NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Toronto, July 20, 2007 - Dundee Precious Metals Inc. (TSX: DPM; DPM.WT) (the “Company” or “DPM”) is pleased to announce that it has closed the over-allotment option previously granted to the syndicate of underwriters co-led by GMP Securities L.P. and Dundee Securities Corporation, and which included BMO Nesbitt Burns Inc., National Bank Financial Inc. and Orion Securities Inc. (collectively, the “Underwriters”) in connection with the Company’s bought deal financing which closed on June 29, 2007. Pursuant to the over-allotment option, the Underwriters purchased an additional 720,000 units of the Company at a price of $10.50 per unit for additional gross proceeds of $7,560,000.

In total, including the over-allotment option, the Company has issued 5,520,000 units and 1,955,000 flow-through shares pursuant to this offering for total gross proceeds of $81,908,750. The underwriters had previously exercised the over-allotment option to purchase an additional 255,000 flow-through shares on closing of the offering. Consequently the Company now has a total of 61,572,505 shares outstanding.

The Company intends to use the net proceeds from the unit offering for general corporate purposes. Proceeds from the offering of the flow-through shares will be used to fund the Company's Back River gold exploration project in Nunavut.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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, DPM owns the Back River gold exploration project in Nunavut, Canada and an 80% interest in the Kapan Mine in Armenia. The Company also holds a significant and strategic portfolio of investments in the precious metals and mineral related sector.

For further information please contact:

DUNDEE PRECIOUS METALS INC.

Jonathan Goodman
President & Chief Executive Officer
Tel: (416) 365-2408
Email: jgoodman@dundeeprecious.com

Gabriela M. Sanchez
Vice President Investor Relations
Tel: (416) 365-2549
Email: gsanchez@dundeeprecious.com

Bruce Burton
Vice President and Chief Financial Officer
Tel. (416) 365-5143
Email: bburton@dundeeprecious.com