Bulgarian Government Approves EIA for DPM's Krumovgrad Gold Project

TORONTO, ONTARIO -- (Marketwire) -- 11/24/11 -- Dundee Precious Metals Inc. ('DPM' or the 'Company') (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A) is pleased to announce that the Bulgarian Minister of Environment and Waters has signed a resolution approving the environmental impact assessment ('EIA') for the Company's Krumovgrad Gold Project in Bulgaria.

'Since initially embarking on this project in 2005, we have made great efforts to develop a comprehensive plan for Krumovgrad that addresses the concerns of the community and will prove to be economically beneficial for Bulgaria and the local community, as well as DPM and its shareholders,' said Jonathan Goodman, President and CEO, 'We are very pleased by the Minister's endorsement and look forward to working with the Mayors of the communities involved to move this exciting project to the next stage of development.'

The project plan takes into consideration concerns raised by the community through the use of water management and treatment systems and the elimination of cyanide as well as a tailings dam. The plan now contemplates the construction of an open pit mining operation comprised of a process plant, which employs conventional crushing, grinding and flotation processing for gold extraction, and the disposal of thickened tailings, together with mine rock waste, in an integrated mine waste facility. A new feasibility study developed within the parameters of the project plan is being finalized and is expected to be released by the end of November.

The Bulgarian Council of Ministers granted a 30 year concession on the Khan Krum Deposit in Krumovgrad to DPM's subsidiary, Balkan Mineral and Mining Limited, earlier this year, which was subject to the approval of the EIA. This approval includes pre-emptive execution and, while subject to appeal, allows DPM to advance the Krumovgrad project.

Dundee Precious Metals Inc. is a well-financed, Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. The Company's principal operating assets include the Chelopech operation, which produces a gold, copper and silver concentrate, located east of Sofia, Bulgaria; the Kapan operation, which produces a gold, copper, zinc and silver concentrate, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold properties located in Bulgaria, Serbia, and northern Canada, including interests held through its 51.4% owned subsidiary, Avala Resources Ltd., its 47.7% interest in Dunav Resources Ltd. and its 11.6% interest in Sabina Gold & Silver Corp.

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.

Contacts:

DUNDEE PRECIOUS METALS INC.

Jonathan Goodman

President & Chief Executive Officer

(416) 365-2408
jgoodman@dundeeprecious.com


DUNDEE PRECIOUS METALS INC.

Lori Beak

Senior Vice President, Investor & Regulatory

Affairs and Corporate Secretary

(416) 365-5165
lbeak@dundeeprecious.com