HIGHLIGHTS

- Multi-disciplinary exploration has identified multiple drill hole
  intersections of massive sulfide to stockwork style high-sulfidation
  Cu-Au-Ag mineralization located approximately 400 metres and up to 1,000
  metres from the currently defined Chelopech ore bodies.
- First pass drilling was carried out on a nominal 150 metre drill hole
  spacing within the Chelopech North area (21 DD completed for
  16,880.4 metres) and returned significant intersections over a 950 metre
  long corridor.
- The mineralized corridor or 'footprint' of the drill intersections is
  very similar in size to the 'footprint' that encloses the Chelopech
  orebodies confirming the potential of the Chelopech mine environment
  to host significant additional Cu and Au resources.
- Several strongly Au-rich intercepts were encountered, for example in
  holes PTDD015 and PTDD020, where the Au:Cu ratio is markedly higher
  than the typical Chelopech mineralization style.

MAIN INTERCEPTS

Table 1 highlights key intercepts.

In situ copper ("CuEq") and gold equivalent "(AuEq") grades are based on the following DPM long term metal price assumptions: Au: US$850/oz, Ag: US$16/oz, Cu: US$2.50/lb.

BACKGROUND

DPM's Bulgarian exploration team has carried out an aggressive, multi-disciplinary surface exploration programme over the Chelopech deposit since 2004. Figure 1 shows the location of the project area. Exploration targets have included both high-sulfidation Cu-Au-Ag and porphyry Cu-Au systems. The multi-disciplinary exploration has included ground geophysics (Titan-24 and magnetics), soil geochemistry, geological mapping, reinterpretation of historic geophysical datasets together with an intensive review of the historic exploration database, structural analysis and diamond drilling.

Review of the historic exploration approach revealed that using a systematic drill hole spacing increased the probability of intersecting Chelopech style ore grade mineralization. The use of appropriate geophysical techniques early in the exploration program is also a clearly favourable situation when targeting Chelopech style mineralization.

-----------------------------------------------------------------------
---
                                    Table 1
                     Intersection Summary: September 2008
                         Cut off: $55 In Situ Value
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 HOLEID   FROM   TO  INTERVAL     AU     AG    CU   CUEQ   AUEQ  INTERVAL
            (m)  (m)       (m)  (g/t)  (ppm)   (%)    (%)  (ppm)      (RL)
--------------------------------------------------------------------------
 PTDD004   422  427         5   0.98  117.3  3.90   6.05  12.24       640
--------------------------------------------------------------------------
 PTDD007   353  360         7   0.44   23.3  0.27   0.71   1.43       635
 PTDD007   366  372         6   0.72   22.3  0.48   1.04   2.11       625
 PTDD007   383  405        22   4.86    8.1  0.56   3.05   6.17       600
--------------------------------------------------------------------------
 PTDD009   134  142         8   3.50   13.6     -   1.87   3.77       885
 PTDD009   211  223        12   1.64    2.5  0.04   0.88   1.78       810
--------------------------------------------------------------------------
 PTDD012   814  824        10   7.33    3.5     -   3.67   7.43       210
--------------------------------------------------------------------------
 PTDD013   770  775         5   1.54    2.8  0.01   0.88   1.61       300
--------------------------------------------------------------------------
 PTDD014   681  694        13   7.50   25.6  2.29   6.24  12.63       320
--------------------------------------------------------------------------
 PTDD015   582  589         7  41.46   13.3  1.91  22.59  45.72       420
--------------------------------------------------------------------------
 PTDD017   313  323        10   0.48   18.4  0.69   1.10   2.23       685
--------------------------------------------------------------------------
 PTDD020   621  629         8  11.17   15.3  0.51   6.19  12.52       370
--------------------------------------------------------------------------
Notes: 1) Drill hole intersections are downhole, not true width
       2) Drill hole intersections represent intercepts into a
          high-sulfidation epithermal style body
       3) Minimum intersection width: 5m
       4) Maximum consecutive waste: 5m
       5) Uncut assays
       6) Interval RL represents the RL at the midpoint of the intersection
       7) All samples assayed at SGS managed laboratory (Bulgaria)
       8) International standards and full QAQC samples inserted with all
          samples
Formula for AuEq:
 AuEq equals((Au_ppm x US$/g)+(Ag_ppm x US$/g)+(Cu_% x US$/%))/27.3281
Formula for CuEq:
 CuEq equals ((Au_ppm x USA$/g)+(Ag_ppm x US$/g)+(Cu_% x US$/%))/55.1155
Gold - US$/g - $27.3281  Silver - US$/g - $0.5144
Copper - US$/% - $55.1155

