DPM OBTAINS ONE YEAR EXTENSION OF KRUMOVGRAD EXPLORATION LICENSE

TORONTO, CANADA – July 4, 2007 – Dundee Precious Metals Inc. (TSX: DPM; DPM.WT) (the “Company” or “DPM”) is pleased to announce that today its wholly owned subsidiary Balkan Mineral and Mining EAD (“BMM”) and the Bulgarian Ministry of Economy and Energy signed an additional agreement to the Contract for Prospecting and Exploration of Metalliferous Resources on the Krumovgrad License Area of June 12, 2000 (the “Contract”) which expired on June 12, 2007. This additional agreement extends the Contract by one year to June 13, 2008 and entitles BMM to retain all its rights under the Contract.

The Company is awaiting the decision of the Court of Appeal to revoke the silent refusal of the Minister of Environment and Waters on the Krumovgrad Environmental Impact Assessment (“EIA”). Approval of the EIA is a prerequisite to obtaining a mining license.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development and mining of precious metals. DPM 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, the Company owns the Back River gold exploration project in Nunavut, Canada and an 80% interest in the Kapan Mine in Armenia. DPM 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