Mr. Rick Howes reports

DUNDEE PRECIOUS METALS ANNOUNCES POWER BLACKOUT IN NAMIBIA RESULTS IN FURNACE OUTAGE

A regional power outage has resulted in damage to the refractory lining of Dundee Precious Metals Inc.'s Ausmelt furnace, the repair of which is expected to take approximately three weeks.

Subsequent to a power blackout in Namibia at 9:20 p.m. (West Africa time) on Friday, July 22, 2016, cooling water entered the Ausmelt furnace as a result of the backup systems for power and cooling water not operating as expected, which compromised the integrity of the refractory lining. As a consequence, and following initial inspections completed on Sunday, July 24, 2016, management believes that the refractory lining will need to be fully replaced.

This outage is expected to reduce 2016 concentrate throughput by approximately 20,000 tonnes. The vast majority of the costs associated with repairing the physical damage are expected to be covered through the company's insurance program. The response taken by operations management during this event ensured that no one was placed at risk during the outage. A full investigation is currently being led by Tsumeb's management. Additional information concerning this matter will be provided with the company's second quarter results to be released after market on Thursday, July 28, 2016.

We seek Safe Harbor.