DPM Completes Sale of Timok and Potoj Cuka Gold Projects in Serbia

TORONTO, ONTARIO -- (Marketwire) -- 07/30/10 -- Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A) ('DPM' or 'the Company') is pleased to announce it has completed the sale of its Timok and Potoj Cuka gold projects located in Serbia (the 'Projects'). Pursuant to a business combination agreement dated April 28, 2010 among DPM, PJV Resources Inc. ('PJV') and Rodeo Capital Corp. (now Avala Resources Ltd. ('Avala')), PJV has acquired DPM's interest in the Projects through the acquisition of DPM's Serbian subsidiary, Dundee Plemeniti Metali d.o.o., in exchange for consideration consisting of PJV units and US$1.6 million in cash, and a business combination has been effected by way of a three-cornered amalgamation, whereby PJV has amalgamated with a wholly-owned subsidiary of Avala. Upon the completion of the amalgamation, all of the securities of PJV (including the securities issued to DPM as part of the sale of its Projects, and the common shares and warrants of PJV issuable upon the exchange of the subscription receipts issued in the PJV financing transaction that closed on April 28, 2010), were exchanged for (or became exercisable for) securities of Avala on a one-for-one basis.

As a result of the business combination and exchange of the PJV subscription receipts, DPM holds 73,437,357 common shares and 36,718,679 warrants of Avala, a company listed on the TSX Venture Exchange. DPM was also issued special rights (the 'Special Rights') to acquire up to an aggregate of 50,000,000 additional Avala common shares for no additional consideration, of which 25,000,000 are issuable upon a positive decision to proceed to a feasibility study on the Projects and an additional 25,000,000 are issuable upon a positive decision to bring all or part of the Projects into production. Upon completion of the business combination (and assuming no exercise of convertible securities) DPM holds approximately 50.3% of the outstanding Avala common shares or approximately 60.3% assuming the exercise of DPM's warrants (but assuming that no other convertible securities have been exercised and without factoring in the 50,000,000 Special Rights issued to DPM). Additional information with respect to the forgoing transaction, including the terms of securities acquired by DPM, is available in the Filing Statement of Avala filed on its SEDAR Profile at www.sedar.com.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development, mining and processing 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. DPM recently acquired Namibia Custom Smelters (Pty) Limited, owner of the Tsumeb smelter in Namibia, which processes, in addition to Chelopech concentrate, third party concentrates. DPM is also engaged in mineral exploration activities in Serbia.

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.

Contacts:

DUNDEE PRECIOUS METALS INC.

Jonathan Goodman

President & Chief Executive Officer

(416) 365-2408
jgoodman@dundeeprecious.com


DUNDEE PRECIOUS METALS INC.

Stephanie E. Anderson

Executive Vice President & CFO

(416) 365-2852
sanderson@dundeeprecious.com


DUNDEE PRECIOUS METALS INC.

Lori Beak

Vice President, Investor Relations & Corporate Secretary

(416) 365-5165
lbeak@dundeeprecious.com