RESULTS FROM THE DPM DEEP DIAMOND DRILLING PROGRAM

During 2004 the Titan-24 Deep Earth Imaging multi-parameter (DCIP and MT) geophysical survey over the Chelopech deposit and near mine environs was completed. A significant amount of geophysical anomalies were generated from this survey and subsequently incorporated into a detailed target ranking model for the Chelopech near mine area. The target ranking process also included a thorough review of greater than 500,000 metres of historic drilling within the area of the Chelopech hydrothermal system.

The aim of the Chelopech North deep diamond drilling programme was to test the top two highest ranked areas within the Chelopech near mine environment - these were the Petrovden porphyry-style area of mineralization (PTDD001 & PTDD002) and the Chelopech North area.

The Chelopech North area is almost exclusively covered by a younger sedimentary ('flysch') sequence that ranges in thickness from 120 to 250 metres.

All samples have been sent for assay at the SGS managed laboratory at Chelopech in Bulgaria. A full sequence of duplicates, replicates and internationally accredited standards have been employed throughout the exploration program as part of DPM's rigorous exploration procedures.

The drilling has returned significant intersections using a $55 cut off for in situ value from nine of the sixteen pierce point locations, effectively realizing a 56% strike rate and defining ore grade high-sulfidation epithermal mineralization, similar to that currently being mined at Chelopech, within a corridor of approximately 950 metres x 400 metres located less than 400 metres from historic development. All significant intersections were located within the Chelopech Volcanic Formation which is the host lithology to the Chelopech Deposit. It is important to note that mineralization would appear to be open at depth and to the west and east - the Petrovden Fault, a steeply south dipping structure, closes mineralization to the immediate north of the project area.

The mineralized corridor or 'footprint' surrounding the new drill hole intercepts, and which is open in all directions except to the North, is of a similar size to the corridor that encloses Chelopech, as shown in Figure 1. The drill results are considered to be extremely encouraging as they clearly demonstrate the potential of the Chelopech Mine area to host significant additional Cu-Au-Ag resources. In addition, the mineralization is within easy access of the existing underground mine infrastructure. Further drilling of the volume defined by the surface drilling programme is best carried out from underground, and follow up drilling will be planned as part of the ongoing Chelopech resource development programme.

Dr. Julian F. H. Barnes, a qualified person under NI 43-101 and Executive Vice President of DPM, has supervised the preparation of the technical data included in this press release.

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, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and a 95% interest in the Kapan Mine in Armenia.

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. To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/CNPA.pdf

To view Appendix A - Chelopech North Drilling Collar Summary, please visit the following link: http://media3.marketwire.com/docs/CNDCS.pdf

Contacts:
Dundee Precious Metals Inc.
Jonathan Goodman
President & Chief Executive Officer
(416) 365-2408
Email: jgoodman@dundeeprecious.com

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

SOURCE: Dundee Precious Metals Inc.

mailto:jgoodman@dundeeprecious.com
mailto:gsanchez@dundeeprecious.com

- Initial excavation and sampling of trenches, using a notional trench spacing of 800m, along the strike extent of the target zone has confirmed significant gold mineralization over the entire 25 km length sampled to date.

- All identified anomalous areas have returned gold mineralized intercepts, using a cut off grade of 0.5g/t Au.

- In addition, broad zones of strongly anomalous gold mineralization have been outlined, using a notional 0.1g/t Au 'geological' cut off grade.

- Gold mineralization is associated with deformed and silicified limestones, marbles and skarns, intruded by andesites and monzonites.

