(All monetary figures are expressed in Canadian Dollars unless otherwise stated)

Dundee Precious Metals Inc. ("DPM" or the "Company")
(TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) today announced its unaudited results for
the first quarter ended March 31, 2009. DPM reported a first quarter net loss of
$6.1 million (basic and diluted net loss per share of $0.06). This compares with
first quarter 2008 net earnings of $8.4 million (basic and diluted net earnings
per share of $0.14).


"Higher mine output and lower unit operating costs contributed to strong first
quarter operating performance at Chelopech - providing a strong foundation for
the planned mine and mill expansion," said Jonathan Goodman, President and CEO.
"In addition, restructuring activities, including cost savings initiatives, are
continuing throughout the organization with positive results."


The following table summarizes the Company's financial and operating results for
the periods indicated:




----------------------------------------------------------------------------
$ millions, except                                             Three Months
per share amounts                                        -------------------
Ended March 31,                                              2009      2008
----------------------------------------------------------------------------
Net Revenue                                              $   27.0  $   39.8
Cost of Sales                                                23.4      21.9
----------------------------------------------------------------------------
Gross Profit from Mining Operations                           3.6      17.9
----------------------------------------------------------------------------
Investment and Other Income (Expense)                        (0.9)      2.4
Net Earnings (Loss)                                          (6.1)      8.4

Basic Earnings (Loss) Per Share                          $  (0.06) $   0.14
Diluted Earnings (Loss) Per Share                        $  (0.06) $   0.14

Net Cash Used in Operating Activities                       (12.7)     (7.4)
Capital Expenditures                                         (8.5)    (19.7)
Purchase of Short-term Investments                           (5.6)        -
Other Investing Activities                                   (1.3)      3.0
Financing Activities                                         (0.9)     (0.6)
----------------------------------------------------------------------------
Decrease in Cash                                         $  (29.0) $  (24.7)
----------------------------------------------------------------------------

Concentrate Produced (mt)
 Chelopech                                                 16,305    14,183
 Deno Gold                                                      -     1,885
Cash Cost per tonne Ore Processed (US$/t)(1)
 Chelopech                                               $  47.74  $  59.38
 Deno Gold                                               $      -  $ 107.54
----------------------------------------------------------------------------



FIRST QUARTER 2009 - FINANCIAL HIGHLIGHTS

- First quarter of 2009 financial results, relative to first quarter of 2008,
benefited from improved operating performance, including a 20% reduction in unit
cash cost per tonne and reduced exploration and administrative expenses due to
ongoing restructuring and cost savings initiatives.


- The net loss in the first quarter of 2009 was $6.1 million compared to net
earnings of $8.4 million in the corresponding prior year period. The decrease in
earnings was primarily due to lower gross profit from mining operations and a
foreign exchange loss partially offset by a decrease in administrative and
exploration expenses. The decrease in gross profit from mining operations was
primarily due to lower deliveries of concentrates and lower selling prices for
copper, gold and silver partially offset by lower production costs and
favourable mark-to-market adjustments relating to the open positions of
provisionally priced concentrate sales, net of losses on copper derivatives.


- The Chelopech operations reported net revenue of $26.4 million on
corresponding concentrate deliveries of 16,573 tonnes. Chelopech cash cost per
tonne of ore processed(1) in the period was 20% lower than the corresponding
prior year period due to the favourable impact of a weaker Euro relative to the
U.S. dollar (depreciation of 13% period over period), higher volumes of material
processed, lower spending on services due to the implementation of cost savings
initiatives and lower prices for certain raw materials. These favourable
variances were partially offset by higher spending on backfill due to the
introduction of hydraulic backfill in the second quarter of 2008 with higher
volume of backfill placed in stopes, and increased labour rates.


- The Deno Gold operation was on care and maintenance in the first quarter of
2009 and reported a gross loss from mining operations of $3.6 million.


- Working capital requirements in the first quarter of 2009 increased by $14.4
million due to a decrease in accounts payable, an increase in accounts
receivable and an increase in inventories partially offset by an increase in
deferred revenue.


- As at March 31, 2009, DPM had cash, short-term investments and marketable
securities of $82.2 million (market value) versus $108.6 million (market value)
at the end of year 2008.


SIGNIFICANT ITEMS

- Results of the update to the 2005 definitive feasibility study on the
Chelopech Expansion Project confirmed the commercial viability of the project
and indicated an internal rate of return of over 27%, future capital costs of
US$216 million and a payback period of approximately three years.


