 months of 2010 of $0.96 per bruise was 43% aloft than the analogous before to year duration normal cost of $0.67 per pound.

Cost of sales

Cost of sales of $41.6 million and $106.3 million in the third entertain and initial 9 months of 2010 were $12.9 million and $39.0 million aloft than the analogous before to year durations cost of sales of $28.7 million and $67.3 million, respectively, due essentially to the inclusion of waste associated to the estimate of concentrates at NCS. 

Cash cost per tonne of ore processed(1), incompatible royalties, at Chelopech in the third entertain of 2010 of $46.84 was 21% reduce than the analogous before to year duration money cost per tonne of ore processed(1), incompatible royalties, of $59.31 due to aloft volume of ore mined and processed, the enlightened stroke of a 10% debasement of the Euro relations to the U.S. dollar duration over duration and reduce concrete make make use of of in backfill activities to some extent equivalent by aloft expenditure of energy and diesel, increasing prices for diesel, aloft practice waste and increasing spending on supplies. Cash cost per tonne of ore processed(1), together with royalties, at Chelopech in the third entertain of 2010 of $51.39 was 18% reduce than third entertain of 2009 money cost per tonne of ore processed(1), together with royalties, of $62.41.

Cash cost per tonne of ore processed(1), incompatible royalties, at Deno Gold in the third entertain of 2010 of $70.50 was 10% reduce than the analogous before to year duration money cost per tonne of ore processed(1), incompatible royalties, of $78.31 due to aloft volume of element processed to some extent equivalent by aloft upkeep costs and aloft capillary expostulate growth costs to entrance one some-more operative spaces. Cash cost per tonne of ore processed(1), together with royalties, at Deno Gold in the third entertain of 2010 was $74.17. Deno Gold did not compensate a distinction formed kingship in the third entertain of 2009.

Cash cost per tonne of ore processed(1), incompatible royalties, at Chelopech in the initial 9 months of 2010 of $49.95 was 4% reduce than the analogous before to year duration money cost per tonne of ore processed(1), incompatible royalties, of $51.98 due essentially to aloft volume of ore mined and processed, reduce concrete make make use of of in backfill activities and the enlightened stroke of a weaker Euro relations to the U.S. dollar, duration over period, to some extent equivalent by increasing prices for and expenditure of energy and fuels, aloft practice waste and aloft spending on reserve and services. Cash cost per tonne of ore processed(1), together with royalties, at Chelopech in the initial 9 months of 2010 of $54.43 was 5% reduce than the analogous before to year duration money cost per tonne of ore processed(1), together with royalties, of $57.56.

Cash cost per tonne of ore processed(1), incompatible royalties, at Deno Gold in the initial 9 months of 2010 of $67.57 was 7% reduce than the analogous before to year duration money cost per tonne of ore processed(1), incompatible royalties, of $72.43. Cash cost per tonne of ore processed(1), together with royalties, at Deno Gold in the initial 9 months of 2010 was $70.52.

Gross distinction

Chelopech accessible a gross profit of $13.6 million in the third entertain of 2010 compared to a gross profit of $16.0 million in the third entertain of 2009. The duration over duration diminution in sum distinction was due to reduce bullion in combine sold, ensuing from reduce recoveries and grades, and reduce deliveries of concentrates to some extent equivalent by a 28% enlarge in bullion prices and a 24% enlarge in copper prices.

Chelopech accessible a gross profit of $26.8 million in the initial 9 months of 2010 compared to a gross profit of $31.9 million in the initial 9 months of 2009. The duration over duration diminution in gross profit was due to reduce bullion in combine sold, ensuing from reduce recoveries and grades in 2010, and unlucky mark-to-market adjustments and last settlements to some extent equivalent by a 26% enlarge in bullion prices and a 54% enlarge in copper prices. Net unlucky mark-to-market adjustments and last settlements of $2.5 million, associated to the open positions of provisionally labelled combine sales, were accessible in the initial 9 months of 2010 compared to net enlightened mark-to-market adjustments and last settlements of $5.6 million in the initial 9 months of 2009. There were nonexistence gains or waste on copper derivatives in the initial 9 months of 2010 whereas, in the analogous before to year period, net waste on copper derivatives totalled $3.8 million.

