DPM Completes Share Purchase of 5% of Vatrin to Hold 100% Indirect Interest in Deno Gold

TORONTO, ONTARIO -- (Marketwire) -- 12/23/10 -- (All Monetary Figures Are Expressed in U.S. Dollars Unless Otherwise Stated)

Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A) ('DPM' or 'the Company') is pleased to announce today the completion of an agreement wherein DPM, through a wholly owned subsidiary company, has purchased the balance of shares it did not own in Vatrin Investments Limited ('Vatrin') for net cash consideration of $1.5 million and the elimination of all associated third party indebtedness. Vatrin is a private entity which holds 100% of Deno Gold Mining Company CJSC ('Deno Gold'), its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located about 320 kilometres south east of the capital city of Yerevan in southern Armenia. The Company has recently completed a 50% mine and mill expansion at Deno Gold and is presently evaluating the possibility of supplementing its underground operations with an open pit.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development, mining and processing of precious metals properties. The Company's operating interests include its 100% ownership of Chelopech Mining EAD, its principal asset being the Chelopech mine, a gold, copper, silver concentrates producer located east of Sofia, Bulgaria, a 100% ownership of Namibia Custom Smelters (Pty) Ltd., a concentrate processing facility located in Tsumeb, Namibia, and a 100% interest in Deno Gold Mining Company CJSC, its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located in southern Armenia. DPM's interests also include a 100% interest in the Krumovgrad development stage gold property located in south eastern Bulgaria, near the town of Krumovgrad and certain exploration and exploitation properties 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 & Chief Financial Officer

(416) 365-2852
sanderson@dundeeprecious.com