- Key trench gold intercepts include the following (from North to South):

Korkan

-- JASTR009 45m at 3.0g/t from 0m

-- JASTR009 37m at 3.9g/t from 86m

Bigar

-- BITR001 6m at 2.9g/t from 164m

-- BITR001 24m at 1.0g/t from 376m

-- BITR002 12m at 1.1g/t from 66m

-- BITR002 12m at 2.8g/t from 88m

-- BITR002 36m at 1.1g/t from 108m

Kraku Pester

-- PETR002 18m at 1.8g/t from 0m

-- PETR002 28m at 3.0g/t from 26m

Umka

-- PCTTR010 11m at 1.9g/t from 193m

-- UMTR011 10m at 1.5g/t from 212m

-- UMTR012 6m at 1.8g/t from 174m

- The gold mineralized zone is open in both directions and DPM has secured exploration licences to cover all prospective parts of the limestone sequence along the western margin of the TMC.

- Exploration will continue to further determine the controls on gold mineralization and to generate drill targets.

- In addition, final gold assays have been received from the remainder of the 'proof of concept' drilling program from the limestone hosted gold Bozuluj Prospect in the Tilva Njagra Concession Licence and highlights include the following:

-- BZDD008 12m at 1.3g/t from 54m

-- BZDD009 17m at 0.7g/t from 0m

-- BZDD010 7.4m at 1.2g/t from 6.6m

-- BZDD012 12m at 1.1g/t from 36m

-- BZDD014 18m at 3.2g/t from 167m

BACKGROUND

Following the successful 'proof of concept' exploration results on the limestone hosted gold target at Bozuluj, a program of detailed geological mapping and trench sampling has been carried out along the 25 km length of soil sampling anomalies within the Potoj Cuka and Jasikovo exploration licenses within the TMC. The location of the two licenses is displayed in Figure 1.

Geological mapping of the 'limestone hosted' gold belt has determined a complex geological and structural sequence of limestone, marble, skarn, monzonite, diorite dykes, andesite, schist and sediments. Further work is required to determine, in more detail, the structural and lithological controls on the gold mineralization.

The initial program of 'scout' trenching has used a notional 800m spacing between trenches within the four main anomalous areas (from north to south as follows): Korkan, Bigar, Kraku Pester and Umka. Figure 2 displays the location of the key prospects with the background image of Au-Ag-As-Sb-Hg correlation from the soil sampling data. The figure also summarizes the geological association at each prospect.

For the majority of the trench sampling program a two metre sample interval has been used and the samples have been prepared at the SGS managed laboratory facility at Bor, eastern Serbia and have been assayed at the SGS managed laboratory at Chelopech in Bulgaria. Following DPM exploration standard procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards have been submitted with each batch of samples. A one metre sampling interval has been used for the Bozuluj 'proof of concept' diamond drilling program. Composite samples for metallurgical testing have been collected and compiled from the Bozuluj core and have been dispatched to SGS Lakefield, Toronto, Canada for first pass metallurgical testing. Results from the metallurgical test work are awaited.

RESULTS

The initial trench sampling program has been extremely successful, with gold mineralization being encountered in almost all trenches excavated to date.

Table 1 highlights key intercepts from the trench sampling program, using a cut off grade of 0.5g/t Au, whilst Table 2 displays selected intercepts using a 'geological' cut off grade of 0.1g/t Au in order to illustrate the frequent broad zones of anomalous gold that surround the mineralized intervals using a 0.5g/t Au cut off.

Table 3 summarizes the results of the 'proof of concept' drilling program at Bozuluj, with intersections calculated using a cut off grade of 0.5g/t Au, a minimum intersection length of 5m and a maximum contiguous interval of waste of 5m. Note that holes BZDD001 to BZDD007 have previously been reported but are included in Table 3 for completeness. The 'proof of concept' program is considered to have been very successful as numerous encouraging intersections have been returned, given the wide spacing of the first pass drilling program.

It is of note that several of the trenches began or ended in mineralization, including BITR002, BITR004 and BITR010 at the Bigar prospect, PETR001, PETR002 and PETR005 at Kraku Pester and JASTR009 at Korkan.

Geological mapping has indicated that the mineralization is structurally controlled and is dominantly hosted within strongly altered limestone, marble and skarn which are spatially associated with intrusive rocks including monzonite, diorite dykes and andesite bodies. Further mapping and structural studies, coupled with re-interpretation of the extensive geophysical data that has been collected is required to further delineate the controls on mineralization prior to targeting further drilling. Infill trenching is also required to refine the numerous targets that have been identified to date.

