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 an option agreement with
Queensland Minerals Ltd. ("QML"), an exploration company listed on the TSX
Venture Exchange ("TSXV"), in respect of DPM's Serbian properties, namely its
Surdulica molybdenum, Tulare copper/gold and the Karmanica gold projects
directly held by its Serbian subsidiary, Dundee Moly Company d.o.o. ("Molyco"),
(the "Agreement"). Pursuant to the Agreement, QML is entitled, subject to the
terms and conditions of the Agreement, to exercise its option to acquire 100% of
DPM's interest in all of the issued and outstanding shares of Molyco upon: (i)
QML having raised in one or more financings aggregate gross proceeds of $10
million ("Combined Financings"); (ii) QML having expended aggregate exploration
expenditures of $3 million on the Serbian properties; and (iii) QML obtaining
all requisite regulatory, shareholder, stock exchange or governmental
authorizations and consents. The option is valid for one year from the date of
the Agreement, October 4, 2010.


"This arrangement allows for the steady advancement of these exciting
exploration properties by Queensland's experienced team while giving DPM and its
shareholders the opportunity to continue to participate in their future
success," said Jonathan Goodman, President and CEO of DPM.


Upon exercise of the option under the Agreement, DPM will receive a number of
units ("Vendor Units") in the capital of QML, such that, upon completion, DPM
will hold 47.5% of the issued and outstanding capital of QML, post-closing on a
non-diluted basis (subject to adjustments under certain circumstances). Each
Vendor Unit will be comprised of one QML common share and that number of
warrants (but not less than half a warrant per Vendor Unit) as is equal to the
number of warrants forming part of units sold in various tranches of the
Combined Financings on a pro rata basis of each of the tranches of the Combined
Financings. Each whole warrant will be exercisable for one common share of QML
for a period of not less than two years and at an exercise price not greater
than $0.42 per warrant.


For further information, please refer to the news release issued by QML on
October 12, 2010.


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 95% interest in Vatrin Investment
Limited ("Vatrin"), a private entity which holds 100% of Deno Gold Mining
Company CJSC, its principal asset being the Kapan mine, a gold, copper, zinc,
silver concentrates producer located 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, through its wholly-owned subsidiary, Balkan Mineral
and Mining EAD, 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.

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