- Certain permits required to advance the construction of the mine and mill
expansion, including the semi-autogenous grinding mill and concentrator
expansion, have been received and work is progressing. The metals processing
facility is in the process of being permitted with construction expected to
commence in the year 2010, subject to financing and approval by DPM's board of
directors.


- DPM reached a definitive agreement with Sabina Silver Corporation ("Sabina")
for the sale of the Back River project in exchange for $7 million cash, 17
million Sabina common shares and 10 million Special Warrants, consisting of one
common share and 1/2 common share purchase warrant exercisable upon Sabina
achieving certain exploration and production milestones or upon the occurrence
of certain other events. The transaction is subject to various conditions,
including regulatory and shareholder approvals.


- In response to the very positive regulatory and operational advances made by
Deno Gold in the five month period it was on care and maintenance, DPM elected
to restart operations at the Kapan facilities in April 2009. At current metal
prices, Deno Gold is still expected to incur a financial loss in 2009 on its
mining operations. However, the benefits of restarting operations, including the
minimization of losses, outweigh the costs of maintaining the operations on care
and maintenance.


- The Company entered into certain cash settled derivative transactions with
respect to 2,900 tonnes of payable copper in concentrate sold by Chelopech on a
provisional pricing basis. The derivative contracts were entered into to
mitigate substantially all of the copper price exposure and associated earnings
volatility as a result of the time lag between the receipt of provisional sales
revenue and the specified final pricing period. These derivative contracts
mature over the period of April through June 2009.


A complete set of DPM's Consolidated Financial Statements, Notes to the
Consolidated Financial Statements and Management's Discussion and Analysis for
the first quarter ended March 31, 2009 will be posted on the Company's website
at www.dundeeprecious.com and will be filed on Sedar at www.sedar.com.


CONFERENCE CALL

An analyst conference call is scheduled for Wednesday, May 13, 2009 at 3:30 p.m.
(EST) in conjunction with the Company's Annual and General Meeting of
Shareholders, to present these results and will be webcast live at:
http://events.onlinebroadcasting.com/dundee/051309/index.php.


The audio webcast for this conference call will be archived and available on the
Company's website at www.dundeeprecious.com.


OVERVIEW

DPM is a Canadian based, international mining company engaged in the
acquisition, exploration, development and mining of precious metal properties.
Its common shares and share purchase warrants (symbols: DPM; DPM.WT; DPM.WT.A)
are traded on the Toronto Stock Exchange ("TSX"). DPM's business objectives are
to identify, acquire, finance, develop and operate low-cost, long-life mining
properties.


The Company's operating interests include its 100% ownership of Chelopech Mining
EAD ("Chelopech"), a gold, copper, silver concentrates producer, owner of the
Chelopech mine located approximately 70 kilometres east of Sofia, Bulgaria, and
a 95% interest in Vatrin Investment Limited ("Vatrin"), 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. 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, a 100% interest in the Back River gold project located in Nunavut
in the Canadian Arctic and numerous exploration properties in one of the larger
gold-copper-silver mining regions in Serbia. On March 30, 2009, DPM announced
that it had entered into a definitive agreement to sell its Back River
properties.


SUMMARIZED FINANCIAL RESULTS

Net Revenue

Net revenue from the sale of concentrates of $27.0 million in the first quarter
of 2009 was $12.8 million or 32% lower than first quarter of 2008 due primarily
to a decrease in deliveries of concentrates and lower selling prices for copper,
gold and silver partially offset by the favourable impact of a weaker Canadian
dollar relative to the U.S. dollar and favourable mark-to-market adjustments,
net of losses on copper derivatives. The weakening of the Canadian dollar
relative to the U.S. dollar increased revenue by $5.0 million in the period.


The average London Metal Exchange ("LME") cash copper price(2) in the first
quarter of 2009 of US$1.55/lb was 56% lower than first quarter of 2008 average
price of US$3.54/lb resulting in a significant decrease in revenue in the first
quarter of 2009. The average London Bullion gold price(2) in the first quarter
of 2009 of US$908/oz was 2% lower than first quarter of 2008 average price of
US$927/oz. Favourable mark-to-market adjustments of $4.6 million, relating to
the open positions of provisionally priced concentrate sales, were recorded in
the first quarter of 2009 as a result of the increase in forward prices for
copper and zinc as at March 31, 2009 relative to December 31, 2008, compared to
favourable mark-to-market adjustments of $2.8 million recorded in the first
quarter of 2008. Partially offsetting the favourable mark-to-market adjustments
recorded in the first quarter of 2009 were losses on copper derivatives of $1.3
million.