Stream sediment sampling (both 'traditional' stream sediments samples and bulk leachable gold, or 'BLEG' samples) have been collected from the remaining exploration licences which have been staked to cover the remainder of the prospective geological trend. The stream sediment samples have been dispatched for multi-element analysis by inductively coupled plasma (ICP-MS) techniques using equipment at the ALS Chemex laboratory, Perth, Australia. The 'BLEG' samples have been sent to SGS Welshpool, Perth, Australia for leach analysis by method BLL62N. Soil sampling has also been initiated to extend coverage to the north and west of the Korkan prospect at the northern end of the currently identified anomalous zone.

The exploration to date has confirmed the existence of a greater than 25 km long zone of strongly anomalous gold mineralization. Much further work is required to begin to develop both a model of the controls and location of the gold mineralization in this newly discovered belt and to refine targets for follow up drilling. Nevertheless it is clearly evident that a new gold mineralized province has been outlined along the western margin of the TMC.

Dr. Julian F. H. Barnes, a qualified person under NI 43-101 and Executive Vice President of DPM, has supervised the preparation of the technical data included in this press release.

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, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and a 95% interest in the Kapan Mine in Armenia.

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.

To view "Figure 1: Location of Potoj Cuka and Jasikovo exploration licenses within the Timok Magmatic Complex," please visit the link below:

http://media3.marketwire.com/docs/dunfig1.pdf

To view "Figure 2: Location of key prospects," please visit the link below:

http://media3.marketwire.com/docs/dunfig2.pdf

To view "Table 1," please visit the link below:

http://media3.marketwire.com/docs/dunt1.pdf

To view "Table 2," please visit the link below:

http://media3.marketwire.com/docs/dunt2.pdf

To view "Table 3," please visit the link below:

http://media3.marketwire.com/docs/dunt3.pdf

SOURCE: Dundee Precious Metals Inc.

Dundee Precious Metals Inc.
Jonathan Goodman
President & Chief Executive Officer
(416) 365-2408
Email: jgoodman@dundeeprecious.com
Dundee Precious Metals Inc.
Gabriela M. Sanchez
Vice President, Investor Relations
(416) 365-2549
Email: gsanchez@dundeeprecious.com

HIGHLIGHTS

- Diamond drill results have been returned from the initial 40m by 40m spaced drill program in the Vein 5 area at Shahumyan, which has been tested for a potential 'starter' pit to supplement underground ore for the Kapan milling facility

- Numerous wide polymetallic intercepts have been returned over the entire 600m strike length that has been drill tested to date. Many holes have multiple intercepts.

MAIN INTERCEPTS

Table 1 highlights key intercepts.

In situ gold equivalent ("AuEq") grade is based on the following DPM long term metal price assumptions: Au: US$850/oz, Ag: US$16/oz, Cu: US$2.50/lb, Zn: US$1.00/lb.

BACKGROUND

The Kapan mining area is located in the south eastern corner of Armenia, 320 km south of the capital city of Yerevan and forms part of the Tethyan tectonic belt which extends from south east Asia to Europe and is one of the most strongly mineralized belts on earth. The belt contains world class porphyry copper-gold, polymetallic vein array and epithermal gold-silver deposits, and is host to the Chelopech deposit in Bulgaria and the Bor deposits in Serbia. Figure 1 shows the location of the Kapan mine.

The Kapan mine consists of two parts, a copper deposit known as Centralni and a polymetallic deposit of copper (Cu), gold (Au), silver (Ag), zinc (Zn) and lead (Pb). Production from the Centralni deposit started in the 1950s, initially from underground and then from both underground and an open pit, and records indicate that more than 30mt at approximately 1.3% Cu have been extracted to date.

The Shahumyan polymetallic vein array was first discovered in the early part of the 20th century and was briefly exploited on a small scale during World War II. Detailed exploration of the Shahumyan deposit commenced in 1976 and to date at least 280,000m of diamond drilling and over 33,000m of underground access development from adits on the 700m, 780m, 820m and 860m levels have been completed. Below the 700 level short exploration drives have been completed at the 605m and 505m levels. The bulk of the historical surface and underground exploration drilling has been conducted to the 550m mine level which is approximately 370m below the ground surface. The mineralization at Shahumyan occurs in altered dacite, andesite and basaltic host rocks. The main ore minerals are chalcopyrite, sphalerite and minor galena, along with gold and silver. Mineralization styles include massive sulphide veining, stockwork and network veining and disseminated styles.

