DUNDEE PRECIOUS METALS COMPLETES
THE SALE OF ITS BACK RIVER PROJECT IN NUNAVUT

 Toronto, June 9, 2009 – Dundee Precious Metals Inc. (DPM, DPM.WT, DPM.WT.A – TSX) (“DPM” or the “Company”) announced today that it has completed its previously announced sale of its Back River exploration project in Nunavut to Sabina Silver Corporation (TSX-V: SBB.V) (“Sabina”). Pursuant to the transaction, the Company received in exchange for the Back River project:

• Cdn$7 million in cash;
• 17,000,000 Sabina common shares;
• 5,000,000 Series A Special Warrants; and
• 5,000,000 Series B Special Warrants

Each of the Special Warrants is exercisable for one common share and one-half of one common share purchase warrant (“Warrant”) of Sabina.  The Series A Special Warrants will be automatically exercised upon a decision to proceed to a feasibility study or proceed to production on the Back River project. The Series B Special Warrants will be automatically exercised upon a positive production decision with respect to the project. Each whole Warrant, if issued, will be exercisable for five years from the date of closing, at the discretion of DPM, for one Sabina common share at a price of Cdn$1.07 per Sabina common share.

As a result of the transaction, without factoring the exercise of the Special Warrants, DPM holds 18.8% of Sabina’s outstanding common shares.

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.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development and mining of precious metals.  DPM owns the Chelopech Mine, a producing gold/copper mine, and the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, as well as a 95% interest in the Kapan Mine in Armenia.  In addition, it is engaged in mineral exploration activities in Serbia.

For further information please contact:

DUNDEE PRECIOUS METALS INC.

Jonathan Goodman
President & Chief Executive Officer
Tel: (416) 365-2408
Email: jgoodman@dundeeprecious.com                  
Tel: (416) 365-5165

Lori Beak
Vice President, Investor Relations
and Corporate Secretary
Tel: (416) 365-5165
Email: lbeak@dundeeprecious.com