Dundee Precious Metals Completes Investment Protection Agreement for the Loma Larga Project in Ecuador

TORONTO, Aug. 18, 2023 - Dundee Precious Metals Inc. (TSX: DPM) ("DPM" or "the Company") is pleased to announce it has entered into an investment protection agreement ("IPA" or "the agreement") with the Government of Ecuador for the Loma Larga project ("Loma Larga" or "the Project"). Under the terms of the IPA, the Government of Ecuador has granted DPM tax stability and certain tax incentives, as well as legal protections including stability of the regulatory framework and resolution of disputes through international arbitration.

"The successful completion of the IPA is a significant milestone and positive step forward for the project. This agreement provides further legal protections and tax stability for DPM and our investors," said David Rae, President and Chief Executive Officer of Dundee Precious Metals. "The IPA represents our dedication to working collaboratively with stakeholders, including the Government of Ecuador. We will continue to take a disciplined approach to future investment and advancement of the project based on the receipt of other key milestones and overall operating environment in country."

Key incentives and protections for DPM under the IPA include:

• A 5% discount on the income tax rate, fixed at 20%
• Tax stability on VAT
• Exemption on import duties for key machinery for plant and mine facilities
• Protections related to the prohibition of all forms of confiscation, non-discriminatory treatment and equal playing field, legal and tax stability
• International arbitration based in New York, should there be any disputes in relation to the Project
  

The terms of the IPA stipulate that, in order to develop the Loma Larga project, DPM will have to invest greater than US$400 million during the construction and production phases of the project. In-line with the Company's approach to disciplined project development, DPM intends to meet certain additional milestones for Loma Larga, including the resolution of the constitutional court case and receipt of the environmental licence, prior to committing significant capital to the project.

About Dundee Precious Metals Inc.

Dundee Precious Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Ecuador and Serbia. The Company's purpose is to unlock resources and generate value to thrive and grow together. This overall purpose is supported by a foundation of core values, which guides how the Company conducts its business and informs a set of complementary strategic pillars and objectives related to ESG, innovation, optimizing our existing portfolio, and growth. The Company's resources are allocated in-line with its strategy to ensure that DPM delivers value for all of its stakeholders.

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Forward Looking Statements are statements that are not historical facts and are generally, but not always, identified by the use of forward looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "guidance", "outlook", "intends", "anticipates", "believes", or variations of such words and phrases or that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms or similar expressions. The Forward Looking Statements in this news release include, without limitation, statements with respect to potential benefits of the IPA; DPM's future approach to investments in Loma Larga and DPM's objectives with respect to meeting certain milestones. Forward Looking Statements are based on certain key assumptions and the opinions and estimates of management and its advisers, as of the date such statements are made, and they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any other future results, performance or achievements expressed or implied by the Forward Looking Statements. Such factors include, among others, the lack of certainty with respect to foreign legal systems, which may not be immune from the influence of political pressure, NGO activism, corruption or other factors that are inconsistent with the rule of law; risks inherent to conducting business in a foreign jurisdiction, where political instability is greater than in Canada and those risk factors discussed or referred to in any other documents (including without limitation the Company's most recent Annual Information Form) filed by the Company from time to time with the securities regulatory authorities in all provinces and territories of Canada and available on SEDAR+ at www.sedarplus.com. The reader has been cautioned that the foregoing list is not exhaustive of all factors which may have been used. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward Looking Statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that Forward Looking Statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company's Forward Looking Statements reflect current expectations regarding future events and speak only as of the date hereof. Unless required by securities laws, the Company undertakes no obligation to update Forward Looking Statements if circumstances or management's estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on Forward Looking Statements.