To view Table 1, please visit the following link:

http://media3.marketwire.com/docs/duntab1b.pdf

An underground mining operation is currently being carried out at Shahumyan and two clean, readily saleable concentrates are produced, a copper-gold-silver and a zinc-silver-gold, which are transported by road and rail to the Black Sea for export.

In order to collect the data required to complete a National Instrument 43-101 ("NI 43-101") compliant resource estimate, DPM has purchased three diamond drill rigs and three reverse circulation ("RC") drill rigs and is in the final stages of equipping and commissioning a new assay facility, to be independently managed by SGS. In addition, all the extra equipment required to support a large drilling program have been put in place. To date, three diamond rigs and one RC are operational. A second RC rig is due to begin operations shortly, followed by the final RC rig.

RESULTS FROM THE DPM MANAGED DIAMOND DRILLING PROGRAM

A zone in the north west quadrant of the Shahumyan deposit, termed the Vein 5 Area, has been chosen for the first 'starter pit' drilling programme. A 600m long zone has been drilled out, firstly using an 80m by 80m collar pattern with a follow-up drill spacing of 40m by 40m. A total of 77 diamond drill holes for some 12,832.6 metres comprise the current program being reported on. Samples are collected using a 1m interval and the full standard set of DPM sampling and QAQC procedures have been employed throughout the drilling programme, including the submission of international standards in the assay sequence.

Until the full assay facility is commissioned at Kapan (the laboratory is currently undergoing initial commissioning), samples have been despatched for assay at the SGS managed laboratories in Perth, Western Australia, China and Chelopech in Bulgaria.

Figure 2 displays a plan view of the historical data set, as 5m composites, displayed in red, whilst the current DPM drilling data, also as 5m down hole composites, are displayed in yellow. Visible composites in Figure 1 return an in situ value of greater than $12 per tonne, using long term metal price assumptions of $850/oz for gold, $16/oz for silver, $2.50/lb for copper and $1.00/lb for zinc. A 500m grid is displayed in Figure 2, for scale.

Figure 2 also clearly shows the very large mineralized 'footprint' at Shahumyan (approximately 2.5km by 2km). The area drilled to date by DPM represents less than 2.5% of the footprint.

Drill hole collar data is displayed in Appendix 1, whilst a full set of intercepts from the current drill program, based on applying a cut off of $15 per tonne in situ value, a 5 metre minimum intercept length and a maximum consecutive waste interval of 5 metres, is displayed as Appendix 2.

Figure 3 shows a typical drill cross section, showing 5 metre down hole composites, colour coded by in situ value, using the above metal prices (north-south section, looking west, on 8623150E). The drill hole names are annotated in Figure 3 as numbers, for clarity (for example, hole SHDDR0028 is represented as '28'). A 100m grid is displayed for scale. The colour scheme of the in situ values in Figure 3 is as follows:

- Less than $10/tonne ('t'): Dark blue

- $10/t to $15/t: Light blue

- $15/t to $20/t: Green

- $20/t to $30/t: Yellow

- $30/t to $50/t: Red

- Greater than $50/t: Magenta

The multiple broad zones of mineralization, surrounding the 'Veins,', which have traditionally been the subject of underground mining, are clearly visible.

The drilling results to date are considered extremely encouraging for the development of a major large tonnage polymetallic deposit suitable for large scale open pit mining, considering that less than 2.5% of the total mineralization 'footprint' at Shahumyan has been tested by the DPM drilling being reported.

The assay data set, along with detailed geological and structural interpretations, surface topographic surveys and other necessary information is being compiled in order that an independent NI 43-101 compliant report can be completed. The resultant resource block model will be used as the data source for pit optimization, pit design and scheduling studies in order to determine the location of a 'starter' pit to supplement the underground ore currently being used as the feed source for the processing facility at Kapan.

An intensive drilling programme, using multiple diamond and RC drill rigs, is underway in order to continue to drill out the foot print of the Shahumyan polymetallic deposit.

Dr. Julian F. H. Barnes, a qualified person under NI 43-101 and Executive Vice President of DPM, has supervised the preparation of the technical data included in this press release.