Deno Gold accessible a sum distinction of $4.8 million in the third entertain of 2010 compared to a sum distinction of $1.2 million in the analogous before to year duration due essentially to aloft deliveries of concentrates and aloft steel prices. Deliveries of concentrates in the third entertain of 2010 totalled 6,434 tonnes compared to 4,510 tonnes in the third entertain of 2009.

Deno Gold accessible a gross profit of $6.7 million in the initial 9 months of 2010 compared to a gross loss of $3.8 million in the analogous before to year duration as Deno Gold was on caring and upkeep in the initial entertain of 2009.

NCS accessible a sum detriment of $1.1 million in the third entertain of 2010. Concentrates processed in the entertain totalled 36,041 tonnes. Production was negatively impacted by the programmed upkeep shutdown of the reverberatory furnace for re-bricking and by the Ausmelt being off-line for random prejudiced re-bricking. Downstream estimate issues have additionally contributed to the reduce than approaching prolongation in the duration and to the rave of in-circuit material.

Investment and alternative income

Investment and alternative income were $25.6 million and $38.8 million in the third entertain and initial 9 months of 2010, respectively, compared to investment and alternative income of $0.4 million and $0.9 million in the analogous before to year periods. Included in the third entertain and initial 9 months of 2010 were unrealized enlightened mark-to-market adjustments associated to Sabina Special Warrants, which have been hold for trading, of $24.1 million and $38.1 million, respectively.

Income taxation expense

In the third entertain of 2010, DPM had an in effect taxation liberation rate of 3% due essentially to the annulment of the Canadian taxation gratefulness stipend and reduce rates on unfamiliar earnings. The gratefulness stipend was topsy-turvy given it is some-more expected than not which DPM will be means to commend the Canadian destiny taxation resources opposite destiny Canadian taxable income.

In the initial 9 months of 2010, the taxation liberation rate of 132% was due essentially to the annulment of the Canadian taxation gratefulness stipend and the non-taxable apportionment of unrealized gains on warrants and rights to some extent equivalent by an unrecognized taxation good relating to unfamiliar losses.

Operating money upsurge (shortfall)

Cash supposing by handling activities in the third entertain of 2010 was $4.7 million compared with money supposing by handling activities of $10.7 million in the third entertain of 2009. The enlarge in operative collateral mandate in the third entertain of 2010 of $14.5 million was essentially due to the appropriation of DPM Assurance (Barbados) Inc., a Qualifying Insurance Company determined to yield reinsurance coverage for collateral risks imagining from DPM’s affiliates.

Cash supposing by handling activities in the initial 9 months of 2010 was $21.5 million compared with money used in handling activities of $1.1 million in the analogous before to year period. The enlarge in money supposing by handling activities was due essentially to an enlarge in sum profit.

Capital expenditures at Chelopech in the third entertain and initial 9 months of 2010 of $12.4 million and $29.9 million were, respectively, 58% and 68% aloft than the analogous before to year durations due to the ramp-up of the cave and indent enlargement plan in 2010. Capital expenditures at Deno Gold in the third entertain and initial 9 months of 2010 were, respectively, $5.4 million and $14.6 million compared to $1.1 million and $4.2 million in the analogous before to year periods. The poignant enlarge in 2010 relations to 2009 was due essentially to the cave and indent enlargement and land acquisition.

On Mar 24, 2010, the Company finished the merger of NCS from Weatherly International plc (“WTI”) by the squeeze of 100% of the shares of NCS. The money care supposing to WTI by DPM was $17.0 million, net of money acquired of $1.0 million.

Prior to the merger of NCS in Mar 2010, DPM modernized $3.0 million to NCS in suitability with the contracting minute of vigilant sealed in Jan 2010 with WTI for the squeeze of NCS.

