DPM Dundee Precious Metals Inc

Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) ("DPM" or "the
Company") is pleased to announce it has entered into a letter of intent with PJV
Resources Inc. ("PJV"), a private company, and Rodeo Capital Corp. ("Rodeo"), a
capital pool corporation listed on the TSX Venture Exchange ("TSXV"), for the
sale of its Timok gold project located in Serbia through the sale of DPM's
Serbian subsidiary, Dundee Plemeniti Metali d.o.o. ("Metali"). Prior to the
closing of the Transaction (as defined below), DPM will cause, subject to
government approvals, a reorganization (the "Reorganization") of its Serbian
subsidiaries, as a result of which certain assets and liabilities not forming
part of the Timok project, will be transferred by Metali to another Serbian
subsidiary of DPM.


As consideration for the sale, DPM shall receive approximately US$1.4 million in
the return of cash held to secure certain concession obligations, a number of
units ("Vendor Units") in the capital of PJV, such that, upon the completion of
the Business Combination (as defined below) component of the Transaction, DPM
will hold 60% of the issued and outstanding capital of the issuer resulting from
the Business Combination (the "Resulting Issuer"), on a non-diluted basis, with
the remaining 40% representing holdings of shares outstanding as of the closing
of the Transaction, including the shares that will be sold as part of an initial
financing of PJV. The initial financing of PJV will generate gross proceeds of a
minimum of $25,000,000 (the "Minimum Financing") with respect to which PJV has
entered into an engagement letter with Dundee Securities Corporation. Each
Vendor Unit will be comprised of one PJV common share and one half of a warrant.
Each whole warrant will be exercisable for one common share for a period of not
less than two years and at an exercise price not greater than $0.40 per warrant.
In addition, upon completion of a feasibility study (as defined in NI 43-101) on
all or part of the Timok Project, DPM shall be issued 25,000,000 common shares
in the capital of the Resulting Issuer, and an additional 25,000,000 common
shares of the Resulting Issuer upon a positive decision being made by the
Resulting Issuer to bring all or any part of the Timok project into production
(a total of 50,000,000 common shares if the Resulting Issuer proceeds directly
to a mining decision without a feasibility study).


"We view this transaction as a very positive step forward in the continued
development of the Timok prospect", said Jonathan Goodman, President and CEO of
DPM. "It is a step that facilitates DPM's continued participation in Serbia
while it pursues its mine/mill expansion and new mine development opportunities
in Bulgaria."


The PJV acquisition of Metali will be a component of a wider transaction (the
"Transaction") whereby, as a subsequent step to the acquisition, a
three-cornered amalgamation ("Business Combination") will be effected pursuant
to which PJV (as financing and acquisition corporation) will amalgamate with a
wholly-owned subsidiary of Rodeo, and all of the securities of PJV (including
those issued to DPM as part of the sale of its Timok project), will be exchanged
for securities of Rodeo. The Transaction shall constitute a Qualifying
Transaction (as defined in the policies of the TSXV) for Rodeo.


The Transaction is subject to various conditions, including among other things,
approval of the Reorganization and the Transaction by the Serbian government,
completion of satisfactory due diligence, entering into definitive agreements,
all applicable regulatory approvals and completion of the Minimum Financing. The
letter of intents will terminate at the earliest of (i) January 30, 2010 if
either DPM or PJV has not completed satisfactory due diligence in respect of
Rodeo, (ii) on April 30, 2010 or (iii) the date of execution of a definitive
agreement in respect of the Transaction.


Dundee Precious Metals Inc. is a Canadian based, international mining company
engaged in the acquisition, exploration, development and mining 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. In addition, it is
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.

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