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, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and a 95% interest in the Kapan Mine in Armenia.

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.

To view Figures 1, 2 and 3, please visit the following link:

http://media3.marketwire.com/docs/dunpicsb.pdf

To view Appendix 1, please visit the following link:

http://media3.marketwire.com/docs/dunapp1.pdf

To view Appendix 2, please visit the following link:

http://media3.marketwire.com/docs/dunapp2.pdf

SOURCE: Dundee Precious Metals Inc.

DUNDEE PRECIOUS METALS INC.
Jonathan Goodman
President & Chief Executive Officer
(416) 365-2408
Email: jgoodman@dundeeprecious.com
DUNDEE PRECIOUS METALS INC.
Gabriela M. Sanchez
Vice President Investor Relations
(416) 365-2549
Email: gsanchez@dundeeprecious.com

HIGHLIGHTS

- Multi-disciplinary exploration has identified multiple drill hole
  intersections of massive sulfide to stockwork style high-sulfidation
  Cu-Au-Ag mineralization located approximately 400 metres and up to 1,000
  metres from the currently defined Chelopech ore bodies.
- First pass drilling was carried out on a nominal 150 metre drill hole
  spacing within the Chelopech North area (21 DD completed for
  16,880.4 metres) and returned significant intersections over a 950 metre
  long corridor.
- The mineralized corridor or 'footprint' of the drill intersections is
  very similar in size to the 'footprint' that encloses the Chelopech
  orebodies confirming the potential of the Chelopech mine environment
  to host significant additional Cu and Au resources.
- Several strongly Au-rich intercepts were encountered, for example in
  holes PTDD015 and PTDD020, where the Au:Cu ratio is markedly higher
  than the typical Chelopech mineralization style.

MAIN INTERCEPTS

Table 1 highlights key intercepts.

In situ copper ("CuEq") and gold equivalent "(AuEq") grades are based on the following DPM long term metal price assumptions: Au: US$850/oz, Ag: US$16/oz, Cu: US$2.50/lb.

BACKGROUND

DPM's Bulgarian exploration team has carried out an aggressive, multi-disciplinary surface exploration programme over the Chelopech deposit since 2004. Figure 1 shows the location of the project area. Exploration targets have included both high-sulfidation Cu-Au-Ag and porphyry Cu-Au systems. The multi-disciplinary exploration has included ground geophysics (Titan-24 and magnetics), soil geochemistry, geological mapping, reinterpretation of historic geophysical datasets together with an intensive review of the historic exploration database, structural analysis and diamond drilling.

Review of the historic exploration approach revealed that using a systematic drill hole spacing increased the probability of intersecting Chelopech style ore grade mineralization. The use of appropriate geophysical techniques early in the exploration program is also a clearly favourable situation when targeting Chelopech style mineralization.

--------------------------------------------------------------------------
                                    Table 1
                     Intersection Summary: September 2008
                         Cut off: $55 In Situ Value
--------------------------------------------------------------------------

--------------------------------------------------------------------------
 HOLEID   FROM   TO  INTERVAL     AU     AG    CU   CUEQ   AUEQ  INTERVAL
            (m)  (m)       (m)  (g/t)  (ppm)   (%)    (%)  (ppm)      (RL)
--------------------------------------------------------------------------
 PTDD004   422  427         5   0.98  117.3  3.90   6.05  12.24       640
--------------------------------------------------------------------------
 PTDD007   353  360         7   0.44   23.3  0.27   0.71   1.43       635
 PTDD007   366  372         6   0.72   22.3  0.48   1.04   2.11       625
 PTDD007   383  405        22   4.86    8.1  0.56   3.05   6.17       600
--------------------------------------------------------------------------
 PTDD009   134  142         8   3.50   13.6     -   1.87   3.77       885
 PTDD009   211  223        12   1.64    2.5  0.04   0.88   1.78       810
--------------------------------------------------------------------------
 PTDD012   814  824        10   7.33    3.5     -   3.67   7.43       210
--------------------------------------------------------------------------
 PTDD013   770  775         5   1.54    2.8  0.01   0.88   1.61       300
--------------------------------------------------------------------------
 PTDD014   681  694        13   7.50   25.6  2.29   6.24  12.63       320
--------------------------------------------------------------------------
 PTDD015   582  589         7  41.46   13.3  1.91  22.59  45.72       420
--------------------------------------------------------------------------
 PTDD017   313  323        10   0.48   18.4  0.69   1.10   2.23       685
--------------------------------------------------------------------------
 PTDD020   621  629         8  11.17   15.3  0.51   6.19  12.52       370
--------------------------------------------------------------------------

