Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT.A) ("DPM" or "the Company")
announces a positive development in the Krumovgrad gold project (the "Project")
permitting process and provides an update on mine and smelter production. 


Krumovgrad Gold Project

On July 7, 2014, the Krumovgrad Municipal Council ("Council") approved the terms
of reference ("TOR") submitted by the Company for preparation of a detailed
development plan ("DDP") for the land the Project is sited on and voted to allow
DPM to proceed with preparation of the DDP. This is a critical step in the local
land use, land acquisition and construction permitting process and is a
prerequisite to allowing construction of the Project to proceed. The TOR
approval process had been the subject of delays and Administrative Court
deliberations and this decision is the result of intensive discussion between
the Company and the Council. Community leaders are now indicating that the
Company has addressed the concerns of the community and that the Project should
proceed with appropriate monitoring of compliance with community requirements.
It is anticipated that the Company will be in a position to commence
construction within six to twelve months. 


"This is an encouraging development for the advancement of our Krumovgrad
Project in Bulgaria," stated Rick Howes, DPM's President and CEO. "We believe
this decision by the Krumovgrad Municipal Council represents a significant shift
in the views of the local community towards this project and a strong
recognition of the benefits it can bring to the region."


Q2 Production Update

Preliminary mine and metals production for the Chelopech and Kapan mines and the
Tsumeb smelter for the quarter ending June 30, 2014 is provided below. 




----------------------------------------------------------------------------
Preliminary Q2 2014 Production                                              
----------------------------------------------------------------------------
                                             Chelopech      Kapan     Tsumeb
----------------------------------------------------------------------------
Ore milled (tonnes)                            549,299     92,916          -
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Metals contained in concentrate produced                                    
----------------------------------------------------------------------------
  Gold (ounces)                                 34,080      4,755          -
----------------------------------------------------------------------------
  Copper (million pounds)                         11.1        0.5          -
----------------------------------------------------------------------------
  Zinc (million pounds)                              -        3.0          -
----------------------------------------------------------------------------
  Silver (ounces)                               57,855    110,757          -
----------------------------------------------------------------------------
Concentrate smelted (tonnes)                         -          -     60,322
----------------------------------------------------------------------------



The Chelopech mine performed well, with second quarter metals production well
above first quarter levels. However, gold recoveries in the copper concentrate
have not yet reached the levels expected from the new flotation circuits.
Further optimization of the new circuits is ongoing and will likely continue
over the balance of the year. As a result, Chelopech gold production is expected
to be below the middle of the range of 2014 guidance. In the interim, additional
gold is reporting to the pyrite concentrate, which partially offsets this
impact. 


At the Kapan mine, on May 27, 2014, an underground driller was struck by falling
rock and died as a result of the injuries sustained. Operations were immediately
suspended and, over the course of a three week period, an investigation was
initiated, involving company officials, government representatives and outside
experts, to ensure there was a comprehensive understanding of the incident, and
any recommended changes to the mine's work and safety procedures were
implemented prior to resuming operations. As a result, second quarter production
is below expectation. The Company is evaluating the impact, if any, on mine
production for the balance of 2014 and expects any revisions to the 2014
guidance released in May to be issued with the Company's second quarter
financial results on July 30, 2014. 


The Company's Tsumeb smelter has been operating at a rate of approximately
220,000 tonnes per year during the second quarter, in line with expectations,
and remains on track to achieve its 2014 guidance. The annual maintenance
shutdown commenced on July 7 and operations are expected to return to full
capacity in early August 2014.


About Dundee Precious Metals

Dundee Precious Metals Inc. is a Canadian based, international gold mining
company engaged in the acquisition, exploration, development, mining and
processing of precious metals. The Company's principal operating assets include
the Chelopech operation, which produces a copper concentrate containing gold and
silver, located east of Sofia, Bulgaria; the Kapan operation, which produces a
copper concentrate and a zinc concentrate, both containing gold and silver,
located in southern Armenia; and the Tsumeb smelter, a concentrate processing
facility located in Namibia. DPM also holds interests in a number of developing
gold properties located in Bulgaria, Serbia, and northern Canada, including
interests held through its 53.1% owned subsidiary, Avala Resources Ltd., its
45.5% interest in Dunav Resources Ltd. and its 12.1% interest in Sabina Gold &
Silver Corp.


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
such mineral estimates, the timing and amount of estimated future production and
output, 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, reclamation expenses, the
potential or anticipated outcome of title disputes or claims 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 that 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,
uncertainties inherent with conducting business in foreign jurisdictions where
corruption, civil unrest, political instability and uncertainties with the rule
of law may impact the Company's activities; fluctuations in metal prices;
unanticipated title disputes; claims or litigation; limitation on insurance
coverage; as well as those risk factors discussed or referred to in the
Company's MD&A under the heading "Risks and Uncertainties" and under the heading
"Cautionary Note Regarding Forward Looking Statements" which include further
details on material assumptions used to develop such forward looking statements
and material risk factors that could cause actual results to differ materially
from forward looking statements, and other documents (including without
limitation the Company's 2013 AIF) filed from time to time with the securities
regulatory authorities in all provinces and territories of Canada and available
on SEDAR at www.sedar.com. 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. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Dundee Precious Metals Inc.
Rick Howes
President and Chief Executive Officer
(416) 365-2836
rhowes@dundeeprecious.com


Dundee Precious Metals Inc.
Lori Beak, Senior Vice President,
Investor & Regulatory Affairs and Corporate Secretary
(416) 365-5165
lbeak@dundeeprecious.com
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