Deliveries of concentrates produced at Chelopech of 16,573 tonnes in the first
quarter of 2009 were 11% lower than first quarter of 2008 deliveries of 18,529
tonnes due to a drawdown of concentrate inventories in the first quarter of
2008. Deliveries of concentrates produced at Deno Gold were nil in the first
quarter of 2009 compared to deliveries of 872 tonnes in the first quarter of
2008 as Deno Gold operations were on care and maintenance in the first quarter
of 2009.


Cost of sales

Cost of sales of $23.4 million in the first quarter of 2009 was $1.5 million or
7% higher than the corresponding prior year period due primarily to the
unfavourable impact of a weaker Canadian dollar relative to the U.S. dollar
partially offset by lower deliveries of concentrates and lower production costs
at Chelopech. Cost of sales at Chelopech and Deno Gold are converted from Euro
and Dram to U.S. dollar and the U.S. dollar consolidated cost of sales is
converted to Canadian dollar. The weakening of the Canadian dollar relative to
the U.S. dollar increased cost of sales by $3.4 million in the period.


Cash cost per tonne of ore processed(1) at Chelopech in the first quarter of
2009 of US$47.74 was US$11.64 or 20% lower than first quarter of 2008 cash cost
per tonne of ore processed(1) of US$59.38 due to the favourable impact of a
weaker Euro relative to the U.S. dollar (depreciation of 13% period over
period), higher volumes of material processed, lower spending on services
resulting from the implementation of cost savings initiatives introduced in late
2008 and in the first quarter of 2009 and a decrease in prices for certain raw
materials. These positive variances were partially offset by higher spending on
backfill due to the introduction of hydraulic backfill in the second quarter of
2008 with higher volume of backfill placed in stopes, and increased labour
rates.


Gross profit

Chelopech recorded a gross profit from mining operations of $7.3 million in the
first quarter of 2009 compared to a gross profit of $20.4 million in the first
quarter of 2008. The decrease in gross profit from mining operations was due to
lower selling prices for copper, gold and silver and lower deliveries of
concentrates partially offset by lower production costs and favourable
mark-to-market adjustments, net of losses on copper derivatives. The average LME
cash copper price(2) in the first quarter of 2009 was 56% lower than first
quarter of 2008 average price. The average London Bullion gold price(2) in the
first quarter of 2009 was 2% lower than first quarter of 2008 average price.
Favourable mark-to-market adjustments of $3.9 million relating to the open
positions of provisionally priced concentrate sales were recorded in the first
quarter of 2009, as a result of the increase in forward prices for copper as at
March 31, 2009 relative to December 31, 2008, compared to favourable
mark-to-market adjustments of $1.5 million recorded in the first quarter of
2008. Offsetting the favourable mark-to-market adjustments recorded in the first
quarter of 2009 were losses of $1.2 million related to the copper derivatives.


Deno Gold recorded a gross loss from mining operations of $3.6 million in the
first quarter of 2009, which was higher than the gross loss from mining
operations of $2.5 million recorded in the first quarter of 2008. Deno Gold was
on care and maintenance in the first quarter of 2009. Favourable mark-to-market
adjustments of $0.7 million on the open positions of provisionally priced
concentrate sales were recorded in the first quarter of 2009 compared to
favourable adjustments of $1.3 million in the first quarter of 2008.


Investment and other income (expense)

Investment and other expense in the first quarter of 2009 was $0.9 million
compared to first quarter of 2008 investment and other income of $2.4 million.
The decrease was primarily due to lower net realized gains from the sales of
investments and an investment write-down of $1.1 million as a result of the
decline in market value of one investment in the period.


Administrative expense

Administrative expense of $4.0 million in the first quarter of 2009 was $0.9
million lower than first quarter of 2008 due primarily to a decrease in
employment costs and associated expenses and lower spending on outside services
as a result of the cost savings initiatives introduced in the first quarter of
2009.


Exploration expense

Exploration expense of $1.6 million in the first quarter of 2009 was $3.5
million lower than first quarter of 2008 due to a decrease in the level of
exploration activities in Serbia following the suspension of activities in the
fourth quarter of 2008.