Notes: 1) Drill hole intersections are downhole, not true width
       2) Drill hole intersections represent intercepts into a
          high-sulfidation epithermal style body
       3) Minimum intersection width: 5m
       4) Maximum consecutive waste: 5m
       5) Uncut assays
       6) Interval RL represents the RL at the midpoint of the intersection
       7) All samples assayed at SGS managed laboratory (Bulgaria)
       8) International standards and full QAQC samples inserted with all
          samples


Formula for AuEq:
 AuEq equals((Au_ppm x US$/g)+(Ag_ppm x US$/g)+(Cu_% x US$/%))/27.3281

Formula for CuEq:
 CuEq equals ((Au_ppm x USA$/g)+(Ag_ppm x US$/g)+(Cu_% x US$/%))/55.1155

Gold - US$/g - $27.3281  Silver - US$/g - $0.5144
Copper - US$/% - $55.1155

RESULTS FROM THE DPM DEEP DIAMOND DRILLING PROGRAM

During 2004 the Titan-24 Deep Earth Imaging multi-parameter (DCIP and MT) geophysical survey over the Chelopech deposit and near mine environs was completed. A significant amount of geophysical anomalies were generated from this survey and subsequently incorporated into a detailed target ranking model for the Chelopech near mine area. The target ranking process also included a thorough review of greater than 500,000 metres of historic drilling within the area of the Chelopech hydrothermal system.

The aim of the Chelopech North deep diamond drilling programme was to test the top two highest ranked areas within the Chelopech near mine environment - these were the Petrovden porphyry-style area of mineralization (PTDD001 & PTDD002) and the Chelopech North area.

The Chelopech North area is almost exclusively covered by a younger sedimentary ('flysch') sequence that ranges in thickness from 120 to 250 metres.

All samples have been sent for assay at the SGS managed laboratory at Chelopech in Bulgaria. A full sequence of duplicates, replicates and internationally accredited standards have been employed throughout the exploration program as part of DPM's rigorous exploration procedures.

The drilling has returned significant intersections using a $55 cut off for in situ value from nine of the sixteen pierce point locations, effectively realizing a 56% strike rate and defining ore grade high-sulfidation epithermal mineralization, similar to that currently being mined at Chelopech, within a corridor of approximately 950 metres x 400 metres located less than 400 metres from historic development. All significant intersections were located within the Chelopech Volcanic Formation which is the host lithology to the Chelopech Deposit. It is important to note that mineralization would appear to be open at depth and to the west and east - the Petrovden Fault, a steeply south dipping structure, closes mineralization to the immediate north of the project area.

The mineralized corridor or 'footprint' surrounding the new drill hole intercepts, and which is open in all directions except to the North, is of a similar size to the corridor that encloses Chelopech, as shown in Figure 1. The drill results are considered to be extremely encouraging as they clearly demonstrate the potential of the Chelopech Mine area to host significant additional Cu-Au-Ag resources. In addition, the mineralization is within easy access of the existing underground mine infrastructure. Further drilling of the volume defined by the surface drilling programme is best carried out from underground, and follow up drilling will be planned as part of the ongoing Chelopech resource development programme.

Dr. Julian F. H. Barnes, a qualified person under NI 43-101 and Executive Vice President of DPM, has supervised the preparation of the technical data included in this press release.

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, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and a 95% interest in the Kapan Mine in Armenia.

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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/CNPA.pdf

To view Appendix A - Chelopech North Drilling Collar Summary, please visit the following link: http://media3.marketwire.com/docs/CNDCS.pdf

SOURCE: Dundee Precious Metals Inc.

Dundee Precious Metals Inc.
Jonathan Goodman
President & Chief Executive Officer
(416) 365-2408
Email: jgoodman@dundeeprecious.com
Dundee Precious Metals Inc.
Gabriela M. Sanchez
Vice President Investor Relations
(416) 365-2549
Email: gsanchez@dundeeprecious.com