Dundee Precious Metals Inc.: Ada Tepe Gold Project Ready To Move Into Feasibility Study-Infill Drilling Program Confirms Upper Zone Grade And Structure And Wall Zone High Grade.

TORONTO -- Dundee Precious Metals Inc. (DPM - TSX) ("Dundee Precious" or "the Company") has finalized its infill drilling program at its Ada Tepe Gold Project in Bulgaria and the results obtained will allow the Company to complete the Feasibility Study and develop a mine plan prior to commencing production.

The following are the key results:

Upper Zone: New resource estimate Indicated 340Koz.Au./Inferred 96Koz.Au. (including Overburden Zone), using a 1g/t Au. Cut off.

- Confirmation of structure and continuity of the mineralization.

- Delineation of 19 separate zones of high grade gold mineralization.

- Enhanced understanding of achievable mining selectivity resulting in increased average grade at a given cut off.

Wall Zone: New resource estimate M&I 417Koz.Au/Inferred 7Koz. Au.

- Confirmation of high grade mineralization (6.4 g/t @ 1g/t cut off)

- Delineation of significant high grade shoot (300 m long x 75 m wide x up to 20m thick)

- Tonnage increased by 12% with extended outer boundary.

"The merit of this program is that it confirms the solid fundamentals of this deposit and provides the platform to continue into the Feasibility Study and mine plan", said Jonathan Goodman, President and CEO of Dundee Precious."Now that we have finalized the drilling program at the Ada Tepe gold deposit our exploration team will be in a position to focus its efforts in our other exploration concessions within the Krumovgrad region where initial exploration work is already underway", he added.

UPDATED RESOURCE ESTIMATE

Based on a multiple indicator kriging estimate (and selective mining unit emulation of 6.25mE by 5mN by 2.5mRL size blocks) for the Upper Zone, and ordinary kriging of the Wall Zone and Overburden Zone in 12.5mN by 5mRL size blocks, RSG Global Pty Ltd has reported the following resources using a 1.0g/tAu lower cut-off grade:

- Measured Resources: 0.92mt at 7.6g/t Au (226koz) and 4g/t Ag (114koz).

- Indicated Resources: 3.48mt at 4.8g/t Au (531koz) and 3g/t Ag (280koz).

- Total M & I4.40mt at 5.4g/t Au (757koz) and 3 g/t Ag (394koz).

- Inferred Resources: 1.15mt at 2.8g/t Au (104koz) and 2 g/t Ag (62koz).

Table 1 summarizes the resource estimate, reported at 0.5g/t Au. 0.7 g/t Au and 1.0g/t Au cut off grades. As a result of the infill drilling program, the resource categorization of the Ada Tepe deposit has been significantly enhanced such that the following percentages represent each NI 43-101 category (based on contained gold):

- Measured Resources: 26%

- Indicated Resources: 62%

- Total M & I:88%

- Inferred Resources: 12%

To view Table 1 please visit CCNMatthews website by clicking on the link below: http://www2.cdn-news.com/database/fax/2000/dpm11014.pdf

LOW GRADE MINERALISATION

Review of Table 1 above indicates that there is a significant tonnage of low grade mineralisation (for example between 0.5 g/t and 1.0g/t) which, when encountered during an open pit mining operation, will be stockpiled for potential processing in the latter stages of the project.

To view Table 2 please visit CCNMatthews website by clicking on the link below: http://www2.cdn-news.com/database/fax/2000/dpm21014.pdf

COMPARATIVE RESOURCE ESTIMATES

In order to check the sensitivity of the resource estimate to the chosen estimation methods, comparative resource estimates were undertaken using inverse distance squared and nearest neighbour grade weighting algorithms. Neither of these non-geostatistical estimation methods can report selective mining unit emulations, so comparison with the geostatistical resource estimate should be made at the whole block (12.5mE by 12.5mN by 5mRL) block size. Table 2 displays the comparison using a 1g/t gold cut off grade. All other parameters in the resource estimation were kept constant (for example, search ranges, minimum and maximum number of composites, upper cuts etc). The nearest neighbour estimate emulates a polygonal approach to grade estimation. With reference to Table 2, it should be noted that the comparative resource estimates have not been classified using the guidelines of National Instrument 43-101 but have merely been reported using the same resource classification block selection as that used for the RSG Global preferred resource estimate.

The sensitivity of the parameters used in the SMU emulation of the MIK estimate has also been assessed.

DRILLING AND SAMPLING STATISTICS

The aim of the 2003-2004 resource delineation program at Ada Tepe included the following:

- Increase the drilling density of the entire deposit to a notional 25m by 25m or better.

- Infill drilling of selected areas to 12.5m by 12.5m to investigate short scale variability in both the Upper Zone and the Wall Zone.

- All drill holes were targeted to intercept both the Upper Zone mineralisation and the Wall Zone.

- Channel sample all new in situ surface exposures (created during the development of drill pads and access roads).

During the 2003-2004 infill drilling program some 470 drill holes for 38,771 metres and 162 surface channel trenches for 8,082 metres were completed. An additional 44,424 samples were thus collected and assayed during this period. (Refer to Figure "A").

The total data set used to generate the updated Ada Tepe resource estimate comprises the following information:

- Trenches: 425 channels for 18,300 metres and 13,584 samples.

- Reverse circulation drilling: 387 holes for 31,847 metres and 31,847 samples.

- Diamond drill holes: 185 holes for 17,461 metres and 16,780 samples.

- Diamond tails on RC holes: 35 tails for 1,127 metres and 1,082 samples.

- Metallurgical drill holes: 8 holes for 776 metres and 401 samples.

