FOR IMMEDIATE RELEASE

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

DUNDEE PRECIOUS METALS COMPLETES $74 MILLION "BOUGHT DEAL" FINANCING

TORONTO, CANADA – June 29, 2007 – Dundee Precious Metals Inc. (TSX: DPM) is pleased to announce that it has completed its previously announced bought deal financing for aggregate gross proceeds to the Company of $74,348,750. The financing was co-led by GMP Securities L.P. and Dundee Securities Corporation, and included a syndicate of underwriters including BMO Capital Markets, National Bank Financial Inc. and Orion Securities Inc. The financing consisted of the sale of 4,800,000 units at a price of $10.50 per unit and 1,955,000 flow-through shares (including 255,000 flow-through shares issued upon the exercise of the over-allotment option with respect to the flow-through shares by the underwriters) at a price of $12.25 per flow-through share for aggregate gross proceeds of $50,400,000 in units and $23,948,750 in flow-through shares. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $15.00 for a period of 5 years from issuance. The underwriters have an option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 720,000 units to cover over-allotments and for market stabilization purposes.

The Company intends to use the net proceeds from the unit offering for general corporate purposes. Proceeds from the offering of the flow-through share 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. Its common shares (symbol DPM) are traded on the Toronto Stock Exchange. 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

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