In Jun 2009, DPM finished the sale of the Back River scrutiny plan in Nunavut to Sabina for a money remuneration of $6.2 million (Cdn $7.0 million), seventeen million Sabina usual shares and 10 million Sabina Special Warrants.

In the initial 9 months of 2009, DPM modernized $4.0 million to NCS in suitability with the agreement DPM sealed with NCS in Dec 2008 to allege up to $7.0 million of loans to NCS.

Financing Activities

Average Metal Prices

The following table, summarizing the normal steel prices for the London Bullion Market Association (“LBMA”) gold, LME copper Grade A, LME special tall class (“SHG”) zinc and LBMA china prices, is used to spell out the Company’s normal steel cost exposures formed on the key anxiety prices for the durations indicated.

Non-GAAP Financial Measures

Reference is done to money cost per tonne of ore processed since it is accepted which sure investors make make use of of this report to consider the Company’s opening and additionally establish the Company’s capability to beget money upsurge for investing activities. This dimensions captures all of the critical components of the Company’s prolongation and associated costs. In addition, supervision utilizes this metric as an critical supervision apparatus to guard cost opening of the Company’s operations. This measurement, which is a non-GAAP measure, has no standardised definition underneath Canadian GAAP and is thus doubtful to be allied to identical measures presented by alternative companies. This dimensions is dictated to yield one some-more report and should not be deliberate in siege or as a surrogate for measures of opening rebuilt in suitability with Canadian GAAP.

To perspective the Financial Statements, greatfully click the following link:

http://media3.marketwire.com/docs/DPM114balancesheet.pdf.

Cautionary Note Regarding Forward-Looking Statements

This press recover contains “forward-looking statements” which engage a series of risks and uncertainties. Forward-looking statements include, but have been not singular to, statements with apply oneself to the destiny cost of gold, copper, zinc and china the determination of vegetable pot and resources, the fulfilment of vegetable estimates, the timing and volume of estimated destiny production, costs of production, collateral expenditures, costs and timing of the growth of brand brand new deposits, success of scrutiny activities, needing time lines, banking fluctuations, mandate for one some-more capital, supervision law of mining operations, environmental risks, amazing reclamation expenses, pretension disputes or claims, stipulations on word coverage and timing and probable result of tentative litigation. Often, but not always, forward-looking statements can be identified by the make make use of of of difference such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes”, or variations of such difference and phrases or state which sure actions, events or formula “may”, “could”, “would”, “might” or “will” be taken, start or be achieved. Forward-looking statements have been formed on the opinions and estimates of supervision as of the date such statements have been made, and they engage good known and opposite risks, uncertainties and alternative factors which might means the tangible results, opening or achievements of the Company to be materially opposite from any alternative destiny results, opening or achievements voiced or pragmatic by the forward-looking statements.
Such factors include, between others: the tangible formula of stream scrutiny activities; tangible formula of stream reclamation activities; conclusions of mercantile evaluations; changes in plan parameters as skeleton go on to be refined; destiny prices of gold, copper, zinc and silver; probable variations in ore class or liberation rates; disaster of plant, apparatus or processes to work as anticipated; accidents, work disputes and alternative risks of the mining industry; delays in obtaining bureaucratic approvals or financing or in the execution of growth or building a whole activities, fluctuations in steel prices, as good as those risk factors discussed or referred to in Management’s Discussion and Analysis underneath the streamer “Risks and Uncertainties” and alternative papers filed from time to time with the bonds regulatory authorities in all provinces and territories of Canada and accessible at www.sedar.com. Although the Company has attempted to brand critical factors which could means tangible actions, events or formula to talk about materially from those described in forward-looking statements, there might be alternative factors which means actions, events or formula not to be anticipated, estimated or intended. There can be no declaration which forward-looking statements will infer to be accurate, as tangible formula and destiny events could talk about materially from those expected in such statements. Unless compulsory by bonds laws, the Company undertakes no requisite to refurbish forward-looking statements if resources or management’s estimates or opinions should change. Accordingly, readers have been cautioned not to place unjustified faith on forward-looking statements.