The complete data set comprises 69,511 metres for 63,784 primary samples. In addition, some 5,764 bulk density samples have been collected and have been measured at an ISO9002 rated laboratory in Sofia, Bulgaria.

All samples in the 2003-2004 exploration program were prepared at a custom sample preparation laboratory, set up and independently managed by SGS Laboratories, an internationally accredited analytical company. The pulp samples have been despatched to either the SGS laboratory at Rosia Montana, Romania or to the SGS laboratory in Perth, Western Australia.

EXPLORATION DRILLING ASSAY VISUALISATION

Figure "A" attached displays gram-metre contours for the Wall Zone and Upper Zone, based on the exploration drilling assay data. The high grade and structure of both zones at Ada Tepe is clearly evident. (Refer to Figure "B").

GEOLOGICAL MODEL DEVELOPMENT

All diamond drill core has been routinely oriented during drilling and structural data has been derived for vein orientations for use in geological modelling. In addition, detailed surface geological and structural mapping has been carried out over the entire deposit.

A revised and detailed topographic model has also been updated for use in the resource estimate.

The weathering and oxidation profile of the deposit has been significantly enhanced and has been modelled in three dimensions.

The Upper Zone and Wall Zone have been thoroughly re-interpreted and have been subdivided as follows:

- Wall Zone: 1 domain.

- Upper Zone: 5 domain groups.

- Overburden Zone (an area of mineralised material which has been previously worked over): 1 domain.

- In addition, within the Upper Zone domain groups, 19 separate zones of high grade gold mineralization have been modelled in three dimensions and used to constrain resource estimation separately from the surrounding less continuous mineralization.

- In total some 26 domains have been used to control resource estimation.

BLOCK MODEL DEVELOPMENT

A block model has been created using the Vulcan modelling package. A 'parent' block size of 12.5mE by 12.5mN and 5mRL has been used with sub-blocking to minimum 2.5m cubic dimensions used to define the modelled domains and the weathering zones. The selective mining unit estimate for the Upper Zone has emulated 6.25mE by 5mN by 2.5mRL cell dimensions.

ESTIMATION METHODS

The Upper Zone has been estimated using the following methods:

- Gold: Multiple Indicator Kriging (MIK), including development of selective mining unit (SMU) emulations allowing for likely ore loss and dilution during mining.

- Silver: Linear regression from the whole block and SMU of the gold estimates (due to the establishment of strong correlation coefficients between gold and silver).

The Wall zone has been estimated as follows:

- Gold: Ordinary Kriging (OK).

- Silver:Linear regression from the OK gold estimate.

The Overburden Zone has been estimated as follows:

- Gold:Ordinary Kriging.

- Silver:Linear regression from the OK gold estimate.

Detailed statistical analysis has been carried out on the gold and silver assay data for each defined domain and/or domain group. Outlier analysis has also been completed in order to determine appropriate upper cuts to be used in the resource estimation.

Indicator and grade variography has been undertaken on a domain group basis and estimation parameters developed for each of the defined domain groups in the Upper Zone. Grade variography was completed for the Wall zone. Regression equations were produced for the silver data, for each domain.

RESOURCE CATEGORISATION

The resource estimate has been categorised using the guidelines of the National Instrument 43-101.

Classification of the 2004 resource estimate for the Ada Tepe Prospect has been undertaken separately for each of the major mineralized regions (Wall Zone, Upper Zone and Overburden), with the classification for the Upper Zone also subdivided by each of the five estimation domain groups, and the region lying inside versus outside the modeled high grade mineralized zones within each group.

RSG Global considers the overall quality of the exploration data used for resource estimation to be high and hence, the primary parameters used to classify the resources within each of the estimation domains are based on:-

- Confidence in the geological interpretation.

- Data density (drill hole spacing).

- Statistical characteristics of the gold grade data (variability of the gold grades).

- Continuity of gold grades as determined from variography.

- Visual and statistical validation of the whole block and selective mining unit gold grade estimates.

The various domains in the Ada Tepe resource model have been categorized as follows:

- Wall Zone: Measured, Indicated and Inferred Resources.

- Upper Zone: Indicated and Inferred Resources.

- Overburden Zone: Inferred Resources.

QUALITY ASSURANCE

A full program of quality assurance has been maintained at all times during the exploration program, and has included the following:

- Collection of field duplicate sample (5% of all drilling and sampling).

- Submission of internationally accredited assay standards prepared by Rocklabs of New Zealand with every batch of samples for analysis.

- Routine submission of accredited blank samples.

- Full review of the internal laboratory QAQC information.

- Routine submission of samples for 'round robin' assay analysis at Chemex in Canada and Genalysis Laboratories in Perth.

- Weighing of every RC sample for recovery determination.

- Routine recording of diamond drill core recovery.

- Down hole surveying of drill holes.

- Surveys of all drill collars and trench locations by an independent licensed Bulgarian surveyor.

-Some 28 sets of twin drill holes for 2,407 metres have been completed.

EXPLORATION STATUS

The infill drilling program represents effective completion of drill based exploration at Ada Tepe. However, some minor additional drilling will be carried out as a matter of priority to ensure that any Inferred Resources in the Upper Zone at Ada Tepe, occurring within the likely open pit outline, are upgraded to the Indicated Resources category.

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 "Risks 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.

Dundee Precious Metals Inc. is an operating mining company engaged in the acquisition, exploration, development and mining of precious metals. It currently owns the Chelopech Mine, a producing gold/copper mine, and Ada Tepe, a gold exploration property, both located in Bulgaria. The Company is engaging in mineral exploration activities in the region and holds a significant portfolio of investments in the precious metals and mineral related sector.

A full set of Tables and Figures that complement this release is posted on the Company's website at www.dundeeprecious.com.

Dundee Precious Metals Inc. (TSX:DPM)