Foreign Exchange

Monetary assets and liabilities denominated in foreign currencies are translated
into Canadian dollars at the period end exchange rates, whereas non-monetary
assets and liabilities and related expenses denominated in foreign currencies
are translated at the exchange rate in effect at the transaction date. Income
and expense items are translated at the exchange rate in effect on the date of
the transaction. Exchange gains and losses resulting from the translation of
these amounts are included in the consolidated statement of earnings. In the
first quarter of 2009, there was a foreign exchange loss of $2.7 million
compared with a foreign exchange gain of $0.5 million in the first quarter of
2008.


Income tax recovery

DPM's effective tax recovery rate of 10.0% for the first quarter of 2009 was
lower than the statutory rate of 33.0% primarily due to the unrecognized tax
benefits relating to operating losses and the non-deductible write-downs of
investments and stock option expense partially offset by the benefit of profits
earned in jurisdictions having a lower tax rate.


Cash Flow (Shortfall) and Financial Condition

The following table summarizes the Company's cash shortfall from operating
activities for the periods indicated:




----------------------------------------------------------------------------
$ thousands                                                    Three Months
                                                         -------------------
Ended March 31,                                              2009      2008
----------------------------------------------------------------------------
Net earnings (loss)                                      $ (6,100) $  8,428
Non-cash charges (credits) to earnings:
 Amortization of property, plant and equipment              4,568     3,529
 Property impairment provisions                               309        13
 Net losses (gains) on sale of investments                     47    (1,785)
 Write-downs of investments to market value                 1,130         -
 Unrealized losses on copper derivatives                    1,324         -
 Other                                                        423       211
----------------------------------------------------------------------------
Total non-cash charges to earnings                          7,801     1,968
Increase in non-cash working capital                      (14,405)  (17,744)
----------------------------------------------------------------------------
Net cash used in operating activities                    $(12,704) $ (7,348)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Cash used in operating activities in the first quarter of 2009 was $12.7
million, compared with cash used in operating activities of $7.3 million in the
first quarter of 2008. The increase in cash used in operating activities in the
first quarter of 2009 relative to the corresponding prior year period was
primarily due to the decrease in gross profit from mining operations partially
offset by a decrease in working capital requirements.


The non-cash working capital requirements of $14.4 million in the first quarter
of 2009 was primarily due to a decrease in accounts payable, an increase in
accounts receivable and an increase in inventories partially offset by an
increase in deferred revenue.


The following table summarizes the Company's investing activities for the
periods indicated:




----------------------------------------------------------------------------
$ thousands                                                    Three Months
                                                         -------------------
Ended March 31,                                              2009      2008
----------------------------------------------------------------------------
Proceeds on sale of portfolio investments                $  2,304  $  2,977
Purchase of short-term investments                         (5,558)        -
Loan advances                                              (3,767)        -
Capital expenditures                                       (8,470)  (19,723)
Other                                                          94         -
----------------------------------------------------------------------------
Net cash used in investing activities                    $(15,397) $(16,746)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Capital expenditures at Chelopech in the first quarter of 2009 of $6.0 million
were 48% lower than the corresponding prior year period due to a reduction in
non-critical expenditures, including those related to the expansion project.
Capital expenditures at Deno Gold in the first quarter of 2009 of $2.5 million
were 56% lower than the corresponding prior year period due to lower level of
exploration activities in the first quarter of 2009 following the suspension of
activities in the fourth quarter of 2008. Expenditures related to the Back River
project incurred in the first quarter of 2009 were expensed as the project was
on care and maintenance.


In the first quarter of 2009, DPM advanced $3.8 million (US$3.0 million) to
Namibian Custom Smelters (Pty) Limited ("NCS"), a subsidiary of Weatherly
International plc, as per the agreement DPM signed with NCS in December 2008 to
advance up to US$7 million of loans to NCS. Loan advances to NCS totalled US$6.0
million as at March 31, 2009.


Financing Activities

The following table summarizes the Company's financing activities for the
periods indicated:




----------------------------------------------------------------------------
$ thousands                                                    Three Months
                                                         -------------------
Ended March 31,                                              2009      2008
----------------------------------------------------------------------------
Redemption of deferred share units                       $      -  $    (58)
Repayment of debt                                            (711)     (563)
Repayment of lease                                           (207)        -
----------------------------------------------------------------------------
Net cash used in financing activities                    $   (918) $   (621)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



AVERAGE METAL PRICES

The following table, summarizing the average metal prices for the London Bullion
Market Association ("LBM") gold, LME copper Grade A, LME special high grade
("SHG") zinc and LBM silver prices, is used to illustrate the Company's average
metal price exposures based on its key reference prices for the periods
indicated.




----------------------------------------------------------------------------
US$ Average                                                    Three Months
                                                         -------------------
Ended March 31,                                              2009      2008
----------------------------------------------------------------------------
London Bullion gold ($/oz)                               $    908  $    927
LME settlement copper ($/lb)                                 1.55      3.54
LME SHG zinc ($/lb)                                          0.53      1.10
LBM spot silver ($/oz)                                   $  12.61  $  17.68
----------------------------------------------------------------------------



NON-GAAP FINANCIAL MEASURES

We have referred to cash cost per tonne of ore processed because we understand
that certain investors use this information to assess the Company's performance
and also determine the Company's ability to generate cash flow for investing
activities. This measurement captures all of the important components of the
Company's production and related costs. In addition, management utilizes this
metric as an important management tool to monitor cost performance of the
Company's operations. This measurement has no standardized meaning under
Canadian GAAP and is therefore unlikely to be comparable to similar measures
presented by other companies. This measurement is intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with Canadian GAAP.


The following table provides, for the periods indicated, a reconciliation
between the Company's cash cost measure and Canadian GAAP cost of sales:




----------------------------------------------------------------------------
$ thousands, unless otherwise indicated
For the quarter ended March 31, 2009          Chelopech   Deno Gold   Total
----------------------------------------------------------------------------
Ore processed (mt)                              243,457         -

Cost of sales (Cdn$)                           $ 19,103  $  4,345  $ 23,448
Cost of sales (US$)                            $ 15,996  $  3,563  $ 19,559
Deduct:
 Amortization                                    (3,092)     (361)
 Reclamation costs and other                       (303)     (128)
 Care and maintenance costs                           -    (3,074)
 Change in concentrate inventory                   (979)        -
----------------------------------------------------------------------------
Total cash cost of production (US$)            $ 11,622  $      -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash cost per tonne of ore processed (US$)     $  47.74  $      -
----------------------------------------------------------------------------

----------------------------------------------------------------------------
$ thousands, unless otherwise indicated
For the quarter ended March 31, 2008          Chelopech   Deno Gold   Total
----------------------------------------------------------------------------
Ore processed (mt)                              219,370    79,779

Cost of sales (Cdn$)                           $ 17,439  $  4,477  $ 21,916
Cost of sales (US$)                            $ 16,750  $  4,301  $ 21,051
Add/(Deduct):
 Amortization and other                          (2,014)     (546)
 Change in concentrate inventory                 (1,711)    4,825
----------------------------------------------------------------------------
Total cash cost of production (US$)            $ 13,025  $  8,580
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash cost per tonne of ore processed (US$)     $  59.38  $ 107.54
----------------------------------------------------------------------------



(1) A reconciliation of the Company's cash cost per tonne ore processed to cost
of sales under Canadian GAAP for the first quarters of 2009 and 2008 is shown in
the table entitled "Non-GAAP Financial Measures".


(2) Refer to the quarterly information section for the average metal prices used
to illustrate the Company's average metal price exposures based on its key
reference prices.


To view the Financial Statements, please click the following link:

http://media3.marketwire.com/docs/dpm0512.pdf

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" that involve a number
of risks and uncertainties. Forward-looking statements include, but are not
limited to, statements with respect to the future price of gold, copper, zinc
and silver, the estimation of mineral reserves and resources, the realization of
mineral estimates, the timing and amount of estimated future production, costs
of production, capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines, currency
fluctuations, requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims, limitations on insurance coverage and timing and
possible outcome of pending litigation. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans", "expects", or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements are based on the opinions and estimates of
management 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
actual results of current exploration activities; actual results of current
reclamation activities; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold, copper, zinc
and silver; possible variations in ore grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of development or
construction activities, fluctuations in metal prices, as well as those risk
factors discussed or referred to in Management's Discussion and Analysis under
the heading "Risks and Uncertainties" and other documents filed from time to
time with the securities regulatory authorities in all provinces and territories
of Canada and available at www.sedar.com.


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 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.


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